One of the biggest threats to retirement security isn’t just market losses—it’s when they happen. A bad market early in retirement can shrink portfolios so much that even future gains don’t restore balance. This is known as sequence-of-returns risk. Retirees who draw income at the wrong time may run out of money faster than expected. Using a bucket strategy—dividing money into pools for different timeframes—can reduce the risk and create stability. Here are eight income buckets retirees can build to weather market ups and downs.
