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View Poll Results: Has Your Portfolio Outperformed These Over the Short & Long Term?
Outperformed Wellington 11 23.40%
Outperformed Wellesley 18 38.30%
Underperformed Wellesley 18 38.30%
Voters: 47. You may not vote on this poll

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Old 08-20-2015, 11:05 PM   #41
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Lawrence of Suburbia's Avatar
Join Date: Mar 2009
Location: Newcastle, WA
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Originally Posted by fritz View Post
I'm in my 6th year of retirement - retired at 58. Wife retired at 57 (5th year now) - living off our investments (no pensions or annuities). Added Social Security as of two years ago, and wife's this year (spousal).

We have both Wellington and Wellesley funds. Chose them for simplifying things in retirement (very important as wife has "zero" interest in managing investments, and for me when I eventually lose my edge and won't realize it). They offer professional management at a very low expense ratio (Admiral level .18%), along with auto rebalancing/maintaining desired stock/bond ratio). They pay out dividends higher than all other VG balanced funds. We've held Wellington since we started investing and it is has been a solid performer. Wellesley was added when we retired for manipulating stock bond ratio to 52/48 utilizing the two of them (58% Wellington, and 42% Wellesley). Index funds were the mainstay pre-retirement. IMHO balanced funds are the most underrated retirement investment vehicle for simplicity.

Our investment income stream currently consists of only Taxable account withdrawals. I'd have to say (w/o really looking back) that the dividend income stream has been fairly steady/growing over the 6 years of withdrawing. The accounts have grown nicely during that time frame as well with all dividends taken (we also took all year end capital gains last year to replenish 2 year cash reserves - medical issue).
Thank you for your extensive response.

Am I correct in understanding that reinvesting cap gains allowed the two funds to grow, even with all income dividends taken?
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Old 08-21-2015, 08:57 AM   #42
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Originally Posted by Lawrence of Suburbia View Post
Thank you for your extensive response.

Am I correct in understanding that reinvesting cap gains allowed the two funds to grow, even with all income dividends taken?
Taxable accounts have increased all six years as previously stated, but had to correct my first reply to your question after looking back - just 2012 to 2014 VG year end statements used (years with taxable accounts holding "only" Wel/Wels funds). Those years show increases with all quarterly dividends and the largest one year declared capital gains taken (that year was still aro. +3%). I haven't added any funds to taxable accounts since retiring, but did some adjusting (transferring between Wel/Wels to get the stock bond ratio where I wanted it and had a small taxable account (money market) holding transferred into both funds. I also went back and looked at our tax filings, and dividends have increased yearly (been an up market the last 6 years).
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