Two-Bucket Approach
WEALTH THAT LASTS
What it is
Check Capital’s Two-Bucket Investment Approach is a fundamental asset-allocation strategy that aims to make your money last through retirement. One bucket holds your short-term needs, keeping your money safe and accessible. The other bucket focuses on long-term growth, aiming to build your wealth over time. This strategy is designed to help you protect and grow your assets.
How it works
After consulting with one of our experienced advisors, you will determine how many years of spending money you would like to place in your “Bucket #1” account. We typically recommend 3-5 years so we are not forced to sell any positions in Bucket #2, the growth bucket, at a loss. At the end of each year, allocations to each bucket would be reviewed and adjustments potentially made. If stocks are at a new performance high, money is moved from Bucket #2 to Bucket #1, refilling Bucket #1 with spending/withdrawal money.
Money is moved from Bucket #2 to Bucket #1, refilling Bucket #1 with assets for spending or withdrawal.
For more details on the Two-Bucket Approach read our blog post.
“In my retirement situation, Check’s Two-bucket Approach, balanced for my risk tolerance, has performed well for me allowing me to sleep comfortably at night.”
Mike D.
Check Capital Client
If you have any questions or would like to discuss how the Covered Call Program would work for you, please complete the form below and we will contact you using the information provided.