Search found 37 matches

by tomas123
Wed May 09, 2012 7:06 am
Forum: Personal Investments
Topic: Rate of return you expect from stock portion of portfolio
Replies: 55
Views: 4819

Rate of return you expect from stock portion of portfolio

I've looked through other threads about expected rate of return, but it seems as though most of you answer with the number that you plan for, and not the number that you expect. I'll probably plan for 3% real, or something close to that (I'm still a student, so I haven't started planing all the details), but I'm expecting it to be higher, 5-6% real maybe?

How about you?

Remember, this is only regarding the stock portion of your portfolio.

Edit: In case my post didn't make it clear, I'm asking about real rate of return.
by tomas123
Tue May 08, 2012 7:10 pm
Forum: Personal Finance (Not Investing)
Topic: Money to use in Europe
Replies: 18
Views: 1773

Re: Money to use in Europe

tludwig23 wrote:
Alskar wrote:...The only hitch was the subway in Copenhagen required the PIN number. Be sure your son has the PIN number for his card.
Won't help. It is an entirely different type of card which contains a microchip. Simply having the 4 digit PIN that you might use at an ATM to get a credit card cash advance won't do it. Luckily, this chip-PIN system seems to be mainly limited to public transport in Denmark and Holland and to pay-at-the-pump in France. In all cases, however, you can stand in line and use your credit card the old fashioned way (with a human ticket agent or gas station employee).
Here in Norway many places won't take anything but cards with a microchip, and the ones that do take magnetic stripe cards almost always require a PIN #.
by tomas123
Sat May 05, 2012 6:32 pm
Forum: Personal Finance (Not Investing)
Topic: How long will you live?
Replies: 50
Views: 4911

Re: How long will you live?

My uncle just took the test. Apparently he has 1 more year to live :(
by tomas123
Sat May 05, 2012 3:12 pm
Forum: Personal Finance (Not Investing)
Topic: Could you work for a hedge fund?
Replies: 35
Views: 3102

Re: Could you work for a hedge fund?

Thank you all for the responses.

I'm probably going to take the job. Will be fun to try something new!
by tomas123
Sat May 05, 2012 3:11 pm
Forum: Personal Investments
Topic: Are 20 somethings handicapped bc of inflation and little SS?
Replies: 162
Views: 15586

Re: Are 20 something's screwed bc of inflation and little/no

"To get that enormous lump sum, the 25 year old would have to invest $1,036/month for 40 years at 7% interest."

You've adjusted your future spending and $ needed for retirement for inflation, but not done so for your monthly contributions. Is this intentional?
by tomas123
Fri May 04, 2012 12:40 pm
Forum: Personal Finance (Not Investing)
Topic: Could you work for a hedge fund?
Replies: 35
Views: 3102

Re: Could you work for a hedge fund?

Random Poster wrote:Does the $10K a month include housing? If this is sort of a mini-expat offer, get housing paid (either outright or via a stipend) and, if you are a US citizen, get your taxes grossed-up (and your US and UK taxes prepared at company expense). Would you get paid in USD or Pounds?
I'm norwegian, not american. They'll pay for housing. I'll be paid in pounds, but my 'salary' will be in norwegian kroners. I'll receive the equivalent of 60,000 kroners/month in pounds, which is a little more than $10,000 at the current rate.
by tomas123
Fri May 04, 2012 12:28 pm
Forum: Personal Finance (Not Investing)
Topic: Could you work for a hedge fund?
Replies: 35
Views: 3102

Re: Could you work for a hedge fund?

SSSS wrote:Doing what?
I'll be doing research. They said that I'll do stuff that isn't hard, but it might take time, so they don't want to 'waste' their other employees time by making them do it.


I didn't apply for the job, I was at a career fair and somehow ended up talking to a recruiter for the company, who offered me the job a few days later.
by tomas123
Fri May 04, 2012 12:11 pm
Forum: Personal Finance (Not Investing)
Topic: Could you work for a hedge fund?
Replies: 35
Views: 3102

Could you work for a hedge fund?

