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Thread: Vanguard Wellesley fund

  1. #1
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    Vanguard Wellesley fund

    Does anyone else have this mutual fund? I bought some and an intrigued by the one stop shopping aspect to it. Currently I am reinvesting the distributions, but at 61, am kind of in an early downsizing retirement and wonder if anyone takes the distributions as cash instead. If you have this, how has it been for you? Thanks.

  2. #2
    Senior Member catherine's Avatar
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    Looks pretty good--I have a Vanguard REIT and another Vanguard Index Fund and I've just been wondering where to park my latest Roth deposit--although is this funds strictly for retirees? I'm certainly not that yet.
    "Do any human beings ever realize life while they live it--every, every minute?" Emily Webb, Our Town
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    A lot of people use Vanguard's Wellesley and Wellington funds in tandem for retirement income (somebody must have had an interest in the Napoleonic Wars). It's an inexpensive, well-run fund with a long track record. I believe it's about 60% in higher-quality corporate bonds.

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    Quote Originally Posted by LDAHL View Post
    A lot of people use Vanguard's Wellesley and Wellington funds in tandem for retirement income (somebody must have had an interest in the Napoleonic Wars). It's an inexpensive, well-run fund with a long track record. I believe it's about 60% in higher-quality corporate bonds.
    Count me in this camp. However, we have not started taking out. Not sure what the interest in Napoleonic Wars has to do with anything or what it means?

  5. #5
    Senior Member Rogar's Avatar
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    I have the Wellington Fund, which I believe differs from the Wellesley mostly in the percent invested in equities vs. bonds, with the Wellesley having a higher percentage of bonds (could look it up to verify, but pretty sure). The way I see it, the percentage in bonds is basically similar to a bond fund and is subject to interest rate risk...a declining asset value if interest rates rise. I did a major portfolio overhaul recently and because interest rates are predicted to go up I considered moving out of Wellington, but decided to keep it. Even though it's a Vanguard fund I have it in a Fidelity account and talked with a Fidelity adviser. He said he would keep it, that it is a stable fund that has been around forever.

    I suppose you could consider it a one stop shop if you are happy with the percentage of equities to bonds and the bond durations, which is basically fixed. I like the flexibility of adjusting things and for me it fits better with others things that allow me to change these percentages.

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    Quote Originally Posted by frugal-one View Post
    Count me in this camp. However, we have not started taking out. Not sure what the interest in Napoleonic Wars has to do with anything or what it means?
    Arthur Wellesley was the Duke of Wellington. HMS Vanguard was Nelson's flagship at the Battle of the Nile.

  7. #7
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    I took the Vanguard test as to risk tolerance and then bought into the Wellesley fund in December. You can elect to either reinvest the distributions or take them as cash--I am reinvesting them, but will need them at some point. It's not just for retirees, Catherine, although I think a lot of retirees end up buying it because of the 60/40 bond stock ration. Yeah, Wellington is 40/60 and many folks combine them equally to end up with a 50/50 allocation.
    I have just been reading that some people put all in Wellesley or a Wellesley/Wellington combo and wondered if any of you are doing that.
    I like the fact it's on auto-pilot and I'm not called to make investing decisions about it. I also have a Vanguard target fund and a couple of Vanguard ETFs so I am a big fan of Vanguard. But I don't have a Vanguard account. I suppose if I fell in love with the whole thing I might move money over to Vanguard and make it a separate IRA.

    I have been reading on the Bogleheads forum and some people suggest doing the total Wellesley thing if you are not interested in active investing or you can't do it anymore or never learned how. I've been investing for 18 years, but I'm looking for an easier old age.

    PS. Catherine, I love the idea of opening a Roth at Vanguard and sticking it in Wellesley. Or Wellesley/Wellington. Or just Wellington!

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    Dear Tybee, I think you have made a good choice. I am a Vanguard client and shareholder and am impressed with the stability, low costs and simplicity of the Vanguard funds as well as the good advice you can get from their staff. There is no selling the public the Brooklyn Bridge here. You do get your share of the market's gains over the long haul. It's a good deal.

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    Quote Originally Posted by bicyclist View Post
    Dear Tybee, I think you have made a good choice. I am a Vanguard client and shareholder and am impressed with the stability, low costs and simplicity of the Vanguard funds as well as the good advice you can get from their staff. There is no selling the public the Brooklyn Bridge here. You do get your share of the market's gains over the long haul. It's a good deal.
    Thanks, Bicylclist, that is good to hear!

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