Jay Spector, Co-CEO and founding partner of EverVest Financial, authored the “The Reality-Based Investor” after a career of public service in Washington, DC, where he worked with former Secretary of the Interior Bruce Babbitt, along with multiple positions in finance. He joined “Arizona Horizon” to discuss his book.
Spector said in this day and age, investors are confused by conflicting advice, leaving them feeling uncertain about whom they can trust. “The Reality-Based Investor” is a guide that walks investors through the process. The book provides an understanding of how to approach investing, practical strategies to apply and how to achieve long-term wealth.
Spector said the guide is geared towards real life, not Wall Street. Rather than containing “get rich quick” messaging, the book offers tips on building wealth in a way that is grounded in reality.
“Investors have spent decades saving for retirement, through their 401(k)s, through other savings, means that they have,” Spector said. “Growing investments is one discipline, but then utilizing your investments to help you comfortably retire is a completely different discipline.”
In his book, Spector explains the total return equation that he describes as, “growth plus income equals total return.” He also noted the importance of income in the equation and how it can increase the likelihood of total return over time.
This equation is often one that investors get wrong, according to Spector.
“If someone is solely focused on growth, and they don’t care about ups and downs of the market, you are not going to convince them or educate them on the proper way to invest for a long term retirement income portfolio. They’re hoping and praying they’re gonna have that long term growth,” Spector said.
When it comes to saving for retirement, Spector shares his piece of advice for anyone of any age.
“We encourage people to save, kinda not set it and forget it, but set it knowing you are not going to take distributions out of the IRA until 59 1/2,” Spector said.
