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Are there any catches with interest from banks? Is this interest “too good to be true”? | The 1.09% is per year, not per month, so you will be getting about 1K per year just for sitting around on your backside. Some important things. It is almost certain that you can earn a better interest rate elsewhere, if you are prepared to leave your 100K untouched. For example, even in Natwest you can earn 3.2% over t... |
I've got $100K to invest over the next 2 to 7 years. What are some good options? | Well, a proper answer needs a few more details: 1) What's your marginal tax bracket? (A CD is just plain silly for someone in a high tax bracket and in a high tax state) 2) What's your state of residence? 3) Do you have a 401k to draw on for a house loan in case of badly timed volatility? 4) What does will the rest of ... |
What are the reasons to get more than one credit card? | A friend of mine has two credit cards. He has specifically arranged with the card issuers so that the billing cycles are 15 days out of sync. He uses whichever card has more recently ended its billing cycle, which gives him the longest possible time between purchase and the due date to avoid interest. |
Do other countries have the equivalent of Australia's Negative Gearing? | In India, where I live, you can: In addition, housing loans are given priority status as well - bank capital requirements on housing loans is lower than for, say, a corporate loan or a loan against other kinds of collateral. That makes housing loans cheaper as well - you get a home loan at around 10% in India versus 15... |
Why doesn't Graham consider gold as an investment? | During Graham's career, gold and currency were the same thing because of the gold standard. Graham did not advise investing in currencies, only in bonds and stocks, the latter only for intelligent speculation. Graham died a couple of years after Nixon closed the gold window, ending the gold standard. Gold may be thoug... |
How to incentivize a real-estate broker to find me a cheap house | Shop lots of houses. Find at least three you want and start by offering a low price and working your way up. Your risk is that houses you would have liked get bought by someone else while you are negotiating, that is how you discover how much you actually have to pay to get a house. Brokers only get paid if a deal ... |
How bad is it to have a lot of credit available but not used? | I never give advice but I will now because you are getting poor advice. I run between 820 and 835 for a FICO score and have for years. I have a Discover, AMEX, VISA and MC. I have over 200,000 dollars of credit and I never EVER pay interest. I pay off the cards every month. So, does it matter how much credit you h... |
Does a company's stock price give any indication to or affect their revenue? | No. Revenue is the company's gross income. The stock price has no contribution to the company's income. The stock price may be affected when the company's income deviates from what it was expected to be. |
Pay off credit card debt or earn employer 401(k) match? | A matching pension scheme is like free money. No wait, it actually IS free money. You are literally earning 100% interest rate on that money the instant you pay it in to the account. That money would have to sit in your credit card account for at least five years to earn that kind of return; five years in which the pen... |
How can I find out what percentage the publicly traded shares (float) are of the total company? | The best place to start looking is the companies "Balance Sheet" (B/S). This would show you the total shares "outstanding." The quarterly B/S's arent audited but a good starting point. To use in any quant method, You also need to look a growth the outstanding shares number. Company can issue shares to any employee wi... |
Debit cards as bad as credit cards? | If your goal is to make it harder for you to use to make impulse purchases then YES. Having to always have cash for purchases will make you less likely to make impulse purchases you don't really need. |
How to exercise options when you they're worth more money than you have? [duplicate] | The fact that the option is deep in the money will be reflected in the market price of the option so you can just sell it at a profit. If there's a (n almost) guaranteed profit to be had, however, you can always find someone who will lend you the money to cover the exercise... they'll charge you interest, however! |
15 year mortgage vs 30 year paid off in 15 | Your calculations are correct if you use the same mortgage rate for both the 15 and 30 year mortgages. However, generally when you apply for a 15 year mortgage the interest rate is significantly less than the 30 year rate. The rate is lower for a number of reasons but mainly there is less risk for the bank on a 15 ye... |
How to get rid of someone else's debt collector? | Sue the debt collectors in small claims court. There are several example stories around the internet, but this is a well written one from the consumerist. If your phone is a cell phone: "it is against the law for a company to leave a pre-recorded message on your cell phone." In fact, the call frequency increased ... |
