Retirement Ready Income Programs

The Brainwashing of the American Investor - More Book Reviews Volume 1

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“The Best Investment Book I’ve Ever Read!”

Jim Dexter, Host, "The Jim Dexter Show" (09/15/03)

Dynamite book! It's about time someone told the truth about the Wall Street casinos!

The Most Recent Reviews

Investors Review Their Best Investment Book - January, 2009

I knew as soon as I read your note, ”A profit is a terrible thing to waste,” that I was going to like what you have to say... your book has given me new market insight. [It] brought it all together in a way that really makes sense from a risk point of view. I have slowly started to add stocks based on your philosophy. (John B, Florida, 06/03/06)

"No other book has done a better job at putting investors on notice that there are blood-thirsty sharks on Wall Street. Featuring one of those sharks dressed up in business attire, the cover picture alone is worth the money, not to mention all the practical techniques discussed within.

We are already incorporating some of Steven's methods into our Graham-Buffett Value Investing Workshops."
- (Brian Zen, CFA, PhD, Chief Investment Counsel, Research, 08/10/05)

I have read your web site and recently read your book. I enjoyed your perspectives and found it especially useful in navigating the financial advice industry. (J F, Michigan) 10/05)

I bought your e-book and I it's one of the best, most informative books on stock trading I've read. The rules you give are SO contradictory... a huge help. As I started reading I thought "this would only work in a bull market" until I realized you wrote it in the middle of the last bear market! Thanks for writing such a fine book. I certainly intend to profit from it. (G M, Melbourne, Australia, 10/05)

I currently do fee only investment management. The working capital model looks to be my answer. Looking forward to great gains. (J B, CFP, 03/06)

I've been reading your book and have gone though it twice now. The part that hit me the most was the idea of buying stocks as products and putting them on the shelves to resell later at a higher price. I've always been good at getting a bargain except in stocks. That one idea is going to help me greatly. (Gary M, 03/06)

I have read your book several times and find something new each time I read it. (Terry M, 03/06)

I really enjoyed the book and now listen to every financial seminar and financial talk radio show with a better trained ear. I have also dumped some junk from my portfolio...(L R, Portland, OR, 08/28/05)

"I have finished reading the book and have started reading it over again. I am filled with a sense of astonishment at the simplicity of the program. I had no problems following the equity side of the equation. I have read your fixed income stuff on your website and I am feeling better about it... just reading the book gives me a sense of peace. Once again, Steve, I thank you very much for your book." (Eric T, NM 08/23/05)

... BTW, I find CNBC and the financial pages on the Internet pretty much of a waste of time now, having read your book and chat board ... I used to spend hours and hours on that stuff ... now I see how worthless it is (actually it's kind of funny to listen to them now) ... thanks for enlightening me ... (D F, IL, 08/09/05)

Thank you for your book. I'm one of the investment people you refer to (insurance and mutual funds only) and for the most part we're in agreement. I'm looking to you for insight into a side of Wall Street I know little about and you haven't let me down. Your comments on variable annuities are accurate...I stopped selling them years ago. It's all smoke and mirrors. You mention Money in Motion, quality-diversification-income. Boy are you right on target! (J B, NH, 03/05)

As I said when I called, I have have enjoyed several profitable trades using your system in a very short time. The [radio show] host's attribution of "somewhat satisfied" to me was entirely incorrect. I am in fact extremely satisfied with your approach. It seems to me to be the clearest way to make money in the market and keep it. Your methods present a sane, lifetime approach to trading that I only wish I had found 20 years ago. (M L, MA, 11/28/04)

I'm enjoying your book immensely, it will become my bible, I'm sure. Thanks. (George, MA, 08/23/04)

I read your book "The Brainwashing of the American Investor" and found your insight, candor, and detailed investment strategies incredibly engaging. Coming from a marketing division of one of the biggest mutual fund companies in the country, I can relate first-hand to many of the issues you raise. Thanks for your insight! (M R, 06/23/04)

Thank you, thank you, for taking the time to share your wisdom and experience with us (the lay investors). I have signed up for Merritt Information Strategies stock selection spreadsheet... (C N, Nipomo, CA, 08/04)

Click for Details --> Book Reviews - Volume 2 <--

Retirement Ready Income Programs
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Johns Island, SC 29455
Phone (800) 245-0494 • Fax (843) 243-8509
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Please read this disclaimer:
Steve Selengut is registered as an investment adviser representative. His assessments and opinions are purely his own. None of the information presented here should be construed as an endorsement of any business entity; the information is only intended to be educational and thought provoking.

