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Why buy insurance? | People's value of money is not always linear. Consider an individual with $1000 in the bank. I'm going to look at amounts of debt by orders of magnitude: Now its pretty easy to see a order of magnitude increase in impact from $100 to $1000, and it becomes slightly worse for the $10,000 case due to debt. However, one... |
How to increase my credit score | Get a credit card is NOT the answer. The reason people have a bad (or no) credit score is often because they're new to the country, have just turned 18, have previously fallen into arrears or are just bad with money. Getting a credit card is risky because, if you don't stay on top of your payments, it'll just damage yo... |
What is the best asset allocation for a retirement portfolio, and why? | It's all about risk. These guidelines were all developed based on the risk characteristics of the various asset categories. Bonds are ultra-low-risk, large caps are low-risk (you don't see most big stocks like Coca-Cola going anywhere soon), foreign stocks are medium-risk (subject to additional political risk and curre... |
How can I find a list of self-select stocks & shares ISA providers? | My go-to response whenever anyone asks me this is the Monevator table of platform fees. It looks a little complicated at first, but scroll past the table for a couple of paragraphs of useful info to help narrow down your search. The general tone of the page is geared more towards investors in index funds, but the fees ... |
Why do most banks in Canada charge monthly fee? | Lending isn't profitable when interest rates are this low. Consider what's involved to offer a savings or checking account. The bank must maintain branches with tellers. The bank has to pay rent (or buy and pay property taxes and utilities). The bank has to pay salaries. The bank has to maintain cash so as to make... |
If gold's price implodes then what goes up? | Nothing necessarily has to "benefit." Right now, what primarily drives demand for gold is its perceived use as a hedge against the inflation of fiat currency. I.e. when inflation strikes, the price of gold goes up rapidly. Thus, for a given currency, gold decreasing in price is almost always a signal that the currency ... |
Where I can find S&P 500 stock data history? | I assume you're after a price time series and not a list of S&P 500 constituents? Yahoo Finance is always a reasonable starting point. Code you're after is ^GSPC: https://finance.yahoo.com/quote/%5EGSPC/history?p=^GSPC There's a download data button on the right side. |
How to maximize small business 401k contribution? | I would hire an accountant to help set this up, given the sums of money involved. $53,000 would be the minimum amount of compensation needed to maximize the 401k. The total limit of contributions is the lesser of: 100% of the participant's compensation, or $53,000 ($59,000 including catch-up contributions) for 2015 an... |
Incentive Stock Option (ISO) tax question - more specific this time | I've bought ISO stock over they years -- in NYSE traded companies. Every time I've done so, they've done what's called "sell-to-cover". And the gubmint treats the difference between FMV and purchase price as if it's part of your salary. And for me, they've sold some stock extra to pay estimated taxes. So, if I got t... |
Does home equity grow with the investment put into the house? | Your best bet is to talk with a banker about your specific plans. One of the causes of the housing crash was an 80/20 loan. There you would get a first for 80% of the value of a home and 20% on a HELOC for the rest. This would help the buyer avoid PMI. Editorially, the reason this was popular was because the buyer... |
Is it possible, anywhere in the US for a funding firm to not have a license number showing somewhere? | Well, these can range from loan broker to outright scams. It is pretty typical that loan broker just take some fee in the middle for their service of filling your applications for a bunch of real loan provider companies. Because making a web page costs nothing, a single loan broker could easily have many web pages with... |
New York State - NY Tax on Foreign Sourced Income for NY Non-Resident | For Non-Resident filers, New York taxes New York-sourced income. That includes: real or tangible personal property located in New York State (including certain gains or losses from the sale or exchange of an interest in an entity that owns real property in New York State); services performed in New York State; a bu... |
Exercise a put option when shorting is not possible | You are the one lending yourself the shares to sell;you purchase the stock at market price and sell at the strike price of the option to the put seller when you exercise the option. |
Purchasing options between the bid and ask prices, or even at the bid price or below? | I frequently do this on NADEX, selling out-of-the-money binary calls. NADEX is highly illiquid, and the bid/ask is almost always from the market maker. Out-of-the-money binary calls lose value quickly (NADEX daily options exist for only ~21 hours). If I place an above-ask order, it either gets filled quickly (withi... |