What is the cause of sudden price spikes in the FOREX market? | It depends on the currency pair since it is much harder to move a liquid market like Fiber (EURUSD) or Cable (GBPUSD) than it is to move illiquid markets such as USDTRY, however, it will mostly be big banks and big hedge funds adjusting their positions or speculating (not just on the currency or market making but also ... |
How much do big firms and investors affect the stock market? | The price of a company's stock at any given moment is established by a ratio of buyers to sellers. When the sellers outnumber the buyers at a given price, the stock price drops until there are enough people willing to buy the stock to balance the equation again. When there are more people wanting to purchase a stock ... |
How do I find the value of British Energy Nuclear Power Notes? | This BBC article says that nuclear power notes came about when the French energy company EDF purchased British Energy in 2008: The note changes in value with wholesale energy prices and power output levels from British Energy's existing nuclear stations. EDF Energy's website describes these notes under the section titl... |
Where to find turnover / average amount of time investors & mutual funds held stocks they purchased? | You can make a rough calculation of the annual turnover rate of stocks by calculating the institutional investors holding of that stock. Institutional investors are the only firms that are required to provide such data. The good this is they usually make the lion share of trading activity. On the other hand, this task ... |
Do retailers ever stock goods just to make other goods sell better? | There's a concept in retail called a "loss leader", and essentially it means that a store will sell an item intentionally at a loss as a way of bringing in business in the hope that while consumers are in the store taking advantage of the discounted item, they'll make other purchases to make up for the loss and generat... |
How to calculate 1 share movement | The price of a share has two components: Bid: The highest price that someone who wants to buy shares is willing to pay for them. Ask: The lowest price that someone who has a share is willing to sell it for. The ask is always higher than the bid, since if they were equal the buyer and seller would have a deal, make a tr... |
What effect would currency devaluation have on my investments? | My question boiled down: Do stock mutual funds behave more like treasury bonds or commodities? When I think about it, it seems that they should respond the devaluation like a commodity. I own a quantity of company shares (not tied to a currency), and let's assume that the company only holds immune assets. Does ... |
How can a 529 plan help me save for my child's college education? | If you're ready to start a 529 account, it makes a big difference which state you choose (some states have excessive fees). It doesn't have to be your own state, but some states give you tax incentives to stay in-state. What you need to do is check out Clark Howard's 529 Guide and check to see if your state is in the... |
Unmarried Couple Splitting up with Joint Ownership of Home | Despite the unmarried status, you need to see a lawyer. Essentially you have a business with this person owning a home as the asset, and a mortgage for which you are responsible for. A lawyer needs to examine any paperwork you have and with knowledge of your particular jurisdiction's laws can advise you on the proper... |
Tenant wants to pay rent with EFT | You could setup a Ally account to use solely for this. There is no minimum, no opening balance requirement, and you can do up to 6 transfers a month for free. This would partition your money from other accounts, while giving you the flexibility to move it to other accounts with ease. |
How to start investing for an immigrant? | I am in a similar situation (sw developer, immigrant waiting for green card, no debt, healthy, not sure if I will stay here forever, only son of aging parents). I am contributing to my 401k to max my employer contribution (which is 3.5%, you should find that out from your HR). I don't have any specific financial goal ... |
Is it worth buying real estate just to safely invest money? | There are two parts to this. Firstly, if you are also living in the property you have bought, then you should not consider it to be an investment. You need it to provide shelter, and the market value is irrelevant unless/until you decide to move. Of course, if your move is forced at a time not of your choosing then if ... |
Start Investing - France | In france you have several options: A good place to starts with: 1% as of may 2015 interest is low, but's money is 100% liquid (you can withdraw antime). You got slightly superior interest rates, and have to wire at least 45€ a month on it. It gives you lots of advantages if you use it to buy a house. You cannot use t... |
On paper I have 1 share in my company. How can I sell a smaller percentage of my company to another party? | There are 2 basic ways to have someone buy partial ownership of your company: OR If they buy shares that you already own, then their shares will have the same rights as yours (same voting rights, same dividend rights, etc.). If they buy shares newly created from the company, they could be either identical shares to wha... |
