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how derivatives transfer risk from one entity to another | The important thing to realize is, what would you do, if you didn't have the call? If you didn't have call options, but you wanted to have a position in that particular stock, you would have to actually purchase it. But, having purchased the shares, you are at risk to lose up to the entire value of them-- if the compan... |
What to do with a 50K inheritance [duplicate] | **I would encourage you to clear all your debts and remain debt free, then you can consult a financial manager-for investing purposes that fits your needs and goals. There are so many investment vehicles out, but the best of all is in real estate which requires lots of money. For your case I would prefer money marke... |
What is the difference between equity and assets? | Not to detract from the other answers at all (which are each excellent and useful in their own right), but here's my interpretation of the ideas: Equity is the answer to the question "Where is the value of the company coming from?" This might include owner stakes, shareholder stock investments, or outside investments.... |
When to start investing in an index fund? Wait for a bear market, use dollar cost-averaging, or another approach? | The fact that you are choosing index fund means you are surely not one of those investors who can correctly judge dips. But buying on dips is still important. You can use a method called Dollar Value Averaging. It is better than Dollar Cost Averaging. Just make sure you apply a lower limit and an upper limit to be more... |
Is it ever a good idea to close credit cards? | Yes, it can be a good idea to close unused credit cards. I am going to give some reasons why it can be a good idea to close unused accounts, and then I will talk about why it is NOT necessarily a bad idea. Why it can be a good idea to close unused accounts "I'd like to close the cards." That is reason enough. Simpl... |
Auto Loan and Balance Transfer | This is what your car loan would look like if you paid it off in 14 months at the existing 2.94% rate: You'll pay a total of about $277 in interest. If you do a balance transfer of the $10,000 at 3% it'll cost you $300 up front, and your payment on the remaining $5,000 will be $363.74 to pay it off in the 14 month pe... |
If a stock doesn't pay dividends, then why is the stock worth anything? | It's important to remember what a share is. It's a tiny portion of ownership of a company. Let's pretend we're talking about shares in a manufacturing company. The company has one million shares on its register. You own one thousand of them. That means that you own 1/1000th of the company. These shares are valued b... |
Personal taxes for Shopify / Paypal shop? | (do I need to get a W9 from our suppliers)? Will PayPal or Shopify send me a 1099k or something? Do not assume that you'll get paperwork from anyone. Do assume that you have to generate your own paperwork. Ideally you should print out some kind of record of each transaction. Note that it can be hard to view older tr... |
Currently sole owner of a property. My girlfriend is looking to move in with me and is offering to pay 'rent'. Am I at risk here? | Disclaimer: I am a law student, not a lawyer, and don't claim to have a legal opinion one way or another. My answer is intended to provide a few potentially relevant examples from case law in order to make the point that you should be cautious (and seek proper advice if you think that caution is warranted). Nor am I cl... |
Got charged ridiculous amount for doctor's walk in visit. What are my options? | You should start by calling the clinic and asking them to tell you how the visit was coded. Some clinics have different billing codes based on the complexity of the visit. If you have one thing you are seeing the doctor about, that could be coded differently than if you have 4 things you are seeing the doctor about. In... |
Pay off car loan entirely or leave $1 until the end of the loan period? | a link to this article grabbed my Interest as I was browsing the site for something totally unrelated to finance. Your question is not silly - I'm not a financial expert, but I've been in your situation several times with Carmax Auto Finance (CAF) in particular. A lot of people probably thought you don't understand ho... |
What are the contents of fixed annuities? | An annuity is a contract. Its contents are "a contractual obligation from the issuing company". If you want to evaluate how your annuity is likely to fare, you're essentially asking whether or not its issuer will honor its contract. They're legally required to honor the contract, unless they go bankrupt. (Even if they ... |
US tax returns for a resident - No US income and indian shares | I'm assuming that by saying "I'm a US resident now" you're referring to the residency determination for tax purposes. Should I file a return in the US even though there is no income here ? Yes. US taxes its residents for tax purposes (which is not the same as residents for immigration or other purposes) on worldwide in... |
