Over the past year or so we have increased our allocation to the Vanguard Wellesley fund to about 1/3 of our portfolio. We take the dividends via our IRA withdrawal and re-invest any capital gains. Although we have not been interested in an immediate annuity, Wellesley seems to us to be an attractive alternative. Although not guaranteed, it seems likely to throw off a slightly increasing income stream for our retirement while remaining OURS vs an insurance company's. Ie., a self funded long term care policy if needed, and something (if we don't overstay our welcome!) for our heirs.
So. My questions:
1) Does this allocation make sense or is it deeply flawed (40% stock funds, 35% Wellesley, 25% bonds and cash)?
2) For others who hold Wellesley, what percentage of your portfolio does it comprise?
Thanks!
So. My questions:
1) Does this allocation make sense or is it deeply flawed (40% stock funds, 35% Wellesley, 25% bonds and cash)?
2) For others who hold Wellesley, what percentage of your portfolio does it comprise?
Thanks!