As we head into the summer months, it’s a perfect time to remember that financial planning isn’t just about long-term savings and retirement plans. We are a family-oriented business, and we know that spending the summer months having fun with your loved ones is one of life’s greatest joys.
That’s why we work with each one of our clients to help make sure they have the financial resources they may want for leisure activities with their families, not just immediate necessities and long-term investments. We want everyone to have the financial freedom they desire to live their life to the fullest, regardless of their age and income.
At the heart of our approach is what we like to call The Bucket Plan. The Bucket Plan is designed to help put you on the right course for short-term, mid-term, and long-term financial success by allocating your savings and investments in three distinct “buckets.” The middle bucket is the one that comes in most handy when it comes to planning your ideal family vacation, your dream golf trip, or your very own vision of summertime happiness.
Without further ado, here’s an overview of what The Bucket Plan entails – and why your “Soon” bucket can also be your “Summer Fun” bucket.
The Bucket Plan
The Bucket Plan is a comprehensive approach to financial planning that helps ensure you’re working toward your short-term, mid-term, and long-term goals simultaneously. The “Buckets” represent each of those three stages: Financial assets that are intended to be used “Now,” “Soon,” and “Later.”
The Now Bucket: The Now Bucket is money that is not invested and is typically made up of your emergency fund to cover planned expenses in the near future, as well as planned expenses or income you will need in the next year or two. In the Now Bucket, you are willing to sacrifice the rate of return that you may have otherwise earned if you had invested that money.
The Soon Bucket: Think of the “Soon” bucket funds that you may need sooner rather than later, typically the next 5-10 years. This could be used for retirement income or the activities you plan on in retirement, such as vacations, home updates or large purchases. The Soon Bucket targets a higher rate or return than the Now Bucket, but typically is more conservative than the Later Bucket due to the shorter time horizon.
The Later Bucket: Think of the “Later” bucket as funds invested for long term growth and legacy planning. Because the Now Bucket and Soon Bucket have bought you a time horizon to confidently ride out the ups and downs of the market.
Make Your “Soon” Bucket Work for You
Of those three buckets, the “Soon” bucket is often the most overlooked. It’s easy to understand why, as immediate and long-term financial asset preservation often take precedence over mid-range financial planning.
However, the “Soon” bucket can be a valuable resource in accomplishing your goals and increasing your quality of life.
At Financial Services of America, the first stage of our planning process with every individual begins with two simple questions: “What is important to you?” and “What do you want to accomplish?”
In many cases, the answers to those questions include things like planning a fun family vacation, purchasing a boat, or buying a summer home. Those are precisely the kinds of mid-range purchases that your “Soon” bucket can help fund – designed to have little to no impact to your short-term and long-term finances.
With that in mind, it’s time to start treating your “Soon” bucket with the same care as any other stage of your lifelong financial planning. Our team of trusted advisors would be happy to help you create a Bucket Plan custom-built for your goals, and it all starts with a simple conversation.
Reach out to us to get started today. If you’re ready to take the next step and schedule a meeting with one of our advisors, find an available time here.
Disclaimer
Insurance products are offered through the insurance business Financial Services of America (FSA). Financial Services of American (FSA) is also a Financial Services practice that offers securities products and services through AE Financial Services, LLC (AEFS), member FINRA/SIPC. Financial Services of America (FSA) is also an Investment Advisory practice that offers investment advisory products and services through FSA Advisors (FSAA), a Registered Investment Advisor. AEFS and FSAA do not offer insurance products. The insurance products offered by Financial