Are you in the Accumulation Phase?
There are three phases people pass through during their wealth journey. The first is The Accumulation Phase, where the focus is on financial growth. Nearing retirement, people's tolerance for riskier, more aggressive investments lowers and they transition into The Preservation Phase. Once someone retires, they pull from their financial assets in The Distribution Phase.
Are you a young professional? Have you inherited some money and are thinking about investing? Maybe you're an avid saver and want your money to grow rather than sit in savings? You're likely in The Accumulation Phase of your wealth journey.
You may find yourself earning enough money to invest, but don't know where to start. With so many different investment vehicles to choose from, each with their own costs, risks, and benefits, it can be daunting. On top of that, everyone's financial situation is unique. You have a different tolerance for risk than others may have. Typically, however, the younger you are, the higher tolerance you have for risky investments: ones involving higher return potential, but with higher chance of larger losses. When accumulating your wealth, you may be able to invest in riskier, more volatile vehicles such as stocks or mutual funds with higher return potential. Thus your wealth may grow faster, helping to ensure you are prepared for retirement.
Retirement may seem far far away, but investing early is extremely beneficial to your future. Due to things like compounding interest or tax deferral, investing early may give your money a chance to grow exponentially over time. Doing something as simple as making monthly contributions to a retirement account, even small contributions, 
can help you get a head start on your retirement savings.
Some problem you may encounter in this phase include:
Dealing with inflation
Rising interest rates or taxes
Current or past debt
Market fluctuations and more.
An advisor can give you strategies to mitigate financial hurdles such as these.
Elizabeth O'Donnell is a financial advisor in Denver, Colorado and cares about creating a financial plan that fits your lifestyle. Initial consultations with her are complimentary and can be done by phone or by a Zoom video meeting. This initial consultation is used to learn more about who you are, what your financial situation is, and whether our services are a match for you.
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Elizabeth O'Donnell | CFP® | MBA
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