Calvin Jacobs is a widower who recently retired after a long career with a major Midwestern manufacturer. Beginning as a skilled craftsman, he worked his way up to the level of shop supervisor over a period of more than 30 years with the firm. Calvin receives social security benefits and a generous company pension. Together, these two sources amount to over $4,500 per month (part of which is tax-free). The Jacobses had no children, so he lives alone. Calvin owns a 2-bedroom rental house that is next to his home, and the rental income from it covers the mortgage payments for both the rental house and his house.

Over the years, Calvin and his late wife, Allie always tried to put a little money aside each month. The results have been nothing short of phenomenal. The value of Calvin's liquid investments (all held in bank CDs and saving accounts) runs well into the 6 figures. Up to now, Calvin has just let his money grow and has not used any of his savings to supplement his Social Security, pension, and rental income. But things are about to change. Calvin has decided, "What the heck, it's time I start living the good life!" Calvin wants to travel and, in effect, start reaping the benefits of his labors. He has therefore decided to move $100,000 from a savings accounts to 1 or 2 high-yielding mutual funds. He would like to receive $1,000 to $1,500 a month from the fund(s) for as long as possible because he plans to be around for a long time.

a. Given Calvin's financial resourced and investment objectives, what kinds of mutual funds do you think he should consider?