Listener Questions: Investment Edition, Ep #120

<p>In this episode of the Retirement Made Easy podcast, I focus on some listener questions that I’ve received that have to do with investing. I’ll share what the questions are and address why I don’t give out advice on specific investments. However, I will share some best practices and talk about why retirement planners get into the nitty-gritty details. Don’t miss it!</p> <p> <<<<<<<<<<<<<<<PLAYER CODE GOES HERE>>>>>>>>>>>>>>>></p> <h2>You will want to hear this episode if you are interested in...</h2> <ul> <li>[3:13] Question #1: What do you invest in your buckets?</li> <li>[8:50] Question #2: Does our retirement plan work?</li> <li>[14:42] Question #3: Why do retirement planners make retirement complicated? </li> </ul> <h2>Question #1: What do you invest in your buckets?</h2> <p>One of my listeners, Ann, asked how to invest the three buckets and what accounts should go in each (if you’re not familiar with my bucket strategy, listen to the episode <a href= "https://retirementmadeeasypodcast.com/why-i-love-the-retirement-bucket-strategy-ep-24/" target="_blank" rel="noopener">here</a>). Here is a breakdown of the buckets and what types of investments might make sense in each: </p> <ul> <li><strong>Bucket #1</strong>: In the emergency fund bucket you can include money markets, checking, savings, or high-yield bank or credit union accounts. This bucket needs to be <em>liquid</em>.</li> <li><strong>Bucket #2</strong>: The income bucket needs to, well, provide income. This income needs to be reliable. It could be dividends, interest, annuities, etc. But this isn’t the only way you can invest. </li> <li><strong>Bucket #3</strong>: The growth bucket is meant to protect you from the rising cost of living. Every year, everything you buy will cost more. This bucket needs to be invested to help you get ahead—and stay ahead—of inflation.</li> </ul> <p>Why won’t I give specific investment advice? The investments in each bucket won’t be the same for everyone. For example, if a couple both have pensions and social security, th