Fund Architecture
Why a family needs the three-horizon ladder
11 Sept 2026
Most family investing mistakes come from mixing long-term money with short-term money. The three-horizon ladder separates them and sets rules for how capital moves.
When markets crash, investors sell long-term assets because they need short-term cash. When markets boom, they pour their reserve into short-term bets. Both destroy compounding.
The ladder gives every unit of capital an 'address' and its own rulebook: Long-term cannot be withdrawn; Medium-term captures cycles with stops; Short-term holds liquidity and feeds the other two.
Six capital-flow rules — profit sweep, reserve refill, cycle harvest, capital-call reserve, cash-flow recycle and annual rebalance — turn the ladder into a self-operating system instead of an emotional one.
Related strategies
- → Family Reserve & Deposit LadderShort-term
- → Vietnam Quality CompoundersLong-term
- → Cyclical Sector RotationMedium-term