What To Do with Excess Cash in a Business
Entrepreneurs have demands on their capital and reserve requirements that most others do not. Thinking about these in concert with personal needs and requirements requires a different approach.
In this week's episode of the Entrepreneur Aligned Podcast, Jarrod segments capital reserve requirements into the following categories. He goes over why each piece of capital is being held in reserve and provides helpful examples and strategies for each one.
Business
1. Business working capital needed within 90 days
2. Business reserve capital that could be needed in 90-180 days
3. Business reserves needed more than 180 days into the future
Personal
1. Personal cash needed within 180 days
2. Personal reserves that cover debt and expenses between 180-365 days
3. Known big ticket items needed one-to-three years in the future
The theme of cash and capital reserves for your business and family is to forecast what you will need and match the investments to that need. We do this work with our client families, so please reach out if we can help yours.
-----
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. Advisory services provided by Destiny Capital Corporation, a Registered Investment Adviser.