Bucket Strategy: Can you have too many buckets in retirement?

Learn about the new augmented bucket strategy for retirement planning proposed by Morningstar's Christine Benz, and discover the drawbacks of the classic 3-bucket strategy. Join us as we delve into the pros and cons of adding more buckets to your retirement planning, backed by insights from financial experts like Michael Kitces and Javier Estrada. Find out if simplicity in investment strategies often leads to better performance.

*Chapters:*
00:00 Introduction
01:35 Criticisms of Basic 3-Bucket Strategy
03:34 Morningstar’s New Augmented Bucket Model
05:15 Five Issues with the Augmented Bucket Model
08:35 Two key takeaways

*Related Videos:*

*Other Videos:*

*References:*
- Christine Benz & Susan Dziubinski 2024 (Morningstar) - Do You Need More Than 3 Buckets?

#Retirement #RetirementPlanning #RetirementIncome #SequenceRisk #SequenceOfReturns #SequenceOfReturnsRisk #BucketStrategy #Morningstar

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*Disclaimer:* I am not a financial advisor. Investing involves risk and you may lose some or all of your original investment. These videos merely represent my personal opinion and are for educational purposes only. They *should not* be taken as legal advice, financial advice or investment advice. Please consult a professional financial advisor for your specific needs.

[danielbeauchemin]

Totally agree with the simpler 2-bucket strategy. I think that by having a larger number of uncorrelated ETFs you can even get around with less than 6 years in the cash bucket. Good work!

[rickspong]

Great video sir. It seems these experts (i.e. Morningstar) need to complex things to persuade people in to feeling they need to hire a financial advisor.