Should I Purchase Health Insurance Through My S-Corp | The answer seems to depend on where you live. Perhaps you already found this, but the summary from the IRS is: The insurance laws in some states do not allow a corporation to purchase group health insurance when the corporation only has one employee. Therefore, if the shareholder was the sole corporate employee, the s... |
Mortgage vs. Cash for U.S. home buy now | I'm in the "big mortgage" camp. Or, to put this another way - what would you be happier to have in 15 years? A house that is worth $300,000, or $50,000 of equity in a house and $225,000 in the bank? I would much rather have the latter; it gives me so many more options. (the numbers are rough; you can figure it out you... |
Why do people sell when demand pushes share price up? | If the price has gone up from what it was when the person bought, he may sell to collect his profit and spend the money. If someone intends to keep his money in the market, the trick is that you don't know when the price of a given stock will peak. If you could tell the future, sure, you'd buy when the stock was at its... |
How can I avoid international wire fees or currency transfer fees? | Depending on your income/savings level and who you work for (if you work for a big company check with an HSBC Premier advisor, they may waive the requirements), you may qualify for an HSBC Premier account, which can allow you to open accounts in different countries and transfer money between them without a fee. You can... |
Does an index have a currency? | There's no need for an index to have a currency as its purpose is not to act as an asset but rather to signal investors about the performance of a collection of stocks. An index can be price-weighted, meaning that its value equals the (arithmetic) average of the prices of each stock in the index. With no stock splits, ... |
Are my purchases of stock, mutual funds, ETF's, and commodities investing, or speculation? | This depends on what your definition of the word is is. Strictly speaking, you are only investing in a company when you buy stock from them somehow. This is usually done during an IPO or a secondary offering. Or, if you are someone like Warren Buffet or an institutional investor, you strike a deal with the company to... |
File Taxes: US Expat, now married to foreign national | Per the IRS instructions on filing as Head of Household as a Citizen Living Abroad, if you choose to file only your own taxes, and you qualify for Head of Household without them, the IRS does not consider you married: If you are a U.S. citizen married to a nonresident alien you may qualify to use the head of household ... |
How much power does a CEO have over a public company? | If Steve Jobs [Tim Cook] were to decide to try to kill Apple, does he have the power to do so? Yes. But he would be held accountable. In addition to the other answers, the CEO is a fiduciary of the corporation. That means his/her actions must be in good faith and look out for the well-being of the company. Otherwise, h... |
US Expatriate, do I have to file for an extension, or do I automatically get it, as in without doing anything? | The 2 months extension is automatic, you just need to tell them that you're using it by attaching a statement to the return, as Pete Becker mentioned in the comments. From the IRS pub 54: How to get the extension. To use this automatic 2-month extension, you must attach a statement to your return explaining which of ... |
Credit card grace period for pay, wait 1 day, charge? | If I understand you correctly, no you shouldn't be charged interest. Lets say you have a billing cycle of monthly (which usually isn't true). You charge $XX per day, ending up at $1000 at the end of January. So February 1st, your bill for your January billing cycle is $1000, due by Feb 15th (lets say). On February 1st,... |
Foolish to place orders before the market opens? | More on a technical note, but the spread on an ETF tends to be worst at market open and near market close. (assuming the ETF constituents are traded on a synchronous basis.) If possible, it's often best to let market makers get up and running before allowing your order to flow into market. |
How to reconcile a credit card that has an ongoing billing dispute? | You could make an entry for the disputed charge as if you were going to lose the dispute, and a second entry that reverses the charge as if you were going to win the dispute. You could then reconcile the account by including the first charge in the reconciliation and excluding the reversal until the issue has been res... |
Home Renovations are expensive.. Should I only pay cash for them? | Is it a safety thing? If the heat pump goes out you replace it immediately, if your floor looks bad but you aren't tripping, I would suggest saving. Use the extra time to find a great deal and educate yourself on your options. Maybe even take a class and learn to do it yourself. In these rough times, anything I can ... |
Hypothetical: can taxes ever cause a net loss on otherwise-profitable stocks? | The original post's $16 has two errors: Here is the first scenario: . Tax Liability($) on Net . Cash # of Price Paper Realized Value Time: ($) Shares ($/sh) Profits Profits ($) 1. Start with: ... |