Are Certificates of Deposit worth it compared to investing in the stock market? | Another factor to consider, beyond the fact that growth and volatility go together, is that the times when many people will need to liquidate their investments will correlate with the times that many other people need to liquidate their investments, and such correlation will push down the immediate value of those inves... |
One of my stocks dropped 40% in 2 days, how should I mentally approach this? | You shouldn't be picking stocks in the first place. From New York Magazine, tweeted by Ezra Klein: New evidence for that reality comes from Goldman Sachs, via Bloomberg News. The investment bank analyzed the holdings of 854 funds with $2.1 trillion in equity positions. It found, first of all, that all those “sophistica... |
What is quotational loss in stock market? | In this instance "quotational" is a reference to a market price quote, not a mathematical function. Staunch "value investors" like Graham, Dodd, Munger, Buffett et al. believe there is a material difference between what security is "worth" and what the current market mood quotes as its price. You, the investor, perf... |
Why do US retirement funds typically have way more US assets than international assets? | To expand a bit on @MSalters's answer ... When I read your question title I assumed that by "retirement funds" you meant target-date funds that are close to their target dates (say, the 2015 target fund). When I saw that you were referring to all target-date funds, it occurred to me that examining how such funds modif... |
The Intelligent Investor: Northern Pacific Railway example | Without reading the source, from your description it seems that the author believes that this particular company was undervalued in the marketplace. It seems that investors were blinded by a small dividend, without considering the actual value of the company they were owners of. Remember that a shareholder has the righ... |
Is insurance worth it if you can afford to replace the item? If not, when is it? | As a rule, purchasing fairly priced (minus a spread) insurance on items you can afford to replace is a bad idea. However, in addition to the points mentioned in the previous answers, one should note that many types of insurance are UNDERpriced because on average people do not make claims even though they are entitled t... |
Will I be liable for taxes if I work for my co. in India for 3 months while I am with my husband in UK | Generally all the countries have similar arrangement regarding Income Tax, if you live in the UK for more than you stay in India for a given year then the Indian authorities won't be able to tax you but you might come under the UK Tax Law. |
Should I wait to save up 20% downpayment on a 500k condo? | The simple answer is yes - put 20% (or more) down. In the past I have paid PMI and used a combination first and second mortgage to get around it. I recommend avoiding both of those situations. I am much more comfortable now with just a regular mortgage payment. The more equity you have in your home the more options you... |
Is it a good investment for a foreigner to purchase a flat/apartment in China? | No, it's not. This could be a great question, but with no background, not so much. Do you live there now? For how long, and how much longer? You say investment, are you looking to live in it or rent it out? I have nothing against China, but I'd not buy anywhere unless the price, location, and timing all were right. |
Comparison between buying a stock and selling a naked put | Why do all this work yourself? Pay a modest price to have a professional do this for you. Look at the tickers PUTX, PUTW. |
I just made $50K from selling my house. How should I invest the proceeds? | It sounds like you want to lock-up your money in something relatively safe, and relatively hard to touch. You may want to consider a GIC (TD has one I found in a quick search) - from what I see it's the closest thing to a US CD. You won't get much back, but if you pick a 5-year term, you can't spend it* easily. Other o... |
Double-entry accounting: how to keep track of mortgage installments as expenses? | The best thing for you to do will be to start using the Cash Flow report instead of the Income and Expense report. Go to Reports -> Income and Expense -> Cash Flow Once the report is open, open the edit window and open the Accounts tab. There, choose your various cash accounts (checking, saving, etc.). In the General... |
Investment Portfolio Setup for beginner | Some thoughts: 1) Do you have a significant emergency fund (3-6 months of after-tax living expenses)? If not, you stand to take a significant loss if you have an unexpected need for cash that is tied up in investments. What if you lose/hate your job or your car breaks down? What if a you want to spend some time with a ... |
Website for managing personal cash inflow and outflow, applicable to India? | There are sites in India that offer this, http://www.intuit.in/ is one such site. Apart from this some banks like ICICI offer this to limited extent. |
Why Are Credit Card Rates Increasing / Credit Limits Falling? | Of course your situation is very hurtful at a personal level, and I sympathize. I just don't get your point about being driven further into debt? It would seem that with a lower credit score you are prevented from taking on more debt. That can absolutely be hurtful especially to someone who runs a business that relies ... |
