Bucket strategies for the retirement portfolios
Bucket strategies are an alluring alternative for financial advisers building drawdown portfolios in
retirement. Generally, end clients find the strategy understandable, it can be relatively easy to
implement and it plays into a well-known behavioural bias known as mental accounting1. This makes
discussions between an adviser and the investor easier and can assist the investor in staying the
course during difficult periods. Managing expectations and client composure is a very important
component of the value add a financial adviser can offer.