Christine Benz is one of my favorite Bogleheads. Her greatest strength is her ability to teach complicated subjects in an easy-to-understand and friendly way.
I really like the psychological aspect of the buckets as you described here, especially keeping it simple. The issues that I have heard from folks I respect is that the rules for how to backfill the buckets seem too complicated.
Keep 3-5 years of living expenses with cola in a money market fund or equivalent. Right now you are getting 4%. Then invest in dividend pay equities and reinvest the distributions, look at 6-10% yields mixed across different sectors. Use CEF, REITs and BDCs and value stocks.
Buckets are too complicated, I just keep 5 years of expenses in laddered GIC 1 year before retirement, then maintain 3 years of adhered GIC moving forward. Keep the rest in 80/20 portfolio balancing once/ twice a year. I want to keep things simple when I am retired.
Just rebalance your portfolio - gains go into a savings or money market account- losses just re-balance your allocation. My portfolio is 55/35 stocks to bonds 10 % in high interest money market funds (enough for five years of 4-5 percent withdrawals). Bucket method is entirely unnecessary
Christine Benz is one of my favorite Bogleheads. Her greatest strength is her ability to teach complicated subjects in an easy-to-understand and friendly way.
I really like the psychological aspect of the buckets as you described here, especially keeping it simple.
The issues that I have heard from folks I respect is that the rules for how to backfill the buckets seem too complicated.
Keep 3-5 years of living expenses with cola in a money market fund or equivalent. Right now you are getting 4%. Then invest in dividend pay equities and reinvest the distributions, look at 6-10% yields mixed across different sectors. Use CEF, REITs and BDCs and value stocks.
Excellent presentation and worthwhile
Do dividends can account for the first bucket?
Buckets are too complicated, I just keep 5 years of expenses in laddered GIC 1 year before retirement, then maintain 3 years of adhered GIC moving forward. Keep the rest in 80/20 portfolio balancing once/ twice a year. I want to keep things simple when I am retired.
Just rebalance your portfolio - gains go into a savings or money market account- losses just re-balance your allocation. My portfolio is 55/35 stocks to bonds 10 % in high interest money market funds (enough for five years of 4-5 percent withdrawals). Bucket method is entirely unnecessary
btc separates money from government. if you've benefited from the legacy system then you won't understand why it's so badly needed.