Liquidity Hit & Three Buckets, LFG Daily - October 13, 2025

Colin Symons, CIO Lloyd Financial Group

Markets got punched in the nose on Friday after Trump retaliated to threatened Chinese trade actions with trade threats of his own, namely 100% tariffs starting Nov. 1st. To my mind, both sides are just arming up for talks but it sure got markets nervous.

The down and up move really clocked the crypto space, with the overleveraged crushed and stop-loss orders taken out. Like forest fire management, that should clean up the space, though.

US futures are up about 1.3% as they respond to a softer tone out of the US and China.

The bond market is closed for Columbus Day.

NVDA and ORCL both have showcases today. Fed head Paulson will be giving her first-ever speech, having started in July.

What does it all mean? It’s worth noting that with Friday’s mess, liquidity took a bit of a hit, while inflation expectations went down. The latter is particularly interesting, given in the last tariff tiff, they went up. Seems inflation fears are fading a bit. The big swing in markets cleared out some overleveraged positions but headlines can still really swing this nervous market.

Luke Lloyd, CEO Lloyd Financial Group

The Three-Bucket Strategy: A Smarter Way to Think About Retirement Investments

When it comes to retirement planning, one of the most effective—and simplest—frameworks for managing your money is the Three-Bucket Strategy. It helps you visualize how to allocate your savings for different time horizons, balance growth with safety, and ensure you never have to sell investments at the wrong time.

Bucket 1: The Short-Term Bucket – Stability & Liquidity

This is your income and safety bucket. It’s designed to cover the first few years of living expenses in retirement—typically 1 to 3 years of withdrawals. Think of it as your financial cushion.

• Purpose: Cash flow and peace of mind

• Investments: Cash, money market funds, CDs, short-term Treasuries

• Goal: Stability—not growth. You want to know that no matter what the market does, your immediate needs are covered.

This bucket keeps you from being forced to sell stocks during market downturns. When volatility hits, you can draw from this reserve instead of locking in losses.

Bucket 2: The Mid-Term Bucket – Income & Moderate Growth

Once your short-term needs are secured, the next 5–10 years of spending can come from this moderate growth bucket. It serves as the bridge between safety and long-term growth.

• Purpose: Provide income while maintaining some growth potential

• Investments: Bonds, dividend-paying stocks, conservative balanced funds

• Goal: Outpace inflation while limiting downside risk

This bucket replenishes the first one over time—especially during good market years—creating a systematic, sustainable flow of income through retirement.

Bucket 3: The Long-Term Bucket – Growth & Legacy

This is your future-focused bucket—the money you won’t need for at least 10 years. It’s designed to keep growing, protect against inflation, and potentially fund your legacy or charitable goals.

• Purpose: Long-term growth and wealth preservation

• Investments: Equities, alternative investments, real estate, Roth accounts

• Goal: Maximize compounding and keep pace with rising costs of living

Because you won’t need to touch this money for years, you can afford to ride out market fluctuations and benefit from long-term growth trends.

How It All Works Together

The beauty of the Three-Bucket Strategy is its flexibility and emotional balance. When markets are strong, you can refill Buckets 1 and 2 from gains in Bucket 3. When markets are weak, you draw from your safe, liquid funds without selling investments at a loss.

It also gives retirees something invaluable: confidence. By knowing which money is for “now,” “soon,” and “later,” you can make smarter financial decisions and stick to your long-term plan—no matter what headlines say.

Final Thoughts

The Three-Bucket Strategy isn’t just about diversification—it’s about purpose. Each dollar in your plan should have a job, whether it’s paying bills today, funding adventures over the next decade, or growing for the future.

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