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Market Hours and Valuations | Company values (and thus stock prices) rely on a much larger time frame than "a weekend". First, markets are not efficient enough to know what a companies sales were over the past 2-3 days (many companies do not even know that for several weeks). They look at performance over quarters and years to determine the "valu... |
The doctor didn't charge the health insurance in time, am I liable? | If you read all that paperwork they made you fill out at the emergency room, there is probably something in there explicitly stating that you owe any bills you rack up regardless of what happens with the insurance company. They generally have a disclaimer that filing for you with your insurance company is a courtesy se... |
Why do deep in the money options trade below their intrinsic value? | You made 94$ on an investment of 554.80 *100 = 55480$ for an approx holding period of 1 year. So the % return is ~0.16%, which is not much better than the short term us treasury rate. The current 1 year treasury rate is 0.27%: http://ycharts.com/indicators/1_year_treasury_rate So yes, you have a risk free portfolio, so... |
Best way to invest money as a 22 year old? | First off, monozok is right, at the end of the day, you should not accept what anyone says to do without your money - take their suggestions as directions to research and decide for yourself. I also do not think what you have is too little to invest, but that depends on how liquid you need to be. Often in order to ma... |
Should I pay off my credit card online immediately or wait for the bill? | I'm really going to go against the crowd here--paying it too fast could be a problem. The thing is you want them reporting that you paid the bill as agreed. To do that you need to pay the bills--which means you need to leave the charges there to get billed for. Paying less than the total is fine, paying as soon as th... |
Is a currency “hedged” ETF actually a more speculative instrument than an unhedged version? | I will just try to come up with a totally made up example, that should explain the dynamics of the hedge. Consider this (completely made up) relationship between USD, EUR and Gold: Now lets say you are a european wanting to by 20 grams of Gold with EUR. Equally lets say some american by 20 grams of Gold with USD. Their... |
Why buy insurance? | Discussions around expected values and risk premiums are very useful, but there's another thing to consider: cash flow. Some individuals have high value assets that are vital to them, such as transportation or housing. The cost of replacing these assets is prohibitive to them: their cashflow means that their rate of ... |
Paying off student loan or using that money for a downpayment on a house | I think there are two questions here: (a) Is it better to continue living with your parents while you save up for a bigger down payment on a house, or to move out as soon as possible? (b) Is it better to pay off a student loan and make a smaller down payment on the house, or to keep paying on the student loan and use t... |
What evidence is there that rising interest rates causes Canadian condo prices to go down? | In the US market at least, there is long-term evidence that there's no strong correlation between interest rates and house prices. A less detailed Canadian study found that house prices tended to increase when rates increase. One possible reason: interest rates can increase when the economy is doing well (needs less h... |
Possible to purchase multiple securities on 1 transaction? | No you can't, as you would have to have a different order for each security. Usually the bigger the order the more the brokerage you would also pay. |
why is the money withdrawn from traditional IRA taxed at the ordinary income tax rate? | Basically, the idea of an IRA is that the money is earned by you and would normally be taxed at the individual rate, but the government is allowing you to avoid paying the taxes on it now by instead putting it in the account. This "tax deferral" encourages retirement savings by reducing your current taxable income (pro... |
What does HMRC (the UK tax agency) view as valid expenses for travel? | Food is almost never a valid expense. Reason for it is simple - if you were not conducting business you would have to eat too. Ad 1. I don't see why travel in that case would not be a valid expense, as the only reason for you to travel there is for business reasons. Ad 2. Unlikely as there is a duality of purpose. So w... |
Why do people buy insurance even if they have the means to overcome the loss? | This person could buy another car at any moment without any money problems, so I don't really see any point in insuring, especially with such a ridiculously high price compared to the extremely low risk. Convenience. If you self-insure, then an accident means that you have to make arrangements to get the car towed, fi... |
How to increase my credit score | Do you have the option of paying cash for the phone? To answer your question though: Essentially, you have to use credit RESPONSIBLY. That doesn't mean go get a slew of loans and pay them off. As Ratish said, a credit card is a good start. I basically buy everything with a card and then pay it off every month when the ... |
