How Should I Invest Bucket #1 of my Retirement Portfolio (3 Bucket Strategy)

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!