Choice of Income Fund

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
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.

User avatar
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
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

User avatar
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".

Post Reply