The Bucket Advantage: You Choose What Gets Protected

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2026-02-15

One simple but powerful advantage of the Bucket Approach over traditional Fixed Asset Allocation (FAA) is control over what you protect.

With buckets, you don't just allocate assets—you allocate expenses. You can decide exactly how much of your essential vs discretionary spending you want to secure in the debt bucket.

For example, you might protect 100% of essential expenses for the next five years, while covering only 20% of discretionary expenses. The rest remains flexible and market-linked.

This level of expense-level customization is hard to achieve with FAA, which treats all spending as homogeneous. Buckets align portfolios with real human behavior—not just averages.

Simple bucket strategies your clients can follow

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