Episode Details

The "Three Bucket Strategy" is a popular retirement income planning method. The first bucket covers immediate expenses in retirement. Listeners John and Donna are seeking advice on constructing their first bucket. With $1.6 million in assets and pension incomes, they aim to retire in 2026. 

James analyzes their needs, income sources, and portfolio and lays a foundation for their Bucket #1. It's crucial to bridge the gap between expenses and income, considering risk capacity and tolerance. 

Questions Answered: 
How do you divide assets into the three buckets, and what is the purpose of each?
What role do risk capacity and risk tolerance play in determining portfolio allocation?

Timestamps:
0:00 - John and Donna
3:36 - The bucket approach
5:50 - Start with expenses
8:53 - Non-portfolio income sources
11:23 - Identify and bridge the gap
13:06 - Assessing their portfolio
14:53 - Portfolio dividend yield
16:49 - Do you need Bucket 1?
19:16 - What is the specific need?
21:07 - Risk capacity
23:22 - Test contingencies

Create Your Custom Strategy ⬇️

Get Started Here.

Join the new Root Collective HERE!