How the three-bucket approach can help you reach financial goals

As you plan your financial future, the three-bucket approach has emerged as a strategy that will help manage short-term, medium-term and long-term financial goals.

This article is Sponsored by Bright Wealth Management

BY BRIGHT WEALTH MANAGEMENT

Feb 28, 2025, 11:19 AM

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PHOENIX — As you plan your financial future, the three-bucket approach has emerged as a strategy that will help manage short-term, medium-term and long-term financial goals.

Diversification is a key component of the three-bucket approach. It will help balance a financial plan and make sure your investments don’t go into one place.

“It’s really important, no matter what strategy you’re implementing, that it’s diversified and that you have a plan in place,” said Matt Dages, president and founder of Bright Wealth Management.

“When we talk about any retirement plan, we don’t want all of our eggs in one basket, or really, we don’t want a concentration in one area whether that’s in a certain investment or a sector or maybe a certain tax status. We don’t want all of our income being tax-deferred because we don’t want this big tax burden.”

Assessing risk is another key factor in the three-bucket approach, especially when planning for retirement. Reducing risk becomes essential as the three-bucket approach can help assess how much you need in retirement planning.

Determining what three-bucket approach is a fit for you is important to keeping your financial plan on track.

For instance, a short-term bucket approach deals with cash and money market funds over a 1-3 year period, while a medium-term bucket approach deals with diversified portfolios and fixed index annuities over 3-10 years. A long-term bucket approach is key for dealing with factors such as Roth IRAs over 10 years and is important to maximize savings.

One company has emerged that will help you determine what three-bucket approach you need in your financial plan.

Bright Wealth Management is who to turn to for the three-bucket approach

Bright Wealth Management is the place to go that will help you utilize the three-bucket approach in your financial plan and help you save money.

Bright Wealth will help you see how the three-bucket approach fits your plan and how to minimize the risk and diversify your portfolio.

“You need a plan in place that’s going to diversify. That’s why we use the bucket strategy. Whether you’re using a three-bucket or a 10-bucket or whatever it is, there’s many different approaches, but you need to have different categories of risk,” Dages said.

Receive a complimentary consultation or call 833-777-4296 for more information.

The Bright Wealth Management Show with Matt Dages airs Saturdays from 1 p.m. to 2 p.m. and Sundays from 3 p.m. to 4 p.m. on 92.3 FM.