Your Income Bucket

Your Income Bucket
26 Oct 2016

Or as We Say… Bucket #2

In retirement, unless you plan on working, there are only so many ways to make an income.  A strategy that we have used is to have your money segmented into responsibilities or as we call it, “a bucket approach.”  The Income Bucket, for us, is called bucket #2. In this bucket we want to try to position investments that pay some type of income. Examples would be:

* Dividends – Typically associated with Stocks
* Interest – Typically associated with CDs and Bonds
* Capital Gains – Can be associated with assets that have grown in value and have been sold for a profit
* Rental Income – Farm or house rental income are some of the most common

They real lesson here is that if we have investments specifically geared towards income we can leave the rest of the portfolio alone for growth. A good percentage to have in you income bucket is roughly 20%-30% of your investment net worth. Again, this will be different for your unique situation.

Good Luck!


This is for informational/educational purposes only and should not be construed or acted upon as individualized investment advice. Please contact your financial advisor prior to making any investment decisions.


Jeffrey Johnston

Jeff has over 30 years of experience in the investment industry. He currently holds his FINRA Serices 6, 63, 66, 7, 24 & 51 licenses with LPL Financial as well as his health and life insurance licenses.