savings

Rob paints a picture of a wealth building sump pump. The sump pump moves your income from the tub into one of either two buckets. The first is called a security bucket, and it is a liquid account which you don’t touch. Second, the wealth operating system bucket will hold money which you can invest wisely in order to create compound wealth investment. This is a great way to look at your retirement investment strategy.Plan your retirement investment strategy

Do you use this strategy for retirement savings?

Retirement investment strategy explained – Security Bucket

When we plan our retirement investment strategy, we should first sit down with our spouse, if applicable, to explain the sump pump analogy. Then, we calculate the number that we need in order to live comfortably each month. Then, we determine how many months we need to set aside. Once we have arrived at that number, we will begin funneling it into the Security Bucket, knowing that it is a liquid account. However, we will only touch that savings in a case of emergency until we can get back on our feet.

Wealth Operating System Bucket

Rob then outlined the second bucket in the sump pump retirement investment strategy. The Wealth Operating System is made up of wise investments. These investments will not break us if any of them don’t pan out. However, they should yield a great return on investment. We are seeking out opportunities that will earn compound interest. This is a great way to build wealth for our golden years.

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