John J. Vento - Financial Independence (Getting to Point X): an Advisors Guide to Comprehensive Wealth Management

Contents

Additional Praise for Financial Independence

It is without reservation that I recommend John Ventos book Financial Independence . Not only does the book cover the myriad of information that one needs to know for financial health, but it is presented in a clear, concise and readable manner. Too often, the jargon thrown at a reader about financial affairs makes the average person feel ignorant and ready to give up all decisions to the professional advisor. John makes it clear that the average person needs to be a participant in this process and provides the clear guidelines to make it possible.

Lynn K. Robbins, PhD

Drawing on 25 years of investment experience and a rich legacy of immigrant parents, John Vento defines the American Dream in realistic financial terms through his 10 Commandments of managing your finances and lifestyle. Step by step, he lays out in readable prose what he calls 10 Key Issues to Comprehensive Wealth Management, the road to financial self-reliance, revealing the wisdom of that old tune so many of us failed to heed, Little Things Mean a Lot.

Donald Martin Reynolds, PhD, art historian and the author of numerous books, articles, and reviews on American art and architecture

I have known John Vento for more than 30 years. When it came time to decide who to entrust my private accounting practice clients, I did not have to think twice. John, to me, is a perfect example of success story. His professional and teaching experience enabled him to make complex issues understandable.

Vladimir Slizinov, CPA, President, Savara Group

Cover Design: Paul McCarthy

Cover Images: both Istockphoto, jodiecoston / scanrail

Copyright 2013 by John Vento. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

As of the time of writing, John J. Vento is an advisor with H.D. Vest. The views and opinions presented in this book are those of John J. Vento and not of H.D. Vest Financial Services or its subsidiaries. All investment-related information in this book is for informational purposes only and does not constitute a solicitation or offer to sell securities or insurance services. Securities offered through H.D. Vest Investment ServicesSM, Member: SIPC, Advisory Services offered through H.D. Vest Advisory Services SM, 6333 North State Highway 161, Fourth Floor, Irving, TX 75038, 972-870-6000. Investments & Insurance Products: Are not insured by the FDIC or any federal government agency; Are not deposits of or guaranteed by the bank or any bank affiliate; May lose Value. Comprehensive Wealth Management, Ltd. is not a registered broker/dealer or independent investment advisory firm

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Library of Congress Cataloging-in-Publication Data:

Vento, John.

Financial independence (getting to point X ): an advisors guide to comprehensive wealth management / John Vento.

p. cm.

Includes index.

ISBN 978-1-118-46021-4 (cloth); ISBN 978-1-118-52636-1 (ebk)

ISBN 978-1-118-52643-9 (ebk); ISBN 978-1-118-52638-5 (ebk)

1. Finance, PersonalUnited States. I. Title.

HG179.V457 2013

332.02400973dc23

2012039488

This book is dedicated to the memory of my parents, Rosario Vento and Concetta Giuffre Vento, for the sacrifices and commitments they made throughout their lives to provide their children with the opportunity to live the TRUE American Dream.

Momma and Poppa, I love you, miss you, and think about you every single day!

Financial Independence

To achieve financial independence, one must know the difference between invested assets, personal use assets, and liabilities, as well as the difference between needs and wants. Wealthy people focus on accumulating investment assets, while the middle class and the poor focus on increasing their standard of living based on their cash inflow. The wealthy understand that the more investment assets may grow, the greater cash inflow from these investment assets may be. The greater cash inflow from these investment assets, the more investment assets may continue to grow. If you are able to accumulate sufficient investment assets to maintain your desired standard of living, your money will be working for you, instead of you working for your money.

This is point X : financial independence.

Investments are subject to market risks, including the potential loss of principal invested.

Preface

My first clients were quintessential examples of successful American Dreamers. They came to the United States from Italy after World War II with nothing, and they created a wonderful life for themselves and their children by working hard, living modestly, and saving. I confess I learned more from their example than from any college course or studies to gain my licenses. As you might guess, these clients were my parents.

Rosario Vento, my father, was born in the small town of Messina, Sicily, in 1923, and my mother, Concetta Giuffre Vento, born in 1921, came from an even smaller village nearby called SantAgata. They lived through the Great Depression (which was as bad in Europe as it was in the United States), survived World War II by seeking shelter in the hills of Sicily, and were married shortly after the wars end. It was clear that opportunities in Sicily and throughout Italy were limited as a result of the devastation of war, so they made the difficult decision to place their hopes and dreams on a new life in America.