Opinions on the New Income Replacement Funds

[cute fuzzy bunny]

You'd get the stated payout for the remainder of the year until the fund resets again, I guess next April. I'm 99.99% sure they dont recalculate the payout figure for new purchases.

Do note though that this isnt 'free money'. You'll simply be taking a slightly higher amount paid out of your principal. Its not like buying a CEF or bond at a discount and getting the higher yield for free and your principal back at the end.

 

[cute fuzzy bunny]

FYI...in looking at the current distributions, the funds seem to be showing the following for payouts. Part is "investment income" and part is "return of capital".

Off the top of my head, the 7% fund was about 80% ROC and 20% income, the 5% fund was close to 50/50 and the 3% fund was ~40/60.