Scouting for Growth Steve Selengut: Creating Income Freedom
On this episode of the Scouting For Growth podcast, Sabine VdL talks to Steve Selengut who has over 40 years of direct investment management experience & is one of the few investing book authors who has actually managed client money for decades.
Steve is here to share the fundamental principles behind "income-focused investing" laid out in his book “Retirement Money Secrets.” His approach can help investors confidently replace their paycheques with portfolio income streams that grow regardless of markets or rates.
KEY TAKEAWAYS
- 25% of my money was always in the bond market, which included closed-in funds, mortgages, real estate, notes, loans, short-term, long-term, in the country, out of the country, a great, diverse portfolio. I stuck with stocks individually for a longer period of time & they all paid dividends which became an income stream over time.
- IN the first 5 weeks of 2024 my own personal accounts have generated over $20,000 in income. I’m not bragging about it, this is the possibility. Not only is it throwing out dividends every month, but the capital gains are like getting a cheque in the mail from your rich uncle & having something more to reinvest.
- After learning all the foundational rules about investing, people should focus on the income produced by the shares, bonds, etc, instead of their market values. You can’t spend the market value, you can’t spend a gold brick, you can't spend cotton futures, but you can spend cash. The companies are giving you cash because they appreciate your value as an owner, utilities companies were always very good at this. But most companies, especially in the tech sector, want to grow.
- Mutual funds were developed & began to get popular after the crash in the 20s, the great depression because everybody was afraid of the stock market at that point. Mutual funds gave people a diversified portfolio, you could own part of all the companies & participate in the growth of the economy again without the fear of 100% loss if a company goes bust. That bought a lot of money back into the marketplace. There isn’t an investment advisor out there that would deny the fact that diversification is the key elements of risk minimisation that you can employ.
BEST MOMENTS
‘Big companies influence advisors, it’s not just economics, there’s a lot of politics in there too.’
‘Bonds are a much safer investment than stocks by their nature, & they pay income.’
‘If you see a $100 bill on the sidewalk, do you walk by it hoping it’ll be $150 tomorrow? Pick it up & reinvest it, it’s new capital’
‘I’ve been through too many crashes to take for granted that every great company is going to continue to be a great success.’
ABOUT THE GUEST
Steve Selengut is a 44-year veteran investment manager & advisor specialising in income investing. Over his career, he directly managed over $110 million in individual investment portfolios in the US and abroad.
Steve has now distilled his experience into the book: ‘Retirement Money Secrets’ which explains the principles behind income investing. He also provides coaching services to both individual investors & financial advisors on implementing income investing using customised security selection. His goal is to get people to a sustainable, growing income level that makes market volatility & interest rate hikes a benefit rather than a problem.
ABOUT THE HOST
Sabine is a corporate strategist turned entrepreneur. She is the CEO and Managing Partner of Alchemy Crew, a venture lab that accelerates the curation, validation, & commercialization of new tech business models. Sabine is renowned within the insurance sector for building some of the most renowned tech startup accelerators around the world working with over 30 corporate insurers & accelerating over 100 startup ventures. Sabine is the co-editor of the bestseller The INSURTECH Book, a top 50 Women in Tech, a FinTech and InsurTech Influencer, an investor & multi-award winner.