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Old 03-31-2012, 10:45 AM   #1
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Anyone know anything about this Vanguard fund, and say how it might
compare to say Wellesley for a retirement fund to provide steady
income/drawdown?

Managed Payout Distribution Focus fund
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Old 03-31-2012, 11:08 AM   #2
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Looks interesting, need to check it out in greater detail.
Am looking for something similar.
In 4.5 yrs I plan to have about 700k with VG and would like to pull about 20k a yr from it. Just looking for a good place, like you to put it.
Looking forward to what others have to say about it.

It looks to have paid (12) .09 monthly div. last year with a Dec 1.19% div. for 2.27% total.
But shows a *yeild* of 14.79% ? YTD 5.76%.

Someone needs to help us out here.....
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Old 03-31-2012, 03:36 PM   #3
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Some of the return may be return of principal.
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Old 03-31-2012, 03:45 PM   #4
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Vanguard has three different payout funds to choose from:

https://personal.vanguard.com/us/fun...agedPayoutList
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Old 03-31-2012, 04:31 PM   #5
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I always wonder if it would be better to just buy the underlying funds. I "think" your ER would be lower. Admittedly a bit of work, particularly in this case since there are regular monthly distributions, but I'm guessing the difference in ER might make it worth the effort.
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Old 03-31-2012, 05:26 PM   #6
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Here's a Kiplinger article explaining how managed payout funds work:

Payout Funds May Fail to Deliver Real Income
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Old 03-31-2012, 06:20 PM   #7
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I was invested in one of the payout funds about a couple years ago. But I decided to get out because I found it easier for me to manage my allocations by just using index funds and calculate how much I want to "pay myself" from my own rebalancing at the start of the year. Still, I think the concept is interesting.
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Old 04-01-2012, 02:11 PM   #8
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Might be an option when we reach an age where we don't want to sell shares manually to generate income.
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Old 04-01-2012, 02:23 PM   #9
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Is there a charge for this..the expences says zero...how do they get paid?
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Old 04-01-2012, 03:03 PM   #10
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Quote:
Originally Posted by ducky911 View Post
Is there a charge for this..the expences says zero...


VPDFX - Acquired fund fees and expenses as of 02/27/2012: 0.46%
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Old 04-01-2012, 04:45 PM   #11
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I bought the mid payout fund when it opened at 20. per share in early 08 (along with CFB) and pretty much lost my buttocks over the repression - I held it untill it went back up to 17.5 and sold. I pretty much broke even when you consider the monthly yield payments. These are very volatile funds and VG lowered the payout several times. I learned that I can't stomach this kind of fund - of course had the market kept plodding along positively, I would feel different I'm sure. Wellesly and the Life strategy funds are more my style now for mid term money.
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Old 04-01-2012, 08:35 PM   #12
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I think the payout concept is nice. But in actually for me, as income, I'd like a constant amount for budgeting. For AA, I'd like more control (such as doing my own with indexing). The payout fund didn't fully satisfy either for me. Those were two reasons why I left.
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Old 04-21-2012, 03:14 PM   #13
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If you are interested in a managed payout fund, look at GABUX. It has consistently paid a 7 cent a share monthly distribution. It is not a cheap fund, the expense ratio is 1.43% that alone is enough to turn off most of the members of this board. However, it is managed by a team led by Mario Gabelli, has less than a 20% turnover rate, low volatility and pretty good performance.
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