How does the person lending shares to the short selller protect themselves if the short sellers are correct? | Lending of shares happens in the background. Those who have lent them out are not aware that they have been lent out, nor when they are returned. The borrowers have to pay any dividends to the lenders and in the end the borrowers get their stock back. If you read the fine print on the account agreement for a margin acc... |
What are the differences between an investment mortgage and a personal mortgage? | Banks consider investment mortgages (and any mortgage where you don't live in the property), as a riskier investment than an owner occupied, home collateral mortgage. The sources of increased risk range from concerns that you will screw up as a landlord, your tenants will destroy the place, you won't have tenants and c... |
How to secure one's effort when working on a contract? | Anytime you do work without any payment until the work is complete, you are effectively extending credit to the party receiving your service. How much credit you are willing to extend will vary greatly, depending on the amount and the trustworthiness of the party. For example, if you are charging $50 for something, you... |
Why is the price of my investment only updated once per day? | Mutual funds are collections of investments that other people pay to join. It would be simpler to calculate the value of all these investments at one time each day, and then to deem that any purchases or sales happen at that price. The fund diversifies rather than magnifies risk, looking to hold rather than enjoy a q... |
Investor returns from crowdfunding | Crowdfunding can be a legitimate means of funding very small startups. It is an innovative, but obviously risky, method of raising small amounts of money. As such it is now regulated by the SEC under "Regulation Crowdfunding" They have published guides for these types of business startups to help them with required dis... |
Why can't I short a stock that sells for less than $5? Is there another way to “go short” on them? | If this is the initial transaction, the rules of a short margin account say that if you shorted 1000 share of ABC at $5/share your credit balance would be $5000 from the short plus you would have to put up yourself $5000 cash or $10,000 of marginal securities. So this is not really leveraging using margin. You have to ... |
Which is the most liquid market for trading? | I would rate index futures, in particular the US index futures (e.g. the S&P 500 future) as the most liquid markets after the forex markets. |
New to options trading and need help understanding an options spread risk graph. What am I missing? | Suppose the stock is $41 at expiry. The graph says I will lose money. I think I paid $37.20 for (net debit) at this price. I would make money, not lose. What am I missing? The `net debit' doesn't have anything to do with your P/L graph. Your graph is also showing your profit and loss for NOW and only one expiration. Yo... |
To rebalance or not to rebalance | An asset allocation formula is useful because it provides a way to manage risk. Rebalancing preserves your asset allocation. The investment risk of a well-diversified portfolio (with a few ETFs or mutual funds in there to get a wide range of stocks, bonds, and international exposure) is mostly proportional to the asset... |
how can a US citizen buy foreign stocks? | it looks like using an ADR is the way to go here. michelin has an ADR listed OTC as MGDDY. since it is an ADR it is technically a US company that just happens to be a shell company holding only shares of michelin. as such, there should not be any odd tax or currency implications. while it is an OTC stock, it should se... |
Can I donate short-stock to charity? | With a short position you make your money (profit) when you buy the stocks back to close the position at a lower price than what you bought them at. As short selling is classed as speculation and not investing and you at no time own any actual assets, you cannot donate any short possition to charity. If you did want to... |
How should I record invoices in foreign currency in GNUCash? | It depends upon in how many currencies your business is denominated. If your business is solely dependent upon this one payer, it's best to start up a new set of books in USD. All accounts should be translated from CAD from a date preceding the USD activity. The CAD books should be closed, and all should be done with... |
How to prevent myself from buying things I don't want | Nathan's answer was a +1 from me. The answer is not always simple. Having the money available is surely the first step. Using Pete's process aligns with this. Another thought is depending where you are in your finances, delay by a day for every $100 in cost. e.g. For a $1000 purchase, sleep on it for 10 days. Adjust t... |
Is accident insurance worth it for my kids who play sports | The general answer to any "is it worth it" insurance question is "no," because the insurance company is making a profit on the insurance.* To decide if you want the insurance, you need to figure out how much you can afford to pay if something happens, how much they cover, and how badly you want to transfer your risk to... |
How to learn about doing technical analysis? Any suggested programs or tools that teach it? | A great way to learn is by watching then doing. I run a very successful technical analysis blog, and the first thing I like to tell my readers is to find a trader online who you can connect with, then watch them trade. I particularly like Adam Hewison, Marketclub.com - This is a great website, and they offer a great de... |
