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Why do consultants or contractors make more money than employees? | The "more money" aspect is only true if you ignore the lack of symmetry between employment and contracting. Consulting is another story altogether. Companies are willing to pay consultants for a number of reasons but the most important is deniability. If a decision is recommended and goes wrong then the consultants c... |
What happens when a company stops trading? (pink sheets) | What will happen if the stock price just continues to decline? Nothing. What would happen if folks just stop trading it? Nothing. What if the company goes private? Then they will have to buy you out based on some agreed upon price, as voted by the board and (potentially) approved by the shareholders. Depending on the ... |
How to rescue my money from negative interest? | The problem is that every option comes with risk - as you note, if you put money in stocks, you could lose (and many stocks are overpriced). If you put money in bonds, you could lose (many bonds are overpriced). If you buy precious metals, they could fall further currently. If you hold cash, central banks might try ... |
How do small cap stocks perform vs. large cap stocks (like Dow constituents) during bear trends? | To a certain extent, small cap companies will in general follow the same trends as large cap companies. The extent of this cointegration depends on numerous factors, but a prime reason is the presence of systemic risk, i.e. the risk to the entire market. In simple terms, sthis is the risk that your portfolio will appro... |
Can I lose more on Forex than I deposit? | If you don't use leverage you can't lose more than you invested because you "play" with your own money. But even with leverage when you reach a certain limit (maintenance margin) you will receive a margin call from your broker to add more funds to your account. If you don't comply with this (meaning you don't add funds... |
Payroll reimbursments | After reading OP Mark's question and the various answers carefully and also looking over some old pay stubs of mine, I am beginning to wonder if he is mis-reading his pay stub or slip of paper attached to the reimbursement check for the item(s) he purchases. Pay stubs (whether paper documents attached to checks or thi... |
How should one structure a portfolio given the possibility that a Total Stock Market Index might decline and not recover for a long time? | John Bogle never said only buy the S&P 500 or any single index Q:Do you think the average person could safely invest for retirement and other goals without expert advice -- just by indexing? A: Yes, there is a rule of thumb I add to that. You should start out heavily invested in equities. Hold some bond index funds... |
What does it mean to invest in potatoes? | comments discuss investing in potato futures. Learn / ready about commodity trading or commodity futures. An investopedia article How To Invest In Commodities is a good start. There are quite a few commodities offered for normal trade or as futures. Potatos may not be offered on quite a few exchanges. Found some here ... |
Dividend vs Growth Stocks for young investors | First, what Daniel Carson said. Second, if you're getting started, just make sure you are well diversified. Lots of growth stocks turn into dividend stocks over time-- Microsoft and Apple are the classic examples in this era. Someday, Google will pay a dividend too. If you're investing for the long haul, diversify an... |
Is it worth buying real estate just to safely invest money? | The main point to consider is that your payments toward your own home replace your rent. Any house or apartment you buy will have changes in value; the value is generally going slowly up, but there is a lot of noise, and you may be in a low phase at any time, and for a long time. So seeing it as an investment is not an... |
Considerations for holding short-term reserves? | It is a dangerous policy not to have a balance across the terms of assets. Short term reserves should remain in short term investments because they are most likely needed in the short term. The amount can be shaved according to the probability of their respective needs, but long term asset variance usually exceed the ... |
What is a “fiat” currency? Are there other types of currency? | A "fiat" currency is non-convertible paper currency that a government establishes as legal tender. Most countries today are using fiat currencies. The rest have currencies pegged (or convertible to) US Dollars (which is a fiat currency). In the past, money was usually based on precious metals such as gold or silver. Un... |
Are quarterly earnings released first via a press release on the investor website, via conference call, or does it vary by company? | the financial information is generally filed via SEDAR (Canada) or SEC (US) before the conference call with the investment community. This can take before either before the market opens or after the market closes. The information is generally distribute to the various newswire service and company website at the same ... |
