Client Login
 

(703) 992-9570  

plan@makonnenfg.com

Home NavigationMENU
  • Who We Are 
    • Our Firm
    • Meet the Team
    • Our Mission and Philosophy
    • Why MFG and LPL Financial
    • Strategic Resources
  • The Planning Process 
    • What We Do
    • The Planning Process
    • Forms & Planning Documents
  • Events
  • Resources 
    • Retirement
    • Estate
    • Investment
    • Tax
    • Money
    • Lifestyle
    • Glossary
    • Tax Resources
  • WealthVision
  • Contact
Retirement Read Time: 2 min

A Bucket Plan to Go with Your Bucket List

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 that also offer the potential for growth.3

Finally, list the Legacy assets that 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.

  1. John 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.
  2. Social Security benefits may play a more limited role in the future and some financial professional recommend creating a retirement income strategy that excludes Social Security payments.
  3. A 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 FMG Suite.

Share |
 

Related Content

What You Need to Know About Social Security

What You Need to Know About Social Security

Every so often, you’ll hear about Social Security benefits running out. But is there truth to the fears, or is it all hype?

12 Steps to Living: Horizon, Risk Tolerance, and Compounding

12 Steps to Living: Horizon, Risk Tolerance, and Compounding

Understand the concepts of horizon, compounding, and risk tolerance, and create an investment plan.

Ask a Financial Professional: Help! My Business is Overexten

Ask a Financial Professional: Help! My Business is Overexten

Every business wants to grow. But there’s a risk of extending your business so far, so fast that you hit the tipping point...

 

Have A Question About This Topic?









Thank you! Oops!
 

Get Financial News & Updates Delivered to Your Inbox





Thank you!

Error processing your request. Please try again at a later time.

Check the background of your financial professional on FINRA's BrokerCheck.

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. Please consult legal or tax professionals for specific information regarding your individual situation. Some of 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 representative, 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.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.

Copyright 2023 FMG Suite.


The LPL Financial registered representative(s) associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA & SIPC.

Registered as IAR in the following states: TX and VA.

Contact

Makonnen Financial Group, LLC
Office: 703-992-9570
Toll-Free: 800-877-7210
Fax: 703-992-9945

5568 General Washington Drive
Suite A-200
Alexandria, VA 22312

plan@makonnenfg.com

Facebook Twitter LinkedIn

Quick Links

  • Retirement
  • Investment
  • Estate
  • Tax
  • Money
  • Lifestyle
  • All Articles
  • All Videos
  • All Calculators
  • All Presentations