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Investment Income Settings

Standard Plan

Select the Projected Growth Rate assumptions for each of the four Buckets.

Bucket Strategy

The Retirement Buckets® Income Plan is a web-based platform designed for Self-Directed Users and Financial Advisors to manage retirement income that can be implemented anywhere they choose. Learn More.

Description
The Retirement Buckets® Income Plan automatically allocates the funds for the Investment Income Bucket Strategy into four Buckets.

Each Bucket is assigned a specific time horizon and risk profile, as described in the Bucket Profiles section below. This approach enables the Retirement Buckets® to allocate the funds with a higher growth potential to the Buckets that are designed to produce an Investment Income in the future, while allowing the income distribution from the Current Income Bucket.

The initial allocation of funds among the Buckets is primarily based on:
► Retirement timeline.
► Amount of Fixed Income (Pension, Social Security, Annuities, etc.) available throughout the retirement years.
► Projected Growth Rates of each Bucket.
► Projected Inflation Rate.

Bucket Profiles

The Retirement Buckets® Income Plan detailed Bucket profiles.

Bucket 1 Bucket 2 Bucket 3 Bucket 4
Bucket 1 Bucket 2 Bucket 3 Bucket 4
Bucket Strategy
Bucket 1 is initially funded to distribute the monthly income for 5 years. It will then be refilled by other Buckets to produce an inflation-adjusted income for the next 5 years. This process is repeated every 5 years. Bucket 2 is initially funded to grow for 5 years with no distributions. It will then refill the Current Income Bucket and will remain empty for the following 5 years. At that point, it will be refilled by the 10-Year Growth Bucket. This process is repeated every 10 years. Bucket 3 is initially funded to grow for 10 years with no distributions. It will then refill the Current Income Bucket and the 5-Year Growth Bucket. At that point, it will be refilled by the 10-Year+ Growth Bucket. This process is repeated every 10 years. Bucket 4 is initially funded to grow for 10 years* with no distributions. It will then refill the 10-Year Growth Bucket and will remain permanently empty*.

* If the goal to generate an Investment Income is greater than 30 years, then Bucket 4 will retain the needed funds for an additional 10 years. It will then refill the 10-Year Growth Bucket.
Investment Objective
Current income Short-term Growth Intermediate-term Growth Long-term Growth
Liquidity Needs (first income payment from each Bucket)
Immediate 5 years 10 years 20 years
Investment Period (for each Bucket)
5 years 5 years 10 years 10+ years
Bucket Transfers (by other Buckets after the initial funding)
Every 5 years Every 10 years Every 10 years N/A
Hypothetical Bucket Strategy Example
Monthly distributions of principal and interest Buy and hold Target Volatility Portfolios with decreasing volatility levels Target Volatility Portfolios with fixed volatility levels

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