Why do some online stores not ask for the 3-digit code on the back of my credit card? | The truth is that Visa does not require a merchant to enter the cvv number before authorizing a transaction. The only information that is really needed is the credit card number and expiration date. |
Tax liability for stocks vested for a H1B visa holder | You're asking whether the shares you sold while being a US tax resident are taxable in the US. The answer is yes, they are. How you acquired them or what were the circumstances of the sale is irrelevant. When you acquired them is relevant to the determination of the tax treatment - short or long term capital gains. You... |
What things are important to consider when investing in one's company stock? | Check how long you have to hold the stock after buying it. If you can sell reasonably soon and your company is reasonably stable, you're unlikely to lose and/or be taxed and/or pay enough in fees to lose more than the 30% "free money" they're giving you. Whether you hold it longer than the minimum time depends partly ... |
What standards should I expect of my CPA when an error was made? | What is the right way to handle this? Did you check the forms? Did the form state $0 tax due on the FTB LLC/Corp form (I'm guessing you operate as LLC/Corp, since you're dealing with the Franchise Tax)? The responsibility is ultimately yours. You should cross check all the numbers and verify that they're correct. That ... |
Why is there two currencies in Venezuela's money? | Venezuela is a command economy, and one that isn't doing terribly well right now, with rampant inflation in the several hundred percent range. As such, they've tried to limit or eliminate exchanges between their currency and foreign currencies. Currently, they allow a limited amount of exchange at fixed rates (accordi... |
Valuing a company and comparing to share price | There are books on the subject of valuing stocks. P/E ratio has nothing directly to do with the value of a company. It may be an indication that the stock is undervalued or overvalued, but does not indicate the value itself. The direct value of company is what it would fetch if it was liquidated. For example, if you bo... |
Foolish to place orders before the market opens? | If you are in it for the long run and are not worried about intra day fluctuations and buying within + or - 1% you would be better off going for a market order as this will make sure you buy it on the day. If you use limit orders you risk missing out on the order if prices gap and start rising in the morning. Another ... |
Can my brother fix his credit? | Well, he could negotiate with the bank to pay off the loan before the foreclosure takes effect. That would obviously cost him a large pile of cash but might remove the foreclosure, and possibly the late payments, from his record. But the real answer is that, having signed the note, he should have been making sure payme... |
Investment strategy for 401k when rolling over soon | The time horizon for your 401K/IRA is essentially the same, and it doesn't stop at the day you retire. On the day you do the rollover you will be transferring your funds into similar investments. S&P500 index to S&P 500 index; 20xx retirement date to 20xx retirement date; small cap to small cap... If your vested portio... |
What is the relationship between the earnings of a company and its stock price? | You would think that share prices is just a reflection of how well the company is doing but that is not always the case. Sometimes it reflects the investor confidence in the company more than the mere performance. So for instance if some oil company causes some natural disaster by letting one of there oil tankers crash... |
How to decide on split between large/mid/small cap on 401(k) and how often rebalance | There many asset allocation strategies to chose from that beat lifestyle funds. For example: Relative Strength Asset Allocation keeps your money in Stocks when stocks perform well, bonds when they outperform stocks, and cash when both bonds and stocks are under-performing. The re-allocation happens on a monthly basis... |
Why would a long-term investor ever chose a Mutual Fund over an ETF? | There is little difference between buying shares in your broker's index fund and shares of their corresponding ETF. In many cases the money invested in an ETF gets essentially stuffed right into the index fund (I believe Vanguard does this, for example). In either case you will be paying a little bit of tax. In the ... |
Sales Tax Licence/Permit - When is it required and how can I make a use of it as a non-US resident selling in USA? | Disclaimer: I am not a tax specialist You probably need a sales tax permit if you're going to sell goods, since just about every state taxes goods, though some states have exemptions for various types of goods. For services, it gets tricker. There is a database here that lists what services are taxed in what states; i... |
What is the best way to invest in US stocks from India? | Quite a few stock broker in India offer to trade in US markets via tie-up brokers in US. As an Indian citizen, there are limits as to how much FX you can buy, generally very large, should be an issue. The profits will be taxed in US as well as India [you can claim relief under DTAA] |
