When I invest, I think of my investments as being in buckets. I’m in my early forties and not yet in retirement but it turns out that the bucket strategy applies to retirement as well (in fact, probably more so because you’ll need more buckets).
How to Build A Retirement Paycheck From Your Investments [The Retirement Manifesto] – “A common approach to setting your investments up for the withdrawal phase is to establish a “Bucket Strategy”, originally conceived by financial planning guru Harold Evensky (for a video of him discussing the strategy, click here). Even though I’m still several years away from retirement, I’ve already been working on setting this up, and will share the specific approach I’m using.”
When Diversification Dies [Young Money by Jack Raines] – “Nothing is done for the sake of the thing itself, everything is just a stepping stone for whatever comes next. And, like the donkey chasing the carrot on a stick, we convince ourselves that we are just a couple of steps away from pursuing some dream of ours that we never seem to reach. Optionality for the sake of optionality. It’s a sick, twisted game when you sit back and think about it, because there will always be another option. Until there’s not.”
They say that stocks go down during the day and up at night. [Statistical Modeling, Causal Inference, and Social Science] – “If you invested $1 in AIG at the start of 1990 and received only intraday returns (from market open to market close), you would be left with one-twentieth of a penny, suffering a cumulative return of -99.95%. If you received only overnight returns (from market close to the next day’s market open), you would have $1,017, achieving a cumulative return of roughly +101,600%.” Fascinating though while this is a cherry picked example, I wonder how widespread it is. 😂