Most common types of financial scams an individual investor should beware of? | If an offer "is only valid right now" and "if you don't act immediately, it will expire" that is almost always a scam. |
Where to find out conversion ratio between General Motors bonds and new GM stock? | Depending on the specific bond, here is the official info. http://www.wilmingtontrust.com/gmbondholders/index.html Bottom line, it won't be determined for a while yet, as the filing with the Bankruptcy Court still has lots of blanks. |
Visitor Shopping in the US: Would I get tax refund? Would I have to pay anything upon departure? | Sales tax and luxury tax is what you will have to pay tax wise, and they are non-refundable (in most cases but the rules vary area to area). This really tripped up some friends of mine I had come from England. The rules are complicated and regional. Sales tax is anywhere from 0% to 10.25% and are not usually applied... |
want to refinance FHA loan, may move out unexpectedly and would like to keep as investment property, what are my options? | Streamline refinance is the way to go. You don't have to stay with the same bank to do so either. The big advantage of the streamline is the original appraisal is used for the refinance, so as long as you didn't have negative amortization(impossible in FHA anyways), you're good to go. It will be much less paperwork ... |
Car Loan upside down--refinance before selling? | Carmax will be interested in setting a price that allows them to make money on the reselling of the vehicle. They won't offer you more than that. The determination of the value compared to the BlueBook value is based on condition and miles. The refinancing of the auto loan could lower your monthly payment, but may not ... |
How can I predict which way mortgage rates are moving? | If economic conditions are weakening, i.e. unemployment rising, business and consummer confidence dropping, etc., you can expect interest rates and thus mortgage rates to drop. If economic conditions are strengthening you can expect interest rates and thus mortgage rates to start rising. As you are in the US, and with ... |
What is a maximum amount that I can wire transfer out of US? | The limit, if any, would be established by your financial institutions. You would need to contact both your sending and receiving bank to ascertain any limitation they impose on wire transfers. Generally, taxes aren't imposed on transference of funds between accounts you own, but I'm not familiar with tax in Thailand a... |
Stability of a Broker: What if your broker goes bankrupt? Could you lose equity in your account? | Look at the link to the SIPC. I don't know exactly what you mean by "runs out of funds," but the SIPC will replace shares of stock stolen from your account, and up to $100,000 in cash. The real risk is when a shady brokers sells you shares in a stock that becomes worthless, that's when "buyer beware" kicks in. No help... |
What's so hard about a mutual fund manager pricing their mutual fund? | Given that a mutual fund manager knows, at the end of the day, precisely how many shares/units/whatever of each investment (stock, equity, etc.) they own, plus their bank balance, It is calculating this given. There are multiple orders that a fund manager requests for execution, some get settled [i.e. get converted in... |
Why do shareholders participate in shorting stocks? | There are two primary reasons shares are sold short: (1) to speculate that a stock's price will decline and (2) to hedge some other related financial exposure. The first is acknowledged by the question. The second reason may be done for taxes (shorting "against the box" was once permitted for tax purposes), for arbit... |
How to minimise the risk of a reduction in purchase power in case of Brexit for money held in a bank account? | GBP has already lost part of his value just because of the fear of Brexit. An actual Brexit may not change GBP as much as expected, but a no-Brexit could rise GBP really a lot. |
Is there any instance where less leverage will get you a better return on a rental property? | There are two obvious cases in which your return is lower with a heavily leveraged investment. If a $100,000 investment of your own cash yields $1000 that's a 1% return. If you put in $50,000 of your own money and borrow $50,000 at 2%, you get a 0% return (After factoring in the interest as above.) If you buy an invest... |
How do you invest in real estate without using money? | This is one way in which the scheme could work: You put your own property (home, car, piece of land) as a collateral and get a loan from a bank. You can also try to use the purchased property as security, but it may be difficult to get 100% loan-to-value. You use the money to buy a property that you expect will rise in... |
Is it possible to make money by getting a mortgage? | In the Netherlands its cheaper in some cases to have a mortgage then to own a house. Example: If you own a house you pay more taxes (because you own something expensive you have to pay "eigendoms belasting" < owners tax). So if you instead of owning the house, keep the mortgage low and only pay the mortgage interest... |
