Understanding the 3-bucket approach for retirement
The three-bucket method organizes your retirement savings by categorizing funds according to your expected timeline for spending. The initial bucket is reserved for immediate costs and must remain highly liquid. The second bucket holds assets required within the next 5 to 10 years, providing an opportunity for growth. Finally, the third bucket is designated for funds that will not be touched for a decade or longer, offering the benefit of a more extended investment period.
by shortkt.com✓