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Yes, but I may not need all the money, so I plan to seek moderate returns, even if it means added risk. There's a 50% chance that I'll need 50% of the money, if that makes sense.
Unfortunately bond funds are not a good option, as interest rates will increase. A broad market index fund is attractive and tax efficient, but may be too risky for my time horizon, despite the fact that I am not risk averse.
I am thinking Vanguard Wellington, but are there other alternatives? It lost 30% in recession, but I can tolerate that, considering how it performed the preceding and succeeding 4 years before and after the dip.
Past performance isn't an indicator of future results. What if it post back to back 30% declines? You start year 3 with 49% of your original investment
Past performance isn't an indicator of future results. What if it post back to back 30% declines? You start year 3 with 49% of your original investment
Talk about Mr. Negativity. While past performance is certainly no guarantee of future results, your pessimism is worse than the history of the modern stock market for this fund, including the 1929 market crash.
Playing it too safe GUARANTEES a loss in my book - no potential for a win is stupid unless you absolutely need the money 100%, which is not my case. However if market conditions are truly that bad, then I certainly won't use the money for what I was planning to do with it. With a bear market that bad, assuming fundamentals are strong, I would probably shift into equities to take advantage of the recovery.
Talk about Mr. Negativity. While past performance is certainly no guarantee of future results, your pessimism is worse than the history of the modern stock market for this fund, including the 1929 market crash.
Playing it too safe GUARANTEES a loss in my book - no potential for a win is stupid unless you absolutely need the money 100%, which is not my case. However if market conditions are truly that bad, then I certainly won't use the money for what I was planning to do with it. With a bear market that bad, assuming fundamentals are strong, I would probably shift into equities to take advantage of the recovery.
Either you are worried about downside or not. You can't quote a 30% loss and then talk about the recovery as though that's how it will go down next time. It's not about negativity but reality. Your idea, wants are disconnected with reality and the risk involved
Either you are worried about downside or not. You can't quote a 30% loss and then talk about the recovery as though that's how it will go down next time. It's not about negativity but reality. Your idea, wants are disconnected with reality and the risk involved
My idea is on par with historical averages and I accept the risk involved. That being said, I think US equities are currently overvalued unless underlying fundamentals support the higher prices.
My idea is on par with historical averages and I accept the risk involved. That being said, I think US equities are currently overvalued unless underlying fundamentals support the higher prices.
6-8% is not on par with minimizing potential for losses anything under 6% isn't worth your time. There is a disconnect
I thought Wellington is closed and Wellesley is the open alternative.
Wellington is closed to institutional investors but not to individuals. I just moved some money into Wellington and feel it is a great fund and fits into my long term investing plan.
6-8% min return with downside protection or limited loss is a pipe dream, three really important things do not line up for you
Investing time horizon
Risk tolerance
Expected return
This is what I'm thinking. I say go with Vanguard Wellesley Income over Vanguard Wellington if your time horizon is only 5 years.
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