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Fritz's Bucket Strategy
- Establish a cash bucket with 3 years of expenses to mitigate sequence of returns risk.
- Supplement this with bonds or REITs for 5-6 years of expenses in a second bucket.
Karsten's Critique
- Karsten Jeske views the bucket strategy as "window dressing."
- He prioritizes broad asset allocation (60/40 to 80/20 stocks/bonds) and doesn't overthink short-term withdrawals.
Karsten's 2022 Strategy
- In 2022, Karsten primarily drew from bonds and dividends to generate income.
- He then rebalanced his portfolio back to the target allocation.