Cash-Bond-Stock Framework

Plan a retirement portfolio with the bucket strategy: cash for the next few years, bonds for the middle years, and stocks for long-term growth.

$

$100,000 per year

Bucket allocation

Split your 25 years of spending across cash, bonds, and stocks. Move any slider and the others rebalance to keep the total at 25 years.

yrs

Near-term spending

yrs

Medium-term stability

yrs

Long-term growth

Your target portfolio

$2,500,000

Based on the 4% rule: 25 times your annual withdrawal. The bar shows which bucket funds each year of retirement.

Cash

RiskLow
Expected return1–4%
Sample fundVMFXX or HYSA

Bonds

RiskMedium
Expected return4–6%
Sample fundVBTLX or BND

Stocks

RiskHigh
Expected return6%+
Sample fundVTSAX or VTI
How the bucket strategy works

The bucket strategy splits your retirement portfolio into three time horizons. Each bucket holds the right kind of asset for the years it's expected to fund.

Cash covers the early years of spending. It earns little, but it's available no matter what the market does. Bonds handle the medium term: steadier than stocks, with modest returns. The rest sits in stocks, which have decades to grow through the market's ups and downs.

The 25-year framework corresponds to the well-known 4% rule.

For education only. Not financial advice. Sample funds are illustrative.