![BUCKET YOUR WORRIES AWAY](https://cdn.magzter.com/Outlook Money/1711969031/articles/PfaZuj4VA1711978061693/BUCKET-YOUR-WORRIES-AWAY.jpg)
For those who retire with a sizeable corpus, it’s very easy to get tempted into spending it on fulfilling some of their dreams—travelling around the world, buying a bungalow, acquiring a lavish lifestyle, and so on. But it would be wrong to assume that just because the sum seems large, the struggles are over, and one can retire in style.
To accumulate a sizeable corpus is like solving only one part of the puzzle. The other part is about deploying the savings in a way that it lasts a lifetime, while allowing you to pursue hobbies you could not take time out for during your working life.
If you don’t do the calculations right at the beginning, you stand the risk of outliving your savings. To be really able to retire peacefully, you will need regular cash flow, while also ensuring that your corpus grows at the same time, so that you don’t fall short later. In other words, you will need to maintain the same rigour in money management in your retirement years as you did in the accumulation or investing phase.
One way to ensure that is to resort to the bucketing strategy, which is recommended by most financial planners. Says Lovaii Navlakhi, a Securities and Exchange Board of India (Sebi)-registered investment advisor and managing director (MD) and chief executive officer (CEO) of International Money Matters, a Bengaluru-based financial advisory firm, “Planning for retirement is filled with anxiety and uncertainty as you know that you do not have additional income to pump in to recover from any downside in your investments. Hence, it is prudent to have a multi-bucket strategy during this tenure.”
Let’s understand how bucketing strategy works and how you can use it effectively in your retirement years.
How To Create Buckets?
This story is from the April 2024 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2024 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![Guide To Build Your MF Portfolio](https://reseuro.magzter.com/100x125/articles/242/1787367/8SrFWm-UP1722859674427/crp_GUIDE-TO-BUILD-YOUR-MF-PORTFOLIO.jpg)
Guide To Build Your MF Portfolio
There are ‘n’ number of funds to choose from and one has to scrutinise several factors, besides just past returns, to make a bouquet of funds that best aligns to one’s goals
![Self Image: Ticket To Success?](https://reseuro.magzter.com/100x125/articles/242/1787367/E6FeTvE9j1722860346019/crp_SELF-IMAGE-TICKET-TO-SUCCESS.jpg)
Self Image: Ticket To Success?
Your capacity for success will be altered according to the image you have of yourself. So, set it on the right trajectory to move to a higher level
![What Budget 2024-25 Means For You](https://reseuro.magzter.com/100x125/articles/242/1787367/jtkqG1Bp-1722858418527/crp_WHAT-BUDGET-202425-MEANS-FOR-YOU.jpg)
What Budget 2024-25 Means For You
Finance Minister Nirmala Sitharaman announced a few changes in the new tax regime, while leaving the old one untouched. The government also increased taxes on long-term capital gains. We decode what the Budget means for you
![Factor Investing In Mutual Funds](https://reseuro.magzter.com/100x125/articles/242/1787367/8O9EP0i321722861678351/FACTOR-INVESTING-IN-MUTUAL-FUNDS.jpg)
Factor Investing In Mutual Funds
A blend of active and passive fund management approaches, factor investing offers diversification, but investors should ensure these factors align with their goals and risk profiles
![Mistakes to Avoid in the Retirement Planning Stage](https://reseuro.magzter.com/100x125/articles/242/1787367/t529ajgQU1722861357816/MISTAKES-TO-AVOID-IN-THE-RETIREMENT-PLANNING-STAGE.jpg)
Mistakes to Avoid in the Retirement Planning Stage
Not starting early, not looking at retirement planning holistically and not consulting a financial advisor are among the top mistakes one should avoid
![Asset Allocation Is Akin To Picking A Cricket Team; Here's Why](https://reseuro.magzter.com/100x125/articles/242/1787367/MrLzGEA6P1722861149111/ASSET-ALLOCATION-IS-AKIN-TO-PICKING-A-CRICKET-TEAM-HERES-WHY.jpg)
Asset Allocation Is Akin To Picking A Cricket Team; Here's Why
Judicious asset allocation will enable you to generate maximum gains and achieve different goals at different intervals by effectively positioning them according to the market situation.
![EMI VS SIP Debate: Which Path Aligns with Your Financial Goals?](https://reseuro.magzter.com/100x125/articles/242/1787367/3KyGxaF9r1722860902496/EMI-VS-SIP-DEBATE-WHICH-PATH-ALIGNS-WITH-YOUR-FINANCIAL-GOALS.jpg)
EMI VS SIP Debate: Which Path Aligns with Your Financial Goals?
Although EMls may seem initially manageable, the final cost can be much higher; SIPs, on the other hand, focus on capital appreciation through marketlinked investments rather than capital repayment.
![Mutual Fund SIP: Tool to Make The Impossible Possible](https://reseuro.magzter.com/100x125/articles/242/1787367/mWz6sTaUx1722860785612/MUTUAL-FUND-SIP-TOOL-TO-MAKE-THE-IMPOSSIBLE-POSSIBLE.jpg)
Mutual Fund SIP: Tool to Make The Impossible Possible
A mutual fund systematic investment plan allows you to reinvest the interest earned into the fund, thus helping you to build a big corpus even with small contributions over the long term.
![Why are Manufacturing Funds Worthy of Your Portfolio?](https://reseuro.magzter.com/100x125/articles/242/1787367/ZlLIPM8nB1722860615429/WHY-ARE-MANUFACTURING-FUNDS-WORTHY-OF-YOUR-PORTFOLIO.jpg)
Why are Manufacturing Funds Worthy of Your Portfolio?
India's manufacturing sector greatly impacts fields like logistics and maintenance, making this thematic fund a strong addition to your investment portfolio.
![How To Help Your Ageing Parents](https://reseuro.magzter.com/100x125/articles/242/1787367/YhyqF96sC1722860258130/HOW-TO-HELP-YOUR-AGEING-PARENTS.jpg)
How To Help Your Ageing Parents
Experts discuss how financial conversations with parents need a big dose of sensitivity, and highlighted the needs of seniors to help those caring for their parents