new media allegations<\/a> about President Trump’s White House meeting with Russia’s foreign minister and about the firing of FBI director James Comey. Regardless of what you think about these allegations or the mainstream media in general, the potential for these kinds of\u00a0distractions to disrupt his domestic agenda seem very real. That’s important because as we’ve discussed many times, the post-election rally is based mainly on optimism about President Trump’s economic agenda. If criminal allegations and non-stop media firestorms derail or even delay that agenda, the question becomes; what might that mean for the overvalued stock market.<\/p>\nIt’s a question that gets a heart of why it’s so important to possess the right values for managing your money especially in uncertain times. You might think the main value I’m referring to now is something like cautiousness or restraint and maybe those would be right if you were in your thirties but if you’re over the age of fifty and you’re part of the income generation, then you perhaps didn’t go far enough with cautiousness and restraint. The first value I advocate for managing your money once you’re passed age fifty in a thing we call over protection; the willingness and ability to air on the side of caution where your assets are concerned. Often that means going against what’s popular or trendy, it means zigging while others are zagging and it means that going against others when they’re telling you to zag also. To some extent, it has meant that for todays over protective investors ever since 2013.<\/p>\n
That’s when the stock market rebounded to its previous state from before the 2007 2008\u00a0crash. It has trended upward even ever since 2013, reaching new records several times. Now some brokers and financial advisors will say that if you haven’t had most of your savings in the stock market over these last four years; no matter who you are, you’ve been missing out on gains. I would argue these advisors probably don’t possess the most important core value for saving and investing within fifteen years of retirement and that is again over protection. Chances are they may not possess any other critical value necessary for the job either, including detail orientation. I believe that if they were detail oriented they would understand that none of the market rallies we’ve seen since 2013 have been based upon economic realities, instead they’ve been based on unprecedented levels of manipulation by the Federal Reserve. They’ve been based on stock buy-backs, hiring freezes and other tricks by corporations to disguise their lack of growth on the bottom line. They’ve been based on pure emotion and irrational exuberance which is certainly the case with the so called Trump Bump.<\/p>\n
In other words, the market has been very high risk throughout this so called recovery which I would argue has it been a true economic recovery as much as it’s been as asset recovery. Yes, investors over age fifty who have been taking the risk following the busy road instead of following the road less travelled have left out so far but an increasing number of economists are warning that they may be living on borrowed time and that the overvalued stock market is overdue for another major market crashing. The lessons of market history suggest the same thing and President Trump’s trouble plagued presidency may trigger it sooner rather than later. What about fixed income investors who have been taking the road less travelled, who have been living by the values of over protection and detail orientation either on their own or through a financial advisor; have they really been missing out?<\/p>\n
Well if their goals are aligned and are not in conflict with their strategy then no, they would have been missing out on unnecessary risks. Why because by also practicing diligence, leadership and other essential core values, they’ve been enjoying solid returns through income based retirement strategies designed to match their goals. Now let’s bring back out guest today; Bob Burg, the original go giver.<\/p>\n
<\/p>\n
Bob Burg:\u00a0<\/strong>Thank you David.<\/p>\n <\/p>\n
David Scranton:\u00a0<\/strong>You’re very welcome. So Bob we’ve been talking so far about things like how the go giver concept could be used generally, not just financially but in general ways in people’s life time because a lot of people are watching us through The Income Generation members are retired but I also know that a lot of those are not retired and that’s why the show airs on a weekend. So one of the things we talked about earlier on the show as you heard was the fact that to be a good investor, sometimes you have to be contrarian. Sometimes being a contrarian goes hand in hand with that go giver concept.