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Is buying a lottery ticket considered an investment? | Something that is missing from the discussion is the actual market for the lottery ticket -- if a market existed for the tickets themselves, that would make this far more obvious, but since there isn't one; buying a single ticket gives different Expected Values, but since the ticket has a defined 'game' instance, a sin... |
Why are currency forwards needed? | e.g. a European company has to pay 1 million USD exactly one year from now While that is theoretically possible, that is not a very common case. Mostly likely if they had to make a 1 million USD payment a year from now and they had the cash on hand they would be able to just make the payment today. A more common scena... |
What is the purpose of endorsing a check? | In my experience, you don't need to endorse a check with a signature to deposit it into your account. You do if you are exchanging the check for cash. Businesses usually have a stamp with their account number on them. Once stamped, those checks are only able to be deposited into that account. Individuals can do the... |
Why do 10 year-old luxury cars lose so much value? | They are overpriced to begin with. One reason is the fact that they are luxury cars. A second, related reason, is that they tend to push the technology envelope. All cars depreciate drastically the minute they are driven off the lot. This a good argument for buying a car that is 1-2 years old. The higher you are,... |
How much (paper) cash should I keep on hand for an emergency? | No cash is necessary for most people. In the modern day in the US there is no need to keep paper currency around for emergencies; any sort of emergency that knocked out all of the ability to use plastic (ATMs, credit cards, etc.) for an extended period of time AND knocked your bank out of service would be of the level... |
Snowball debt or pay off a large amount? | There are some calculators that you can use to figure out the best approach, such as this one by CNN. But in general the rule of thumb tends to be the following: For the purposes of the Best Buy card, I would put it up there at number one so you don't get hit with the deferred interest. No point in giving them more mon... |
how much of foreign exchange (forex/fx) “deep liquidity” is really just unbacked leverage and what is the effect? | I'd think that liquidity and speed are prioritized (even over retail brokers and in come cases over PoP) for institutional traders who by default have large positions. When the going gets tough, these guys are out and the small guys - trading through average retail brokers - are the ones left holding the empty bag. |
Should I keep copies of my business's invoices for tax records? | It's always beneficial to have detailed business records. There are any number of reasons where you'd need to prove both the types of services you've rendered and the payment history - you've already noted audits (for IRS taxes). Other possibilities: Whether these records need to be original or electronic might be th... |
How to plan in a budget for those less frequent but mid-range expensive buys? | Personally I solve this by saving enough liquid capital (aka checking and savings) to cover pretty much everything for six months. But this is a bad habit. A better approach is to use budget tracking software to make virtual savings accounts and place payments every paycheck into them, in step with your budget. The big... |
Is the stock market a zero-sum game? | While this seems overall a macroeconomics question and not really personal finance, let me give it a shot: The question of why corporations form in a free or efficient market is why Ronald Coase received the 1991 Nobel Prize in Economics, for his work developing the theory of the firm Corporations organize when there a... |
What college degree should I pursue to learn about stock and forex markets? | There are several paths of study you could undertake. If you want to learn the fundamentals of the stock market and become a financial analyst, then finance, economics, and accounting (yes, accounting) are all good to study either on your own or in an institution. Furthermore, if you want to study a specific industry, ... |
Do my 401k/Roth accounts benefit from compounding? | You buy a share of something for $100. It goes up by 10% over a year, and you now have $110 in value. It goes up by 10% next year and you now have $121. That original $10 increase was compounded even though you're not earning interest because the gains are measured as a percentage. If, instead, you'd only invested ... |
What is the median retirement savings in the United States today? | Note that the quote distinguishes between "all families" and "families with some savings" - this just means there are so many families with less than 5k that they equal all those with savings above 5k. That might be because they are young and haven't started yet, or because it is just not a priority for them compared t... |
