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Old 10-03-2007, 04:32 AM   #21
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you rebalance between buckets based not on gains but on years worth of money. thats the big difference. you can balance between what you have in the buckets if you so choose but not necessary unless you have sector funds or areas that really sored ala tech heavy funds in the 90's.


the whole idea is that rays plan revolves around getting a certain average return from each bucket with a risk level to match that income you desire.

if you have 7 years money in bucket 1 and bucket 2 you may choose to leave bucket 3 alone even though it may have had a large run up...

or you may choose to just balance out bucket3 moving to different style funds. its a lot more interesting than just when you rebalance by percentages in stocks bonds or cash
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Old 10-03-2007, 04:34 AM   #22
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Quote:
Originally Posted by Rich_in_Tampa View Post
Don't know of anyone who would count on 8% from B2 (though you might get lucky with a balanced fund); 6% is more like it, with 8% being a conservative assumption for B3.

Do yourself a favor and get the buckets book from your library (Lucia). Even if it doesn't work for you at least you'll understand it better. It's a reasonably entertaining read.

i agree, rays working numbers are 4% in bucket 1 and 5% in bucket 2. with an overall % for all buckets of around 7% in my case
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Old 10-03-2007, 07:19 AM   #23
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Quote:
Originally Posted by mathjak107 View Post
i agree, rays working numbers are 4% in bucket 1 and 5% in bucket 2. with an overall % for all buckets of around 7% in my case
I like the first book, he kept it pretty simple and it includes the tables
to make calculating how much in each bucket.

Lately he has been modifying it with more buckets and more complex
strategy, including moving $ between buckets going in both directions.
Moving $ from B2 to B3 only makes sense if B2 is overfunded, which it
will be if you have moved $ from B3 to B2. Personally I think he is making
too complicated (but you got sell more books I guess).

Lately he has been pushing life annuities because some study said you
have a better chance of not outliving your investments if you have up
to 50% of your income from annuities. To me, if you use buckets, you
don't need annuities because you have a safe investment to withdrawal
while the rest of your investments recover.

The radio show is pretty good, but sometimes the size of his ego annoys
me. The whole "brain trust unmatched anywhere on this planet" <we need
a smiley face throwing up>
TJ
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Old 10-03-2007, 12:29 PM   #24
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Quote:
Originally Posted by teejayevans View Post

Lately he has been modifying it with more buckets and more complex
strategy, including moving $ between buckets going in both directions.
Moving $ from B2 to B3 only makes sense if B2 is overfunded, which it
will be if you have moved $ from B3 to B2. Personally I think he is making
too complicated (but you got sell more books I guess).

Lately he has been pushing life annuities because some study said you
have a better chance of not outliving your investments if you have up
to 50% of your income from annuities. To me, if you use buckets, you
don't need annuities because you have a safe investment to withdrawal
while the rest of your investments recover.

The radio show is pretty good, but sometimes the size of his ego annoys
me. The whole "brain trust unmatched anywhere on this planet" <we need
a smiley face throwing up>
TJ
Yes, where is that throw-up smilie. Imagine, a self help book that tells me the premise is too complicated for a DIYer and I must go out a look for an adviser. Poorly written books, (although most basic financial advice books are skim and toss back in the library), his are particularly annoying. Not to worry, his resale value is good at Amazon.

Curious aside: Both my local independent bookstore and membership library do not stock his books; perhaps a "West Coast bias" but I wonder. If any library patron had requested purchase of his books, they would be on the shelf. This particular library, costing $100/yr membership, has many wealthy patrons many many of whom are retired and the finance section is generally very good, including newletters.
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