Buckets of Money: How to Retire in Comfort and Safety (2004)
By Raymond J.Lucia
Most of what the author say is in American context. In 2012, he was accused by Securities and Exchange Commission for spreading misleading information.
Regardless of this, he has an interesting idea of putting your retirement planning in a few buckets of money. Or what to do when you are going to retire.
You have 3 buckets. In bucket number 1 you put your money for the next 5-7 years (for very safe and secure investments or those generating income – REITS) . Bucket number 2 is for the next 5-7 year period after that (can take some risk) . And finally, bucket number 3 is for the money you will not need for 10-14 years (can take more risk).
He has a few interesting Lucia’s Law that he talks about.
- The government isn’t going to take care of you.
- Don’t count on your employer to take care of you, either.
- It’s not what you make.. but what you keep that counts.
- If you don’t invest in stocks, you won’t be financially prepared for retirement.
- Too much trading can be hazardous to your wealth.
- Trying to pick the best mutual fund is an exercise in futility.