Retirement income planning is one of the most important, and most complicated, challenges investors face.
One approach that works well is called the bucket strategy. Instead of treating your portfolio as one pool of money, you divide it into groups based on when you'll need it: the money you'll spend soon stays safe, the money you'll need in a few years grows steadily, and the money you won't touch for a long while has room to keep working harder.
Done well, this covers your short-term income needs, reduces the pressure to sell stocks in a downturn, and delivers predictable cash flow while the rest of your portfolio stays focused on growth.
The trouble is the upkeep. Maintaining cash levels, deciding which assets to sell and when, rebalancing, staying tax-efficient across account types: it takes real time and expertise. Even organized investors end up juggling spreadsheets, making last-minute trades, and second-guessing themselves.
That's why we built Cash Flow Reserve — a professionally managed system that delivers the benefits of the bucket strategy without the spreadsheets, the timing calls, or the guesswork.
Built into your portfolio, not bolted onto it
We start with your risk-based target portfolio, a diversified blend of SMI strategies. From your Bond Upgrading allocation, we set aside a piece to fund up to two years of income, and each year the money moves one step closer to you.
This Year’s Income
A Treasury money market fund holds everything you're set to withdraw through year-end. This is the paycheck you actually receive, on whatever schedule you prefer: monthly, quarterly, or annually.
Next Year’s Income
The following year's income sits in a defined-maturity corporate bond fund, similar to a CD. It typically earns more than the money market fund, and it stays untouched until it's needed.
The Annual Handoff
When that bond fund matures, its proceeds move into the money market fund and become next year’s paycheck. We then sell from your Bond Upgrading allocation to buy another year of income in a new bond fund.
Your income stays funded, and the rest of your portfolio stays focused on growth.
The money market fund and the defined-maturity bond fund are both managed as part of your Bond Upgrading allocation. Throughout the year, our team harvests gains from your growth strategies when markets are strong and preserves equities when they’re weak.
If you are drawn to the bucket strategy but, like many people, are not sure how to manage it, Cash Flow Reserve provides the structure, confidence, and simplicity you need without compromising performance.
What makes Cash Flow Reserve better
Five things the reserve does for you that a do-it-yourself bucket setup asks you to do yourself.
Built for retirees who want the paycheck, not the paperwork
Cash Flow Reserve fits investors already drawing meaningful income from their portfolio who would rather delegate the mechanics than manage them. Most clients use it as a retirement paycheck. Others use it to secure their charitable giving. However you use it, the mechanics stay the same.
A Dependable Paycheck
You want reliable retirement income without manual maintenance or last-minute decisions.
Advisor-Managed Income
You work directly with a Stewardship Advisor who manages the reserve as part of your overall plan, available to households with $250,000 or more in managed assets.
Recurring Generosity
You fund ongoing charitable gifts and want that money set aside and protected ahead of time.
Tax-Aware Withdrawals
You value tax efficiency and want income drawn in a way that respects your account mix.
Long-Term Alignment
You want short-term income handled without pulling the portfolio off its long-term course.
Schedule a complimentary, no-obligation call with a Stewardship Advisor to see if Cash Flow Reserve is right for you.
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Cash Flow Reserve: A Smarter Approach to Retirement Income
Want the full details? This guide walks through exactly how the reserve is funded, how it's rebalanced through full market cycles, and how it's tailored to your situation.
Cash Flow Reserve is just one piece of the picture
Cash Flow Reserve solves how your money reaches you. Your Stewardship Advisor helps with everything around it, including retirement income forecasting, tax planning, charitable giving, estate and beneficiary review, and Social Security timing, all while making sure your investment risk still matches where you are in life.
Behind your advisor, our Portfolio Managers monitor your accounts and place trades so your SMI strategy allocations stay on target, and our Client Services team works directly with Schwab on your behalf to open accounts, move money, and handle the day-to-day details.
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Retire with confidence.
We have solved the hard part of the bucket strategy so you can enjoy the peace of mind it was meant to provide: the consistency of a paycheck, the security of a cash reserve, and the freedom to focus on living your life.
Prefer to talk now? Call 800-796-4975 or email [email protected].
Frequently Asked Questions about Cash Flow Reserve.
Cash Flow Reserve: A Smarter Approach to Retirement Income
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