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
Or
(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.
Thanks
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
Or
(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.
Thanks