The Three-Bucket Strategy: A Smarter Way to Manage Retirement Withdrawals

What is it

The Bucket Strategy shapes your portfolio as you prepare for retirement withdrawals—combining the right asset allocation with income generation so your short-term needs are always covered, while long-term money stays invested for growth.

Why it works

• Your near-term expenses live in safer, less volatile investments (cash, money market, bonds, treasuries) — protecting what you need soon.
• The stock market has been positive 93% of the time over any 5-year period dating back to 1950.* The more time you give stocks to grow, the better the expected outcome.
• The bucket approach solves the hard part: funding the 0-5 year window without being forced to sell stocks at the wrong time.

The Three Buckets

Real-world example | $2M portfolio

This portfolio generates $63,900 of income per year — exceeding the $60,000 needed — while keeping 79% invested in equities for long-term growth. Short-term needs are fully funded without touching stocks.

Who benefits most

After retiring from P&G and executing the NUA distribution with the preferred shares, effective retirement and wealth planning is not just about how much income your generate—it is about where the income comes from. Strategic coordination between taxable accounts, retirement accounts, and ROth conversion opportunities can potentially:

• Retirees within 1-5 years of retirement who are starting to tihink about withdrawal planning.
• Anyone already in retirement drawing from their portfolio each year.
• Investors who experiences anxiety during market downturns and want a plan with structure and confidence.