What should I do?

[nld1960]

Hi, I am from Cape Cod and have been retired since 2007. I retired from Woods Hole Oceanographic Institution here on the Cape.
My wife Pam and I have no debt and live on our Social Security.
Most of our money is with TIAA/CREF and recently received $80,000 that we don't know what to do with.
We were going to have Fidelity Portfolio Advisory Service (PAS) invest it for us but these forums warned against it, hence we are here.
We could use your help. Thank you, Rene

[pb4uski]

What are your goals with respect to these funds? Any plans to use them and if so, when and in what way?

Or will you just add this to the kitty? If so, what is your target AA and how is the kitty currently invested?

[Foodie]

I would not do anything different than what you have been doing. For example, if you current AA is 50/50... then get $40K to stocks and $40K to bonds.

Well, if it was an inheritance I would spend a little bit of money in something that would remind me of the person: a nice bottle of wine, a trip to a given place, etc.

Bottom line, what you have been doing has worked for you and Pam. Why change?

[marko]

Quote:

Originally Posted by Foodie Well, if it was an inheritance I would spend a little bit of money in something that would remind me of the person....

This is an excellent point. My company used to give a small 'acknowledgement' of $500 if you received a patent for the company. (Patent became property of the company)

Instead of just spending the $500 and never knowing where it went, a coworker bought himself a nice $500 desk lamp. "Every day I'm reminded of my patent!"

[nld1960]

The money had been in a 360 Allianz FIA and I could not wait to get it out with a $500 loss.
We do not need this money for anytime soon and are interested in principal preservation with some growth potential.
I am very concerned with our debt and the fact that we have been printing money willy nilly for the past 9 years. What will happen when the hammer comes down?

[target2019]

Quote:

Originally Posted by nld1960 The money had been in a 360 Allianz FIA and I could not wait to get it out with a $500 loss. We do not need this money for anytime soon and are interested in principal preservation with some growth potential. I am very concerned with our debt and the fact that we have been printing money willy nilly for the past 9 years. What will happen when the hammer comes down?

It sounds like this is going into a taxable account. Depending on your income level, and what your goals are, it may work to invest at an institution that has growth ETFs or funds, with no fee. This can be done at Vanguard, Fidelity, Schwab, etc.

[nld1960]

Thank you Target2019, as a matter of fact, I just opened an account with Fidelity. You say growth ETFs or growth money market funds? Might you give me a little more info? Thank you

[pb4uski]

Quote:

Originally Posted by nld1960 The money had been in a 360 Allianz FIA and I could not wait to get it out with a $500 loss. We do not need this money for anytime soon and are interested in principal preservation with some growth potential. I am very concerned with our debt and the fact that we have been printing money willy nilly for the past 9 years. What will happen when the hammer comes down?

Vanguard Wellesley Income Fund

[nld1960]

Thank you so much, that is exactly what I was looking for, hopefully I can buy through Fidelity

[nld1960]

Would you have any idea what the cost would be for me over and above the price of VWINX (Vanguard Wellesley Income Fund) Would I be far off if it is .22% annually?

[retire2020]

+1 to Wellesly Income Fund.

nld1960.....with 80K, you can buy Admiral Shares(VWIAX) of Wellesley Income which has lower expense ratio than VWINX.

[target2019]

Quote:

Originally Posted by nld1960 Thank you Target2019, as a matter of fact, I just opened an account with Fidelity. You say growth ETFs or growth money market funds? Might you give me a little more info? Thank you

Know your tax situation as well as goals. Fidelity advisor might be a good source for discussion.

https://www.fidelity.com/etfs/ishares

It's important to know what you're buying form different perspectives: Risk, Return, Real Return, Taxable Return, etc.

[nld1960]

Fidelity charges $71 to buy the shares, that is what I meant, but thanks for the advice, love that fund

[nld1960]

I bought some 750 shares of Vanguard Wellesley Income Fund (vwinx), it seems kind of dead in the water so to speak and is not following the DOW. Have you any idea why? In the past it has followed the Index, but not this time.
Thank you

[REWahoo]

Quote:

Originally Posted by nld1960 I bought some 750 shares of Vanguard Wellesley Income Fund (vwinx), it seems kind of dead in the water so to speak and is not following the DOW. Have you any idea why? In the past it has followed the Index, but not this time. Thank you

Because it is a balanced fund holding 60-65% bonds which have taken a hit over the past few months due to the Fed raising rates.

[nwsteve]

Many Vanguard Funds have ETF equivalents but not Wellesley. You can buy the ETFs for 4.95 per transaction. If you are comfortable with a bit more equity exposure, take a look at Fido's balanced fund Fbalx--comparable to Wellington mix--both 5 * from Mstar. Fido FBALX is a no fee fund. Performance very comparable

[Al18]

In addition to Fidelity Balanced fund FBALX, check out Fidelity Puritan FPURX. Performance between the two is very similar and total fees are very similar (.56% for Puritan vs .55%). Puritan bond allocation is slightly different - 25% of the bonds are less than investment grade or emerging market. It looks like they're trying to improve yield.

[nld1960]

Thank you, I have bought some, but should have bought more. I also have FPURX, my goodness this is an unbelievable fund, I bought quite a bit. I think I might sell the VWINX, but don't know how long I have to hold on to it before I can sell it. I am too old for continued losses. Have you any idea when I can sell the Vanguard Wellington?

[nld1960]

Do you actually own any of these? (VWINX)?

[REWahoo]

Quote:

Originally Posted by nld1960 Thank you, I have bought some, but should have bought more. I also have FPURX, my goodness this is an unbelievable fund, I bought quite a bit. I think I might sell the VWINX, but don't know how long I have to hold on to it before I can sell it. I am too old for continued losses.

Sounds to me like you don't have the risk tolerance to be investing in the market - equity or bond. Maybe stick to CD's rather than buy high and sell low.