Retirement is a time to enjoy life comfortably, but smart planning beforehand is essential. The ‘Three-Bucket Strategy’ is one such strategy that assists in saving for retirement.
Let’s try to understand each aspect of the three-bucket strategy in this infographic guide.
Conclusion
In the three-bucket strategy, liquidity is crucial for the short term, and during the medium term, the focus is on assets that provide liquidity and returns. In the long term, the main focus is on wealth creation, hence the aim is for higher returns, but it also involves higher risk.
This way, you can receive regular cash flow for short-term monthly expenses and earn good returns on your retirement fund for the long term.
This article is for informational purposes only. It is not investment advice.
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