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Are Certificates of Deposit worth it compared to investing in the stock market? | Growth is how well the investment will grow on average. In the long term, this is a sure thing. Volatility is how much the value will jerk up and down in the short term. Do you want both... Or neither? When are you going to use the money? If it's IRA money you can't touch for 30 years, it really ought to be in th... |
How can this stock have an intra-day range of more than 90% on 24Aug2015? | EDIT: It was System Disruption or Malfunctions August 24, 2015 2:12 PM EDT Pursuant to Rule 11890(b) NASDAQ, on its own motion, in conjunction with BATS, and FINRA has determined to cancel all trades in security Blackrock Capital Investment. (Nasdaq: BKCC) at or below $5.86 that were executed in NASDAQ between ... |
Buy the open and set a 1% limit sell order | Nothing is wrong and it should be profitable - but it sounds too good to be true. The devil is in the details and you have not described how you found those stocks. For example, you may have scanned the 500 stocks in the S&P 500, and you may have found a few that exhibit that pattern over a given time window. But it do... |
What financial data are analysed (and how) to come up with a stock recommendation? | The short answer: it depends. The long answer.. Off the top of my head, there are quite a number of factors that an analyst may look at when analyzing a stock, to come up with a recommendation. Some example factors to look at include: The list goes on. Quite literally, any and all factors are fair game for a recommen... |
Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan? | A few years ago I had a 5 year car loan. I wanted to prepay it after 2 years and I asked this question to the lender. I expected a reduction in the interest attached to the car loan since it didn't go the full 5 years. They basically told me I was crazy and the balance owed was the full amount of the 5 year car loan. T... |
How to invest in stocks without using an intermediary like a broker? Can shares be bought direct? | Yes! What you are describing is an "off-exchange" trade and can be done using stock certificates. Here, you will privately negotiate with the seller on a price and delivery details. That is the old-school way to do it. Many companies (about 20% of the S&P 500) will not issue paper certificates and you may run a hefty p... |
Buying insurance (extended warranty or guarantee) on everyday goods / appliances? | I usually say "no thank you", but if the salesperson gets pushy I say "if I need insurance, I guess I won't buy the product because I only want to buy quality that will last a good long while" I have never actually walked away from a purchase because I generally research these things ahead of time, but I think I mean i... |
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... |
What kind news or information would make the price of a stock go up? | You should not trade based on what news is just released, if you try you will be too slow to react most of the time. In many cases the news is already priced into the stock during the anticipation of the news being released. Other times as soon as the news is released the price will gap up or down in response to the ne... |
interest rate on online banks | There are no "on-line" banks in Israel. There were various attempts to create something that would look like an online bank (HaYashir HaRishon comes to mind, Mizrahi did something similar recently), but that essentially is a branch of a brick and mortar bank (Leumi and Mizrahi, respectively) that allows you online mana... |
How does a typical vesting timeline work with respect to employer contributions? | There are two dates that matter for vesting in this situation: If you left the company on 12/31/16, you would be entitled to none of the company contributions. If you left on 1/1/17, you would be entitled to all $20k. This is sometimes known as a cliff vesting schedule. Some companies do a stair step - 20% after year 1... |
Should I buy a house with a friend? | I did this about 8 years ago with a buddy in Chicago for the reasons specified in the original post. As other posters have suggested, we discussed a lot of the same questions listed above, figured out the possible scenarios, and then had a lawyer draw up a contract. We bought a 3 bedroom house, and rented out the 3r... |
How decreasing the prime interest rate helps to offset decreasing oil prices | You may be missing how countries like Canada may have oil be more of the GDP than countries like the US. In Canada, the lower oil prices may mean more of an economic slowdown with oil companies laying off staff, canceling projects and some companies probably going under as some provinces like Alberta are highly depende... |
What does it mean for a normal citizen like me when my country's dollar value goes down? | One more effect that's not yet been mentioned is that companies based in Australia and listed on the Australian Securities Exchange, but which do most of their business overseas, will increase their earnings in AU$, since most of what they earn will be in foreign currencies. So their shares are likely to appreciate (in... |
