As a child, I’d visit my grandparents’ dairy farm and help out with the chores. I used to feed the pigs with a squeaky-handled bucket. I’d take the filter out of the dented milk bucket to let the kittens lick the milk off of it. I would use a large aluminum bucket to feed the chickens and cows. A farm couldn’t operate very well without a diverse collection of buckets.
These days, there is a lot of talk about using income buckets to generate paychecks for life. During my weekly calling time, when I reach out to friends who are not yet my clients, I contacted a former CFO. While talking with him, I discovered he was getting proposals from big city private wealth management boutiques and international wirehouses for his IRA decisions. This person not only had $1 million in his IRA, but also another $3 million stashed away in various banks and brokerage accounts. He asked me, “What do you think about income buckets?” I responded, “Well, what do you mean by ‘income buckets’ anyway?”