For a major expensive home renovation (e.g. addition, finished basement, or new kitchen) should one pay cash or finance with a loan? Would such a loan be “good” debt? | The reason for borrowing instead of paying cash for major renovations should be the same for the decision about whether to borrow or pay cash for the home itself. Over history, borrowing using low, tax-deductible interest while increasing your retirement contributions has always yielded higher returns than paying off ... |
What reason would a person have to use checks in stores? | Here's another rational reason: Discount. This typically works only in smaller stores, where you're talking directly to the owners, but it is sometimes possible to negotiate a few percent off the price when paying by check, since otherwise they'd have to give a few percent to the credit card company. (Occasionally the ... |
My friend wants to put my name down for a house he's buying. What risks would I be taking? | If you really want to help your friend buy a house, make a counter-offer to buy the house yourself and lease it to your friend, with the option to buy for original purchase cost, plus all interest paid so far to the bank, plus closing costs and other expenses incurred by you, minus payments made so far by the friend. O... |
How long should I keep an uncleared transaction in my checkbook? | Typically I'll carry the charge for quite awhile, up to a year. If it hasn't cleared by then, I contact the institution that should have received the money to see what they want to do about it. If they tell me not to worry about it, then I change the payee to be "Overdraft Protection", and consider it as having been ... |
What risks are there acting as a broker between PayPal and electronic bank transfers? | The sting here is definitely in the tail, the PS that says We are starting to call you from the same day when we get your details. The initial email doesn't ask for details, it asks for commitment. Once committed, you will be more relaxed about providing details. This makes me think that this is more serious than a sim... |
In today's low interest environment, is it generally more economical to buy or lease a new car in the US? | It's my understand that leasing is never the better overall deal, with the possible exception of a person who would otherwise buy a brand new car every 2 or 3 years, and does not drive a lot of miles. Note: in the case of a company car, Canadian taxes let you deduct the entire lease payment (which clearly has some prin... |
Would it make sense to take a loan from a relative to pay off student loans? | I have recently been the lender to a couple people. It was substantially less money (~$3k), but I was trusting their good faith to pay me back. As a lender, I will never do it again. Reasons, Overall, not worth it. |
I thought student loans didn't have interest, or at least very low interest? [UK] | From the description, you have a post-1998 income contingent loan. The interest rate on those is currently 1.5% but it has varied quite a bit in the last few years due to the formula used to calculate it, which is either the inflation rate (RPI), or 1% + the highest base rate across a group of banks - whichever is smal... |
Iraqi Dinars. Bad Investment, or Worst Investment? | Iraq is a US vassal/puppet state. I'm not sure what 500 South Vietnamese Dong were worth in 1972, but today the paper currency is worth $10 in mint condition. I'd suggest blackjack or craps as an alternate "investment". |
File bankruptcy, consolidate, or other options? | A couple of thoughts from someone who's kind of been there... Is the business viable at all? A lot of people do miss the jumping-off point where the should stop throwing good money after bad and just pull the plug on the business. If the business is not that viable, then selling it might not be an option. If the busine... |
Why would refinancing my mortgage increase my PMI, even though rates are lower? | The PMI rate is calculated at the time your mortgage is underwritten to be terminated at the point where you have 20% equity in your home. It is calculated based off of default risks based on your current equity value at the time of the loan. So if you got your mortgage before the banking crisis those risk charts hav... |
Why buy insurance? | Because people are Risk Averse. Suppose that you own an asset worth $10,000 to you. Suppose that each year, the asset has 1% chance of being stolen (or completely broken). The expected value is 99% x 10,000 + 1% x $0 = $9,900. This is the average outcome if you do not buy insurance. Now consider two mutually exclusi... |
Resources to begin trading from home? | A good place to start is to read, such as : Robert T. Kiyosaki : poor dad rich dad. It is quite simple but it gives the good mindset to start. But moreover it is stated in the book : "the best investement you can make is educate yourself". You current situation is quite difficcult, but don't give up on your study. Fro... |
How to spend more? (AKA, how to avoid being a miser) | here is what I have learned with multiple close encounters with bankruptcies: ask yourself.. what if I save vs what if I spend? say you like a new shirt.. ask yourself what can you do saving $40 vs rewarding yourself/your well wishers right away? you will end up spending. just like you the other person needs money. he/... |