<\/p>\nBob Burg:<\/strong> Well many of the five laws are contrarian in nature whether it’s a law of values that says your true worth in a business sense or in the personal sense is determined by how much more do you give in value than you take in a payment. What that means is not that you don’t profit and profit is not just financial, we can profit financially, physically, spiritually, mentally, emotionally,\u00a0socially, relation wise; all sorts of ways but what it means is when you’re always focused on giving to others and helping them profit, help them bring about their happiness; because remember, everyone pursues happiness in their own way according to their own values and the pursuit of happiness is one of our big three in this country.\u00a0 So when we focus on giving more in value to others, boom that starts the echo effect and as we say, money is an echo of value but so is wealth, so is kindness, so is everything else that’s good.<\/p>\nDavid Scranton:\u00a0<\/strong>Well it’s funny because you talk a lot about crony capitalism and how some people don’t see it the way you see it.<\/p>\nBob Burg:<\/strong> Right. Well unfortunately, many people; especially those on the political lift, they see crony capitalism as being the same as capitalism and the fact is crony capitalism is to capitalism what Chinese Checkers is to Checkers; nothing, only the name is right because crony capitalism is not free market capitalism, free market capitalism says that government has the legitimate function of protecting it’s citizenry from force and fraud but other than that it’s leave everyone alone to buy, trade, sell with each other and when they simply do that now, people are able to buy because they believe it will bring them happiness as they value happiness, people are able to sell for this… And what that does is it creates a true economy for everyone as opposed to the false economy that’s created when government puts their hands where it really shouldn’t be.<\/p>\nDavid Scranton:\u00a0<\/strong>Well it’s always great because just last week we had Steve Forbes sitting in your seat talking about how to get true growth and it’s very much the same. When I think of go giver concept and people getting compensated to the extent in which they give value, the person I always think about is Steve Jobs. If you think about; it wasn’t long ago I was walking around with a flip phone and you probably were too and no we can’t get away from those things; our phone, our computer, they are virtually everything. SO can you give us some other ideas of some other corporate leaders that you’ve put in that go giver category?<\/p>\nBob Burg:<\/strong>\u00a0Well I think of Bob Chapman who’s the Chairman and CEO of Barry Wehmiller a huge humongous manufacturing firm based out of St Luis but worldwide and he also wrote a book called Everybody Matters. And here’s a man who absolutely treats his employees as family members, it’s not just a slogan on the wall. He understands that making them feel good about where they work and feeling good about themselves of not only again the right way to do business but then they have more invested in their job and they have a wonderful family of companies, that’s a true go giver and a go giver company.<\/p>\nDavid Scranton:\u00a0<\/strong>\u00a0As a go giver you have to fever go giver, you don’t have to be a chaser and a go getter because you’re a go giver, it’s perfect. In the corporate world then; I always complain about the fact that although we have the best system I believe in the world economically, there is little conflict of interest. We talked about the media\u00a0in a recent show where we talked about the fact that a CEO is; their fiduciary responsibility is\u00a0to maximise shareholder value, not to do the best thing for the customer but do the best thing for shareholders and that is and inherent conflict of interest but you say that the corporation follows the go giver concept in the last\u00a0forty five seconds or so we have then really it’s a win win isn’t it?<\/p>\nBob Burg:<\/strong> Look at an old example that people use all the time because it’s so great; South West Airlines, here’s a company who in a field in which no one is profitable, they have been profitable; other than the first year they were in business, they’ve been profitable every single year because they focus on bringing value to their team of people and their team of people focuses on bringing value to their customer, they do the right thing. As Harry Brown used to say “Profit is simply the reward for pleasing the customer.”<\/p>\nDavid Scranton:\u00a0<\/strong>That’s great. So you are a South West flier I assume?<\/p>\nBob Burg: <\/strong>When I get to fly on South West, I love it but I typically go to where my clients hold their sales conventions and I take the best plane out there to get there.<\/p>\nDavid Scranton:\u00a0<\/strong>I love South West too except for that I’m not from the mid-west and that whole herding concept.