A Tale Of 2 Buckets

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A Tale Of 2 Buckets

  1. 1. A Tale of 2 Buckets<br />The Great Battle Between <br />What You Earn And What You Lose<br />
  2. 2. Bucket A: This is the bucket where money is invested and growing for the future. It is always impacted by inflation and often but not always by taxes. Generally speaking it is captive money.<br />
  3. 3. Retirement Savings<br />Qualified Plans<br />401-k<br />IRA<br />Bank Products<br />CD<br />Money Market Account<br />Taxable Securities<br />Portfolio or Mutual funds<br />Bucket A<br />
  4. 4. Bucket B: This is where you are losing money. Many families in America are losing as much as 34% of their after tax income from this bucket.<br />
  5. 5. Non-deductible expenses<br />Finance Costs<br />Cars<br />Appliances<br />Vacations<br />Fees<br />Insurance: car, home, health<br />Taxes<br />Federal, State, County, Municipal<br />Bucket B<br />
  6. 6. Step 1: Put a ball park figure on Buckets A & B<br />Step 2: Compare both numbers<br />Step 3: If the number from Bucket B is larger than the number from Bucket A then you may have a problem. You may be moving backwards financially.<br />Rocket Science<br />
  7. 7. You can increase wealth by<br />Bucket A: Increasing what you earn<br />Can you really earn more? <br />Does earn more = risk more??<br />This money is captive<br />Bucket B: Reducing what you lose<br />What % of B number equals A number?<br />If you reduced the loss from Bucket B by 5% how would that impact your net worth?<br />Think About It!<br />
  8. 8. For many people focusing on Bucket A to increase wealth is not practical<br />Bucket B can “outperform” Bucket A<br />Don’t ignore Bucket B<br />Have questions?<br />Call: 360 306 5642<br />Email me: SustainableFinances@Comcast.net<br />Moral of the story…<br />

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