Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next
Author: InvestorLou55 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19219  
Subject: Re: Establishing a Ladder Date: 10/23/2001 10:20 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi Intercst,

I wonder if you happened to see The Wall St. Journal the other day, they had a supplement concerning funding for retirement?

The article concerning the 5 bucket approach caught my attention.......it went like this
1. keep an amount equal to 4 yrs. of expenses in cash/bonds, the rest in stocks.

2. in the 1st bucket, put in 1 yrs. of expenses into a money market fund
3. in the 2nd bucket, put 20% in short term securities<up to 2 yrs. maturities>
3. in the 3rd bucket, put 50% in intermediate term securities<3-10 yrs. mat.>
4. in the 4th bucket, put 30% in long term securities<10-30 yrs. mat.>
5. in the 5th bucket, put balance of portfolio into stocks.

Said in the article that formula would have to be rejiggered each yr. to account for the cash thrown off by bonds,corporates, treasuries, etc.

I thought the article was interesting enough to look at my own portfolio, and find out that I have too much in the MMA....but I thought I would find out what other retired folks thought about the 5 bucket approach, apparently this has been around for awhile.

Your opinion ?

Thanks,
Lou
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (16) | Ignore Thread Prev | Next

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement