A bucket strategy divides your retirement savings into three “buckets” based on when you’ll need the money. Bucket 1 typically holds one to two years of expenses in cash, bucket 2 generally contains assets intended for three to 10 years in bonds and dividend stocks, and bucket 3 is generally allocated to longer-term growth assets around 10-plus years in growth equities. During down markets, you can refill bucket 1 from bucket 2 rather than selling equities at a loss. The benefit is psychological: Knowing your near-term cash is safe helps you stay invested and ride out volatility with confidence.
We exist so you don’t have to worry about money. For more than 40 years, we’ve taken the sophisticated, time-tested approach that many ultra-high net worth individuals use to help manage their financial lives and made it accessible to more families.