Why invest for the long-term rather than buy and sell for quick, big gains? | Someone entering a casino with $15 could employ a very simple strategy and have a better-than-90% chance of walking out with $16. Unfortunately, the person would have a non-trivial chance (about one in 14) of walking out with $0. If after losing $15 the person withdrew $240 from the bank and tried to win $16, the pers... |
UK - reclaim VAT on purchases for freelance work | If you mostly do work for businesses/individuals who are VAT registered it's a no-brainer to become VAT registered yourself... Although you will have to charge your customers VAT (and pass this on to HMRC) because they are VAT-registered they will reclaim the amount so it won't actually 'cost' them anything. At the sam... |
How to motivate young people to save money | As a 20 year old who has just started earning enough to save, I suggest showing them the different types of lifestyles they could live in the future if they started saving now versus what their life would be like if they didn't save at all. Try showing them actual dollar values as well so it's not just an arbitrary ide... |
Can the risk of investing in an asset be different for different investors? | In a perfect market, share prices are by definition a perfect reflection of the true value of a share. Hence, you always get $10 for a share that's worth that much. In reality, the market is imperfect. Prices are somewhat of an average of all different estimates, and there's a cost-of-trading margin between sales and b... |
Do budgeting % breakdowns apply globally? | The exact percentages depend on many things, not just location. For example, everyone needs food. If you have a low income, the percentage of your income spent on food would be much higher than for someone that has a high income. Any budgeting guidelines that you find are just a starting point. You need to look at yo... |
Why doesn't buy at open get the official open price? | There is no official price. There is only the price a seller is willing to offer and a buyer is willing to accept at that moment. It tends to be close to the price negotiated for the last such sale, but that's just market statistics, not anything actively managed or guaranteed. "Past performance is no guarantee of futu... |
Is there any reason not to put a 35% down payment on a car? | Do you guys think it's a good idea to put that much down on the car ? In my opinion, it depends on a lot of factors. If you have nothing to pay, and are not planning to invest in something that cost a lot soon (I.E an house, etc). Then I see no problem in put "that much down on the car". Remember that the more you pay... |
Please explain: What exactly is a CDS or “Credit Default Swap”? | From my understanding, a CDS is a financial product to buy protection against an event of "default" (default of payment). Example: if General Motors owes me money $10,000,000 (because I own GM bonds for example) and I wish to protect myself against the event of GM not repaying the money they owe me (event called "credi... |
How do I add my income to my personal finance balance? | Create an account called, say, "Paycheck". When you get paid, create an entry with your gross income as a deposit. For each deduction in your paycheck, create a minus (or expense) entry. After doing that, what will be left in the Paycheck account will be your net income. Simply transfer this amount to the real acco... |
Should we invest some of our savings to protect against inflation? | If I were in your shoes (I would be extremely happy), here's what I would do: Get on a detailed budget, if you aren't doing one already. (I read the comments and you seemed unsure about certain things.) Once you know where your money is going, you can do a much better job of saving it. Retirement Savings: Contribute u... |
What is the opposite of a sunk cost? A “sunk gain”? | The complete opposite of "sunk cost" is the term "unrealized gain"; until you sell it, then it is a "realized gain". There is also a term "paper profit" to point out the ephemeral nature of some of these unrealized gains. |
What are the alternatives to compound interest for a Muslim? | Because so many businesses make some money through some form of compound interest, like a business that saves its earnings in a business account that pays interest, it heavily depends on how strict you interpret this law. Some Muslims I know interpret it to mean directly and indirectly, while for some it's just direct... |
Pros & cons in Hungary of investing retirement savings exclusively in silver? What better alternatives, given my concerns? | I think precious metals as an investment might set one up for disappointment. Why does it seem to continually decline despite the variance? As many have noted, there isn't much productive use for precious metals, and no major wars are taking place, so they aren't being used as currency substitutes, not to mention tha... |
How can I avoid international wire fees or currency transfer fees? | My preferred method of doing this is to get a bank draft from the US in Euros and then pay it into the French bank (my countries are Canada and UK, but the principle is the same). The cost of the bank draft is about $8, so very little more than the ATM method. If you use bigger amounts it can be less overall cost. The ... |