Why do credit card transactions take up to 3 days to appear, yet debit transactions are instant? | When you swipe your credit card, the terminal at the store makes a request of your bank, and your bank has only a few seconds to accept or reject the transaction. Once the transaction is accepted by your bank, it appears in the Pending transactions. At the end of the business day, the store submits all of the final tra... |
Is it ever a good idea to close credit cards? | There is also security aspect. By reducing the number of active credit/debit cards, one significantly reduces the surface of attack. There is smaller chance of getting one of your card information stolen and misused (cf Target data leaks and others). |
How can a person with really bad credit history rent decent housing? | Having been recently evicted she is unlikely to find any one willing to rent to her at anything close to reasonable terms. Any landlord that would consider it is likely to require a huge deposit. Her best solution may be a hotel/motel with weekly/monthly rates. It is generally much easier to get someone out of a hote... |
What should I look for when looking for stocks that are 'on-sale'? | Don't invest. Keep cash. And wait till you see a crash in the price of some of your favorite blue chip stocks. But wait till the true bottom is in...you will know when is the right time as it will be obvious. |
Should you keep your stocks if you are too late to sell? | The price at which a stock was purchased is a sunk cost--that is, you cannot go back in time and reverse the decision you made to purchase that stock. Another example of a sunk cost would be purchasing a non-refundable, non-transferable movie ticket. Sunk costs have the tendency to create a cognitive bias in which we... |
Are stories of turning a few thousands into millions by trading stocks real? | Warren Buffett pointed out that if you set 1 million monkeys to flipping coins, after ten flips, one monkey in about 1,000 (1,024) actually, would have a "perfect" track record of 10 heads. If you can double your money every three to five years (basically, the outer limit of what is humanly possible), you can turn $1,0... |
Need a formula to determine monthly payments received at time t if I'm reinvesting my returns | How does compounding of annual interest work? answers this question. It's not simple compound interest. It's a time value of money calculation similar to mortgage calculations. Only the cash flow is the other way, a 'deposit' instead of 'payment'. When using a finance calculator such as the TI-BA35 (Note, it's no longe... |
Index funds with dividends? | nan |
What does ES1 refer to in this picture? | That looks very much like an S&P 500 E-Mini index future. However, ES1 is a strange symbol. Futures have the month of expiry encoded in their symbol as well: http://commodities.about.com/od/understandingthebasics/ss/futurescontract_3.htm For example, the September 2011 future in this series would be ESU1. I'm not ve... |
Is it commonly possible to buy an “Option for a Mortgage at a specific Interest Rate”? | I think the answer to this is just "no." It's not commonly available to have the option to obtain a mortgage at a fixed amount and fixed rate, especially over a timeframe like the 5 yrs you mentioned in your question. There would be several practical problems with such a thing, including but not limited to: As was no... |
Any tax advantage for registering a residential house as a business? (I want to apply legal pressure to my landlord) | To the best of my knowledge, in California there's no such thing as registering a place as a business. There's zoning (residential/commercial/mixed/etc), and there's "a business registered at a place". But there's no "place registered as a business". So you better clarify what it is that you think your landlord did. It... |
Is it worth working at home to earn money? Can I earn more money working at home? | It completely depends on what type of work you intend to do. Are you intending to run/setup your own business? Or stay with your current employer, but work from home instead of going to the office? If thats the case, then yes it is a good idea, since you will save on commuting costs amongst other things If you are aski... |
Rental Properties: Is it good or bad that I can't find rental listings on that street? | Finding Zero is the expected result of your Craigslist check. You will have to do a lot more research. A local agent can help you determine the number of days they stay on the market before they are rented. They can also help determine the spread between purchase costs and rental cost. You will also have to figure in t... |
Might I need a credit score to rent, or for any other non-borrowing finances? | Credit scores are not such a big deal in Canada as they are in the US and even some European countries. One reason for this: the Social Insurance Number (SIN number) isn't used for so many purposes like the Social Security Number (SSN) in the US. The SIN number isn't even required to get credit (but with some excepti... |
A University student wondering if investing in stocks is a good idea? | For most people, investing in the stock market directly is one of the last things to do. That's not to say you shouldn't, but rather that there are other things to consider as well. Start with automatic monthly deposits to a liquid account such as savings or money market. The morale boost you get from seeing the balan... |