Scam or Real: A woman from Facebook apparently needs my bank account to send money | 100% scam. Run away. If you have already given the bank account, inform the bank and close the account. Else just close the new account opened. Do not contact the scammer or reply back.... Just ignore ... Don't read any of scammer email, they are very convincing in why it's right and why it's not a scam. |
Micro-investing: How to effectively invest frequent small amounts of money in equities? | Compound interest is your friend. For such a low amount of cash, just pop it into savings accounts or deposits. When you reach about 1.500€ buy one very defensive stock that pays high dividends. With deposits, you don't risk anything, with one stock, you can lose 100% of the investment. That's why it's important to buy... |
What is the term for the quantity (high price minus low price) for a stock? | It is known as the range or the price spread of the stock. You can read more about it here http://www.investopedia.com/terms/r/range.asp |
When should I start saving/investing for my retirement? | Here's a good strategy: Open up a Roth IRA at a discount-broker, like TD Ameritrade, invest in no-fee ETF's, tracking an Index, with very low expense ratios (look for around .15%) This way, you won't pay brokers fees whenever you buy shares, and shares are cheap enough to buy casually. This is a good way to start. When... |
How to acquire assets without buying them? | Your question seems to be premised on your personal understanding of economics, and asking that people present to you an explanation of business transactions that is consistent with your own personal worldview. But your premises are flawed, so an accurate answer should not accept them. The basics of trade is that somet... |
Is it ever a good idea to close credit cards? | There's no harm in keeping them open. Like you said, closing the lines will potentially hurt your utilization. The extent of that impact will depend on your particular situation. There are situations where closing a line will have no actual impact on your utilization. If you have 100k of open credit and a debt loa... |
Buy small-cap ETF when you already have large-cap of the same market | Yes, you should own a diverse mix of company sizes to be well diversified. While both will probably get hit in a recession, different economies suit different sized companies very differently in many cases, and this diversity positions you best to not only not miss out in cases where small companies do better out of re... |
How do I get rid of worthless penny stocks if there is no volume (so market/limit orders don't work) and my broker won't buy them from me? | Merrill charges $500 flat fee to (I assume purchase) my untraded or worthless security. In my case, it's an OTC stock whose management used for a microcap scam, which resulted in a class action lawsuit, etc. but the company is still listed on OTC and I'm stuck with 1000s of shares. (No idea about the court decision) |
What is your effective tax rate if you work from home in Montreal for a company in Toronto? | Assuming that you don't own the business, it would seem to apply. The CRA says: If you were a resident of Quebec on December 31, 2016, and you did not have a business with a permanent establishment outside Quebec, your refundable Quebec abatement is 16.5% of the basic federal tax on line 55 of Schedule 1. If you had in... |
Why do grocery stores in the U.S. offer cash back so eagerly? | Cash back from credit cards is handled separately than the rest of the purchase, i.e. interest begins accumulating on that day, and likely at a higher rate, and usually comes out of a lower limit than the credit allotted to that card. Given all these differences, and the obvious revenue-generation situation for the len... |
New to investing — I have $20,000 cash saved, what should I do with it? | Just my 2 cents, I read on the book, The WSJ Financial Guidebook for New Parents, that "the average family spends between $11k and $16k raising their child during his first year". So it might be better for you to make a budget including that cost, then decide how much money you feel safe to invest. |
What is the difference between a bond and a debenture? | Some additional links which explain their differences. But mostly as @bstpierre says, both are very similar and in some cases the terms may be used inter changeably |
Am I considered in debt if I pay a mortgage? | Mortgage is a (secured) debt, a combination of a promissory note, and a security interest providing the mortage holder a secured interest in the property. Yes, you are "in debt". But that depends upon whether you define the term "in debt" as a debt appearing on the balance sheet, or the net of assets - liabilities is l... |
Homeowners: How can you protect yourself from a financial worst-case scenario? | If you have doubts about the long term prospects at your employer or jobs in your area, you may want to keep the option of moving to find a new job open while you save up for a larger down payment on a house. While there are insurance products out there that claim to cover your mortgage, they often have loopholes whic... |
Why buy bonds in a no-arbitrage market? | Bonds can increase in price, if the demand is high and offer solid yield if the demand is low. For instance, Russian bond prices a year ago contracted big in price (ie: fell), but were paying 18% and made a solid buy. Now that the demand has risen, the price is up with the yield for those early investors the same, th... |
