If you’re looking to retire within the next decade, it’s crucial to have a financial plan that’s built to withstand the unpredictable nature of the market.

It’s also particularly important to have a plan that accounts for the short-term need for stability while ensuring long-term growth potential.

A Strategy to Safeguard Your Retirement Savings Against Market Volatility

The Bucket Plan® is an allocation strategy that divides your assets into “Now,” “Soon,” and “Later” buckets, each serving a distinct purpose in your retirement strategy. The “now” bucket is designed for immediate expenses, ensuring liquidity and stability. The Soon bucket aims to protect against short-term market fluctuations, providing income in the early retirement years. Finally, the Later bucket is focused on long-term growth, designed to sustain you throughout your retirement years.

Applying a comprehensive financial planning process like the Bucket Plan® to your Thrift Savings Plan (TSP) and working with a seasoned financial fiduciary who knows the ins and outs of your government benefits can make all the difference in securing a comfortable retirement.

At Better Federal Retirement, we can help you avoid these common investing mistakes and more.

Avoiding Market Timing Missteps

As retirement approaches, the temptation to time the market to maximize returns or minimize losses can be strong. However, this approach can often lead to missed opportunities. Significant gains can occur in brief, unpredictable bursts, and being out of the market during these times can have a lasting impact on your retirement savings.

The Bucket Plan® strategically positions you to remain invested, capturing potential gains without the risk of missing out due to poor timing.

Diversification Over Trend Chasing

With retirement on the horizon, it can be risky to overconcentrate your investments in the latest market darlings or, highly favored and often unquestioned stocks. Doing so can lead to volatility that might not be ideal for your portfolio as you near retirement.

Remember, even the most talked about stocks can falter. The Bucket Plan® ensures your investments are spread across various asset classes, helping to mitigate risk and aim for steady growth.

Looking Beyond Past Performance

Selecting investments based solely on past performance might seem logical but doesn’t guarantee future success. Especially as you approach retirement, choosing investments that align with your future goals and risk tolerance is more beneficial than chasing yesterday’s winners.

The Bucket Plan® focuses on building a strategy that considers your specific retirement timeline and financial needs, rather than relying on past fund performances.

The Role of an Advisor in Retirement Planning

Managing investments on your own as a soon-to-be retiree can be daunting. At Better Federal Retirement, we can offer not only expertise in market trends and investment strategies but also an understanding of the complexities of retirement planning, especially as it relates to federal employees and their benefits.

By partnering together, we can design a personalized, diversified investment strategy that reflects your retirement aspirations and risk comfort level.

In essence, approaching retirement with a robust plan like the Bucket Plan, coupled with the guidance of a trusted financial advisor, can help you navigate the complexities of retirement saving with confidence.

Together, we’ll work to avoid common pitfalls, embrace diversification, and keep a trained eye on your long-term retirement needs, to help ensure you’re positioned to enjoy these years feeling secure and fulfilled by your financial plan.

A Better Federal Retirement Starts Here

Ready to safeguard your retirement savings against market volatility and common investing mistakes?

Let’s work through this proven Bucket Planning process together, to help you secure a better federal retirement you’ve worked so hard for!

Contact Better Federal Retirement to learn how to make the most of your federal benefits with an investment and allocation strategy personalized to you.