The "Three Bucket Strategy" is a popular retirement income planning method. The first bucket covers immediate expenses in retirement. Listeners John and Donna are seeking advice on constructing their first bucket. With $1.6 million in assets and pension incomes, they aim to retire in 2026. James analyzes their needs, income sources, and portfolio and lays a foundation for their Bucket #1. It's crucial to bridge the gap between expenses and income, considering risk capacity and tolerance. Questions Answered: How do you divide assets into the three buckets, and what is the purpose of each?What role do risk capacity and risk tolerance play in determining portfolio allocation?Timestamps:0:00 - John and Donna3:36 - The bucket approach5:50 - Start with expenses8:53 - Non-portfolio income sources11:23 - Identify and bridge the gap13:06 - Assessing their portfolio14:53 - Portfolio dividend yield16:49 - Do you need Bucket 1?19:16 - What is the specific need?21:07 - Risk capacity23:22 - Test contingencies
Create Your Custom Strategy ⬇️
Get Started Here.)
