Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
DODIX vs. VWINX
Old 04-14-2008, 12:11 PM   #1
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,053
DODIX vs. VWINX

I need some help figuring this out. I have about $100,000 of DODIX (Dodge and Cox Income Fund) in an IRA. The expense ratio is .44.

I am thinking of selling the DODIX and replacing it with VWINX (Vanguard Wellesley) (that should make unclemick happy). The expense ratio is .25. Anyhow, the fee of selling the DODIX is $50 and the buying of VWINX is $50.

Does it make finanicial sense to make these trades? I plan on not touching this money for approximately a bunch of years (4-10 years)?

I also understand that these two funds are not quite comparable, but I think they are close enough in what they do.

Thanks...
__________________

__________________
redduck 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 04-14-2008, 12:18 PM   #2
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: 42,080
They are both low cost funds with a very good long term track record. If you understand that DODIX is a bond fund and Wellesley is a balanced fund (~35% stocks, 65% bonds) and that change meets your asset allocation requirements, looks like a sound move to me.
__________________

__________________
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 04-14-2008, 12:20 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Well, .0044 - .0025 = .0019
.0019 x $100000 = $190 dollars per year in saved expenses

So, you'd have your trading costs recovered in reduced fees in just over 6 months.

No tax implications (since you are in an IRA).

Is that what you are wanting to know?
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 04-14-2008, 03:21 PM   #4
Thinks s/he gets paid by the post
FIRE'd@51's Avatar
 
Join Date: Aug 2006
Posts: 2,308
Since you are talking about 100K, you can buy the Admiral share class of Wellesley, which have an ER of 0.15% instead of 0.25%.

Wellesley Admiral shares - VWIAX
__________________
FIRE'd@51 is offline   Reply With Quote
Old 04-14-2008, 05:20 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,408
Quote:
Originally Posted by REWahoo View Post
They are both low cost funds with a very good long term track record. If you understand that DODIX is a bond fund and Wellesley is a balanced fund (~35% stocks, 65% bonds) and that change meets your asset allocation requirements, looks like a sound move to me.
Yep.

heh heh heh - and then you too can say Pssst Wellesley every once in a while when you post. .
__________________
unclemick is offline   Reply With Quote
Old 04-15-2008, 09:31 AM   #6
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,850
I don't have anything intelligent to add about Dodge & Cox that hasn't been said, but in February I bought into Wellesley Admiral (VWIAX) and I am totally ecstatic about it. I love the low volatility in these tough times, and we got a nice dividend in March.

One of Wellesley's co-managers is retiring https://personal.vanguard.com/us/Van...142008_ALL.jsp
but there are several other co-managers so there should be continuity.

Besides, like UncleMick I can now say, "Psst!! Wellesley!"
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 04-15-2008, 09:51 AM   #7
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,053
Thanks for the help/advice/input. I'm making the switch-over this AM. The asset allocation doesn't change my portfolio very much (as far as I can tell). And, it doesn't seem like a costly move to make (thanks, samclem, for the math input).

I called Vanguard regarding the Admiral shares, but I can't get this fund because the fund is being placed in Schwab. I'd have to keep it in the Vanguard group to get the better (lesser) fees. Good thought, though.

The only reason I hestitated buying this puppy is that I'd obligated to say, "Pssst!! Wellesley!" Want2retire puts in two "ss" in "Pssst" while the master, unclemick seems to use three "s's." Gotta' go with the master, here.
I was hoping to sidestep the whole issue of ever having to say "Pssst Wellesely," but the peer pressure got to me and I've obviously caved.
__________________
redduck is offline   Reply With Quote
Old 04-15-2008, 10:03 AM   #8
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,053
The order is in.

Pssst Wellesely (can I still be in the club even though it's the Investor Share branch)?
__________________
redduck is offline   Reply With Quote
Old 04-15-2008, 10:06 AM   #9
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: 42,080
Some of us own Wellesley and have had our "Pssst!!" device modified so that we no longer have the urge to post it. Really nice to avoid having to "Pssst!!" in public...
__________________
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 04-15-2008, 10:06 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Quote:
Originally Posted by redduck View Post
I called Vanguard regarding the Admiral shares, but I can't get this fund because the fund is being placed in Schwab. I'd have to keep it in the Vanguard group to get the better (lesser) fees. Good thought, though.
So, why not open up a Vanguard IRA? It only takes a few minutes, you'd save the $50 buy-in fee for the purchase of the fund immediately, and you'd save $100 every year by getting access to the lower ER in Admiral class. $100 bucks ain't much, but it's a lot of beer and pizza, and the only increased complexity is an additional statement per cycle from another company. Heck, if your slow slide toward lower-cost investing continues, you'll want to move everything there eventually, anyway.

Psst . . .oh, never mind.
__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem is offline   Reply With Quote
Old 04-15-2008, 12:48 PM   #11
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,850
I think redduck is taking to this like a duck to water. He/she can even "Pssst! Wellesley!" properly already! As for me, I'm still learning.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 04-15-2008, 09:11 PM   #12
Thinks s/he gets paid by the post
redduck's Avatar
 
Join Date: Mar 2005
Location: yonder
Posts: 2,053
I don't actually have an IRA, I have a Keogh and a Keogh is kind of a nuisance. Vanguard won't deal with it. Fidelity almost will, but only if I change it into something else (which still wouldn't be an IRA). I received the paperwork from Fidelity and decided to pass. Once I retire, it can more easily go to Vanguard. I already have an active Vanguard account as does my wife (hint, hint, Want2Retire). And, the wife also has her retirement account there as well. It's just that I can't get there from here.
__________________
redduck is offline   Reply With Quote
Old 04-15-2008, 10:20 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2004
Posts: 11,615
Okay, I understand the situation now. I had the same issue with my solo401k--Vanguard doesn't do them, so I had to open an account with Fidelity.
__________________

__________________
"Freedom begins when you tell Mrs. Grundy to go fly a kite." - R. Heinlein
samclem 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 01:08 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.