Meeting with financial advisor this week

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anyone who thinks wellesly is not a top notch fund for a retiree should not be commenting on what is good or bad about it on a retirement forum .

The Wellesly income fund VWINX is right now at 20.090 per share. <--
It was higher at 20.070 in December of 1995, and even higher at 23.170 in November of 1997.
That doesn't even consider the huge inflation since that time. Any fund like Wellesly is not one that I would invest in.

Comparing the Wellesly income fund VWINX with dividends reinvested, and the Vanguard Total Stock Market Fund VTI from 2002 to the present with an initial investment of $100k shows a CAGR (compound annual growth rate) of 7.15% $398k for Wellesly and 9.91% $662k for Vanguard.
 

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The Wellesly income fund VWINX is right now at 20.090 per share. <--
It was higher at 20.070 in December of 1995, and even higher at 23.170 in November of 1997.
That doesn't even consider the huge inflation since that time. Any fund like Wellesly is not one that I would invest in.
With a fund like Wellesley the price per share doesn't really tell the story.

The Wellesley fund pays out dividends and capital gains that are not reflected in the historical share prices.

It's better to look at the fund's total returns over time.

1-yr3-yr5-yr10-yrSince inception
07/01/1970
8.50%11.05%8.02%7.65%9.67%
 

Precisely!!
The Wellesly income fund VWINX is right now at 20.090 per share. <--
It was higher at 20.070 in December of 1995, and even higher at 23.170 in November of 1997.
That doesn't even consider the huge inflation since that time. Any fund like Wellesly is not one that I would invest in.

Comparing the Wellesly income fund VWINX with dividends reinvested, and the Vanguard Total Stock Market Fund VTI from 2002 to the present with an initial investment of $100k shows a CAGR (compound annual growth rate) of 7.15% $398k for Wellesly and 9.91% $662k for Vanguard.
 
If you know a darn thing about funds ,a mutual fund is required to pay out its trading gains yearly …it is total return that counts . You can never go by share price alone with mutual funds since gains must be distributed yearly .

wellsely is only 40% equities and is designed as one of the most conservative funds out there .

it is geared for conservative retirees .

it has an excellent record as such ….
 
The Wellesly income fund VWINX is right now at 20.090 per share. <--
It was higher at 20.070 in December of 1995, and even higher at 23.170 in November of 1997.
That doesn't even consider the huge inflation since that time. Any fund like Wellesly is not one that I would invest in.

Comparing the Wellesly income fund VWINX with dividends reinvested, and the Vanguard Total Stock Market Fund VTI from 2002 to the present with an initial investment of $100k shows a CAGR (compound annual growth rate) of 7.15% $398k for Wellesly and 9.91% $662k for Vanguard.
Agsin ,, you fail to understand you cannot go by share price …

tell us you are not trying to compare a balanced fund with. 40% equities designed for conservative retirees with a total market fund that is 100% equities …

that would be an insane comparison from a gain perspective.

however from a risk vs reward perspective a 7.15% gain with just 40% equities fs a 9.15% gain with a 100% equities is an excellent risk vs reward.

again it is about as conservative as a retiree can get and it is for. GUN SHY INVESTORS who don’t want high equity levels.

GO BACK AND LOOK AT THE ORIGINAL POST …SHE SAYS SHE THINKS MARKETS ARE DUE FOR A CORRECTION AND SHE WANTS TO HOLD LESS EQUITIES.

this thread was about investing more conservatively so a comparison to 100% equities in a total market fund has zero logic to it
 
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How 'bout...
What Colonel Klinck of (the tv show..."Hogan's Hero")
Says repeatedly..."I know nothing!" 😂🤣😂🤭
 
For those who are interested in learning and not running on myth , Tyler the creator of the fabulous website portfolio charts , and creator of the popular golden butterfly portfolio as well as the pinwheel portfolio has done extensive research on what makes a portfolio efficient in terms of risk vs reward.

by the way the charts the troll called useless were anything but that and they were done by Tyler.

he starts with the work of Harry markowitz and his efficient frontier and expands on it in a very nice study

https://portfoliocharts.com/2021/12/16/three-secret-ingredients-of-the-most-efficient-portfolios/
 
So here is my take on tips


they are not terrible but i would never count on them to keep up with my lifestyle costs .

they may not even keep up with actual inflation .



Numbers in a spreadsheet do not tell you about political risk that often comes with high inflation. You have to use some intuition and historical extrapolation to guess what results from high inflation and why you don't want to use TIPS.

1) High inflation is a political problem in almost every case. The people causing the inflation know they are doing it.
2) Because high inflation is unpopular with the masses, the people in charge are always going to lie about it as long as possible to deflect blame.
3) Then when lying doesn't work, they will implement policies like price controls to make it look like they are doing something. This always makes it worse.
4) Along the way, they will manipulate economic numbers to try to trick the markets. However the markets are much smarter than the typical politician, who is usually an idiot based on my experience.

But these things are not going to show up in Excel. There is no ("IDIOT POLITICIAN ) function you can call. There is no way for you to anticipate what actions they will take to lie about the situation. And, there is no way for you to know how the markets are going to react to the mess.

I will only suggest that the markets will figure out the right thing to do and that right thing usually is not relying on government numbers about inflation.

so tips are like buying fire insurance from an arsonist

Or you can simply go back and read Nixon's, Ford's and Carter's speeches about inflation in the 1970s. It was lie after lie after lie. A decade of lies.

TIPS may be OK for the cash portion of the portfolio. But I wouldn't rely on them in the slightest for protection against high inflation. For lower inflation the bonds and stocks are all you need.
Well said...
 
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