I study geophysics, but have been offered a summer internship at a large hedge fund. I've also received several offers from oil & gas companies, so it's not like the hedge fund is my only option. Initially I didn't even consider working for the hedge fund, but they offered me $10,000 a month :moneybag :confused versus the oil companies offering between $3000 - $5000. Haha, I feel like I'm being lured into working for 'the bad guys'. I honestly don't know why they even offered me a job... I don't know anything about economics. I even had to google 'hedge fund' to find out exactly what they do. So, could you ever work for a hedge fund? Edit: Maybe I should add that I'll be working in London, for an american hedge fund, if I take the job. ...
by tomas123
Wed May 02, 2012 11:20 am
Forum: Personal Investments
Topic: tips on saving for 4 month-old daughter's future wedding
Replies: 85
Views: 10908

Re: tips on saving for 4 month-old daughter's future wedding

Is it still common for parents to pay for their childrens weddding in the U.S? If so, do the parents on each side pay 50/50, or how does that work?
by tomas123
Wed May 02, 2012 11:13 am
Forum: Investing - Theory, News & General
Topic: ETFs v. Mutual Funds
Replies: 13
Views: 1605

Re: ETFs v. Mutual Funds

ETFs are really great for me, because investing in foreign mutual funds (I'm not american) is often not legal, and is at best a complicated tax affair. ETFs on the other hand are treated as stocks, fully legal, and they make tax reporting as easy as, well, owning any other stock.
by tomas123
Wed Apr 25, 2012 3:53 pm
Forum: Personal Consumer Issues
Topic: Geology and geophysics - college
Replies: 22
Views: 2980

Re: Geology and geophysics - college

Thanks for answering.

Looking through some data from BLS, only 19% of geoscientists work in the oil & gas sector.

From payscale:

Geological Exploration Services: $30,410 - $65,436
Consultancy: $38,308 - $87,860
Gold Mining: $40,851 - $80,549
Engineering Consulting: $34,527 - $65,573
Environmental Consulting: $35,850 - $64,131
Oil & Gas Exploration: $45,928 - $162,941


If the oil & gas sector pays 2-3-4-5 times better than the other industries geologists can work for, why do only 19% work in the oil & gas sector?
by tomas123
Wed Apr 25, 2012 2:40 pm
Forum: Personal Consumer Issues
Topic: Geology and geophysics - college
Replies: 22
Views: 2980

Geology and geophysics - college

I'm getting my masters degree in geophysics, in Norway (I'm norwegian). In norway geophysics and geolgy are looked upon as great mayors, considering that 3/4 of all graduates end up in the oil & gas sector and make good money and have great careers (the remaining 1/4 choose not to be in the petroleum sector - there simply aren't enough geologist or geophysicists). I was recently in the U.S visiting some friends, and at a party they got into the subject of how stupid many college students are to mayor in things that won't give them jobs - and apparently they consider geology and geophysics to be amongst those mayors. I've never thought about it before, I've simply assumed geology and geophysics mayors have outstanding job prospects in th...
by tomas123
Mon Mar 05, 2012 12:26 pm
Forum: Personal Consumer Issues
Topic: Is Tahitian over water bungalow vacation worth the price?
Replies: 90
Views: 10087

Re: Is $10k too much to spend on a honeymoon?

The Wizard wrote:
tomas123 wrote:So many people on this board seem unhealthily obsessed with saving money...
Are you SURE you know what you're talking about here???
I think you misunderstood me. I was referring to some of the answers you received, not your posts.
by tomas123
Mon Mar 05, 2012 12:04 pm
Forum: Personal Consumer Issues
Topic: Is Tahitian over water bungalow vacation worth the price?
Replies: 90
Views: 10087

Re: Is $10k too much to spend on a honeymoon?

The Wizard wrote:
tomas123 wrote:So many people on this board seem unhealthily obsessed with saving money...
Are you SURE you know what you're talking about here???
Yes.
by tomas123
Mon Mar 05, 2012 11:33 am
Forum: Personal Consumer Issues
Topic: Is Tahitian over water bungalow vacation worth the price?
Replies: 90
Views: 10087

Re: Is $10k too much to spend on a honeymoon?

So many people on this board seem unhealthily obsessed with saving money, or should I say money in general.

