I don't like the bucket approach.
I do track how much I have in different types of investments, because I think my AA is relevant to my portfolio survivability.
I have 0.3 years of expenses in cash. I have 3.6 years in bonds. I have 52.5 years in stocks. My SS NPV is 14.6 years equivalent.
My general plan is to spend from my cash bucket, refill from stocks/bonds every few months, and reallocate stocks/bonds to my target AA periodically. The next time the market drops "quite a bit" I'll shift my allocation even more towards stocks. (I'll probably also get a queasy feeling about then as well. But I am a
steely eyed missile man.)
I am 50 and have a net WR of 0.46%, which gives me a great deal of safety margin and enables me to have a high stock allocation and a low cash buffer.