Why do investors buy stock that had appreciated? | You seem to prefer to trade like I do: "Buy low, sell high." But there are some people that prefer a different way: "Buy high, sell higher." A stock that has "just appreciated" is "in motion." That is a "promise" (not always kept) that it will continue to go higher. Some people want stocks that not only go higher, but ... |
Owner-Financed home sale or Land Contract — how to handle the transaction and the ongoing entity? | You need to talk to a local attorney specializing in real estate matters. The contract needs to ensure that your interests are protected. How you do that is too complex for an answer here and varies from state to state, or even jurisdictions within a state. There are all sorts of options. Sometimes deals like this are ... |
Why does Yahoo Finance and Google Finance not match historical prices? | I work on a buy-side firm, so I know how these small data issues can drive us crazy. Hope my answer below can help you: Reason for price difference: 1. Vendor and data source Basically, data providers such as Google and Yahoo redistribute EOD data by aggregating data from their vendors. Although the raw data is taken ... |
First job: Renting vs get my parents to buy me a house | Rent. You have no idea whether you will still be in the same part of the country five years from now; you may not even be in the same country. A house is a boat anchor you really do not need or want at this time. It's also a set of obligations you may not want to take on yet. And buying is not automatically more finan... |
Dealership made me the secondary owner to my own car | You are co-signer on his car loan. You have no ownership (unless the car is titled in both names). One option (not the best, see below) is to buy the car from him. Arrange your own financing (take over his loan or get a loan of your own to pay him for the car). The bank(s) will help you take care of getting the titl... |
How to manage paying expenses when moving to a weekly pay schedule and with a pay increase? | This is really just a matter of planning. It's good that you don't want the train to go off the rails but really you just need to budget your fixed expenses. I do this by having two checking accounts. One account gets a direct deposit to cover all of my fixed expenses, the other is my regular checking account. Tak... |
Consumer Loans vs Mortgages | I went here: Consumer Loan Law. It seems that a consumer loan is anything other than a business loan or mortgage. However, in California it seems to include a mortgage. It's a bit weird to see that a HEL can be considered a consumer loan even if it is the primary or the only loan on a property. Getting a HEL can be a... |
Why do stocks gap up after a buyout is announced? | The "random walk" that you describe reflects the nature of the information flow about the value of a stock. If the flow is just little bits of relatively unimportant information (including information about the broader market and the investor pool), you will get small and seemingly random moves, which may look like a ... |
Who can I get to help me roll my 401(k) into an IRA when I live overseas? | This is more of a general answer about your situation than a specific answer to your question. You might consider getting a SIP telephone number based in the US, or an even easier to use IP based phone number. That way you can use it through your Internet connection and make eaiser calls to US companies that you still... |
Why is it rational to pay out a dividend? | Firstly, investors love dividend paying company as dividends are proof of making profit (sometimes dividend can be paid out of past profits too) Secondly, investor cash in hand is better than potential earnings by the company by way of interest. Investor feels good to redeploy received cash (dividend) on their own ... |
what is a mortgage gift exchange? | The issue is that the lender used two peoples income, debts, and credit history to loan both of you money to purchase a house. The only way to get a person off the loan, is to get a new loan via refinancing. The new loan will then be based on the income, debt, and credit history of one person. There is no paperwork you... |
Why doesn't the emerging markets index reflect GDP growth? | GDP being a measurement for an economy's growth and with the stock market being driven (mostly) by company profits you would expect a tight correlation between GDP growth and stock market performance. After all, a growing economy should lead to a corresponding increase in profit right? But the stock market is heavily i... |
Why does money value normally decrease? | It is in circles. Today Money is fiat money. From economic stand point a moderate inflation is good. It there is near zero inflation or deflation, then economy would come to standstill and would stagnate. Hence everything has to becomes expensive. This keeps the economy in motion. House or Gold does increase in value o... |
How can the Samsung Upgrade Programme offer 0% APR? | This is more a question about economics than about personal finance. The answer, though, is straight-forward. Samsung makes enough profit on the phones that they are willing to eat the costs of a 0% loan, with the attendant risk of non-payment and the loss due to inflation. By offering financing, they expect to sell mo... |
