You are nearing retirement and you have a lot of items on your bucket list. Longer life expectancies mean you may need to prepare for two or even four decades of retirement. How should you position your money?
At Chatham Wealth, we employ a three bucket strategy to portfolio construction. This simple method segments your investments into three buckets that allow you to clearly meet short, intermediate and longer-term goals.
Bucket #1 Emergency - 6 to12 months of living expenses kept in the bank or cash equivalents.
Bucket #2 Income - This bucket is filled with income investments that provide you with needed income for your chosen lifestyle. We consider investments that pay a steady dividend or interest payments and that also offer the potential for growth.
Bucket #3 Legacy Assets - for heirs and charities. This bucket is filled with assets that are meant to produce higher returns over the long haul.
A bucket plan can help you be better prepared for a comfortable retirement. Together with understanding our client's tolerance for risk, we help our clients determine how their buckets should be managed.
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.