Just bought $50,000 worth of Wellesley

[bondi688]

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

[clifp]

Quote:

Originally Posted by Accidental Retiree 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]

Quote:

Originally Posted by Accidental Retiree 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]

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 .

Quote:

Originally Posted by Accidental Retiree 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'.

Quote:

Originally Posted by clifp 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]

Quote:

Originally Posted by Sue J .... 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]

Quote:

Originally Posted by veremchuka 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.

Quote:

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

[LitGal]

For a beginner like me, Dan Wiener's "Independent Adviser" newletters have been a great education. A "take away" from one of his articles last summer was that, in essence, putting 50% in Wellington and the other 50% in Wellesley Income can create a nicely balanced portfolio for neophytes.

So I started with 15% of each (in my rollover IRA) last Sept. and, given the market since then, have been delighted. Like to see the market gains and the quarterly dividends. So far Wiener seems right (but don't quote me, of course....am learning more details as I go).

Over the past month, have locked in the gains from years in STAR Cons. and Mod. Growth by selling them high. Hope to use the cash to buy more Well. and Well. if/when the prices drop a bit. (Price last Sept. was much more appealing.)

Yeah, I know this might look like market timing efforts, but my husband and I have "bought and held" over 20 years. Because he is now disabled (and lacks the energy for this), I'm trying to keep us in some healthy AA despite our now reduced tolerance for risk.

So, OBGyn, I hope your new investing adventure goes well. Yes, staying the course during any downturns does indeed pay off later.

[frank]

does wellesley have a set monthly dividend it pays? don't know about funds, so just asking. I am one of those contemplating wellesley and still in cd and cash.

[LitGal]

Hi, Frank. Both of the "Wells." pay quarterly. For more info.--great web research--you might find the Vanguard site useful: www.vanguard.com. When you go into it, you can type in any of their funds. They then pull up for you far more info. than I have used yet. But they also give you all the basics: share price, history, when it pays, etc. I have found the site more helpful than potential FA's we were thinking about hiring. Plus, it educates me, so I feel like I have more control over our money's fate.

I hope this helps. Good Luck!

[pb4uski]

Quote:

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

$100 is pocket change to obgyn65.

[REWahoo]

Quote:

Originally Posted by pb4uski $100 is pocket change to obgyn65.

True, but to someone in their 40's who has never seen even a one cent decline in any of their investments, it could be a very big deal. And at some point the loss will almost certainly get much worse...