|
Good time to buy Wellesley?
09-22-2020, 01:36 PM
|
#1
|
Recycles dryer sheets
Join Date: Nov 2017
Location: St. Petersburg
Posts: 134
|
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.
|
|
|
|
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!
|
09-22-2020, 01:40 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,148
|
I thought Wellesley was closed to new investors, but that may no longer be the case.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
|
|
|
09-22-2020, 01:41 PM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,184
|
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.
|
|
|
09-22-2020, 03:34 PM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,972
|
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
__________________
Fortune favors the prepared mind. ... Louis Pasteur
|
|
|
09-22-2020, 03:45 PM
|
#5
|
Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
|
The market goes up over the long term no matter who wins the election. Wellesley is a great fund if you are retired.
|
|
|
09-22-2020, 04:24 PM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,308
|
Quote:
Originally Posted by Sunset
... 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.
|
|
|
09-22-2020, 05:23 PM
|
#7
|
Full time employment: Posting here.
Join Date: May 2007
Posts: 880
|
You're not married, are ya.
__________________
"It is better to have a permanent income than to be fascinating". Oscar Wilde
|
|
|
09-22-2020, 05:33 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Columbus
Posts: 1,118
|
Quote:
Originally Posted by LXEX55
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.
|
It’s just as likely to go up. Maybe even more likely. You cannot predict. I personally would not wait, but that’s me.
__________________
Ohio REFI PE ENG and Investor as of 2016
|
|
|
09-23-2020, 03:21 AM
|
#9
|
Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
|
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.
|
|
|
09-23-2020, 05:03 AM
|
#10
|
Full time employment: Posting here.
Join Date: Oct 2016
Location: Pinetops
Posts: 521
|
I would put $75,000 in right now and 75,000 (at your wife’s discretion) after the election.
Nothing wrong with putting 100k in VWIX and 50k in VGWIX. This would provide a bit more diversification.
I
__________________
I
ER 12/15/2017
Now: Side Hustle(r) Extraordinaire
|
|
|
09-23-2020, 06:00 AM
|
#11
|
Thinks s/he gets paid by the post
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,596
|
Quote:
Originally Posted by Sunset
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!!
__________________
Retired May 13th(Friday) 2016 at age 61.
|
|
|
09-23-2020, 06:06 AM
|
#12
|
Thinks s/he gets paid by the post
Join Date: Mar 2009
Posts: 2,975
|
Quote:
Originally Posted by Sunset
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.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
|
|
|
09-23-2020, 06:53 AM
|
#13
|
Thinks s/he gets paid by the post
Join Date: May 2016
Location: Mid-Atlantic
Posts: 2,642
|
Quote:
Originally Posted by Al in Ohio
It’s just as likely to go up. Maybe even more likely. You cannot predict. I personally would not wait, but that’s 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.
__________________
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
|
|
|
09-23-2020, 08:57 AM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,344
|
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.
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
|
|
|
09-24-2020, 08:30 AM
|
#15
|
Dryer sheet wannabe
Join Date: Sep 2020
Location: MOUNT PLEASANT
Posts: 10
|
Wellesley Income is open if you buy it directly from Vanguard. Good conservative fund. Very well rated by Morningstar.
|
|
|
09-25-2020, 04:29 PM
|
#16
|
Full time employment: Posting here.
Join Date: Jan 2006
Posts: 956
|
Quote:
Originally Posted by LXEX55
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
|
|
|
09-25-2020, 05:15 PM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,707
|
Quote:
Originally Posted by sandlapper
Wellesley Income is open if you buy it directly from Vanguard. Good conservative fund. Very well rated by Morningstar.
|
Psssst! And unclemick IIRC.
__________________
Ko'olau's Law -
Anything which can be used can be misused. Anything which can be misused will be.
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|