Please join the private article mailing list or Call 800-245-0494 for additional information

Risk Management: Income, 401k, and IRA Programs

Take a tour of a professional investment managers' private SEP IRA program during ten years surrounding the financial crisis:


In developing the investment plan, personal financial goals, objectives, time frames, and future income requirements should all be considered. A first step would be to assure that small portfolios (under $50,000) are at least 50% income focused.

At the $100,000 level, between 30% and 40% income focused is fine, but above age 50, the income focus allocation needs to be no less than 40%... and it could increase in 10% increments every five years.

The "Income Bucket" of the Asset Allocation is itself a portfolio risk minimization tool, and when combined with an "Equity Bucket" that includes only Investment Grade Value Stocks, it becomes a very powerful risk regulator over the life of the portfolio.

Other Risk Minimizers include: "Working Capital Model" based Asset Allocation, fundamental quality based selection criteria, diversification and income production rules, and profit taking guidelines for all securities,

Dealing with changes in the Investment Environment productively involves a market/interest rate/economic cycle appreciation, as has evolved in the Market Cycle Investment Management (MCIM) methodology. Investors must formulate realistic expectations about investment securities--- by class and by type. This will help them deal more effectively with short term events, disruptions and dislocations.

Over the past twenty years, the market has transitioned into a "passive", more products than ever before, environment on the equity side...  while income purpose investing has actually become much easier in the right vehicles. MCIM relies on income closed end funds to power our programs.

To illustrate just how powerful the combination of highest quality equities plus long term closed end funds has been during this time... we have provided an audio PowerPoint that illustrates the development of a Self Directed IRA portfolio from 2004 through 2014.

Throughout the years surrounding the "Financial Crisis", Annual income nearly tripled from $8,400 to $23,400 and Working Capital grew 80% $198,000 to $356,000.

Total income is 6.5% of capital and more than covers the RMD.

Managing income purpose securities requires price volatility understanding and disciplined income reinvestment protocals. "Total realized return" (emphasis on the realized) and compound earnings growth are the key elements. All forms of income secuities are liquid when dealt with in Closed End Funds. 

Associated Content:
Risk Management: Income, 401k, and IRA Programs - Sooner or later, every investment program (particularly your IRA and 401k) becomes a Retirement Inco...
Asset Allocation Based Performance Analysis - One - It matters not what lines, numbers, indices, or gurus you worship, you just can't know where the sto...
A Must Read For Experienced And Novice Investors: 29 5-Star Reviews - A must read because you're in it! The book goes into depth on how to choose a diverse group of quali...
What Investors Want & How To Get It: - What Investors Want and How To Get It... the between the lines content of The Brainwashing of the Am...
The Greatest Investment Story Never Told - An excellent strategy even in today's investing environment. The current buzz on the street is that ...
Stock Market Correction: Month Nine And Counting - Repetition is good for the brain's CPU, so forgive me for reinforcing what I've said in the face of ...
More Brainwashing Book Reviews - My partner and I love this book. We are enrolled agents, do around 800 business, personal, and trust...
What's Inside the Brainwashing Book - The Brainwashing of the American Investor is direct, hard-hitting and brutally honest...The title im...
Stock Selection: Tools, Rules & Objectives - The objective of the exercise is to have cash available for buying during every downturn --- can't h...
Value Stock Buy List Program - What's all the Excitement About? - Investor's are discovering an Investment Grade Value Stock Selection and Trading Strategy that make...

Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.