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06-07-2008, 07:36 AM
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#181
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,501
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Quote:
Originally Posted by explanade
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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Quote:
Originally Posted by explanade
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?
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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
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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06-07-2008, 08:29 AM
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#182
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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Quote:
Originally Posted by explanade
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?
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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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06-07-2008, 11:52 AM
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#183
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Recycles dryer sheets
Join Date: Apr 2006
Posts: 143
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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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06-07-2008, 09:21 PM
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#184
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Recycles dryer sheets
Join Date: Nov 2005
Posts: 62
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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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06-08-2008, 03:33 AM
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#185
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2005
Posts: 6,193
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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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09-17-2008, 04:48 PM
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#186
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 488
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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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09-17-2008, 04:52 PM
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#187
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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Quote:
Originally Posted by Razor
Anyone have any good news?
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Yes. The forum has an ignore feature.
__________________
Numbers is hard
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09-17-2008, 04:56 PM
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#188
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Thinks s/he gets paid by the post
Join Date: Apr 2006
Posts: 1,684
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09-17-2008, 05:40 PM
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#190
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by Razor
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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I can get this kind of gloom on CNBC. Think I will stick to sports forums for awhile.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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09-17-2008, 06:15 PM
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#191
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,296
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Quote:
Originally Posted by Razor
Anyone have any good news?
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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.
__________________
There's no need to complicate, our time is short..
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09-17-2008, 07:36 PM
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#192
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Recycles dryer sheets
Join Date: Jun 2007
Posts: 377
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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.
__________________
No Soup for you! Come back 1 year!
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09-17-2008, 07:39 PM
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#193
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,022
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Isn't "excessive gloating" one of the things prohibited in Community Rules?
__________________
Numbers is hard
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09-19-2008, 06:12 PM
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#194
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Recycles dryer sheets
Join Date: Apr 2008
Posts: 174
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No, only hubris is verboten.
__________________
Nihil obstat.....
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09-20-2008, 10:38 AM
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#195
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Thinks s/he gets paid by the post
Join Date: Oct 2005
Posts: 2,713
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Hubris is verboten.. as well as "uber-" and "verboten".
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09-20-2008, 10:45 AM
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#196
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Recycles dryer sheets
Join Date: May 2008
Posts: 479
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Can we get "utilize" on the uber-verboten list?
humblely asking, not with hubris!
ta,
mews
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10-07-2008, 04:18 PM
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#197
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 488
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8000 by the end of the week?
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10-07-2008, 05:32 PM
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#198
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,072
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Quote:
Originally Posted by Razor
8000 by the end of the week?
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You tell us. You have the crystal ball. While your at it, where does it go from there?
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
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10-07-2008, 05:44 PM
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#199
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by Razor
8000 by the end of the week?
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Pick one:
Not sure.
Without a doubt.
Of Course.
May be.
Never!
__________________
May we live in peace and harmony and be free from all human sufferings.
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10-07-2008, 09:49 PM
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#200
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Thinks s/he gets paid by the post
Join Date: Mar 2007
Posts: 1,860
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Quote:
Originally Posted by Razor
8000 by the end of the week?
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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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