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Fiscal Foxhole · Wednesday · 1 hr 13 min

Three Buckets, One Mission

Rob Moore, MQFP® and Omen Quelvog CFP®, MQFP® explain how the three-bucket strategy can make investing and retirement income decisions easier to manage. They also explore state tax benefits for 529 plans, the enduring legacy of the Cobra attack helicopter, and why financial resilience is more important than predicting the market. Contact The Fiscal Foxhole Email The Fiscal Foxhole at fiscalfoxhole@gmail.com Book a meeting with Rob Book a meeting with Omen 🚁 Background: The Cobra Takes Flight The Bell Model 209 first flew in September 1965 and became the foundation for the AH-1 Cobra attack helicopter. 🎓 Intel Update: Understanding 529 Tax Benefits 529 contributions grow tax-free, and qualified education withdrawals avoid federal capital-gains taxes. State deductions and credits vary considerably. Start by checking the rules of the state where you pay income tax, especially after a PCS or domicile change. 🪣 Execution: The Three-Bucket Strategy 🛡️ Bucket One: Short-Term Stability Before retirement, this is typically an emergency fund. In retirement, consider holding approximately three years of the spending gap. Favor liquid, stable options such as high-yield savings, money-market funds, or the TSP G Fund. 🌉 Bucket Two: Midterm Goals This bucket can support goals roughly four to 10 years away. A taxable brokerage account may provide useful access and moderate growth. 📈 Bucket Three: Long-Term Growth This is the portfolio’s growth engine, typically emphasizing equities held in accounts such as the TSP, IRAs, or a brokerage account. Its job is to outpace inflation and support spending later in retirement. 🔄 Putting the Buckets to Work During strong markets, withdrawals or gains from the growth bucket can refill short-term reserves. During downturns, spend from the stable bucket and give long-term investments time to recover. 🎯 Commander’s Intent Evaluate 529 benefits based on the state where you actually pay income tax. Match each account and investment to the timeline for using the money. Review the next 12 months of cash needs every year to reduce the risk of selling long-term investments at the wrong time. 🔗 Links and Resources Understanding Your Federal and State 529 Tax Benefits Military Financial Advisors Association

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Rob Moore, MQFP® and Omen Quelvog CFP®, MQFP® explain how the three-bucket strategy can make investing and retirement income decisions easier to manage. They also explore state tax benefits for 529 plans, the enduring legacy of the Cobra attack helicopter, and why financial resilience is more important than predicting the market.

Contact The Fiscal Foxhole

🚁 Background: The Cobra Takes Flight

  • The Bell Model 209 first flew in September 1965 and became the foundation for the AH-1 Cobra attack helicopter.

🎓 Intel Update: Understanding 529 Tax Benefits

  • 529 contributions grow tax-free, and qualified education withdrawals avoid federal capital-gains taxes.
  • State deductions and credits vary considerably. Start by checking the rules of the state where you pay income tax, especially after a PCS or domicile change.

🪣 Execution: The Three-Bucket Strategy

🛡️ Bucket One: Short-Term Stability

  • Before retirement, this is typically an emergency fund.
  • In retirement, consider holding approximately three years of the spending gap.
  • Favor liquid, stable options such as high-yield savings, money-market funds, or the TSP G Fund.

🌉 Bucket Two: Midterm Goals

  • This bucket can support goals roughly four to 10 years away.
  • A taxable brokerage account may provide useful access and moderate growth.

📈 Bucket Three: Long-Term Growth

  • This is the portfolio’s growth engine, typically emphasizing equities held in accounts such as the TSP, IRAs, or a brokerage account.
  • Its job is to outpace inflation and support spending later in retirement.

🔄 Putting the Buckets to Work

  • During strong markets, withdrawals or gains from the growth bucket can refill short-term reserves.
  • During downturns, spend from the stable bucket and give long-term investments time to recover.

🎯 Commander’s Intent

  1. Evaluate 529 benefits based on the state where you actually pay income tax.
  2. Match each account and investment to the timeline for using the money.
  3. Review the next 12 months of cash needs every year to reduce the risk of selling long-term investments at the wrong time.

🔗 Links and Resources

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