Hourly rate negotiation tips for paid internship | I am not sure if I would get any benefit besides the hourly payment as an intern. What are the benefits I can expect while working for this company (or any other software company) Probably none. Changes from company to company but usually only full-time employees are entitled for benefits. For example, could I ask ... |
Is buying a home a good idea? | Once you paid it off, you don't pay rent anymore. That is the major advantage. Also, you can do any change you want to it. Many people consider it an investment - if you ever sell it, it could be worth more than what you paid (although this is not for sure) |
Evidence for timing market in the short run? | This is the S&P a bit over 20 years. If you've discovered a way to sell at 1400 in 2000, buy at 800 or so in 2003, sell again, well, you get the idea. There's strong evidence the typical investor hears the S&P is making new highs and rushes in. It's this influx that may send stocks higher from here, until the smart mo... |
Formation of S-Corp for Gambling Trade | In a sole proprietorship AND an LLC, the expenses can still be deducted against the profits or losses from the operations. The IRS does not even require that a profit seeking activity be incorporated under its own entity, hence why this is also applicable in a sole proprietorship. From what you've said, there is no rea... |
Are bonds really a recession proof investment? | No, they are not recession proof. Assume several companies, that issued bonds in the fund, go bankrupt. Those bonds could be worthless, they could miss principle payments, or they could be restructured. All would mean a decline in value. When the economy shrinks (which is what a recession is) how does the Fed respo... |
What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out? | The rest of the market knows when the dividends are paid out, and that will be reflected naturally in the share price. That's why there is no way to consistently beat the market. Because the market is other human beings, who's sum of knowledge is greater than any individual. Everything in the stock market boils down to... |
Why can low volume move a stock price drastically? | In a sense, yes. There's a view in Yahoo Finance that looks like this For this particular stock, a market order for 3000 shares (not even $4000, this is a reasonably small figure) will move the stock past $1.34, more than a 3% move. Say, on the Ask side there are 100,000 shares, all with $10 ask. It would take a lot... |
How come we can find stocks with a Price-to-Book ratio less than 1? | Book value = sell all assets and liquidate company . Then it's the value of company on book. Price = the value at which it's share gets bought or sold between investors. If price to book value is less than one, it shows that an 100$ book value company is being traded at 99$ or below. At cheaper than actually theoretic... |
Does the Black-Scholes Model apply to American Style options? | A minor tangent. One can claim the S&P has a mean return of say 10%, and standard deviation of say 14% or so, but when you run with that, you find that the actual returns aren't such a great fit to the standard bell curve. Market anomalies producing the "100-year flood" far more often than predicted over even a 20 year... |
Whole life insurance - capped earnings | The question that I walk away with is "What is the cost of the downside protection?" Disclaimer - I don't sell anything. I am not a fan of insurance as an investment, with rare exceptions. (I'll stop there, all else is a tangent) There's an appeal to looking at the distribution of stock returns. It looks a bit like a b... |
Does dollar cost averaging really work? | If you define dollar cost cost averaging as investing a specific dollar amount over a certain fixed time frame then it does not work statistically better than any other strategy for getting that money in the market. (IE Aunt Ruth wants to invest $60,000 in the stock market and does it $5000 a month for a year.) It wil... |
Related Hedges (How do they work?) | In this type of strategy profit is made when the shares go down as your main position is the short trade of the common stock. The convertible instruments will tend to move in about the same direction as the underlying (what it can be converted to) but less violently as they are traded less (lower volatility and lower v... |
Is there a law or regulation that governs the maximum allowable interest amount that can be charged on credit cards or in agreements where credit is extended? | In the US, usury is complicated and depends on the type of account, the bank charter and the where the bank makes credit decisions. Most major US credit cards are issued by entities in Utah, South Dakota and Delaware. None of these states have usury limits. Many states have usury limits. In New York, for example a loan... |
Which U.S. online discount broker is the best value for money? | For self-service type online customers, OptionsXpress gives me far better trading features(like technicals advanced conditions) and tools, ACH money management & scheduling, fullfillment too. $9 stock trades. I don't know if they yet share Schwab's (their new parent company?) commission-free ETFs getting so trendy now... |
