Buckets of money
When considering making investment choices, your investment advisor probably will ask how long you intend to invest the money, your risk tolerance, any income or liquidity needs, and concerns of tax consequence. In the past, most of the asset allocation models stem from one portfolio – take it as you need it otherwise, let it ride. More realistic and growing trend is moving into multiple portfolios (or buckets of money) designed around a particular need/goal. For example, a short term bucket maybe earmarked for cash flow or emergency needs while long term bucket is designed for retirement or creating a legacy (meaning leaving money to your kids or favorite charity). In between these focus, you might find an intermediate bucket earmark for vacation, a yacht, or building an addition to your home. If you have kids like we do, you’ll find yourself with yet more buckets – college savings, disability and life insurance for those just-in-case scenarios.
You may have heard – time changes everything. So it’s a good idea to visit these from time to time or as your lifestyle or any major event changes.
Great advice, Sunny. I think I might be obsessed though because I watch my finances at least every other day minus weekends. That means 3 times a week usually.
testing
Thanks Derrich! Unless you’re actively trading stocks, there’s probably not a need to check as frequently. Given the US and global economy outlook, I’d look into international investing closer, especially with the dollar continues to see signs of weakness.