Review of Vanguard’s Managed Payout Funds

Are you looking for an investment that will pay you out monthly for your investment? Recently, when I was looking into annuities I came upon Vanguard’s Managed Payout Fund’s. In looking I couldn’t find any annuities that would continue to payout after the initial investment except an managed fund like Vanguard’s.

For an initial investment of $25,000 you can get into one of these three investments. Like I wrote about in April this type of investment could be one of your potential “passive income” streams and the chance to get off the cycle of living paycheck to paycheck. In my opinion, if you can throw together money for the initial investment, then you can start making monthly direct deposits to the investment to get one step closer to financial freedom. Here are a few important facts about the funds: 

  • Growth Focus Fund
    • Summary – High growth potential and lowest monthly payout
    • Stocks – about 85%
    • Bonds – about 5%%
    • Other – about 10%
    • How much would your initial investment pay you (as of the writing of this article)?  $54/month
  • Growth and Distribution Fund
    • Summary – Moderate growth and medium payout
    • Stocks – about 75%
    • Bonds – about 15%
    • Other – about 10%
    • How much would your initial investment pay you (as of the writing of this article)?  $94/month
  • Distribution Focus Fund
    • Summary – Low growth and highest payout
    • Stocks – about 70%
    • Bonds – about 20%
    • Other – about 10%
    • How much would your initial investment pay you (as of the writing of this article)?  $138/month

    Here are few other important keys to the Managed Payout Funds.

Have you ever heard of the managed payout funds? What other funds have you heard of the provide the same type of monthly payout?

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