<\/p>\nBob Burg:<\/strong> Yeah<\/p>\nDavid Scranton:\u00a0<\/strong>[Inaudible] so much but we have to go. Before we do though, can you do me a favour; can you please tell our Income Generation members where they can get their copy of The Go Giver?<\/p>\nBob Burg:\u00a0<\/strong>Sure, visit thegogiver.com; no hyphen, just thegogiver.com and you can get chapter one while you’re there.<\/p>\nDavid Scranton:\u00a0<\/strong>That was easy wasn’t it?<\/p>\nBob Burg:\u00a0<\/strong>Sure was.<\/p>\nDavid Scranton:\u00a0<\/strong>There you go. Alright, stay with us we’re gonna have our financial advisor round table as soon as we come back The Income Generation, stay with us.<\/p>\n[Commercial Break]<\/strong><\/p>\nMiranda Khan:<\/strong>\u00a0Welcome back to Income Generation, I’m Miranda Khan. Now let’s take a look at some of the big finance news stories that moved the market this week. The congressional budget office released its new scoring of the GOP’s health care plan. According to that report 23 million Americans will lose coverage under the American Health Care Act but the deficit would fall 119 billion dollars over the next 9 years. US stock Ownership hasn’t yet recovered since the 2008 financial crisis, this according to a new Gallup Survey. It found that only 54 percent of adults say they own stocks; that is down from 62 percent before the crisis. American Steelmakers warn that foreign imports threaten national security, they argue the flood of imports erodes their profit margins and their ability to meet US defence needs but foreign governments disagree, and they say the industry adequately meets the need. Some good news for Sears; the retailer posted its first quarterly profit in nearly two years. The gain is reportedly due to the company’s sale of its craftsman brand and a program to cut more than a billion dollars in cost. For much more on these stories visit newsmax.com\/finance. Now back to\u00a0David Scranton and The Income Generation.<\/p>\nDavid Scranton:\u00a0<\/strong>Thanks Miranda. Now that you’re all up to date, let’s hear from some other financial advisors in the field and gets their insights on today\u2019s topic of Values. It’s time for another financial advisor’s round table, joining me today we have Mike\u00a0Burleigh\u00a0and David Wright. Mike Burleigh is president of Peak Capital Management\u00a0in Jensen Beach Florida. He’s been an advisor for over 25 years and has helped thousands of clients protect their hard earned savings and achieve their retirement goals.<\/p>\nDavid Wright is the owner of Wright Financial Group in Toledo Ohio and he wins the contest because he’s got 31 years of experience under his financial belt; actually one year more than yours truly. He and his team work closely with clients to design tailor made financial strategies for individuals, families and businesses specialises particularly in; you guessed it, retirement planning. Gentlemen, thanks for joining us today.<\/p>\n
Mike <\/strong>Burleigh and David Wright:<\/strong>\u00a0Thanks for having me David<\/p>\nDavid Scranton:\u00a0<\/strong>So first let’s talk about you and what value you think is most important and how you determine how to run your practice; David.<\/p>\nDavid Wright:<\/strong>\u00a0Good question Dave, there’s a lot of values that are important to the financial planning process but the one thing I think I bring to the clients or prospects more than anything else is the art of listening. God gave us two ears and one mouth and we should use them in that proportion and many times when I meet with people for the very first time, it is absolutely eye opening how ahh-struck they are that someone digs into as much details as we dig into, not just the hard data but the data that’s important about retirement but what’s important to them; grand-children, travelling and tuning out the world and tuning\u00a0 in to them, zoning into them is probably the most enjoyable and exciting part of what I do.<\/p>\nDavid Scranton:\u00a0<\/strong>Wait a minute wait a minute wait a minute, you can’t be a real man right because we all know that men don’t listen, they just like to hear themselves talk and unfortunately most financial advisors are men and weren’t you in that movie Mrs. Downfire; was that you Dave?<\/p>\nDavid Wright:<\/strong> Well it was Dave, how are you sir?<\/p>\nDavid Scranton:\u00a0<\/strong>Mike<\/p>\nDavid Wright:<\/strong> Hey you’re busting my shops here.<\/p>\nDavid Scranton:\u00a0<\/strong>Hey we got to have some fun, we’re on television right? Mike tell our Income Generation members in your practice what you think is the most important value that help you run your practice successfully and to add the most value for your clients.