Making Cents: Deploying the bucket strategy limerickleader.ie - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from limerickleader.ie Daily Mail and Mail on Sunday newspapers.
Even if you re an extremely engaged investor and that s true of many Morningstar.com readers it s important to have a backup plan in case something should happen to you. Will your spouse know where to go for cash to pay the bills? Have you tried to skinny down your portfolio to as few moving parts as possible, especially if you re in your later retirement years?
That s where the Bucket Strategy, especially one involving exchange-traded funds or index mutual funds, can come in handy. The linchpin of the Bucket Approach is one to two years worth of living expenses set aside in cash instruments. That way your household s near-term living expenses are covered regardless of what the market is doing.