What is the correct answer for percent change when the start amount is zero dollars $0? | What is the probability of a real occasion (meaning not just an example) being exactly zero? Even if you have 0.1 you can still do the math. Also, it is kind of depending on the occasion. For example, you want to calculate the ROI of an investment for which you had zero capital and you made that investment with leverag... |
how derivatives transfer risk from one entity to another | When you buy a call option, you transfer the risk to the owner of the asset. They are risking losing out on gains that may accumulate in addition to the strike price and paid premium. For example, if you buy a $25 call option on stock XYZ for $1 per contract, then any additional gain above $26 per share of XYZ is misse... |
Are there good investment options to pay off student loans? | What you're getting at is the same as investing with leverage. Usually this comes in the form in a margin account, which an investor uses to borrow money at a low interest rate, invest the money, and (hopefully!) beat the interest rate. is this approach unwise? That completely depends on how your investments perform a... |
Financing Education through Credit Card or Student Loans | I would use student loans and avoid credit card debt if debt is your only option. Here are the advantages I see: Disadvantages: |
Buying a house, Bank or rent to own? | With no numbers offered, it's not like we can tell you if it's a wise purchase. -- JoeTaxpayer We can, however, talk about the qualitative tradeoffs of renting vs owning. The major drawback which you won't hear enough about is risk. You will be putting a very large portion of your net worth in what is effectively a s... |
How does a public company turn shares into cash? | how do they turn shares into cash that they can then use to grow their business? Once a Company issues an IPO or Follow-On Public Offer, the company gets the Money. Going over the list of question tagged IPO would help you with basics. Specifically the below questions; How does a company get money by going public in an... |
Should Emergency Funds be Used for Infrequent, but Likely, Expenses? | This is probably a very opinion-based Q&A. But anyway: My solution to such questions is to have multiple layers of emergency funds. I have one amount in a bank account that I do not like to tap, but can (and do) when I need money. This is most close to your infrequent but not completely surprising moments of cash need.... |
Can zero-coupon bonds go down in price? | Of course it can. This is a time value of money calculation. If I knew the maturity date, or current yield to maturity I'd be able to calculate the other number and advise how much rates need to rise to cause the value to drop from 18 to 17. For a 10 year bond, a rise today of .1% will cause the bond to drop about 1% i... |
Can I get a tax deduction for PMI? | No. And I'll let my good friend and fellow blogger Kay Bell answer in some detail, in her article Deducting private mortgage insurance. |
Should you always max out contributions to your 401k? | Rule of thumb: Invest in a tax deferred account only if your marginal tax rate is higher now than it will be in retirement. If you plan on making more taxable income in retirement than you do right now, then you should invest outside a tax deferred account. |
Should my retirement portfolio imitate my saving portfolio? | One big pie chart. Traditional (pretax) 401(k) and IRA, Roth 401(k) and IRA, and non-tax favored accounts. All of these need to be viewed holistically, the non-favored money is where I'd keep cash/low return safe instruments, Roth IRA for highest growth. |
Is Stock Trading legal for a student on F-1 Visa in USA? [duplicate] | As an F1 student, I have been investing (and occasionally buying and selling within few weeks) for several years, and I have never had problems (of course I report to IRS gains/losses every year at tax time). On the other hand, the officer in charge of foreign students at my school advised me to not run ads on a websit... |
Are lottery tickets ever a wise investment provided the jackpot is large enough? | Lotteries are like the inverse of insurance policies. Instead of paying money to mitigate the impact of an unlikely event which is extremely negative, you are paying money to obtain a chance of experiencing an unlikely event which is extremely positive. One thing to keep in mind regarding lotteries is the diminishing m... |
When should I open a “Line of credit” at my bank? | With the information you have given, I would say never. Remember the banker is a salesman, and the line of credit is the product. If you don't need to borrow the money for something specific, then you don't need the line of credit in the first place. Even if you did need something I would tell you to save up and pay ca... |
Why is it not a requirement for companies to pay dividends? | You have plenty of good answers, but I want to add something that might help you grow your intuition on stocks. There are a lot of differences between the example I am going to give and how the stock market actually runs, but the basic concepts are the same. Lets say your friend asks you if he can borrow some money to ... |
