Bucketed RRIF Strategies
See these videos:
https://www.youtube.com/watch?v=XDJXStsMOdI https://www.youtube.com/watch?v=y62H0GFWLqM
Split your Retirement
Basically, bucket your money. Don’t invest everything the same way. So if you want to retire at 50, let’s say, divide your retirement into:
- Early (50-57)
- Middle (58-66)
- Late (67+)
The videos are American so Social Security is taken at 67. In Canada, it’s usually best to delay benefits (CPP/QPP/OAS) until 70 to get the maximum effect.
The point is that the late phase looks different than the earlier phases since
- You have government benefits and
- You tend to spend less at this age
In the video about what to do with 1.5 million, she divides retirement into two phases:
- 55-67
- 67+
In my case, I’m unlike to retire at 50, and 70 appears to be the government benefits magic number. So we have a couple of options:
- Early 55-61
- Middle 63-70
- Late 70+
Or just use two buckets:
- 55-70
- 70+
Investing
The Early bucket is meant to be the money you live on. This should not be in risky investments, but should be in cash, bond, treasury bills, etc.
The Mid bucket is your bridge. It exists to fill your early bucket when it goes down and the markets are good. Invest in a balanced ETF.
The Late bucket can be in high growth ETFs, like VGRO.