Segment retirement expenses to create retirement buckets

Michael Kitces | Pinnacle Advisory Group | 13 June 2019

EXECUTIVE SUMMARY

In recent years, a growing number of retirement "bucket" strategies have been developed to tie specific portfolio allocations to specific expenditures. The most commonly approach is to tie "essential" expenses that a retiree cannot outlive to guaranteed income streams (or at least highly conservative portfolios with low withdrawal rates), while "discretionary" expenses are sup...