Maximize Your Retirement Dollars With The 3-Bucket Strategy

00:00 Intro
01:18 3 Bucket Strategy
01:43 Cash Bucket
04:05 Income Bucket
06:13 Growth Bucket
07:43 3 Bucket Example

Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.

Thanks for watching, I appreciate you!

#3bucketstrategy #retirement

[ghostofmanitou]

Your content is great and not drowning in finance technical jargon. You are performing an excellent service for the YT community.

[Robby]

This 3-bucket thing is honestly the first time retirement planning has made sense to me. I’m 53, got some savings, but it’s scattered all over—401(k), some cash, a bit in Roth. I’ve been so afraid it’s not enough.

[radiokua]

We're not here for production quality, but thanks for doing the update! I love your down-to-earth approach--thanks for all your videos.

[jeffkinney]

I am 65 and retiring next month. Your video was super helpful in solidifying my plan to allocate all my investments into 3 buckets; near, mid and long term. Really looking forward to part two of your video on how to replenish the buckets. Keep them coming Erin!👍

[loganfromAZ]

Love you redoing some of the old videos. Nice to hear stuff again after a while. Thank you!

[neonmoon]

Thank you so much for doing videos like this! I was just layed off at 58 and was nervous I would not be able to retire. Met with my financial advisor and she said I am good to go. My wife will cover our benefits as she is still working.

[everceen]

I’d be retiring or working much less in 5 years, curious to know best how people split their pay, how much of it goes into savings, spendings or investments. I earn around $250k per year, but nothing to show for it yet.

[hm]

Anyone approaching retirement would be well-served to learn everything they possibly can about this topic, and this video is a great start!
Yes, there are other strategies like the 4% rule, but the 3 bucket approach provides a great learning foundation.

[jdgolf]

Great content. I use a 3 bucket strategy that is slightly modified. I have cash equal to three years expenses that aren't covered by guarenteed income. Once we start collecting SS, the amount in this bucket will be reduced. Bucket two is 100% dividend paying stocks & ETF's. The dividend total currently covers about 60% of current expenses, but once SS kicks in for me, in three years, they will cover 100% of our expenses not guarenteed. This bucket replenishes bucket 1, without pulling capital. Bucket three is simply growth, and will be used for large extras, like major home improvement, or medical expenses.

[charlotteboy]

My mom is approaching retirement age and asking me all these questions. I will definitely send her this video

[joethecomputerguy]

I don't consider anything you have done as "sub-par".
I manage my own retirement funds and planning. This is on target with what I am doing.

[jeremycargill]

absolutely will use this 3 bucket strategy- I have already started getting my buckets into place and I am 5-7 years from hopefully planned retirement

[juniorco]

1st time hearing about the 3 bucket strategy for retirement... Thank you Erin for presenting this in your ever charming, informative, and easily understandable way that you always do. I'll definitely be looking more into this!

[KTOMalley]

Great video, yes will be using the 3 bucket system. Thank you

[conureron]

Thanks for the explanation and the example. I’m doing a similar 3-bucket strategy, with income, cash, and growth buckets for retirement in a couple of years. I took a portion of my IRA’s and got an annuity. The annuity, coupled with social security, should cover the bulk of my expenses. I just need to account for inflation over time and the growth bucket should handle that. I’m currently filling the cash bucket with 5 years of “gap” expenses + emergency funds.

[papabear]

Quite useful information. 2nd part of this video will be even more helpful. Thanks!

[patrickchappell]

Good stuff - very helpful!! We're 55 - looking to retire at 60. This will work perfectly with what we're planning! Thank you!

[hogroamer]

Erin, your video productions quality has certainly improved by leaps and bounds!

After 40+ years of financial planning, these analogies are too elementary for me, but I get the value to others less involved in their finances. My risk tolerance and situation put me in a much more aggressive posture. If things got messy, I always have the option of beginning Social Security, which would cover all expenses, but I prefer to wait a few years, at minimum. Taking into account the outlook, I only have 6 months' expenses in the now bucket. The other 98% is in index funds and equities, the only other "bucket" I need. I encourage people to research all these financial guidelines but modify them to fit your situation and maximize your returns.

[richard_]

Thank you so much Erin. Having an income bucket of up to 7 years sounds a long time, especially if markets generally recover in a couple years after a crash so potentially you could be losing out on growth. I guess we're protecting those years and tailoring is key as you say. This is excellent content and can't wait for part2!

[darylhaack]

Thanks for posting Erin. Very interesting idea. Keep up the informative videos.
Cheers