Retirement Read Time: 2 min

A Bucket Plan to Go with Your Bucket List

John and Mary are nearing retirement and they have a lot of items on their bucket list. Longer life expectancies 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.

1. 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.
2. 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.
3. 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.

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 FMG Suite.

 

Related Content

The Many Ways to Measure Inflation

The Many Ways to Measure Inflation

Different inflation indexes may tell different stories. Here's what that could mean for you.

Monthly Memberships

Monthly Memberships

A look as how autopay subscriptions can be a drain on your finances, especially when forgotten.

The Junk Drawer Approach to Investing

The Junk Drawer Approach to Investing

It's easy to let investments accumulate like old receipts in a junk drawer.

 

Have A Question About This Topic?







Thank you! Oops!

Retiring Wild: National Parks and You

Get ready to enjoy America’s national park system with this helpful article.

What If Your Kids Decide Against College?

Rising college costs prompt students to seek alternatives; 529 account funds can be used for other education options.

How to Appeal Your Property Taxes

For homeowners who think their property taxes are too high, there are ways to appeal.

View all articles

The Power of 401k Catch-Ups

See how catch-up contributions after age 50 could significantly boost your retirement balance.

What Is My Net Worth?

Get a snapshot of your overall financial picture by calculating your total net worth.

How Compound Interest Works

Explore how compound interest can grow your money over time with this interactive tool.

View all calculators

It May Be Time for a Financial Checkup

It’s never a bad time to speak with your financial professional about changes in your situation.

The Other Sure Thing

A new LIMRA study shows that 40% of Americans believe the death of a primary wage earner would cause financial challenges.

Extended Care: A Patchwork of Possibilities

What is your plan for health care during retirement?

View all videos