Why “Blending” Your Buckets May Produce Better Results – Episode 172
You may have heard that a basic Bucket Strategy® consists of a 3-, 4- or 5-Bucket plan, with each bucket separated into groups of short-term, mid-term, and long-term assets. What you may not have heard is that a good Bucket Strategy will often “blend” buckets to potentially give a retiree a much better overall outcome.
What do we mean by “blending” the buckets? In essence, it means to blend the income stream to try to get a desired outcome. Where do you take your income stream from? Your IRA? Your 401k? Your personal money? Roths? This is where blending buckets can potentially be very helpful.
Learn more about why this strategy may be right for you as podcast host Johnny Dean and Rick “The Professor” Plum, CFP® give you the inside scoop on today’s episode of Managing Your Financial Future!
Important Information:
Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy will be profitable for a client's or prospective client's portfolio, thus, investments may result in a loss of principal.
IRA withdrawals will be taxed at ordinary income rates. Withdrawals prior to age 59½ may also be subject to a 10% penalty tax.
Roth IRA distributions of principal from a Roth IRA are tax-free; however, any earnings will be taxed at ordinary income rates and a 10% penalty tax will apply if withdrawn prior to age 59½ or within five years of the date the Roth IRA was established, whichever is longer.
401K Plan information used is obtained from sources believed to be reliable as of the current date, but no representation is made as to its accuracy and completeness. Benefits may be subject to change at your employer the governing pension or benefit organization discretion.
Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.
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