A Bucket Plan to Go with Your Bucket List
Longer, healthier living can put greater stress on retirement assets; the bucket approach may be one answer.
Retirement Read Time: 2 min
John and Mary are nearing retirement and they have a lot of items on their bucket list. Longer life expediencies mean John and Mary may need to prepare for two or even three decades of retirement. How should they position their money?1
One approach is to segment your expenses into three buckets:
Basic Living Expenses— Food, Rent, Utilities, etc.
Discretionary Spending — Vacations, Dining Out, etc.
Legacy Assets — for heirs and charities
Next, pair appropriate investments to each bucket. For instance, Social Security might be assigned to the Basic Living Expenses bucket.2
For the discretionary spending bucket, you might consider investments that pay a steady dividend and that also offer the potential for growth.3
Finally, list the Legacy assets that you expect to pass on to your heirs and charities.
A bucket plan can help you be better prepared for a comfortable retirement.
Call today and we can develop a strategy that may help you put enough money in your buckets to complete all the items on your bucket list.
John and Mary are a hypothetical couple used for illustrative purposes only. Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
Social Security benefits may play a more limited role in the future and some financial professional recommend creating a retirement income strategy that excludes Social Security payments.
A company’s board of directors can stop, decrease or increase the dividend payout at any time. Investments offering a higher dividend may involve a higher degree of risk. Keep in mind that the return and principal value of stock prices will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.
*DISCLAIMER: The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.
Briarwood Financial Planning LLC (Briarwood) is a registered investment advisor offering advisory services in the State of Washington and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training.
The information on this site is not intended as tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This information should not be relied upon as the sole factor in an investment-making decision.
Past performance is no indication of future results. Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. It should not be assumed that any recommendations made will be profitable or equal any performance noted on this site.
The information on this site is provided “AS IS” and without warranties of any kind either express or implied. To the fullest extent permissible pursuant to applicable laws Briarwood Financial Planning LLC disclaims all warranties, express or implied, including, but not limited to, implied warranties of merchantability, non-infringement, and suitability for a particular purpose.
Briarwood does not warrant that the information on this site will be free from error. Your use of the information is at your sole risk. Under no circumstances shall Briarwood be liable for any direct, indirect, special, or consequential damages that result from the use of, or the inability to use, the information provided on this site, even if Briarwood or a Briarwood authorized representative has been advised of the possibility of such damages. Information contained on this site should not be considered a solicitation to buy, an offer to sell, or a recommendation of any security in any jurisdiction where such offer, solicitation, or recommendation would be unlawful or unauthorized.