Wellington vs my idea what do you think of it?

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rec7
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Wellington vs my idea what do you think of it?

Post by rec7 »

My idea is
65% in these two funds split up as follows
66% Vanguard Total Stock Market Index Fund Investor Shares
33% Vanguard Total International Stock Index Fund Investor Shares
35% of the total money in a 2% CD

VS.

Vanguard Wellington Fund Investor Shares

Will it do as good as the Wellington over the long haul. Is it more or less risky. I have no taxes going either way. Ideas welcomed.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack
investor
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Re: Wellington vs my idea what do you think of it?

Post by investor »

Why mess with a good thing ? Wellington has proven that it works.

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leonard
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Re: Wellington vs my idea what do you think of it?

Post by leonard »

rec7 wrote:My idea is
65% in these two funds split up as follows
66% Vanguard Total Stock Market Index Fund Investor Shares
33% Vanguard Total International Stock Index Fund Investor Shares
35% of the total money in a 2% CD

VS.

Vanguard Wellington Fund Investor Shares

Will it do as good as the Wellington over the long haul. Is it more or less risky. I have no taxes going either way. Ideas welcomed.
Why only these 2 options? Why not the 3 or 4 fund portfolio? Why not TM Balanced? or a combination of balanced funds?

Essentially, you are proposing 2 solutions, and we don't know exactly what problem you are trying to solve.
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
Topic Author
rec7
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Re: Wellington vs my idea what do you think of it?

Post by rec7 »

leonard wrote:
rec7 wrote:My idea is
65% in these two funds split up as follows
66% Vanguard Total Stock Market Index Fund Investor Shares
33% Vanguard Total International Stock Index Fund Investor Shares
35% of the total money in a 2% CD

VS.

Vanguard Wellington Fund Investor Shares

Will it do as good as the Wellington over the long haul. Is it more or less risky. I have no taxes going either way. Ideas welcomed.
Why only these 2 options? Why not the 3 or 4 fund portfolio? Why not TM Balanced? or a combination of balanced funds?

Essentially, you are proposing 2 solutions, and we don't know exactly what problem you are trying to solve.
I am looking for something with no more risk than the wellington and simple to run. I am guessing that interest rates will go up and that I would come out ahead but I don't know.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack
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packet
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Re: Wellington vs my idea what do you think of it?

Post by packet »

I think you're comparing apples to oranges here... for example, Wellington is about 90% North American equities, not 66% and the shear number of equities in the total funds vs Wellington...

:beerCheers,
packet
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hlfo718
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Re: Wellington vs my idea what do you think of it?

Post by hlfo718 »

Didn't rates go down this year since both of my Vang Int IG and Trea are up? Keep saying rates will go up and eventually it will.

Here is my prediction, stocks will go up.
sambb
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Re: Wellington vs my idea what do you think of it?

Post by sambb »

wellington is an actively managed fund, along with thousands of them out there. I'm not a fan, but that is just an opinion. I don't see how active management is better than the indexed choices available, despite past results. Some funds do beat their benchmarks, however. It is not the majority, and it can change anytime.
gwrvmd
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Re: Wellington vs my idea what do you think of it?

Post by gwrvmd »

Packet: Wellington is 65% stocks and 35% bonds. It never varies much from that allocation. Currently it is 64.5% stocks...............Gordon
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Toons
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Re: Wellington vs my idea what do you think of it?

Post by Toons »

Will it matter a whole lot 30 years from now? :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
tibbitts
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Re: Wellington vs my idea what do you think of it?

Post by tibbitts »

rec7 wrote: Will it do as good as the Wellington over the long haul.
Admittedly hijacking this thread, but... why do so many forum members use the term "the Wellington", but nobody uses "the Explorer" or "the Primecap"? "The Wellington" sounds more like a hotel than a fund, no?
Dandy
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Re: Wellington vs my idea what do you think of it?

Post by Dandy »

I like a bit more diversity on the fixed income side. Perhaps, 1/3 CDs (more than one), 1/3 Short Term bond Index, 1/3+ Total Bond Market.
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packet
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Re: Wellington vs my idea what do you think of it?

Post by packet »

gwrvmd wrote:Packet: Wellington is 65% stocks and 35% bonds. It never varies much from that allocation. Currently it is 64.5% stocks...............Gordon
Right... but OP is saying 33% international... Wellington is only ~10% ... very different.

Thus, doing the math, OP is ~43% US equities, ~21% international equities, and 35% in a CD.
Wellington is ~58.5% US equities, ~6.5% international equities, and 35% (US I believe) bonds.

The proposed is tripling the international bet ...

:beerCheers,
packet
First round’s on me.
Snowjob
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Re: Wellington vs my idea what do you think of it?

Post by Snowjob »

And adding small and mid cap exposure which wellington doesnt have much of.

Personally, the more and more I learn and experience in finance and in life the more I'm inclined to keep it as simple as possible. Just go wellington and forget about it
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Re: Wellington vs my idea what do you think of it?

Post by investor »

Snowjob wrote:And adding small and mid cap exposure which wellington doesnt have much of.

Personally, the more and more I learn and experience in finance and in life the more I'm inclined to keep it as simple as possible. Just go wellington and forget about it


AMEN
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Twins Fan
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Re: Wellington vs my idea what do you think of it?