It's impossible to answer your question. As with all money, you want to use it in a way that gives you most value, and no one here can say if a $10k honeymoon, $5k honeymoon + $5k vacation at another time, $3k honeymoon + $3k vacation at another time + $2k vacation at yet another time+ $2k gorgeous TV, having a cheap honeymoon and saving the rest, or some other combo, will give you most value...
by tomas123
Tue Jan 24, 2012 1:20 pm
Forum: Investing - Theory, News & General
Topic: Why are US investors so fascinated with stocks?
Replies: 40
Views: 4946

Re: Why are US investors so fascinated with stocks?

In the country I live in, most people don't invest for retirement. They "invest" for upcoming things such as a new TV, vacation, boat, car, etc. Bonds are frequently used for this. If they do invest in stocks, it's usually due to a company stock program at work.

In poor countries people don't have money to invest. In other rich countries, people rely on company pensions + state pensions during retirement.
by tomas123
Fri Dec 16, 2011 4:22 pm
Forum: Investing - Theory, News & General
Topic: Would you still invest if you had a pension plan?
Replies: 52
Views: 5668

Would you still invest if you had a pension plan?

As the subject title reads, would you still invest in stocks & bonds if you had a good pension plan (50-60% of your mid-career salary) ?

Edit: I can also add that I'm asking because there was an article in my local paper today about what percent of my countrymen save for retirement beyond paying down a mortgage. The figure was 3%.
by tomas123
Fri Dec 16, 2011 12:45 pm
Forum: Personal Consumer Issues
Topic: 112 hours in a week to live life
Replies: 52
Views: 6058

Re: 112 hours in a week to live life

There are 112 waking hours in a week if you sleep 8 hours a night. Mathematically, how do people fit everything in? 40 hours a week at your job. 25 hours a week with your spouse. (I did a little tracking and this is about what it comes down to for my (future) spouse to be happy.) 15 hours of exercise (including prep, commute, cleaning up). 5 hours of hygiene. 15 hours driving. That leaves 12 hours to visit your family, keep up with your friends, fix things around the house, take care of other obligations that come up (a friend's wedding, an emergency trip to the hospital, hosting friends from out of town, hosting parties..) And that's without even considering children or the fact that one might actually like to have some free time in one's...
by tomas123
Mon Nov 14, 2011 5:04 pm
Forum: Personal Consumer Issues
Topic: Hockey fans -- do you like shoot-outs?
Replies: 57
Views: 5845

Re: Hockey fans -- do you like shoot-outs?

I think they're ok, but I think 5 minutes is too little for overtime. I'd rather have them play another full period before the shoot out.
by tomas123
Sun Nov 13, 2011 5:42 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your gross annual income do you save?
Replies: 59
Views: 9680

Re: What percentage of your gross annual income do you save?

Many of you are saving 30%+, why? Early retirement? Late start? .. Your question to us is "why save"? My question to you is "why spend"? We have everything we need, and most of what we want. Buying things isn't going to make us happier or extend our lives. I never asked "why save", I asked why save such a large percentage of your income. And your question "why spend". That's why you're saving, isn't it? So that you can spend money later in life? For most people a savings rate of 30%+ would lead to more money during retirement than the rest of their lives, unless they missed out on many years of saving, planing on retiring early, have an income that won't stay as high in the future, want to leave a la...
by tomas123
Sun Nov 13, 2011 2:22 pm
Forum: Personal Finance (Not Investing)
Topic: What percentage of your gross annual income do you save?
Replies: 59
Views: 9680

Re: What percentage of your gross annual income do you save?

Many of you are saving 30%+, why? Early retirement? Late start? .. Your question to us is "why save"? My question to you is "why spend"? We have everything we need, and most of what we want. Buying things isn't going to make us happier or extend our lives. I never asked "why save", I asked why save such a large percentage of your income. And your question "why spend". That's why you're saving, isn't it? So that you can spend money later in life? For most people a savings rate of 30%+ would lead to more money during retirement than the rest of their lives, unless they missed out on many years of saving, planing on retiring early, have an income that won't stay as high in the future, want to leave a la...
by tomas123
Sun Nov 13, 2011 11:54 am
Forum: Personal Finance (Not Investing)
Topic: What percentage of your gross annual income do you save?
Replies: 59
Views: 9680

Re: What percentage of your gross annual income do you save?

