Target Date vs. Target Distribution Funds Face off

How to Optimize Cash Flow Throughout Your Retirement Years

ETF and Mutual Fund Industry veteran Matt Patterson discusses the pros, cons, and differences of Target Date and Target Distribution Funds. Target Date Funds seek to grow assets over a certain time period (usually an investor’s retirement date) and adjust holdings as they get closer to that date.

In contrast, Target Distribution Funds may target a particular level of risk over time seek to provide predictable income stream for investors. One of the main problems with Target Date Funds is that they may be too conservative to finance an investor’s retirement years.

Let’s face it, people need income in their retirement years and being too conservative increases the risk that investors will outlive their funds. Target Distribution Funds offer investors a solution that provides predictable cash flow throughout their retirement years.

Matt Patterson, co-founder Bryant Avenue Ventures, LLC
Matt is a co-founder of Bryant Avenue Ventures LLC, the creator of the Nasdaq 7 HANDL Index. In 2017 Bryant Avenue Ventures partnered with Strategy Shares to launch a target distribution ETF. Matt previously co-founded and served as Head of Investment Strategy and General Counsel of Accretive Asset Management LLC, the creator of BulletShares Indexes. Matt began his legal career as an Associate in the Corporate Department of Skadden, Arps, Slate, Meagher & Flom LLP. Matt holds an MBA from the University of Chicago, a JD from the University of Illinois College of Law and a BA from the University of Illinois.