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

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.