Ray Lucia's Bucket Strategy™

If you're like most retirees or pre-retirees, you hunger for stability, yet yearn for growth to rejuvenate your portfolio that may have been battered over the past few years. Ray Lucia's Bucket Strategy™ concept offers a reassuring strategy that aims to give investors both growth and income.

Stripped to its simplest form, here's the premise of the Bucket Strategy™: You organize your investments into three main groupings, or "buckets" and take the majority of the risk in Bucket No. 3, largely with stocks and real estate. You live by spending down the first two, relatively "safe" buckets; meanwhile, you don't touch that third bucket.

The strategy is designed to "buy" time by having reliable sources of income in retirement while you allow your stocks and real estate to grow for 15 years or more, all with the aim of reducing the risk that's inherent in stock-market investing.