Bogleheads

[Vegomatic]

InsuranceNewsNet: Vanguard's New Managed Payout Funds

"VALLEY FORGE, Pa.--(BUSINESS WIRE)--Sept. 27, 2007--The Vanguard Group today filed a registration statement with the U.S. Securities and Exchange Commission for a new series of mutual funds designed to provide monthly payments to investors in retirement. "

"The proposed Vanguard(R) Managed Payout Funds will be structured as funds-of-funds, investing predominantly in Vanguard domestic and international stock index funds, bond and REIT index funds, and inflation-protected securities and money market instruments. The funds may also allocate a portion of their assets to commodity-linked investments, as well as pursue market-neutral and other absolute-return strategies....

- Managed Payout Real Growth Fund
- Managed Payout Moderate Growth Fund
- Managed Payout Capital Preservation Fund"

See link for complete story - 34 bps ER and no guarantees.

[Vegomatic]

Note: Previous discussion in earlier post: "New VG Fund" [#6381]

[winterescape]

Strange, not sure of the advantage/ disadvantage over setting up systematic withdraws on after tax funds you hold with Vanguard or setting up systematic monthly payouts on IRA's.

When I recently filled out forms for systematic monthly distributions from an IRA for a family member I noticed you can elect to distribute fixed dollar amounts or select a payout timeframe and Vanguard will even manage the distribution amounts.

[Vegomatic]

Also - when VG creates the Fund of Funds, does it use Admiral shares?