What could happen to Detroit Municipal bonds because of Detroit's filing for bankruptcy? | Since the bondholders have voted to reject the emergency manager's plan, which would have paid them pennies on the dollar, the city is now attempting to discharge its short-term and long-term debt. If they get what they want in court, it is likely these bonds will become worthless. Even if they are only able to restruc... |
Assessing the value of an ETF | You seem to be assuming that ETFs must all work like the more traditional closed-end funds, where the market price per share tends—based on supply and demand—to significantly deviate from the underlying net asset value per share. The assumption is simplistic. What are traditionally referred to as closed-end funds (CEFs... |
Can individual investors buy precious metals at the spot price? | The futures market allows you to take delivery at the lowest cost. Most people don't deal in 100oz gold bars and 5000oz of 1000oz silver bars though, especially at the retail level. That said, when you are at the retail level, often times you will find reputable Internet dealers offering the lowest cost of ownership.... |
Transfer money from a real estate sale in India to the US | How would I go about doing this? Are there any tax laws I should be worried about? Just report it as a regular sale of asset on your form 8949 (or form 4797 if used for trade/business/rental). It will flow to your Schedule D for capital gains tax. Use form 1116 to calculate the foreign tax credit for the taxes on the g... |
Is it ever a good idea to close credit cards? | It is an issue of both utilization and average age of accounts. If your cards with $0 balances on them are: A) newer cards than the ones you are carrying balances on and you don't want them B) much lower limit cards than the ones you are carrying balances on then you can raise your score by closing them, as the utiliza... |
What does PMI mean? | Yes, PMI is what the lender requires to loan you more than 8O% of the home's value. I could easily present scenarios where it's exactly the right decision to use PMI and get the purchase done. A 100K mortgage at 90% LTV will cost you $521/year in PMI. If you are renting and struggling to get a higher downpayment, it c... |
What kind of trade is this? | A limit order is simply an order to buy at a maximum price or sell at a minimum price. For example, if the price is $100 and you want to sell if the price rises to $110, then you can simply put a limit order to sell at $110. The order will be placed in the market and when the price reaches $110 your order will be execu... |
Should I cancel an existing credit card so I can open another that has rewards? | Hits to your credit rating for canceling one of the newer cards will be a small hit for a few months. You do have some options. I also believe that a person with good credit should have multiple cards: I like having a cash back card for the majority of our transactions. Unfortunately that card isn't accepted everywhe... |
How to evaluate an annuity | You can get no load annuities through some no-load financial companies like Vanguard so to start with I'd see how what she is being offered compares with something that comes free of a sales load. I'd also question that fixed rate, seems pretty impossible to me, which makes me think there is some catch or 'gotcha' that... |
Should Emergency Funds be Used for Infrequent, but Likely, Expenses? | I don't think there is a definite single answer for this. I think it largely depends on where you are on your financial journey. In the ideal world you'd have everything in bucket 2 built into your budget and be putting a little bit aside every paycheck to cover each of those things when they do come up but that takes ... |
Which US services allow small/micro-payments using a credit card? | I don't know of any and it is unlikely that you will be able to find one. Most credit card processors charge a flat fee plus percentage. The flat fee is typically in the 35 cent range making the cost of doing business, in the manner you are suggesting, astronomical. Also what you are suggesting is contrary to best ... |
Are there any viable alternatives to Paypal for a small site? | While I've never used the service, there's also Amazon Flexible Payments Services (AFPS): (emphasis below is mine) Amazon Flexible Payments ServiceTM (Amazon FPS) is the first payments service designed from the ground up for developers. It is built on top of Amazon’s reliable and scalable payments infrastruct... |
Brokerage account for charity | I don't understand the logic in the other answer, and I think it doesn't make sense, so here is my take: You pay taxes on income, not on sales price. So if you put X $ of your own money in the account and it becomes X + Y $ in the future, at the moment of liquidation, you will own taxes on the Y $. Never on the X $, as... |
What would be the appropriate account for written off loans to friends and family? | A simple way to account debt forgiveness of your receivables is to utilize a "Bad Debt" expense account. Take the following two examples: If you are only forgiving a portion of the principle, another popular term used is Principle Reduction as the expense account. |
