Meeting cash flow needs through distributions is challenging, with Treasury yields at rock-bottom levels and investors enduring widespread dividend cuts this year. Trying to generate a meaningful yield means unacceptable credit risk at a time when the bankruptcies are getting announced following months of government-mandated shutdowns. For investors looking to fund their day-to-day lives, a better approach is to focus on maximizing risk-adjusted returns to meet individual cash flow needs. 

Target-distribution strategies, such as those developed by my guest today, leverage a modern-portfolio theory approach focused on risk-adjusted returns to deliver steady cash flow to investors while maintaining the principal over the long-run.