So the book is out now to talk to individuals about how fragile things are
in the market and how not to be swayed necessarily by the things you hear
on media so much major media, large media. There's everybody out there in
the mutual fund world, the stock and bond world, the ETF world,
wants to sell you their idea. And I think when you listen to all
that stuff, you can be let into the wrong path of how to invest
more purpose and retirement. You are listening to Carrie Let's's Financial Survival Network,
where you get valuable information you just can't find anywhere else to thrive in today's
trying times. You need the Financial Survival Network now more than ever. Go
to Financial Survivalnetwork dot com and get your free newsletter and gift. Financial Survival
Network now more than ever. Ed Welcome you are listening to and watching the
Financial Survival Network. I'm your host, Carrie Lutz. Hey, we're in
twelve, thirteen, twenty three. The year is going to be over before
you know it. New book is out. We've talked about it before,
but you really got to check it out. It is called Bonfire of the
sanitays reset your retirement portfolio for today's financial lunacy and if anything describes what's happening
in the world the economy, it's financial lunacy. It's written by David Wright,
you know him well and financial expert author. David. It's great to
have you back on the show. How are you here? I am doing
well? Or a Wednesday the home day? Here, get over the home
day? Yeah? Yeah, you and me? Both, you and me
both? So hey your book, yes, sir, tell us why you
wrote it? Well? Originally I started writing it three years ago to talk
to perspective send just interested parties about why it's important to know what your money
is for purpose over performance. If you're later in life, probably the money
you built over your four oh one K and your work career is probably more
for supporting your social Security or pension checks and understanding that there might be a
slightly different discipline of how you invest for that situation. But you know,
Carrie, the only constant in our world has changed, and with the COVID
crisis in twenty twenty, the book took on a whole new meeting the financial
lunacy that occurred after COVID, with the economy shutting down and the black swan
event of an economy shutting down, and then you know trillion, almost two
trillion printed cash back into the economy to provide businesses and individuals with you know,
their their their little ouse of gold. Has set the whole planet a
fire here with what the Feds are doing. The FEDS reacted, as I'm
sure you're aware and talk about all the time, very slowly to all of
the twenty twenty one revelry, with the recovery in the market, with all
this respending money and a lot of free time on people's hands. People were
out taking trips, traveling. The Feds kind of stand on their hands for
much of twenty twenty one and didn't raise rates. So now we're in a
situation where Feds have raised rates by five hundred and fifty basis points on the
short fixed interest rate, and now we're in an inflation world that took old
in twenty twenty two. So the book is out now to talk to individuals
about how fragile things are in the market and how not to be swayed necessarily
by the things you hear on meat so much. You know, major media,
large media, there's everybody out there in the mutual fund world, the
stock and bond world, the ETF world wants to sell you their idea.
And I think when you listen to all that stuff, you can be let
into the wrong path of how to invest more purpose and retirement, because this
market can turn on a dime. We've seen it happen. We're waiting for
fed's Chairman Powell to make a decision today on which direction interest rates are going
to go. We think they're going to hold I'm pretty sure that. I
think the whole world isn't sure. Is pretty sure of that. But the
big million dollar question is what will happen next year? Will the Feds start
to pivot? And I definitely don't believe they will soon. I think they're
going to hold rates higher for longer. And this book addresses that real situation
next year, that if the old rates higher for longer, how that's going
to impact the markets, and how that could impact your retirement, and how
you only get one shot at this. So it's important to get a copy
of this book. On Fire The Sanities follow us step by step process of
the reasons why it's important to invest your purpose and take you through a client
examples of what happened in two thousand and eight, and why it's important to
not make the same mistakes that folks made back in two thousand and eight.
All right, so you know what they say, David, A smart person
learns from their own mistakes, but a truly wise person learns from the mistakes
of others. You know, how do we learn from others' mistakes here,
so we aren't condemned to repeating them? Well by buying this book, not
to put to fight a point on it. It's important to open your eyes
up to professionals, individuals who've been doing financial advising for many, multiple decades.