Can a US bank prevent you from making early payments to the principal on a home mortgage? | Some lenders want to discourage the borrower from making these additional payments because they want to sell this as a service. They might set this up for you, or they have a contract with a 3rd party to set it up. These services generally charge you to initiate the process, and may have a recurring fee. They take 1/2 ... |
Why do mutual fund trading limitations exist? e.g. 90 day transfer limits? | Mutual funds (that are not exchange-traded funds) often need to sell some of their securities to get cash when a shareholder redeems some shares. Such transactions incur costs that are paid (proportionally) by all the shareholders in the fund, not just the person requesting redemption, and thus the remaining sharehold... |
Are there any investment strategies which take advantage of an in-the-money option price that incorporates no “time value”? | Options can have a negligible time premium. For American1 calls the time premium is never negative. If it had a negative premium it would be profitable to exercise it immediately. A deep in the money call has a delta of exactly one. That is, it's price movements completely mirror the price movements of the underlying s... |
What are some tips for getting the upper hand in car price negotiations? | I love John's answer, but I just can't help myself from adding my 2 cents, even though it's over 5 years later. I sold cars for a while in the late 90s, and I mostly agree with John's answer. Where I disagree though, is that where I worked, the salesperson did not have ANY authority to make a sale. A sales manager was ... |
Could capital gains from a stock sale impact my IRA eligibility? | Yes. Look at form 1040 AGI is line 37, and it comes well after you report your schedule D cap gains. I read this question as meaning you wish to contribute to a traditional IRA pretax. There is no income limit to contribute to an IRA and not take the deduction. |
How to deal with activist targeting of individual stocks? | The easiest way to deal with risks for individual stocks is to diversify. I do most of my investing in broad market index funds, particularly the S&P 500. I don't generally hold individual stocks long, but I do buy options when I think there are price moves that aren't supported by the fundamentals of a stock. All of ... |
Ideal investments for a recent college grad with very high risk tolerance? | You have a high risk tolerance? Then learn about exchange traded options, and futures. Or the variety of markets that governments have decided that people without high income are too stupid to invest in, not even kidding. It appears that a lot of this discussion about your risk profile and investing has centered around... |
Why would a car company lend me money at a very low interest rate? | Because the federal government won't use the money to buy a car thus generating profits for the car company. The aim of cheap loans is to drive sales of cars. The difference between the amount of interest paid on the loan, and the amount they could have got by investing it elsewhere, is simply a reduction in the profit... |
Why buy bonds in a no-arbitrage market? | Bonds can increase in price, if the demand is high and offer solid yield if the demand is low. For instance, Russian bond prices a year ago contracted big in price (ie: fell), but were paying 18% and made a solid buy. Now that the demand has risen, the price is up with the yield for those early investors the same, th... |
How can I compare the risk of different investing opportunities? | Let us consider the risks in the investment opportunities: Now, what are the returns in each of the investment: What are the alternatives to these investments, then? |
PayPal wants me to “add a bank account”, another funding source. Credit card isn't working. Why? | Visit paypalblows.org to find out more reasons. PayPal wants your bank account info on file before they allow you to take payment. So setup a bank account strictly for this service, and if they give you trouble or suspend your account, simply never use them again and tell others of your experience. I think the only re... |
How can I improve my credit score if I am not paying bills or rent? | US based so I don't know how closely this translates to the UK, but generally speaking there are three things that contribute to a strong credit score. Length/volume of credit history. This is a combination of how many accounts appear in your history along with how long they have been open. Having a series of accounts... |
Are stocks always able to be bought and sold at market price? | As others have noted, your definition of "market price" is a bit loose. Really whatever price you get becomes the current market price. What you usually get quoted are the current best bid and ask with the last transaction price. For stocks that don't trade much, the last transaction price may not be representative ... |
Does a stay at home mom need term life insurance? | Absolutely! Just because a spouse doesn't have a taxable income, doesn't mean they aren't providing real, tangible benefit to the family economy with an important job. As tragic as it is to consider losing your spouse, are you truly in a position to replace everything they do you for you? Knowing what they do for you... |
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