In the world of wealth management, the Bucket Strategy is a powerful tool that we use to help you balance your immediate financial needs with your long-term growth objectives. By working together to segment your finances into distinct “buckets,” each tailored to different time horizons and risk levels, we can give you a clear sense of control over your money. This structured approach ensures that your investments are aligned with your specific goals and that your wealth is working effectively for you. Let’s dive into how this strategy works and how we can implement it to take charge of your financial future.

The Basics of the Bucket Strategy

The Bucket Strategy is how we work together to structure your investments into three key categories, or “buckets,” each tailored to various stages of your financial journey. This approach allows us to balance your immediate cash needs with the pursuit of long-term growth, all while managing risk in a way that aligns with your personal financial goals.

The Short-Term Bucket (The Grill)

• Purpose: We design this bucket to meet your immediate financial needs, covering the next 1 to 5 years.
• Investment Focus: Our focus here is on liquidity and stability, selecting conservative investments like high-yield savings accounts, short-term bonds, or stable-value funds.
• Why It Matters: With this bucket, we ensure that you have quick and easy access to funds for upcoming expenses, whether it’s a major purchase, an emergency, or a significant life event. By choosing low-risk investments, we can help protect your capital from market volatility.

The Mid-Term Bucket (The Fridge)

• Purpose: This bucket is where we address your financial goals over the next 6 to 10 years, such as saving for your child’s education, a home down payment, or an early retirement.
• Investment Focus: We aim for a moderate level of risk here, using a balanced mix of investments like intermediate bonds and dividend-paying stocks. This approach offers a blend of growth potential and stability.
• Why It Matters: The Fridge bucket allows us to grow your wealth while also protecting against inflation. Our goal is to help you achieve better returns while managing risk, ensuring you’re prepared for upcoming, but not immediate, financial needs.

The Long-Term Bucket (The Freezer)

• Purpose: Together, we build this bucket for your long-term financial goals, typically more than 10 years out. This might include retirement planning, legacy building, or funding a long-term dream.
• Investment Focus: Here, we focus on more volatile investments such as equities, aiming for substantial long-term growth.
• Why It Matters: With a longer time horizon, the Freezer bucket gives us the opportunity to pursue more aggressive investment strategies. Our objective is to ensure your wealth grows significantly over time, helping you stay ahead of inflation and taxes, and providing financial security well into the future.

Avoiding the Leaky Bucket

One of the key elements we focus on in the Bucket Strategy is preventing what is known as a “leaky bucket.” This happens when investments are not properly aligned with their intended goals and timelines. By working closely with you, we ensure that each investment is placed in the correct bucket, so you can benefit from both growth potential and liquidity. This approach helps you meet your financial needs without compromising your financial security, giving you confidence in your financial planning.

Implementing the Bucket Strategy

Successfully using the Bucket Strategy requires careful planning and ongoing management, and we are here to guide you every step of the way:

1. Assess Your Financial Situation: Together, we will start by evaluating your current financial status. We’ll help you identify your immediate needs, medium-term goals, and long-term aspirations, estimating the costs and timeframes associated with these goals.
2. Allocate Your Assets: Next, we assist in dividing your assets into three buckets based on their intended use and time horizon. The aim is to ensure sufficient funds in the Short-Term bucket to cover immediate expenses, invest in moderately riskier assets for the Mid-Term bucket, and allocate higher-growth investments to the Long-Term bucket.
3. Align Investments with Goals: We’ll match each of your investments with the appropriate bucket. This alignment ensures that each bucket serves its purpose without exposing you to unnecessary risk.
4. Monitor and Adjust: Regular reviews of your investment buckets are essential to ensure they continue to align with your evolving financial situation and market conditions. We make adjustments as needed to keep your plan on track.

Adapting to Real-Life Challenges

The Bucket Strategy we develop together is not just a theoretical model; it’s designed to be practical and adaptable to real-life situations. Whether you encounter unexpected health issues, job changes, or other significant life events, our well-structured bucket plan provides peace of mind. The flexibility of this strategy allows us to help you manage financial challenges without derailing your long-term goals, so you can focus on what truly matters.

