Simon's "1 Minute Money Message" (Episode 3): What Is A Bucket Strategy?

Welcome to Episode 3 of "One Minute Money Message" where Simon will outline Simple Ideas to Grow, Protect and Manage Your Wealth.

"Every day is a bank account and time is our currency.

No one is rich, no one is poor.

We've got 24 hours each."

Quote by Christopher Rice.

So bucket strategy in investing is a way to manage your time and savings by dividing your money into 3 separate buckets based on when you need access to the funds.

So first bucket is short term bucket money you'll need in one to three years that's kept in safer liquid investments like cash term deposits, and short term bonds.

Bucket number two, the medium term bucket funds for say the 4 to 10 year period, invested in some stocks, longer term bonds for for moderate growth.

And then the third bucket, the longer term bucket for money over 10 years, invested more aggressively in stocks, possibly alternatives, and you're seeking the highest return from that bucket.

So the idea with the strategy is it helps balance out your immediate needs alongside growth for the future, and hopefully making your money last as long as you do.

If you'd like help building your bucket strategy, please book a free call on our website. We also have a nifty investment policy design tool available for free, which you can request on our website as well via the contact form.

Thanks for watching!

Simon

p.s/ - If you'd like to check out other episodes of "1 Minute Money Message" click here!

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