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Old 12-13-2016, 07:50 AM
 
29,782 posts, read 34,871,258 times
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Quote:
Originally Posted by saralvr View Post
Tuborg, Thank you. Great points to digest as well. We have money in CDs that are obviously earning nothing. As a small one came due we opened the Wellsley with it. We have a 5 year ladder with EverBank and that is our emergency fund. We also have 2 years liquid for living expenses until we start SS. My husband, though laid off almost 3 years ago, has been able to do contract work for about 3 months of the year. It pays a great part of our living expenses so we haven't had to dip yet into principal too much.

As far as RMDs, I've started to research this recently. I spoke to my accountant as well to get some more understanding of how it will affect us in the future. We have some time as we are 63 and 61. I want to meet with a fee based financial planner in the near future to help outline how we should go about withdrawals when the time comes.

Again, thank you so much. I've learned so much over the past few years here. Invaluable.
We haven't done laddered CD's because of pensions and other factors. I have always wondered how people were handling those as they matured at higher rates than available currently. I have read and understand what folks posting in other forums are doing but this one is more mainstream and not a financial forum often with a different type of poster.
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Old 12-15-2016, 03:40 AM
 
26,102 posts, read 28,506,784 times
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Quote:
Originally Posted by saralvr View Post
I know this is a dividend fund. We had some extra money around and opened this up about 5 months ago. Constantly going down. It got such high reviews. With everything going up, why is this down? Any recommendations? I know it's just a very little bit we put into this, but it's obviously not the right tool. Thanks
The fund is up over 8% year to date. Judging it as "constantly going down" and "not the right tool" when you've only held it 5 months is a reflection of unrealistic expectations on your part.
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Old 12-15-2016, 07:43 AM
 
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Originally Posted by mysticaltyger View Post
The fund is up over 8% year to date. Judging it as "constantly going down" and "not the right tool" when you've only held it 5 months is a reflection of unrealistic expectations on your part.
Perhaps not just unrealistic expectations but also going all in with a one time amount instead of going in over a time period. When you do that you are at the mercy of one moment in time. If you do go all in at one time and add new money to your windfall it cushions the impact of timing.
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Old 12-15-2016, 09:15 AM
 
Location: SoCal
13,229 posts, read 6,331,374 times
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Quote:
Originally Posted by TuborgP View Post
Perhaps not just unrealistic expectations but also going all in with a one time amount instead of going in over a time period. When you do that you are at the mercy of one moment in time. If you do go all in at one time and add new money to your windfall it cushions the impact of timing.
It's hard to see your fund goes down when the stock market goes up. Big chunk or not.
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Old 12-15-2016, 09:34 AM
 
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Originally Posted by NewbieHere View Post
It's hard to see your fund goes down when the stock market goes up. Big chunk or not.
Sure but that's the risk you take when you open a new fund and have a nice chunk to work with. After tax investing can involve decisions that workplace savings don't require. I have had it happen to me and that includes Wellesley. However I was adding money to it and it was only one part of the puzzle. But I understand the decision and how after time it became a ho hum with normal market movement and other pieces at work. However remember Wellesley is not a equity weighted fund so yes it can function differently than equity funds. Had they chosen Wellington they might have had different results.
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Old 12-15-2016, 09:47 AM
 
14,260 posts, read 23,991,339 times
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^^^
No one seems to complain when you put a huge chunk of money in and your value increases 25% in one year.

If you invested in Vanguard Wellington and Vanguard Wellesley for the past 30 years, you did very well. Very well.
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Old 12-15-2016, 09:57 AM
 
29,782 posts, read 34,871,258 times
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Originally Posted by jlawrence01 View Post
^^^
No one seems to complain when you put a huge chunk of money in and your value increases 25% in one year.

If you invested in Vanguard Wellington and Vanguard Wellesley for the past 30 years, you did very well. Very well.
Yup and yup. Even since my initial loss I have made that up plus some. My latest and most current example is the new Vanguard Core Bond fund that opened earlier in the year.
https://personal.vanguard.com/us/ins...ment-C2-032016

I put the money up early knowing the opening share cost would be $10.00 per share. It is a low fee actively managed intermediate bond fund. With the potential to navigate the current waters more deftly than a bond index fund. At first good, very good and then the expected changing bond market value and now a share value of $9.81 with a yield of 2.7 percent.
https://personal.vanguard.com/us/fun...FundIntExt=INT

If you note the chart in the lower right corner my initial entry is still in the plus category however I know subsequent investments aren't. That's the way we roll.
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Old 12-15-2016, 11:17 AM
 
Location: Texas
202 posts, read 141,044 times
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Quote:
Originally Posted by NewbieHere View Post
It's hard to see your fund goes down when the stock market goes up. Big chunk or not.
I don't really see why when we are talking about Wellesley. It is mostly not stocks, so you don't really expect it to move in tandem with the stock market. If it did, then it wouldn't serve the niche it is in. It is a little under 20% of our portfolio and has been for several years and has been a steady performer. The attraction with Wellesley is that it has some growth, pays some income and is less volatile than a pure stock fund. Being disappointed when it doesn't act like a pure stock fund is fundamentally misapprehending the nature of the fund. (Of course, we would all like to see all of our funds of any type do nothing but go up, but that isn't realistic to expect).
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Old 12-15-2016, 11:36 AM
 
Location: New England
248 posts, read 183,572 times
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I own a lot of the Wellesley Income Fund. This past weekend, I saw one of my friends that was a VP at Mellon Bank at a Christmas Party over the weekend. He and I were talking investments, he said the Wellesley Income Fund has an excellent track record and probably a wise choice as feels that lightening up on equities now is prudent. His two sons are both mutual fund managers, one in Denver the other is in Boston.
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Old 12-15-2016, 12:28 PM
 
Location: SoCal
13,229 posts, read 6,331,374 times
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Quote:
Originally Posted by Koshka2 View Post
I don't really see why when we are talking about Wellesley. It is mostly not stocks, so you don't really expect it to move in tandem with the stock market. If it did, then it wouldn't serve the niche it is in. It is a little under 20% of our portfolio and has been for several years and has been a steady performer. The attraction with Wellesley is that it has some growth, pays some income and is less volatile than a pure stock fund. Being disappointed when it doesn't act like a pure stock fund is fundamentally misapprehending the nature of the fund. (Of course, we would all like to see all of our funds of any type do nothing but go up, but that isn't realistic to expect).
Perhaps. I was investing for my kid, I couldn't stomach it when the stock market went up and the fund went down. I immediately switched to Wellington. It's a 1/3 of her portfolio, small chunk, but I was happy of my action. I don't mind the fund goes down when the stock market goes down. It's psychology I guess.
In the end, I realized that at my kid's age, it's better to be more in stocks.
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