Capital gains tax when I sell my home if I use a portion of it for an AirBnB | Getting the first year right for any rental property is key. It is even more complex when you rent a room, or rent via a service like AirBnB. Get professional tax advice. For you the IRS rules are covered in Tax Topic 415 Renting Residential and Vacation Property and IRS pub 527 Residential Rental Property There is a s... |
Quandl financial data : unexpected dividend | For MCD, the 47¢ is a regular dividend on preferred stock (see SEC filing here). Common stock holders are not eligible for this amount, so you need to exclude this amount. For KMB, there was a spin-off of Halyard Health. From their IR page on the spin-off: Kimberly-Clark will distribute one share of Halyard common stoc... |
Do my 401k/Roth accounts benefit from compounding? | You buy a share of something for $100. It goes up by 10% over a year, and you now have $110 in value. It goes up by 10% next year and you now have $121. That original $10 increase was compounded even though you're not earning interest because the gains are measured as a percentage. If, instead, you'd only invested ... |
Advantages of paying more of your mortgage while you know you won't continue to live there your whole life | The mortgage is a debt and you pay interest on it, typically more than you can earn elsewhere (especially once taxes are taken into account.) By lowering the principal, you lower the total interest you pay. This is true whether you sell the house after 1 year, 10 years, or 100 years. In your case, prepayments made in t... |
What should I be aware of as a young investor? | Risk and return always go hand by hand.* Risk is a measure of expected return volatility. The best investment at this stage is a good, easy to understand but thorough book on finance. *Applies to efficient markets only. |
Virtual Terminal WITHOUT merchant account? | You would need to setup a company (even if it's just a sole proprietorship, in the US) to be able to apply for a true merchant account. And thus have a terminal; either real or virtual in your home or business. However, many services such as paypal allow you to accept credit cards (both online and with a card reader) ... |
What does Chapter 11 Bankruptcy mean to an investor holding shares of a Chapter 11 Company? | If you've got shares in a company that's filed for U.S. Chapter 11 bankruptcy, that sucks, it really does. I've been there before and you may lose your entire investment. If there's still a market for your shares and you can sell them, you may want to just accept the loss and get out with what you can. However, share... |
Are TD e-Series Funds worthwhile, or am I better off with ETFs? Why or why not? | TD e-series index funds are great for regular contributions every paycheck since there is no trading commission. The personal finance blog "Canadian Couch Potato" has great examples of what they call "model portfolios" and one consists of entirely TD e-series index funds. Check it out: http://canadiancouchpotato.com... |
What's the difference between Market Cap and NAV? | NAV is how much is the stuff of the company worth divided by the number of shares. This total is also called book value. The market cap is share price times number of shares. For Amazon today people are willing to pay 290 a share for a company with a NAV of 22 a share. If of nav and price were equal the P/B (price to... |
Quarterly dividends to monthly dividends | Technically you should take the quarterly dividend yield as a fraction, add one, take the cube root, and subtract one (and then multiple by the stock price, if you want a dollar amount per share rather than a rate). This is to account for the fact that you could have re-invested the monthly dividends and earned divide... |
How do rich people guarantee the safety of their money, when savings exceed the FDIC limit? | Rich people use "depositor" banks the same way the rest of us use banks; to keep a relatively small store of wealth for monthly expenses and a savings account for a rainy day. The bulk of a wealthy person's money is in investments. Money sitting in a bank account is not making you more money, and in fact as Kaushik cor... |
What's the best way to make money from a market correction? | If you are sure you are right, you should sell stock short. Then, after the market drop occurs, close out your position and buy stock, selling it once the stock has risen to the level you expect. Be warned, though. Short selling has a lot of risk. If you are wrong, you could quite easily lose all $80,000 or even substa... |
Is there a standard or best practice way to handle money from an expiring UTMA account? | I'd first put it in CDs or other short term account. Get through school first, then see where you land. If you have income that allows you to start a Roth IRA, I'd go for that, but keep it safe in case you actually need it back soon. After school, if you don't land a decent job fast, this money might be needed to live... |
Are U.S. salaries typically measured/reported before tax, or after tax? | In the U.S., virtually all salaries are expressed as "gross salaries", which are before the taxes that the individual must pay on their income. The numbers shown in the links are almost certainly gross salary figures. However, the "gross salary" is not the entire "total compensation" number, which is the total value of... |
