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Vanguard Fund Recommendation
Old 08-18-2006, 10:01 AM   #1
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Vanguard Fund Recommendation

I finally took the plunge last month and opened a Vanguard account. I selected Wellseley based on the good things I've read in this forum. I'm more than happy with my decision.

I would like to open another fund at Vanguard. I'm pretty conservative with my investments and would prefer something stable with a good yield versus high volatility with a high yield. I'm not really looking for income at this stage more growth. Sorry, if I'm vague.

Thanks in advance for fund suggestions.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 10:27 AM   #2
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Re: Vanguard Fund Recommendation

"stable" and "growth" don't normally go hand in hand, but I'll give it a go......

Not sure if it fits what you're looking for, but I've always been happy with Windsor II. http://flagship4.vanguard.com/VGApp/...FundIntExt=INT

Another fund which is quite stable is Star fund. We opened this fund for our daughter as a highschool graduation present.
http://flagship4.vanguard.com/VGApp/...FundIntExt=INT

Hope this helps.....
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 10:35 AM   #3
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Re: Vanguard Fund Recommendation

The target retirement funds are a good way to go - you can go 2015 and be about 60/40 stocks/bonds or 2025 and be 75/25 or go out further for more stocks or go with 2010 for more bonds.
This is an easy way to be pretty diversified.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 10:53 AM   #4
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Re: Vanguard Fund Recommendation

Hmmm

Here's the deal - in my mind - go for MPT/index funds or try to capture the Fama and French 'value premium' ala Wellesley/Wellington.

So - who are you? - and what's da plan? If I were planning to live long and prosper I would lean toward the Target Retirement Series. Or - if spend more now and throttle back later I would lean more toward higher current yield ala Wellington/Wellesley combinations.

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Re: Vanguard Fund Recommendation
Old 08-18-2006, 10:55 AM   #5
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Re: Vanguard Fund Recommendation

Quote:
Originally Posted by Donzo
The target retirement funds are a good way to go - you can go 2015 and be about 60/40 stocks/bonds or 2025 and be 75/25 or go out further for more stocks or go with 2010 for more bonds.
This is an easy way to be pretty diversified.
Diversified, yes! Set up to underperform? yes................
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 11:08 AM   #6
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Re: Vanguard Fund Recommendation

I am too consider myself as a conservative investor but what am I missing? these typical Funds yield only 2-3% comparing to today's MM at 4-5%.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 11:14 AM   #7
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Re: Vanguard Fund Recommendation

Try Wellignton - a flip side of Wellesly.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 11:22 AM   #8
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Re: Vanguard Fund Recommendation

Quote:
Originally Posted by Mach1
I am too consider myself as a conservative investor but what am I missing? these typical Funds yield only 2-3% comparing to today's MM at 4-5%.
Cash *is not a bad place to be these days. However, you may also be interested a bond fund for the higher yields.
http://flagship4.vanguard.com/VGApp/...FundIntExt=INT

http://flagship4.vanguard.com/VGApp/...FundIntExt=INT
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 11:25 AM   #9
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Re: Vanguard Fund Recommendation

We recently moved my wife's 403b fund to VG and chose Wellesley. When that funds gets large enough we expect to add the Star fund. A natural combo with Wellsley is the Star or Wellington although there are other candidates if you want to focus more on value, foreign or some part of the market.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 11:28 AM   #10
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Re: Vanguard Fund Recommendation

Quote:
Originally Posted by Poundkey
Cash *is not a bad place to be these days. However, you may also be interested a bond fund for the higher yields.
http://flagship4.vanguard.com/VGApp/...FundIntExt=INT

http://flagship4.vanguard.com/VGApp/...FundIntExt=INT

I agree and it would even be better if the bond is tax free right?
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 01:05 PM   #11
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Re: Vanguard Fund Recommendation

How about an international value fund: VTRIX?


I also some confusion betwen "yield" and "total return" in this thread.

