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    Distributing Funds After Retirement

    Comments posted to “Using the Bucket Approach With Your Retirement Portfolio,” by Christine Benz, in the October 2013 AAII Journal.

    I would like a clearer or more detailed explanation of how to use the buckets.  Apparently living expenses are taken from bucket 1, but when should bucket 1 be replenished if one is reinvesting all dividends and interest?  Should it be after one year, and should bucket 1 always have two years’ worth of living expenses?  If so, should bucket 2 always have seven years’ worth of living expenses?  I’m not sure if the article is advising retirees to spend down bucket 1 and then shift assets from bucket 2 to bucket 1, while shifting assets from bucket 3 to bucket 2.  Or is it saying to do this yearly when rebalancing?

    —Stephen Thomas from Florida

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    John Breed from OH posted over 2 years ago:

    The AAII Social Security articles (Oct-Dec 2013) by Reichenstein & Meyer are informative. Like most authors, they do not address the impacts of a spouse that has income from jobs that have contributed to and not contributed to Social Security. Recommend that the unique impacts for non-covered employment, for the individual, couple and spousal benefits, be addressed in a separate AAII article. This article would address the many AAII members who have income from the public sector.

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