The Bucket Plan

We’ve all heard of the bucket plan. It has traditionally been used as a way to categorize money for a specific purpose, such as fixed expenses, discretionary spending, and legacy planning. For many years, advisors, agents, reps, and planners have used the term “bucket” plan to essentially sell financial products and show how their product was the best to accomplish the objective of each bucket.

At Clarity 2 Prosperity, we’re always looking to change things for the better, and our definition of The Bucket Plan couldn’t be further from this dated, sales-pitch approach. Our proven, repeatable process has been developed and refined over the past 10 years based on field testing by advisors around the country and meets the documentation requirements of the best interest standard.


Learn More About Our Bucket Plan Training

How it Works

One of the most important things that a bucket plan provides is peace of mind for your clients. Financial planning is a complex process, but utilizing the bucket plan philosophy provides a simple but effective way for you to explain – and your clients to understand – the investment strategy that you have developed for them.

The key to a successful bucket plan is strategically positioning, and then protecting, a mutually agreed-upon portion of your client’s assets in order to buy a time horizon that allows them to invest the remainder for long-term growth. This structure will provide them with a reliable income source throughout their retirement. Here’s how the buckets are constructed:

  • The Now Bucket
    Living expenses for a year or more that are not covered by other income streams. This can also include an emergency fund for unanticipated expense
  • The Soon Bucket
    Five or more years’ worth of living expenses, with income distributions from dividend-paying equities going toward the refill of Bucket 1.
  • The Later Bucket
    This bucket has more volatile, higher-earning products that can ride out a down market because the retiree does not need to draw living expenses from it.

For a more in-depth look at The Bucket Plan, check out our blog.


The Bucket Plan Process for Financial Advisors

Learn More About The Bucket Plan With These Resources

The Bucket Plan® On-Demand Series


Industry leading financial advisors, mentors and business leaders host and interview top industry experts and advisors on actionable financial planning strategies to grow your business and stay ahead of your competition. Listen to our Bucket Plan On-Demand Series here!


Clarity 2 Prosperity regularly hosts seminars on a timely and relevant topic affecting the financial services industry. Click a webinar below to access.

White Papers

Get your FREE The Bucket Plan® Book Today

The financial planning process outlined in the award-winning book is based on a three-bucket philosophy of strategically positioning assets to plan for and mitigate the risks and dangers that can occur in retirement. Get started on planning your clients financial future by requesting a FREE copy of the book below!

The Bucket Plan Process for Financial Advisors


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