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Old 06-07-2008, 08:36 AM   #181
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What does that mean, the dividend distributions from that fund is 4.24% of the current price?

But they only do distributions at certain times of the year so the yield could be different right?
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Are you referring to the admiral shares or whichever ones require $100k minimums?

Lump-sump purchase or average into it over a period of time?

I guess if 100k minimum, you'd have to buy a chunk at once and then could add to it.

So no DRIP, you'd take dividends into your cash account and spend it?
Here's Wellesley Admiral's page:
https://personal.vanguard.com/us/fun...FundIntExt=INT

The current yield is 4.34%. Dividends are provided quarterly. Click on "Performance" for more info on performance.

Here's Wellesley's non-Admiral page since you expressed concern with the $100K minimum for Admiral:

https://personal.vanguard.com/us/fun...FundIntExt=INT

Current yield here is 4.24%.

You asked about lump sum vs averaging into it. I am averaging into my equity funds, but decided to purchase my Wellesley all at once last February since share price is not as volatile as some. My dividends are directed towards VMMXX Prime Money Market and they have been quite nice. Click on "distributions" on the above to see how much they have been lately.

I will be retiring next year, and will be living off a tiny pension, Wellesley, a regular monthly payment from my TSP G-Fund, and (perhaps!) SS starting in 2010-2014 or so. Meanwhile, my equity funds will have the function of growing my portfolio in the long term. At the end of each year, or more often if necessary, I will rebalance my portfolio.

My AA is approximately 45:55, equity:fixed, as follows:
30% VWIAX Wellesley Admiral
20% VTSAX Total Stock Market Admiral
13% VFWIX FTSE All-World Ex-US
2% "play" equities, VEIEX Emerging Markets right now
The rest cash, bonds, TSP G-Fund
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Old 06-07-2008, 09:29 AM   #182
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Originally Posted by explanade View Post
Are you referring to the admiral shares or whichever ones require $100k minimums?

Lump-sump purchase or average into it over a period of time?

I guess if 100k minimum, you'd have to buy a chunk at once and then could add to it.

So no DRIP, you'd take dividends into your cash account and spend it?
Wellington and Wellesley already make up the core of our tax deferred accounts (we have been averaging into them over many years) but because we are still working and are in a high tax bracket, our taxable account is invested in slide and dice, tax-efficient indexes. When we retire, part of this account will be converted (probably in a lump sum) so that Wellington and Wellesley make up the core of our overall portfolio.

To invest in admiral shares, you have 2 choices: invest at least 100k+ in a lump sum, or invest in the corresponding investor shares over time. When the balance of your investor shares reaches 100k, they can be converted to admiral shares (or, with Wellington, if you have owned your investor shares for 10+ years and the balance of your investor shares reaches 50k).

But yes the plan is to transfer the dividends to a money market fund and use that money to pay for living expenses.
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Old 06-07-2008, 12:52 PM   #183
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Whenever a market change (down or up) triggers an emotional reaction in me, I like to ask myself the following questions:

(1) When I sell a stock, there is someone on the other side of the transaction who has to buy it from me. What do they know that I don't?

(2) When I buy a stock, there is someone on the other side of the transaction who has to sell it to me. What do they know that I don't?

This forces me to search for answers before I pull the trigger to make sure I know why I'm selling or buying (or not selling or not buying) the stock.
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Old 06-07-2008, 10:21 PM   #184
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If the Dow:Gold ratio bottoms out in the 3-5:1 range and gold goes to $2-2.5K per ounce, then the Dow will be in the 6,000-12,500 range. The midpoint would be in the 9,000-10,000 range, so I wouldn't be surprised to see the Dow fall another 25%.
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Old 06-08-2008, 04:33 AM   #185
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my strategy lately has been 2/3 in following the same newsletter,fidelity insight that i have been for over 20 years but the other 1/3 i went back to ole harry browns permanent portfolio idea.. ill tell you i find nothing more perfect than harrys mix these days... i was actually up on fridays 400 point plunge. at least in that 1/3 of my portfolio..gold and long term treasuries soared.. all it takes is a strong trend in one direction or another good or bad for the markets.

for the permanent portfolio mix i use

25% tlt long term treasurys deflation depression
25% gld inflation, un-good world events
25% vti prosperity
25% us trasury money market money to buy when somethung drops enough
rebalance when things get to far out of whack
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Old 09-17-2008, 05:48 PM   #186
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The DOW is on it's way to 8000. The FED is bankrupt and printing more money. The War rages on. The GDP is shrinking, The worlds largest financial institutions are failing. Government is bailing out private corporations. Real estate values are plummetting.
Anyone have any good news?

Many on this forum predicted this mess, yet were ridiculed by those that thought they were smarter than everyone else.
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Old 09-17-2008, 05:52 PM   #187
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Anyone have any good news?
Yes. The forum has an ignore feature.
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Old 09-17-2008, 05:56 PM   #188
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Yes. The forum has an ignore feature.
Well said!
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Old 09-17-2008, 06:07 PM   #189
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I don't know about 8000 but we may not even be half way though the real estate/financial crisis mess:

Alt-A may be the new home loans disaster- International Business-News-The Economic Times
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Old 09-17-2008, 06:40 PM   #190
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The DOW is on it's way to 8000. The FED is bankrupt and printing more money. The War rages on. The GDP is shrinking, The worlds largest financial institutions are failing. Government is bailing out private corporations. Real estate values are plummetting.
Anyone have any good news?

Many on this forum predicted this mess, yet were ridiculed by those that thought they were smarter than everyone else.
I can get this kind of gloom on CNBC. Think I will stick to sports forums for awhile.
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Old 09-17-2008, 07:15 PM   #191
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Anyone have any good news?
Yes. I went to the doctor today and he confirmed without a shadow of a doubt that I am alive.

Maybe I'm the only one that cares, but hey, it was good news to me.
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Old 09-17-2008, 08:36 PM   #192
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I remember at 14k dow people laughed at me for going all CD interest in retirement income...........

LOL

Might be time for the Amero soon folks, hold on.
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Old 09-17-2008, 08:39 PM   #193
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Isn't "excessive gloating" one of the things prohibited in Community Rules?
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Old 09-19-2008, 07:12 PM   #194
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Isn't "excessive gloating" one of the things prohibited in Community Rules?
No, only hubris is verboten.
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Old 09-20-2008, 11:38 AM   #195
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Hubris is verboten.. as well as "uber-" and "verboten".
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Old 09-20-2008, 11:45 AM   #196
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Can we get "utilize" on the uber-verboten list?

humblely asking, not with hubris!

ta,
mews
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Old 10-07-2008, 05:18 PM   #197
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8000 by the end of the week?
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Old 10-07-2008, 06:32 PM   #198
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8000 by the end of the week?
You tell us. You have the crystal ball. While your at it, where does it go from there?
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Old 10-07-2008, 06:44 PM   #199
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8000 by the end of the week?
Pick one:
Not sure.
Without a doubt.
Of Course.
May be.
Never!
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Old 10-07-2008, 10:49 PM   #200
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8000 by the end of the week?
If you would have told me a year ago we'd be at 9,500 today, I'd have said you're full of it. Just goes to show I can't predict the market. My only saving grace is that I already knew I couldn't...and I've never claimed that I could.

Now that the market is down, I'd just as soon see it stay there for 6 months so the 18% I have taken out of my paycheck along with our $8,000 IRA contributions we'll make in about a month buy us more equities at sale prices.

Dave
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