The Three Bucket Strategy

When it comes to accumulation, when your portfolio reaches a certain mass, you want to have three buckets when you get to financial independence. These are the things where you put money in, you got a tax deduction, but when you pull it out in your time, you got to pay tax on it. There's this other bucket that's a tax free bucket, and if you grow, with qualified expense at the right time, it can be completely tax free. And then there's an after tax bucket which doesn't have tax incentivized growth,. But every year you pay taxes on it, but often it's at more favorable capital gains rates.