TLH Global Wellington Fund

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yakers
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TLH Global Wellington Fund

Post by yakers » Thu Nov 08, 2018 10:24 pm

I have some short and long term losses in the Global Wellington fund (VGWAX). I would like to hold this fund long term but think it may be a good idea to TLH these losses but am unsure how to proceed. I don’t know a somewhat similar fund to exchange to. I do not want to just sell it and go to cash. I could just exchange the funds for Wellington (VWELX) and then exchange back 31+ days later. Does this sound like a viable way to proceed?

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dwickenh
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Re: TLH Global Wellington Fund

Post by dwickenh » Thu Nov 08, 2018 10:55 pm

It would likely work fine, but you will be out of the International market for the 31 days. It may work better to use the Vanguard Balanced Index fund which will still hold foreign stocks. Probably won't matter for 31 days, but if you had to hold the acquired fund due to capital gains the Balanced Index would be better to hold.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

rkhusky
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Re: TLH Global Wellington Fund

Post by rkhusky » Fri Nov 09, 2018 6:54 am

Wellington has about 20% of stock in international. Just be prepared to hold Wellington long term if prices go up, or sell and pay taxes on cap gains.

Wellington is not a great fund to hold in a taxable account because of all the cap gains and dividends it spits out, unless you are in the withdrawal phase and would be withdrawing shares anyway. Not sure if Global Wellington will be the same.

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grabiner
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Re: TLH Global Wellington Fund

Post by grabiner » Sun Nov 11, 2018 5:20 pm

dwickenh wrote:
Thu Nov 08, 2018 10:55 pm
It would likely work fine, but you will be out of the International market for the 31 days. It may work better to use the Vanguard Balanced Index fund which will still hold foreign stocks. Probably won't matter for 31 days, but if you had to hold the acquired fund due to capital gains the Balanced Index would be better to hold.
Balanced Index doesn't hold foreign stocks either; the fund you want is LifeStrategy Moderate Growth.

If you are going to hold a balanced fund in a taxable account, I would prefer the LifeStrategy fund (or, still better, a target retirement fund, which changes allocation as you need it); an active fund such as Global Wellington is likely to be tax-inefficient.
Wiki David Grabiner

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dwickenh
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Re: TLH Global Wellington Fund

Post by dwickenh » Sun Nov 11, 2018 6:24 pm

grabiner wrote:
Sun Nov 11, 2018 5:20 pm
dwickenh wrote:
Thu Nov 08, 2018 10:55 pm
It would likely work fine, but you will be out of the International market for the 31 days. It may work better to use the Vanguard Balanced Index fund which will still hold foreign stocks. Probably won't matter for 31 days, but if you had to hold the acquired fund due to capital gains the Balanced Index would be better to hold.
Balanced Index doesn't hold foreign stocks either; the fund you want is LifeStrategy Moderate Growth.

If you are going to hold a balanced fund in a taxable account, I would prefer the LifeStrategy fund (or, still better, a target retirement fund, which changes allocation as you need it); an active fund such as Global Wellington is likely to be tax-inefficient.
Thanks for the correction, and yes not in a taxable account for Global Wellington.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

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