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Generating Retirement Income Isn’t Easy, Even For Vanguard: (VPGDX)

FYI: Converting a pot of money into retirement income isn’t an easy task for many retirees—and it’s a tricky proposition even for fund firms.

Take the Vanguard Managed Payout (ticker: VPGDX) fund, one of the largest of a type of investment option aimed at helping retirees with the income conundrum. Vanguard cut its payout to investors this year by 8% after the portfolio took a hit in last year’s selloff.

The $1.8 billion fund (VPGDX) is structured to give investors regular monthly payouts that over time aim to keep pace with inflation. It targets an annual distribution rate of 4%—an effort to replicate a paycheck in retirement.

M* Snapshot VPGDX:
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