2. Short-term withdrawals and long-term growth

Balancing risk factors when it comes to investments is not easy. Seniors need to start withdrawing money in order to fund their retirement, but disaster can strike at any moment, and you might end up in a situation where your investments might lose value just when you need to make a withdrawal. Doesn’t sound ideal, does it?

The smart money move is to invest different buckets of money in what is known as a bucket investment strategy. Some money will go to investments with lower risk while some money will go towards investments with higher risks associated with them.

For short-term spending, you’ll need to use the money that you invested in low-risk vehicles. As for long-term growth, you can invest in more risk and wait out downturns without ever being short on cash.