Just bought $50,000 worth of Wellesley

[REWahoo]

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.

 

[Alan]

a bit late to the thread, but congratulations Obygyn

By chance, were you pssst when you made the decision?

 

[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.

 

[pb4uski]

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.

 

[HFWR]

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

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...

 

[Midpack]

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.

 

[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 .

 

[obgyn65]

No

By chance, were you pssst when you made the decision?

 

[freebird5825]

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...

 

[Accidental Retiree]

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'.

 

[bondi688]

LV is now taking bets on the date obgyn65 starts high frequency forex trading.

 

[clifp]

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'.

Don't worry that was the craziest trade I could think of. VIX is a prediction of future market volatility. Essentially, it would be betting on will the market swing radically up and down in the future.

However the actual explanation probably needs at least 1/2 page and there is no chance I could explain it right . Actually it hurts my brain just trying to figure it out!

 

[Dreamer]

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'.

+1

 

[ERD50]

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'.

Don't worry that was the craziest trade I could think of. VIX is a prediction of future market volatility. Essentially, it would be betting on will the market swing radically up and down in the future.

However the actual explanation probably needs at least 1/2 page and there is no chance I could explain it right . Actually it hurts my brain just trying to figure it out!

I may trade an Iron Condor this week, just to have something to talk about and sound important Rolling the option up and out, hedging with a Delta-Neutral position, covering the long leg with a Diagonal Spread, delving into a dispersion trade, throw in all those greek terms, delta, gamma, theta, and vega, - who wouldn't be impressed? Actually, those are a bunch of random option terms thrown together, they make no sense (unless it was pure chance). Ahhh, if I tried to pull it off, someone would say "Iron Butterfly! Dude, I love "In-a-gadda-da-vidda" - the long version! Used to listen to that on 8-track in my Vega!".

Actually, I did read most of MacMillan's book on Options shortly after I retired (1001 pages!). Amazon.com: Options as a Strategic Investment (9780735201972): Lawrence G. McMillan: Books

But 2/3rds way through, I realized all these different options were just mixes and matches that put you on a different part of the curve, set the slope, and/or limited the upside/downside risk. To an electronics guy, it was like adjusting the gain, bias, and the positive and negative rails of an op-amp to match your signal conditions and desired output. Or like that long thread a few years back on 'insane retirement strategies', you can place a bunch of different types of bets on roulette, but in the long run, the payouts are all basically the same.

-ERD50

 

[powerplay]

Welcome to the Wellesley club obgyn65! I have been pleased with my investment in that fund and hope you will be happy with your decision and profit from it also.

 

[SumDay]

Boom sauce for ObGyn (my kids say boom sauce all the time, and I've always wanted to use it)!

After my newly found, fee-only financial advisor told me we had too much cash, and strongly suggested Vanguard Wellington and Wellesley (and I'd seen much about both funds on this board), I too put $50K in each in early January. I was concerned because it seemed like it was pretty high, but I did it anyway. Just checked and I'm up about $3200 in just 2 months. I know, I know, it could all go away today or tomorrow, but usually if I buy something it tanks immediately and never comes back.

My 401(k) also has Wellington as a fund option, so 100% of my contributions and my employer contributions go in there now too.

Welcome to the club ObGyn!

 

[Sue J]

Like obgyn65 I've been a hesitant investor. It's always been CDs and "high(er)" rate savings accounts. My scale is much smaller than his. So far my brave jump into the markets has been Vanguard's STAR fund for a Roth IRA contribution a few years ago. Small potatoes to many of you here, but it was a big step for me.

Right after I bought STAR it dropped but it's all back and 25% above my starting point after 3 years.

I haven't filed our taxes yet because I still want to make a Roth contribution for 2012. Wellesley is one I'm considering along with Total Stock Market Index Fund and Total International Stock Index Fund.

I keep hearing a chant in my head.....Past performance is not an indicator of future results.....

 

[Accidental Retiree]

DH rolled some of his CD IRA funds from a credit union over to Wellesley back in January, and when the next CD matures, that's one's rolling over, too. We will keep going until we get the total portfolio AA where we want it.

"When you know better, you do better."

 

[veremchuka]

....

I haven't filed our taxes yet because I still want to make a Roth contribution for 2012. Wellesley is one I'm considering along with Total Stock Market Index Fund and Total International Stock Index Fund.

.....

I'm VERY certain that you can't make contributions to a Roth IRA for the year after 12/31 for that year unlike a "regular" IRA that allows it up to the tax deadline date of the following year. If I'm wrong someone will comment but I am quite sure of that.

 

[T-bird]

I'm VERY certain that you can't make contributions to a Roth IRA for the year after 12/31 for that year unlike a "regular" IRA that allows it up to the tax deadline date of the following year. If I'm wrong someone will comment but I am quite sure of that.

Just checked you have until April 15 for your 2012 return.

T-bird

 

[Ronstar]

Good for you, Obgyn65!

Stick with it in good times and bad times and everything should turn out ok. From what I've read here of your investing style, Wellesley should provide a good balance for you.

 

[REWahoo]

I wonder how Oby feels after seeing his $50,000 Wellesley investment decline by more than $100 since he bought?

 

[LakeTravis]

I was going to make the same observation - just checked and Wellesley is the only holding in my portfolio that has gone DOWN every day since he bought in.

Hmmmmmmm...........................

 

[Accidental Retiree]

Hey, time to buy on the dip!

 

[obgyn65]

I am not even thinking about checking. Too much going on. This will be my only post today, sorry, posting this very early at night, going back to work at 6am. Exhausted.

I wonder how Oby feels after seeing his $50,000 Wellesley investment decline by more than $100 since he bought?