A Basic VG Wellington Question

[setab]

Why not? My other VG accounts have done well, but not as well as Wellington. Sorry, couldn't resist. What is the down side of switching? I have followed it for nine months now. It has its ups and downs, but even with that, it is out performing my Target fund and its mirror image WS. Thoughts? Thanks.

setab

[Spanky]

Wellington has been in existence for a long, long time. It's record is impressive. It holds about 60 to 75% value stocks and the rest in high quality bonds. I think it is a great balanced fund for a tax-deferred account. The drawback is that it does not have any or minimal exposure to foreign stocks or bonds.

[Alex]

The fund is outstanding. Is it right for you? I dunno. It really depends on other factors. How old are you? Are you retired? would it be held in a taxable or retirement account? What other funds would you add as 'supporting players'?

[setab]

Retired. The money I am talking about is still in a reitrement account. I take minimal amounts out and plan to do the same as long as possible. I live off a COLA's pension. Other investments, not counting house equity are relatively minimal ( less than 50k) and since I have no immediate plans to move the house equity is really a nonfactor.

setab

[BigMoneyJim]

26% of my egg is in Wellington. I didn't originally plan it that way, but when I went to the "seasoned single fund" (my term) AA I didn't have LS Mod Growth in my 401(k), and Wellington seemed like the closest analog (stock/bond mix and self-balancing) I had available. For a while now I've had the option of exchanging those shares for LS Mod Growth, but so far I'm letting the Wellington part of my port ride.

(I bought international index to offset Wellington's lack of international. I've also added some extended market and some REIT index....the "seasoning". I'm at 75/25 stock/bond, counting REIT as stock; 10% of total is international, 10% is REIT.)

So I guess I now have "heavily seasoned dual single funds". Well, at least part of the portfolio rebalances itself.

[JohnEyles]

Quote:

Originally Posted by Spanky Wellington has been in existence for a long, long time. It's record is impressive. It holds about 60 to 75% value stocks and the rest in high quality bonds. I think it is a great balanced fund for a tax-deferred account. The drawback is that it does not have any or minimal exposure to foreign stocks or bonds.

Is the main difference with Wellesley the different stock/bond mix ?

Why do you say "for a tax-deferred account" ? (I have considerably more taxable
than tax-deferred money and there's other stuff I want to use the tax-deferred
account for, like TIPS). Are the dividends mostly non-qualified ?

[ats5g]

setab,

The main reason Wellington is doing better than the similar LifeStrategy Funds or Target Retirement Funds is that Wellington focuses on LV stocks, and the latter have both growth and value. Since LV stocks are doing better than LB + LG, Wellington is doing better.

Be warned, however, that if/when growth does better than Value, Wellington will do worse than the similar LifeStrategy Funds or Target Retirement Funds.

- Alec

[Alex]

Quote:

Originally Posted by setab Retired. The money I am talking about is still in a reitrement account. I take minimal amounts out and plan to do the same as long as possible. I live off a COLA's pension. Other investments, not counting house equity are relatively minimal ( less than 50k) and since I have no immediate plans to move the house equity is really a nonfactor. setab

Then it is definetly worth considering as a core holding. But since Wellington's stock holdings are all Large Value stocks, I would add a large cap growth fund to balance things out.

[BUM]

I set up a SEP plan 6 years ago. All funds went into VWELX...still there. I like it and have no plans to sell.

[setab]

Thanks for all the responses. They are very helpful.

setab

[JohnEyles]

Anybody else having trouble logging into Vanguard now ?
Thursday evening 10pm EST (from the USA) ?

It said my password was wrong, which I know ain't right,
and I went through the screens to reset my security, and
things went away to never-never land. It's getting tedious.

Hope they manage the funds better than their website ...

[REWahoo]

Quote:

Originally Posted by JohnEyles Anybody else having trouble logging into Vanguard now ? Thursday evening 10pm EST (from the USA) ?

No problem here: 10:22 EST

[larry]

Quote:

Originally Posted by JohnEyles Anybody else having trouble logging into Vanguard now ? Thursday evening 10pm EST (from the USA) ? It said my password was wrong, which I know ain't right, and I went through the screens to reset my security, and things went away to never-never land. It's getting tedious. Hope they manage the funds better than their website ...

no problemo here either, logged right on.