Cash Buckets Are Earning Their Keep as Markets Slide. Just Don’t Hold Too Much
https://www.barrons.com/articles/cash-bucket-strategy-retire…
He originally told clients to keep two years’ worth of supplemental living expenses in the cash bucket, but later cut that down to a single year’s worth.
Evensky, now 79 years old and retired from planning, disagrees with how the bucket approach is often used today. Some advisors keep up to 10 years’ worth of living expenses in short-term and intermediate-term buckets, and long-term investments in a third bucket. Evensky prefers his simpler two-bucket approach: one for cash, the other for long-term investments. He says a year’s worth of cash is plenty to protect investors from market volatility, and holding more than that drags down returns.
True dat. The i-bonds I bought about 25 years ago are by far the most poorly performing asset in my portfolio. Fortunately, it’s only about 1% of assets.
intercst