Use the 3-Bucket Strategy to Fund Your Retirement

Knowing how to implement the bucket strategy could help you grow and safeguard your retirement funds.

Diversifying and prioritizing different income streams can help stabilize your cash flow. New Africa/Shutterstock

You’ve worked hard to save and accumulate a retirement nest egg. Part of generating this income is safeguarding it from the volatility of the market, changing tax laws, and longer life expectancies. Using the bucket strategy will help secure your retirement.

But what is the bucket strategy? It’s a strategy that diversifies and prioritizes different income streams to stabilize your cash flow. Knowing how to implement it could help you grow and safeguard your retirement funds.

3-Bucket Strategy Splits Investments

The three-bucket strategy divides investments into these categories: short-term, intermediate-term, and long-term.