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Podcast Episode #515
The Real Wealth Show

Stocks, Bonds & Mutual Funds vs. Income-Generating Assets

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Learn > Investor Tips > Stocks, Bonds & Mutual Funds vs Income-Generating Assets

Published: October 5th, 2016

Podcast Description

In these turbulent financial times, what percentage of our assets should be in stocks or mutual funds vs. income-generating alternatives?

Our guest today is David Scranton, CEO and Founder of Sound Income Strategies. He’s one of the nation’s most successful and respected independent financial advisors, specializing in income-generating savings and investment strategies for the past 15 years. Prior to that, he followed a typical business model based heavily on stock market-based investment strategies. But in late 1999, Scranton’s knowledge of stock market history enabled him to foresee the coming 2000 stock market collapse and the onset of a new 20-plus year secular bear market cycle. Since changing his business model, Scranton has built a thriving personal practice based on “defensive” income-based financial strategies designed to help protect clients from the dramatic stock market fluctuations and economic uncertainties of the past 15 years.

David is a frequent guest expert on CNBC, Bloomberg, and Fox Business and the author of a new book:
Return on Principle: 7 Core Values to Help Protect Your Money in Good Times and Bad.

Questions:

  • For a client at my stage in life, what percentage of my assets should be in stocks or mutual funds vs. income-generating alternatives?
  • How will you generate enough interest or dividends from the portfolio to satisfy my income needs?
  • During each of the two market drops since 2000, how did you respond to clients who called in a panic?
  • What major changes did you make to your client allocation model after 2003 and again after 2009?
  • How much financial research do you do personally and how much research is supplied to your by your firm?
  • If I heard about a great stock opportunity and I wanted you to put me in it right away, how would you respond?
  • What to ask your advisor?
  • Have you ever lost a large percentage of value in an investment because you were waiting for it to come back up in price to what you paid?
  • In 2008 or 2009, did you ever vow to yourself that if the market came back and your investments were covered you would get out? Did you get out?

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Stocks, Bonds & Mutual Funds versus Income-Generating Assets

Author

Kathy Fettke

Kathy Fettke

Kathy Fettke is the Co-Founder and Co-CEO of Real Wealth Network. She is passionate about researching and then sharing the most important information about real estate, market cycles and the economy. Author of the #1 best-seller, Retire Rich with Rentals, Kathy is a frequent guest expert on such media as CNN, CNBC, Fox News, NPR and CBS MarketWatch.

Full Bio