Wednesday, April 8, 2020

Golf and Business Deals


Dean Vagnozzi, the owner of A Better Financial Plan, helps his clients find ways to build wealth without gambling on the stock market. Outside of his work, Dean Vagnozzi enjoys playing golf.

Golf has a reputation for creating business opportunities. Golf is one of the greatest facilitators of business because the game is accessible to people of all ages and skill levels.

Due to the tempo of the game (a lot of stop and go), there is plenty of time to chat, socialize, and discuss business. Ultimately, each player improves his or her skill level while playing.

Playing golf with others requires a certain amount of trust. In golf culture, cheaters are shunned, and players who cheat are well-known. Honesty and trust are big parts of the game and essential parts of the foundation of many business deals.

The Economist reported that bosses who do not play golf are paid an average of 17-percent less than those who do play the game. Another study in the same publication found that the bosses who earned more did not necessarily deliver results to shareholders. This illustrates that engaging in a game of golf can establish loyalty, no matter how well the boss performs in his/her job.

Wednesday, March 25, 2020

401(k) Loans and Withdrawals Can Lead to Financial Setbacks

Sunday, March 1, 2020

Why the 401k is Not Always the Best Retirement Plan


An experienced financial advisor, Dean Vagnozzi is widely known for his unconventional approaches in financial planning and investment. Through his firm, A Better Financial Plan, clients receive advices that are unheard of from traditional financial advisors. Dean Vagnozzi openly criticizes 401k stating that it is not the best option available for retirement planning.

The most common retirement plan that many people invest in is 401k. Perhaps they think the 401k is the best option they have. When analyzed against factors of safety, growth, liquidity, and tax-free returns, 401k is not the most solid option.

1. 401k is not safe from loss - Most people fund their 401k by using mutual funds. Characteristically, the values of mutual funds rise and fall every day, and the potential for loss ranged from 30 to 50 percent of their values.

2. 401k’s potential for growth is not consistent - People have been misguided to believe that 401k has a growth potential of 8 to 10 percent. The idea is taken from the stock market’s earning records in 100 years. However, people do not have a 100-year window to invest in 401k. The time to invest in 401k ranges from 10 to 40 years. Looking at how the stock market has performed in 10-to-40-year windows, the record shows only 3 percent growth.

3. 401k is a very illiquid investment - The money that a person puts into his or her 401k remains locked up until he or she reaches the ages of 59½. So if that person started putting money into his or her 401k at 30 years old, he or she has to wait for 29½ years before he or she gets to enjoy his or her money.

4. 401k plans are not tax-free - The taxes that accrue on the 401k are deferred, which means, the investor will pay the taxes at a future date when tax rates are expected to be higher.

A Better Financial Plan offers a better alternative to 401k and it can be accessed through www.getabfp.com.

Sunday, October 6, 2019

A Better Financial Plan - Strategies for Better Long-Term Investments