Post by Twins Fan »

rec7 wrote:I am looking for something with no more risk than the wellington and simple to run. I am guessing that interest rates will go up and that I would come out ahead but I don't know.
Nothing fits what you're looking for better than Wellington. What matches it's risk and is simpler to run than the fund itself? :wink:

No need to reinvent the wheel, or guess about interest rates. Unless you think you can out guess the folks that run Wellington?? I would guess they know more than you and I about all this stuff. Keep it simple... just use Wellington.

How do you plan to contribute, add to, rebalance, and all out of the 35% in a CD also? Any benefit there could be wiped out quickly if you have to break CDs early and all.
jfave33
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Re: Wellington vs my idea what do you think of it?

Post by jfave33 »

I looked into doing something that was similar to wellington a while back and decided in the end to just buy wellington! I came to the conclusion that if you want to benchmark against a specific fund there is nothing better than to invest in that fund.
leonard
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Re: Wellington vs my idea what do you think of it?

Post by leonard »

rec7 wrote:
leonard wrote:
rec7 wrote:My idea is
65% in these two funds split up as follows
66% Vanguard Total Stock Market Index Fund Investor Shares
33% Vanguard Total International Stock Index Fund Investor Shares
35% of the total money in a 2% CD

VS.

Vanguard Wellington Fund Investor Shares

Will it do as good as the Wellington over the long haul. Is it more or less risky. I have no taxes going either way. Ideas welcomed.
Why only these 2 options? Why not the 3 or 4 fund portfolio? Why not TM Balanced? or a combination of balanced funds?

Essentially, you are proposing 2 solutions, and we don't know exactly what problem you are trying to solve.
I am looking for something with no more risk than the wellington and simple to run. I am guessing that interest rates will go up and that I would come out ahead but I don't know.
You've been on the forum a long time - I didn't check - but if you haven't done a portfolio review, you should. That's the only real way you are going to get a spot on recommendation. Hypothetical A vs B isn't very useful, as it ignores possibilities C through Z that might meet your unstated needs more precisely.

Let's assume though that simplicity is your most important consideration, even over tax efficiency. How about Target Retirement or a Life Strategy growth in Tax advantaged? Then, depending on taxes, Tax Managed Balanced or TR or Life Strategy in taxable?
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
Topic Author
rec7
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Joined: Tue Oct 28, 2008 7:22 pm

Re: Wellington vs my idea what do you think of it?

Post by rec7 »

leonard wrote:
rec7 wrote:
leonard wrote:
rec7 wrote:My idea is
65% in these two funds split up as follows
66% Vanguard Total Stock Market Index Fund Investor Shares
33% Vanguard Total International Stock Index Fund Investor Shares
35% of the total money in a 2% CD

VS.

Vanguard Wellington Fund Investor Shares

Will it do as good as the Wellington over the long haul. Is it more or less risky. I have no taxes going either way. Ideas welcomed.
Why only these 2 options? Why not the 3 or 4 fund portfolio? Why not TM Balanced? or a combination of balanced funds?

Essentially, you are proposing 2 solutions, and we don't know exactly what problem you are trying to solve.
I am looking for something with no more risk than the wellington and simple to run. I am guessing that interest rates will go up and that I would come out ahead but I don't know.
You've been on the forum a long time - I didn't check - but if you haven't done a portfolio review, you should. That's the only real way you are going to get a spot on recommendation. Hypothetical A vs B isn't very useful, as it ignores possibilities C through Z that might meet your unstated needs more precisely.

Let's assume though that simplicity is your most important consideration, even over tax efficiency. How about Target Retirement or a Life Strategy growth in Tax advantaged? Then, depending on taxes, Tax Managed Balanced or TR or Life Strategy in taxable?
Life Strategy looks good.
Disclaimer: You might lose money doing anything I say. Although that was not my intent. | Favorite song: Sometimes He Whispers Jay Parrack
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Re: Wellington vs my idea what do you think of it?

Post by dbCooperAir »

tibbitts wrote:
rec7 wrote: Will it do as good as the Wellington over the long haul.
Admittedly hijacking this thread, but... why do so many forum members use the term "the Wellington", but nobody uses "the Explorer" or "the Primecap"? "The Wellington" sounds more like a hotel than a fund, no?
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Lafder
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Re: Wellington vs my idea what do you think of it?

Post by Lafder »

The Wellington is just very different than 65% The Total Stock Market plus 35% The Total Bond Market funds. It is an apples to oranges The Comparison. :)

Wellington Admiral shares has an ER of 0.18, and it is actively managed. It is a cherry picked fund of only 92 different large cap US stocks, and 805 selected bonds. It rebalances for you to maintain the 65/35 ratio.

Total Stock Market Fund Admiral shares has an ER of 0.05 and is an index fund of 3,809 small, mid, and large cap US stocks.

Total Bond Market Fund admiral shares has an ER of 0.07 and is an index fund of 7,654 various bonds.

Either of these options misses International stocks.

It is a matter of personal choice if you think a smaller number of the biggest companies will outperform almost 4000 companies of various sizes, yet all extremely successful. If one large company in the Wellington account fails, it is a much larger % of your portfolio.

The expense ratio is different, the philosophy is different. Only time will tell which is the winning strategy of the future. So go with what feels best to you. My parents just use Wellesley which is the mostly bond version of Wellington. Others advocate only using large cap as a strategy, some advocate a small cap tilt. Only time will tell......

Personally I keep it simple with a 3 fund portfolio.

lafder
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