To model a bucket strategy in our planner, you can segregate assets by time periods - typically 3 years in cash, 7 years in fixed income, and the remainder in equities.
Use the Customized Withdrawal Order feature to control which accounts are accessed first, allowing you to protect specific assets until later in your plan.
You can also utilize the future rate change feature to reflect shifting from higher-risk investments early on to more conservative allocations as you age, which aligns perfectly with bucket strategy principles.
Check out our blog article on bucket strategies for more detailed guidance.
Example
A Bucket Strategy may be used to segregate assets based upon time periods. In this model, the user has a portfolio of $1,000,000 and is counting on covering annual expenses of $40,000 from their portfolio.
They use the Bucket Strategy to protect 3 years of savings in Cash, hold 7 years in fixed income, and the remainder in equities.
