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Why haven't I ever heard Psst...Wellington?
Old 11-29-2012, 01:55 PM   #1
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Why haven't I ever heard Psst...Wellington?

Yes I realize they're different AA's and I'm not suggesting one is preferable over the other. But they appear to have similar investment philosophies, so I'm surprised I've never heard Pssst...Wellington. Surely some here have target AA's closer to Wellington than Wellesley, and less interest in dividend/income?
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Old 11-29-2012, 02:15 PM   #2
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My IRA is fully invested in Pssst...Wellington and has been for years. Wellesley seems to be more popular with retirees (higher income, more conservative allocation, less volatility) which may be why it is talked about so much around here.
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Old 11-29-2012, 02:20 PM   #3
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Psst on you...

One of us has 75% of my their portfolio invested in a mix of Wellesley and Wellington.
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Old 11-29-2012, 02:20 PM   #4
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My HSA is fully invested in Pssst...Wellington.
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Old 11-29-2012, 03:03 PM   #5
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Quote:
Originally Posted by REWahoo
Psst on you...

One of us has 75% of my their portfolio invested in a mix of Wellesley and Wellington.
When we take SS in a couple of years we plan to put our remaining cash into Wellington to increase our equity level a bit. We had a big chunk of our pre-ER 401k in it but moved it all to money market when we rolled it over to an IRA while we figured out our retirement AA. Still trying to figure it out .
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Old 11-29-2012, 03:12 PM   #6
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Could it have anything to do with, as the graph shows, total return?
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Old 11-29-2012, 03:24 PM   #7
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I've had psst Wellington a long time before I added psst Wellesley !
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Old 11-29-2012, 03:25 PM   #8
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Could it have anything to do with, as the graph shows, total return?
Good catch.

Edit: I removed the graph since while true, it was not representative of the expected long term relative returns.
Translation: My bad...
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Old 11-29-2012, 03:28 PM   #9
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Good catch.

Edit: I removed the graph since while true, it was not representative of the expected long term relative returns.
Translation: My bad...
I think it would be interesting to show the same graph and include the S&P 500 for comparison.
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Old 11-29-2012, 03:35 PM   #10
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Wellesley is my most aggressive investment. Wellington is quite a bit more volatile. Even Wellesley's ~33% equity allocation is a little high for my tastes but it's worked out well so far.
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Old 11-29-2012, 03:48 PM   #11
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Originally Posted by REWahoo View Post
I think it would be interesting to show the same graph and include the S&P 500 for comparison.
Here's a performance chart you can play with - looks like it goes back ~ 12 years.

PerfCharts - StockCharts.com - Free Charts

-ERD50
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Old 11-29-2012, 03:52 PM   #12
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I'll hazard a guess and say that it might be because many people ask how they can generate the "magical" 4% return for ER and Wellesley fits that particular requirement better than Wellington.
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Old 11-29-2012, 04:37 PM   #13
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I think it would be interesting to show the same graph and include the S&P 500 for comparison.
How's this? Value of $10k over 10 years in Wellington, SPX 500 index fund and Welesley - all Admiral shares.

It is interesting to me that wellington and SPX were hovering on top of each other for about 5 years until the stuff hit the fan and the pattern since Oct 08 is very similar.
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Old 11-29-2012, 04:40 PM   #14
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How's this? Value of $10k over 10 years in Wellington, SPX 500 index fund and Welesley - all Admiral shares.
+1

Now, please post a chart showing 2013 through 2022.
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Old 11-29-2012, 05:55 PM   #15
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Quote:
Originally Posted by REWahoo View Post
+1

Now, please post a chart showing 2013 through 2022.
Yes, i would like that chart also.

thanks

bob
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Old 11-29-2012, 05:55 PM   #16
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the big test for wellesly will be when rates rise. being chock full of bonds wellesly had the wind at its back and a 30 year bull market in bonds to keep it humming.

those same bonds may be a big weight in the near future.
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Old 11-29-2012, 06:47 PM   #17
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Quote:
Originally Posted by REWahoo View Post
+1

Now, please post a chart showing 2013 through 2022.
Here you go, you know how read it I assume...
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Old 11-29-2012, 06:56 PM   #18
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those same bonds may be a big weight in the near future.
The operative terms being 'may' and 'near' future.

Average duration of Wellesley bonds is 6.2 years. If they take a hit due to increasing rates in I think I can hold on until the fund recovers.
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Old 11-29-2012, 07:16 PM   #19
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Quote:
Originally Posted by REWahoo View Post
+1

Now, please post a chart showing 2013 through 2022.
Not a problem. I'll be happy to post that for you on 1/1/2023 (If I'm still around to do so...)
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Old 11-29-2012, 08:17 PM   #20
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I remember the first time I checked into Wellington, looked back at it's history since inception. That's a long track record of solid performance.

Then I checked out Wellesley. I've pretty much decided our simple investmant plan would be the majority of our after-tax investment portfolio in Wellington and the IRA's in Wellesley.

Plan is to initially draw down on the Wellington over the first 14-16 years of FIRE, allowing the Wellesley to continue to grow before switching over to distributions from it year 15-17 until the end.
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