Should I cancel an existing credit card so I can open another that has rewards? | Cancelled cards don't fall off the system for a long time, up to ten years. Card terms change, with notice of course, but it can happen at any time. I had a card with a crazy perk, 5% back in Apple Gift cards. This was pre-iPod days, but it was great to get a new computer every two years for free. But it was short liv... |
How many warrants do I need to exercise to get a stock? | No, you trade the warrant and the warrant price of $11.50 for one stock. The warrant is a little like an option, but with a longer term. If you buy a IPOA.WS warrant then that warrant gives you the option to buy one share of class A stock at $11.50 at a future date. If in the future, the stock is worth $20, then you m... |
Is there a way to set a stop for a stock before you own it? | Yes it is possible, as long as the broker you use allows conditional orders. I use CMC Markets in Australia, and they allow free conditional orders either when initially placing a buy order or after already buying a stock. See the Place New Order box below: Once you have selected a stock to buy, the number of shares y... |
What happens to a call option in a cash/stock acquisition? | I believe that your option contracts will become "non-standard" and will be for a combination of ACE stock and cash. The allocation between stock and cash should follow that of the acquisition parameters of the underlying - probably with fractional shares converted to cash. Hence 1 call contract for 100 shares of CB w... |
Why do 1099 forms take so long for brokerages to prepare and send out? | The simple answer is that brokerages have to close the books at the end of the year before they can send out the tax forms (what this entails is off topic for this site). I doubt that printing and mailing the forms takes very long. It is simply the process of reconciling the books so they don't have to send out correct... |
W8-BEN for an Indian Citizen | According to the Form W-8BEN instructions for Part II, Line 10: Line 10. Line 10 must be used only if you are claiming treaty benefits that require that you meet conditions not covered by the representations you make on line 9 and Part III. For example, persons claiming treaty benefits on royalties must complete this... |
Lost credit card replaced with new card and new numbers. Credit score affected? | The true answer is it depends because it is up to the credit card issuer to follow the right path when issuing a replacement credit card. http://www.bankrate.com/finance/credit-cards/will-replacement-card-hurt-my-score.aspx Typically, issuers will transfer the account history to the new trade line, says Barry Paperno,... |
Financing a vehicle a few months before I expect to apply for a mortgage? | Buy a modest vehicle with a manageable payment. Keep the payment low enough ($200-300/month) to keep your DTI (Debt-To-Income) ratio clear. The short-term ding to your credit for new credit should disappear in 3-6 months (your time horizon). Having a mix of credit is part of the credit scoring model, so having an in... |
Why do new car loans, used car loans, and refinanced loans have different rates and terms? | New car loans, used car loans, and refinances have different rates because they have different risks associated with them, different levels of ability to recoup losses if there is a default, and different customer profiles. (I'm assuming third party lender for all of these questions, not financing the dealer arranges,... |
Annuities question - Equations of value | These are the steps I'd follow: $200 today times (1.04)^10 = Cost in year 10. The 6 deposits of $20 will be one time value calculation with a resulting year 7 final value. You then must apply 10% for 3 years (1.1)^3 to get the 10th year result. You now have the shortfall. Divide that by the same (1.1)^3 to shift the ... |
Perform exercise-and-hold AND exercise-and-sell-to-cover? | The simplest thing to do here is to speak to your employer about what is allowed. This should be spelt out in your company's "Stock Options Plan" documentation. In particular, this document will include details of the vesting schedule. For example, the schedule may only allow you to exercise 25% in the first year, 2... |
Exercise an out of the money option | For listed options in NYSE,CBOE, is it possible for an option holder to exercise an option even if it is not in the money? Abandonment of in-the-money options or the exercise of out-of-the-money options are referred as contrarian instructions. They are sometimes forbidden, e.g. see CME - Weekly & End-of-Month (EOM) Op... |
How to allocate profit and loss in partnership where one partner's activities are profitable and the other's aren't? | You should have a partnership agreement of some sort. The reason partnership agreements exist is so nobody can change the game because of the outcome. I'd say the most typical partnership agreement is that everyone gets an equal cut, meaning that everyone also makes an equal contribution. If you have start up expen... |
Is losing money in my 401K normal? | My two cents: I am a pension actuary and see the performance of funds on a daily basis. Is it normal to see down years? Yes, absolutely. It's a function of the directional bias of how the portfolio is invested. In the case of a 401(k) that almost always mean a positive directional bias (being long). Now, in your case I... |