How much does it cost to build a subdivision of houses on a large plot of land? | You can hire a builder to build for you on a lot that you would be happy to live on with utilities already connected. Subdividing a large piece of land gets a little more complicated. What easements exist, and what new easements would need to be created when connecting utilities? Would all of the lots already have stre... |
How to acquire skills required for long-term investing? | I would say that the three most important skills are: Note that some costs are hidden. So, for example, a mutual fund investing in other countries than where you live in may mean the investment target country charges a certain percentage of dividends going to the mutual fund. The mutual fund company doesn't usually wan... |
If I have no exemptions or deductions, just a simple paycheck, do I HAVE to file taxes? | You are not required to file a tax return in Canada if you have no taxable income. If you do not file a return you may be requested to by Canada Revenue Agency, and then you'll need to file one. There are hundreds of thousands of Canadian residents who do not file tax returns. The Minister who overlooks the CRA may ass... |
Student loan payments and opportunity costs | Already a lot of great answers, but since I ask myself this same question I thought I'd share my 2 cents. As @user541852587 pointed out, behavior is of the essence here. If you're like most recent grads, this is probably the first time in your life you are getting serious about building wealth. Can you pay your loans ... |
Do the nasdaq small cap stocks or penny stocks get promoted? | Promotion of any stock should be treated with extreme suspicion, since the purpose is generally to make money for the promoter, not to inform the public. |
Why is retirement planning so commonly recommended? | Another thing that "retirement" lets you do is do what you love without worrying about making enough money to live on by doing it. For example, volunteering your time or starting your own business. These are much easier to do when you don't have to worry about getting paid. Having a source of income provides a lot mo... |
What is the difference between hedging and diversification? How does each reduce risk? | Hedging - You have an investment and are worried that the price might drop in the near future. You don't want to sell as this will realise a capital gain for which you may have to pay capital gains tax. So instead you make an investment in another instrument (sometimes called insurance) to offset falls in your investme... |
What part of buying a house would make my net worth go down? | One way to think of net worth is to think if you sold everything you owned, how big of a pile of money would be standing next to you (assuming your net worth is positive). If you started with $100K and then bought a house worth $100K you would have $0 in the bank and a house. If you sold that house for $100K you woul... |
In what ways is IEX different than a typical dark pool or a typical exchange? | You've said what's different in your question. There's 330 microseconds of network latency between IEX and anywhere else, so HFTs can't get information about trades in progress on IEX and use it to jump in ahead of those traders on other exchanges. All exchanges should have artificially induced latency of this kind so ... |
How do I estimate my taxes when I have only 1099 income? | As long as you paid 100% of your last year's tax liability (overall tax liability, the total tax to pay on your 1040) or 90% of the total tax liability this year, or your underpayment is no more than $1000, you won't be penalized as long as you pay the difference by April 15th. That's per the IRS. I don't know where th... |
Primerica: All it claims to be? | Probably not, though there are a few things to be said for understanding what you are doing here. Primerica acts as an independent financial services firm and thus has various partners that specialize in various financial instruments and thus there may exist other firms that Primerica doesn't use that could offer bett... |
What does the average log-return value of a stock mean? | Knowing the log return is useful - the log return can help you to work out the annual return over the period it was estimated - and this should be comparable between stocks. One should just be careful with the calculation so that allowance for dividends is made sensibly. |
What is meant by the term “representative stock list” here? | The meaning is quite literal - a representative stock list is a list of stocks that would reasonably be expected to have about the same results as the whole market, i.e. be representative of an investment that invests in all those stocks. Of course, you don't want to invest in all stocks individually, that would be imp... |
What does this diagram from Robert Kiyosaki about corporations mean? | These types of diagrams appear all throughout Kiyosaki's Rich Dad, Poor Dad book. The arrows in the diagrams represent cash flow. For example, the first two diagrams of this type in the book are: The idea being presented here is that an asset generates income, and a liability generates expenses. According to the boo... |
Is there a candlestick pattern that guarantees any kind of future profit? | By definition, there are no guaranteed profits. There are sometimes arbitrage opportunities, which are more accessible to some investors than others. In this case, I'm not referring to HFT as that is covered elsewhere on this site already. At certain times, in certain equity markets, candlestick charts were used for p... |
