The Bucket Strategy - a practical approach to retirement income.
Planning and managing retirement assets include ensuring sufficient cash flow to maintain one’s preferred lifestyle when no longer drawing a paycheck. Investment advisors commonly suggest The Bucket Strategy to clients – separating assets into three discrete “buckets” for the near term, medium term and the long term. Each bucket takes into account the client’s current assets, risk tolerance and time horizons. The near term typically limits one to two year asset allocations to cash equivalents, Treasuries, money market instruments and commercial paper. The medium term is normally associated with replenishment of declining short-term assets, and a time span ranging from 2 to 15 years. The long term allocates assets toward appreciation, typically dividend yielding equities.
The Bucket Strategy was introduced last year at the Anthem Financial Club’s seminar series on choosing an advisor. Our speaker for the February 13 club meeting, Daniel Clark, will discuss his approach to this time proven method for retirement planning.
Daniel Clark is a Certified Financial Planner with Ameriprise Financial here in Henderson where he has been practicing investment advisory for over 10 years. Daniel is married and a graduate of Bluefield College in Virginia.