Just bought $50,000 worth of Wellesley

[obgyn65]

Yes. You read the thread title correctly. The post from Accidental Retiree under the "Say Goodbye to the 4% Rule - tips from the WSJ " did it for me .

This is the first time in my life I invest in something other than CDs, munis, or their European equivalent (apart from very small annuities).

If I lose money on this Wellesley Income Fund, I will send the bill to Midpack and ERD50

Take care everyone

Ob

 

[REWahoo]

Interesting that you bought on the day the fund hit an all-time high.

You will do fine as long as you don't get nervous in a downturn and sell.

 

[youbet]

Interesting that you bought on the day the fund hit an all-time high.

First thing I thought of!

But, yes, I think it is highly unlikely that a young fella like Obgyn65 would leave this earth with Wellesley below the price he paid today. It's moved past all time highs many times in the past.

 

[Meadbh]

Holy Cow! I never thought we'd see the day. Congratulations obgyn65 on getting your feet wet. Let's see, that would be a ~2% allocation to equities? Well, you gotta start somewhere!

And to Accidental Retiree, I bet you never thought you could have so much influence!

 

[travelover]

I don't know. That is such a new, risky and untried fund.

 

[Midpack]

If I lose money on this Wellesley Income Fund, I will send the bill to Midpack and ERD50

Jeeeeez, did the earth spin off it's axis?

Seriously, good for you. If you lose money on Wellesley, it'll be because you sold off when you shouldn't have most likely. Developing an AA & rebalancing is the easy part (despite all the discussions and books) - having the patience/discipline/intestinal fortitude to ride out the inevitable downturns when they hit is where most investors get themselves in trouble.

 

[obgyn65]

I don't know what the AA would be exactly. Between 1 and 2%, I guess. Depending on GBP and Euro fluctuations vs USD.

Holy Cow! I never thought we'd see the day. Congratulations obgyn65 on getting your feet wet. Let's see, that would be a ~2% allocation to equities? Well, you gotta start somewhere!

And to Accidental Retiree, I bet you never thought you could have so much influence!

 

[bondi688]

Interesting that you bought on the day the fund hit an all-time high.

The idea is to buy high and sell at higher.

 

[karluk]

Your purchase of Wellesley reminds me very strongly of my purchase of $50,000 of Vanguard Wellington in October, 2006. My intention was to create a "vacation fund" for DW, and that was one of the few funds I was willing to buy and hold indefinitely without fear of getting nervous and selling at the worst possible moment. The agreement with DW is that she can use any profit from Wellington over and above the initial investment for whatever purpose she wants, without consulting me or anybody else.

As I recall, those Wellington shares gained 15% the first year before getting clobbered like everything else in 2008. By being patient while stocks rebounded, she's made out extremely well. The most recent example is a tour of Japan she's going on in April.

Your underlying purpose in buying Wellesley is quite a bit different, but I predict if you're patient like DW, you will also see your initial investment grow in ways your other conservative investments won't be able to keep pace with.

Of course you are much wealthier that my family. If you want to go to Japan, you would just go, and not bother looking at how your investments are doing. Still, it's not a bad idea to adjust your spending a little based on investment performance.

 

[REWahoo]

The idea is to buy high and sell at higher.

Thanks. Good to know.

 

[ProGolferWannabe]

Hmmm....seems like a sure sell signal to me.

 

[freebird5825]

Jeeeeez, did the earth spin off it's axis?

I felt the tremors all the way to the east coast.

Just kidding.

Where is Uncle Mick with his famous "pssst...." comment ?

 

[Gasdoc]

I'm a relative neophyte to this board and even I know that this is a big move for a very conservative investor. Well done! Hope it works out very well for you. Great idea to start with small portion of the portfolio so you can test the waters. They seem very warm at this point

 

[bondi688]

Yeah, a member with more than 28,000 posts probably didn't know that...

My comment was more to reassure obgyn65, a very conservative investor, on taking a step from a path he is used to, than to address REWahoo, but thank you for taking time from being a judge on the American Idol to post your many comments.

 

[Midpack]

My comment was more to reassure obgyn65, a very conservative investor, on taking a step from a path he is used to, than to address REWahoo, but thank you for taking time from being a judge on the American Idol to post your many comments.

Sorry if I touched a nerve...deleted if it makes you feel better.

 

[LakeTravis]

Congratulations. I'm a big fan of both Wellington and Wellesley. In fact, when I pull the trigger my plan is to essentially have my <15 year needs in Wellesley and my >15 year needs in Wellington with not much else.

 

[ejman]

To be honest this is somewhat worrisome. When an extremely conservative investor (meant with all due respect - nothing wrong with Obgyn65 original approach to his retirement needs - he has the resources and LBYM approach to support it) decides to invest in a very conservative fund that has 35% allocated to stocks for the first time ever. .. This probably means that since 1/3 of my net worth is in Wellesley I need to start worrying about it...

 

[bondi688]

Sorry if I touched a nerve...deleted if it makes you feel better.

No, it was quite alright. No offense really taken. I appreciate the gesture though.

 

[Sun456]

Interesting decision. I decided today to put a bit more toward my annuities.

 

[Dreamer]

I have read about Wellesley for many years and bought some within the last year for DH and I. Now obgyn has bought some also. I am starting to get nervous too.

Seriously, congrats obgyn. I have been happy so far with Wellesley and need to buy some more before April 15.

 

[Koogie]

Ohhh, man. Ahem "Bus driver, I think I'm the only one left on the fixed income only bus"

Could you take me somewhere they have higher interest rates ?!

haha

 

[Meadbh]

Yes, I know it's in Dutch. Just look at the diagram.

De Chasm in Social Media Marketing » Bijgespijkerd

obgyn65 started as a skeptic and has now been socialized by what he has learnt on the board (and the rising markets) to move into the conservatives. Overall, I am a pragmatist and I think that describes most people on the board. It is possible to be at one extreme of the curve in one aspect of life, and at the other in other realms.

 

[pb4uski]

Congrats obgyn65!!!

In a strange way I feel like I witnessed someone losing their virginity!

 

[JOHNNIE36]

Congrats obgyn. You broke the ice and maybe I'm next. Just had a CD mature and it's sitting at Ally Bank getting a rousing 0.9%. Now that you bought in at an all time high, I think I'll do some "market timing" and wait for the market as a whole to drop a little. I don't need the income so I'm in no hurry to do something out of character. Funny how stuff happens. I sitting here watching the market go up and my CD mature date isn't getting any closer. Now it's here and the market is at an all time high.

 

[Accidental Retiree]

Holy Cow! I never thought we'd see the day. Congratulations obgyn65 on getting your feet wet. Let's see, that would be a ~2% allocation to equities? Well, you gotta start somewhere!

And to Accidental Retiree, I bet you never thought you could have so much influence!

Not MY influence. You read where he'll send the bill if he loses $$$.

I think it'll be an interesting learning experience for ObGyn65, one he can well afford and one that I believe will pay off for him. Further, it will provide more funds later on for those who will benefit from the money he has already managed to make and accumulate without the stock market.

Me, I just want to get to Admiral status. Maybe next year!

Thanks to all on this DIY investors board who have contributed to my financial well-being. I appreciate your sharing your hard-won expertise.