How should minor children be listed as IRA beneficiaries? | I think that "better" is up to a discussion, but the difference is that while in trust you can control the money after your death in some way - giving it directly to children means you have no such control. I.e.: in trust you can stipulate that the children will be able to spend the money under certain terms or in cert... |
Is a currency “hedged” ETF actually a more speculative instrument than an unhedged version? | The risk of any investment is measured by its incremental effect on the volatility of your overall personal wealth, including your other investments. The usual example is that adding a volatile stock to your portfolio may actually reduce the risk of your portfolio if it is negatively correlated with the other stuff in... |
Personal Loan: How to define loan purpose | Does that justify the purpose? That is for individual Banks to decide. No bank would pay for daily expenditure if you are saying primary salary you are spending on eduction. So your declaration is right. You are looking at funding your eduction via loan and you are earning enough for living and paying of the loan. I no... |
How does 83b election work when paying fair market value at time of grant? | Yes, you would pay no taxes at the time of purchase. In fact, this is not uncommon. Many early employees of startup companies are offered stock options that can be "early-exercised" (exercised before they vest). In such a case, an employee who exercises immediately upon grant (and assuming the exercise price of the opt... |
401k with paltry match or SPY ETF? | I think you understood much of what I say, in general. Unfortunately, I didn't follow Patches math. What I gleen from your summary is a 1% match to the 10% invested, but a .8% expense. The ETF VOO has a .05% annual fee, a bit better than SPY. A quick few calculations show that the 10% bonus does offset a long run of ... |
How to hedge a long stock position that does not have options | If there are no traded options in a company you can get your broker to write OTC options but this may not be possible given some restrictions on accounts. Going short on futures may also be an option. You can also open a downside CFD (contract for difference) on the stock but will have to have margin posted against it ... |
Unmarried couple buying home, what are the options in our case? | You've laid out several workable options. You might try going to mortgage broker and looking at what offers you get each way. I can say that it sounds like your partner will have a difficult time qualifying for a mortgage. That puts you on the first and third options. Forget about "building equity." You cannot rely... |
Can I buy a new house before selling my current house? | As the other answers suggest, there are a number of ways of going about it and the correct one will be dependent on your situation (amount of equity in your current house, cashflow primarily, amount of time between purchase and sale). If you have a fair amount of equity (for example, $50K mortgage remaining on a house ... |
How to reconcile performance with dividends? | You didn't identify the fund but here is the most obvious way: Some of the stocks they owned could had dividends. Therefore they would have had to pass them on to the investors. If the fund sold shares of stocks, they could have capital gains. They would have sold stocks to pay investors who sold shares. They also coul... |
What market conditions favor small cap stocks over medium cap stocks? | I think to answer this question it is best for you to learn more about why people diversify through asset allocation. Look at related questions involving Asset Allocation here. I've asked a couple questions about asset allocation - I think you'll find the top rated answer on this post useful. |
Taking out a loan to pay down a mortgage | You're not crazy, but the banks are. Here's the problem: You're taking 100% LTV on property A - you won't be able to get a second mortgage for more than 80% total (including the current mortgage) LTV. That's actually something I just recently learned from my own experience. If the market is bad, the banks might even lo... |
How can banks afford to offer credit card rewards? | Michael Pryor's answer is accurate to the actual question asked. The current accepted answer from Dheer is not entirely true but roughly provides an overview of the different entities involved in a typical transaction, with some wrong terminologies, corrected and improved below. The issuing bank, the one that issues t... |
Personal Banking using accrual method | You would add your daily earnings every day. For example, you work full time job (8 hours a day) at $20/hour. At the end of the 1st day of the month, you'd add $160 to your salary account. You've earned it, even though its still almost a month till you actually get paid. So its accrued. What if you don't get paid? You'... |
One of my stocks dropped 40% in 2 days, how should I mentally approach this? | Have the reasons you originally purchased the stock changed? Is the company still sound? Does the company have a new competitor? Has the company changed the way they operate? If the company is the same, except for stock price, why would you change your mind on the company now? ESPECIALLY if the company has not changed,... |
