The idea behind EQIS Tactical Distributions is to create a reserve “bucket of funds” used to cover monthly expenses for up to two years in case of a market decline.
The Tactical Distribution Methodology
During “normal” times, we will create cash to pay your distributions using the EQIS Smart Distribution methodology. But if we enter a bear market or if a stock market correction occurs, then we may pay your distributions from the money that is set aside to pay Tactical Distributions. The EQIS Investment Committee will decide when to pull this trigger and switch to using tactical distributions to cover your monthly expenses for up to two years. When the market bounces back up, then we will stop paying Tactical Distributions and return to paying you Smart Distributions. In addition, at this time we will rebalance these accounts back to their target weights.