Cash Reserve Bucket Calculator
Plan your retirement bucket strategy — determine how much to keep in cash, bonds, and growth investments. Model how the bucket approach protects against sequence-of-returns risk and projects portfolio longevity under different market scenarios.
Portfolio & Spending
Current Bucket Allocation
Expected Returns
Bucket Reserve Targets
Cash Reserve Readiness Score
Your bucket strategy is well-structured. You have adequate cash and bond reserves to weather market downturns without selling growth assets at a loss.
Annual Portfolio Gap
$26,000
Portfolio Longevity
30+ years
Recommended Cash Bucket
$52,000
2 years of spending
Recommended Bond Bucket
$130,000
5 years of spending
Growth Bucket
$818,000
82% of portfolio
Years of Protection
7 years
cash + bonds cover downturns
Portfolio Value Over 30 Years
All three buckets stacked — cash, bonds, and growth investments
Current Bucket Allocation
How your portfolio is allocated today
Total
$1,000,000
Cash
8%$80,000/yr
Bonds
20%$200,000/yr
Growth
72%$720,000/yr
Recommended Bucket Allocation
Optimal allocation based on your spending needs
Total
$1,000,000
Cash
5%$52,000/yr
Bonds
13%$130,000/yr
Growth
82%$818,000/yr
Annual Spending Sources
Which bucket funds your spending each year
Year-by-Year Bucket Projection
Detailed breakdown of each bucket balance, spending, and refills
| Year | Cash Bucket | Bond Bucket | Growth Bucket | Total | Spending | Refill |
|---|---|---|---|---|---|---|
| 1 | $28,340 | $136,500 | $903,072 | $1,067,912 | $26,000 | - |
| 6 | $60,282 | $156,615 | $1,215,640 | $1,432,537 | $30,141 | $29,263 |
| 11 | $69,884 | $174,709 | $1,090,394 | $1,334,987 | $34,942 | $146,219 |
| 16 | $0 | $188,453 | $1,022,192 | $1,210,645 | $40,507 | - |
| 21 | $53,023 | $248,739 | $784,808 | $1,086,570 | $42,263 | - |
| 26 | $108,876 | $277,476 | $940,022 | $1,326,375 | $54,438 | $52,853 |
| 30 | $0 | $285,053 | $819,715 | $1,104,767 | $61,271 | - |
Personalized Insights
Actionable recommendations based on your numbers
Cash bucket is fully funded at 3.1 years of coverage
Your $80,000 cash reserve exceeds the recommended $52,000 target. This gives you a solid buffer against having to sell investments during a downturn.
7 years of downside protection built in
Your combined cash and bond buckets can fund spending for up to 7 years without touching growth investments. This is critical because selling stocks during a bear market locks in losses and permanently reduces your portfolio.
Portfolio projected to last 30+ years
Under this bucket strategy with periodic rebalancing, your portfolio is projected to sustain your spending throughout a 30-year retirement, even accounting for bear markets every 7 years.
Consider TIPS for your bond bucket to fight inflation
Treasury Inflation-Protected Securities (TIPS) automatically adjust with inflation, making them ideal for the bond bucket. With 3% assumed inflation, TIPS ensure your bond bucket maintains real purchasing power over 5 years of reserves.
High-yield savings and money market funds for the cash bucket
Your cash bucket earning 4.5% helps offset inflation. Spread cash across FDIC-insured high-yield savings accounts and Treasury money market funds. Avoid locking up all cash in CDs — maintain liquidity for at least 6 months of immediate spending needs.
10% spending flexibility significantly extends portfolio life
Your willingness to reduce spending by 10% during market downturns is one of the most powerful tools for portfolio longevity. Research shows that even modest spending cuts during bear markets can add 3-5 years of portfolio life.
Refill buckets systematically during strong market years
When growth investments perform well, refill your cash and bond buckets to maintain target levels. Avoid refilling during or immediately after bear markets — let the growth bucket recover first. A disciplined refill schedule prevents emotional decision-making.
Plan for bear markets roughly every 7 years
With an assumed 30% decline every 7 years and a 3-year recovery period, your bucket strategy is designed to avoid selling growth assets at depressed prices. The cash and bond buckets act as a bridge until markets recover.