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Just bought $50,000 worth of Wellesley
03-05-2013, 04:39 PM
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#1
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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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Just bought $50,000 worth of Wellesley
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
__________________
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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03-05-2013, 04:42 PM
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#2
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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: 50,004
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Interesting that you bought on the day the fund hit an all-time high.
You will do fine as long as you don't get nervous in a downturn and sell.
__________________
Numbers is hard
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03-05-2013, 04:48 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2005
Location: Chicago
Posts: 13,151
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First thing I thought of!
But, yes, I think it is highly unlikely that a young fella like Obgyn65 would leave this earth with Wellesley below the price he paid today. It's moved past all time highs many times in the past.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
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03-05-2013, 04:53 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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Holy Cow! I never thought we'd see the day. Congratulations obgyn65 on getting your feet wet. Let's see, that would be a ~2% allocation to equities? Well, you gotta start somewhere!
And to Accidental Retiree, I bet you never thought you could have so much influence!
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03-05-2013, 05:00 PM
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#5
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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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I don't know. That is such a new, risky and untried fund.
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03-05-2013, 05:02 PM
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#6
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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: 21,204
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Jeeeeez, did the earth spin off it's axis?
Seriously, good for you. If you lose money on Wellesley, it'll be because you sold off when you shouldn't have most likely. Developing an AA & rebalancing is the easy part (despite all the discussions and books) - having the patience/discipline/intestinal fortitude to ride out the inevitable downturns when they hit is where most investors get themselves in trouble.
__________________
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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03-05-2013, 05:04 PM
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#7
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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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I don't know what the AA would be exactly. Between 1 and 2%, I guess. Depending on GBP and Euro fluctuations vs USD.
Quote:
Originally Posted by Meadbh
Holy Cow! I never thought we'd see the day. Congratulations obgyn65 on getting your feet wet. Let's see, that would be a ~2% allocation to equities? Well, you gotta start somewhere!
And to Accidental Retiree, I bet you never thought you could have so much influence!
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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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03-05-2013, 05:06 PM
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#8
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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The idea is to buy high and sell at higher.
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03-05-2013, 05:07 PM
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#9
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Full time employment: Posting here.
Join Date: Jan 2013
Posts: 681
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Your purchase of Wellesley reminds me very strongly of my purchase of $50,000 of Vanguard Wellington in October, 2006. My intention was to create a "vacation fund" for DW, and that was one of the few funds I was willing to buy and hold indefinitely without fear of getting nervous and selling at the worst possible moment. The agreement with DW is that she can use any profit from Wellington over and above the initial investment for whatever purpose she wants, without consulting me or anybody else.
As I recall, those Wellington shares gained 15% the first year before getting clobbered like everything else in 2008. By being patient while stocks rebounded, she's made out extremely well. The most recent example is a tour of Japan she's going on in April.
Your underlying purpose in buying Wellesley is quite a bit different, but I predict if you're patient like DW, you will also see your initial investment grow in ways your other conservative investments won't be able to keep pace with.
Of course you are much wealthier that my family. If you want to go to Japan, you would just go, and not bother looking at how your investments are doing. Still, it's not a bad idea to adjust your spending a little based on investment performance.
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03-05-2013, 05:13 PM
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#10
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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: 50,004
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Quote:
Originally Posted by bondi688
The idea is to buy high and sell at higher.
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Thanks. Good to know.
__________________
Numbers is hard
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03-05-2013, 05:22 PM
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#11
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Recycles dryer sheets
Join Date: Jan 2012
Posts: 141
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Hmmm....seems like a sure sell signal to me.
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03-05-2013, 05:25 PM
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#12
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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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Quote:
Originally Posted by Midpack
Jeeeeez, did the earth spin off it's axis?
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I felt the tremors all the way to the east coast.
Just kidding.
Where is Uncle Mick with his famous "pssst...." comment ?
__________________
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
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03-05-2013, 05:28 PM
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#13
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Dryer sheet aficionado
Join Date: Apr 2012
Location: Baltimore
Posts: 28
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I'm a relative neophyte to this board and even I know that this is a big move for a very conservative investor. Well done! Hope it works out very well for you. Great idea to start with small portion of the portfolio so you can test the waters. They seem very warm at this point
__________________
"Waiting for the time when I can finally say....this has all been wonderful, but now I'm on my way" - Trey Anastasio
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03-05-2013, 05:44 PM
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#14
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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My comment was more to reassure obgyn65, a very conservative investor, on taking a step from a path he is used to, than to address REWahoo, but thank you for taking time from being a judge on the American Idol to post your many comments.
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03-05-2013, 05:54 PM
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#15
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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: 21,204
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Quote:
Originally Posted by bondi688
My comment was more to reassure obgyn65, a very conservative investor, on taking a step from a path he is used to, than to address REWahoo, but thank you for taking time from being a judge on the American Idol to post your many comments.
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Sorry if I touched a nerve...deleted if it makes you feel better.
__________________
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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03-05-2013, 05:58 PM
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#16
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gone traveling
Join Date: Jun 2012
Location: Austin
Posts: 245
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Congratulations. I'm a big fan of both Wellington and Wellesley. In fact, when I pull the trigger my plan is to essentially have my <15 year needs in Wellesley and my >15 year needs in Wellington with not much else.
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03-05-2013, 06:12 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,525
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To be honest this is somewhat worrisome. When an extremely conservative investor (meant with all due respect - nothing wrong with Obgyn65 original approach to his retirement needs - he has the resources and LBYM approach to support it) decides to invest in a very conservative fund that has 35% allocated to stocks for the first time ever. .. This probably means that since 1/3 of my net worth is in Wellesley I need to start worrying about it...
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03-05-2013, 06:13 PM
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#18
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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Quote:
Originally Posted by Midpack
Sorry if I touched a nerve...deleted if it makes you feel better.
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No, it was quite alright. No offense really taken. I appreciate the gesture though.
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03-05-2013, 06:21 PM
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#19
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Recycles dryer sheets
Join Date: Sep 2012
Posts: 101
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Interesting decision. I decided today to put a bit more toward my annuities.
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03-05-2013, 06:26 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Jan 2005
Posts: 3,528
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I have read about Wellesley for many years and bought some within the last year for DH and I. Now obgyn has bought some also. I am starting to get nervous too.
Seriously, congrats obgyn. I have been happy so far with Wellesley and need to buy some more before April 15.
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