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A Midyear Bucket Portfolio Checkup

Christine Benz (christine.benz@morningstar.com)

Indeed, the Federal Reserve's interest-rate hikes--two in 2018's first half with two more likely on the way before the year is over--are the primary explanation for performance in my bucket retirement portfolios so far this year. Despite decent, albeit unspectacular, returns in the portfolios' equity holdings, those gainers were offset by more rate-sensitive bond positions. Before we delve into the Bucket portfolios' performance, let's first review what the Bucket approach is designed to do.