Always been impressed with this fund

[Scanner]

https://personal.vanguard.com/us/funds/snapshot?FundId=0027&FundIntExt=INT

I check in on this fund from time to time and I have to always say how impressed I am.

10% since it's inception is very impressive considering it's a fund that invests nearly 60% in bonds. That's basically about matching the S&P 500 without the risk/volatility.

It's kind of boring (and you know me and my silver bugging) but I have now ridden REZ for about 6 months up 35% or so. . .I may sell it, take a profit and rest my money in this along with SLV.

[Slug]

It's #1 holding is BP. I think it's well-diversified so that's probably not a big deal, but if it drops a little, this could be a nice entry point.

[scfr]

Who are you and what have you done with the real Scanner???

(This is the fund where my husband & I have our retirement savings BTW ... and I never in a million years would have thought it would be the sort of fund you'd be interested in.)

[creditcardfree]

Nice fund!

[jIM_Ohio]

Vanguard Wellesley Income Fund Investor Shares

pssst wellesley

On another board it seems half the time we discuss funds, someone says forget asset allocation, just remember

pssstt wellesley

[Scanner]

LOL. . .I know, I know. . .I can be a funny bird with my investing sometimes.

Sometimes I am uber-conservative - always really had a big interest in muni bonds. Sometimes I am uber-aggressive - precious metals.

I can remember reading an article in Kiplingers years ago (in the 90's) about Wellsey and how that mix of bonds/stocks is a "magic mixture of pixie dust" - like it's the correct mix of bonds to stocks (60% bonds, 40% corporate stocks) to maximize return while minimizing risk.

I guess someone ran some computer simulation model or something and came out with that "magic formula."

I have always kept my eye on it over the years because of that article. I am opening a SEP-IRA soon and may just lay money there.

[jIM_Ohio]

LOL. . .I know, I know. . .I can be a funny bird with my investing sometimes.

Sometimes I am uber-conservative - always really had a big interest in muni bonds. Sometimes I am uber-aggressive - precious metals.

I can remember reading an article in Kiplingers years ago (in the 90's) about Wellsey and how that mix of bonds/stocks is a "magic mixture of pixie dust" - like it's the correct mix of bonds to stocks (60% bonds, 40% corporate stocks) to maximize return while minimizing risk.

I guess someone ran some computer simulation model or something and came out with that "magic formula."

I have always kept my eye on it over the years because of that article. I am opening a SEP-IRA soon and may just lay money there.

I thought Wellesley was 40-60? as in 40% stocks
as of March 31, the link above shows this fund as 38% stocks

What makes this so effective is that 40-60 is the "first" portfolio coming down from 100% equities where its first deviation is still positive returns.

Meaning if you look at 40-60 portfolio
its average return is about 7%
its deviation is 6.5%
that means +.5% is as likely as 13.5% (7-6.5=.5;7+6.5=13.5)
which means like 75% of the time this fund will have positive returns

a fund at 50-50 or 60-40 or 80-20 or 100 equities has a deviation higher than the average return
for example 100% equities is something like 11% average return with a deviation of about 16

that means -5% is as likely as +27% (11-16=-5;11+16=27)

so 40-60 is that sweet spot for positive returns, with not as much volatility as the higher equity portfolios. I plan to ratchet my portfolio down to 40-60 within 5 years of retirement date.

[Scanner]

Um. . .yeah, that's the "magic pixie dust" I was talking about, LOL - first deviations and such.

[Scanner]

Um. . . yeah, that's the magic pixie dust I was talking about - the 40/60 mix creating first deviation and such.

I totally understand it.

Not.