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O'ConnorFri, March 27, 2026 at 8:00 AM GMT+1 5 min readThere are many different approaches and strategies for retirement investing that might appeal to you. But how do you tell if a certain strategy works for your situation?When evaluating different approaches, consider how each strategy is put together and determine whether it fits your individual needs, resources and risk tolerance. If you’ve ever been interested in what’s called “bucket strategy,” you’re in luck – Morningstar has put together three specific examples of bucket strategy for you to check out.A financial advisor can help you plan for retirement and manage your portfolio. Find a fiduciary advisor today.Bucket Strategy BasicsHere's How Much to Keep in Stocks, Bonds and Cash in RetirementIf you’re not familiar with bucket strategy, it calls for structuring your retirement assets in three buckets based on longevity and when cash is needed.The first bucket holds your cash, cash equivalents and other liquid assets designed to be used in the first years of retirement. A medium-term bucket is focused mainly on bonds. A third, long-term bucket of stocks is designed to promote growth. As the cash bucket becomes depleted, medium-term assets are sold to refill it, with long-term assets liquidated to top off the medium-term bucket.“The bucket approach to retirement portfolio planning isn’t designed to generate the best possible investment returns,” Christine Benz, Morningstar’s director of personal finance and retirement planning, writes. “It won’t — almost by definition. Instead, the bucket strategy is geared toward real retirees, to help them source their needed cash flows regardless of what’s going on with their long-term holdings.”How to Set Your Asset Allocation Using the Bucket StrategyHere's How Much to Keep in Stocks, Bonds and Cash in RetirementUsing the bucket strategy, Benz created three model portfolios for various risk tolerances. The three approaches rely on exchange-traded funds (ETFs) kept in tax-deferred accounts, with withdrawals being used to cover some or all of a retiree’s living expenses. The portfolios range in risk from aggressive to moderate to conservative. Here’s how the three model portfolios stack up against each other based on how they allocate their assets across cash, bonds and stocks:Aggressive. Designed for a retirement that’s expected to last more than 25 years, this is for investors with a high capacity for risk:Cash: 8% of assets are kept in cash for years 1 and 2 of retirementBonds: 32% of assets are kept in bonds for years 3-10 of retirementStocks: 60% of assets are kept in stocks for year 11 and beyondModerate. Designed for a retirement that’s expected to last between 15 and 25 years, this is for investors with a moderate capacity for risk.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 66,267.98 -1,388.78 (-2.05%)^GSPC S&P 500 6,368.85 -108.31 (-1.67%)^IXIC NASDAQ Composite 20,948.36 -459.72 (-2.15%)^DJI Dow Jones Industrial Average 45,166.64 -793.47 (-1.73%)ETH-USD Ethereum USD 1,998.03 -41.82 (-2.05%)PortfolioSign in to access your portfolioSign inTop gainersAGX Argan, Inc. 566.62 +155.77 (+37.91%)U Unity Software Inc. 19.45 +2.32 (+13.54%)ADV Advantage Solutions Inc. 25.57 +2.99 (+13.27%)ADMA ADMA Biologics, Inc. 9.25 +0.96 (+11.58%)MEOH Methanex Corporation 65.22 +5.76 (+9.69%)Top losersFLY Firefly Aerospace Inc. 23.71 -3.11 (-11.58%)YOU Clear Secure, Inc. 47.44 -5.96 (-11.16%)ASTS AST SpaceMobile, Inc. 78.67 -9.19 (-10.46%)HNGE Hinge Health, Inc. 36.25 -3.93 (-9.78%)ZETA Zeta Global Holdings Corp. 14.55 -1.53 (-9.51%)Most activeNVDA NVIDIA Corporation 167.52 -3.72 (-2.17%)GRAB Grab Holdings Limited 3.5700 -0.1400 (-3.77%)TSLA Tesla, Inc. 361.83 -10.28 (-2.76%)INTC Intel Corporation 43.13 -0.97 (-2.20%)NU Nu Holdings Ltd. 13.60 -0.42 (-3.00%)Top economic eventsEarnings eventsMy earnings eventsEarnings events