How the 3 Bucket Strategy Applies in 2022
Today, Stacey Andres and Jag revisit the "Three Bucket Strategy" - investing your money for the short, medium, and long term - and looking at it through the lens of volatility we've seen so far in 2022.
As mentioned in the 7 Habits of Highly Effective People, you should begin with the end in mind. Think about how much money you're going to need to live in retirement. Then, what expenses will you have in the short and medium terms?
Be more conservative in the first, or short-term bucket. Market volatility like we've seen this year can wipe out that money without having sufficient time for it to recover.
The second, medium-term bucket can be more aggressive, but not too aggressive. Think about things like home-repairs, new vehicles, expenses that may be a few years out.
You can be most aggressive (and growth-focused) in the third, long-term bucket. That money has plenty of time to recover from market swings, and if planned well, can result in you having more money at the end of your retirement than in the beginning!
Stacey also briefly touches on a "two bucket strategy" - conservative and growth. When the market is volatile, pull from the conservative bucket. When the market is doing well, pull from the growth. Stacey and Jag explain why.
Want to know more, or have Stacey help you plan your financial future?
Visit our website: https://www.artofwealthunbroken.com/
Or give Stacey a call at 855-378-1806.