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A Moderate ETF Bucket Portfolio for Retirement

Christine Benz (christine.benz@morningstar.com)

The linchpin of the Bucket Approach is one to two years' worth of living expenses set aside in cash instruments. By using broad-based index funds, you can easily determine which holdings to peel back on and where to add. Because many retirees have large shares of their portfolios in low-returning investments like cash and bonds, focusing on very low-cost investments is an easy way to enhance take-home returns.