For today’s retirees, creating income is no longer as simple as drawing from one account. Rising healthcare costs, inflation, market volatility, and changing tax laws all demand a more strategic approach to generating reliable income.
That’s where the modern bucket strategy comes in.
At CKS Summit Group, we help clients structure retirement income using SMART Retirement™ principles, blending security and growth across carefully planned timeframes. A bucket strategy isn’t just a tool; it’s a philosophy to help protect your lifestyle.
What Is the Bucket Strategy?
The classic bucket strategy divides your retirement assets into three “buckets” based on time horizon:
✔️ Short-Term Bucket (1-3 years):
Cash, CDs, and stable funds are designed to cover immediate living expenses without market risk.
✔️ Mid-Term Bucket (3-7 years):
Balanced investments with modest growth potential and moderate risk.
✔️ Long-Term Bucket (7+ years):
Growth-oriented investments designed to outpace inflation over the long term.
As you draw down from your short-term bucket, funds from the mid-term and long-term buckets replenish it over time.
Why Bucket Strategy 2.0?
Traditional bucket strategies can be too rigid for modern retirees. Bucket Strategy 2.0 adapts to today’s realities:
- Inflation isn’t temporary: Your strategy must address long-term purchasing power.
- Market volatility is constant: Sequence of returns risk can erode early retirement years.
- Taxes matter more: Coordinating withdrawals from taxable, tax-deferred, and tax-free accounts can make or break your plan.
At CKS Summit Group, our modernized approach helps clients:
✔️ Blend guaranteed income sources with market strategies.
✔️ Structure withdrawals tax-efficiently across all account types.
✔️ Build flexibility to adjust for life’s surprises.
How a Smarter Bucket Strategy Works
Here’s how we structure smarter income planning using Bucket Strategy 2.0:
- Short-Term Stability: Cover 1-3 years of living expenses using stable sources like cash reserves, CDs, and fixed annuities.
- Mid-Term Growth with Caution: Invest moderately to support 3-7 years of future expenses while managing risk. This might include bonds, dividend stocks, or conservative portfolios.
- Long-Term Inflation Protection: Keep a portion invested in equities for growth to help combat inflation over your retirement horizon.
💬 Advisor Insight:
“At CKS Summit Group, we customize each client’s buckets based on their lifestyle goals, risk tolerance, and tax picture – no two plans are alike.”
– Al Caicedo, President of CKS Summit Group
3 Reasons the Bucket Strategy Still Works
- Minimizes Emotional Investing:
In down markets, your short-term bucket prevents panic selling of growth assets. - Creates Reliable Paychecks:
Buckets provide structure to help deliver predictable income. - Balances Growth and Safety:
You’re not overexposed to market risk, nor too conservative to outlast inflation.
Why High-Net-Worth Individuals Still Need an Emergency Plan
Even with substantial assets, high-net-worth individuals (HNWIs) aren’t immune to unexpected events – and when you’re retired, an emergency fund becomes a critical piece of your income strategy.
Emergencies don’t discriminate by net worth. Whether it’s a sudden health expense, unexpected family need, property damage, or a market downturn, having a liquid reserve set aside can prevent disruption to your investment strategy. Without one, you could be forced to sell long-term assets at the wrong time, or trigger unintended tax consequences.
That’s why Bucket Strategy 2.0 includes a dedicated short-term reserve specifically designed for emergency use. For HNWIs, this isn’t just about peace of mind; it’s about protecting the integrity of the entire income plan.
At CKS Summit Group, we help clients:
- Define what constitutes a “retirement emergency”
- Calculate the right reserve size based on lifestyle and risk tolerance
- Coordinate the emergency fund with broader tax, estate, and investment strategies
Building wealth is only part of the equation – protecting it requires a plan for the unexpected.
How CKS Summit Group Can Help
A generic bucket approach isn’t enough in today’s retirement landscape. At CKS Summit Group, we help clients design customized, tax-efficient, and lifestyle-aligned retirement income plans that adapt as life changes.
Our approach supports:
✔️ Income confidence
✔️ Market protection
✔️ Tax efficiency
✔️ Long-term flexibility
Final Thoughts: Modernize Your Income Plan
Your retirement shouldn’t rely on guesswork or outdated strategies. Whether you’re already retired or preparing to step away from work, a personalized Bucket Strategy 2.0 can help protect your future.
📅 Ready to design a retirement income plan built for today’s challenges?
Schedule a complimentary consultation with the team at CKS Summit Group.
👉 Visit summitgp.com to get started.
FAQs
Q1: Is a bucket strategy right for everyone?
Yes, but the structure and allocations should be personalized to your unique situation.
Q2: What makes CKS Summit Group’s approach different?
We combine bucket planning with tax strategies, risk management, and income planning for a more holistic approach.
Q3: Does this strategy eliminate investment risk?
No. It helps manage and balance risks over time, reducing your vulnerability during downturns.
Q4: Can I adjust my buckets later?
Absolutely. Your income plan should evolve as your needs and markets change.
Q5: Does CKS Summit Group work with my CPA or tax advisor?
Yes! We often collaborate with tax professionals to help ensure your strategy is tax-aware and coordinated.
Disclaimer: This content is for informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified advisor before making financial decisions.