Full disclosure: we own a number of Vanguard funds, including VTRIX.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 02:19 PM   #12
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Re: Vanguard Fund Recommendation

Quote:
Originally Posted by LOL!
I also some confusion betwen "yield" and "total return" in this thread.
My understanding is:

Yield = Current return
Total Return = Over the life of the Security/Investment
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 02:44 PM   #13
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Re: Vanguard Fund Recommendation

Hey Cube,

Quote:
I'm not really looking for income at this stage more growth
It is damn difficult to recommend a specific fund to someone that has not revealed their asset allocation, taxable or tax deferred, time horizon, risk tolerance etc. however since you asked, I believe that the Total Stock Market fund (Admiral level) is not only the best Vanguard fund but the best equity mutual fund that one can own in the long term.

Though Wellesley is a nice fund that has a 35+ year history, with about 60% in bonds it may not be the best vehicle for a taxable account. Also it's ER is about 50% more than of the TSM, if costs are important to you.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 03:02 PM   #14
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Re: Vanguard Fund Recommendation

Quote:
Originally Posted by mickeyd
Hey Cube,

It is damn difficult to recommend a specific fund to someone that has not revealed their asset allocation, taxable or tax deferred, time horizon, risk tolerance etc. however since you asked, I believe that the Total Stock Market fund (Admiral level) is not only the best Vanguard fund but the best equity mutual fund that one can own in the long term.

Sorry, mickeyd and all for being so vague with my current situation. I'm a newbie when it comes to this stuff. I'll try and be more specifc next time when asking for suggestions.

Thanks to everyone for great recommendations so far

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Re: Vanguard Fund Recommendation
Old 08-18-2006, 03:40 PM   #15
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Re: Vanguard Fund Recommendation

Vanguard Equity Income has essentially the same stocks as Wellesly but not the bonds. I'm not a fan of bond funds for several reasons but the one I don't think I'll get any flack about is that you can get a higher return buying individual CDs and bonds. You avoid the commission costs of the fund buying, management fees and selling bonds and the principal risk.

I also like the Total Market Index as a conservative stock fund. It doesn't get the dividends like Equity Income but it covers the US market.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 06:46 PM   #16
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Re: Vanguard Fund Recommendation

I like WELLINGTON !
and agree with Cute&Fuzzy about Equity Income.
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Re: Vanguard Fund Recommendation
Old 08-18-2006, 07:06 PM   #17
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Re: Vanguard Fund Recommendation

One of the problems with Wellington is thqt it is limited to $25,000 for new investors. Othe than that, it is a good choice. In my IRA I have recently combined a small percentage of Wellesley with the bulk going into 2015. The guy I talked to on the phone said I was duplicating, but so far I am very satisfied. Now if I can just quit looking every day, I'll be even better.

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Re: Vanguard Fund Recommendation
Old 08-18-2006, 07:25 PM   #18
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Re: Vanguard Fund Recommendation

A lot of people advocate Wellesley as good fund for ER because it spits out 4-4.5% dividends which basically covers the standard advice for SWR. On the other hand its historical total return is in the mid 6% range which means it probably will not keep you ahead of inflation, so maybe it is not a suitable in the long run for those who take the leap over to ER. Open for debate like a lot of advice out there.
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Re: Vanguard Fund Recommendation
Old 08-20-2006, 09:10 PM   #19
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Re: Vanguard Fund Recommendation

Quote:
Originally Posted by Hydroman
A lot of people advocate Wellesley as good fund for ER because it spits out 4-4.5% dividends which basically covers the standard advice for SWR. On the other hand its historical total return is in the mid 6% range which means it probably will not keep you ahead of inflation, so maybe it is not a suitable in the long run for those who take the leap over to ER. Open for debate like a lot of advice out there.
Wellesley's return since inception is 10.67%. Maybe you were looking at the 5 year number (6.15)?

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Re: Vanguard Fund Recommendation
Old 08-20-2006, 10:05 PM   #20
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Re: Vanguard Fund Recommendation

Yes. I was looking at the 5 year number. The 10 year number is 8.67, which is less then its historical since inception. I think the high return since inception might be a benefit of the stron bond market in the 70s early 80s.

So do you think Wellesley would be a good place to invest ones funds aftrer ER if one were looking to keep it simple rather then play the slice and dice and rebalence game? Do you think it would support a 4-4.5% SWR and keep up with inflation?
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