Wellington/Wellesley diversification help

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Coachrhino11
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Wellington/Wellesley diversification help

Post by Coachrhino11 » Mon Sep 11, 2017 5:37 am

My wife has a Roth with Vanguard and we have most of her money in Wellington with a few grand in Wellesley just so we're not closed out one day. She's 41 this week. My question is I'd like to expand a little outside of Wellington. I was thinking Health Care fund, but at 214 per share that's absurd. Would like a little higher return if possible. Also trying to minimize loss as much as possible. My Roth is mainly with T. Rowe Price Capital Appreciation Fund, which has been fantastic and is now closed to new investors.

maj
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Re: Wellington/Wellesley diversification help

Post by maj » Mon Sep 11, 2017 7:13 am

This quarter Vanguard will introduce Global Wellington Fund and Global Wellesley Fund.
Why not take a look at these when offered?
peace

dbr
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Re: Wellington/Wellesley diversification help

Post by dbr » Mon Sep 11, 2017 8:37 am

Coachrhino11 wrote:
Mon Sep 11, 2017 5:37 am
My wife has a Roth with Vanguard and we have most of her money in Wellington with a few grand in Wellesley just so we're not closed out one day. She's 41 this week. My question is I'd like to expand a little outside of Wellington. I was thinking Health Care fund, but at 214 per share that's absurd. Would like a little higher return if possible. Also trying to minimize loss as much as possible. My Roth is mainly with T. Rowe Price Capital Appreciation Fund, which has been fantastic and is now closed to new investors.
More return and minimizing loss are contradictory ambitions. Wellington is already a pretty popular compromise between the two.

A lot of people think a three fund approach of domestic and international stocks and a bond fund is a very diverse low cost approach that allows the investor to select the trade-off of risk and return that suits objectives.

If you want to move to more risk and return and to add international you could just buy some of an international stock fund.

Coachrhino11
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Re: Wellington/Wellesley diversification help

Post by Coachrhino11 » Mon Sep 11, 2017 11:33 am

maj wrote:
Mon Sep 11, 2017 7:13 am
This quarter Vanguard will introduce Global Wellington Fund and Global Wellesley Fund.
Why not take a look at these when offered?
peace
Interesting,definitely take a look. Thanks

Coachrhino11
Posts: 130
Joined: Mon Aug 28, 2017 12:02 pm

Re: Wellington/Wellesley diversification help

Post by Coachrhino11 » Mon Sep 11, 2017 11:37 am

dbr wrote:
Mon Sep 11, 2017 8:37 am
Coachrhino11 wrote:
Mon Sep 11, 2017 5:37 am
My wife has a Roth with Vanguard and we have most of her money in Wellington with a few grand in Wellesley just so we're not closed out one day. She's 41 this week. My question is I'd like to expand a little outside of Wellington. I was thinking Health Care fund, but at 214 per share that's absurd. Would like a little higher return if possible. Also trying to minimize loss as much as possible. My Roth is mainly with T. Rowe Price Capital Appreciation Fund, which has been fantastic and is now closed to new investors.
More return and minimizing loss are contradictory ambitions. Wellington is already a pretty popular compromise between the two.

A lot of people think a three fund approach of domestic and international stocks and a bond fund is a very diverse low cost approach that allows the investor to select the trade-off of risk and return that suits objectives.

If you want to move to more risk and return and to add international you could just buy some of an international stock fund.
Yeah, I know. I think we'd all love to have more return and lower risk. I feel like overall Wellington has treated us very well, but I'm trying to get a little more return without being greedy. I like keeping Wellington as foundation and core and build some around it. For whatever reason I've never been too fond of international stock.

livesoft
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Re: Wellington/Wellesley diversification help

Post by livesoft » Mon Sep 11, 2017 11:46 am

What is your desired Asset Allocation Plan?
Without one, you will just be collecting a bunch of funds.
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mhalley
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Re: Wellington/Wellesley diversification help

Post by mhalley » Mon Sep 11, 2017 11:49 am

The price per share means nothing, not something to take into account when deciding on whether to buy a fund. I would say the goto for wanting more return would be small cap value. Ymmv.

lazydavid
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Re: Wellington/Wellesley diversification help

Post by lazydavid » Mon Sep 11, 2017 11:59 am

Coachrhino11 wrote:
Mon Sep 11, 2017 5:37 am
I was thinking Health Care fund, but at 214 per share that's absurd.
What possible bearing does the NAV of any particular fund have on its desirability? It could be $214k per share, and that wouldn't impact your ability to invest $5k in it, in any way whatsoever.

dbr
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Re: Wellington/Wellesley diversification help

Post by dbr » Mon Sep 11, 2017 12:31 pm

livesoft wrote:
Mon Sep 11, 2017 11:46 am
What is your desired Asset Allocation Plan?
Without one, you will just be collecting a bunch of funds.
Exactly. One reason I always come back to the three fund portfolio is that it is all about asset allocation and not trying to pick funds. I tend, perhaps irrationally, to develop a negative reaction to Wellesley for one because it sniffs a little too much of trying to pick a fund rather than focus on asset allocation.

dbr
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Re: Wellington/Wellesley diversification help

Post by dbr » Mon Sep 11, 2017 12:35 pm

mhalley wrote:
Mon Sep 11, 2017 11:49 am
The price per share means nothing, not something to take into account when deciding on whether to buy a fund. I would say the goto for wanting more return would be small cap value. Ymmv.
I was thinking of suggesting the same thing just to make a point. But actually adding any reasonable choice of stock funds would increase the expected return but at increased risk. It might be an argument that SCV with the bonds in Wellesley has a little bit of the "Larry" portfolio flavor, but I think trying on that argument is getting way too subtle.

