Retirement Bucket Strategy – Segment Cash, Bonds, and Stocks for RMDs

Why buckets pair well with RMDs

They reduce sequence risk and make annual RMD sourcing straightforward.

Classic 3‑bucket layout

• Bucket 1 (Cash): 12–24 months spending
• Bucket 2 (Bonds): next 3–7 years spending
• Bucket 3 (Equities): long‑term growth

Refill rules: harvest from equities after good years to top up cash/bonds; pause equity refills after bad years.

Implementation checklist

• Define annual spend and RMD expectations
• Size buckets accordingly
• Automate refill review each year post‑RMD

Example

Spend $96k/yr → Cash $96–192k; Bonds $300–500k; Equities remainder. Use RMD plus dividends/interest to keep cash full.

Related guides

• RMD Withdrawal Timing: /calculator/rmd-withdrawal-timing
• RMD Tax & Withholding Strategies: /calculator/rmd-tax-withholding-strategies
• RMD Factor Table: /calculator/rmd-factor-table

Related keywords we cover

• retirement bucket strategy calculator, cash bucket 24 months
• bond ladder for rmd, guardrails method
• cash/bond sleeve sourcing for rmd