personal-finance
What is the ‘Three Bucket Strategy' for golden years?
Dec 30, 03:12

There are three challenges to having a financially secure retirement. One: to meet your immediate expenses. Two: risk management. And three: longevity of income generation. The 3-bucket strategy is the way out. First, to meet near-term expenses (12 to 18 months), invest in highly liquid instruments such as fixed deposits and liquid funds. Second, to earn a steady income, invest in bonds, debt funds and schemes such as senior-citizen saving scheme. Third, to generate inflation-beating returns for the long-term, invest in assets such as gold funds, diversified equity funds and index funds.

3 Buckets of Wealth