Three specific examples of bucket strategy for retirement investing have been put together by Morningstar. The bucket strategy involves structuring your retirement assets into three buckets based on longevity and when cash is needed. The strategy isn’t focused on generating the best investment returns but rather on providing cash flows for retirees. Model portfolios for various risk tolerances have been created by Morningstar using the bucket strategy, ranging from aggressive to conservative approaches. A financial advisor can help customize the strategy based on individual goals and financial profiles.

The bucket strategy involves dividing retirement assets into three buckets based on longevity and cash needs. The first bucket holds cash and liquid assets for immediate retirement needs, while the second and third buckets focus on bonds and stocks to promote growth. The three model portfolios created by Morningstar vary in risk tolerance and lifespan expectations, with allocations for cash, bonds, and stocks outlined for each approach. A financial advisor can help tailor the strategy to individual spending levels and retirement goals, ensuring the right asset allocation is achieved.

Read more at Yahoo Finance: How Much Should You Keep in Stocks, Bonds and Cash in Retirement?