Economic Calendar

Key Events and Reports Impacting Your Investment Decisions

Investors and traders continuously seek tools to make informed decisions, and an economic calendar serves as a vital resource. Checking an economic calendar gives insight for significant events and reports that can influence market movements and economic trends, ultimately affecting your investment strategies.

Stock and Crypto Daily News

Understanding Market Trends

Markets are affected by a multitude of factors, ranging from economic indicators and corporate earnings reports to geopolitical developments and market sentiment. By regularly reading stock and crypto news updates, investors can gain a clearer picture of current market trends. Understanding these trends helps investors to identify potential opportunities and risks in a timely manner.

Here are some simple guidelines to help you navigate investing at retirement age, complete with examples to illustrate each point.

Sample 3-Bucket Portfolio Strategy for Retirement

Creating a robust retirement portfolio is crucial for ensuring financial stability in your later years. One popular strategy is the 3-bucket approach, which segments your investments into three distinct categories or "buckets," each serving a unique purpose and time horizon. Below, we provide a sample of how to construct a 3-bucket portfolio strategy using ETFs (Exchange-Traded Funds) or mutual funds that aligns with your retirement goals.

Bucket 1: Short-Term Needs (0-5 years)

This bucket is designed to meet your immediate cash flow needs and should be low-risk and highly liquid. The goal is to preserve capital while providing some growth to counteract inflation.

Suggested Investments:

1. Money Market ETF (e.g., SPDR Bloomberg Barclays 1-3 Month T-Bill; ETF- BIL):

- Purpose: Provides a safe place to keep cash while earning a small amount of interest.

- Risk Level: Very low.

2. Short-Term Bond Fund (e.g., Vanguard Short-Term Bond Index Fund - VBISX):

- Purpose: Invests in short-term government and corporate bonds, offering a bit more yield than money markets.

- Risk Level: Low to moderate, with some potential for interest rate fluctuations.

3. Cash Savings Account: (e.g., High Yield Savings Account or Fidelity Cash Management Account)

- Purpose: This offers maximum liquidity for unexpected expenses or emergencies.

- Return: Interest rates may vary, but it provides immediate access to funds.

Allocation Example: 30% of Total Portfolio

The focus is on maintaining liquidity and capital preservation to cover living expenses for the first 3-5 years of retirement.

Bucket 2: Mid-Term Needs (5-15 years)

The second bucket focuses on generating income and moderate growth for expenses that will arise within the next 5 to 15 years. It can absorb more volatility than Bucket 1 but should still prioritize safety.

Suggested Investments:

1. Dividend Growth ETF (e.g., Vanguard Dividend Appreciation ETF - VIG):

- Purpose: Invests in companies with a strong history of growing dividends, providing income as well as potential capital appreciation.

- Risk Level: Moderate, subject to market fluctuations.

2. Balanced Fund (e.g., Fidelity Balanced Fund - FBALX):

- Purpose: A mix of equities and bonds that automatically rebalances; good for maintaining exposure to both growth and stability.

- Risk Level: Moderate.

3. Intermediate-Term Bond Fund (e.g., iShares Core U.S. Aggregate Bond ETF - AGG):

- Purpose: This fund invests in a diverse mix of U.S. bonds, providing income and less volatility than stocks.

- Risk Level: Moderate.

Allocation Example: 40% of Total Portfolio

This bucket aims to grow your investments to cover your needs in the mid-to-long-term while providing a steady income stream.

Bucket 3: Long-Term Growth (15+ years)

The third bucket is focused on long-term growth, utilizing more aggressive investments. It's designed to last beyond other buckets and can weather market downturns due to its long investment horizon.

Suggested Investments:

1. Total Stock Market ETF (e.g., Vanguard Total Stock Market ETF - VTI):

- Purpose: This fund offers exposure to the entire U.S. stock market, which historically has provided higher returns over the long term.

- Risk Level: Higher but necessary for potential capital gains.

2. International Equity Fund (e.g., iShares MSCI ACWI ex U.S. ETF - ACWX):

- Purpose: Diversifies your portfolio by investing in companies outside of the U.S. to capture growth from international markets.

- Risk Level: Higher due to foreign market volatility.

3. Real Estate Investment Trust ETF (e.g., Vanguard Real Estate ETF - VNQ):

- Purpose: Provides exposure to real estate markets, which can be an effective hedge against inflation and an income source.

- Risk Level: Moderate to high, with potential for sector-specific risks.

Allocation Example: 30% of Total Portfolio

This bucket works for growth to ensure that your wealth continues to grow over time, supporting a potentially longer retirement period.

The 3-bucket strategy offers a balanced approach to retirement planning by dividing assets into short, mid, and long-term horizons. Each bucket plays a crucial role in managing risk, income, and growth potential. By carefully selecting investment vehicles like ETFs and mutual funds that align with your goals and risk tolerance, you can create a dynamic portfolio designed to provide financial security in retirement.

Consider periodically reviewing and rebalancing your buckets as you age and your financial situation changes. Consulting with a financial advisor can further tailor this strategy to your specific needs and ensure you stay on track for a successful retirement.

Our Focus

Helping you navigate safer investment choices with confidence.

Bonds

Reliable income through government and corporate bonds.

Dividend Stocks

Stable companies offering regular dividend payouts.

Savings Accounts

Secure interest earnings with easy access to funds.