●[ Methodology ]
Why We Use the Bucket Strategy
Imagine three retirees who all start retirement with the same amount of money. They experience the same average return of 7%, and over time, they even experience the same individual market returns. The only difference is when those returns happen.
Retiree #1
One retiree experiences strong markets early in retirement.
Retiree #2
Another experiences steady returns.
Retiree #3
The third runs into market losses almost immediately.
Before retirement, that order may not matter very much because the investor is still contributing and has time to recover.
Retirement changes the story.
Now the portfolio is being asked to do two jobs at once: provide income today and continue growing for tomorrow.
If a market decline happens early in retirement and you have to sell investments to fund your lifestyle, you are taking money out while the portfolio is already down. Those dollars are no longer invested when the market eventually recovers.
That is sequence of returns risk.
And as the example shows, two investors can have the same average return and end up with dramatically different outcomes simply because of the order in which those returns occurred.
That Is Why We Use BucketWise™
Instead of treating your retirement savings as one large pool of money, we organize your assets around when you will need them.
Bucket 1: The Grill
Grill What's Ready™
1–5 YEARS · LOW RISK • SHORT TERM
This is money you may need soon.The goal is accessibility and stability so your near-term lifestyle is not completely dependent on what the stock market happens to be
doing this year.
Income
Emergency
Cash Needs
Inflation Protection
Bucket 2: The Fridge
Chill What's Next™
6–10 YEARS · MEDIUM RISK • MID TERM
This money is for the next stage of retirement. Because you are not relying on it immediately, it can have
more opportunity to grow while helping replenish the Grill over time.
Withdrawals
Lifestyle Goals
Tax Protection
Inflation Protection
Bucket 3: The Freezer
Freeze the Future™
10+ Years · GROWTH • LONG TERM
This is money designed for the future. Because these dollars may not be needed for a decade or longer, they can remain focused on longer term growth instead of being sold simply because today’s market is uncomfortable.
Growth
Legacy
Estate
BucketWise™ does not attempt to predict the market.
It is designed to help you prepare for the market you cannot predict.
When markets decline, the goal is to have money available for current spending without automatically having to sell long term investments at depressed prices.
That gives the longer-term portions of the portfolio something extremely valuable: time.
- Time to remain invested.
- Time to participate in a recovery.
- Time to continue working toward the years ahead.
Because in retirement, it is not only how much your portfolio earns that matters.
It is when you need the money.
That is why, with BucketWise™, Every Dollar Has a Shelf Life™.
[ THE PROCESS ]
How it works with clients
01 · PLAN
Map your client’s income needs onto the timeline.
02 · ORGANIZE
Assign every dollar to its bucket — right money, right time, right purpose.
03 · MONITOR
Review the buckets together at every meeting — visually.
04 · ADJUST
Refill and rebalance buckets as life and markets change.