<\/p>\nMike Burleigh:<\/strong> What I find Dave is, most of our clients are 55 and up; they’re either in retirement or near retirement and when we meet with them we find that a lot of times they’ve done really well with savings as far as 401k’s IRAs but they really don’t have any defined goals for their retirement. Believe it or not they don’t have any defined strategies. So if you don’t have any defined strategies and you don’t have any defined goals, those two things can be in conflict. So what we like to do is sit down with our clients and find out really what their retirement is going to be all about; nobody has ever really asked them that question. In other words, what do you want to do in your retirement? Is it going to be travel, visit your grandkids, golf, whatever your hobbies are and that type of thing? Once we have that information we’re able to put a plan together and build that around their goals.<\/p>\nDavid Scranton:\u00a0<\/strong>Now Mike I can’t help but ask you here; you’re sitting there and of course there is a door behind you so is that an escape route in case you have angry clients? I mean what’s up with the door? I need to know.<\/p>\nMike Burleigh:\u00a0<\/strong>Well it’s actually an escape route in the event where maybe the clients aren’t a fit for us, we have a way to put them out the back door.<\/p>\nDavid Scranton:\u00a0<\/strong>Excellent answer I love it, that’s great. So tell me what values now that you see in your clients who come in; which values are most important for them, give me the top two values you find are most important for these individuals most of whom I know in each of your practice is a part of The Income Generation; David<\/p>\nDavid Wright:<\/strong>\u00a0I think the most important goals today are leadership, honesty; it’s easy to follow the herd mentality and I’m shocked to see clients and prospects come in here day after day who have goals in retirement\u00a0when we ask them, many of which Mike just highlighted but their assets aren’t put in places that can meet those goals. So having the leadership to… And you know what, having leadership values means feeling alone and sometimes not following the herd. It’s important to have that courage to have honest conversations with clients so you know that their assets are aligned for their go-go years, their slow-go years and so on. So it’s important to be a good listener even though you don’t think men are good listeners; some men are, even Mrs. Downfire.<\/p>\nDavid Scranton:\u00a0<\/strong>It’s just that that’s what women told me, that’s why I believe it. If they say it, it must be correct right guys? So I know you mentioned leadership and I talked earlier in the show as you two know about the road less travelled; Robert Frost’s famous poem and I guess your way of defining it and also in my book I define it as leadership which means the ability for people to take that road less travelled, you have to be a leader and not a follower in order to do that. So I agree with you completely and honesty because if one is not brutally honest with him or herself well then they’re not going to be able to do what they need to do to have a successful retirement. Mike how would you\u00a0answer that question?<\/p>\nMike Burleigh:\u00a0<\/strong>Well very similar to David. I mean if you’re going to pop follow the herd you’re going to have to watch where you step right? So show people that you care, I know as corny as that sounds but that’s the number one thing. You have to let people know you care about their retirement. The number one goal for us is to again find out what their goals are in retirement, show them that you care about what they want to accomplish and then you can build a plan around that.<\/p>\nDavid Scranton:\u00a0<\/strong>So tell me what do you think prevents people; when you see conflict as you said David between someone\u2019s goals and values versus their strategy, give me an idea first of all of what’s the conflict that you most commonly see? Let’s start there.<\/p>\nMike Burleigh:\u00a0<\/strong>Well the most common conflict I see it the inability for that client or prospect to really accurately assess the risk that they have. I being the older states man here having 31 years of doing this, when you and i first broke into the business Dave, there were a lot of corporate sponsored pension plans people didn’t have to worry about their income, they simply worked for 30 years for one company and had a pension plan but as you know in the 80s and 90s that kind of went away and everything got put into the consumer’s hand to plan for their own retirement and the 80s and 90s were robust years in the stock market but once 2000 occurred, it’s been less advantageous for clients and prospects. They come to retirement, they don’t know necessarily the skills that got them to retirement are not the skills to get them to the end of retirement.<\/p>\nDavid Scranton:\u00a0<\/strong>Now David I do have to tell you; you are a good looking guy an all and I know you love to look at yourself on the right hand corner of your screen there while your Skyping but really we’re up here, we’re straight ahead in the camera so you could look at yourself in the mirror later after we get of the show if that’s ok.