The Bucket Strategy®

Economic uncertainty has always affected the markets, but the magnitude of these repercussions has increased dramatically over the course of our lifetimes. While there is no crystal ball to guide investors through this muddled maze, clients can benefit from creating an investment strategy that seeks to protect their savings from multiple risks and economic scenarios. Our philosophy places the focus on developing customized strategic financial plans for the client’s current financial situation and goals.

The Bucket Strategy® is a risk-managed strategy designed to increase the likelihood of dependable retirement income and security. This strategy seeks to reduce the risk of losses due to volatility by ensuring that the value of our clients’ savings is not outpaced by inflation and they do not outlive their nest eggs. At the strategy’s core is the concept of matching assets to liabilities. Short-term liabilities or income needs are matched against short-term fixed income assets. Longer term liabilities or income needed later in retirement are matched against long-term growth focused investments.

A properly designed Bucket Strategy® uses safe, stable and sometimes guaranteed investments to draw income, when needed, in order to allow time for more risky investments in the portfolio to potentially grow. When implementing investment solutions, we recommend that our clients avoid taking any more risk than their Bucket Strategy® suggests is appropriate.

Bucket #1 – Income Bucket


Lifetime Income – Bucket #1a
Bucket #1a potentially provides investors a lifetime stream of income and is generally suitable for conservative
investors who believe they have a long life expectancy.

Fixed Income – Bucket #1b
Bucket #1b is designed to spend down over 5 to 7 years thus “buying time” for Bucket 2 the potential to grow.

Bucket #2 – Relative Safety


Relative Safety
Bucket #2 is your bridge between your Income Bucket (Bucket #1) and Growth Bucket (Bucket #3). Bucket #2 is designed to replenish the Fixed Income Bucket (Bucket #1b) resulting in additional time for your long-term investments to potentially grow.

Bucket #3 – Growth Bucket


Growth & Income – Bucket #3a
Bucket #3a is designed to provide both Growth & Income for the portfolio over the long-term. Income generated from this Bucket may be used to supplement income required from Bucket #1

Long-Term Growth – Bucket #3b
Bucket #3b is designed for 15 to 25 years of growth. Since your other Buckets have provided time, this bucket can potentially grow untouched for near term income needs.

Diversification may help reduce, but cannot eliminate, risk of investment losses. Historical performance relative to risk and return points to, but does not guarantee, the same relationship for future performance. There is no assurance that by assuming more risk, you are guaranteed to achieve better results. There is no guarantee that the Bucket Strategy® will meet its stated objectives.

Please contact your financial advisor to receive a prospectus, which includes information on charges, expenses, and other important facts. Investors should consider their investment objectives and risks, along with an offering’s charges and expenses before investing. Please read the prospectus carefully before investing or sending money.