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Protecting Legacy Through Bucketing
2026-05-06
Bucketing can be used not only to protect future expenses, but also to protect a desired legacy amount. Two methods can be used to gradually secure the legacy target.
The first is a progressive allocation method, where the reserved percentage increases each year. For example, if the horizon is 20 years, the protected amount can increase by 5% annually so that 100% of the legacy amount is reserved in the final year.
The second is a time-phased method, where a fixed percentage of the legacy amount is reserved for several years and then increased in steps as the target date approaches.
Unlike a fixed asset allocation (FAA), bucketing allows targeted protection of specific goals, which can help reduce uncertainty and anxiety for retirees.
Simple bucket strategies your clients can follow
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