Welllington/Wellesley

[ferco]

Does anyone know the Wellington and Wellesley equivalents at Fidelity and TRowe Price ?
The other part of my question is, presuming a 6-7 % annual return with both Wellington and Wellesley since their inception, and given a SWR of 4%, is one not "fairly safe" in utilizing these 2 funds for their lifetime withdrawl portfolios ( I recognize past performance is no guarantee of the future)?

[clifp]

Wellington in particular is an ancient fund 1929, and Wellesley starting in 1970 is no spring chicken. So I think it is almost impossible for either Fidelity or T Rowe to have their longevity.

Quote:

The other part of my question is, presuming a 6-7 % annual return with both Wellington and Wellesley since their inception, and given a SWR of 4%, is one not "fairly safe" in utilizing these 2 funds for their lifetime withdrawl portfolios ( I recognize past performance is no guarantee of the future)?

I believe in more diversification than W&W provides that said, if you stuck a gun to my head and said give me two funds to put my retirement money in. I'd be hard pressed to come up with a better AA than 50% in W&W. I think I'd actually prefer it the two W than simply using Vanguard Total Stock Market or Total Bond Market.

[teejayevans]

Quote:

Originally Posted by ferco Does anyone know the Wellington and Wellesley equivalents at Fidelity and TRowe Price ? The other part of my question is, presuming a 6-7 % annual return with both Wellington and Wellesley since their inception, and given a SWR of 4%, is one not "fairly safe" in utilizing these 2 funds for their lifetime withdrawl portfolios ( I recognize past performance is no guarantee of the future)?

Don't forget the 4% is adjusted for inflation, add 3% inflation and you get your 7%. Be interesting to run firecalc against the W/W fund alone, since they are a balance fund with 60/40 splits.
TJ

[WilliamG]

Quote:

Originally Posted by clifp I believe in more diversification than W&W provides that said, if you stuck a gun to my head and said give me two funds to put my retirement money in. I'd be hard pressed to come up with a better AA than 50% in W&W. I think I'd actually prefer it the two W than simply using Vanguard Total Stock Market or Total Bond Market.

We've danced around this allocation since retiring in 2000. Currently very happy with 50/50 overall allocation with 50% being 50/50 in W/W and the other 50% split between Vanguard Total stock indices and short term bonds.

[Midpack]

Quote:

Originally Posted by ferco Does anyone know the Wellington and Wellesley equivalents at Fidelity and TRowe Price ? The other part of my question is, presuming a 6-7 % annual return with both Wellington and Wellesley since their inception, and given a SWR of 4%, is one not "fairly safe" in utilizing these 2 funds for their lifetime withdrawl portfolios ( I recognize past performance is no guarantee of the future)?

I'd hesitate to call any of them equivalents because they all have (slightly) different fund management criteria, but just look at Fidelity and T Rowe Price's "balanced", "asset", "target retirement" type funds and you'll find plenty targeting 65/35 (Wellington) or 35/65 (Wellesley) asset allocations. Their performance, returns and volatility, should be somewhat if not very similar.

Fidelity Investments: Research - Mutual Funds

T Rowe Price Our Mutual Fund Family

[Lsbcal]

Quote:

Originally Posted by ferco ... The other part of my question is, presuming a 6-7 % annual return with both Wellington and Wellesley since their inception, and given a SWR of 4%, is one not "fairly safe" in utilizing these 2 funds for their lifetime withdrawl portfolios ( I recognize past performance is no guarantee of the future)?

That 6-7% was built up over a long period of varying bonds rates, but the rate average is much higher then today's rates. So do not expect that over the next few years, especially from Wellesley (about 65% bonds, 35% stocks). This is not so much a past performance issue as a current yield issue.

I'd think using these funds together with maybe an appropriately dated Target Retirement fund would be a decent idea. Since they are active funds, that's why I'd blend with an index derived fund. Just figure your AA and blend accordingly.

[l2ridehd]

I utilize both funds for a significant portion (almost 50%) of my retirement funds. I like the ease of AA re balancing. Wellington is 65/35 and Wellesley is 35/65. So as I get older I move more from Wellington to Wellesley to increase my bond percentage. Will eventually be 100% in Wellesley for that portion of retirement funds. I also use total stock, total bond, and follow the 6 fund slice and dice on lazy traders.com.

[Animorph]

For Wellesley try FASIX or PRSIX. Also PRPSX or BRUFX if available.
For Wellington try FBALX or PRWCX. Also OAKBX, ITCSX, FPACX, or MAPOX if available.

These are from a M* screen, same categories as Wellesley and Wellington and similar performance. Some are Gold rated by M* as well. I hold OAKBX in my portfolio, but none of the others.