Bucket No. 3 — Investing for Growth
Ray Lucia on Bucket #3
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Bucket No. 3—which is allowed to grow while Buckets No. 1 and 2 provide you with income—is reserved for stocks and other long-term investments that will provide the growth in your portfolio. In other words, you'll leave these investments untouched for now so they can later provide you income for possibly decades into retirement.
Once your Bucket No. 3 is set up, you'll enjoy a liberation. Why? Because unlike most stock market investors, you'll be firmly focused on the long term. Though you may need to rebalance your portfolio periodically, the short-term ups and downs of the market no longer will concern you. And given a long enough time frame and the proper diversification, this Bucket No. 3 ought to be where you get the biggest bang for your investment buck.
Of course, getting your Bucket No. 3 money parked in the right places is important. You almost never put money market funds or bonds, for example, in this bucket. You may need help selecting solid stocks, and your Buckets of Money® advisor can assist you in doing that as well as in choosing among other, less traditional long-term investments, such as real estate investment trusts, limited partnerships, commodities, and natural-resource funds, perhaps including precious metals.
What we do is help you plan for—and then enjoy—a safe, secure financial future.