Is 401k as good as it sounds given the way it is taxed? | If you pay 20% tax now and none later or if you pay no tax now and 20% later, it doesn't make a difference. Mathematically, it's the same. You have to guess about which tax rate (now vs later) will be higher for you in order for you to make the best choice. Predicting tax rates 40 years in advance is hard. Everybody... |
Did basically all mutual funds have a significant crash in 2008? | The literal answer to your question is that a number of different types of mutual funds did not have significant downturns in 2008. Money Market Funds are intended to always preserve capital. VMMXX made 2.77% in 2008. It was a major scandal broke the buck, that its holders took a 3% loss. Inverse funds, which go up whe... |
What is market capitalization? [duplicate] | Market Capitalization is the equity value of a company. It measures the total value of the shares available for trade in public markets if they were immediately sold at the last traded market price. Some people think it is a measure of a company's net worth, but it can be a misleading for a number of reasons. Share pri... |
Estimated Tax on Unplanned Capital Gains | In general, you are expected to pay all the money you owe in taxes by the end of the tax year, or you may have to pay a penalty. But you don't have to pay a penalty if: The amount you owe (i.e. total tax due minus what you paid in withholding and estimated taxes) is less than $1000. You paid at least 90% of your total ... |
Should a retail trader bother about reading SEC filings | There are many different kinds of SEC filings with different purposes. Broadly speaking, what they have in common is that they are the ways that companies publicly disclose information that they are legally required to disclose. The page that you listed gives brief descriptions of many types, but if you click through... |
What is the true value, i.e. advantages or benefits, of building up equity in your home? | A person can finance housing expenses in one of two ways. You can pay rent to a landlord. Or you can buy a house with a mortgage. In essence, you become your own landlord. That is, insta the "renter" pays an amount equal to the mortgage to insta the "landlord," who pays it to the bank to reduce the mortgage. Ideally, y... |
What are the pros and cons of buying a house just to rent it out? | From personal experience: Loan Impact It does impact your ability to take out other loans (to an extent) Your first investment property is going to go against your debt to income levels, so if you take out a loan, you've essentially decreased the amount you can borrow before you hit a lender's debt to income ceiling. ... |
Where to start with personal finance? | Personal finance is a fairly broad area. Which part might you be starting with? From the very basics, make sure you understand your current cashflow: are you bank balances going up or down? Next, make a budget. There's plenty of information to get started here, and it doesn't require a fancy piece of software. This... |
Should I set a stop loss for long term investments? | My broker offers the following types of sell orders: I have a strategy to sell-half of my position once the accrued value has doubled. I take into account market price, dividends, and taxes (Both LTgain and taxes on dividends). Once the market price exceeds the magic trigger price by 10%, I enter a "trailing stop %" ... |
How is it possible that a preauth sticks to a credit card for 30 days, even though the goods have already been delivered? | Open a dispute for the preauth. It is effectively a double charge, since you have already paid for the item. You can provide evidence of the other transaction. This forces them to go through some hassle and waste some time on the issue. |
What did John Templeton mean when he said that the four most dangerous words in investing are: ‘this time it’s different'? | To play devil’s advocate to much of what has been written before, it's also worth noting that this is quite an important quote for a sort of reverse reason to what has been discussed before us, that of that fact that virtually every economic situation is different. As it's such a reflexive problem, each and every set o... |
Understanding the synthetic long put option | A long put - you have a small initial cost (the option premium) but profit as the stock goes down. You have no additional risk if the shock rises, even a lot. Short a stock - you gain if the stock drops, but have unlimited risk if it rises, the call mitigates this, by capping that rising stock risk. The profit/loss gra... |
Is it wise to invest in a stock with a large Div yield? | BHP Billiton has room to answer doubters as commodities rout batters debt notes in part: There has been speculation that the company could cut its shareholder dividend, while Liberum Capital analyst Richard Knights has suggested BHP might look to raise as much as $US10 billion ($14.3 billion) in new equity capita... |
How does a “minimum number of items to be bought” factor into break even analysis? | A minimum purchase quantity just means that you need to round your result up to the nearest 100. In your example it comes out evenly. If we look at an example where it doesn't come out even, you'd round up: And round that up to 700 due to purchase quantities. For a slightly more complex and accurate approach, you'd the... |
