The traditional bucket strategy works well for predictable cash flow needs, but it becomes inefficient for large future expenditures. Fully funding a major expense ten years in advance forces too much capital into low-return assets for too long.

A better approach is gradual apportionment into the safety bucket. If the large expense is ten years away, have 10% of the required amount in the safety bucket in year one, 20% by year two, 30% by year three, and continue increasing the reserve annually until 100% is set aside by the final year. This creates a time-based liquidity glide path.

Large one-time expenses are funded progressively, preserving growth exposure without sacrificing eventual certainty.