Retirement Savings, Financial Planning, Wealth Management, Hershey, Camp Hill, Carlisle PA

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The Bucket Plan

Protecting and Growing Your Assets with The Bucket Plan®


Many people struggle to find balance in their financial planning. If you invest too conservatively, you may protect the assets you currently have, but you can lose purchasing power due to inflation. On the other hand, if you invest too aggressively, you face the potential of significant financial losses. So, how do you find the right balance? How do you protect your current wealth while still growing it for the future?

At KCA Wealth Management, we adhere to a planning philosophy and tool known as The Bucket Plan®. This process helps to segment your assets in the order that you will need them based on your unique financial situation and timeline. It also helps to mitigate the three greatest dangers that retirees face:

  • Market risk
  • Interest rate risk
  • Sequence of returns risk

The Bucket Plan structures assets to provide consistent income throughout retirement, protect against net worth erosion, and ensure all of your assets are passed to your intended beneficiaries in the most tax-efficient manner.

But The Bucket Plan isn’t just for retirees. It also helps younger individuals navigate the challenges of saving for short-, mid-, and long-term financial goals, while creating a plan for the “what ifs” in life.


The 3 Buckets of the Plan

So what exactly is The Bucket Plan? The name comes from the segmentation of your assets into three different categories, or “buckets.” Those three buckets are:

  • The “Now” Bucket – This is the money that you need to cover living expenses. It’s safe and secure, and provides liquidity for larger expenses like home repairs. This is also your emergency fund for unexpected expenditures.
  • The “Soon” Bucket – This is your preservation bucket. You may need this money sooner rather than later, but you still want it to grow. So, this bucket involves conservative investment that reduces your exposure to extreme fluctuations in the market.
  • The “Later” Bucket – This bucket is for long-term growth, and allows you to choose to invest in assets with a longer time commitment and greater growth potential. It can also play a role in legacy planning, such as providing income for a surviving spouse.

We believe that this bucketing method for personal finances is a simple, yet proven method to protecting your wealth while enabling long-term growth. As The Bucket Plan® certified advisors, we can help you to use this method to plan for and protect your own financial future. Contact us to learn more about how we can help you implement The Bucket Plan® for your personal finances.

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