Are my purchases of stock, mutual funds, ETF's, and commodities investing, or speculation? | Every investment comes with a risk. There is also a bit of speculation involved. In there is an anticipation that one expects the value to go up in normal course of events. By your definition "If I buy this equipment, I could produce more widgets, or sell more widgets," as an investment. Here again there is an anticipa... |
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. |
Should I buy a house with a friend? | Unlike others who have answered the question - I have done this. Here is my experience - your mileage and friendship may vary: I bought a condo years ago with a longtime childhood friend. We did it for all the reasons you mentioned - sick of renting and not building equity, were both young, single professionals who h... |
At what point is it most advantageous to cease depositing into a 401k? | It's probably advantageous to stop depositing into a 401(k) when one is no longer receiving payroll deductions into them. Other than that, why would you want to give up the benefits? Remember, 401(k) is just the kind of account. Most offer a variety of investment options within them, and let you move money between thos... |
What is the value in using the “split transaction” feature present in some personal finance management tools? | Split transactions are indispensable to anybody interested in accurately tracking their spending. If I go to the big-box pharmacy down the road to pick up a prescription and then also grab a loaf of bread and a jug of milk while there, then I'd want to enter the transaction into my software as: I desire entering precis... |
I am looking for software to scan and read receipts | Try the following apps/services: Receipt Bank (paid service, gathers paper receipts, scans them and processes the data), I've tested it, and it recognizing receipts very well, taking picture is very quick and easy, then you can upload the expenses into your accounting software by a click or automatically (e.g. FreeAgen... |
Mortgage company withholding insurance proceeds | Fire insurance, as you have discovered, is a complete ripoff. Most people pay fire insurance all their lives with no benefit whatsoever, and those such as yourself who are lucky enough to get a payout find that it is completely insufficient to replace their loss. I once computed the actual beneficial net present financ... |
Would I qualify for a USDA loan? | How realistic is it that I will be able to get a home within the 250,000 range in the next year or so? Very unlikely in the next year. The debt/income ratio isn't good enough, and your credit score needs to show at least a year of regular payments without late or default issues before you can start asking for mortgag... |
If a country can just print money, is global debt between countries real? | I think the important fact here is that all of our currencies are Fiat Currencies. So currency technically means nothing, because (as you mentioned) the country could print more any time it wants. Now what makes it useful is the combination of two big things: So I would say, we know they owe us 100 "dollars", and the d... |
Does an employee have the right to pay the federal and state taxes themselves instead of having employer doing it? | No. An employer is legally obliged to deduct taxes from your pay cheque and send them to the IRS. The only way round that is to either provide evidence of deductions that would reduce your tax bill to nothing, or to become self-employed. |
Double-entry accounting: how to keep track of mortgage installments as expenses? | If your mortgage is an interest only one then the full amount of the payment you make should be to an expense account perhaps called mortgage interest. If the mortgage is a repayment mortgage you need to split the amount of the payment between such an expense account called mortgage interest and between a liability acc... |
Saving $1,000+ per month…what should I do with it? | I like the other answers. But, here's one thing that concerns me that hasn't specifically been addressed yet: You mentioned your student loans are at low rates of interest. Are those rates fixed or variable? If those interest rates are variable, I would not count on rates remaining low indefinitely. If you could im... |
Is there a Canadian credit card which shows holds? | PC MasterCard recently added this as a new feature to their online system. It lets you see "Pending Authorizations" for your card when you log in. Their email said: Along with your purchases, you'll see a list of every transaction that's been approved, but not yet applied to your balance. You'll be able to identify the... |
At what point is it most advantageous to cease depositing into a 401k? | You'd need to test the assumptions here - in effect you're saying that in 15 years your account will have a balance 10x your income. But normally you'd expect your income to grow over the years (e.g. promotions) and so you'd hope that your income in 15 years would be significantly larger than what it is now. But, eve... |