Growth of unrealized gains in tax-managed index funds | Right now, the unrealized appreciation of Vanguard Tax-Managed Small-Cap Fund Admiral Shares is 28.4% of NAV. As long as the fund delivers decent returns over the long term, is there anything stopping this amount from ballooning to, say, 90% fifty years hence? I'd have a heck of a time imagining how this grows to... |
Should I pay half a large balance this month before I get my CC statement? | From what I have heard on Clark Howard if you pay your balance off before the statement's closing date it will help your utilization score. He has had callers confirm this but I don't have first hand knowledge for this to be true. Also this will take two months to make the difference. So it will be boarder line if ... |
How can I save on closing costs when buying a home? | For example: do I need a realtor, or can I do their job myself? In general in the United States the real estate agent fee is paid by the seller of the property. Their agent will be more than happy keep the entire fee if they don't have to split it with your agent. If you don't have an agent you will be missing somebod... |
Can the risk of investing in an asset be different for different investors? | The other example I'd offer is the case for diversification. If one buys 10 well chosen stocks, i.e. stocks spread across different industries so their correlation to one another is low, they will have lower risk than each of the 10 folk who own one of those stocks per person. Same stocks, but lower risk when combined. |
Best Time to buy a stock in a day | Buy it at the close. That way you won't lose money (even if marked to market) on the day. |
How do amortization schedules work and when are they used? | An amortization schedule is often used to produce identical payments for the term (repayment period) of a loan, resulting in the principal being paid off and the debt retired at the end of the loan. This is in contrast to an interest only, or balloon loan. These loans require little or no payment against the balance of... |
Is inflation a good or bad thing? Why do governments want some inflation? | Inflation is what happens, it is not good or bad in and of itself. But consider the following. In a thriving economy with low unemployment, people are buying, buying, buying. People are not saving for later, they are buying now. Industry is also making purchases. Now. From economics 101: high demand for goods/serv... |
What is the difference between speculating and investing? | In my opinion the difference is semantic. A professional, or someone wanting to present an air of competence, is more likely to talk about investing in shares, as the word investment carries with it connotations of effort, energy and a worthwhile result. Whereas, the word speculation implies the hope of gain but with t... |
Where to Park Proceeds from House Sale for 2-5 Years? | Your objectives are contradictory and/or not possible. Eliminating the non-taxable objective: You could divide the $100K in 5 increments, making a "CD ladder" $25K in 3mo CD (or savings a/c) $25K in 6 mo CD $25K in 9mo CD $25K in 1 yr CD or similar structure (6mo also works well) Every maturing CD you are able to acces... |
Why are stop order called “stop” when it is in fact a “start” condition? | A stop order can be used to both enter or exit a position. A stop loss is used to set the price you want to get out if the price reaches that level. Whilst a stop buy or entry order is used to get into a position if the price reaches your desired level for entry. The stop order just means that you want to place your or... |
Options for dummies. Can you explain how puts & calls work, simply? | Put options are contracts to sell. You pay me a fee for the right to put the stock (or other underlying security) in my hands if you want to. That happens on a specific date (the strike date) and a specified price (the strike price). You can decide not to exercise that right, but I must follow through and let you sell ... |
Recommended finance & economy book/blog for a Software Engineer? | For economics I recommend mises or these videos to get you started. For daily critical analysis of financial markets, keynesian government policies, and other interesting reading I recommend zerohedge. I've learned more about financial markets and government regulations by reading the comments section on zerohedge art... |
How to protect yourself from fraud when selling on eBay UK | Paypal UK has a page here: https://www.paypal.com/uk/webapps/mpp/seller-protection Basically they don't just take the seller's word for it, there is a resolution process. The biggest thing you can do is make sure that you deliver it in a way that requires signature. |
What are the alternatives to compound interest for a Muslim? | I am not sure if these are available today in your country: but supposedly, back when Catholic countries similarly forbade usury, sinecures were invented to circumvent religious restrictions on finance. Meaning literally 'without care', sinecures were formally prestigious salary-paying jobs with few responsibilities. ... |
What kind of traditional IRA should I use to hold funds from old employer 401K plans? | Magazines like SmartMoney often have an annual issue that reviews brokers. One broker may have a wider variety of no-fee mutual funds, and if that's your priority, then the stock commissions may be a moot issue for you. In general, you can't go wrong with a Fidelity or Schwab, and to choose investments within the accou... |