Options for dummies. Can you explain how puts & calls work, simply? | So, child, your goal is to make money? This is usually achieved by selling goods (say, lemonade) at a price that exceeds their cost (say, sugar, water and, well, lemons). Options, at first, are very much same in that you can buy the right to engage in a specific future trade. You make money in this situation if the eve... |
Freehold and Leasehold for Pub/Bar? | In the strictest sense of the words, Freehold and leasehold mean what you think they do. Freehold is that you own it outright and leasehold is a rental situation. That being said, there are scenarios like what Peter K. mentioned in his comment, where you're purchasing the building and business outright, but the land it... |
Is it better to use DRIP or invest when stock drops before ex-date? | The benefit of a dividend reinvestment program is you, generally, don't pay transaction costs or commissions and you don't have to remember to do it. Whether or not you may be able to eek out a little more by managing this yourself is a crapshoot and the equivalent of timing the market. If you're so good at timing t... |
How to read DOJI chart pattern correctly? | Candle stick patterns are generally an indication of possible short term changes in price direction (if a reversal pattern). A doji is such a reversal candle, and should be read as there could be a short term change in the direction of price action. A doji is most effective at peaks or troughs, and the outcome can be a... |
hardship withdrawal | With respect to the 401(k). Before taking a hardship withdrawal, one must first deplete the ability to take any 401(k) loans available. This is a regulation. The 401(k) loan limit is the lesser of $50k, 50% your vested balance, or $50k minus the highest loan balance within the last year. Here's the good news: it is not... |
What's the best way to make money from a market correction? | Do you want to do it pre or post correction? If you're bearish on the market the obvious thing to do is short an index. I would say this is kind of dumb. The main problem is that it may take months or years for the market to crash, and by then it will have gone up so much that even the crash doesn't bring you profit, a... |
What is a good way to save money on car expenses? | Manage the fuel consumption price: check the pattern of fuel prices if you can for your area. Some areas have weekly changes which are somewhat predictable and some sites will even predict the minimum price for the next day. Some other areas will have a discount fuel day. Switch to diesel: fuel consumption by diesel... |
Making $100,000 USD per month, no idea what to do with it | If you already have 500k in a Schwab brokerage account, go see your Schwab financial consultant. They will assign you one, no charge, and in my experience they're sharp people. Sure, you can get a second opinion (or even report back here, maybe in chat?), but they will get you started in the right direction. I'd expect... |
Setting up auto-pay. Should I use my bank that holds mortage or my personal bank? | Depending on your bank you may receive an ACH discount for doing automatic withdrawals from a deposit account at that bank. Now, this depends on your bank and you need to do independent research on that topic. As far as dictating what your extra money goes towards each month (early payments, principal payments, interes... |
What significant negative factors affect Yahoo's valuation? | There are two very large negative factors that affect Yahoo's valuation. The first is that their search business is in decline and continues to lose ground to Google and even Bing. There's no sign that they have any plan or product in the works to offset this decline, so there's tremendous uncertainty about the comp... |
Any experience with maxing out 401(k)? | On #1: One way to make it less painful is to "split" your raises between yourself and your 401k. That is, if you get a 2% raise, increase your contribution to the 401K by 1% and keep the other 1%. Keep doing this until you are maxed out. You won't miss money you never had nearly as much as money you were used to living... |
Capital gains tax: Retirement vehicle (IRA, 401k) vs. anything else? | Ben Miller's answer is very thorough, and I up voted it. I believe that the ability to rebalance without tax implications is very import, but there are two aspects of the question that were not covered: The 401K in many cases comes with a company match. Putting enough money into the fund each year to maximize the match... |
UK student loans, early repayment/avoiding further debt | I think you're right that from a pure "expected future value" perspective, it makes sense to pay this loan off as quickly as possible (including not taking the next year's loan). The new student loans with the higher interest rates have changed the balance enough that it's no longer automatically better to keep it goin... |
Options revisited: Gold fever | gold is incredibly volatile, I tried spreadbetting on it. During the month of its highest gain, month beginning to month end, I was betting it would go up - and I still managed to lose money. It went down so much, that my stop loss margin would kick in. Don't do things with gold in the short term its a very small an... |
Is freelance income earned by a U.S. citizen while living abroad subject to state income tax? | No state taxes, but Italy also has a favorable treaty with the US Federal Government. Look into to lowering your federal taxes to 5% ;) its a thick read, http://www.irs.gov/businesses/international/article/0,,id=169601,00.html and also try to determine if the Foreign Earned Income Exclusion applies to you, reducing you... |