Many of you are saving 30%+, why? Early retirement? Late start? ..
by tomas123
Sun Oct 30, 2011 2:50 pm
Forum: Investing - Theory, News & General
Topic: Is reading the boglehead recommended books really necessary?
Replies: 49
Views: 3633

Re: Is reading the boglehead recommended books really necess

bertilak wrote:Tomas,

Can I talk you into reading 100 pages? You can get through this in an hour or two, probably less time than you have already spent on bogleheads.org, and you can keep it handy for future reference. It really is ALL you need to know for now, but I think it is stuff you DO need to know.

To tell you the truth, I wish I knew this much when I was your age -- I'd simply be rolling in it by now! :moneybag

Investing Made Simple: Index Fund Investing and ETF Investing Explained in 100 Pages or Less by Mike Piper
Alright - since it's a quick read. I'll read it during christmas break, I'm too busy with final exams now.
by tomas123
Sun Oct 30, 2011 2:16 pm
Forum: Investing - Theory, News & General
Topic: Is reading the boglehead recommended books really necessary?
Replies: 49
Views: 3633

Re: Is reading the boglehead recommended books really necess

Many interesting replies, thank you.

It's not that I don't ever want to read any of the books, but it doesn't seem necessary for me to do so at 20. I mean, I'm a student - I don't file a tax return, I hardly have any money (about 15K) and it's 4 + years until I'll be working (I'm doing a 5 year MSc in petroleum engineering). I don't consider it valuable for me to read the books until I have income and more money.

And there's a difference between not wanting to learn and not wanting to read specific books - the internet is full of valuable information (such as this site).

Have a nice day! :sharebeer
by tomas123
Sat Oct 29, 2011 9:24 am
Forum: Investing - Theory, News & General
Topic: Is reading the boglehead recommended books really necessary?
Replies: 49
Views: 3633

Is reading the boglehead recommended books really necessary?

Don't get me wrong, I'm sure there's tons of interesting facts, charts and ideas in these books, but are they a needed prerequisite for index investing? My uncle is an avid indexer, and tells me I simply have to read some of the books often recommended to newcomers here. He says I shouldn't invest before I read them (I'm 20 - just so that this advice makes sense). Me, on the other hand, don't want to, and have started investing. For me, this is enough: M = market return, I = average index fund return, before expenses A = average return for all active managed mutual funds, before expenses, EA = expenses for active mutual funds, EI = expenses for index funds. EA > EI M = I - EI M = A - EA I - EI > A - EA Meaning, my best bet is index funds. W...
by tomas123
Tue Oct 25, 2011 1:43 pm
Forum: Investing - Theory, News & General
Topic: Emerging Markets 32% of World Stock Market?
Replies: 18
Views: 2825

Re: Emerging Markets 32% of World Stock Market?

BTW, that probably not what Mark Mobius said. I've just googled and found a transcript of his interview. In the transcript, he recommends to have ~30+% in EM. That is not the same as to say that EM is 30% of World Stock. From the interview: " So what weightage would you allot to emerging market stocks in your portfolio right now, and how different will that be this year compared to about two years ago? It really should be about 32% of a portfolio for equities. So, I would say 32% would be all right. It is important not to look at the index because the index weightings show like 10 or 12, but the reality is that emerging markets as a percent of the world market capitalisation are over 32%." http://articles.economictimes.indiatimes...
by tomas123
Thu Oct 13, 2011 12:58 pm
Forum: Investing - Theory, News & General
Topic: A few tax questions
Replies: 1
Views: 374

A few tax questions

1. When a fund has a turn over ratio, does the fund pay capital gains taxes and then pass the costs on to you? Or does the fund inform the IRS of the amount of capital gains, who then make you liable?