<\/p>\nDavid Wright:<\/strong> Oh gee, thanks.<\/p>\nDavid Scranton:\u00a0<\/strong>Mike in the thirty seconds we have left, tell us what values you think are most in conflict when you talk to your clients.<\/p>\nMike Burleigh:<\/strong> Well we get a lot of clients that come in and they just don’t even realise the risk they’re taking. We have a tax practice; we had somebody in last month a matter of fact, and reviewing their tax return and going over their broker statements; they seem like conservative people and they found out they had a hundred percent of their account in equities and their response was “well we have conservative stock.”<\/p>\nDavid Scranton:\u00a0<\/strong>Oh I love that, that’s my favourite. What an oxymoron; conservative stock, isn’t it ridiculous?<\/p>\nMike Burleigh:<\/strong> And you really don’t know how to sit down and explain it to them.<\/p>\nDavid Scranton:\u00a0<\/strong>Well we need to take a break now so gentlemen I assume you can stick around for a little while. For Income Generation members stay with us, we’re going to dive next into the philosophy of psychologically why these conflicts exist.<\/p>\nDavid Scranton:\u00a0<\/strong>Welcome back to The Income Generation, I’m\u00a0David Scranton your host. Now let\u2019s bring back our financial advisor round table again we have David Wright the owner of Wright Financial Group in Toledo Ohio and Mike Burleigh the President of Peak Capital Management just a little bit north of us here in Jensen Beach Florida. Gentlemen thanks for sticking around.<\/p>\nMike Burleigh and David Wright:\u00a0<\/strong>Thanks David<\/p>\nDavid Scranton:\u00a0<\/strong>So you know we talked about some of the conflicts that clients of yours have when they first walk in the door between their values and their strategies but mostly in terms of risk in various stages of life but have you ever thought about why that conflict exists, what creates it in the first place? Dave<\/p>\nDavid Wright:\u00a0<\/strong>I think it\u2019s pretty simple, people love opening their statements when they know markets are up and it’s that whole concept that drives the market; fear and greed, they are natural human tendencies. When things are up, people want to open their statements, they want to try to squeeze out every last drop of gain they can make but you and I both know from 03 and 08; I had clients that had 401ks with their companies, they wouldn’t open statements for quarters on end because they didn’t want to see the negative news. So I think their goals and how they are invested are in direct conflict because of that reason.<\/p>\nDavid Scranton:\u00a0<\/strong>The human emotions of fear and greed; Mike, what would you say?<\/p>\nMike Burleigh:<\/strong> Well you know to me it’s one of those challenging things that we have to deal with is actually breaking habits. What I mean by that is; you take in an individual investor, he’s working 20 or she is working 20, 30, 40 years and all of a sudden they’re in retirement. And for that whole period of time, they’ve developed the habit of saving, putting money away in their IRAs 401ks year in year out, year in year out for 20, 30, 40 years and this is deeply engraved into them and all of a sudden now they’re in retirement so that changes. Now they’re going to… You know Bill King doesn’t go away into retirement; now they want income but they have a difficult time spending the money they have accumulated, spending their interests and dividends because the habit has been so deeply engraved in them over 20, 30, 40 years. So it’s almost like you’re part financial advisor and part psychologist with some of these clients.<\/p>\nDavid Scranton:\u00a0<\/strong>\u00a0Though they have us often referred to as the 401k mind-set, the 401k brain and it’s hard to make that pardon shift it seems. I always talk about the fact that if a particular Basketball team; Laslight Cleveland they were recording this Cleveland just had the last game beating the Celtics there ahead by so much with few minutes to go that was all but defence and not so much offence but I guess my next question is, how much do you think other financial advisors are at fault for this? For maybe perpetuating that mind-set that’s in direct conflict with their values of most retirees and pre-retirees. Dave<\/p>\nDavid Wright:<\/strong> Well I think it has a lot to do with who that advisor works for or works with, whether they’re independent, whether they do their own research. Most of the clients that come in here that have multiple advisors have heard their advisor that drank the cool aid of wall street along with all the hype on T.V., we just find that they are way over invested in stocks and not thinking about dividends and interest and their advisor at other locations comes off more like the “raw raw go wall street” type of person and it’s tough to sometimes break through that but when they see what the risks really are long term and how that can impact their values in retirement, many times they wake up and see it but I think that has a lot to do with it, it’s the current status of our media; what things look like on T.V., what their advisor is saying.<\/p>\n <\/p>\n
