Is anyone following the "Bucket Strategy" in your retirement ? If so, does it really work ?
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Many investors have either heard or read about the retirement income strategy that uses three buckets. Each bucket represents a pot of money with a time frame for its use. The first bucket is typically designated for years 1-5, the second for years 5-15, and the third bucket for 15+ years.
In theory, it sounds great and looks good on paper. However, in practice it can quickly become a jumbled mess, difficult to monitor and analyze because investors typically have more than one retirement account with varying balances that don’t easily match up with recommended amounts for each bucket. To further complicate things, they often have tax-deferred, taxable, and tax-free accounts they’re trying to manage within the process.
That’s not to say the Retirement Buckets strategy doesn’t work, it’s just that most investors don’t have any practical ways to bring the concept to life based on their unique situation.
Hi "Asswipe guy", You're the guy who calls everyone an asswipe. Isn't that a Beavis and Butthead term? I see they are creating threads in honor of you guys. You need to get together with "Butthurt" bob. and the "Deadwood" dude. You guys or girls can have an asswiping, butthurting, rotten deadwood love fest. I hope you bring some lotion or ointment for that. You may end up a bit "Chapped" - LOL!
No, asswipe. You are thinking of a jock strap, not a bucket.
Oh I thought the bucket strategy was to place your nuts in a bucket to carry them around!
here is some info:
http://online.wsj.com/ad/article/manageinvestments-bucket
http://www.investopedia.com/articles/financial-advisors/060815/comparison-bucket-strategy-vs-systematic-withdrawals.asp
http://news.morningstar.com/articlenet/article.aspx?id=640557
It is allocating your assets into various buckets ranging from no risk (cash) to high risk/reward (Stocks). Then you reallocate based on different scenarios. That is as much as I know about it
What is it?
Yes it works. You just can't take more than 4% of portfolio per year and your allocated properly. 1-2 years of cash or cds earning nothing to break up market risk.