Weathering Market Storms with the Bucket Strategy

If you’re retired—or even preparing for retirement—you’ve likely asked yourself a tough question: What happens if the market drops right when I need income?

The last thing anyone wants is to be forced into selling stocks at a loss just to cover everyday expenses. That’s where a practical approach called the bucket strategy can help.

Instead of thinking about your retirement portfolio as one giant account, imagine it as being divided into a few distinct “buckets.” Financial writer Adam Grossman describes it this way: when the market is strong, you can lean on your stock bucket to fund your spending. But when stocks are down, you can shift to your bond bucket. And if both stocks and bonds are struggling—as we saw in 2022—you can draw from a cash bucket that you’ve set aside for just such a season.

Think of it like storing up provisions for different kinds of weather. Sunshine? Draw from growth investments. Rain? Lean on bonds. A stormy season? You’ve got an umbrella in the form of cash reserves.

This simple mental framework can provide real peace of mind because it gives you flexibility no matter what the market throws your way. You aren’t at the mercy of short-term swings—you’ve got options.

At BMA Financial, our goal is to help pastors, missionaries, and church staff prepare for a secure retirement that allows them to keep serving God and others with freedom. If you’d like to learn more about how to apply the bucket strategy to your BMA America 403(b)(9) retirement plan, we’d be glad to share additional guidance and tools.

Your retirement should be more than just surviving the markets—it should be about stewarding wisely and living with confidence in God’s provision.

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At BMA Financial, our desire is to assist you in becoming a better steward of God's resources. Please let us know how we can help you! Contact us today!

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Steve Crawley, PhD

BMA Financial

Executive Director