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Vanguard Managed Payout Funds
Old 12-11-2011, 04:39 PM   #1
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Vanguard Managed Payout Funds

DH and I are still about 4 yrs. away from retirement and still in the "figuring out" process of how we will access our funds or take distributions. So, I'm wondering if anyone out there is using a Vanguard Managed Payout Fund? If

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Old 12-11-2011, 05:59 PM   #2
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Not familiar with that name, but Vanguard does have a program that will payout from your funds according to the government's minimum required distribution table (72-T for early retirees and for those over 70.5, IIRC). I am pretty sure that you can specify payout from a specific fund (i.e., MMF).

I intend to use this service when the time comes.

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Old 12-11-2011, 06:07 PM   #3
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Dog, search on 'managed payout funds' in the Google search box near the top of the page and you'll find several threads discussing the product.
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Old 12-11-2011, 06:15 PM   #4
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CFB was interested in them and I believe bought them to some extent when they were first created. Then the recession of 2007-2008 happened, and I'm not sure how those funds did under that kind of pressure. I'd ask CFB but he isn't here...
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Old 12-13-2011, 08:41 PM   #5
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I saw those funds recently while browsing around Vanguard:

It looks like they do for you what a lot of people here probably already do: put your money into index funds in a proportion depending on your desired risk/growth level, but they'll cash out a steady amount every month (2.5 - 7.0% annual WR) and wire into your bank account. I guess it takes the work out of having to monitor and re-balance your portfolio.

My only concern would be their most conservative of the payout funds is still 70% stock/20 bond/10 other.
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Old 05-22-2012, 12:14 PM   #6
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I'm considering recommending one of these for my Father. My mother, who was a banker, recently passed. My father is not good at managing money, and I'm afraid he will be broke within a few years if I don't set him up with something like an annuity that pays out a monthly distribution. However, my father refuses to consider an annuity because he wants to leave something behind for the grandkids (my nieces and nephew) when he passes (not likely soon in my opinion). He is 71 and still working, but his business does not generate any significant revenue; it's simply something he enjoys and keeps him busy.

Thanks to my mother, he has $400K to $500K in various IRAs and taxable accounts, and I do not want to be responsible for managing these funds. He receives approximately $1900 per month Social Security (after tax and Medicare deductions), and I estimate his monthly expenses are approximately $3500 to $4000. I was thinking of having him put $350K into one of the Vanguard Managed Payout funds. This would make the money less accessible to him and give him a monthly payout that would encourage him to live within his means.

I would appreciate any thoughts or advice on how to manage this situation. My biggest fear is that he will run through the money within five years, and living with me and my wife is not going to be an option.

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