Seconded.

I would add (expect you would concur) the stocks should be globally diversified. Perhaps 50%  U.S+Canada,   40% EFA, 10% emerging...?

p.s. - One could assemble a reasonable facsimile with VYM+PID (and DEM, if emerging is a priority)  on the equity side (the first two are quarterly payers), and MUB for the munis... 

I agree, and this would be a real winner.. 

 ================

Eventually I see V coming up with an International High Dividend Index to compliment Vhdyx/ Vym. That would make another important component available to a 'Tax Advantaged Balanced Income Fund'. 

================

The 'managed payout funds' are not for taxable accounts.

This new fund would be geared to late boomer's/retiree's taxable investments they wish to convert to a growing income stream without having to sell off shares of the funds themselves.

With Managed Payout Funds, V is looking to get 401K rollovers......

With a 60/40 (bonds) Tax Advantaged Balanced Income Fund, they can go after inheritances!  

t

Federated offers Fmuax, but it doesn't have enough stocks to grow an income stream.

Dreyfus offers a muni stock balanced fund that also is not desigend to nor has grown an income stream, nor is particularly efficient in terms of CGs

Claymore offers TYW, a leveraged muni /stock CEF I wouldn't touch..

============== 

There IS nothing like this new potential Vanguard Fund from anyone, and the need for a product like this is great! This new fund would also be completely different than Tax Managed Balanced or Price Tax Managed Balanced which hold low yielding stocks.

 ==============

This would grow an income stream!

t

TaylorZR:

Some might say it would be just as easy to own two funds but in reality many investors want that volatility hidden away!

A gem of a statement, t.  Yes, we all know the portfolio needs to be looked at as a whole, but that may be easier said than done for many.

So t, what are you calling the fund and where should folks send their investment? LOL!

Great idea!

Brian

Anyone who thinks this is a good idea should take a minute to pick up the phone, and call Vanguard.

t

TaylorZR:

Vanguard Tax Advantaged Balanced Income

A 60/40 low cost / no load / unleveraged / tax advantaged balanced income fund (for taxable accounts) that combines 60-65% High Yield Dividend Stocks (VYM/Vhdyx) with 35-40% Municipal Bonds(vwitx).

The objective would be long term growth of income,with capital appreciation a second objective.

This may not work under the current tax laws; the fund may not be able to avoid taxes on municipal-bond interest if less than half of its holdings are in municipal bonds.  I couldn't find the rule on Vanguard's web site, but I believe that this is Vanguard's explanation for the 51% bond holding of Tax-Managed Balanced Fund (rather than the 35% which is more common for balanced funds).

Vanguard's balanced annuity holds 60-70% in dividend paying stocks and uses LT corporates in bonds.

The ER is 0.76%, but you would lose this much difference in return with munis over what you might expect to pay for a Vanguard fund that offers this; https://personal.vanguard.com/us/funds/snapshot?FundId=1259&FundIntExt=INT

Chin

Thanks for the info .........

Taylor