Does ‘bucketing’ achieve its goal?

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CPD Quiz

This activity has been accredited as continuing professional development by the Financial Planning Association of Australia but does not constitute FPA’s endorsement of the activity. This activity has been assessed as being equivalent to 0.25 hour CPD hours.

Question 1 of 5

Which of the following best describes ‘bucketing’:

a risk minimisation strategy for clients in retirement phase using cash reserves

the practice of putting assets in different asset classes into separate buckets

a means of re-investing income and dividends generate by a diverse portfolio

a way of controlling spending and keeping drawdowns to a minimum

none of the above