Should we use bucket strategies or just report that way?

Michael Kitces | Pinnacle Advisory Group | 22 May 2013

One common challenge area regarding investments in particular is human beings' tendency for mental accounting - where we break up and categorise assets based on various needs and purposes, even if the underlying investments are flexible or entirely fungible. This in turn has spurred the growth of so-called bucket strategies that seek to allocate portfolios based on various goals, needs, or time horizons.

Unfortunately, though, recent res...