David Scranton:\u00a0<\/strong>So you’re talking about the dreaded wall street cheerleader; full with the cheerleader uniform, the pompoms, jumping up and down and no Dave don’t worry I\u2019m not going to ask you to imitate the cheerleader, I\u2019ll save you that.<\/p>\nDavid Wright:<\/strong> Alright thank you.<\/p>\nDavid Scranton:\u00a0<\/strong>Mike why do you think this happens with some financial advisors?<\/p>\nMike Burleigh:<\/strong> We kind of all get painted with the same brush David and the reality is we couldn’t be more different.<\/p>\nDavid Scranton:\u00a0<\/strong>Yeah and people think that any financial advisor is just all the same but it\u2019s not. It’s like saying every doctor is the same but it doesn’t work that way does it?<\/p>\nMike Burleigh:<\/strong> It does not work that way but the general public does not know that. They walk in and say anybody can call themselves a financial advisor. They walk in, they don’t understand the business model with different financial advisors; some are more risk based, some are more conservative, they don’t know walking in the door so they definitely need to ask a series of questions before they hire somebody.<\/p>\nDavid Scranton:\u00a0<\/strong>I can see why in Jensen Beach retirees flock to you Mike because with that income based model it’s what they need and probably have nobody else in town that’s doing that which is probably why you have those sun glasses because when you go out in public, you don’t want other advisors taking pot shots at you so you need to go with a disguise; is that what the glasses are about?<\/p>\nMike Burleigh:<\/strong> Yeah this is true, I have to kind of go incognito sometimes and kind of watch; you never know who’s going to come up to you.<\/p>\nDavid Scranton:\u00a0<\/strong>You know both you guys I have to tell you, I love you guys but I also hate you guys because you guys are all a couple years older than me and you have way way too much hair on your head for somebody who is at all older than me for goodness sake. With that comment, we’ll be right back and for Income Generation viewers we have much in terms of words of wisdom from our financial advisors round table. Stay with us, we’ll be right back after the break.<\/p>\nDavid Scranton:\u00a0<\/strong>Welcome back to The Income Generation, I’m\u00a0David Scranton\u00a0<\/strong>your host and today with us are David Wright and Mike Burleigh financial advisors with accumulative of 50 years of experience between the two of them. I think you’re both right that the reason that there’s conflict regard what most advisors teach clients that is between the creates conflict with the values and the actual strategies is part of it yes the wall street cheerleaders a fact a certainly think that’s some of it and the other part of it is the source of the research. I think part of it also has to do with how difficult, how much diligence it takes to really invest in fixed income. Most people don’t realise that advisors have gotten lazy in the 80s and 90s with the advent of mutual funds and fixed income takes a lot of work, in fact it takes more work than stock picking. In stock picking, you kind of go “okay, I think this stock is going to go up” and you buy and hopefully you’re right; it’s more of a subjective right brain function but fixed income analysis is much more of a left brain function. So how much of this do you think really has to do with just laziness of financial advisors or the industry in general?<\/p>\nMike Burleigh:<\/strong> I think yeah a lot of advisors are more geared towards stock market based investing and they can just sort or check the box and put the client in a bond fund so there’s no real management there.<\/p>\nDavid Scranton:\u00a0<\/strong>And that’s about how much work it takes to buy a bond fund too right you just simply check the box.<\/p>\nMike Burleigh:<\/strong> It takes about thirty seconds so there’s not a lot involved there but it’s not really fixed income investing.<\/p>\nDavid Scranton:\u00a0<\/strong>David<\/p>\nDavid Wright:<\/strong>\u00a0People just don’t understand the time and the research that it takes to not only find the right fixed income investment but the right timing and when to purchase it\u00a0 and\u00a0 it requires patience, it requires diligence and most of all it requires a lot of research and like you said, wall street is intoxicating, people have gotten away from the income model but everything old is new again and this whole concept of income investing is not new, it’s been around; it’s just been forgotten.