Your Buckets of Money

Your Buckets of Money:

You know why Wall Street calls it your “nest egg”? They know that with one click of a computer button, it will crack open and be gone. If you stop and think about it, that is really not a good analogy for your investments: An egg is very fragile and does not last long!

Learn to see an up market in a new light:

Just a reminder: All investment markets have ups and downs — and you need a down market to really make good money. If you plan well by keeping the money that you’ll need in the near future (one month to a minimum of 30 months — see buckets of money notes below) out of the stock market at all times, then you should welcome a down market, you can buy shares a lot cheaper, your dividends are will be reinvested at a much lower prices.

Really good money is not made when the markets are at an all-time high, that is the time to sell and take out your original money and leave about 95% of your gains in the markets to compound via reinvested dividends just in case the markets keep going up.

Warning: Now is not the time to go (all-in) the stock market

Most investors, buy when everyone is happy, but the wise and smart investors know that is the worst time to jump in with both feet.. This is the time to be patient and wait until for some reason the herd panics and sells off everything and now very good stocks are selling at a 20-40% discount. You may ask, does this always happen and, as shocking as this sounds, the simple answer is yes.

Good people work very hard and long to earn money but, but due to emotion and fear will lose it in a heartbeat? But when they panic, it is a good time to pick up a few bargains such as Wal-Mart,  (WMT) BPplc (BP), Consolidated Edison Inc. (ED) Xcel energy (XEL),. It is not possible to time the bottom of these stocks, but when they are down by 26-52% — you do have to pick up some shares here. They may take over 5 years to come back, but at least you can sit back and let the reinvested dividends accumulate at a much lower price.

 Stock swapping

Another really important investment strategy is swapping. Yes, there are some stocks that you would love to own but they have been consistently well-performing so the prices remain very high, however 90% of the time when the whole market goes down, it pulls the coveted stocks down to a much more reasonable price. That’s the time to look through your portfolio and sell stocks that would not sustain in a huge long-term weak economy as those long-term massive giant companies.

 Buckets of Money

A good way to protect your cash/investments is to not lump all your money in one investment goalYou need to break down your money into immediate need, short-term need and long-term and even longer term need. Let’s think in terms of buckets:

  •  1-6 month bucket (Money you need now) should be in FDIC checking account.
  •  7-30 month bucket (Money you may need in the next 2 years) should be in a FDIC saving or money market accounts.
  •  30-60 month bucket (Money you may need in the next 3 -5 years) should be in a fixed guaranteed account such as a Certificate of Deposit.
  •  70-132 month bucket (Money you may need in the next 6-21 years) should be in high-paying dividend stocks such as companies that, no matter how bad the economy gets, the mass of people must use/consume these  products, such as the company to which you pay your utility bills, ie; NextEra Energy-the owner of Florida power on light (NEE), Xcel energy(XEL), or food companies such as Kraft Foods (KFT) and ConAgra foods (CAG), large long-established companies, such as General Electric (GE), large companies with monopolies, such as AT&T (T), Verizon (VZ), Wal-Mart (WMT) large drug/healthcare companies such as Pfizer (PFE) and Johnson& Johnson (JNJ) just to name a few.

 FREE Credit Checkup

Reminder to check your credit report for free once a year, not for your score, but to make sure there are no errors on there: Here is the free link:

 And please remember that it is FREE (You only have to pay if you request your credit score and you really do not need that). Do create a free account — you can go back and access it free for a month OR just print it out right away — or they will try to trick you in trying to get you to pay again. Another scam is that they will say free for 29 days and if you do not call to cancel it, you will pay an annual free. In that case, do call the next day and cancel. Thank you!  С

Danke   謝謝!Gracias ありがとう!Merci! Grazie!

Have a Happy, Healthy and Wealthy Day!

Love Always,


Sherwin Brown

About Sherwin Brown

Sherwin has been an entrepreneur since he was twelve years old. He currently teaches, writes, and speaks to people about how to improve and safeguard all aspects of their financial portfolios.