Ray Dalio - All Weather Portfolio | Making these difficult portfolio decisions for you is the point of Target-Date Retirement Funds. You pick a date at which you're going to start needing to withdraw the money, and the company managing the fund slowly turns down the aggressiveness of the fund as the target date approaches. Typically you would pick the ... |
Does high inflation help or hurt companies with huge cash reserves? | Inflation will damage the value of those cash reserves. This will harm the company's value. (Other factors may or may not be harmed. or helped.) Borrowing costs may be related to inflation, but they're not directly tied. Inflation happens, in fact, when it's easy to borrow money and more money gets created than new eco... |
Why do people always talk about stocks that pay high dividends? | The upvoted answers fail to note that dividends are the only benefit that investors collectively receive from the companies they invest in. If you purchase a share for $100, and then later sell it for $150, you should note that there is always someone that purchases the same share for $150. So, you get $150 immediately... |
Purpose of having good credit when you are well-off? | Credit scores, or at least components of them, can sometimes factor into how much you pay for car insurance. Source: Consumer Reports: How a Credit Score Increases your Premium |
Will there always be somebody selling/buying in every stock? | Will there be a scenario in which I want to sell, but nobody wants to buy from me and I'm stuck at the brokerage website? Similarly, if nobody wants to sell their stocks, I will not be able to buy at all? You're thinking of this as a normal purchase, but that's not really how US stock markets operate. First, just becau... |
Why do P/E ratios for a particular industry tend to cluster around particular values? | This falls under value investing, and value investing has only recently picked up study by academia, say, at the turn of the millennium; therefore, there isn't much rigorous on value investing in academia, but it has started. However, we can describe valuations: In short, valuations are randomly distributed in a log-Va... |
Is equity research from large banks reliable? | If by "can we trust the analyst recommendations" you mean "are they right 100% of the time" the answer is absolutely no. Analysts are human and make mistakes, some more than others. There are many stories of "superstar managers" that make killings for several straight years, then have a few bad years and lose it all ... |
How to protect yourself from fraud when selling on eBay UK | Paypal UK has a page here: https://www.paypal.com/uk/webapps/mpp/seller-protection Basically they don't just take the seller's word for it, there is a resolution process. The biggest thing you can do is make sure that you deliver it in a way that requires signature. |
Price graphs: why not percent change? | The actual price is represented on charts and not the change in price as a percentage, because it is the actual price which is used in all other parts of analysis (both technical and fundamental), and it is the actual figure the security is bought and sold at. A change in price has to be relative to a previous price at... |
How do I find a good mutual fund to invest 5K in with a moderately high amount of risk? | Vanguard has a lot of mutual fund offerings. (I have an account there.) Within the members' section they give indications of the level of risk/reward for each fund. |
What should I be aware of as a young investor? | Consistently beating the market by picking stocks is hard. Professional fund managers can't really do it -- and they get paid big bucks to try! You can spend a lot of time researching and picking stocks, and you may find that you do a decent job. I found that, given the amount of money I had invested, even if I beat th... |
Do “Instant Approved” credit card inquires appear on credit report? | You'll see a hard inquiry for both, but not necessarily on all three agencies (Experian, TransUnion and Equifax). I have both the Amazon Chase and Amazon Store Card. Amazon Chase, is obviously through Chase bank. Amazon Store Card is through GE Money. |
23 and on my own, what should I be doing? | Congratulations on earning a great income. However, you have a lot of debt and very high living expenses. This will eat all of your income if you don't get a hold of it now. I have a few recommendations for you. At the beginning of each month, write down your income, and write down all your expenses for the month. Inc... |
Is Pension Benefit Information (aboutmyletter.com) legitimate? | To boil down what mgkrebbs said: Yes, you should send back the form, provided that it doesn't ask for any more information than address, current telephone number, and email address. Don't ever, ever provide any bank account information. Nor social security number unless you're absolutely positive of the validity of th... |