Can I get a dividend “free lunch” by buying a stock just before the ex-dividend date and selling it immediately after? [duplicate] | Not minutes, but hours. The "ex-dividend" date is the deadline for acquiring a stock to receive a dividend. If you hold a stock at the beginning of this day, you will receive the dividend. So you could buy a stock right at the end of the day on the day before the ex-dividend date, and sell it the next day (on the ex-d... |
Thrift Saving Plan (TSP) Share Price Charts | TSP.Ninja http://www.tsp.ninja has all the TSP funds with good visualizations that are very similar to Google Finance. |
Why is it rational to pay out a dividend? | The main reason, as far as I can see, is that the dividends are payments with which the shareholders may do what they want. Capital that the company has no use for does not make a significant positive return on investment, as you pointed out, yes the company could accrue interest, but that is not going to make the comp... |
Should I open a credit card when I turn 18 just to start a credit score? | I will disagree with the other answers. The idea that there is some to establish a "credit history" is largely a myth propagated by loaners who see it as positive propaganda to increase the numbers of their prospective customers. You will find some people who claim they were rejected for a card because they had no "cre... |
Comparing/reviewing personal health insurance plans for the self-employed | Health insurance is tough, as you know, because the offerings vary dramatically by State, and there is the added complication of the Affordable Care Act, which depending on where and who you are has had either a good or bad impact on the available options. If you are a sole proprietor or other business person, I'd advi... |
Diversify across multiple brokers? | You should ensure that your broker is a member of the Securities Investor Protection Corporation (SIPC). SIPC protects the cash and securities in your brokerage account much like the Federal Deposit Insurance Corporation (FDIC) protects bank deposits. Securities are protected with a limit of $500,000 USD. Cash is prote... |
Why are for-a-fee wires faster than 2+ day free ACH | ACH transfers are the evolution of paper check clearing houses. Transactions are conducted in bulk and do not immediately settle -- the drawer and drawee still retain liability for a period of days or weeks after the transaction date. (I'd suggest looking to the legal definition of a check or draft to understand this b... |
Margin when entered into a derivative contract | A derivative contract can be an option, and you can take a short (sell) position , much the same way you would in a stock. When BUYING options you risk only the money you put in. However when selling naked(you don't have the securities or cash to cover all potential losses) options, you are borrowing. Brokers force you... |
How much lump sum investment in stocks would be needed to yield a target stable monthly income? | I will add another point to ChrisinEdmonton's answer... I recognize that this is perhaps appropriate as a comment--or maybe 1/2 of an answer, but the comment formatting is inadequate for what I want to say. The magic formula that you need to understand is this: (Capital Invested) * (Rate of Return) = (Income per Peri... |
Online sites for real time bond prices | FINRA lets you view recent trades, but as stated in the other answer bonds are illiquid and often do not trade frequently. Therefore recent trades prices are only a rough estimate of the current price that would be accepted. http://finra-markets.morningstar.com/BondCenter/Default.jsp |
Multiple mortgage pre-approvals and effects on credit score | Johnny. I recently bought my first home as well, and I have worked in the credit business (not mortgage), so I think I can answer some of your questions. Disclaimer first that I'm in NY, and home buying does vary from state to state. In my experience, pre-qual is not too different from pre-approval. Neither represen... |
How does the process of “assignment” work for in-the-money Options? | I often sell covered calls, and if they are in the money, let the stock go. I am charged the same fee as if I sold online ($9, I use Schwab) which is better than buying back the option if I'm ok to sell the stock. In my case, If the option is slightly in the money, and I see the options are priced well, i.e. I'd do an... |
Optimal down payment amount | The optimal down payment is 100%. The only way you would do anything else when you have the cash to buy it outright is to invest the remaining money to get a better return. When you compare investments, you need to take risk into account as well. When you make loan payments, you are getting a risk free return. You c... |
Where can I borrow money for investing? | Borrow money and start a business. Follow your business plan and invest in yourself and your entrepreneurship. If you mean invest in the market, do not borrow money. In your plan, you are willing to make payments right? There are lots of things you can do better, but borrowing money to invest in the market for a co... |
