Dow 8000?

Want2retire said:
it's a very common approach. Many combine Wellesley with Wellington, for example.
Click to expand...

That's exactly what I plan to do. I am shooting for an overall dividend yield close to 3.5% and a 50% stocks / 50% bonds AA. A core mixture of 50% Wellesley and 50% Wellington should get me there. The plan is to rely solely on the dividends generated by my portfolio to pay for my living expenses. The stock portion should allow the portfolio (and the income it generates) to grow overtime (hopefully keeping pace with inflation). Kind of a Norwegian widow approach I guess...
 
unclemick said:
Pssst - Wellesley = current yield 4.24% or a tad higher than the mighty mighty 4% rule.

heh heh heh - just thought I'd mention it. And I can still get by on my Target retirement 2015 at 3.05% in a hard times mode.

And and those Vanguard computers rebalance away - whether I laugh or cry. :D :cool:. Carry on!
Click to expand...

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?
 
FIREdreamer said:
That's exactly what I plan to do. I am shooting for an overall dividend yield close to 3.5% and a 50% stocks / 50% bonds AA. A core mixture of 50% Wellesley and 50% Wellington should get me there. The plan is to rely solely on the dividends generated by my portfolio to pay for my living expenses. The stock portion should allow the portfolio (and the income it generates) to grow overtime (hopefully keeping pace with inflation). Kind of a Norwegian widow approach I guess...
Click to expand...

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?
 
explanade said:
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?
Click to expand...
explanade said:
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?
Click to expand...
Here's Wellesley Admiral's page:
https://personal.vanguard.com/us/funds/snapshot?FundId=0527&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/funds/snapshot?FundId=0027&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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explanade said:
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?
Click to expand...

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.
 
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.
 
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%.
 
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
 
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.
 
Razor said:
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.
Click to expand...

I can get this kind of gloom on CNBC. Think I will stick to sports forums for awhile.
 
Razor said:
Anyone have any good news?
Click to expand...
Yes. I went to the doctor today and he confirmed without a shadow of a doubt that I am alive. :D

Maybe I'm the only one that cares, but hey, it was good news to me. ;)
 
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.
 
Hubris is verboten.. as well as "uber-" and "verboten".
 
Can we get "utilize" on the uber-verboten list?

humblely asking, not with hubris!

ta,
mews
 
Razor said:
8000 by the end of the week?
Click to expand...
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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