When people ask us about our Buckets strategy, they often find themselves a bit confused on their most liquid bucket – Bucket #1. The idea is to provide an income derived from sources with little to no volatility, shielded from the stock market’s ups and downs.
But what should go into that bucket? Do you really need to have 5, 6, or 7 years of, say, cash? Not necessarily – in fact, it may be a good idea to “bucketize” your Bucket 1 to try to “squeeze just a little extra juice from the orange.”
Charming metaphors aside, it is an important topic, which is why we’re talking about how to structure your Bucket 1 with podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!