Why is retirement planning so commonly recommended? | In addition to what others have said, I think it is important to consider that government retirement assistance (whatever it is called in each instance) is basically a promise that can be revoked. I talked to a retired friend of mine just yesterday and we got onto that subject; she mentioned that when she was young, th... |
Should I early exercise unvested ISOs when the FMV is above the strike price? | In the question you cited, I assumed immediate exercise, that is why you understood that I was talking about 30 days after grant. I actually mentioned that assumption in the answer. Sec. 83(b) doesn't apply to options, because options are not assets per se. It only applies to restricted stocks. So the 30 days start cou... |
Vanguard Target Retirement Fund vs. Similar ETF Distribution (w/ REIT) | It looks like an improvement to me, if for no other reason than lowering the expenses. But if you are around 35 years away from retirement you could consider eliminating all bond funds for now. They will pay better in a few years. And the stock market(s) will definitely go up more than bonds over the next 35 years. |
Why could rental costs for apartments/houses rise while buying prices can go up and down? | Average rent rates will typically rise and fall, and are market-dependent just like real estate. In the short term, a collapse in housing like the one we saw in 2008 can induce a spike in rental costs as people walk away or get foreclosed on, and move back into apartments. That then tends to self-adjust, as the people ... |
Buy securities at another stock exchange | In a simple statement, no doesn't matter. Checked on my trade portal, everything lines up. Same ISIN, same price(after factoring in FX conversions, if you were thinking about arbitrage those days are long gone). But a unusual phenomenon I have observed is, if you aren't allowed to buy/sell a stock in one market and tr... |
1.4 million cash. What do I do? | At 1.4 Million, you can definately afford a professional advisor who would give you the best advice taking into account all your goals and risk appetite. |
Investing $50k + Real Estate | I would say that, for the most part, money should not be invested in the stock market or real estate. Mostly this money should be kept in savings: I feel like your emergency fund is light. You do not indicate what your expenses are per month, but unless you can live off of 1K/month, that is pretty low. I would bump ... |
Reinvesting earnings increases the book value of equity? | The book value is Total Assets minus Total Liabilities and so if you increase the Total Assets without changing the Total Liabilities the difference gets bigger and thus higher. Consider if a company had total assets of $4 and total liabilities of $3 so the book value is $1. Now, if the company adds $2 to the assets, t... |
Paying Off Principal of Home vs. Investing In Mutual Fund | I'm probably going to get a bunch of downvotes for this, but here's my not-very-popular point of view: I think many times we tend to shoot ourselves in the foot by trying to get too clever with our money. In all our cleverness, we forget a few basic rules about how money works: It's better to have 0 debt and a small am... |
What's an economic explanation for why greeting cards are so expensive? | It'll all about the marketing. If you don't get a "real" greeting card for that important birthday or anniversary or whatever, the recipient may thing you're being cheap for using a card you printed out yourself. So you pay $6 for a card because you feel like you have to. Hallmark advertises with those sappy TV commerc... |
US citizen married to non-resident alien; how do I file taxes? | From what you've described, your spouse is a non-resident alien for US tax purposes. You have two choices: Use the Nonresident Spouse Treated As Resident election and file as Married Filing Jointly. Since your spouse doesn't have, and doesn't currently qualify for, an SSN, he/she will need to apply for an ITIN together... |
Interactive Brokers Margin Accounts | You have to call Interactive Brokers for this. This is what you should do, they might even have a web chat. These are very broker specific idiosyncrasies, because although margin rules are standardized to an extent, when they start charging you for interest and giving you margin until settlement may not be standardized... |
Do performers pay taxes on comped meals and hotels? | My number one piece of advice is to see a tax professional who can guide you through the process, especially if you're new to the process. Second, keep detailed records. That being said, I found two articles, [1] and [2] that give some relevant details that you might find helpful. The articles state that: Many artists ... |
How to rebalance a portfolio without moving money into losing investments | Also, almost by definition rebalancing involves making more trades than you would have otherwise; wouldn't the additional trading fees you incurred in doing so reduce the benefits of this strategy? You forgot to mention taxes. Rebalancing does or rather can incur costs. One way to minimize the costs is to use the p... |
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