Our Investment Philosophy
At Desjardins Retirement Solutions, we believe successful investing requires both strategic thinking and emotional discipline. Our investment philosophy centers on the time-tested bucket approach, which divides your portfolio into distinct segments based on when you'll need the money and your risk tolerance for each timeframe.
Three Buckets, One Coordinated Strategy
Our bucket methodology organizes your investments into three primary categories:
Bucket 1: Immediate Security (1-3 Years)
- Cash and money market funds for emergencies and short-term needs
- High-grade short-term bonds and CDs
- Provides peace of mind and eliminates forced selling during market downturns
- Covers living expenses and unexpected financial obligations
Bucket 2: Balanced Growth (3-10 Years)
- High-quality corporate and government bonds
- Dividend-paying stocks and balanced mutual funds
- Real estate investment trusts (REITs)
- Bridges safety and growth while generating steady income
- Allows moderate risk-taking with medium-term recovery time
Bucket 3: Long-Term Wealth Building (10+ Years)
- Domestic and international growth stocks
- Emerging market investments and small-cap equities
- Growth-oriented mutual funds and ETFs
- Maximum growth potential with time to weather volatility
- Harnesses the power of compound returns over decades
Disciplined Rebalancing and Risk Management
The bucket approach delivers results through systematic discipline and strategic rebalancing:
During Market Downturns:
- Draw from Bucket 1 to meet immediate needs
- Avoid panic-selling long-term investments at depressed prices
- Allow Buckets 2 and 3 time to recover without pressure
- Maintain emotional stability through secure short-term reserves
During Market Growth:
- Harvest gains from outperforming buckets
- Systematically refill shorter-term reserves
- Rebalance to maintain target allocations
- Lock in profits while maintaining long-term growth exposure
Ongoing Benefits:
- Aligns investment timeline with appropriate risk levels
- Provides emotional comfort during market volatility
- Maintains focus on long-term wealth building goals
- Proven effective across various market cycles