Personal Investments • Re: Last Three Years of Putting Into Tax Deferred Amounts - Good Plan?

Even though the ‘house of Windsor’ has traditionally been a value fund, you might be surprised if you look under the hood of WVNAX to find the top four holdings: Microsoft, Apple, Amazon, Alphabet.

I have sister fund Wellington in my Roth for just the reason you mentioned, high turnover and reliable performance in a tax-preferred account, plus the reason that higher bond income from a balanced fund creates more shares since I can no longer contribute to the Roth, only convert.

Do you already have a Wellington in your mix?

Thank you Dave.

They bought those tech stocks back in late 2022 when they were value trades. I did the same myself and NetFlix, Amazon, Google etc are all up 50%+ of those lows.

I did look at the Wellington fund but itds 1/3 exposure to bonds is too conservative given I won't tap into these retirement accounts ever. Well so long as the pension holds up!

Thanks again.

I'm curious Dave, did you find any other high turn-over rate value funds which have stable NAV? I'm a bit uncomfortable just splitting the money between two funds, but I couldn't find anything comparable. The Fidelity Magellan fund on paper seems to fit the bill but clearly says its a growth fund.

I have Wellington as 35% of my Roth with the remaining in Total Stock and the MMF. I too plan to never touch the Roth assets. It gives me a good 60-30-10 overall ratio for the Roth account to grow in perpetuity.

Ironically the only other choice I deploy is the STAR fund VGSTX in taxable, but it is also a balanced fund. This was chosen in 1996 before there was a Roth IRA as I had maxed out the 401k and did not want another tax deferred account. It happens to hold both Windsor funds. It is a fund-of-funds, so I picked up a bunch of funds in one package for a cheap minimum when I was much younger. I can still tolerate the ordinary income in taxable as I have space to maintain the zero percent QD/LTCG rate with my CA municipals.

We are both here in CA, so I’m “helping” with your pension, minus the municipals of course!

Statistics: Posted by Hacksawdave — Thu Aug 22, 2024 4:44 pm

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