Prosperity Capital Advisors

The Money Cycle

As a planning-first investment adviser, PCA believes that investors need to focus on creating and growing wealth through investing but, as they approach retirement, they also need to focus on preserving a portion of those investable assets. There are three phases to your financial life: accumulation, preservation, and distribution. Your money should be invested according to your market volatility tolerance and timeline to retirement. We refer to this as the Money Cycle. By preserving some of your accumulated assets as you approach retirement and allocating them to more conservative portfolio models or other financial vehicles uncorrelated to market risk, a large swing in the market in the early years of retirement won’t have as significant an impact on your income and lifestyle in retirement.

The Money Cycle Figure 1