A Bucket Approach to Investing

Investing is a Tool for Building Wealth

By: Mary Wood | Category: Financial Services | Issue: February 2018

Legendary investor Warren Buffett defines investing as
“… the process of laying out money now to receive more money in the future.”
The key to successful investing is setting clear-cut goals. Know what you want, the cost to get it and how long you have to save.
We all have different comfort levels when it comes to investing our money. We call this risk tolerance. The concept of risk tolerance refers not only to your level of comfort in taking a risk, but also your financial ability to endure the consequences of loss.
Therefore, when it comes to investing, there is no one- size-fits-all strategy.  When I talk about investing with my clients, I like to use a bucket visualization. Imagine investing as three buckets.
Everyone needs to begin with a foundation - bucket one. This is your readily available cash, including your savings, emergency fund and short-term investments.
Once you have bucket one filled, you are ready to toss money into buckets two and three, your mid-term and long-term goals. The amount you invest in each bucket varies by your time horizon and risk tolerance. Bucket two consists of low-risk investments while bucket three is long-term, higher growth risk investments.
As with any plan, it is important to monitor your portfolio to ensure you stay on track with your goals.
If you plan to work with a financial advisor, make sure they are working for you with your best interest in mind. It’s important that you have an open line of communication with your advisor.
I am here to help answer questions you may have about investing even if you are not an RCB Bank customer. Feel free to call me at 918.342.7100 or email eat0@eau0eav0eaw0.
Get more financially fit tips at RCBbank.com/GetFit.


Jersey Mike's: Voted Best Sub in Virtually Every Market We Serve!
« All February 2018 Stories

RCB Bank Financially Fit

For more information, contact:


More about RCB Bank Financially Fit:

Top Stories

´╗┐Turning a Stumbling Block Into a Stepping Stone

Parents with kids in school will be the first to tell you that education comes with unique challenges for each child, especially when it comes to homework. ... Read more »

New Tax Laws? No Problem!

Carri Shockley is the Founder and President of Shockley Bookkeeping.  They have a great reputation for helping small business clients throughout Broken Arrow and th…... Read more »

2018 Operation Art Gala

If there were a sure way to prevent your child from harm, you’d be quick to do whatever it takes. ... Read more »

Kitchen and Bath Dream Maker

In its infancy, Tile by Tony, Inc. (TBT) was all about flooring. It has grown from its humble beginnings, however, to a full-service contracting business. ... Read more »

The Sooner the Better

A thick, lush, head-turning landscape in the summer starts in winter. So much of caring for a lawn comes down to knowing what needs to be done and when to do it. ... Read more »