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03-06-2013, 07:34 AM
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#41
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,286
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 Quote:
Originally Posted by tdv2
Congrats OB on dipping your toe in the water. My Mom is very conservative and I convinced her to buy $50,000 Welleseley and $50,000 Wellington at year end 2012. She is very pleased with her purchase.
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Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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03-06-2013, 07:36 AM
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#42
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2007
Posts: 14,328
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Quote:
Originally Posted by Midpack
Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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Yea, poor Oby could lose 1% of his stash. 
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03-06-2013, 07:40 AM
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#43
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Quote:
Originally Posted by Midpack
Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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Here is how I would prepare: Set-up a regular investment to Wellesley, then ignore.
Done!
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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03-06-2013, 08:18 AM
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#44
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,500
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Quote:
Originally Posted by Midpack
Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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On my first foray into the market, about 30 years ago, I bought 17 shares of DIS.
The next day they dropped $2/share. 
When I expressed my disgust and dismay to my boss, a CPA, he said, "Oh my GOD. It's a good thing there are no tall buildings in town! "
I have since learned to buy on the dips.
__________________
Chief Retirement Strategist
The AR Group
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03-06-2013, 08:20 AM
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#45
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,286
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Quote:
Originally Posted by HFWR
Here is how I would prepare: Set-up a regular investment to Wellesley, then ignore.
Done!
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Me too. But I meant prepared to counsel his conservative mother if she gets anxious when she faces her first inevitable market correction. Unfortunately having an auto-invest program doesn't preclude panic or the like. I've had plenty of first hand experience with employees (auto) invested in 401ks who made all the wrong moves over and over again and really hurt their FI progress, despite all the investing education we offered them before, during and after.
None of us would wish that on anyone and his/her Mom/Dad. That's all I was getting at...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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03-06-2013, 08:38 AM
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#46
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Location: Northern IL
Posts: 26,885
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Quote:
Originally Posted by HFWR
Here is how I would prepare: Set-up a regular investment to Wellesley, then ignore.
Done!
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But you need to know what target AA the investor has decided on. Then decide on a time frame to hit it, and make contributions to match.
It isn't rocket science by any stretch, just some basics that need to be set. Can be done in just a bit more time than it takes to post "Welcome to the forum!".
-ERD50
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03-06-2013, 08:39 AM
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#47
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Full time employment: Posting here.
Join Date: Aug 2011
Location: Atlanta
Posts: 507
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Quote:
Originally Posted by obgyn65
Yes. You read the thread title correctly. The post from Accidental Retiree under the "Say Goodbye to the 4% Rule - tips from the WSJ " did it for me . 
This is the first time in my life I invest in something other than CDs, munis, or their European equivalent (apart from very small annuities).
If I lose money on this Wellesley Income Fund, I will send the bill to Midpack and ERD50 
Take care everyone
Ob |
I love that fund.
my Roth (a small one ) is 50% Wellesley and 50% STAR
I like to move small amounts in at a time.
Opening a new fund with the 3k min. is painfully for me!
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03-06-2013, 08:52 AM
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#48
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Full time employment: Posting here.
Join Date: Aug 2012
Location: Upstate
Posts: 699
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Quote:
Originally Posted by marc515
Since you have purchased at a current market high, please beware the market will go down, and back up like a roller coaster. When the market dips you need to control any panic you may have, stay the course, and ADD more.
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+1. There's an old saying that applies to the stock market and not much else -- whatever goes down, comes up, and keeps going up (eventually).
With Wellesley's allocation, it's possible that when interest rates eventually begin to rise (and they will), Wellesley could take a double hit -- losing on both the stocks and bonds sides. This will not be a time to panic and sell; this will be a time to begin accumulating more.
Tyro
__________________
Yeah well, that's just, ya know, like, your opinion, man. ~ The Dude
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03-06-2013, 09:20 AM
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#49
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Recycles dryer sheets
Join Date: Jan 2013
Posts: 194
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Quote:
Originally Posted by Midpack
Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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A BIG +1
And I know a lot of people who panicked in 2009, sold low, and now have a flat tire portfolio.
