Just bought $50,000 worth of Wellesley

[MichaelB]

Oby, now you're going to learn what "stay the course" really means.

Accidental Retiree, perhaps you should think about charging, or perhaps a newsletter. You certainly seem to have the Carnegie touch.

 

[Stanley]

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).

Who are you? And what did you do with OBGYN65?

 

[Stanley]

The idea is to buy high and sell at higher.

I agree with this policy. In order to implement it I only buy stocks that go up. If they don't go up, I don't buy them.

 

[explanade]

How many of you have it as your biggest mutual fund holding?

I started out with Wellsley, after reading these boards. But went to more equities heavy funds to raise my overall AA in equities.

 

[Accidental Retiree]

I felt the tremors all the way to the east coast.


?

That was my jaw hitting the floor.

 

[freebird5825]

How many of you have it as your biggest mutual fund holding?

I started out with Wellsley, after reading these boards. But went to more equities heavy funds to raise my overall AA in equities.

2nd place in my array of mutual funds, at 10.2% of my conservatively allocated portfolio (AA=36/64).

 

[Sarah in SC]

This is as close as we will see to a Wheeeeee posting from W2R today.

Congrats on stepping into the market and a nice comparatively stable fund choice.

 

[bondi688]

I agree with this policy. In order to implement it I only buy stocks that go up. If they don't go up, I don't buy them.

The intent of my post was to reassure obgyn65 that he should not be overly worried about the possibility of buying at a high point. Investing often requires hope, blind faith, wings and prayers. In your case, you can stay with flying a kite.

 

[Helen]

This is as close as we will see to a Wheeeeee posting from W2R today.

That's what I was just going to post! I bought about $150k of Wellsley last week

 

[ERD50]

Interesting that you bought on the day the fund hit an all-time high.

Funny how that works, ain't it?

You will do fine as long as you don't get nervous in a downturn and sell.

He wouldn't be the first. It seems to happen more often with those who buy at an all-time high. That part's not so funny.

If I lose money on this Wellesley Income Fund, I will send the bill to Midpack and ERD50

Take care everyone

Ob

OK, so I know you are just kidding, but I should point out (seriously now) that I never recommended that you buy equities. My posts were directed at your claims that 100% fixed investments were a 'low risk' path for a retirement portfolio. I'll repeat here for clarity, but runs in FIRECALC show that, all else with defaults, that portfolios with less than ~ 40% EQ have more and more failures as you lower the EQ%. Much higher failure rates than 100% EQ. Fixed income can provide lower volatility, but not a higher success rate for a retiree.

Since then, you clarified that you will have a (relatively) large portfolio, and (relatively) small income needs. IIRC, you are at a point where it really makes no difference if you are at 0% EQ or 100% EQ. It's moot.

However, looking at the big picture (and for the benefit of others, trying to learn from this forum), what are your plans? Do you have a new target AA? Generally, people will dollar cost average into a new position, especially at a market peak.

-ERD50

 

[Live And Learn]

Welcome to the dark side ObGyn65 !

 

[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.

For me, my wealth has been created by staying the course and investing as much as possible on a monthly basis. For example: In my main taxable fund account my asset value tripled in the period 2007 to 2013. Additions in the down market really paid off.

Some equity exposure is a must for me. Everyone has their own risk tolerance. I'm my opinion being in one asset class....cash/short term is by definition not diversified.

 

[marc515]

obgyn65,......Congratulations on your investment.

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. Wellesley and Wellington are both great funds with a proven track record.

Now you should consider continued periodic investments into Wellesley.

Best of luck.

 

[jimnjana]

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).




Ob

Might be time to sell my stock positions and go to cash...

 

[eytonxav]

I see an emerging markets fund in your future, but congrats on Wellesley, its one of my favs.

 

[Midpack]

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...

 

[travelover]

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.

 

[HFWR]

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!

 

[Accidental Retiree]

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.

 

[Midpack]

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...

 

[ERD50]

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!".

-ERD50

 

[SJ1_]

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!

 

[Tyro]

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.

Tyro

 

[Stanley]

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.

 

[pb4uski]

.....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.