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Vanguard - Managed Payout Funds

Funds, Stocks & ETFs  »  All-in-one funds  »  Managed Payout Funds

 
 
  
 

All-in-one funds

A diversified portfolio in a single fund

 
 
 
 
 
 
  
 

Vanguard Select Funds™

A short list of well-established funds

 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 

Vanguard Managed Payout Funds

An all-in-one mutual fund approach to retirement income that generates regular monthly payments while letting you maintain control of your assets.

Vanguard offers three Managed Payout Funds, featuring varying levels of monthly distributions and potential for your principal to grow in the long run.

Vanguard Managed Payout Funds*:

  • Automatically generate regular monthly payments that are set each year and expected to remain constant from month to month throughout the calendar year.
  • Adjust payment amounts each January, which could be higher or lower than the current payments, based on the performance of the funds.
  • Invest in a number of Vanguard funds, providing access to a broad array of asset classes and investments.
  • Provide further opportunities for diversification through exposure to selected alternative investment strategies (which may include commodity-linked and market-neutral investments, such as Vanguard Market Neutral Fund).
  • Can easily be transferred to your spouse or heirs.
  • Feature low costs that can help you keep more of what you earn.
  • Are not guaranteed to achieve their investment objectives and are subject to loss. Also, a portion of the distributions may represent the return of your original investment, commonly known as "return of capital."

See some frequently asked questions. Read important information about the funds.

Get more information about retirement income.

 

Decide which Managed Payout Fund may be best for you

The Managed Payout Funds provide various levels of payouts and growth potential. Just answer a few simple questions to help you determine which fund may best suit your needs.
My objective for my income-generating assets is for those assets to continue to grow in value while I receive income.
I strongly agree
I agree
I disagree or somewhat agree
My objective is for my retirement income to grow with inflation.
I strongly agree
I agree
I disagree or somewhat agree
I'm willing to have lower income now, so that my assets and income can grow faster over time.
Tend to Agree
Tend to disagree

Estimate amount to invest or initial monthly payout for the current calendar year.

This information is temporarily unavailable.
Amount I have to invest ($25,000 min)
Desired initial monthly payout
$
Minimum investment is $25,000.

Estimated initial monthly payout
Comparative growth potential and investment risk
Managed Payout
Growth Focus Fund
Higher
Buy
Managed Payout
Growth and Distribution Fund
Moderate
Buy
Managed Payout
Distribution Focus Fund
Lower
Buy
Although the initial payout amount on Vanguard Distribution Focus is usually higher, the fund does not seek to grow your investment's principal.

* Patent pending.

All investing is subject to risk, including the possible loss of principal.

The dollar amount of a fund's monthly cash distributions could go up or down substantially from one year to the next and over time. Each fund is expected to continue to make monthly cash distributions under its managed distribution policy irrespective of the fund's investment performance. A fund's monthly cash distributions will reduce the amount of assets available for investment by the fund. It is possible for a fund to suffer substantial investment losses and simultaneously experience additional asset reductions as a result of its distributions to shareholders under the managed distribution policy. Moreover, even if a fund's capital grows over short, intermediate, or long periods of time, it is possible that such growth will be insufficient to enable the fund to maintain the amount of its scheduled cash distributions without returning capital to shareholders. Each fund is subject to the risks associated with its underlying funds, which may invest in stocks (including stocks issued by REITs), bonds, cash, inflation-linked investments, and long/short market-neutral investments, and its other investment holdings, which may include commodity-linked investments and leveraged absolute return investments. Diversification does not necessarily ensure a profit or protect against a loss in a declining market.

The funds' monthly distributions per share are calculated as of January 1 of that year and are generally expected to be fixed during the year.

Vanguard Managed Payout Funds may not be appropriate for all investors. For example, depending on the time horizon, retirement income needs, and tax bracket, an investment in a Managed Payout Fund might not be appropriate for younger investors not currently in retirement, in IRAs or other tax-advantaged accounts for those investors under 59½, or for participants in employer-sponsored plans. Investors who hold a Managed Payout Fund within a tax-advantaged retirement account should consult their tax advisors to discuss tax consequences that could result if payments are distributed from their core account prior to age 59½ or if they plan to use the Managed Payout Funds, in whole or in part, to meet their required minimum distribution (RMD) obligations. Distributions from the Managed Payout Funds are unlikely to precisely match an investor's IRA RMD obligations. In addition, use of the Managed Payout Funds may be restricted in employer-sponsored plans by the terms of the governing plan documents and/or at the discretion of the plan administrator. Review the information carefully with your financial advisor before deciding whether a Managed Payout Fund is right for you.

The calculator is for illustrative purposes only and is not indicative of any investment. This calculator is not intended to project or predict the present or future value of an actual holding. Past performance is no guarantee of future results. Monthly payouts are calculated based on a fund's annual distribution rate and the fund's average share price over the past three years (or since inception, whichever is shorter). Monthly payouts do not reflect the most recent closing NAV. The exact calculation, including an initial transition period, is explained in detail in the prospectus. Actual initial monthly payouts may vary slightly due to rounding. Buying additional shares of a fund or selling fund shares will proportionately increase or decrease, respectively, the dollar amount of a shareholder's future monthly payouts.

Before investing, consider the Managed Payout Funds' investment objectives, strategies, risks, fees, and expenses. Contact Vanguard for a prospectus containing this information. Read it carefully. Return to calculator.

 
 
 
 

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