About Michael A. Weiss, CFA Expertise I can provide high quality answers to questions about mutual funds domiciled in the United States. Overall, I have 15 years of investment experience. I am currently the Editor of <a href="http://www.mutualfundinvestor.net/">The Mutual Fund Investor</a>, a quarterly publication that provides recommendations and commentary on various no-load mutual funds. I am also currently the Chief Investment Officer of a state registered investment advisory firm that specializes in no-load mutual funds.
Experience Overall, I have 15 years of investment experience. I am currently the Editor of The Mutual Fund Investor, a quarterly publication that provides recommendations and commentary on various no-load mutual funds. To learn more about The Mutual Fund Investor, please visit <a href="http://www.mutualfundinvestor.net/">http://www.mutualfundinvestor.net/</a>. I am also currently the Chief Investment Officer of a state registered investment advisory firm that specializes in no-load mutual funds.My mutual fund experience began at a company called Lipper Analytical Services, where I researched and wrote about mutual funds. Lipper is one of the premier mutual fund research and ratings organizations. After Lipper, I worked as an investment analyst for Merrill Lynch’s multi-billion dollar Mutual Fund Advisor and Selects Programs. I also have experience working with individual stocks and bonds. I have managed investment portfolios for both Merrill Lynch Investment Managers as well as Evergreen Investments.<BR><BR><B>Organizations</B><BR>CFA Institute
CFA Society of Philadelphia
<BR><BR><B>Publications</B><BR>The Mutual Fund Investor
<BR><BR><B>Education/Credentials</B><BR>CFA charterholder
MBA in Finance and Investments from the Zicklin School of Business at Baruch College<BR>
Expert: Michael A. Weiss, CFA Date: 11/25/2007 Subject: Immediate payment accounts
Question Thank you for providing this service. I am in the research phase of my investing which has led me to look into mutual funds, forex, real estate as well as annuities. My question is; can a mutual fund be setup whereas monthly withdraws can act as income? I know immediate annuities acted this way, but I am wondering can a mutual fund have similar qualities. If so, what are the pros and cons?
Thank you
Jaz
Answer Hi Jasmaine,
Yes, mutual funds can be set up this way. You can do this when you open an account or can make that change in the future.
In addition, you could always redeem money as necessary without formally setting up automatic withdrawals. With a couple of clicks on your keyboard, you could have money sent to your bank account. This is a feature that needs to be set up in advance of transactions.
Advantages include
1. Its simple, you don't have to worry about periodically redeeming shares. This will be done automatically for you
2. You don't have to worry about market timing mistakes (selling at the wrong time). You sales will occur at the fixed time that you specify
Disadvantages:
1. Taxes. you could incur a tax liability everyone money is distributed to you. (assuming this is a taxable account)
2. You need to be sure that you will always need the distribution. If you don't need the money, then you have created an unnecessary taxable event.
3. Selling at the wrong time. Some people watch the market very closely and would not want to sell when prices are very low.
