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Subject:  Re: bond fund vs balanced fund??? Date:  11/21/2001  2:01 PM
Author:  brucedoe Number:  2466 of 36319

You might be interested in buying both Wellington (about 60% stock and 40% bonds) (WELIX) and Wellesley (about 60% bonds and 40% stocks) (I think it is WINIX). Then you will be about 50-50 stocks and bonds. Wellesley is called an income fund so they have lots of dividend paying stocks in their portfolio. Over the long haul you will average about 10% increase in each per year. Wellesley had two down years in the 1990s and neither was big because of the income and the early 1990s had one of the worst bond markets on record (1994). I used to have both of these but made a mistake and got out early last year when it looked like Wellesley was going to have a third down year (they didn't).

Of course you are going to have both dividends and capital gains to pay taxes on. But if you like to watch the grass grow, these two funds are pretty good. Incidentally, this is not a good year for Wellington so it is probably not a bad year to buy in. Wellesley is up nicely, but you might catch the last rise. I believe they have a distribution in December so if you are going to get in this year, you should hop to it to maximize the shares you get. If you don't do it soon, then I would wait until next year when the price will go back down because of the distribution. That way you will get more shares for your money.

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