Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
new strategy
Old 12-11-2012, 11:24 AM   #1
Full time employment: Posting here.
 
Join Date: Jan 2010
Location: dubuque
Posts: 618
new strategy

I have recently gotten quite a bit of money when a cd expired. I need the income for reitrement. I am looking at franklin income fund and vanguard wellesley fund. are there any other options for fairly secure funds with any kind of return? let me know what you think and if one of these funds is superior to the other. thanks

frank
__________________

__________________
frank is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-11-2012, 12:25 PM   #2
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 125
If you are looking at FKINX, the ER is .64. VWINX has an ER of .25 and their admiral shares (VWIAX) have an even lower ER of .18.

So on costs, Wellesley is way ahead. For performance comparison, you can use Morningstar's chart. It appears that the Franklin fund outperforms Wellesly, but the bonds are of the lower quality - so you are taking more risk in exchange for higher yield.

You'd have to decide whether the risk is worth it to you.

Disclosure: we used to have the Franklin funds. I was uncomfortable with the risk and moved to Wellesley.
__________________

__________________
dmdunca44 is offline   Reply With Quote
Old 12-11-2012, 12:26 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Apr 2011
Posts: 1,567
What does fairly secure mean? What does need the income mean? What's quite a bit?

Net, seems to me you first need a financial plan for the future including all your assets & needs before making any decision other than parking this money in a bank account temporarily.
__________________
gerntz is offline   Reply With Quote
Old 12-11-2012, 02:31 PM   #4
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 882
yield chasing often ends badly. Wellesley is a fine fund but it is over one-third stocks and the bond component has an average duration of about 6 so they will lose value if interest rates rise.
__________________
jebmke is offline   Reply With Quote
Old 12-11-2012, 02:40 PM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,149
How sad that returns have dropped so low someone would view investing in Wellesley "yield chasing"...
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 12-11-2012, 03:59 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 1,437
Quote:
Originally Posted by REWahoo View Post
How sad that returns have dropped so low someone would view investing in Wellesley "yield chasing"...
It's pretty scary, my 83 yo mother told me she is buying Wellesley as her CD's mature. Completely risk adverse when she was 65 now she's taking the plunge. I'm 57 and looking to go the other way. I guess she could do worse.
__________________

__________________
Retired in 2016. Living off dividends / interest and a mini pension. Freedom.
foxfirev5 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 03:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.