<\/p>\nDavid Scranton:\u00a0<\/strong>It’s going back to basics if you think about it in lots of ways. So what do you think though, how much does this have to do with corporations trying to cover their own rear ends by the outsource\u00a0big rogue in terms of outsourcing a lot of the management, do you think that\u2019s part of it too?<\/p>\nMike Burleigh: <\/strong>Yeah I don\u2019t think they want to deal with it anymore absolutely.<\/p>\nDavid Scranton: <\/strong>It\u2019s still a bit of CYA right because if you have a broker out there picking individual things you might do good things or bad things, creating liability for the corporation but if you outsource it to a third party money manager you have as the batteries would call it plausible deniability.<\/p>\nMike Burleigh: <\/strong>You\u2019re building that layer of protection.<\/p>\nDavid Scranton: <\/strong>You are that\u2019s correct, that\u2019s correct.\u00a0 So since we\u2019re talking about diligence here,\u00a0 we\u2019re going to come back and we\u2019re going to give you a little quiz, I hope you gentlemen don\u2019t mind; we\u2019re going to find out how you do your research okay, so I want you to think about that while we\u2019re taking our break. And for Income Generation members, stay with us we\u2019ll see how they do whether they pass the test or not, we\u2019ll be right back in a moment.<\/p>\n\u00a0<\/strong>[Commercial Break]<\/strong><\/p>\nDavid Scranton: <\/strong>Gentlemen so now that you had a commercial break there to think about the answers to the question; how would you answer the question in terms of how you do your research and remember these are some of the questions I put in my book, Return On Principle for people who are interviewing advisors so let\u2019s hope you get this right, Mike.<\/p>\nMike Burleigh:<\/strong> Well you know we do our own research here so I have to set aside time each week and research through various sources. Bond markets, bond and bond-like instruments unlike the stock markets aren\u2019t efficient markets so we have to look at different factors, we look at their credit quality, the ability of the companies to meet their obligations and those type of things, so we have to set aside time each week to do that.<\/p>\nDavid Scranton:<\/strong> And you talk about credit quality; you can\u2019t just trust the rating agencies anymore.<\/p>\nMike Burleigh: <\/strong>Not anymore, nit after 08 09.<\/p>\nDavid Scranton: <\/strong>That\u2019s right.\u00a0 Dave how would you answer that question, how do you do your research for your clients?<\/p>\nDavid Wright: <\/strong>That\u2019s a good question Dave. I\u2019ve taken on the outsourcing of my investment research but I\u2019ve done it in the right way for income investing. Who I use they take time to select individual securities. The whole universe of non stock market income generating type investments; it takes time, it takes a lot of research and not only research on my part with the outsourcing firm but with the client themselves.<\/p>\nDavid Scranton: <\/strong>So you don\u2019t just check off a box and throw them into some bond fund, you e outsourced the professionals who know what they\u2019re doing. Well gentlemen you\u2019ve both passed the test according to my book so for anyone who\u2019s reading my book in your area who\u2019s coming to see you and interview you as a potential advisor, you\u2019re going to past the test. Thanks for being here today both Dave and Mike, I really appreciate it.<\/p>\nDavid Wright and Mike Burleigh: <\/strong>Thanks for having us.<\/p>\nDavid Scranton: <\/strong>And again I want to thank all of my guests for joining us for another stimulating episode of The Income Generation. I\u2019d also like to thank you our new and returning viewers. I hope we\u2019ve helped shed some light on why it\u2019s incredibly important to examine your own values and the relationship to your retirement goals. Do you have the right values and characteristics to achieve that goal? Are you practicing over protection and detail orientation? Are you willing to take the road less travelled when you know it\u2019s time and do you know exactly how to take it? These are questions I\u2019d encourage you to examine closely and to answer with brutal honesty about yourself and about your financial advisor. Again you or he may possess and live by all the kinds of positive values that’s completely possible but if you don’t have just the right ones for this particular job, it’s probably a good idea to find someone who does. There’s simply too much at stake to leave this issue to chance when we’re talking about your life savings. So if you’re close to retirement and you really want to know how to protect and maximize your money, it’s absolutely essential you stay informed and up to date and thank you for watching we’ll see you next week.<\/p>\n","protected":false},"excerpt":{"rendered":"