Why this cash flow mechanism may not be the ideal solution in retirement

When faced with where and how to generate cash flow for retirees and other income seekers, many advisors may turn to Series T versions of their favourite mutual funds. Doing so allows them to provide clients with what they have deemed to be a suitable asset mix, with the added benefit of delivering high, recurring distributions. But, is Series T really the ideal solution for retirement cash flow?

The linked document outlines the following topics:

  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎How does Series T work?
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ Does the tax efficiency hold up in all market environments?
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎Are mutual funds with Series T managed towards an income/return target?
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎•‏‏‎ ‎ Why isn’t Series T the silver bullet for retirement cash flow?
  • ‏‏‎ ‎‏‏‎ ‎‏‏‎ ‎• ‏‏‎ ‎Why is Series T unlikely to solve for sequence of returns risk?


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