Thank you for this explanation. I still struggle to see the advantage of a bucket strategy over a simple balanced portfolio and rebalancing. For example, 60% stocks and 40% fixed income (bonds, cash, GICs). If stocks have a good year, sell stocks to fund spending needs. If stocks are down, dip into the fixed income. If further rebalancing is needed, bring the portfolio back to the 60 / 40 allocation and repeat the following year. Isn't it essentially the same system?
Thank you, well done.
Great strategy, thanks!
Thank you for this explanation. I still struggle to see the advantage of a bucket strategy over a simple balanced portfolio and rebalancing. For example, 60% stocks and 40% fixed income (bonds, cash, GICs). If stocks have a good year, sell stocks to fund spending needs. If stocks are down, dip into the fixed income. If further rebalancing is needed, bring the portfolio back to the 60 / 40 allocation and repeat the following year. Isn't it essentially the same system?
@martymendes1 - In fact your setup ensures you are not paying charges for transferring funds so it is even better.
Bro, that hair is getting super high.