How to Set Up Bucket One- Season 7: Episode 5
The basic idea of a Buckets strategy involves taking portfolio distributions from a non-volatile source: what we call Bucket #1. You never want to be in a position where you have to sell volatile assets (like stocks) to fund your short-term monthly expenses. But does this mean that you need to have several years’ worth of cash sitting around to make sure it’s there when you need it? The short answer is no – you just need to “bucketize” the bucket. But how do you do that? It’s not as simple as it seems.