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03-06-2013, 12:05 PM
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#50
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,337
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Quote:
Originally Posted by Stanley
.....And I know a lot of people who panicked in 2009, sold low, and now have a flat tire portfolio.
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+1 Uncle did this (without consulting me, as usual). I do his tax return and that is when I found out. He has loss carryforwards up the kazoo. If I had known I would have tried to talk him out of it. Amazingly, it is money that he will probably never need since SS & pensions more than cover his living costs, but he is sometime a nervous nellie and if you remember back then they were nervous times.
A friend did so as well, delaying his retirement a number of years.
My AA kept telling me to buy more stocks back then, but I lacked the courage and just stayed the course. Glad I did, but I wish I had listened to my AA.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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03-06-2013, 12:12 PM
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#51
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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: 50,021
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Quote:
Originally Posted by pb4uski
My AA kept telling me to buy more stocks back then, but I lacked the courage and just stayed the course. Glad I did, but i wish I had listened to my AA.
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One of the fringe benefits of owning a balanced fund like Wellesley is all the rebalancing is done for you - on the way up, and on the way down. No courage needed.
__________________
Numbers is hard
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03-06-2013, 01:11 PM
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#52
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,122
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a bit late to the thread, but congratulations Obygyn 
By chance, were you pssst when you made the decision?
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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03-06-2013, 03:00 PM
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#53
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Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,984
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Staying the course, I just took some equities off the table an hour ago, keeping my 45/40/15 AA intact. Maybe I'll miss part of a big run up, but I've also never paniced in a downturn.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
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03-06-2013, 03:06 PM
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#54
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,337
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Quote:
Originally Posted by foxfirev5
Staying the course, I just took some equities off the table an hour ago, keeping my 45/40/15 AA intact. Maybe I'll miss part of a big run up, but I've also never paniced in a downturn.
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Me too. Glad to see our trades didn't affect the market today. 
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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03-06-2013, 03:14 PM
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#55
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Quote:
Originally Posted by ERD50
But you need to know what target AA the investor has decided on. Then decide on a time frame to hit it, and make contributions to match.
It isn't rocket science by any stretch, just some basics that need to be set. Can be done in just a bit more time than it takes to post "Welcome to the forum!".
-ERD50
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Quote:
Originally Posted by Midpack
Me too. But I meant prepared to counsel his conservative mother if she gets anxious when she faces her first inevitable market correction. Unfortunately having an auto-invest program doesn't preclude panic or the like. I've had plenty of first hand experience with employees (auto) invested in 401ks who made all the wrong moves over and over again and really hurt their FI progress, despite all the investing education we offered them before, during and after.
None of us would wish that on anyone and his/her Mom/Dad. That's all I was getting at...
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Hmmm, missed the part about "conservative mother". You're not talking about obgyn65 per chance? 
The point was that obgyn65 was avoiding equities, and decided to wade in to the baby pool by investing in Wellesley. Could make it all complicated, but I figured the best thing to do now is not obsess over price movements...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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03-06-2013, 03:52 PM
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#56
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,286
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See post #41, I was simply commenting to that post, not obgyn65.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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03-06-2013, 04:46 PM
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#57
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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psst Wellesley is nice. But I am looking forward to the discussion of his butterfly option trade on VIX futures, which I figure we will see in a year or two  .
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03-06-2013, 04:49 PM
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#58
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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No :-)
Quote:
Originally Posted by Alan
By chance, were you pssst when you made the decision?
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__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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03-06-2013, 05:03 PM
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#59
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,037
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All tremors aside... 
I think it's great that you are diversifying a bit. Plus...this was your decision, not someone else's. That means you understand your risk threshold, one of the key elements of investing.
Or so sayeth the dozen or so investment books I managed to read since 1997.
Forward it goes...
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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03-06-2013, 05:55 PM
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#60
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Thinks s/he gets paid by the post
Join Date: Feb 2012
Posts: 1,500
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Quote:
Originally Posted by clifp
psst Wellesley is nice. But I am looking forward to the discussion of his butterfly option trade on VIX futures, which I figure we will see in a year or two . |
Huh? There ya go, talkin' waaaay over my head again.
Then again, that is why I read here so often, so I can learn me somethin'.
__________________
Chief Retirement Strategist
The AR Group
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