You spent years building a nest egg.  Now, Fidelity, Vanguard and other fund families will offer funds that gradually pay money out to retirees.  Jonathan Clements of the WSJ explains "payout" mutual funds.

The most appealing offerings, however, could come from Vanguard Group, which expects to roll out three low-cost payout funds in early 2008.

One fund will aim to pay 3% annually, with both that income stream and an investor's principal rising faster than inflation. Another will try for a 5% payout, with that income and a shareholder's principal climbing at the inflation rate. Finally, the highest-yielding fund will go for a 7% payout, while aiming to preserve an investor's initial investment in nominal terms.