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Yield at market is stock dividends plus bond cupons divided by total capital. It does not include realized or unrealized capital gains.

The $100 per month fee is rediculous. You could get a much better result by putting the same allocation into Vanguard Bond Funds and S&P500 index funds. If you can, get out of the trust and save yourself $1200 per year.

Most would say that you can safely withdraw 4% per year from savings and never run a serious risk of depleting it. To the contrary, you can expect it to grow at about 3 to 4% per year. That would be about $267/mo. If you are willing to forget inflatiion, you can get around 6.5% to 6.7% in individual bonds or CD's. That would give you your $400/mo.

A more aggressive approach would be to but about $15,000 in a five year bond or CD ladder. ($3000 in a money market fund, $3000 maturing in one year, $3000 maturing in two years, etc.) Put the remaining $65,000 in an S&P500 Index Fund like Vanguards VFINX.
Your cash flow would come from the cupon on the bonds, the dividends on the stocks, and the maturing CD's.

Each year if the market is up sell another 3000 or so of the VFINX and replenish the bond ladder. If the market is down, hold on and wait until it recovers. You can wait up to 5 years. Not long enough? Use a 7 or even 10 year bond ladder. At ten years you will still be $30,000 in bonds, $50,000 in stocks.

My $0.02 worth. Ask away if you need help with bond ladders or index funds.



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