Curious, I’d be retiring/working much less in 5 years and want to know best how people split their pay, how much of it goes into savings, spendings or investments? I earn around $150k per year, but nothing significant to show for it yet.
@@Castro-worldbravestTrue, I'm quite lucky exposed to personal finance at an early age, started full time job 19, purchased first home 28, got laid-off work 36 during covid-outbreak, and at once consulted a reputable advisor in order to stay afloat. As of today, I'm only 25% short of my first $1m after subsequent investments.
@@M.Morgan bravo! could you be kind enough with info of your adviser please? i am 34, inherited money from a childless relative, traveled overseas and got married afterwards, only issue is how to preserve and grow my wealth in this shaky economy
Can't reveal much, the advisor that guides me is 'Katherine Nance Dietz' a renowned figure in wealth management with over two decades of experience, luckily her profile is widely visible on the internet, simply research.
@@M.Morgan thank you for putting this out, curiously copied and pasted her full name on my browser, spotted her site immediately, and was able to send my message across, she seems impeccable..
The problem with the bucket strategy is that it is essentially a market timing strategy. Why? Because you have to decide when to refill the buckets. To me it makes more sense to have a model portfolio that includes some percentage of cash, say 3-5%. Every six months or one a year you rebalance back to the model and you draw down the allocated cash. The cash allocation needs to be enough to live on until the next rebalancing plus an emergency fund and no more. That keeps the most money at work and doesn't require an attempt to time the market. It also doesn't require you to decide whether to draw down stocks or bonds. Which ever you draw from, you immediately rebalance back to the model. Rob Berger does a fantastic job of explaining this. High recommend his channel.
I don’t see a problem aggressively invested into equities as long as you have enough cash to live on for 5 years. Let’s not even talk about bonds, very bad investment, you can’t sell them to buy cheep equities without loosing money, unfortunately most of you financial people have your clients invested in them right now, jm$0.02,
Curious, I’d be retiring/working much less in 5 years and want to know best how people split their pay, how much of it goes into savings, spendings or investments? I earn around $150k per year, but nothing significant to show for it yet.
you should consider financial planning, never can tell what the future holds
@@Castro-worldbravestTrue, I'm quite lucky exposed to personal finance at an early age, started full time job 19, purchased first home 28, got laid-off work 36 during covid-outbreak, and at once consulted a reputable advisor in order to stay afloat. As of today, I'm only 25% short of my first $1m after subsequent investments.
@@M.Morgan bravo! could you be kind enough with info of your adviser please? i am 34, inherited money from a childless relative, traveled overseas and got married afterwards, only issue is how to preserve and grow my wealth in this shaky economy
Can't reveal much, the advisor that guides me is 'Katherine Nance Dietz' a renowned figure in wealth management with over two decades of experience, luckily her profile is widely visible on the internet, simply research.
@@M.Morgan thank you for putting this out, curiously copied and pasted her full name on my browser, spotted her site immediately, and was able to send my message across, she seems impeccable..
I like the bucket strategy. Should good dividend etf like VHYL go into bucket 2 or 3 ?
From strickley a tax standpoint are div. more favorable in taxable account than t bills interest?Also is there a state tax advantage for t bills?
T-Bills and US Savings Bonds are State-Tax EXEMPT.
@@geraldf.1222 TY.
@4 minutes, what's aggressive though? Tech?
The problem with the bucket strategy is that it is essentially a market timing strategy. Why? Because you have to decide when to refill the buckets. To me it makes more sense to have a model portfolio that includes some percentage of cash, say 3-5%. Every six months or one a year you rebalance back to the model and you draw down the allocated cash. The cash allocation needs to be enough to live on until the next rebalancing plus an emergency fund and no more. That keeps the most money at work and doesn't require an attempt to time the market. It also doesn't require you to decide whether to draw down stocks or bonds. Which ever you draw from, you immediately rebalance back to the model. Rob Berger does a fantastic job of explaining this. High recommend his channel.
Oh.... the anti-dividend guy.
@@chessdad182 Who me? Why, yes, I am.
Or maybe you meant, Rob. He is too. 🙂
Totally agree, and most over paid financial people only recommend cash for 2 to 3 years for the market to recover, ouch, sleepless nights
I feel 10% of you portfolio can be dividend paying if in bucket 2,
Common…, bucket 3 should be growth equities!, tesla for example.
I guess in chevron encino
But, as of Aug 2023, safe assets are yielding 5%+. This has me hedging towards more in safe assets, more than 2 years worth.
I don’t see a problem aggressively invested into equities as long as you have enough cash to live on for 5 years. Let’s not even talk about bonds, very bad investment, you can’t sell them to buy cheep equities without loosing money, unfortunately most of you financial people have your clients invested in them right now, jm$0.02,
Your bucket 1 indicates only enough cash for to years betting on the market turnaround within 2 years, not good, poor assumption and market timing.