What's a normal personal debt / equity ratio for a highly educated person? | The problem with having no debt at all and relying totally on your income from working is that if you lose your job you'll have no income. Now there are 2 types of debt: good debt and bad debt. You should stay away from bad debt. But good debt is good — it should produce an income higher than the interest payments on t... |
No trading data other than close for a stock on a given date | The last column in the source data is volume (the number of stocks that was exchanged during the day), and it also has a value of zero for that day, meaning that nobody bought or sold the stocks on that day. And since the prices are prices of transactions (the first and the last one on a particular day, and the ones wi... |
Chase bank not breaking large bills for non-account holders | Yes it is (legal). There is of course no law requiring any business you walk in to break your money. What made you think there would be? Being a bank in the US (and in other countries) has some legal consequences, but none of them relates to 'having to do business with anyone that walks in', neither 'having to break bi... |
What is the purpose of property tax? | Property taxes are levied by the local authorities to pay for their services. Since the services are continuous - so are the charges. You need someone to pave a road to your house, to build infrastructure, to maintain the police force, fire department, local schools etc. That's what your property taxes are going to. Ho... |
Best way to day trade with under $25,000 | One way a lot of people bypass the pattern trading equity requirement is to open multiple brokerage accounts. You have $10k, put $5k in one and $5k in another. Although I don't recommend it! |
What should I do with the stock from my Employee Stock Purchase Plan? | Judge this stock no differently than any other is the answer. Optimism isn't fact. http://clarkhoward.com/liveweb/shownotes/2007/06/06/12304/?printer=1 Now because you get to buy extremely low, and sell for probably higher and you believe in the stock, I'd say go ahead and purchase the stock, manage it for taxes with ... |
Taking Losses To Save On Tax | No, if you are taking a loss solely and purely to reduce the tax you have to pay, then it is not a good strategy, in fact it is a very bad strategy, no matter what country you are in. No investment choice should be made solely due to your tax consequeses. If you are paying tax that means you made a profit, if you made ... |
Why buy insurance? | It's not a betting game, insurance policy is not akin to a casino bet. While the odds are probably low, the damage of an event may be devastating. Insurance allows mitigating that potential devastating damage, if it occurs. |
Is an interest-only mortgage a bad idea? | Really the question you need to ask yourself is how much Risk you want to take in order to save a little on interest for 5 years. Rates are pretty close to a historic low, and if you have good credit you should shop around a bit to get a good ideal of what a 15 or 30 year fixed loan would go for. For people that are SU... |
Limits and taxation of receiving gift money, in India, from a friend in Italy? | He wants to send me money, as a gift. Do you know this friend? It could easily be a scam. What I don't know is that how much money can he send and what are the taxes that would be applicable in this case? There is no limit; you have to pay taxes as per your tax brackets. This will be added as "income from other sources... |
What is good growth? | There isn't a single hard and fast return to expect. Securities, like all things in a free market, compete for your money. As the Fed sets the tone for the market with their overnight Fed funds rate, you might want to use a multiple of the 'benchmark' 10-year T-note yeald. So let's suppose that a good multiple is four.... |
How much cash on hand should one have? | There are two or three issues here. One is, how quickly can you get cash out of your investments? If you had an unexpected expense, if you suddenly needed more cash than you have on hand, how long would it take to get money out of your Scott Trade account or wherever it is? I have a TD Ameritrade account which is prett... |
What reason would a person have to use checks in stores? | Rational reason. They like this method of paying. There is a delay between writing the check and having the money removed from the account. Their checkbook makes a carbon copy of the check, so they can update their balance easier. They can leave the store and update their checkbook register, or the spreadsheet or their... |
Is there a widely recognized bond index? | Multiple overlapping indices exist covering various investment universes. Almost all of the widely followed indices were originally created by Lehman Brothers and are now maintained by Barclays. The broadest U.S. dollar based bond index is known as the Universal. The Aggregate (often abbreviated Agg), which is histo... |
Should I talk about my stocks? | No, there is no significant harm to discussing this. Outside of possibly getting bad advice, excessive advice, or complaints that others just aren't interested... |
