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Old 03-06-2013, 08:34 AM   #41
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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.
Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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Old 03-06-2013, 08:36 AM   #42
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Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
Yea, poor Oby could lose 1% of his stash.
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Old 03-06-2013, 08:40 AM   #43
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Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
Here is how I would prepare: Set-up a regular investment to Wellesley, then ignore.

Done!
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Old 03-06-2013, 09:18 AM   #44
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Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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.
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Old 03-06-2013, 09:20 AM   #45
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Here is how I would prepare: Set-up a regular investment to Wellesley, then ignore.

Done!
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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Old 03-06-2013, 09:38 AM   #46
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Here is how I would prepare: Set-up a regular investment to Wellesley, then ignore.

Done!
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!".

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Old 03-06-2013, 09:39 AM   #47
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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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Old 03-06-2013, 09:52 AM   #48
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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.
+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.

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Old 03-06-2013, 10:20 AM   #49
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Just be prepared when the market correction comes, as they always do. That's when the rubber meets the road...
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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Old 03-06-2013, 01:05 PM   #50
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.....And I know a lot of people who panicked in 2009, sold low, and now have a flat tire portfolio.
+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.
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Old 03-06-2013, 01:12 PM   #51
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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.
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.
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Old 03-06-2013, 02:11 PM   #52
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a bit late to the thread, but congratulations Obygyn

By chance, were you pssst when you made the decision?
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Old 03-06-2013, 04:00 PM   #53
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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.
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Old 03-06-2013, 04:06 PM   #54
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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.
Me too. Glad to see our trades didn't affect the market today.
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Old 03-06-2013, 04:14 PM   #55
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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!".

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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...
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...
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Old 03-06-2013, 04:52 PM   #56
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Hmmm, missed the part about "conservative mother". You're not talking about obgyn65 per chance?
See post #41, I was simply commenting to that post, not obgyn65.
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Old 03-06-2013, 05:46 PM   #57
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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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Old 03-06-2013, 05:49 PM   #58
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No :-)
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By chance, were you pssst when you made the decision?
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Old 03-06-2013, 06:03 PM   #59
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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...
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Old 03-06-2013, 06:55 PM   #60
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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 .
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'.
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