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Why Matching Investments With Spending Needs Matters
There are lots of ways to lose money with investing, but perhaps the most frequent is selling assets when you don't want to. Sometimes this is driven by fear, when economic conditions worsen or the market turns against us we naturally want safety. Sometimes we see a better opportunity or think we do, and want to make a change to take advantage of it even if the assets we own are down in value. Most often, we see this happen when there is a need for capital that we didn't properly plan for and we need cash even if we are selling at a loss to get it.
So how do you set yourself up for success so that you aren't selling assets when you don't want to? You have to design your account structure and strategy to match your dollars to when you will need them. In this episode of the Entrepreneur Aligned Podcast, we will cover an example of our baseline design which involves splitting personal liquid assets into three buckets:
1) Short-term needs and reserves: spending in the next 1 year
2) Mid-term needs and reserves: spending in the next 2-3 years
3) Long-term needs: spending more than 3 years in the future
-----
ABOUT JARROD
Jarrod was born into financial planning and solving financial problems. With his financial advisor father Steve telling stories about finance around the dinner table from an early age, the idea that everyone has a different financial situation was always there. After an early professional career spent in nonprofit and government, Jarrod came back to his roots helping people plan and invest in 2011. Since then, he has worked with individual clients, led internal teams and ultimately became partner and the CEO of Destiny Capital in 2017. With a passion for helping entrepreneurs change the world, Jarrod ultimately oversaw the creation of Entrepreneur Aligned in 2020. With both Destiny Capital and Entrepreneur Aligned, Jarrod leads teams that help people live lives of abundance where money is simply a tool to let everyone be a positive force for the world around them. When he isn't working with the talented teams for EA and DC you can find him chasing his twins, wily trout or a podium spot at an OCR race.
WANT TO LEARN MORE?
Subscribe to our Entrepreneur Aligned Podcast for new episodes posted every week OR click below to check out more new content from Entrepreneur Aligned.
Wealth Digest - weekly articles delivered to your inbox!
Subscribe to our YouTube channel
Connect on LinkedIn
Follow on Twitter
Follow on Instagram
Check out our Linktree
REACH OUT TO US!
If you have a question or simply want to talk through your financial planning, we are here to help.
SEND US A MESSAGE or call 720-715-7570
DISCLOSURE: Jarrod Musick is an officer of Destiny Capital and Entrepreneur Aligned, a DBA of Destiny Capital. All opinions expressed by Jarrod are solely his own opinions and do not reflect the opinion of Destiny Capital or Entrepreneur Aligned. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. We recommend consulting with your wealth advisor, CPA/tax advisor and/or attorney, as applicable to your situation, prior to implementing a new investment strategy.
View all episodes
By Entrepreneur Aligned
5
77 ratings
There are lots of ways to lose money with investing, but perhaps the most frequent is selling assets when you don't want to. Sometimes this is driven by fear, when economic conditions worsen or the market turns against us we naturally want safety. Sometimes we see a better opportunity or think we do, and want to make a change to take advantage of it even if the assets we own are down in value. Most often, we see this happen when there is a need for capital that we didn't properly plan for and we need cash even if we are selling at a loss to get it.
So how do you set yourself up for success so that you aren't selling assets when you don't want to? You have to design your account structure and strategy to match your dollars to when you will need them. In this episode of the Entrepreneur Aligned Podcast, we will cover an example of our baseline design which involves splitting personal liquid assets into three buckets:
1) Short-term needs and reserves: spending in the next 1 year
2) Mid-term needs and reserves: spending in the next 2-3 years
3) Long-term needs: spending more than 3 years in the future
-----
ABOUT JARROD
Jarrod was born into financial planning and solving financial problems. With his financial advisor father Steve telling stories about finance around the dinner table from an early age, the idea that everyone has a different financial situation was always there. After an early professional career spent in nonprofit and government, Jarrod came back to his roots helping people plan and invest in 2011. Since then, he has worked with individual clients, led internal teams and ultimately became partner and the CEO of Destiny Capital in 2017. With a passion for helping entrepreneurs change the world, Jarrod ultimately oversaw the creation of Entrepreneur Aligned in 2020. With both Destiny Capital and Entrepreneur Aligned, Jarrod leads teams that help people live lives of abundance where money is simply a tool to let everyone be a positive force for the world around them. When he isn't working with the talented teams for EA and DC you can find him chasing his twins, wily trout or a podium spot at an OCR race.
WANT TO LEARN MORE?
Subscribe to our Entrepreneur Aligned Podcast for new episodes posted every week OR click below to check out more new content from Entrepreneur Aligned.
Wealth Digest - weekly articles delivered to your inbox!
Subscribe to our YouTube channel
Connect on LinkedIn
Follow on Twitter
Follow on Instagram
Check out our Linktree
REACH OUT TO US!
If you have a question or simply want to talk through your financial planning, we are here to help.
SEND US A MESSAGE or call 720-715-7570
DISCLOSURE: Jarrod Musick is an officer of Destiny Capital and Entrepreneur Aligned, a DBA of Destiny Capital. All opinions expressed by Jarrod are solely his own opinions and do not reflect the opinion of Destiny Capital or Entrepreneur Aligned. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. We recommend consulting with your wealth advisor, CPA/tax advisor and/or attorney, as applicable to your situation, prior to implementing a new investment strategy.