Skip to Content
Investing Specialists

A Sample Retirement Portfolio Using the Bucket Approach

This aggressively positioned portfolio illustrates how this increasingly popular strategy works.

Mentioned: , , , , , , , , ,

Here's your assignment: Gather up all of your retirement accounts and shape them into a portfolio that will supply you with the income you'll need during your retirement years. Oh, and one other tiny to-do: You'll also need to make sure you never run out of money, even though you don't know exactly how long you'll need it.

In the past, one simple and elegant solution to the above problem was to buy an immediate annuity that would pay you a stream of income for the rest of your life. But many investors don't like the loss of control that accompanies annuities. A more temporal problem is that today's ultralow interest rates mean that payouts from annuities are lousy right now, as I explored in this article.

Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.