The Bucket Approach for Investing in Your 50s

Pouring your savings into three different buckets is a handy way to get ready for retirement. Here's what goes into each of your buckets.

(Image credit: calvio)

Planning for retirement is not as simple as it was for your parents. Retirement income used to be a three-legged stool: pension, Social Security income and savings. Recently, companies have been doing away with pension plans and Social Security does not cover nearly enough of an individual's retirement income needs.

Most savers are in their peak savings ability in their 50s, and it’s important time to build your buckets efficiently. To better balance your retirement savings, you should diversify your tax positioning. This can be done by contributing to three “buckets”: taxable, IRA (pre-tax) and Roth (post-tax).

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Joseph C. Conroy, CFP
Financial Adviser, Harford Retirement Planners

Joseph C. Conroy is a CERTIFIED FINANCIAL PLANNER™ professional who is passionate about helping his clients pursue their goals. He founded Harford Retirement Planners to provide objective advice and knowledge to his clients. By partnering with an independent broker dealer, it allows Joe to sit on the same side of the table as his clients. It is this experience, working with many individuals over the years from many backgrounds, which inspired Joe to write the book "Decades & Decisions."