How do I adjust to a new social class? | Beware of keeping up with the Joneses. Many of your free-spending neighbors are broke. Basically, the prices of things like what you're noticing will rise as incomes in the area rise. A great example of this can be found in state capitals and college towns, where battalions of government workers or students all make ju... |
What considerations are there for making investments on behalf of a friend? | If you want to do #1, then you should form an "investment club." This is an entity that is recognized by the SEC and the IRS. From the SEC: An investment club is a group of people who pool their money to make investments. Usually, investment clubs are organized as partnerships and, after the members study different in... |
Why is retirement planning so commonly recommended? | I like many of the answers, but here is a summary of reasons: Almost everyone will retire, and it is almost certain that government or company pensions schemes will not alone give you a lifestyle you would like in retirement. Money invested early is worth much more in retirement than money invested late, thanks to the ... |
Buying my first car out of college | Buying this car would be a good idea because you will quickly learn why you feel you need a BMW (that you cannot afford). This is not an investment, but a financing decision, beyond your means of living. As a future MBA you will regret not investing this money now. |
Does my net paycheck decrease as the year goes on due to tax brackets filling up? | In general no, if you just have one employer and work there with the same salary for the whole year. Typically an employer does tax withholding by extrapolating your monthly income to the entire year and withholding the right amount so that at the end, what is withheld is what you owe. It's not a surprise to them whe... |
Where can I find a good online fundamental data provider for Hong Kong stocks? | Check out WorldCap.org. They provide fundamental data for Hong Kong stocks in combination with an iPad app. Disclosure: I am affiliated with WorldCap. |
Understanding the Nasdaq insider trading information | Usually insiders are in a better position than you to understand their business, but that doesn't mean they will know the future with perfect accuracy. Sometimes they are wrong, sometimes life events force them to liquidate an otherwise promising investment, sometimes their minds change. So while it is indeed valuable ... |
Is is possible to dispute IRS underpayment penalties? | didn't pay the extra underpayment penalty on the grounds that it was an honest mistake. You seem to think a penalty applies only when the IRS thinks you were trying to cheat the system. That's not the case. A mistake (honest or otherwise) still can imply a penalty. While you can appeal just about anything, on any gr... |
Strategies for putting away money for a child's future (college, etc.)? | Others have given some good answers. I'd just like to chime in with one more option: treasury I-series bonds. They're linked to an inflation component, so they won't lose value (in theory). You can file tax returns for your children "paying" taxes (usually 0) on the interest while they're minors, so they appreciate tax... |
Is it a good practice to keep salary account and savings account separate? | My wife and I do this. We have one account for income and one for expenditures (and around 7 others for dedicated savings.) Doing this we are forcing ourselves to keep track of all expenditures as we have to manually transfer funds from one to the other, we try to do this periodically (every Wednesday) and then keep th... |
Advantage of credit union or local community bank over larger nationwide banks such as BOA, Chase, etc.? | Banks, the big ones, have shareholders and the board to answer to. Credit Unions have members and the board to answer to. You become a member by joining a CU. Banks' prime objective is profit maximization, a credit union's prime objective is members' welfare. Personal experience: I didn't mind that the banks charge... |
How can a freelancer get a credit card? (India) | I don't know about India, but here in the US banks, and more friendly institutions such as credit unions, use to offer the option of a 'secured' credit card where the card was secured by placing a lock on money in a savings account equal to the credit limit on the card. So for example, if you had $1500 in savings, you ... |
Help: Being charged interest on a loan for which I received no statements telling me of this debt for the past 15 years. Surprise! | This sounds like a shady trick. I would consult with a consumer debt lawyer in your area. Most county bar associations in the US have a referral service, where they recommend a local lawyer and there is a reduced fee for the initial visit. I think the statute of limitations is 10 years in most cases, but it depends on ... |
Can I trust the Motley Fool? | I've had a MF Stock Advisor for 7 or 8 years now, and I've belong to Supernova for a couple of years. I also have money in one of their mutual funds. "The Fool" has a lot of very good educational information available, especially for people who are new to investing. Many people do not understand that Wall Street is in ... |
