Thoughts on investing in current market climate

[freebird5825]

No, it's perfectly legit and it makes sense, IMO. It's just really just a different way to look at asset allocation -- as a number of years of income rather than as a percentage. We usually talk about asset allocation in terms of a percent of assets -- for example, "60% in stocks and 40% in bonds." A "buckets" approach looks at allocation a different way -- several years of immediate income needs in cash, a few more in somewhat more volatile investments, and the rest in stocks that won't need to be "sold low" for at least 14 years. The thinking is that your "safe money" buckets will have a chance to be replenished during a time when stocks are higher -- pretty likely at some point in a 14-year period.

thanks so much for your help.
i'll do some reading and maybe come back with the usual "dumb questions" we newbies are so good at.
i think i may already be doing a little of the "bucket" approach unconsciously with my VWAHX bond fund. i'm building that up thru DCA and treating that separately from the rest of my long term portfolio for a specific near-term purpose (generate tax free income to pay my property taxes). Yes? No?