What types of receipts do I need to keep for itemized tax deductions? | Businesses are only required to keep receipts over $751. However for individuals, I would throw them all in a shoebox and not worry about organizing them. There's a small chance you'll need to go through them during an audit, and you can worry about reconciling all of them and putting them in order at that point. Jus... |
Company asking for card details to refund over email | If it is a well known company that wants to give you a refund, I would not worry about giving them your credit card number. However, I would never type my credit card number into an e-mail message. E-mail messages are very insecure, and can be read by many people along its way to the destination. They also can be arch... |
Is there legal reason for restricting someone under 59-1/2 from an in-service rollover from a 401K to an IRA? | I don't think there's a rule -- (I can't comment) but Brick cited IRS rules...but IMO Brick missed one thing -- @ashur668 is not looking for a distribution, but is looking for a rollover. My best guess: that this part of the ruleset is not well defined, and your (and my) employer have chosen to interpret any withdrawl... |
Accounting for currency depreciation | Yes - it's called the rate of inflation. The rate of return over the rate of inflation is called the real rate of return. So if a currency experiences a 2% rate of inflation, and your investment makes a 3% rate of return, your real rate of return is only 1%. One problem is that inflation is always backwards-looking, ... |
What is the difference between speculating and investing? | Speculation means putting your money on a hunch that some event may occur, depending on current circumstances and some future circumstances. So either you win huge or lose a lot. Investment is a conscious decision made on well defined research and grounded on good reasons i.e. economy, industry, company reports etc. H... |
Free service for automatic email stock alert when target price is met? | If you're a customer, TD Ameritrade has a really robust alerting system. |
Are stock purchases on NASDAQ trackable to personal information? | The broker will probably submit records to the IRS, so there isn't anonymity at that level... |
What are some good ways to control costs for groceries? | Probably my biggest cost saving is to make my own sandwiches for lunch. I take this one step further by buying joints of meat to roast and slice for the filling. This not only tastes better but is quite a bit cheaper. For example today I roasted a 5 kg ham (about 11 lbs), it cost me £16 to buy (around $25), but I've sl... |
Why is the fractional-reserve banking not a Ponzi scheme? | The Ponzi/Madoff schemes were closed loops, so the only source of the so-called "interest" on the money was the contributions of future investors. The economy is more like a living thing, and the availability of capital allows people to develop new ways to do things in a more productive way. Agriculture is a great exam... |
Buying a more expensive house as a tax shelter (larger interest deduction)? | Depending on the state you live in paying interest on a mortgage opens up other tax deduction options: Real estate taxes, Car tax, donations. See schedule A http://www.irs.gov/pub/irs-pdf/f1040sa.pdf The shocking bottom line is that it never works to your advantage in the short term. Owning your house: But there are bi... |
I spend too much money. How can I get on the path to a frugal lifestyle? | As others have said getting on a written budget before each month starts is the most important part. Also, I'm a big fan of cash budgets as well. They aren't for everyone and they take a little getting used to, but once you get used to them you'll never want to go back. In a cash budget you take whatever you have budg... |
How are people able to spend more than what they make, without going into debt? | Bezos made very little "money." But he is very wealthy because of stock grants and options, from his previous years. Banks or brokerage firms will lend him (or anyone else) up to half the value of his stock. In Bezos' case, we're talking about billions. So he could, if he wanted to, cash out half of those billions. If ... |
W8-BEN for an Indian Citizen | For filling out the W8-BEN form, please refer to the instructions in the document named: Instructions for Form W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting |
Investment strategies for young adults with entrepreneurial leanings? | Diversity of risk is always a good idea. The cheapest equity-based investment (in terms of management costs) is some form of tracker or indexed fund. They're relatively low risk and worth putting in a fixed amount for long-term investment. I agree with Ngu Soon Hui, you're going to need a lot of cash if you decide to... |
Is there any reason to choose my bank's index fund over Vanguard? | Basically, no. Selecting an actively managed fund over a low-fee index fund means paying for the opportunity to possibly outperform the index fund. A Random Walk Down Wall Street by Burton Malkiel argues that the best general strategy for the average investor is to select the index fund because the fee savings are cer... |
Stocks and Bonds in Roth IRA vs non-tax-advantaged | You should definitely favor holding bonds in tax-advantaged accounts, because bonds are not tax-efficient. The reason is that more of their value comes in the form of regular, periodic distributions, rather than an increase in value as is the case with stocks or stock funds. With stocks, you can choose to realize all t... |
