Resilience-First Portfolio Construction

Executive summary

Resilient portfolios are constructed for survivability first and return second — particularly within 10 years of retirement.

• 3-bucket strategy: cash, bonds, equities
• Cash bucket = 2 years spending
• Bond bucket = 5 years spending

Key takeaways

• 3-bucket strategy: cash, bonds, equities
• Cash bucket = 2 years spending
• Bond bucket = 5 years spending
• Equities = remainder + growth

Key strategies

1. Strategy 1

   3-bucket strategy: cash, bonds, equities

2. Strategy 2

   Cash bucket = 2 years spending

3. Strategy 3

   Bond bucket = 5 years spending

4. Strategy 4

   Equities = remainder + growth

Pro-tips checklist

• Refill cash from bonds annually
• Refill bonds from equities when up >10%

FAQ