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Explorer ○

Bucket construction???

I've read several articles on the "Bucket" investing idea.  It seems like a good idea to me.  I have not seen too many articles on the actual mechanics of constructing it.  After deciding how much and what you will invest in each bucket do those of you using this approach open 3 separate accounts?  Or do you maintain one account and then invest in your fund choices rebalancing periodically??   Thanks for any info  

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Follower ○○○

Re: Bucket construction???

You need to read the articles by Christine Benz here: https://www.morningstar.com/model-portfolios/savers

She has developed bucket portfolios for both retirees and savers.  The portfolios may be invested in various fund families or individual fund families such as Vanguard, Fidelity, etc.

I think that you'll find all of your questions answered at the link above.

Best of Luck! - Mel 

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Explorer ○

Re: Bucket construction???

Thanks for the link!  

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Participant ○○○

Re: Bucket construction???

We like to keep it simple. 3 buckets: 40% stocks. 55% bonds, 5% cash. 

We take our monthly withdrawals from cash all year. And rebalance once per year by selling stocks or bonds depending on market performance.

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Frequent Contributor

Re: Bucket construction???


@Dano257 wrote:

I've read several articles on the "Bucket" investing idea.  It seems like a good idea to me.  I have not seen too many articles on the actual mechanics of constructing it.  After deciding how much and what you will invest in each bucket do those of you using this approach open 3 separate accounts?  Or do you maintain one account and then invest in your fund choices rebalancing periodically??   Thanks for any info  


No, you do not need three accounts. You do it more as portfolio construction. You have your short term, cash, or next to cash then shorter term invested reserves and then longer term investments. The time periods usually differ with age and ones risk tolerance.

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