Determining monthly income
Needing a little clarification on what the numbers to use and how in determining estimated monthly income from a fund.
Say you have $1,000,000 to invest and wanted to determine an estimate of what it would produce monthly what #'s would you use to calculate that #?
Total bond (Vbmfx) as of 2/29 has a SEC yield of 2.03% and Distributuion yield of 2.89%. Distributions paid out monthly.
Is the math
(1,000,000 * 2.03%) / 12 = $1,691 monthly income
(1,000,000 * 2.85%) / 12 = $2,375 monthly income
Now, second part if one were to invest the same amount in th Wellesley fund, SEC yield of 2.89% as 12/15/11, with quarterly distributions, no % stated on vanguard website for Distributuion yield.
Is the math
(1,000,000 * 2.89%) / 4 = $7,225 quarterly income
If for the Wellesley one would need the distribution yield %, how would one determine what it would be withou it being made available.
Hope my question makes sense. I have always been little confused when the statement comes and there is money reinvested on a monthly basis for Say total bond fund and how that number is figured out and also quarterly for funds that make distributions on this type of schedule.