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"Most economies around the world are not growing. But the US is growing because of strong consumer spending."
NEW YORK, NY, December 09, 2019 /24-7PressRelease/ -- America's Money Answers Man Jordan Goodman invited David J. Scranton—Amazon best selling author and founder of Scranton Financial Group, Advisors' Academy, and Sound Income Strategies—on the Money Answers Show to evaluate the best investment options for retirees.
Through a discussion of Scranton's book, The Retirement Income Stor-E, the episode, "The Investing For Income Movement: Protecting Retiree's Assets," explains what place passive income has in an investment strategy, where lies the balance between investing for growth versus income, and what investors should be thinking about as they age.
Scranton says he specializes in "the universe of non-stock market income generating alternatives" and champions an income versus growth retirement strategy that guides his advising, where the proper balance lies between investing for growth versus income. When prompted by Jordan, Scranton evaluates the economy by way of analogy. "Our economy is kind of like a big room with central air conditioning and a little space heater in it. If you stand really close to the space heater, you'll feel the warmth, but if you get six or ten feet away from it the central air is going to overpower the space heater."
Most economies around the world are not growing. But the US is growing because of strong consumer spending. The rise in the stock market has made consumers feel wealthier and more willing to spend. Scranton reveals the main factors that have boosted the stock market: quantitative easing, corporate stock buybacks, and margin debt. The market can keep rising but eventually the bubble is going to burst.
"We've been creating artificial demand for goods in this country for over three decades and that has also caused a bubble in consumer demand," says Scranton. People are now more keen to spend money on assets rather than goods. Jordan probes, "What assets are in a bubble?" Scranton responds, "To some degree everything is in a bubble." But Scranton is a little less concerned with real estate than stocks. "There's an underlying demand that's going to keep the prices [of real estate] from dropping too far." His least concern, he mentions, are bonds, since, like real estate, they're investing by contract.
They talk income versus growth. "People make the transition from growth to income a little bit too late," warns Scranton. More difficult to accept psychologically, people nevertheless should start making that transition shortly after fifty years old. "Think about it. We're a generation of people that became addicted to the stock market. The 80s and 90s [saw] the best market in US history, so it became very easy for us to think about growth, growth, and more growth...and many have forgotten that you can get a decent return in investing for income, investing for interest or dividends."
When Jordan asks if people should find alternatives to traditional income-oriented vehicles, Scranton responds, "Sadly it's the new reality." But staying in a low-interest rate environment will attract European investors to US bonds, for example, since Euorpeans are experiencing negative interest rates.
Hear the entire episode for more expert retiree advice about solid returns and sound income strategies. And for more on how to gainfully prepare for retirement, listen to "Safe, Affordable Housing REIT + What's Happening in the Markets", "Secure And Successful Retirement - YES!", and other great money growing content from the Money Answers Show.
You can listen to The Money Answers Show with Jordan Goodman live every Monday at 12pm PST, 3pm EST, or by downloading the podcast on iTunes, Stitcher, or wherever you get your podcasts. You can also catch Goodman on Money Answers TV. If you're looking for additional information on finance, you can read Goodman's books on everything from repaying your student loans to real estate to the latest wealth strategies.
Jordan E. Goodman is "America's Money Answers Man" and a nationally-recognized expert on personal finance. He is a regular guest on numerous radio and television call-in shows across the country, answering questions on personal financial topics. He appears frequently on The View, Fox News Network, Fox Business Network, CNN, CNBC, and the CBS Evening News. He is the author/co-author of 13 best-selling books on personal finance including "Master Your Debt Fast Profits in Hard Times," "Everyone's Money Book," "Master Your Money Type," "Barron's Dictionary of Finance and Investment Terms and Barron's Finance and Investment Handbook." Jordan is also a speaker and seminar leader on personal finance topics for business executives, students, associations, investment clubs, employees and others. For more information, please visit https://www.moneyanswers.com.
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