Three-Goal Approach Buckets

When transitioning from accumulating wealth to living off your wealth, there are many different ways to structure your financial plans. Many well-known financial planners write about the three-goal approach, also known as the three-bucket approach. The three-goal approach breaks down the needs of an individual or a couple into three goals, short-term liquidity (goal 1), moderate-term income and safety (goal 2), and longer-term growth (goal 3). The three goal approach allows for security in the short-run and growth for the future, when inflation causes products and services to be more expensive. Perhaps the most important part of the three-goal approach is that clients that use this strategy feel much better in the short run and even have the opportunity to feel better in market downturns compared to traditional investment approaches.

See our video below to learn more about how this approach can help you.

Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel.  The opinions expressed are those of Leading Edge Financial Planning as of 27 June 2016 and are subject to change at any time due to the changes in market or economic conditions.

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