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Bucketing: A Time-Tested Drawdown Strategy for Peace of Mind

<p>Bucketing: A Time-Tested Drawdown Strategy for Peace of Mind</p>

Life can be as unpredictable as the markets. To mitigate the shocks that unforeseen personal expenses and economic fluctuations may bring, a well-rounded portfolio should address both short-term goals and expenses and long-term growth. The Bucket approach is one technique that can bring peace of mind today while still planning for tomorrow.

Key Takeaways:

  • This customizable framework allows for bucketing of assets to correspond with temporal goals. This allows greater ability to weather unexpected ups and downs in the market and in your personal life.
  • Benefits of the concept include reducing the risk of selling assets at a loss to fund immediate expenses and the flexibility of the framework.
  • Some potential downsides are the possibility for overly complex buckets with disparate asset allocations and potentially lower returns in the long run.
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The Key Wealth Institute is comprised of financial professionals representing KeyBank National Association (KeyBank) and certain affiliates, such as Key Investment Services LLC (KIS) and KeyCorp Insurance Agency USA Inc. (KIA).

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This material presented is for informational purposes only and is not intended to be an offer, recommendation, or solicitation to purchase or sell any security or product or to employ a specific investment or tax planning strategy.

KeyBank, nor its subsidiaries or affiliates, represent, warrant or guarantee that this material is accurate, complete or suitable for any purpose or any investor and it should not be used as a basis for investment or tax planning decisions. It is not to be relied upon or used in substitution for the exercise of independent judgment. It should not be construed as individual tax, legal or financial advice.

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