Investing Specialists

Do Streamlined Bucket Portfolios Make the Grade?

Christine Benz

A Bucket Portfolio that was worth $1.5 million in 2000 would have soared to nearly $2.1 million at the end of 2017. It would have also supplied more than $1.4 million in cash flows over that same period, according to my recent "stress test."  

That sounds good, but is it, really? True, a bucket approach would have delivered on a main goal for many retirees: stability and growth of principal as well as real cash flow to meet in-retirement living expenses. From that standpoint, our hypothetical retirees are winning the game.

Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.