Has anyone heard of Wes Moss and his bucket method of investing

[jimthesailor]

Wes Moss believes in things like having 100% of your money making income for you and using buckets with percentages of socks, bonds , and alternatives tied to each one. Keeping these %,s would be accomplished by rebalancing every 6 to 12 months. Has anyone followed a similar path while in retirement and what are your feelings on this methodology.

 

[oldman]

I once tried using the "Dogs of the Dow" method of investing. I didn't make a lot of money, but I did make money. Later, I went away from it and back to making my own picks based on various information. You can Google "Dogs of the Dow" and read how it works. I only invested about 25% of my portfolio because I wasn't sold on the idea. If I remember correctly, I did OK when including the dividends that i collected from the various companies.

https://en.wikipedia.org/wiki/Dogs_of_the_Dow

http://www.cnbc.com/id/102301740

 

[Bullie76]

Haven't heard of him but have heard of similar strategies. My investments are pretty much income driven as I have no pension or SS(yet). Lot's of people rebalance at a set time every year. I just do it when my AA gets out of whack.

 

[Glinda]

Is this similar to Ray Lucia's Bucket Plan? His relies quite a bit on annuities, both immediate and variable. I plan to eventually put some $ in an immediate annuity (or possibly a ladder) but I'm not sold on variable annuities or any other type.

 

[mathjak107]

there is no academic study that actually found that organizing things in buckets has any benefit financially then just plain ole systematic withdrawals . buckets can comfort the mind but financially they do nothing .

the reason is the cash and bonds act as a weight in up markets . study's have found that you could spend from 100% equity's and sell even in down markets and get similar success rates .

the reason is the extra money you make in the up market acts as a cushion in the down market .

with some systems like ray's if you delay refilling to long your equity allocation grows and grows . eventually you can be age 85 and 90% equity's prior to refilling . refilling once a year may not help in down years when stocks and bonds are down .

all in all if you are comfortable using buckets mentally then no reason not to use them but they do offer no advantage. retirees have been drawing equally from the pie preserving their original allocations forever and it works just fine .