Multi-bucket investing
Clients often have multiple financial goals they are working toward at the same time, such as building an emergency fund, saving for a home purchase, or investing for retirement.
Traditionally, managing multiple goals required opening multiple accounts with different investment objectives. Multi-Bucket Investing simplifies this process by allowing advisors to manage multiple goals within a single account.
Key Features
- Manage multiple goals within a single account.
- Assign a unique investment allocation to each bucket.
- Allocate both current assets and future contributions across buckets.
- Set funding thresholds that automatically redirect contributions once a goal is met.
How It Works
Each bucket includes:
- Allocation – The investment strategy assigned to the bucket.
- Current Funding – The portion of the account currently allocated to the bucket.
- Future Contributions – Rules that determine how future deposits are allocated.
Future contribution settings can include both a savings percentage and an optional funding threshold.
Deposits
Deposits are allocated from top to bottom based on bucket order, savings percentages, and funding thresholds.
As goals are achieved, contributions automatically shift to other buckets according to the savings plan.
Withdrawals
One-Time Withdrawals
One-time withdrawals can be pulled from any bucket(s). Symplany automatically calculates the required trades.
Systematic Withdrawals
Systematic withdrawals are funded from the top bucket in the list. Once that bucket is depleted, withdrawals automatically move to the next bucket.
To change the withdrawal source, simply reorder the buckets.
New Account Setup
Buckets can be configured before an account is funded.
Cash deposits will automatically follow the bucket deposit rules once assets arrive. If transferring securities such as stocks, ETFs, or mutual funds, consider placing a trade hold on the account and contacting support for assistance.
Common Questions
What happens when a bucket reaches its funding threshold?
Future deposits stop flowing into that bucket and are redirected according to the savings plan.
Can each bucket have a different investment allocation?
Yes. Each bucket can be assigned its own investment allocation and objective.
Where do systematic withdrawals come from?
Systematic withdrawals are always sourced from the first bucket in the sequence.
Can I change which bucket systematic withdrawals come from?
Yes. Reordering the buckets changes the source of future systematic withdrawals.
Can I allocate existing assets between buckets?
Yes. When creating or editing buckets, you can choose how current assets are distributed across the available buckets.