A holistic investment strategy, built around your income.
A holistic investment strategy is based on your goals for growth and income from your assets. We develop strategies with you on how to allocate your assets in retirement and non-retirement investments, real estate, commodities, and/or collectibles.
Four steps, then three buckets.
First we plan your income, your protection and your taxes. Then the rest of your portfolio goes to work in three buckets, each with its own job.
The four steps
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Step 1: Anticipate income needs two years before needed
Plan withdrawals ahead, so the money is ready when you need it and nothing has to be sold in a hurry. Determine when large distributions are desired.
Plan ahead for
- Regular income
- Large purchases
- Gifts to family
Ask yourself What large expenses do I expect in the next two years?
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Step 2: How much do you want protected?
How much of your assets do you want to have protected against loss of value or loss of income? Not every dollar needs the same protection. Deciding how much does is the starting point.
Protect against
- Loss of value
- Loss of income
Ask yourself How much could my savings drop before I’d change my plans?
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Step 3: Estate and tax efficiency of assets
Where your assets are held, and how they pass on, affects how much you and your family keep. We look at the taxes along the way and what happens when assets pass to your heirs.
We look at
- Taxes now
- Taxes later
- Passing to family
Ask yourself Do I know how each account is taxed, and who it passes to?
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Step 4: Maximize the remainder of your portfolio
Once income, protection and taxes are planned, the rest of your portfolio can be positioned to grow. That’s where the three buckets come in.
Built on
- Income planned
- Protection in place
- Taxes considered
Ask yourself Is the rest of my money working as hard as it can?
The three buckets
Goal: maximize your investment portfolio. Each bucket has one job, and together they cover the years ahead.
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Bucket 1
Bonds and Cash
10% of assets
2 years of income
Steady and easy to reach: the money your next two years of income come from. Because it is steady, market swings do not decide when you can draw your income.
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Bucket 2
50/50
35–45% of assets
Income Assets Used In Years 3 to 9
A balanced mix of stocks and bonds, for the income you’ll need in the years after that. It refills bucket one over time.
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Bucket 3
Stocks and Equities
50–55% of assets
Positioned for growth
Positioned for long-term growth. Because the next decade of income is already covered by the first two buckets, this money has time to ride out the ups and downs.
The percentages are general guidelines, not a recommendation for any one person. Your allocation is set around your own income needs and goals. All investing involves risk, including the possible loss of principal.
Let’s build your strategy together.
We work through all four steps with you, then fill the three buckets around your own income needs and goals.
- Income first. We plan the next two years of withdrawals before anything else, including any large purchases or gifts to family.
- Taxes and estate, alongside your CPA and attorney. We coordinate with your CPA and estate attorney on how each account is taxed and who it passes to.
- Fiduciary, every time. We’re required to recommend what’s best for you, and we show our reasoning.
Getting close to retirement? See Planning Retirement, or take the free Retirement Blind Spot Check.
Straight answers
What is a holistic investment strategy?
A holistic investment strategy is based on your goals for growth and income from your assets. We develop strategies with you on how to allocate your assets in retirement and non-retirement investments, real estate, commodities, and/or collectibles.
What are the three buckets?
Bonds and cash, about 10% of assets, holding about two years of income. A 50/50 mix of stocks and bonds, about 35% to 45% of assets: the income assets used in years three to nine. And stocks and equities, about 50% to 55% of assets, positioned for long-term growth.
Are the bucket percentages the same for everyone?
No. The percentages are rules of thumb. Your allocation is set around your own income needs and goals.
Why plan income two years ahead?
Planning withdrawals ahead means the money is already in place when it is needed, so nothing has to be sold at a bad time. Part of this is determining when large distributions are desired: a home project, a car, helping family.
How do you decide how much to protect?
The answer is personal. It depends on your income needs, your other sources of income, and how you would feel watching part of your savings go down.
Do you work with people outside Minnesota?
Yes. Every meeting is a virtual appointment, so we work with people anywhere in the United States, and the first conversation is free.
See what your three buckets would look like
Bring your accounts and your income goals, and we’ll sketch the four steps and three buckets around them. No cost, no obligation.
No office to walk into. Just a virtual appointment from home.