Retirement Ready Income Programs

Financial Website Warning Label

Submitted by Steve Selengut | RSS Feed | Add Comment | Bookmark Me!

Please read this message carefully before exploring any financial services website.

The purpose of the Sanco Services website is threefold: (1) to promote the somewhat unique (and non-mainstream Wall Street) Investment Strategies of Investment Manager Steve Selengut; (2) to promote the sale of a book entitled "The Brainwashing of the American Investor"; (3) to provide educational information to the investing public.

Every statement, discussion, illustration, and representation contained anywhere on this website is entirely the creation and opinion of  Steve Selengut (unless noted otherwise). Nothing said or alluded to has been researched beyond the scope of the author's personal (and quite extensive) experience in the investment arena. It is presumed that visitors to this website will take the initiative to both investigate and question the information that is provided here.

Certainly, anything said here is subject either to criticism or to objection by others in the field. That doesn't make it wrong. But it is clearly not anything like the blather that emanates from many other resources. Nothing should be construed to be absolute, or predictive of anything at all.

No specific statistics regarding performance of client accounts are presented for various reasons, not the least of which is the incredible hassle it is to substantiate such statistics in the format and time limitations required by regulatory agencies. For performance information, I provide a list of references that prospective clients may contact at their leisure.

[Actually, I'm not a big believer in conventional performance analysis anyway, based as it is on calendar time periods, Market Value comparisons with averages and indices, and non-client specific benchmarks.] References may be provided to prospective clients who understand the investment strategies, definitions, and concepts explained in "The Brainwashing of the American Investor." 

My basic assumption is that the select group of humans that visit this website are intelligent enough to interpret what they read without being misdirected. If interested, they will know how to reach out for more information. Never be shy about asking questions of the person who will be directing your investments, and if you don't agree with any aspect of the strategy that you feel is important, hire someone else.

The purpose of, and the need for, performance statistics on this website (in the past) was mainly to debunk media representations that perpetuate financial myths of various kinds. I can state my opinion about the information, but you will have to dig up the evidence yourselves. The "Brainwashing" book will help.

Nowhere within this website should any statement, number, notion, or illustration be taken as a guarantee of anything at all. But please keep in mind that, in my humble opinion, there was absolutely no reason for an investor to lose money in the stock market from 2000 thru 2004. No Mutual Funds, No New Issues, No NASDAQ, No Problem!

Now wasn't that more fun than this mainstream disclaimer, which also applies? 

This website is provided as a source of information only, and is not an offer or solicitation to buy or sell securities or derivatives of securities, nor is this information provided as investment, tax, or legal advice.  Not all products, securities or services described are available in all countries, and nothing within the site is an offer or solicitation to buy or to sell securities or services in any jurisdiction where their offer or sale is not qualified or exempt from registration.

The information provided on the site is obtained from sources deemed to be reliable but the accuracy of the information cannot be guaranteed.  Sanco Services does not guarantee the accuracy or completeness of the information, or make warranties, express or implied, with regard to the results to be obtained from the use either of the information on this website or on any other website that either links to or from this website. Amen!

With these caveats and explanations in mind, go, learn, think, have fun, and prosper.

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. 

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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.