When the Reserve Bank determines the interest rates, do they take the house prices into account? | The setting of interest rates (or "repurchase rates") varies from country to country, as well as with the independence of the central bank. There are a number of measurements and indices that central bankers can take into account: This is a limited overview but should give an indication of just how complex tracking inf... |
How to model fees from trades on online platforms? | Assuming cell A1 contains the number of trades: will price up to A1=100 at 17 each, and the rest at 14 each. The key is the MAX and MIN. They keep an item from being counted twice. If X would end up negative, MAX(0,x) clamps it to 0. By extension, if X-100 would be negative, MAX(0, X-100) would be 0 -- ie: that number ... |
Why is Google's current nasdaq market cap almost twice the current share price * the No. of shares outstanding? | For each class A share (GOOGL) there's a class C share (GOOG), hence the missing half in your calculation. The almost comes from the slightly higher market price of the class A shares (due to them having voting powers) over class C (which have no voting powers). There's also class B share which is owned by the founders... |
What are some good ways to control costs for groceries? | Also make a menu and make a shopping list from that. It will help you control how much you buy, and help to enforce only buying what you need. You don't need to limit your menu, but buying what you need in appropriate quantities will help. Don't forget to add snacking and desserts to your menu. |
Any good software for value investment? | I hope people don’t see this as being facetious but invest some time in learning to do that with Excel. Most financial information websites (Yahoo, MSN, etc.) will allow you to extract all the data you need into excel. This way you can learn to do analysis with something that isn’t a "black box" (as to mean you don’t k... |
Proper etiquette for loans from friends | The standard approach is to reach an agreement and put it in writing. What you agree upon is up to you, but in the US if you want to avoid gift taxes larger loans need to be properly documented and must charge at least a certain minimal interest rate. (Or at least you must declare and be taxed upon that minimal income ... |
Does the rise in ACA premiums affect employer-provided health insurance premiums? | There are a lot of moving parts, individual premiums and annual increases have little to do with employer premiums and annual increases and vice versa. Most people think of XYZ insurer as a single company with a single pool of insured folks. This common knowledge isn't accurate. Insurers pool their business segments... |
I'm 13. Can I buy supplies at a pet store without a parent/adult present? | Perhaps a technicality, but minors do not have the legal capacity to bind a contract. Making a purchase from a store is a contract. I'm not a lawyer and there may be case law to the contrary or that creates exceptions, but my understanding is that purchases made by a minor may be void if later challenged. JohnFx's answ... |
How does Vanguard determine the optimal asset allocation for their Target Retirement Funds? | Googling vanguard target asset allocation led me to this page on the Bogleheads wiki which has detailed breakdowns of the Target Retirement funds; that page in turn has a link to this Vanguard PDF which goes into a good level of detail on the construction of these funds' portfolios. I excerpt: (To the question of why s... |
How to explain quick price changes early in the morning | You may simply be asking why stocks 'gap up' or 'gap down' when the stock market opens. This is because the price adjusts to news that occurred while the exchanges were closed overnight. Perhaps Asian stocks crashed, or perhaps a news story was released in the New York Times about some major company. There are thousand... |
How to handle two K-1 forms from same company? | Just type in the forms as they are, separately. That would be the easiest way both to enter the data without any mistakes, and ensure that everything matches properly with the IRS reports. |
My tenant wants to pay rent through their company: Should this raise a red flag? | The company that's apparently going to pay this rent wants to treat it as a business expense. They are asking for your SSN because they expect to issue a 1099-MISC. (They probably gave you a Form W-9? It's not mandatory but it's common to request a taxpayer ID on this form.) There are a couple of issues at play here: |
Is insurance worth it if you can afford to replace the item? If not, when is it? | The key point to answer the question is to consider risk aversion. Assume I suggest a game to you: Throw a coin and if you win, you get $5, if you lose nothing happens. Will you play the game? Of course, you will - you have nothing to lose! What if I suggest this: If you win, you get $10,000,005 and if you lose you mus... |
How can I predict which way mortgage rates are moving? | Obviously you can't predict the future too much, but it's not too hard to figure out what is going to happen to mortgage rates in the short term. Mortgage rates are heavily influenced by 10 year treasury yields. You can find the daily 10 year rates here. It's easy to see the direction they've been moving recently. I... |
