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Investing Specialists

A Moderate ETF Bucket Portfolio for Retirement

This portfolio is geared toward retirees with roughly 20-year time horizons.

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Even if you're an extremely engaged investor--and that's true of many readers--it's important to have a backup plan in case something should happen to you. Will your spouse know where to go for cash to pay the bills? Have you tried to skinny down your portfolio to as few moving parts as possible, especially if you're in your later retirement years?

That's where the Bucket Strategy, especially one involving exchange-traded funds or index mutual funds, can come in handy. The linchpin of the Bucket Approach is one to two years' worth of living expenses set aside in cash instruments. That way your household's near-term living expenses are covered regardless of what the market is doing.

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Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.