What to do with a 50K inheritance [duplicate] | **I would encourage you to clear all your debts and remain debt free, then you can consult a financial manager-for investing purposes that fits your needs and goals. There are so many investment vehicles out, but the best of all is in real estate which requires lots of money. For your case I would prefer money marke... |
A University student wondering if investing in stocks is a good idea? | You can start investing with any amount. You can use the ShareBuilder account to purchase "partial" stocks through their automatic investment plan. Usually brokers don't sell parts of stock, and ShareBuilder is the only one allowing it IMHO using its own tricks. What they do basically is buy a stock and then divide it ... |
My account's been labeled as “day trader” and I got a big margin call. What should I do? What trades can I place in the blocked period? | I assume that whatever you're holding has lost a considerable amount of its value then? What sort of instrument are we talking about? If the margin call is 14k on something you borrowed against the 6900 you're a bit more leveraged than "just" another 100%. The trading company you're using should be able to tell you exa... |
How long does it take for a Tangerine no-fee money-transfer email to be delivered? | I phoned Tangerine; they enlightened me. It generally takes 2 hours for the email to arrive. Next, the recipient must open the email, click the link, and enter their bank account number. They'll generally receive the money 2-3 business days after that. This forum post suggests that the delays are due to systemic risk m... |
How websites like Google have access to stock market data? | To quote their disclaimer: Data is provided by financial exchanges and may be delayed as specified by financial exchanges or our data providers. Google does not verify any data and disclaims any obligation to do so. That means that they buy it from a reseller such as IDC. It probably differs in source between the diffe... |
What does a stock's quoted value represent? | Price for the latest transaction. If the stock is selling for $898.7 means that the stock is currently trading for $898.7, and it will be your ask price of stock if you purchase currently. |
Priced out of London property market. What are my accommodation investment options? | NB - I live in Surrey and bought my house in January 2014. If you don't have a very social life, it does pay to stay outside London. Places outside London are cheap and you will get a better deal in relation to houses or flats as compared to London. I feel very priced out of the market regarding London mortgages I will... |
Buying a house, how much should my down payment be? | The reason to put more money down or accept a shorter maximum term is because the bank sweetens the deal (or fails to sour it in some fashion). For example, typically, if there is less than 20% down, you have to pay an premium called "Private Mortgage Insurance", which makes it bad deal. But I see banks offering the s... |
When does it make financial sense to take advantage of employer's tuition reimbursement program? | If you know that you want that advanced degree; And there is a way to have your employer pay for some of it or all of it; And you are reasonably certain that you will not be quitting for X years after completing the degree; Then it is financially sound to consider having the company pay for it. If you are interested in... |
How risky are penny stocks? | Penny stocks are only appealing to the brokers who sell the penny stocks and the companies selling "penny stock signals!". Generally penny stocks provide abysmal returns to the average investor (you or me). In "The Missing Risk Premium", Falkenstein does a quick overview on average returns to penny stock investors citi... |
Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan? | So, let's take a mortgage loan that allows prepayment without penalty. Say I have a 30 year mortgage and I have paid it for 15 years. By the 16th year almost all the interest on the 30 year loan has been paid to the bank This is incorrect thinking. On a 30 year loan, at year 15 about 2/3's of the total interest to be ... |
What are the downsides that prevent more people from working in high-income countries, and then retiring in low-income (and cost of living) ones? | I'm currently working as an expat, and my grandparents used to work overseas but retired to Canada so you could say my family has done things completely the opposite of what you suggest. However there are a number of very good reasons that my grandparents have done things the way we have, and I think it's worth sharing... |
What's the catch in investing in real estate for rent? | There are several things that are missing from your estimate: The terms for the mortgage for a rental property will be different. You may be required to have a larger down payment. When approving you for the mortgage they will not count all the rental income as income, they will assume periodic vacancies. This differen... |