Is there any reason not to put a 35% down payment on a car? | I suggest you buy a more reasonably priced car and keep saving to have the full amount for the car you really want in the future. If you can avoid getting loans it helps a lot in you financial situation. |
Recent college grad. Down payment on a house or car? | When I was in that boat a few years ago, I went for the car first. My thoughts: If I get the car first, I'm guaranteed to have a car that runs well. That makes it more convenient to commute to any job, or for social functions. I ended up dropping about $20k into a car (paid cash, I don't like being in debt). I chos... |
Is there a good rule of thumb for how much I should have set aside as emergency cash? | The bare minimum should be 6-months of expenses. Ideally, it should be at least 1 year. My personal preference is 2+ years, but one thing at a time. Figure out your necessary expenses: food, shelter, transportation and necessary extras. An example of a necessity, beyond the basics, for me is a decent internet connec... |
What does it mean if a company pays a quarterly dividend? How much would I get quarterly? | Google is a poor example since it doesn't pay a dividend (and doesn't expect to), so let's use another example with easy numbers. Company X has a stock price of $100, and it pays a quarterly dividend (many companies do). Let's assume X pays a dividend of $4. Dividends are always quoted in annual terms, as is dividend y... |
Transferring money between two banks | Why? Because they can get away with it, of course. In short - why not? You may want to read the answers to this similar question (my answer is the one accepted by the OP). Who has the money? The banks, who else. I have found that some banks are capable of sending/receiving ACH transfers faster than others. I have accou... |
$200k in an IRA, unallocated. What's the safest investment? | The safest investment is probably a money market fund [originally I said a TIPS fund but they appear to be riskier than I had thought]. But you might not want to invest everything there because the returns are not going to be great. High returns come with high risk. The best portfolio has some percentage (which may b... |
Do I need to pay quarterly 1040 ES and 941 (payroll)? | I think I may have figured this out but if someone could double check my reasoning I'd appreciate it. So if my company makes $75000 and I decide to pay myself a $30000 salary, then the quarterly payment break down would be like this: 1040ES: Would pay income tax on non salary dividend ($45000) 941: Would pay income tax... |
Why can't I short a stock that sells for less than $5? Is there another way to “go short” on them? | I think George's answer explains fairly well why the brokerages don't allow this - it's not an exchange rule, it's just that the brokerage has to have the shares to lend, and normally those shares come from people's margin, which is impossible on a non-marginable stock. To address the question of what the alternatives ... |
How do investment banks evaluate a private firm going public? Is it based on the assets owned by the company? | Will the investment bank evaluate the worth of my company more than or less than 50 crs. Assuming the salvage value of the assets of 50 crs (meaning that's what you could sell them for to someone else), that would be the minimum value of your company (less any outstanding debts). There are many ways to calculate the "v... |
How Do Scammers / Money Launderers Profit From Loans To Victims | If they have your account numbers (which are necessary for direct deposits) they could possibly initiate ACH withdrawals from your accounts too (requires some setup but they may have accomplices). Note that even if you didn't have money there, depending on the local bank rules you may be still on the hook for overdraft... |
Stock valuation - Volkswagen | The primary reason a scandal like this hurts the company is the "bottom line." Any legal action means defense costs. In this case the potential of massive fines became reality. And a buyback program. So, if any publicly traded company stacked up $10B in assets, doused it in diesel and set it on fire, their stock w... |
Strategy to minimize taxes due to unpaid wages? | Can I write off the $56,000 based on demand letters? Or do I need to finish suing him to write-off the loss? No and no. You didn't pay taxes on the money (since you didn't file tax returns...), so what are you writing off? If you didn't get the income - you didn't get the income. Nothing to write off. Individuals in ... |
Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home? | You're paying 5.2% 'interest' on the $115K (500 * 12 / 115,000) * 100 but the amount you pay back is not $115K but 75% of the property value at sale. Is that right? A mortgage would have cost about half that rate and the balloon payment would have been fixed - you would pay back $115K at maturity plus you could have so... |
What publicly available software do professional stock traders use for stock analysis? | Bloomberg is very popular, especially for researching individual companies. Market QA and Factset are popular for analyzing data. Microsoft Excel and Matlab are very common for analyzing the data. Lots of time traders will take data from Bloomberg, Market QA, Factset or where ever, and then actually preform their anal... |
