What is the bucket strategy in retirement planning?


1.It is an investment approach that bifurcates your retirement corpus into three buckets.

2.These buckets are based on the time horizon for when the money will be required—immediate, medium-term and long-term.

3.Immediate bucket holds money in liquid assets, medium-term bucket in income assets, and long-term bucket monies in growth assets.

4.It helps with stand market fluctuations while managing withdrawals.

5.This strategy should be topped up with asset allocation and rebalancing strategies for optimisation

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.



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