Author Topic: Investing advice: Managed Payout Funds vs ETFs?  (Read 1808 times)

Sea Mom

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Investing advice: Managed Payout Funds vs ETFs?
« on: June 13, 2013, 01:30:09 PM »
Hi all,
I'm new to MMM. I'm so impressed by how everyone seems to help each other, and am wondering if I can get a little advice from the community.

Background: My husband is 39, I'm 31 and a stay-at-home mom. We have 3 rental properties, which we plan to pay off to be FI in about 5 years.

My question: We are about to transfer 60K from our Schwab account to Vanguard. I liked his post on Managed Payout Funds, but I also saw another post on how ETFs are a good buy.

Would really appreciate some Mustachian input on how we should distribute our money.


Many thanks!

Sea Mom


matchewed

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Re: Investing advice: Managed Payout Funds vs ETFs?
« Reply #1 on: June 13, 2013, 01:36:40 PM »
Is the 60k a taxable account or tax deferred? What are you planning on doing with the 60k?

GreenGuava

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Re: Investing advice: Managed Payout Funds vs ETFs?
« Reply #2 on: June 13, 2013, 04:33:32 PM »
My question: We are about to transfer 60K from our Schwab account to Vanguard. I liked his post on Managed Payout Funds, but I also saw another post on how ETFs are a good buy.

ETFs aren't a product:  they're a wrapper for investments.  There are good ETFs and bad ETFs, and different ETFs have different characteristics.  For example, an ETF that invests in domestic bonds will behave differently than one that invests in international stocks, each of which is different from one that invests in commodities.

Other than how they're purchased (and, in some cases, tax treatment in non-tax advantaged accounts), an ETF isn't much different from a mutual fund.

What's your total investment portfolio like?  It's best to see how this fits into that.