Oil services and equipment picking some steam

Today was a sad day on most markets, but my portfolio rose 0.3% thanks to IEZ oil services ETF which rose 3,6%. I thought about moving my emerging markets ETF money to IEZ. But because i want reduce my trading, i wont sell and just take a bit longer sight on emerging makrkets. IEZ looks tempting but i will wait for my nex timed purchase in september and think if that still seems to be the right move(i must stick to my plan)

Emerging markets and brazil are the only ones loosing value but my other investments are holding well or gaining a bit value.

This might be good opportunitu to also buy some ETFs with inverse makert return but i have chosen not to use them in my strategy and rather time my purchases better.

Tomorrow i will move most of my fixed income savings to seligson AAA money market fund.

Calculating fixed income percentage

So today i continue my theme of fixed income and tell you my way of finding out percentage of fixed income to portfolio. Following calculations only give you an average so you still want to have more in fixed income in uncertain timesa and less when we are in bull market(markets going up for long term).

First you should plan how much on average you want to save from your sallary. I would safe at least 10% but that is for you to decide. Helping you to figure required numbers , there are investing calculators like this. So basically you just put the years when you want to have certain amount of money and monthl, amount of monthly investments, desired yearly return rate and you then get future amount of your investments. So play with those numbers until you get what you want. Average yerly return is somewhere between index returns of stockmarket and banks interest rates. I got 14% as my average yearly return which is high but i like a challenge :)

In following picture i will show you how to find out fixed income percentage using that number that you got from the calculator. You also want to have rough estimates of how much is yearly return rate of stocks and funds and fixed income.
And following calculations give you on an average so you still want to put more money to fixed income if economy is uncertain.

Fixed income and it's part imy investing strategy

I have not talked much about fixed income part of my portfolio but no plan to fix that. The reason why everyone should have fixed income, is to buffer the losses of stock market in uncertain economic times. Fixed income includes bonds, bank interes rates and other types of investment that you know you get fairly constant rate of return.
Because of young my age i will only have 50% or less of my portfolio in fixed income but when retirement comes more relevant, i will switch most of my money on fixed income.

Currenty i have only one asset in fixed income, a banck interrest rate linked to EURIBOR 12 month(365) currently yielding about 4.7% before tax. But after tax that only does about 3.4%. And that is the reason i will switch most of cash reserve to Seligson AAA money market fund which invest money to short(3 month) bank interest rates. So basically i just have to pay tax when i sell this fund and management costs are 0.18%/a. That fund also does not have surrender charge or buy-in-fee. Other benefit is the diversification to different highest rated finnish banks.
link to seligson