Buckets of Money

Retirement Workshop/Planning, Buckets of Money Seminar by Ray Lucia
Here I will share my insight of what I have learned from attending Ray Lucia's "Retirement Workshop," combined with my own research regarding the subject. This page is solely suggests for retirement planning and how best you can allocate your money/asset for better returns.

• It is better to invest in Multi-Family Real Estate (Apartment complex) rather than Residential Properties, because if the tenant in a Residential Property moves out, the house becomes 100% vacant until new tenant is found; where in a Multi-Family properties the vacancy percentage will be much lower.

• Variable Annuity - a variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments. For more info click here

• T-Bills - is a government debt issued by the United States Department of the Treasury through the Bureau of the Public Debt. Treasury securities are the debt financing instruments of the United States Federal government, and they are often referred to simply as Treasuries. There are four types of marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS). For more info click here

• There are two "good times" investment in Bonds:

• As you near the retirement age, Bonds are preferred, since they are not as volatile as stocks or equities, and have lower risk.
• During economic recession, since equity market(s) tend to go down, investors seek "safe" investments, which is Bonds market.
• Not to mention, DO NOT forget to sell your bonds before recovery (before the Federal Reserve starts to raise the interest rates, as the interest rates go up - the value of Bonds go down, and vice verse).

• Perhaps you have heard or read it many times, but DO NOT forget to diversify your portfolio, especially now that we are in a "Global economy." Consider these securities in your retirement portfolio:

• Annuity/Variable Annuity
• Bonds/Government, Corporate etc.
• REITs
• Stocks

• Dollar Cost Averaging (DCA) and Reverse DCA.

• DCA - invest the same amount each month during the accumulation phase. When prices are high, you can buy fewer shares; when prices are low, you can buy more shares. Over time, assuming the market grows over the long term, and assuming that you retire at a market high, the average share price might be lower than if the investor tried to time the market and invest 100% of their money all at once.

• Reverse DCA - can produce the opposite effect as Dollar Cost Averaging, and potentially increase the risk to a portfolio running out of money before the investor’s needs run out (i.e., death), especially during a bear market at the wrong time.

• Always match your assets with liabilities - meaning live within your means and make sure you have the money to spend not credit.