What are some factors I should consider when choosing between a CPA and tax software | Largely it comes down to the complexity of your return (likely relatively simple if it's your first time filing) and your comfort level with using software. More complex returns would include filing business claims, handling stocks and investments, special return forms, etc. One benefit to most of the software options... |
PayPal wants me to “add a bank account”, another funding source. Credit card isn't working. Why? | It's possible the recipient of the payment is not setup to receive funds form PayPal from a credit card, too. |
Where can you find dividends for Australian Stock Market Shares (ASX) for more than 2 years of data? | You can register with an online broker. You can usually join most online brokers for free and only have to fund your account if you decide to place a trade. You may also check out the website of the actual companies you are interested in. They will provide current and historic data of the company's financials. For BHP ... |
Does a company's stock price give any indication to or affect their revenue? | It would be very unusual (and very erroneous) to have a company's stock be included in the Long Term Investments on the balance sheet. It would cause divergent feedback loops which would create unrepresentative financial documents and stock prices. That's how your question would be interpreted if true. This is not t... |
ETF's for early retirement strategy | I think the dividend fund may not be what youre looking for. You mentioned you want growth, not income. But I think of dividend stocks as income stocks, not growth. They pay a dividend because these are established companies that do not need to invest so much in capex anymore, so they return it to shareholders. In othe... |
Selling property outside the US - gains are taxable, but how do they convert? | Since you did not treat the house as a QBU, you have to use USD as your functional currency. To calculate capital gains, you need to calculate the USD value at the time of purchase using the exchange rate at the time of purchase and the USD value at the time of sale using the exchange rate at the time of sale. The ca... |
Why is gold not a good investment? | Gold since the ancient time ( at least when it was founded) has kept its value. for example the french franc currency was considered valuable in the years 1400~ but in 1641 lost its value. However who owned Gold back then still got value. The advantage of having gold is you can convert it to cash easily in the world. ... |
Why do governments borrow money instead of printing it? | I believe there are two ways new money is created: My favorite description of this (money creation) comes from Chris Martenson: the video is here on Youtube. And yes, I believe both can create inflation. In fact this is what happened in the US between 2004 and 2007: increasing loans to households to buy houses created ... |
Using financial news releases to trade stocks? | Yes, there are very lucrative opportunities available by using financial news releases. A lot of times other people just aren't looking in less popular markets, or you may observe the news source before other people realize it, or may interpret the news differently than the other market participants. There is also the ... |
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... |
Motley fool says you can make $15,978 more per year with Social Security. Is this for real? | The purpose of this spammy Motley Fool video ad is to sell their paid newsletter products. Although the beginning of the video promises to tell you this secret trick for obtaining additional Social Security payments, it fails to do so. (Luckily, I found a transcript of the video, so I didn't have to watch it.) What t... |
Economics of buy-to-let (investment) flats | Seems like a bad deal to me. But before I get to that, a couple of points on your expenses: Onward. You value a property by calculating its CAP rate. This is what you're calculating, except it does NOT include interest like you did -- that's a loan to you, and has no bearing on whether the unit itself is a good investm... |
Help! I've cancelled their service, but this company continues to bill my credit card an annual fee. What can I do? | Short of canceling the card, you could just report the card as lost and ask for a new card number on the same account. Another option is to just make a note to look for the charge and keep disputing it. It has been a while since I did credit card processing at my business, but I think the company gets dinged if too man... |
Why did the Swiss National Bank fix the EUR/CHF exchange rate at CHF 1.20? | It's not. If you look at the page you link to and change dates, it's clear the rate changes a bit. 120.15 120.1 per hundred. The Swiss can keep the 1.200 as a target and if it's higher, sell agingst the euro to bring it down, if lower, buy. If the swiss experienced a serious financial crisis and their currency fell, th... |
How to deal with the credit card debt from family member that has passed away? | Don't pay it, see a lawyer. Given your comment, it will depend on the jurisdiction on the passing of the house and the presence of a will or lack thereof. In some states all the assets will be inherited by your mom. Debts cannot be inherited; however, assets can be made to stand for debts. This is a tricky situatio... |
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. |
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