Financial Planner 43551

The Uses and Goals of Money – A Guest Post

In Articles, Income Planning, Investment Management, Retirement Thinking, Weekly Articles by Josh Rochon

Earlier this year, we had the opportunity to strengthen our Fourth Dimension team by adding Josh Rochon. Josh is a CERTIFIED FINANCIAL PLANNER™ and we thought it would be beneficial for Josh to make an appearance here in the Weekly. It will probably come as no surprise that Josh writes about the importance of a financial plan and we hope you enjoy his insight. Without further ado, please welcome the eternal optimist, Josh Rochon…

Recently, while meeting with two successful entrepreneurs I was asked a question that I’m often asked, “Josh, what should I do with my money?” I was a bit taken back because these two brothers are quite successful and have plenty of places to send their money. I was quickly reminded that what people are usually asking with this sort of question is if I have a hot stock tip for them.  Not wanting to sound dull or give an idea that didn’t measure up to their expectations, I thought for a moment, went back to my training and offered the following: “There are only five short-term uses for money and six long-term financial goals”.

Not getting what they expected to hear, they asked me to elaborate.  In general, when I walk people through the uses of money it quickly becomes evident that when they think about money from this perspective, investments (including the hot stocks) begin to play a diminishing role and financial planning starts to take priority. So, let’s look at the five short-term uses of money:

Short-Term Uses for Money:

  1. Service debt
  2. Pay your taxes
  3. Give charitably
  4. Consume it for lifestyle choices
  5. Build margin to save and invest

When you boil it down, you have five places you can tell your money to go.  Then as your savings build, you can begin to think about the six long-term goals for money as a subset of the saving category. Here are the six long-term Financial Goals:

  1. Financial independence
  2. Debt elimination
  3. Starting a business
  4. Family needs such as dependent care or education
  5. Lifestyle choices like a vacation home or travel
  6. Maximized giving (kids, grandkids, church, and/or charity)

I would argue the choices you make on using the money would far outweigh any gain a hot stock would bring.  As I walk clients through this thought exercise, investments begin to play a supporting role and planning takes over as the priority. That’s not to say that investing for the future isn’t needed, but starting in the right place is critical to long-term success.

I know that I’m preaching to the choir here a little bit. One of the reasons I was attracted to join Fourth Dimension Financial Group was that Adam and his team put a significant emphasis on planning. I hope that this serves as a reminder to you and when the market is volatile or you get concerned about the future, you can find comfort in your financial plan.

Thank you!
– Josh Rochon, CFP®

About 

Joshua Rochon, CFP®
Josh is a CERTIFIED FINANCIAL PLANNER™, partner at Fourth Dimension Financial Group, LLC, and is a member of the board of directors for Cherry Street Mission Ministries, and the Northwest Ohio Prayer Breakfast. Additionally, Josh has been a nominee and finalist twice for Toledo’s 20 under 40.

Josh began his career in financial services in 2005 at one of the largest banks on Wall Street. In 2011, Josh began studying for the CERTIFIED FINANCIAL PLANNER™ designation and became much more convicted about the quality of advice he was offering his clients. The CFP® curriculum encompasses six areas of personal finance: fundamentals, insurance, retirement, investments, taxes and estate planning. The result of this comprehensive education revealed to Josh that his role at the time was not allowing him to administer the full breadth of planning counsel to his clients that he felt was so badly needed. As a result, he transitioned to Fifth Third Private Bank as Vice President of Wealth Management, where he spent six years as his clients’ primary advisor, leading a team of specialists in the areas of investment management, trust and estate planning, banking, risk management, and wealth planning. Josh ultimately joined Fourth Dimension with the same spirit of offering comprehensive planning within a team of like-minded professionals, employing his ‘big-firm’ experience in a smaller, more intimate setting.

Josh holds a bachelors degree in finance from Liberty University in Lynchburg, VA and has earned his Series 7 and 66 licenses, as well as the Life and Health Insurance license. He served six years in the United States Air Force and had the honor of performing a tour of duty in Iraq.

Josh married his wife, Faye, in 2007, and they have two beautiful children, David and Catherine. Josh loves sports cars, as well as playing golf, and snowboarding.