Is it okay to be married, 30 years old and have no retirement? | The question regarding your snapshot is fine, but the real question is what are you doing to improve your situation? As John offered, one bit of guidance suggests you have a full year's gross earnings as a saving target. In my opinion, that's on the low side, and 2X should be the goal by 35. I suggest you look back, ... |
New car price was negotiated as a “cash deal”. Will the price change if I finance instead? | So there are a few angles to this. The previous answers are correct in saying that cash is different than financing and, therefore, the dealer can rescind the offer. As for financing, the bank or finance company can give the dealership a "kickback" or charge a "fee" based on the customer's credit score. So everyon... |
Is there a White-list of Trusted Online Vendors? | I'm going to go with "ridiculous notion." :) The vast majority of businesses are legitimate, run by honest people trying to earn a living for themselves and their employees. These days, almost all of them accept credit cards. Crooked businesses are a very small minority. When a bad business over charges you, you dis... |
Is debt almost always the cause of crashes and recessions? | A lack of trust in the regulator can also stop everyone trading. If you don’t believe the bank notes you are getting paid with are real, why do any work? |
Should one only pursue a growth investing approach for Roth IRAs | What asset allocation is right for you (at the most basic the percentage if stocks vs bonds; at the advanced level, percentage of growth vs value, international vs domestic etc) is a function of your age, retirement goals, income stability and employment prospects until retirement. Roth IRA is orthogonal to this. Now... |
Scammer wants details and credentials for my empty & unused bank account. What could go wrong? | First off, do not ever tell someone your password. Nobody who actually works for the bank would need your password to access the account. Also, it may or may not be a scam (it almost assuredly is), but it is not a good idea to let someone use your bank account in your name. What if they use your account to launder mone... |
Companies that use their cash to buy back stock, issue dividends, etc. — how does this this typically affect share price? | So far buying of own by own companies like Apple, is concerned it will surely raise the price of the script. At some level, the share prices are a factor of supply and demand at a given price. Apple being a very demanded script, its supply in the market goes down with the buy back. After a while, this will surely make ... |
How to estimate federal and state taxes likely to be due on my side income? | Most states that have income tax base their taxes on the income reported on your federal return, with some state-specific adjustments. So answering your last question first: Yes, if it matters for federal, it will matter for state (in most cases). For estimating the tax liability, I would not use the effective rate b... |
Using multiple bank accounts | There is nothing conceptually wrong with it. If you like it that way, go ahead. The only thing to watch out for is bank policies that effectively penalize having many small accounts. For instance, some banks charge you a fee for checking accounts with a balance below a certain minimum, but will waive the fees for acc... |
Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan? | The key to understanding a mortgage is to look at an amortization schedule. Put in 100k, 4.5% interest, 30 years, 360 monthly payments and look at the results. You should get roughly 507 monthly P&I payment. Amortization is only the loan portion, escrow for taxes and insurance and additional payments for PMI are ext... |
Why can't the government simply payoff everyone's mortgage to resolve the housing crisis? | Government purchases of mortgages simply transfers the debt burden from households to the sovereign. Taxes pay sovereign debt (65% of whom are homeowners anyway). No debt has been restructured -- it's now paid via taxes instead of monthly mortgage payments -- and those paying include persons who responsibly avoided hou... |
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... |
MasterCard won't disclose who leaked my credit card details | File a John Doe lawsuit, "plaintiff to be determined", and then subpoena the relevant information from Mastercard. John Doe doesn't countersue, so you're pretty safe doing this. But it probably won't work. Mastercard would quash your subpoena. They will claim that you lack standing to sue anyone because you did not... |
Can you explain the mechanism of money inflation? | The mechanism of supply and demand is imperfect. Producers don't know exactly how many purchasers/consumers for a good there are. Some goods, by their nature, are in short supply, and some are plentiful. The process of price discovery is one where (in a nominally free market) producers and purchasers make offers and ... |