Eligibility for stock rights offering | Yes, there is a delay between when you buy a stock and when you actually take ownership of it. This is called the settlement period. The settlement period for US equities is T+2 (other markets have different settlement periods), meaning you don't actually become a shareholder of record until 2 business days after you ... |
Bonds vs equities: crash theory | I would suggest looking into Relative Strength Asset Allocation. This type of investment strategy keeps you invested in the best performing asset classes. As a result of investing in this manner it removes the guesswork and moves naturally (say into cash) when the stock market turns down. There is a good whitepaper on... |
Does an employee have the right to pay the federal and state taxes themselves instead of having employer doing it? | You can file a revised W-4 with your employer claiming more allowances than you do now. More allowances means less Federal tax and (if applicable and likely with a separate form) less state tax. This doesn't affect social security and Medicare with holding, though. That being said, US taxes are on a pay-as-you-go syst... |
What does inflation mean to me? | Everyone buys different kinds of goods. For example I don't smoke tobacco so I'm not affected by increased tobacco prices. I also don't have a car so I'm not affected by the reduced oil prices either. But my landlord increased the monthly fee of the apartment so my cost of living per month suddenly increased more than ... |
How does a brokerage firm work? | The brokerage executes the transactions you tell them to make on your behalf. Other than acting as your agent for those, and maintaining your account, and charging a fee for the service, they have no involvement -- they do not attempt to predict optimal anything, or hold any assets themselves. |
Are parking spaces and garage boxes a good investment? | If the company that owns the lot is selling them it is doing so because it feels it will make more money doing so. You need to read carefully what it is you are getting and what the guarantees are from the owner of the property and the parking structure. I have heard from friends in Chicago that said there are people... |
How to find the smallest transaction fees and commissions available and reduce trading overhead? | The lowest cost way to trade on an exchange is to trade directly on the exchange. I can't speak to the LSE, but in the US, there is a mandated firewall between the individual and the exchange, the broker; therefore, in the US, one would have to start a business and become a broker. If that process is too costly, the br... |
Why does gold have value? | Gold has very useful physical properties for some engineering applications. Even tiny amounts of gold can substantially improve products, so it can be worthwhile to pay high prices per ounce for gold. For example: Gold can be "beaten" or electroplated to produce very thin shiny coatings. Entire roofs (of famous buil... |
Ongoing things to do and read to improve knowledge of finance? | For learning about finances my main two financial resources are this site, and the Motley Fool. My secondary sources are keeping up with columns by my favourite economic journalists - in the press in the US, Australia, England, and India. Regarding your comment about feeling green on the basics despite the reading - yo... |
What's an economic explanation for why greeting cards are so expensive? | It cost a lot of money to pay the poet to make wording, designers/photographers to make the post-cards and miscellaneous staff (Executives, HR, shareholders etc.) These cost are thrown onto the buyers. |
Are there special exceptions to the rule that (US) capital gains taxes are owed only when the gain materializes? | This is really an extended comment on the last paragraph of @BenMiller's answer. When (the manager of) a mutual fund sells securities that the fund holds for a profit, or receives dividends (stock dividends, bond interest, etc.), the fund has the option of paying taxes on that money (at corporate rates) and distributin... |
What's the best way to make money from a market correction? | The best way to make money during a market correction is to be a financial services company handling transactions for people who think they can beat the market, and charging a percentage commission on each transaction, while keeping your own money somewhere nice and safe, stable and low-fee. |
What's an economic explanation for why greeting cards are so expensive? | (At least in the UK) a company named Card Factory has been very successful in undercutting the competition using the classic pile 'em high and sell 'em cheap strategy with less glamorous high-street locations than 'traditional' stores. Interestingly it doesn't seem to have spawned either competition at their price poin... |
Why is the fractional-reserve banking not a Ponzi scheme? | You are forgetting one crucial point regarding the money supply. The US Federal Reserve increases the money supply, meaning some of the money is not really loaned, it just appears out of nowhere. At first glance this seems even worse: over the short term, the Fed changes the money supply to help the economy in whatev... |
