Building a paycheck from your portfolio, one bucket at a time
The bucket strategy gives retirees a way to draw income without panic-selling in a downturn.
By Margaret Ellison7 min read
Turning a nest egg into steady income is a different challenge from building it. The bucket strategy gives retirees a structured way to draw a paycheck without panic-selling in a downturn.
How the buckets work
- A near-term bucket of cash for the next year or two of spending.
- A middle bucket of bonds for stability over the medium term.
- A long-term bucket of stocks positioned for growth.
When markets fall, you spend from the cash bucket and give the growth bucket time to recover, rather than locking in losses at the worst possible moment.
About the author
Margaret Ellison
Senior Benefits Correspondent
Margaret writes about Social Security claiming strategy and retirement timing, translating dense federal rules into plain, actionable language for readers approaching retirement.
