The Money Now Bucket

• The "money now bucket" is designed to provide income and basic living expenses now, and for the next two to five years. It is generally funded with a combination of safe, liquid assets such as cash, money markets, CDs, and income annuities in the distribution phase. Tax deferral is not a significant concern, but wealth protection can be.
  
  

The Money Later Bucket

• The "Money Later" bucket is designed to satisfy financial needs from three to five years in the future through death. This is generally the place to put riskier assets, such as stocks, bonds, bond funds, mutual funds, variable annuities, as well as fixed annuities not yet paying out income. Tax advantages are a concern with these assets, as tax deferral or tax-free distribution can provide significant advantages over the years.
  
  

The Money Forever Bucket

• This is the bucket designed for passing assets on to heirs. The chief asset to include in this category is permanent life insurance, because of the tax-free buildup of cash value and tax-free death benefit to heirs. It can also include real estate, business interests, and any assets assigned to a trust, including life insurance trusts.