Top Fund Ideas for Retirement Bucket Portfolios
We search for sturdy core funds to provide fixed-income and equity exposure.
Note: This article is part of Morningstar's October 2014 5 Keys to Retirement Investing special report.
One of the key benefits to the bucket approach to retirement-portfolio management is that it's not a call to reinvent the wheel. If retirees and pre-retirees have well-diversified portfolios, it's likely that they already own the key ingredients for a successful bucketed portfolio: bucket one (cash and potentially short-term bonds), bucket two (bonds and perhaps a bit of equity exposure), and bucket three (mainly stocks).
Christine Benz does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.