Masquernom
Full time employment: Posting here.
Wondering what opinions are on the Vanguard Managed Payout fund. Expenses are a little high, but sure looks like a nice automated way to monetize retirement savings.
I don't, but if I go first, DH has instructions to call Vanguard and move everything to this fund. And, if I feel like I'm seeing signs of my own cognitive impairment, that's where I'll be moving it. Heck, I may do it in a few years anyway. Fees are still better than 1% for typical management.Wondering what opinions are on the Vanguard Managed Payout fund. Expenses are a little high, but sure looks like a nice automated way to monetize retirement savings.
I don't, but if I go first, DH has instructions to call Vanguard and move everything to this fund. And, if I feel like I'm seeing signs of my own cognitive impairment, that's where I'll be moving it. Heck, I may do it in a few years anyway. Fees are still better than 1% for typical management.
I instructed my daughter that if I go first then, put everything in Vanguard Wellesley (since my wife doesn't care about financial stuff). Hmm, Vanguard Managed Payout could be another option.
I’d like to see some discussion of performance and/or issues with the fund.
Wondering what opinions are on the Vanguard Managed Payout fund. Expenses are a little high, but sure looks like a nice automated way to monetize retirement savings.
I know it's probably possible to get better returns, and you can get lower expenses with a mix of low cost index funds. But this seems like a good way to set up a monthly income stream with no effort. Can you set up the Vanguard S&P 500 index fund to send you a monthly check? I don't know.
I can see one issue with the fund. The original 4% rule research has you increasing your withdrawal by 3% each year for inflation. This fund will always stay at 4% distribution.
Is there a better way to set up investment to generate a monthly check? Hopefully nobody mentions annuities.....
I know it's probably possible to get better returns, and you can get lower expenses with a mix of low cost index funds. But this seems like a good way to set up a monthly income stream with no effort. Can you set up the Vanguard S&P 500 index fund to send you a monthly check? I don't know.....
Have the divs put into a MM (or just a cash balance int he brokerage account), set up that money market to transfer $X/month to your checking account each month. Adjust for the new year if you want/need.
Thanks for the link. Ran it with my 3 ETFs (SCHB/SCHF/PWZ) and turns out 60/10/30 is best and beats Managed Payout by a huge margin will slowly work towards that.I'm not impressed... a simple 55/45 (same AA as Managed Payout) or the beloved 60/40 AA with a 4% WR adjusted for inflation and rebalanced annually outperforms. If you look at the periods that the VPGDX outperforms and under performs they do seem to line up with good and bad years for international stocks.
https://www.portfoliovisualizer.com...cation3_3=40&total1=100&total2=100&total3=100
Same run with 20% of equity allocation being international for people who like some international equities in their portfolio:
https://www.portfoliovisualizer.com...cation4_3=12&total1=100&total2=100&total3=100
Same run vs a 50/50 mix of Wellesley and Wellington:
https://www.portfoliovisualizer.com...cation5_3=40&total1=100&total2=100&total3=100