If I want to take cash from Portugal to the USA, should I exchange my money before leaving or after arriving? | My experience (from European countries, but not Portugal specifically) is that it's better to change in the European country, as many banks will give you US $ as a matter of course, while in the US (insular place that it is), it can be rather difficult to find a place to exchange money outside an international airport.... |
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. |
Covered calls: How to handle this trade? | You are NOT responsible for liquidating the position. You will either end up retaining your 100 sh. after expiration, or they will be called away automatically. You don't have to do anything. Extending profitability can mean different things, but a major consideration is whether or not you want to hold the stock or n... |
Can paying down a mortgage be considered an “investment”? | I think there are a few facets to this, namely: Overall, I wouldn't concentrate on paying off the house if I didn't have any other money parked and invested, but I'd still try to get rid of the mortgage ASAP as it'll give you more money that you can invest, too. At the end of the day, if you save out paying $20k in int... |
Paying off loans early, or is there some way to reduce extortionate interest charges? | My husband made a similar car loan decision when he was younger and didn't have an established credit history / favourable credit rating. As a result, he ended up paying triple what the car was worth, because of the interest. When we consolidated our finances, this ugly loan was first on our list of priorities to chan... |
Where to invest, that compounds interest more than annual? | Securities (things you can buy on the stock market) that pay dividends usually pay every quarter (every three months), but some pay every month. (For example: PGF pays dividends each month.) IF you reinvest your dividends back into the stock then you will be compounding your return. I use the feature at Scottrade to ... |
How can I avoid international wire fees or currency transfer fees? | Several possibilities come to mind: Several online currency-exchange brokers (such as xe.com and HiFx) offer very good exchange rates and no wire transfer fees (beyond what your own bank might charge you). Get French and American accounts at banks that are part of the Global ATM alliance: BNP Paribas in France and Ban... |
Oil Price forcasting | In layman's terms, oil on the commodities market has a "spot price" and a "future price". The spot price is what the last guy paid to buy a barrel of oil right now (and thus a pretty good indicator of what you'll have to pay). The futures price is what the last guy paid for a "futures contract", where they agreed to bu... |
Iraqi Dinars. Bad Investment, or Worst Investment? | Once a currency loses value, it never regains it. Period. Granted there have been short term periods of deflation, as well as periods where, due to relative value fluctuation, a currency may temporarily gain value against the U.S. dollar (or Euro, Franc, whatever) but the prospect of a currency that's lost 99.99% of it... |
Acquiring first office clothes | Like the other answers, I'm not entirely sure the equivalent exists in your country. But in the US there are thrift stores run by charities like GoodWill or the Salvation Army that sell clothes for very little money. When my wife was in a similar situation very early in her career she learned the trick of driving to t... |
What are the tax guidelines for a Canadian freelancer working for a US company? | I do NOT know the full answer but I know here are some important factors that you need to consider : Do you have a physical location in the United States? Are you working directly from Canada? With a office/business location in the United States your tax obligation to the US is much higher. Most likely you will owe som... |
If a mutual fund did really well last year, then statistically speaking, is it likely going to do bad this year? | This can be answered by looking at the fine print for any prospectus for any stock, bond or mutual fund. It says: "Past performance is not an indicator of future performance.". A mutual fund is a portfolio of common stocks, managed by somebody for a fee. There are many factors that can drive performance of a fund up or... |
What happened when the dot com bubble burst? | It's tough to share exactly what happened. Go to yahoo and look at the chart for Cisco from 1990 to 2003 or so. From a split adjusted 8 cents a share, it peaked at just under $80 in March 2000, up by a factor of 1000. People were buying in thinking this stock would continue to rise at this pace, but logic says that's p... |
My Brokerage statement shows “Adjusted due to previous wash sale disallowed loss” what does this mean? | Summary of accepted answer: Your "loss" will not count as a loss (to the IRS). Which means no tax deduction for a "short-term capital loss" (on that sale). Instead, the IRS simply pretends like you had paid less for the stock to begin with. |
What are the benefits of opening an IRA in an unstable/uncertain economy? | Regarding investing in gold vs. stocks, I don't think I could say it better than Warren Buffett: You could take all the gold that's ever been mined, and it would fill a cube 67 feet in each direction. For what that's worth at current gold prices, you could buy all -- not some -- all of the farmland in the Uni... |