This is my going on in my fourth decade, and when you look
at mistakes that are made by other folks five ten to fifteen years back who
believe that they could grow their way through retirement in the midst of what happened
in the banking crisis of two thousand and eight. We're trying to help our
readers avoid making the mistakes of investing all for growth, not being strategic with
dividends and interest, understanding that you need to work with an income advisor or
at least have some sort of relationship with someone that understands how to produce income
in a reliable manner that would will allow you to never have to jeopardize your
principle. You know, one of the things that we saw in two thousand
and eight, I would meet a lot of spouses in workshops and webinars and
just meetings that I would hold here at the office, a lot of surviving
spouses, a lot of femails. Those skies tend to kick the bucket first,
But a lot of the gals that would come in here who now have
been handed this task of managing the pot of money that their husbands had managed
prior to two thousand and eight. The ride back from two thousand and three
to two thousand and seven and eight was pretty nice. After the World Trade
Center collapsed in two thousand and one, markets finally leveled off in two thousand
and three had started to climb back up well. A lot of the spouses
that invested in that client from two thousand and three to two thousand and eight
invested pretty much all in in growth things growth. The mutual funds, aggressive
stocks, and their advisors were pretty much drinking that ool aid as well.
But what a lot of surviving spouse is found out after the fact when the
market started declining in two thousand and eight and nine and the banking issues,
we started seeing a lot of portfolios that had been drawn on. People pulling
out their rm ds the required minimum distributions or just drawing income out of a
portfolio that's actually shrinking by almost fifty to sixty percent is a suicide strategy because
basically what you're doing is liquidating principle, you're selling shares when they're worthless.
Therefore, you can never humanly recover from that unless you make a pack that
once it's hit the bottom, you just stop using the money and let it
recover, which can take me be five to ten years to recover from that.
So this book is to talk about the experiences that I've had in the
ways that we go about understanding how you should invest. Everybody's situation is different,
so I think you can learn a lot by the thirty five years plus
that I've done this. All right, So hey, talking about lessons learned.
What do you think is the most important lesson of this book? I
think that the most important lesson of the book is first team from an income
advisor, the experience and knowledge that to invest for income dividends and interest is
to know how of what individual securities that need to be tapped to produce the
income. Broadly speaking, individual securities, individual preferreds, corporate bonds, and
all of those types of things. People don't know how to stick those things.
Most advisors don't want to work with clients on those things because either they
don't know enough about them, don't know how to buy them, don't know
how to manage them, or have the back office support to continue to monitor
monitor them. So the biggest aha from this book is make sure that whatever
you take it from your pot of money in retirement is the dividend and interest
of the share you own, not the share it self, especially with what's
going to happen probably in twenty twenty four and beyond, because it isn't going
to take very long for you to shrink a portfolio once you start needing to
draw from it. And most people don't understand that there's two phases, the
accumulation phase when you're building the pot, and the distribution phase when you're dis
distributing the pot. Both of those phases need to be followed. And if
you're in the distribution phase, your sixties and seventies and you're still invested,
like you're in the accumulation phase, you're going to be in a position where
you're going to be probably withdrawing shares or principle, When I see a lot
carry our individuals taking FAU income, we call it FAU income because their advisor
basically just set them up on a withdrawal plan to withdraw a certain amount of
shares of their portfolio, hoping that the shares they don't withdraw or income grow
in value during the period of time that they're taking money out. Well,
I have a better way. The better way is to actually not liquid eight
shares at all. Just understand that whatever you've built at this point in your
life should be the pot that you're trying to sustain for the rest of your
life. And if you can live off of that pot of money, getting
five to six percent liable income from it and never deviating from that. Changes
obviously need to be made. From a geopolitical standpoint, we don't know what's
happening with electric vehicles, those sorts of things. Changes need to be made
to the investments inside the pot. That's why you should probably work with an
income advisor to make sure that you're making the corrections and the changes that need
to be made, but understanding, don't sell shares, live off the income.
I like that and it sounds like sound advice. David, How do
we get the book? How do we connect with you on the web?
Well, you can connect with me on the web, first of all,
with Rightfinancialgroup dot com. Wrighd is the spelling. Bonfire ofthsanities dot com is
how you can get this book into your hands. It's a pretty easy read,
about one hundred and seventy seven pages, flows pretty quickly, and you
can get again the book at a bonfire ofthsanities dot com or wherever books are
sold Amazon, Barnes and Noble, or Books an Alien wherever fine books used
to be sold, right exactly. All right, Hey, we appreciate you
coming on again, David talking about the book. They've got a question for
David or myself, shoot me an email kl Atcarrieluts dot com. And there's
a link to davidsite in the show notes to this interview on Financial Survival Network
dot com. Just click it and it'll take you right to David's site.
And while you're on our site, please sign up for a free newsletter.
I think you'll find it very useful, David, always a pleasure. Thanks
so much for coming by, Harry, thanks for letting me be on.
Thanks for listening to Carrie Letz's Financial Survival Network, your solution to today's trying
times. For the latest, go to Financial Survivalnetwork dot com. Financial Survival
Network now more than ever,