Securing Your Buckets

The Bucket Strategy offers a comprehensive approach to managing your finances by breaking down your investment goals into manageable segments. This strategy helps to ensure that your investments are aligned with your life stages and financial goals, providing both stability and growth potential. Through careful planning, regular reviews, and a clear understanding of each bucket’s purpose, we’ll help you navigate the complexities of wealth management and secure your financial future with confidence.

If you have any questions or would like to explore further why the Bucket Strategy is such a crucial part of your financial plan, don’t hesitate to reach out to us. We’re here to help. Additionally, you can dive deeper into this approach by checking out Chapter 4 of ‘Wealth on Purpose’ by Bryan Ballentine.

Sources: Located at the bottom of the article

Golf Tip of the Week

This small detail can decide if you make or miss putts – a top teacher shows why

Golf is a cruel, unfair game. And putting is the most cruel and most unfair part of all. You can do everything right and hit a good putt, only to watch it deflect in an unexpected direction, then roll around the lip and stay out of the hole.

Which brings us to an interesting topic: Wind.

Golfers think a lot about the wind off the tee and approaching into greens. But what about the putting surface itself?

A top coach’s test

Unless it’s noticeably strong, the direction the wind is blowing is more of an afterthought on the green for most golfers. Though maybe it shouldn’t be.

Golf Digest Top 50 Teacher Cameron McCormick, the longtime coach to Jordan Spieth, shared an interesting video on his Instagram account this week.

In it, McCormick used a Perfect Putt device to roll five golf balls from inside 10 feet aiming directly at the hole.

• The first three putts faced a 20 mph wind blowing from right-to-left, and all three putts missed to the left of the hole. They didn’t even catch the lip.
• The second two putts were rolled in still conditions, and both went in the hole.

TLDR: What do I need to know?

Wind matters on the greens more than you think. So here’s a quick rundown of things to remember:

• The wind pushes the ball in the direction it’s blowing (obviously).
• It makes downhill putts faster, uphill putts slower, and breaking putts more severe. So add a little buffer whenever you feel significant wind.

• The wind will have more of an impact on faster greens.

• Conversely, slower greens make the wind less of a factor.

• The easiest way to feel the wind is to bend down and place your hand flat, about an inch above the green.

• Remember that gusts are different from sustained winds. You can account for sustained winds, but you can’t control for gusts—they happen unpredictably.

Tip adapted from golfdigest.comⁱ

Recipe of the Week

Pellet-Grill Smoked Ribs

Ingredients:

Kosher salt and coarsely ground black pepper

4 teaspoons paprika

2 tablespoons vegetable oil

2 full racks St. Louis-style pork ribs (2 1/2 to 3 pounds)

2/3 cup apple cider vinegar

2 cups ketchup

1/3 cup distilled white vinegar

1/3 cup dark brown sugar

2 tablespoons Worcestershire sauce

1 to 2 teaspoons hot sauce, to taste

Special equipment:

Pellet grill, spray bottle, basting brush and heavy-duty foil

Directions:

