John and Mary are nearing retirement and they have a lot of items on their bucket list. Longer life expectancies mean John and Mary may need to prepare for two, or even three decades, of retirement. How should they position their money?1
One approach is to segment your expenses into three buckets:
- Basic Living Expenses – food, rent, utilities, etc.
- Discretionary Spending – vacations, dining out, etc.
- Legacy Assets – for heirs and charities
Next, pair appropriate investments to each bucket. For instance, Social Security might be assigned to the Basic Living Expenses bucket.2
For the Discretionary Spending bucket, you might consider investments that pay a steady dividend and also offer the potential for growth.3
Finally, list the Legacy Assets you expect to pass on to your heirs and charities.
A bucket plan can help you be better prepared for a comfortable retirement.
Call today and we can develop a strategy that may help you put enough money in your buckets to complete all the items on your bucket list.
Make an appointment with one of our financial advisors today!
1John and Mary are a hypothetical couple used for illustrative purposes only. Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline. 2Social Security benefits may play a more limited role in the future and some financial professionals recommend creating a retirement income strategy that excludes Social Security payments. 3A company’s Board of Directors can stop, decrease or increase the dividend payout at any time. Investments offering a higher dividend may involve a higher degree of risk. Keep in mind that the return and principal value of stock prices will fluctuate as market conditions change. Shares, when sold, may be worth more or less than their original cost.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2023FMG Suite.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. SCE FCU Credit Union and SCE FCU Wealth Management Group are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using SCE FCU Wealth Management Group, and may also be employees of SCE FCU Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, SCE FCU Credit Union or SCE FCU Wealth Management Group. Securities and insurance offered through LPL or its affiliates are:
No son garantizados por la Credit Union
No son obligaciones o depósitos de la Credit Union
Pueden perder valor
Oficina de la sucursal de LPL: 12701 Schabarum Ave, Irwindale CA 91706