Why can't you just have someone invest for you and split the profits (and losses) with him? | What you are looking for is a pretty terrible deal for you, so I'd say it doesn't exist because there isn't a market for it, or nobody has noticed there is a market for it. In principle I would happily take the deal you offer from as many people as would let me, put the money into treasury bills, and take half the prof... |
IRA contributions in a bear (bad) market: Should I build up cash savings instead? | You should consider dollar cost averaging your investments. Retirement account is perfect for that - it's long term with periodic deposits. Overall, by investing in stocks now for a long term, you'll benefit more because the stocks are at their low(er) point. |
Cannot get a mortgage because I work through a recruiter | They are looking at your work history to see that you have maintained a similar level of income for a period of time, and that you have a reasonable expectation to continue that for the foreseeable future. They are looking to make a commitment for 15-30 years. They see the short term contract, and have no confidence in... |
collateralized mortgage obligations | I think the definition of overcollateralization on investopedia will answer this question for you. Namely this part: For example, in the case of a mortgage backed security, the principal amount of an issue may be $100 million while the principal value of the mortgages underlying the issue may be equal to $120 million.... |
Why do some people say a house “not an investment”? | There's an old saying: "Never invest in anything that eats or needs maintenance." This doesn't mean that a house or a racehorse or private ownership of your own company is not an investment. It just points out that constant effort is needed on your part, or on the part of somebody you pay, just to keep it from losing... |
Are you preparing for a possible dollar (USD) collapse? (How?) | I've thought of the following ways to hedge against a collapsing dollar: |
What is the best way to save money from inflation and currency devaluation? | Devaluation is a relative term, so if you want to protect yourself against devaluation of your currency against dollars - just buy dollars. Inflation is something you cannot protect yourself against because it is something that describes the purchasing power of the money. You will still need to purchase, and usually wi... |
Do I need to pay tax on the amount of savings I have in the bank? | In India, assuming that you have already paid relevant [Income/Capital gains] tax and then deposited the funds into your Bank [Savings or Current] Account; there is NO INCOME tax payable for amount. Any interest earned on this amount is taxable as per Income Tax rules and would be taxed at your income slabs. Wealth... |
Any difference between buying a few shares of expensive stock or a bunch of cheap stock | Unless your brokerage will sell you fractional shares, the most obvious difference (without us knowing the actual identify of the companies) is that with the $260 one, you will have 3 shares plus you will have $220 minus commission left over that you wanted to invest but weren't able to simply because of the mechanics ... |
Car Loan upside down--refinance before selling? | Having just gone through selling a car, I can tell you that CarMax will most likely not be the best solution. I recently sold my '09 Pontiac Vibe which had a KBB and Edmonds value (private party sale) of around $6k. Trade-in value was around $4,800. I took it to the local CarMax for a quote, and they came back with $3,... |
How to get 0% financing for a car, with no credit score? | Is it possible to get a 0% interest rate for car loan for used car in US? Possible? Yes. It's not illegal. Likely? Not really. $5K is not a very high amount, many banks won't even finance it at all, regardless of your credit score. I suggest you try local credit unions, especially those that your employer is sponsori... |
Smartest Place to Put Tax Refund | Congratulations on your graduation and salary. You are in a great career field (I know from experience.) As a background, I would feel pretty confident in your salary as demand for SE is pretty high right now. During my career there were times that demand was pretty to very low. Somehow I survived 2001 & 2002, but ... |
Form as LLC or S Corp to reduce tax liability | An LLC or an S corp will result in the same tax obligations because both are pass-through tax entities. An LLC is more flexible for the situation you describe because the member and manager responsibilities can be detailed in the operating agreement. You really should get a business attorney to help you get your operat... |
looking for research tool to plug in and evaluate theoretical historical returns | The professional financial advisors do have tools which will take a general description of a portfolio and run monte-carlo simulations based on the stock market's historical behavior. After about 100 simulation passes they can give a statistical statement about the probable returns, the risk involved in that strategy, ... |
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