 |
|
09-30-2008, 08:28 PM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,933
|
Out Of Wellesley?
DW retired 2 years ago and I did on March of this year, so far have not touched our, now declining, deferred comp funds, this year was covered by a buy out when I retired and we have cash in our credit union that plus our pensions covers our 2009 expenses. But starting in 2010 we will need to draw down on our IRAs or have a major contraction in lifestyle or. gulp, w@rk.
I like to keep things simple particularly for DW who is not interested in matters financial. So her IRA is in VG Wellesley and mine is primarily in a target retirement type account.
Over the last few years we have been satisfied with these choices and they have done OK through the recent market declines. But, should we be doing something different? Is there ever a time to get out of Wellesley?
__________________
T.S. Eliot:
Old men ought to be explorers
|
|
|
 |
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!
|
09-30-2008, 08:32 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
|
I'm guessing that most Wellesley holders are a bit happier than most investors these days. Except for target retirement income and lifestrategy income, its lost the least of all vanguard balanced funds YTD.
You'll get a largely inflation protected ~4% out of the fund like clockwork. You wont have a bunch of losing years or any huge drop years.
You also wont make as much as if you had much higher stock holdings, and the associated volatility.
So I guess the short answer is a couple of questions...what dont you like about it and what would you like to have in the way of parameters that would be better? More return and more volatility? Less return and less volatility?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
09-30-2008, 08:33 PM
|
#3
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 44,375
|
Quote:
Originally Posted by yakers
DW retired 2 years ago and I did on March of this year, so far have not touched our, now declining, deferred comp funds, this year was covered by a buy out when I retired and we have cash in our credit union that plus our pensions covers our 2009 expenses. But starting in 2010 we will need to draw down on our IRAs or have a major contraction in lifestyle or. gulp, w@rk.
I like to keep things simple particularly for DW who is not interested in matters financial. So her IRA is in VG Wellesley and mine is primarily in a target retirement type account.
Over the last few years we have been satisfied with these choices and they have done OK through the recent market declines. But, should we be doing something different? Is there ever a time to get out of Wellesley?
|
You didn't like last week's dividends?
Wellesley has dropped, but so has everything else. Over the long term, it has kept pace with inflation while providing good dividends. I have not even thought of selling my Wellesley, personally. It is doing what it is supposed to do.
|
|
|
09-30-2008, 08:42 PM
|
#4
|
Full time employment: Posting here.
Join Date: Jan 2006
Posts: 899
|
Quote:
Originally Posted by yakers
Is there ever a time to get out of Wellesley?
|
I haven't looked at it for many years but IRRC the bond portion of Wellesley had a fairly long duration so it would not do very well if interest rates increased.
|
|
|
09-30-2008, 08:48 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
|
Sort of on the short end of intermediate term.
When rates have shot up or down, it hasnt seemed to have much of a material effect. Pretty smooth chart.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
09-30-2008, 09:02 PM
|
#6
|
Full time employment: Posting here.
Join Date: Jan 2006
Posts: 899
|
Quote:
Originally Posted by cute fuzzy bunny
Sort of on the short end of intermediate term.
When rates have shot up or down, it hasnt seemed to have much of a material effect. Pretty smooth chart.
|
Should be fine then.
My comments were based on their bond portfolio of about 15 years ago.
MB
|
|
|
09-30-2008, 09:11 PM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,480
|
Roughly 40% of my nest egg is in Wellesley and I have no plans for any decrease. On the contrary, after all the debris is cleaned up following yesterday's little dust up I'm considering adding another dollop.
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
|
|
|
09-30-2008, 10:36 PM
|
#8
|
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,933
|
I actually like Wellesley but I just wanted to be sure that I was not *blind* to something. I held an S&P500 fund for many years and it did well enough, especially in up markets but I learned as I got older to add some Intl stocks and bonds. I just wanted to make sure there wasn't something about Wellesley that I was missing.
