Kevin Simpson - Walk Toward Wealth: The Two Investing Strategies Everyone Should Know

PRAISE FOR WALK TOWARD WEALTH

Walk Toward Wealth is a must-read for people who want to learn how to create their luck with an income-producing methodology.

- JEFF SAUT, Managing Partner, Saut Strategy

Kevin simplifies complex investment concepts with such confidence and ease I didnt want this book to end.

- JACKIE DEANGELIS, FOX Business Network correspondent

Kevins covered call, risk-managed approach to growing wealth is a great strategy for taking the emotion out of investing for many non-taxable accounts over the long term.

- GARY KAMINSKY, Former Capital Markets Editor, CNBC, and Former Vice Chairman, Morgan Stanley

WALK TOWARD WEALTH. Copyright 2022 by Kevin Simpson. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photography, recording, or any information storage and retrieval system, without permission in writing from the author.

Requests for permission to make copies of any part of the work should be sent to .

Published and distributed by:

Merack Publishing, San Diego, CA.

FIRST EDITION

Designed by Ryan Dawson.

Photography by Chris Urso.

Library of Congress Control Number: 2021924311

Simpson, Kevin

Walk Toward Wealth

ISBN 978-1-957048-05-5 Paperback

978-1-957048-06-2 eBook

978-1-957048-07-9 Hardcover

978-1-949635-29-4 Audiobook

This book is dedicated to my wife, JoAnna,
my son, Jack,
and my dog, Dallas.

Thank you for always encouraging me to reach higher
and to strive for perfection.

CONTENTS

FOREWORD

K evin and I both come from hard-working families who, just a few generations ago, humbly made their way from Europe to the United States to passionately pursue the American Dream.

While they proudly ended up as auto mechanics, schoolteachers, crane operators, and stay-at-home moms not rich by any means our families have heart, worked hard, and budgeted, which helped us establish a value system and sense of self-worth that cant be measured in dollar signs.

Our blue-collar and middle-class upbringings may not have paved our way with silver spoons, but they showed us that drive and determination can take you places.

You dont get to pick your family of origin, or where or when youre born. A lot of things in life are serendipitous. When it comes to creating wealth and building financial independence, you dont have to rely on either. In this book, Kevin lays out in clear language and simple steps how you can build wealth based on the knowledge of seasoned portfolio managers honed over decades.

Until now, the benefits of portfolio hedging havent been accessible to the public at large. Instead, this knowledge has been held close by professional wealth managers and wealthy financiers. The democratization of wealth, full transparency, long-term thinking, and a consistent strategy are all aspects of money management that we also believe in at SkyBridge.

It doesnt matter if youre familiar with options strategies or dont yet understand the foundation of buying and selling stocks. All you need is curiosity, a desire to learn, and discipline to apply the strategies taught here.

The two important strategies Kevin details writing covered calls and purchasing proven, dividend-paying equities can help improve your investment returns through steady gains by focusing on investing for the long term and walking toward wealth instead of trying to get rich quick. His focus on dividend-paying, blue-chip equities is especially timely and prudent in our current low interest rate environment.

Kevin has the X factor for being successful: Hes not afraid to make decisions. Why? Because he stays true to his investing philosophy that youll learn about in the pages to come. I dont believe in money managers who are bottlenecks where every decision comes from one person. Having a disciplined, rules-based process allows Kevin to show you through real-life examples the methodology behind the decision-making.

In investing and life, we have knowns, unknowns, and unknown unknowns. When I left my first job out of Harvard Law School at Goldman Sachs to run a money management firm, I was a naive 32-year-old living in the mid-1990s who confused brains with the bull market. My foray into politics as a leverage mechanism to network and grow my career in finance, evolved into letting my ego and pride take me somewhere not well-suited for my personality. Ive learned there are things you think you know with great confidence that you get wrong.

Kevin works to remove emotion from investing with his tried-and-true, disciplined process to help limit ego-driven mistakes and manage risk. Every decision to invest or not is based on his rules-based approach that remains the same no matter whats happening in the market. As youll learn, knowing what to do, instead of focusing on the cause of high volatility or a market correction, is key.

When it comes to decision-making, conviction is good. Overconfidence and ego are not. Dont ever put your pride and ego into your decision making. Whether youre a seasoned investor or just getting started, this part of the human condition is the great equalizer.

More important than money, its the human condition that connects us all. With wealth, we can do things for ourselves, families, communities, and the world. Beyond wealth, recognize that youre on a journey and enjoy it.

- Anthony Scaramucci

Founder and Managing Partner of SkyBridge Capital

PREFACE

Invest and save wisely.

Cecilia Kopcinski

C ecilia didnt invent value-investing, and she wasnt the Oracle of Omaha, yet her words resonate with the same telling veracity of Benjamin Grahams or Warren Buffets. Who was she? Cecilia was my grandmother. And although she (Babcia, as we lovingly called her), along with my grandfather, Pop-Pop, fell squarely in the lower-middle class demographic, their fiscal responsibility and shrewd approach to saving made them the richest people I knew.

Surprisingly, I received a letter from Babcia just a couple years ago that was written 30 years prior. At the time, she purchased a zero-coupon bond in my name with a 2020 maturity date. When it matured, I received a $10,000 check and a handwritten letter:

Dear Kevin,

You know we love you very much, and hope you spend this money wisely. I hope you appreciate this act of love as we both worked hard to earn it. You know your grandfather was only a laborer at the Frankfort arsenal. I handled the money and invested and saved wisely, because it always gave us so much joy to give to our children. We love you all. God bless you, dear Kevin.

- Babcia + Pop-Pop

This is an incredibly powerful life lesson one that bears repeating to yourself, your clients, and even to your family, no matter the market environment or pressing issues at hand. Its always relevant to share the importance of having a long-term timeframe, committing to an investment strategy, and allowing the power of compounding to do its work.