What is value investing? What are the key principles of value investing? | Fama-French would be a couple of names if you want to look at this from a value/growth dichotomy. A simplified form of this was to take the stocks with a lower Price/Book Value that would be the value stocks while the others would be the growth. The principle is that some of the beaten-down stocks will appreciate mor... |
Is an analyst's “price target” assumed to be for 12 months out? | I don't think you can always assume a 12-month time horizon. Sometimes, the analyst's comments might provide some color on what kind of a time horizon they're thinking of, but it might be quite vague. |
Should I invest in a Health Insurance +1 policy from my Employer? | If I read your figures correctly, then the cost difference is negligible. ($1.84 difference) The main determining factor, I'd think, would be the coverage. Do you get more, or less, coverage now than you would if you went together on the same plan? You'd both be covered, but what is the cap? Plans, and employer contr... |
Exercise a put option when shorting is not possible | You can buy a put and exercise it. The ideal option in this case will have little time premium left and very near the money. Who lent you the shares? The person that sold you the option! In reality, when you exercise, assignment can be random, but everything is [supposedly] accounted for as the option seller had to pu... |
Does revenue equal gross profit for info product business? | What about web-hosting fees? Cost of Internet service? Cost of computer equipment to do the work? Amortized cost of development? Time for support calls/email? Phone service used for sales? Advertising/marketing expenses? Look hard--I bet there are some costs. |
Why would you elect to apply a refund to next year's tax bill? | If you expect your taxes to be higher next year, it saves you the trouble of sending estimates or changing the withholding levels. But yes, its basically a free loan you're giving to the government. |
401k Rollover - on my own or through my financial advisor? | Call up vanguard and tell them you want to do a rollover. They walk you through the process. Spend some time on reading up on asset allocation and benefits of indexing. 1.5% every year is steep and what do you have in return? The advisor's word that he'll make it up. How much did he manage to return during the la... |
What does “Yield Curve” mean? | Great question! A Yield Curve is a plot of the yields for different maturities of debt. This can be for any debt, but the most common used when discussing yield curves is the debt of the Federal Government. The yield curve is observed by its slope. A curve with a positive slope (up and to the right) or a steepening c... |
How is gold shared in worldwide economies? | I think you are asking a few questions here. Why is gold chosen as money? In a free market there are five characteristics of a good money: Gold and silver meet all five characteristics. Diamonds are not easily divisible which is why they are not normally used as money. Copper, Iron, and lead are not scarce enough - y... |
Are non-residents or foreigners permitted to buy or own shares of UK companies? | It's easy to own many of the larger UK stocks. Companies like British Petroleum, Glaxo, and Royal Dutch Shell, list what they call ADRs (American Depositary Receipts) on the U.S. stock exchanges. That is, they will deposit local shares with Bank of NY Mellon, JP Morgan Chase, or Citicorp (the three banks that do this t... |
taxes, ordinary income, and adjusted cost basis for RSUs | What happened is that they do not track (and report) your original cost basis for 1099-B purposes. That is because it is an RSU. Instead, they just reported gross proceeds ($5200) and $0 for everything else. On your Schedule D you adjust the basis to the correct one, and as a comment you add that it was reported on W2 ... |
What do brokerage firms do? | Off the top of my head, a broker: While there are stock exchanges that offer direct market access (DMA), they (nearly) always want a broker as well to back the first two points I made. In that case the broker merely routes your orders directly to the exchange and acts as a custodian, but of course the details heavily ... |
E*Trade commission | The commission is per trade, there is likely a different commission based on the type of security you're trading, stock, options, bonds, over the internet, on the phone, etc. It's not likely that they charge an account maintenance fee, but without knowing what kind of account you have it's hard to say. What you may be... |
Where can I find definitive terms for a preferred share? | This site has the best information I could find, other than a Bloomberg terminal: Quantumonline.com QUANTUMONLINE.COM SECURITY DESCRIPTION: SCANA Corp., 2009 Series A, 7.70% Enhanced Junior Subordinated Notes, issued in $25 denominations, redeemable at the issuer's option on or after 1/30/2015 at $25 per share plus... |
