16100 Swingley Ridge Road
The Bucket Approach to Investing
Defined Approach. Customized Strategy.
Our method for determining your needs helps us design a customized plan just for you.
We like to think of our approach to investing as filling your financial buckets. It's kind of like building a baseball team. You wouldn't build a team of only pitchers or only home run hitters, but a complete team of pitchers, catchers, power hitters and those who get on base more often. Just like a baseball team having different players with differing skills, you need to fill your financial buckets with different investments that serve different functions for your portfolio, some provide income, some less risk, others potential growth, etc.
The right mix of investments depends on your specific financial circumstances and future goals – it’s a customized portfolio tailored just for you – but we want to make sure all our clients are diversified to preserve their assets against too much risk. That’s why we break down your assets into three primary buckets or types of investments.
In the first bucket, you need investments that have low risk, so you can count on them to provide income for essential expenses. We like to think of this as "mailbox money", income that shows up regardless of market conditions.
In retirement, you’ll use these investments – such as Social Security, pensions, annuities, real estate – to pay for household, transportation, living, medical and health expenses.
Sometimes the first bucket may not meet all of a client's income needs. The second bucket contains investments that are highly liquid and provide supplemental income for things like entertainment, dining out, hobbies, travel, etc.
These portfolios are well-diversified and tactically managed asset allocation models based on a client's risk tolerance.
Without some risk, your wealth may not grow – and with the average life expectancy continuing to rise, you’re likely to enjoy several decades of retirement life. Longevity and Legacy are the focus of the third and final bucket.
These portfolios are designed for long-term growth so you can enjoy the lifestyle you want in retirement and to pass on the legacy you want to leave. However, unlike most growth strategies, even our long-term growth strategies involve a degree of risk management.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. Past performance is no guarantee of future results. There can be no guarantee that strategies promoted will be successful and no guarantee of positive results. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.