2. I'm not an american citizen, but my future career (I'm a student) will give me many opportunities in America (I'm studying petroleum engineering). If I move to the U.S, how will the ETF shares I obtained while I was not living in the U.S be taxed?
by tomas123
Sat Jul 30, 2011 4:26 am
Forum: Personal Finance (Not Investing)
Topic: Advice for Sister: Paying for Volunteer Work Abroad
Replies: 14
Views: 2145

Wow, I feel sorry for you if you think that she is "irresponsible" for using a few grand to have an experience of a lifetime. I, for one, am also enjoying my life before I retire.

But hey.. Maybe she could do it when she's 70 and retired? :roll:
by tomas123
Sun Jul 24, 2011 4:23 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

Look into hedging currency risk with futures. In any case, you may be exchanging one form of risk for a far worse one (country-specific). Cliff Asness and his colleagues at AQR did a great study on this issue. They argue that over the short-run international diversification may not help that much, but over decade-long periods it has a significant effect in reducing risk (mainly by diversifying away the risk that your country experiences a Japanese-style decades-long bear market) Wouldn't this also make investing a substantial % in U.S equities/bonds a bad choice? Arguably. But a large country like the U.S. has much more going for it than a small one in terms of stability . There are a lot of positive externalities to scale, such as wide la...
by tomas123
Sun Jul 24, 2011 2:08 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

exeunt wrote:Look into hedging currency risk with futures. In any case, you may be exchanging one form of risk for a far worse one (country-specific). Cliff Asness and his colleagues at AQR did a great study on this issue. They argue that over the short-run international diversification may not help that much, but over decade-long periods it has a significant effect in reducing risk (mainly by diversifying away the risk that your country experiences a Japanese-style decades-long bear market)
Wouldn't this also make investing a substantial % in U.S equities/bonds a bad choice?
by tomas123
Sun Jul 24, 2011 1:41 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

exeunt wrote:Why overweight the Norwegian stock market? If anything, your current allocation is far more rational. Are there preferential tax treatments of Norwegian stock holdings?
No preferential treatment.

I'd like at least 1/3 of my investments to be in norwegian kroner.. You consider that bad?

Thanks for the feedback!
by tomas123
Sun Jul 24, 2011 1:39 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

tomas123 wrote; My biggest concern, as Larryswedroe pointed out, is that I won't have the cash to rebalance often enough Not sure what you mean here but at your age and assuming you have a long investment time horizon then I wouldn't look to rebalance these stocks at all. What you will find is that a minority of the stocks will perform extremely well whilst the majority just do OK ( a lot of the rise of any index over time is skewed towards big winners). You cannot know which these will be beforehand so best to leave the portfolio alone once established (i.e. LTBH). Also any stock rebalancing will incur transaction costs. TW Sorry, I guess I didn't mean "rebalance". I mean I'm worried that I'll miss out on profit because I'll be ...
by tomas123
Sun Jul 24, 2011 1:06 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

Thanks for the replies, I appreciate it.

The top holding is the oil & gas company Statoil, which is almost 20% of the fund/market. The top 3 holdings combine as almost 40% of the fund/market.

As some of you have mentioned, I think I might be better off simply buying single stock and investing an equal amount in each.

My biggest concern, as Larryswedroe pointed out, is that I won't have the cash to rebalance often enough. As a student my income and expenses are very cyclical.

I've read so much negative about owning individual stock that I'm a little wary about purchasing them for myself. But you think they make sense under the circumstances?
by tomas123
Sat Jul 23, 2011 5:06 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

I'm thinking that I'll have 1/3 invested in VTI, 1/3 in VXUS and 1/3 on Oslo bors.
by tomas123
Sat Jul 23, 2011 4:10 pm
Forum: Personal Investments
Topic: Individual stocks
Replies: 16
Views: 1887

Individual stocks

Hi!

I'm a 20 year old college student from Norway looking to invest some of my savings in the Norwegian stock market. My original thought was to invest in an index fund covering the whole oslo bors market, but seeing as the cheapest index fund has an expense ratio of 0.32% and top 10 holdings make up 72% of Oslo bors, I'm reassessing where to put my money. I could simply buy those 10 stocks and not incur any fees. Is this a bad idea?

I already own about 6.5k of VTI and 6.5K of VXUS.

Thanks