If you're retired and need to live off of your savings, then you need to invest in bond oriented mutual funds that produce a stable income. The Vanguard fund group is very strong in this area, so you could consider investing in:

Vanguard GNMA VFIIX , High-Yield Corporate VWEHX ,

Intermediate-Term Investment-Grade VFICX , Total Bond Market Index VBMFX and Wellesley Income VWINX


Income investors still need some growth to make their money last thru retirement, so a suggested Vanguard portfolio for someone with $200,000 to invest could be:

  2. Intermediate-Term Investment-Grade VFICX
  3. High-Yield Corporate VWEHX
  4. Wellesley Income VWINX
  5. Wellington VWELX  
  6. REIT Index VGSIX
  7. Total Stock Market Index VTSMX
  8. Global Equity VHGEX
  9.  Windsor II VWNFX
  10.  Strategic Equity VSEQX


You can invest $20,000 in each fund and tell Vanguard to send the dividends & capital gains to your bank account for funds 1 thru 6. Use funds 7 thru 10 for growth and have them reinvest the dividends & capital gains. If you still need more income after 3 to 5 years, redeem some of the shares in one or two of the funds.


Other income producing funds to consider for retired investors are:

Berwyn Income BERIX
Loomis Sayles
Bond Ret LSBRX
Northeast Investors NTHEX

Westcore Plus Bond WTIBX and Flexible Income WTLTX
T. Rowe Price
Spectrum Income RPSIX