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Good time to buy Wellesley?
Old 09-22-2020, 01:36 PM   #1
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Good time to buy Wellesley?

I had planned on moving about $150,000 of my IRA money into Wellesley (I am retired). It is currently parked in a money market fund. My wife said I should wait until the presidental election is over because the market may tank if XXX wins (I in no way wish this to become a politcal discussion, not meant to be so at all). I told her this fund is only about 35% stocks. She said wait anyway. Is there any logical market driven reason to hold off until the election is over? She has this annoying habit of getting me nervous right before I move money.
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Old 09-22-2020, 01:40 PM   #2
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I thought Wellesley was closed to new investors, but that may no longer be the case.
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Old 09-22-2020, 01:41 PM   #3
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I don't see how anyone could provide useful advice about what is probably a part of your portfolio, with no knowledge of the rest of your portfolio, nor your goals and risk profile.

In the absence of other information, I'd say select an AA and stick to it.
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Old 09-22-2020, 03:34 PM   #4
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Frankly, nobody knows what effect the election of XXX or YYY will have. Sure people guess based on their favored political orientation but plenty of predictions by experts about past presidents have been wrong.

You can continue to get low returns from the money market fund for 2 more months.
Seems like cheap insurance (a hedge) in case your wife is correct as you would NEVER hear the end of it.
The bonus is should your wife be wrong you can remind her FOREVER
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Old 09-22-2020, 03:45 PM   #5
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The market goes up over the long term no matter who wins the election. Wellesley is a great fund if you are retired.
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Old 09-22-2020, 04:24 PM   #6
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... You can continue to get low returns from the money market fund for 2 more months.
Seems like cheap insurance (a hedge) in case your wife is correct as you would NEVER hear the end of it.
The bonus is should your wife be wrong you can remind her FOREVER
This. Wisdom you would never get from a paid FA.
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Old 09-22-2020, 05:23 PM   #7
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...The bonus is should your wife be wrong you can remind her FOREVER
You're not married, are ya.
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Old 09-22-2020, 05:33 PM   #8
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Originally Posted by LXEX55 View Post
I had planned on moving about $150,000 of my IRA money into Wellesley (I am retired). It is currently parked in a money market fund. My wife said I should wait until the presidental election is over because the market may tank if XXX wins (I in no way wish this to become a politcal discussion, not meant to be so at all). I told her this fund is only about 35% stocks. She said wait anyway. Is there any logical market driven reason to hold off until the election is over? She has this annoying habit of getting me nervous right before I move money.


Itís just as likely to go up. Maybe even more likely. You cannot predict. I personally would not wait, but thatís me.
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Old 09-23-2020, 03:21 AM   #9
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In general, markets do well just after an election.

Remember last time around - XXX won, people said if XXX wins markets will tank. They did tank, for a few hours, and then zoomed higher for the next 3 years.

In the near term there will be volatility regardless of the outcome. Sit tight.

If you are interested in Wellesley regardless, but are concerned about volatility, consider putting half in now and the other half later.
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Old 09-23-2020, 05:03 AM   #10
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I would put $75,000 in right now and 75,000 (at your wifeís discretion) after the election.

Nothing wrong with putting 100k in VWIX and 50k in VGWIX. This would provide a bit more diversification.

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Old 09-23-2020, 06:00 AM   #11
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Frankly, nobody knows what effect the election of XXX or YYY will have. Sure people guess based on their favored political orientation but plenty of predictions by experts about past presidents have been wrong.

You can continue to get low returns from the money market fund for 2 more months.
Seems like cheap insurance (a hedge) in case your wife is correct as you would NEVER hear the end of it.
The bonus is should your wife be wrong you can remind her FOREVER
+1 Exactly!!
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Old 09-23-2020, 06:06 AM   #12
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Frankly, nobody knows what effect the election of XXX or YYY will have. Sure people guess based on their favored political orientation but plenty of predictions by experts about past presidents have been wrong.

You can continue to get low returns from the money market fund for 2 more months.
Seems like cheap insurance (a hedge) in case your wife is correct as you would NEVER hear the end of it.
The bonus is should your wife be wrong you can remind her FOREVER
Agree except for the final statement. Reminding your wife that she was wrong has serious consequences in my household.
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Old 09-23-2020, 06:53 AM   #13
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Itís just as likely to go up. Maybe even more likely. You cannot predict. I personally would not wait, but thatís me.
Same. I've found that I suffer from a condition known as "analysis paralysis", where I overthink things and that makes it difficult to act. The cure is to make myself act as soon as I am 100% decided on a change in strategy. So if I decided that this fund was where I should put my money in the long term, I would put it in there today....as long as you aren't going to need most of it in the next 2-3 years, in which case it should be in cash or bonds, regardless of whether there's an election or not.
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Old 09-23-2020, 08:57 AM   #14
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Markets may have a short term blip based on upcoming election results, but in general the market is a longer term outlook. In other words it is already priced in to some extent. Also remember that just based on president election results, it also takes congress to actually make any changes to tax laws or other laws that affect investments. That takes time and given the cooperation of two parties if the president does not have majority in both houses. Since we all know how well cooperation is going, it may be the result is a locked up congress that will not change anything; no matter who is the president.
I do think putting that money into something besides cash is a reasonable good idea. If long term money, can go with higher equities. If shorter term, go more fixed income. I do think Wellesley is a fine choice, albeit on the conservative side with the target 35-40% equities; which may make a good shorter term option.
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Old 09-24-2020, 08:30 AM   #15
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Wellesley Income is open if you buy it directly from Vanguard. Good conservative fund. Very well rated by Morningstar.
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Old 09-25-2020, 04:29 PM   #16
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Originally Posted by LXEX55 View Post
I had planned on moving about $150,000 of my IRA money into Wellesley (I am retired). It is currently parked in a money market fund. My wife said I should wait until the presidental election is over because the market may tank if XXX wins (I in no way wish this to become a politcal discussion, not meant to be so at all). I told her this fund is only about 35% stocks. She said wait anyway. Is there any logical market driven reason to hold off until the election is over? She has this annoying habit of getting me nervous right before I move money.
Sounds like my Mom and Dad I have been trying to talk them into Wellesley for three years. There is always a reason they don't. By my math, they cost themselves about $50,000 of earnings. Oh well.

In my opinion, and what I have been trying to tell them, is that there isn't a bad time to invest in Wellesley. It's a steady Eddie performer with fairly low risk, since it is 36% stocks and 64% bonds.

If she is still not convinced, then invest 1/2 now, and 1/2 after the election.

BTW, I am trying to convince my wife to do the same with a similar size chunk of "her" money. She's convinced the world as we know it is ending soon
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Old 09-25-2020, 05:15 PM   #17
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Wellesley Income is open if you buy it directly from Vanguard. Good conservative fund. Very well rated by Morningstar.
Psssst! And unclemick IIRC.
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