The Money Buckets Strategy: Securing Your Financial Future with SMART Park August 16, 2023

The Money Buckets Strategy: Securing Your Financial Future with SMART Park

Most people dream of effortlessly building and accumulating wealth for retirement. In reality, it is actually highly attainable with the adoption of the Money Buckets Strategy. This strategy takes a unique approach towards meeting your cash flow needs and safeguarding your future income to ensure a comfortable lifestyle in your golden years.

Here’s how the strategy works:

The first bucket is designed to provide a steady and guaranteed income for life. It mainly comprises CPF Life (for most Singaporeans/Permanent Residents) and short-dated yield-generating instruments with minimal or no capital fluctuation. These instruments include Fixed Deposits, Treasury Bills, Singapore Savings Bonds, and Money Market Funds.

The second bucket is dedicated to mid-term goals, typically spanning around 7 years. Within this bucket, you will find a range of savings or investment instruments such as bonds and life insurance endowments, which leverage the power of compounding to facilitate the growth of your capital over time.

The last bucket is focused on investments that offer both income and growth potential. While this bucket may experience fluctuations in value, its effectiveness lies in diversification and careful selection of quality stocks or funds managed by reputable professionals with a proven track record, potentially leading to significant growth over time. The optimal time horizon for this bucket is a minimum of 10 years to fully reap the rewards.

At PhillipCapital, we have seen our clients benefit from SMART Park which invests in Phillip Money Market Funds (MMF). While they are ‘filling’ bucket 1 or 2 or both, SMART Park enables their money to earn higher yield offering consistent growth and liquidity as they wait for opportunities to capitalise on their investments in bucket 3.

SMART Park offers returns surpassing those of regular savings accounts with no lock-in period. In celebration of Singapore’s 58th National Day, PhillipCapital currently offers an attractive guaranteed rate of 5.8% per annum for 30 days on funds up to S$50,000. For excess funds above S$50,000, investors can still enjoy competitive returns from SMART Park.

We believe that SMART Park empowers your money to work more efficiently and intelligently. It seamlessly complements the Money Buckets Strategy, whether your goal is wealth accumulation, preservation, or distribution.

By employing the Money Buckets Strategy together with SMART Park, you can pave the way for a financially secure future, giving peace of mind and the freedom to enjoy your golden years to the fullest.


The Money Buckets Strategy: Securing Your Financial Future with SMART Park

Ellain Tan
Senior Financial Services Director
Phillip Securities Pte Ltd (A member of PhillipCapital)


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About the author

Ellain Tan
Senior Financial Services Director

Ellain is a Principal Trading Representative and Financial Services Director in PhillipCapital and leads a team of over 50 Financial Advisors.

With 19 years of experience, Ellain advises her clients on securities portfolio construction, investment, wealth accumulation, retirement planning, and more. She is also a Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), and Chartered Market Technician (CMT).

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