Why proactive risk management is a hallmark of real planning.

When markets get rocky, what clients need most isn’t a bold prediction or a sales pitch.

They need clarity, structure, and a plan they can trust.

At DWS, we help advisors deliver that clarity through proactive risk management—built on two core pillars:

Understanding the client’s personal situation and translating that understanding into a structured portfolio built for real life.

That’s where the DWS Bucket Strategy comes in.

1. Start with Personal Context

Risk management begins not with charts or models—but with people.

Before designing any portfolio, we help advisors clarify the three essential planning variables:

• Risk Tolerance (How much volatility can they emotionally handle?) If the market dropped 20%, would your client panic, or stay the course? Knowing this shapes how much risk a client can realistically tolerate.

• Time Horizon (How long before the money is needed?) The longer the horizon, the more room there is to recover from short-term dips. Short-term needs require more stability, not speculation.

• Defined Financial Goals (What is the money actually for?) Retirement, college, or business succession, each requires a different return target and timeline, which directly informs portfolio design.

2. Structure Risk with the Bucket Strategy

Once a client’s situation is clear, we help advisors use the DWS Bucket Strategy to turn complexity into clarity:

• Bucket 1: Short-Term Needs This holds 1–3 years of planned spending in liquid, stable vehicles—so the client never has to sell equities in a downturn just to fund necessities.

• Bucket 2: Mid-Term Goals This bucket carries a moderate risk profile, providing a bridge between current income and long-term growth needs.
• Bucket 3: Long-Term Growth Designed for money that won’t be touched for 10+ years, this bucket seeks growth through equities tilted to long-term return factors like size and value.

This isn’t just diversification; it’s risk alignment over time. And for the client, it’s transformative.

They now see how risk is intentional, segmented, and tied to purpose—not just managed on a spreadsheet, but mapped to their life.

3. Ongoing Risk Management Techniques

With the buckets in place, we continue to help advisors manage risk through:

• Diversification Across asset classes, sectors, geographies, and sizes, ensuring no single risk derails the plan.

• Rebalancing Systematic realignment keeps the buckets intact and prevents risk drift.

• Education Helping clients understand inflation, interest rate, and market risks—so they don’t just tolerate volatility, they understand it.

Real Planning Puts Risk in Its Place

When clients see how their plan holds up under pressure—not just when things are going well—they gain confidence. And that confidence is contagious.

The Bucket Strategy gives you a tangible, practical way to demonstrate that you’re not just investing, you’re planning with purpose.

Want to see how this could work for you?

We’re happy to walk you through our platform and approach and hear more about what you’re building.