Administrator vs Broker vs Custodian for a Solo 401(k)? | Their paperwork should help you along. Schwab is the broker and custodian, you are the administrator. There's virtually no paperwork after the account is opened, until you hit $250K in value, and then there's one extra IRS form you need to fill out each year. See One-Participant 401(k) Plans for a good IRS descripti... |
Why do people use mortgages, when they could just pay for the house in full? | Besides all of the other answers, I will point out that many people simply don't have enough cash sitting around to buy a home outright. It would take many years (or even decades) for the average family to accumulate the necessary cash. Also, while you are pinching your pennies for years in an attempt to save up for y... |
Is stock in a private corporation taxable? | This stock is the same as any other, but you need to keep clear in your head that you and your company are now different entities. You (the person) will pay tax on capital gains and losses when you sell any stock that you hold in your own name. You'll also owe "regular" tax if you draw a salary, etc. The fact that i... |
Why buy insurance? | One reason is that insurance gives you tranquility. Without insurance, you live with the uncertainty of not knowing if/when disaster is going to strike. Insurance allows you to trade this uncertainty for regular monthly/yearly payments. |
LLC Partnership Earned Income vs. Partnership Share | Why would you file four K-1s for each partner? You file one K-1 per partner, on which you report the total of income attributed to that partner. It shouldn't and cannot "vary". There's no variables here, the income you report is the income already earned and attributed to that partner. What's there to vary? How you dec... |
Strategy to pay off car loan before selling the car | As far as ease of sale transaction goes you'll want to pay off the loan and have the title in your name and in your hand at the time of sale. Selling a car private party is difficult enough, the last thing you want is some administrivia clouding your deal. How you go about paying the remaining balance on the car is r... |
Ways to get individual securities from ETF's | Assuming that the ETF is tracking an index, is there a reason for not looking at using details on the index? Typically the exact constituents of an index are proprietary, and companies will not publish them publicly without a license. S&P is the heavyweight in this area, and the exact details of the constituents at a... |
Stocks in India, what is the best way to get money to US | Convert the money into United States Dollars, put it in an NRE account in India and get 5% per annum for the USD. |
Which is better when working as a contractor, 1099 or incorporating? | There is some benefit to creating a corporation or LLC -- you theoretically have a liability shield. As Michael Pryor points out in his answer, though, there will probably be little difference if you get sued. Operating the corporation or LLC incurs some extra costs: you have to pay annual fees to the state, and there'... |
A friend wants to use my account for a wire transfer. Is this a scam or is it legitimate? | In many countries it is a legal requirement or in some other way mandatory for the banks to ban the owner(s) of an account to allow a third party to use the account. In some countries if you willing give someone access in this way you get no compensation what so ever and you'll be lucky if they catch the crooks and eve... |
How can I get free or discounted checks for my bank account? | Although not required, #2 would work best if you used magnetic ink... That is an extra cost which you may or may not want to pay for. You can often get a free checking account and a free set of checks if you can meet the minimum requirements. This often means a higher average daily balance, direct deposit, or some comb... |
I'm only spending roughly half of what I earn; should I spend more? | I have an idea. Keep saving what you are and think "Early Retirement". Work for 20 years, then do whatever you want 40 hours a week. If your satisfied with your current lifestyle, start thinking of your bigger long term financial goals and when you want to accomplish them by. Maybe you can accomplish these sooner t... |
Finance, Cash or Lease? | Now, to buy in full (and essentially have zero savings), buy in part (£10000 deposit, followed by a loan of £4000) or PCP/HP more of the value? So, you are assessing if the car is worth having with either none or only 4,000 in savings. This is the most critical information you have provided. My outright opinion is to... |
Should I buy or lease a car given that its not a super luxury car and I only drive 15 miles/d on avg? | Alternative: buy a recent-model used car in good condition. Or buy an older car in good condition. Let someone else pay the heavy depreciation that happens the moment you drive a new car off the dealer's lot. |
Is it safe to take a new mortgage loan in Greece? | Please clarify your question. What do you mean by "..loan in Greece"? If you are referring to taking a mortgage loan to purchase residential property in Greece, there are two factors to consider: If the loan originates from a Greek bank, then odds are likely that the bank will be nationalized by the government if Greec... |
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