At what point do index funds become unreliable? | A great deal of analysis on this question relies on misunderstandings of the market or noticing trends that happened at the same time but were not caused by each other. Without knowing your view, I'll just give the basic idea. The amount of active management is self-correcting. The reason people have moved out of act... |
Investment property information resources | I personally found the "For Dummies" books, on property investment, very helpful and a great primer. I found them unbiased and very informative, laying out the basic principles. Depending on your knowledge it can provide you with enough of a foundation to have an informed conversation with banks/real estates etc. Watc... |
Why do some people say a house “not an investment”? | You're hearing alot of talk about housing (and by implication property) not being an investment today because on the downside of a market, the conventional wisdom is to be negative about buying things that have lost value. Just as it was dumb to listen to your coworker about hot .Com IPOs in 1999, it's dumb to listen t... |
Do individual stocks have futures trading | There is indeed a market for single stock futures, and they have been trading on the OneChicago exchange since 2002. Futures are available in 12,509 individual stocks, according to the exchange's current product listing. One advantage they offer over trading the underlying stock is the significantly higher leverage tha... |
How will the after market affect the open of the market tomorrow? | In general a stock can open at absolutely any price with no regard for the closing price or after hours price the previous day. The opening price will be determined by the best bid and offer made by people who decide to trade the next day. Some of the those people may have put orders in on a prior day that are still o... |
What are the financial advantages of living in Switzerland? | Companies, especially big ones, find in Switzerland a business-friendly environment and often benefit from a special tax regime. Don't mix the companies interests with yours. |
What exactly is a “derivative”? | The basic idea behind a derivative is very simple actually. It is a contract where the final value depends on (is derived from) the value of something else. Stock, for instance, is not a derivative because the contract itself is actually ownership of part of a company. Whereas car insurance is a derivative because t... |
Is there a mathematical formula to determine a stock's price at a given time? | I found the answer. It was the Stock Ticker that I was looking for. So, if I understand correctly the price at certain moment is the price of the latest sale and can be used to get a global picture of what certain stock is worth at that certain instant. |
Do you have to be mega-rich to invest in companies pre-IPO? | Short answer: No. Being connected is very helpful and there is no consequence by securities regulators against the investor by figuring out how to acquire pre-IPO stock. Long answer: Yes, you generally have to be an "Accredited Investor" which basically means you EARN over $200,000/yr yourself (or $300,000 joint) and h... |
Choosing the “right” NAPFA advisor, and whether fees are fair, etc.? | Some sample prices for straightforward pay-for-hours-or-deliverables planners: I think I've seen some similar rates elsewhere, too. I'd feel like you might get something perfunctory and boilerplate for too much less than $1000 - how could the person afford to spend much time? - and I'd feel like lots more than $1000 fo... |
Work on the side for my wife's company | In the US, you'd run the risk of being accused of fraud if this weren't set up properly. It would only be proper if your wife could show that she were involved, acting as your agent, bookkeeper, etc. Even so, to suggest that your time is billed at one rate but you are only paid a tiny fraction of that is still a high ... |
What is the daily rebalanced leverage ratio that is ideal for the S&P 500 based on past performance? | The reason that UltraLong funds and the like are bad isn't because of the leverage ratio. It's because they're compounded daily, and the product of all the doubled daily returns is not mathematically equivalent to the double the long-term return. I'd consider providing big fancy equations using uppercase pi as the 'pro... |
The Benefits/Disadvantages of using a credit card | The thing you need to keep in mind is that if you take on debt, you need to have a plan to pay it off and execute on it. You also need to understand what your carrying cost is (what you will pay in finance charges every month.) There are times when you need to take on debt in order to be a productive person. For exa... |
What is the correct pronunciation of CAGR? | Most readers probably know that an acronym is an invented word made up of the initial letters or syllables of other words, like NASA or NATO. Fewer probably know that an initialism is a type of acronym that cannot be pronounced as a word, but must be read letter-by-letter, like FBI or UCLA. A quote from Daily W... |
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