And I thought it might get a reply out of Uncle Mick
__________________
T.S. Eliot:
Old men ought to be explorers
|
|
|
09-30-2008, 11:08 PM
|
#9
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Wellesley isn't nearly as good as a SPIA.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
09-30-2008, 11:28 PM
|
#10
|
Recycles dryer sheets
Join Date: Jul 2005
Posts: 423
|
Do you have Admiral Shares of Wellesley? If not, if you don't have a capital gain built up in Welly, I think it is a no-brainer to move to the Vanguard Target Retirement Income fund.
Here is why I would make the decision:
Expense ratio (assuming non-admiral shares): TR: .19% Well: .25%
Current Yield: TR: 4.03% Well: 4.79% (so, both get close to the magic 4%)
Asset mix:
TR: 70% bonds/30% stock
Bonds diversified into 20% tips, 45% total bond, 5% prime money market
Bond average credit quality: AAA (95% rated A or above)
Stock: 24% Total US, 6% international and emerging mkts
Average market cap: $27b (smaller market cap, so less stock allocation needed for equity returns)
Well: 63% bonds/37% stock
Bonds un-diversified: 294 bonds
Bond average credit quality: AA (85% rated A or above)
Stock: only 52 stocks! (non-diversified)
Average market cap: $46.5b
Returns: (to aug-31)
TR: 3-year pre-tax: 4.4%
Well: 3-year pre-tax: 4.23%
TR: 3-year post-tax: 3.05%
Well: 3-year post-tax: 2.62%
So, even in tax-efficiency, TR Income beats out Wellesley.
Trailing Returns, 1-yr to today:
TR: -4.23%
Well: -6.72%
Personally I know what choice I would make, mainly due to the lower credit quality of Wellesley, the smaller market cap of TR Income and the more diversification TR Income offers. But it is your judgement call!
If you want to compare all the stats:
Vanguard Target Retirement Income Report (VTINX) | Snapshot
Vanguard Wellesley Income Report (VWINX) | Snapshot
|
|
|
10-01-2008, 06:46 AM
|
#11
|
Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 44,375
|
|
|
|
10-01-2008, 07:03 AM
|
#12
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 8,653
|
Quote:
Originally Posted by brewer12345
Wellesley isn't nearly as good as a SPIA.
|
No luck Brewer. Not even a nibble.
__________________
Retired 3/31/2007@52
Investing style: Full time wuss.
|
|
|
10-01-2008, 07:05 AM
|
#13
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
|
It was a pretty lame attempt.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
10-01-2008, 08:19 AM
|
#14
|
Moderator
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,475
|
Quote:
Originally Posted by brewer12345
Wellesley isn't nearly as good as a SPIA.
|
Doesn't look like you reeled anything in...
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
10-01-2008, 08:22 AM
|
#15
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,480
|
No problem. He's got one on the hook here.
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
|
|
|
10-01-2008, 08:29 AM
|
#16
|
Moderator
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,475
|
Quote:
Originally Posted by REWahoo
No problem. He's got one on the hook here.
|
Fish on!
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
10-01-2008, 09:59 AM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,933
|
Quote:
Originally Posted by brewer12345
Wellesley isn't nearly as good as a SPIA.
|
Its funny to write about nasal coffee, sounds cute but not if its actually happening. I wanted to post a clever response but I was actually mopping up the keyboard.
__________________
T.S. Eliot:
Old men ought to be explorers
|
|
|
10-01-2008, 10:03 AM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
|
Its much worse than spontaneously generated nasal milk.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
10-01-2008, 10:15 AM
|
#19
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Quote:
Originally Posted by cute fuzzy bunny
Its much worse than spontaneously generated nasal milk.
|
Soda is a lot nastier than either. And don't ask about the time I got seasick after having a breakfast of oatmeal...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
10-01-2008, 10:27 AM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,218
|
Oh dudes...it's lunchtime!
__________________
There's no need to complicate, our time is short..
|
|
|
 |
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
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
|
|
|