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As of a few months ago and into 2017 you were gung ho about using a bucket allocation approach and posted it quite a bit. This year, flip flop.
i have never used buckets in retirement . i stated over over and over i use the income model which has about 7-10 years of money and the growth and income model .
they DO NOT function like a bucket system at all .
i rebalance the income model to it's specific allocations and create the years cash . that is not how a bucket system works . a bucket system is not rebalanced based on allocation percentages it is rebalanced by years of money and they do not use portfolio's with equities as bucket 1 , in fact they are individual buckets with single specific asset classes not total portfolio's .
Last edited by mathjak107; 03-21-2018 at 11:21 AM..
now many many years ago when ray lucia wrote his book i was in favor of bucket systems based on the books info . which as we know was false and he was penalized for that heavily .
however since that time lots of research on buckets was done by kitces and yes getting that education turned me off to them . but that was many years ago when i liked ray's ideas .
it does not mean buckets are a bad idea . i still think it is a good idea for many . it is very comforting mentally . they just lack a financial benefit as we were led to believe .
You should not walk outside. A chunk of ice might fall off the wing of a plane and kill you.
Could it happen? Who knows, but it could, and you have to be prepared for that......
What's important is that people have a prudent plan they are comfortable with Obviously, financial plans are going to differ. We are fortunate that for the most part, our accumulation phase is over and have enough assets that we don't have to take on a lot of risk post-retirement.
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and before you start arguing a straw man of they're not the best, financially, that's not the argument being made. You have used them, you refer to them as buckets, and what you decide to put in each bucket is an individual choice.
in your quest to prove me wrong as you always try to do there is nothing there i said that is not what i still say .
we all use some form of buckets . i use a cash bucket with a years cash and i have two different two different portfolio's for 2 different time frames which you can call buckets .
but if you understand how a BUCKET SYSTEM WITHDRAWAL SYSTEM works you clearly would see that the method i use is not a bucket system withdrawal method . .
compartmentalizing things does not mean it operates as a bucket system in the sense of how that withdrawal method works .
a bucket system is refilled by years in money , not by keeping a strict allocation to the percentages required in the portfolio or performance.
we all have bonds , cash ,equities , etc , those are buckets . but we all don't use a bucket strategy withdrawal method.
just think of a standard 60/40 mix . you have your stock buckets , your bond buckets ,maybe commodities or real estate , etc .
but when money is taken out the 60/40 mix is preserved . it is rebalanced and never changes .
a bucket system spends down bucket one , then over time refills from bucket 2 , then finally refills from stocks years later , the allocation does not remain fixed year to year . equities grow as cash and bonds are spent .
that is what is meant when you talk about using a bucket system . not just compartmentalizing things in to buckets that hold the portfolio
Last edited by mathjak107; 03-21-2018 at 12:55 PM..
prediction: look out for a Major rally tomorrow! The FOMC meeting is done, looks like investors have got their stable path forward. Time to rock and roll again.
prediction: look out for a Major rally tomorrow! The FOMC meeting is done, looks like investors have got their stable path forward. Time to rock and roll again.
I hope that you're right. But we can never forget, that predictions are like opinions, which in turn - to paraphrase the epigram - are like certain anatomical features of a private nature, which each of us possesses.
The irrationality of the market is such, that one may be entirely right in assessment of economic conditions, of growth in corporate profits and so forth, and yet, be spectacularly wrong in predicting where the market will go. Unless, of course, we rely on prescient insights from over in the "technical analysis" thread.
prediction: look out for a Major rally tomorrow! The FOMC meeting is done, looks like investors have got their stable path forward. Time to rock and roll again.
Don't forget about Trump. Rumors are he is about to fire another round trying to start a trade war.
prediction: look out for a Major rally tomorrow! The FOMC meeting is done, looks like investors have got their stable path forward. Time to rock and roll again.
Tomorrow when the tariffs are announced? IDK about that.
prediction: look out for a Major rally tomorrow! The FOMC meeting is done, looks like investors have got their stable path forward. Time to rock and roll again.
not from the way things look this morning .
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