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Investing Specialists

How Did the Bucket Portfolios Perform in 2019?

Cash was a drag, but the most equity-heavy mutual fund and ETF retirement portfolios enjoyed a standout year.

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In 2019, investors’ buckets runneth over.

Both bonds and stocks--the key components of buckets 2 and 3, respectively--enjoyed an extraordinarily good run last year. Thus, in early 2020, bucket investors have an opportunity to top up their cash buckets--bucket 1--to provide living expenses for the years ahead. In fact, trimming appreciated equity holdings can supply living expenses for not just 2020, but several years beyond that as well.

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