Choice of Income Fund

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grobertj
Posts: 14
Joined: Fri May 15, 2020 1:02 pm
Location: Greensboro, NC

Choice of Income Fund

Post by grobertj » Tue May 26, 2020 6:36 pm

I currently have $2.5M invested in VTINX and $200K as a cash reserve invested in VFIRX. I have another $52K in an Ally savings account which pays 1.25%. Both my wife and I receive Social Security and I need roughly $100K distributions per year from my investments. Previously. I was a invested half Wellington and half in Wellesley (VWIAX). I want to keep the bulk of my investment in a conservative fund. I've researched both VTINX and VWIAX and I don't see any big difference in risk between the 2 funds. However, VWIAX has a 40 year track record of delivering consistent returns of over 4%.

My question is: Should I stay in VTINX or switch to VWIAX or some other fund?
The only constant is change.

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Toons
Posts: 13630
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: Choice of Income Fund

Post by Toons » Tue May 26, 2020 6:40 pm

Retired Here
VWIAX for Me
Sleep Well.
Just my thoughts
I like the 40/60=Income
We own it in Roth Iras
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

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midareff
Posts: 6894
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: Choice of Income Fund

Post by midareff » Tue May 26, 2020 6:52 pm

VWIAX would be my choice too...... 72 years old and starting year 9 of retirement. I have enough, don't need to risk what I do have to try and make more I probably can't use after a lifetime of being how I am. At roughly 31/69 for the Target Fund vs. a basically 40/60 for the Wellesly. While their performance over the short term has been very similar over a longer term the Wellesley is a better choice in my opinion. Additionally, with an SEC of 2.70 for VWIAX vs. 2.07% for the Target Fund it will distribute nearly 30% more dividends... and you did say "Income".

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