1. Preheat a pellet grill to 275 degrees F (see Cook’s Note). Combine 2 tablespoons salt, 4 tablespoons coarsely ground pepper and 2 teaspoons paprika in a small bowl. Rub each rack of ribs all over with 1 tablespoon oil and sprinkle evenly with the salt and spice mixture on both sides.
2. Transfer the ribs, meat-side up, to the grill grates. Cover the grill and cook for 1 hour.
3. Meanwhile, combine 1/3 cup cider vinegar with 1/3 cup water in a spray bottle. After 1 hour spray the ribs with the vinegar-water mixture so they are damp all over. Cover and cook for 1 more hour.
4. Meanwhile, combine the ketchup, 3/4 cup water, the remaining 1/3 cup cider vinegar, white vinegar, brown sugar, Worcestershire sauce, 2 teaspoons salt, 2 teaspoons pepper, hot sauce and the remaining 2 teaspoons paprika in a medium saucepan. Cook over medium heat until the mixture is warmed through and the sugar is melted, about 2 minutes. Set aside.
5. Check the ribs and spray them again with vinegar-water. They should be starting to take on a red color from the smoke. Cover and cook until they are deep red, 30 to 45 minutes. Spray the ribs once more, then brush the meaty part of each rack with 1/4 cup of the sauce. Close the grill and cook for another 15 minutes so the sauce can set.
6. Lay down two pieces of heavy-duty foil that are long enough to enclose each rack on a work surface and spread half of each sheet with 1/4 cup sauce. Transfer the rib racks, meat side down, onto the saucy part of the foil. Coat the bone sides with 1/4 cup sauce and a few sprays of the vinegar-water, then fold the foil over and seal tightly.
7. Add another layer of foil if the first has punctured during wrapping. Transfer the ribs to a rimmed baking sheet and place on the grill (the baking sheet will catch any juices that leak out). Cover and cook until tender but not falling off the bone, about 2 hours.
8. Remove from the grill and let rest 5 minutes before carefully unwrapping (watch out for hot steam). Slice each rack into individual rib portions and serve with the remaining sauce.

Recipe adapted from foodnetwork.comⁱⁱ

Travel Tip of the Week

Amtrak’s Auto Train Sale Has Tickets for As Low As $34 — When to Book

The sale is valid on fall and winter travel.

Amtrak is making it easier to travel up the East Coast and experience fall and winter fun with less traffic with a new Auto Train sale, offering tickets starting as low as $34.

To take advantage of the sale, travelers must book by Aug. 29 and travel between Sept. 9 and Dec. 15, Amtrak shared with Travel + Leisure. The sale is only available for northbound travel on the train.

“All Aboard (including your vehicle)!” Amtrak wrote in a statement shared with T+L. “Amtrak is giving customers the opportunity to skip the airport security line, and nearly 900 stressful miles of driving on I-95 with discounted fares on the Auto Train.”

As part of the sale, tickets start at $34 for adults in coach and start at just $17 for children 2 to 12 years old. Roomettes are also on sale, starting at just $235 for single occupancy and $335 for double occupancy, as are private bedrooms, which start at $435 for single occupancy and $535 for double occupancy.

However, it’s worth noting, the sale does exclude several blackout dates, including Nov. 8 to Nov. 10, Nov. 22 to Nov. 27, and Nov. 29 to Dec. 1.

The ticket fare also does not include the cost of a vehicle, which can include cars, vans, and motorcycles with the price depending on the type.

The Auto Train operates nonstop between Sanford, FL, and Lorton, VA, and takes about 17 and a half hours to complete. While on board, passengers receive a complimentary continental breakfast before arrival in coach, while travelers in private Roomettes or bedrooms are treated to complimentary meals, priority boarding, and a dedicated first class attendant. Each private bedroom also features an in-room sink, restroom, and shower.

Amtrak, which recently changed its fare structure, offers two fare options: “value” and “flex.” Both options are available on the Auto Train. However, the sale fare includes a 50 percent cancellation fee and changes are not permitted in coach, and includes a 25 percent cancellation fee for private rooms when canceled up to 120 days before departure.

Tip adapted from travelandleisure.com ⁱⁱⁱ

Copyright © 2021. Ballentine Capital Advisors. All rights reserved.

Our mailing address is: 

Ballentine Capital Advisors
15 Halton Green Way
Greenville, SC 29607

Sources:

Phasing Retirement with a Bucket Drawdown Strategy

What is a retirement bucket strategy?

A Comprehensive Guide to the Retirement Bucket Strategy

Disclosure:

Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.

Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.

This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.

No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.

Advisory services through Ballentine Capital Advisors, Inc.

ⁱhttps://www.golfdigest.com/story/golf-digest-putting-wind-test-explained

ⁱⁱhttps://www.foodnetwork.com/recipes/food-network-kitchen/pellet-grill-smoked-ribs-8609385

ⁱⁱⁱhttps://www.travelandleisure.com/amtrak-auto-train-sale-2024-fall-8699742