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Just bought $50,000 worth of Wellesley
Old 03-05-2013, 04:39 PM   #1
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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
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Old 03-05-2013, 04:42 PM   #2
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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.
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Old 03-05-2013, 04:48 PM   #3
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Originally Posted by REWahoo View Post
Interesting that you bought on the day the fund hit an all-time high.
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.
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Old 03-05-2013, 04:53 PM   #4
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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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Old 03-05-2013, 05:00 PM   #5
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I don't know. That is such a new, risky and untried fund.
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Old 03-05-2013, 05:02 PM   #6
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Originally Posted by obgyn65 View Post
If I lose money on this Wellesley Income Fund, I will send the bill to Midpack and ERD50
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.
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Old 03-05-2013, 05:04 PM   #7
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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:
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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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Old 03-05-2013, 05:06 PM   #8
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Interesting that you bought on the day the fund hit an all-time high.
The idea is to buy high and sell at higher.
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Old 03-05-2013, 05:07 PM   #9
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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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Old 03-05-2013, 05:13 PM   #10
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The idea is to buy high and sell at higher.
Thanks. Good to know.
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Old 03-05-2013, 05:22 PM   #11
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Hmmm....seems like a sure sell signal to me.
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Old 03-05-2013, 05:25 PM   #12
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Jeeeeez, did the earth spin off it's axis?
I felt the tremors all the way to the east coast.

Just kidding.

Where is Uncle Mick with his famous "pssst...." comment ?
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Old 03-05-2013, 05:28 PM   #13
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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
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Old 03-05-2013, 05:44 PM   #14
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Yeah, a member with more than 28,000 posts probably didn't know that...
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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Old 03-05-2013, 05:54 PM   #15
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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.
Sorry if I touched a nerve...deleted if it makes you feel better.
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Old 03-05-2013, 05:58 PM   #16
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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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Old 03-05-2013, 06:12 PM   #17
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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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Old 03-05-2013, 06:13 PM   #18
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Sorry if I touched a nerve...deleted if it makes you feel better.
No, it was quite alright. No offense really taken. I appreciate the gesture though.
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Old 03-05-2013, 06:21 PM   #19
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Interesting decision. I decided today to put a bit more toward my annuities.
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Old 03-05-2013, 06:26 PM   #20
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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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