Vanguard Wellesley Income Inv VWINX and forget about it?

[almost there]

Many folks here just get into Vanguard Wellesley Income Inv VWINX and more or less just forget about it?
Seems like a good long term semi safe option that allows folks to relax..........
Am looking to relax................

 

[W2R]

Wellesley is very popular among some of us here. I think you could do a lot worse.

I keep 30% Wellesley, simply because personally I would never put more than 30% in any one fund, even one as well managed and diversified as Wellesley.

 

[almost there]

Thanks, VTINX also looks nice and boring........
My only concern is the lower rated bond portion of these heading into a rising interest rate environment. Its never easy............

 

[Ginny]

Do you put 70% of your remaining funds in other than Vanguar* cos?

 

[MBAustin]

I will be filing the papers to collect my pension in a lump sum (one-time offer from megacorp) this week. Although I have a mix of index funds in my rollover IRA (from two 401ks), I decided to put this lump sum in a separate IRA with 100% invested in Wellesley, primarily due to what others have posted here along with my own research. It seems to me to be a good solid place for my "pension" (which I most likely won't start drawing on until well past 59-½). By keeping it separate from my 401k rollovers, I can see how it grows compared to my projections - not necessary, just more for academic interest.

 

[Alan]

Wellesley is very popular among some of us here. I think you could do a lot worse.

I keep 30% Wellesley, simply because personally I would never put more than 30% in any one fund, even one as well managed and diversified as Wellesley.

I just checked and I currently have 31% in a combination of Wellesley and Wellington funds.

I first bought Wellesley in 2003 and am more than pleased with its stability and performance. I thought I got the tip to buy it from this site but see now I didn't join until 2005. Must be one of those "false" memories because I didn't lurk much before joining.

 

[tulak]

I hold Wellesley instead of a bond fund. I'm ok with the extra bit of volatility and it's performance has been great. I'm at 15% right now, but I'll probably increase my allocation with time.

 

[bob boag]

Before a move to the sidelines a couple months ago my KISS Vanguard portfolio was 1/3 Wellesley (VWIAX), 1/3 Wellington (VWENX) and 1/3 Target Retirement (VTINX).

On the Fidelity side was 50% Short Term Bond Index Fund (VSBAX), 30% Total Stock Fund (FSTVX), and the balance split between International (FSIIX) and Emerging Markets (FEMKX). My Vanguard portfolio is about three times bigger than the Fidelity portfolio. Both are IRAs.

Also have ~150K in a Vanguard taxable account - 1/2 Wellesley (since moved to money market) and 1/2 in their Intermediate term bond fund (VFIDX).

The upshot of all this was about 40/60 stocks/bonds. I hope to re-enter the market at the end of October. Will probably dial it down to 30/70.

 

[almost there]

I have been on the side lines for a while. Plan to start averaging back into things.
Am trying to come up with a shopping list / mix of funds. Plan to keep it simple with the focus being on dependable dividends. If at all possible. As I think things could turn downward in the short / med. term, but the dividends will keep me happy.

 

[bbbamI]

Combined, DH and I have approx 30 percent of our port in Wellesley, and have had the accounts for several years.

We've been very pleased with the performance, so I don't see us changing any time soon.

 

[jerome len]

I use Vanguard tax managed balanced fund for my taxable income. It pays about 2% dividend each year and the after tax income is higher than wellesley for me. I do have some wellesley in my Roth IRA. Both are good, most of my other investments are index, heavy in total stock and a little in REITS for diversification. All in Vanguard.

 

[eytonxav]

If I recall, UncleMick was the #1 Wellesley booster with his. "pssst Wellesley" suggestions. However, I am not sure whether he stayed the course with this fund or moved to a target date one.

 

[Cobra9777]

I'm a tinkerer. I think it's in my DNA. I hold a variety of stock and bond ETFs, and re-weight them occasionally as I see fit. For example, on the equity side, I mainly hold VTI (or the closest equivalent in DW's employer-limited, tax-deferred accounts). But I also hold VXUS for international exposure and VYM to emphasize large-cap/high dividend. I've been increasing VYM lately, to cushion volatility a bit. On the fixed income side, I mainly hold AGG. But I also hold a small amount of BNDX for international exposure and LQD/HYG to emphasize corporate bonds over treasuries. I've been increasing HYG lately as a modest hedge against rising rates. That's not a complete picture, but you get the idea. I'm not a one fund kinda guy. I like being in control, and not too concentrated in one or two funds. Wellington and Wellesley are excellent choices, no question. But they're like a black box to me, and the ER is quite a bit higher than my weighted average.

 

[Masquernom]

I have a good proportion in Wellesley right now, but I'm a bit worried about it. It was great for years while interest rates were coming down, but it's going to suffer when rates start going in the other direction.

 

[REWahoo]

i have a good proportion in wellesley right now, but i'm a bit worried about it. It was great for years while interest rates were coming down, but it[-]'s going to[/-] may suffer when rates start going in the other direction.

fify

 

[Brat]

Any bond, bond fund, or bond portion of a balanced mutual fund will be worth less if interest rates go up. The same could be true of dividend paying stocks.

If you buy a bond and hold it to maturity you will get your principal returned, usually.

Pick your poison.

 

[Chuckanut]

I am conducting a bit of an experiment to try and duplicate Wellesley using very low cost ETF funds. Currently I have invested a small amount in ETFs. ,I have 60% in a total bond market ETF, and 40% in an ETF that invests in stocks that consistently pay dividends. So far, it looks good, but ask me again in a few years after interest rates have gone up.

Of course I also own Wellesley itself.

 

[aaronc879]

My Roth IRA is comprised entirely of Wellesley. It makes up approx. 25% of total portfolio. I would be comfortable going as high as 33% with that fund although I don't have current plans to do so.

 

[ducky911]

I am at 33%..It's my rock!!!..might be higher in a few days if the market goes down more and percentages change.

 

[freebird5825]

VWINX is my 2nd largest mutual fund holding, at 10.5 % of my total portfolio.
I caught the "pssst Wellesley" bug here when I first joined the site back in 2007. Very happy with its performance.

 

[ejman]

33% of my liquid NW in Wellesley as well. But I keep searching for an index MF investment that will do as well just because... I don't like having so many of my eggs in one actively managed basket. But I haven't found it yet. Vanguard's index funds counterparts (Target Retirement Income and Life Strategy Conservative Fund) simply do not do as well over time. If there ever is/was an argument for active management vs index it would have to be the Wellesley/Wellington one.

 

[Bdroc]

IMO the fed isn't about to raise interest rates while the stock market is in decline. You probably won't lose money in bonds and stocks at the same time.

Look at recent market action. High yield stocks like utilities ave held up much better than average.


Sent from my iPad using Early Retirement Forum

 

[eytonxav]

I have ~ 16% in a combination of Wellesley and Wellington. I am a little surprised at some of the high allocations mentioned in this thread. I have always had a general rule of thumb to invest no more than 10% in any one fund, and I'm probably pushing that due to the overlap between Wellesley and Wellington.

 

[REWahoo]

I have always had a general rule of thumb to invest no more than 10% in any one fund, and I'm probably pushing that due to the overlap between Wellesley and Wellington.

Have you cross-checked what each of your funds own? Could be you have more even more overlaps than you know.

 

[eytonxav]

Have you cross-checked what each of your funds own? Could be you have more even more overlaps than you know.

Yes, and there is some elsewhere, but nothing close to some of %s mentioned in this thread.