Everyone has a story! I recently went to Paris and while travelling on my Jetblue flight I wondered what they were for some of my fellow travelers. How many were retirees taking that long-awaited visit to the Louvre, how many were pre-retirees anxious to visit the newly-restored and re-built Notre Dame cathedral, and how many were young couples looking to explore the “foodie” scene.
As I thought about those situations, being an investment professional, I also thought about their likely investment profiles! Some could have enough wealth to easily afford the trip while others could have skimped and saved to get on a plane and spend some hard-earned money on the experience. Everyone has a different story and requires a personalized approach to their wealth management.
The portfolio of Dattilio & Ash clients is quite diverse ranging from young professionals to those late into retirement. For some clients with more complicated situations, we often try to simplify their investment strategy with something called the “Bucket Approach”.
The Bucket Approach looks at short-, medium- and long-term horizons and specifies the potential cash flow needs in each. For example, if there is a short term need to fund something like college expenses we will allocate enough funds from their investment portfolio into a conservative strategy for that bucket, thus ensuring that there are enough funds available to fund that goal. Whatever is left over goes into the medium- and long-term buckets to help grow investments for pre-retirement and retirement horizons.
This strategy helps our clients avoid selling investments in down markets to fund shorter term goals - something that’s especially helpful in years like this one. As of today, the S&P 500 has already hit 13 new all-time highs in 2025. That’s a remarkable run, but also a reminder that markets move in cycles. With a thoughtful approach, you can take advantage of the good times while also being prepared for the inevitable bumps along the way.
Another version of the Bucket Approach looks at a client with a desire to generate some spendable income from their taxable account while still growing assets in their tax-deferred IRA account. In this case, we can manage an account to generate monthly income directly deposited into their checking account, while also providing some growth, and also manage their IRA account separately strictly in a growth strategy.
Everyone’s journey is different—but with the right plan, you can enjoy the ride. Whether you're flying to Paris or planning for the decades ahead, the key is having a strategy that fits your story. At Dattilio & Ash, we’re here to help you build that strategy—bucket by bucket, step by step.