sschullo
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Re: Wellington/Wellesley diversification help

Post by sschullo » Mon Sep 11, 2017 12:58 pm

Coachrhino11 wrote:
Mon Sep 11, 2017 11:33 am
maj wrote:
Mon Sep 11, 2017 7:13 am
This quarter Vanguard will introduce Global Wellington Fund and Global Wellesley Fund.
Why not take a look at these when offered?
peace
Interesting, definitely take a look. Thanks
+2,
will also look into Global Wellesley Fund. Thanks!
Public School K-12 Educators: "Ask NOT what your annuity sales person can do for you, ask what you can do to be a Do-It-Yourselfer (DIY)."

dbr
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Re: Wellington/Wellesley diversification help

Post by dbr » Mon Sep 11, 2017 1:08 pm

sschullo wrote:
Mon Sep 11, 2017 12:58 pm
Coachrhino11 wrote:
Mon Sep 11, 2017 11:33 am
maj wrote:
Mon Sep 11, 2017 7:13 am
This quarter Vanguard will introduce Global Wellington Fund and Global Wellesley Fund.
Why not take a look at these when offered?
peace
Interesting, definitely take a look. Thanks
+2,
will also look into Global Wellesley Fund. Thanks!
Are people assuming that would somehow address the objective in the OP of looking for more expected return (and/or less risk)? The OP did say he was not enthusiastic for international investing though the stated objective of diversification would indicate international as an obvious possibility.

Coachrhino11
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Re: Wellington/Wellesley diversification help

Post by Coachrhino11 » Mon Sep 11, 2017 8:06 pm

lazydavid wrote:
Mon Sep 11, 2017 11:59 am
Coachrhino11 wrote:
Mon Sep 11, 2017 5:37 am
I was thinking Health Care fund, but at 214 per share that's absurd.
What possible bearing does the NAV of any particular fund have on its desirability? It could be $214k per share, and that wouldn't impact your ability to invest $5k in it, in any way whatsoever.
Lol, well...shows what I know.

Coachrhino11
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Re: Wellington/Wellesley diversification help

Post by Coachrhino11 » Mon Sep 11, 2017 8:20 pm

livesoft wrote:
Mon Sep 11, 2017 11:46 am
What is your desired Asset Allocation Plan?
Without one, you will just be collecting a bunch of funds.
70/30 or 65/35 most likely. We started with Star fund years ago and I now wonder if we should have just stayed course vs. Wellington. I bought Wellington based on nice balance, low fees, been around forever and not too bad during bad years even though I'm very aware past performance doesn't guarantee future.

wassabi
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Re: Wellington/Wellesley diversification help

Post by wassabi » Tue Sep 12, 2017 7:09 am

livesoft wrote:
Mon Sep 11, 2017 11:46 am
What is your desired Asset Allocation Plan?
Without one, you will just be collecting a bunch of funds.
Exactly.

OP, figure out your desired asset allocation, pick the funds that will deliver that allocation, and then don't touch anything for a long time. It's easy to overthink your situation and especially to tinker with things. That's why many people here recommend writing and not deviating from an investment plan.

Coachrhino11
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Re: Wellington/Wellesley diversification help

Post by Coachrhino11 » Tue Sep 12, 2017 8:12 am

wassabi wrote:
Tue Sep 12, 2017 7:09 am
livesoft wrote:
Mon Sep 11, 2017 11:46 am
What is your desired Asset Allocation Plan?
Without one, you will just be collecting a bunch of funds.
Exactly.

OP, figure out your desired asset allocation, pick the funds that will deliver that allocation, and then don't touch anything for a long time. It's easy to overthink your situation and especially to tinker with things. That's why many people here recommend writing and not deviating from an investment plan.
Well, to be honest I think Wellington after looking has pretty close to AA. I might hold that and add small percentage of something else to bring stock up 5%-7% or so.

livesoft
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Re: Wellington/Wellesley diversification help

Post by livesoft » Tue Sep 12, 2017 8:38 am

You only mentioned Roth IRAs in this thread. Are the two Roth IRAs the only investment accounts that you have?

A Target Retirement fund with between a 65/35 and 70/30 asset allocation would be more diversified and certainly has performed better than W recently.
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Coachrhino11
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Re: Wellington/Wellesley diversification help

Post by Coachrhino11 » Tue Sep 12, 2017 11:36 am

livesoft wrote:
Tue Sep 12, 2017 8:38 am
You only mentioned Roth IRAs in this thread. Are the two Roth IRAs the only investment accounts that you have?

A Target Retirement fund with between a 65/35 and 70/30 asset allocation would be more diversified and certainly has performed better than W recently.
No, wife has 403b and I have pension. Wife has 70/30 AA through work. Investco S&P 500 and Vanguard small cap plus Fidelity bond index. She has no Vanguard large core holdings available for whatever reason. Company does 4.5%-5% of her salary and she adds $200 month currently until we are debt free.

lomarica01
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Re: Wellington/Wellesley diversification help

Post by lomarica01 » Wed Sep 13, 2017 11:58 am

the vanguard health fund has been the best investment I have ever made and as pointed out, the share price has no bearing on whether you should invest in the fund/stock or not

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