Easiest way to diversify savings | Are there banks where you can open a bank account without being a citizen of that country without having to visit the bank in person? I've done it the other way around, opened a bank account in the UK so I have a way to store GBP. Given that Britain is still in the EU you can basically open an account anywhere. Germa... |
Why do people take out life insurance on their children? Should I take out a policy on my child? | A $10,000 life insurance policy on a child only makes sense for a family that: Thus, it could make sense: Many families are in this financial situation. A family in the combination of this financial situation and this emotional situation might be well served to seek religious counsel. If they find ways to remember lo... |
If one owns 75% of company shares, does that mean that he would have to take upon himself 75% of the company's expenses? | You can look at the company separately from the ownership. The company needs money that it doesn't have, therefore it needs to borrow money from somewhere or go bankrupt. And if they can't get money from their bank, then they can of course ask people related to the company, like the two shareholders, for a loan. It's ... |
Finance, Cash or Lease? | Now, to buy in full (and essentially have zero savings), buy in part (£10000 deposit, followed by a loan of £4000) or PCP/HP more of the value? So, you are assessing if the car is worth having with either none or only 4,000 in savings. This is the most critical information you have provided. My outright opinion is to... |
Do I make money in the stock market from other people losing money? | Just because your slice of pie gets bigger doesn't necessarily mean someone else's becomes smaller. In a lot of cases it's the entire pie that gets bigger. Why is the pie bigger? More investors (savers turn investors; foreign investments, etc.), more money printed (QE anyone?), Market sentiment changes (stock is priced... |
Recording of personal property contribution to S-Corp in QuickBooks | One approach would be to create Journal Entries that debit asset accounts that are associated with these items and credit an Open Balance Equity account. The value of these contributions would have to be worked out with an accountant, as it depends on the lesser of the adjusted basis vs. the fair market value, as you t... |
Why do most banks in Canada charge monthly fee? | You have to check your contract to be sure what is it you're paying for. Typically, you get some of the following features which can be unavailable to you in banks which don't charge a monthly fee: Arguably, these expenses could be paid by the interest rates your money earn to the bank. Notice how banks which don't cha... |
What are the pros and cons of buying an item on installments with zero percent interest? | I personally take the zero percent financing plans any day. I have done this with my car and the iphone 6s. The vendors are trying to make it more attractive for you to "afford" the product. It could show up on your credit report and impact the amount of money you can borrow in the future (e.g getting a home loan). ... |
What steps should be taken, if any, when you find out your home's market value is underwater, i.e. worth less than the mortgage owed? | Do you still enjoy living in your home? Can you afford the mortgage payments? Is there a reason for you to move, such as a relocation for work, or your third kid is on the way and your current house is already crowded with two? Those questions are more important than "Is my home worth more than what I owe on it". Ultim... |
In a competitive market, why is movie theater popcorn expensive? | I think a labor management issue explains the high cost of popcorn. Some weeks theaters are loaded with patrons and other weeks there are many fewer patrons. If popcorn were priced so that most patrons bought some the theater manager would have to have lots of employees to sell popcorn on the really busy days. The mana... |
What are dividends, when are they paid, and how do they affect my position? | Dividends are normally paid in cash, so don't generally affect your portfolio aside from a slight increase to 'cash'. You get a check for them, or your broker would deposit the funds into a money-market account for you. There is sometimes an option to re-invest dividends, See Westyfresh's answer regarding Dividend Re... |
How many days does Bank of America need to clear a bill pay check | Firstly, it isn't so generous. It is a win-win, but the bank doesn't have to mail me a free box of checks with my new account, or offer free printing to compete for my business. They already have the infrastructure to send out checks, so the actual cost for my bank to mail a check on my behalf is pretty minimal. It ... |
I am a Canadian resident who wants to gift my Adult US child CAD$175K. What are the tax implications? | The United States taxes gifts to the giver, not the receiver. Thus, in your case there would be no direct tax implications from the receiver so long as you are gifting cash and the cash is in Canada. If you are gifting capital (stocks, property, etc.), or if you are gifting something that is in the United States (US ... |
Are 'no interest if paid in in x months' credit cards worth it? | It has been reported in consumer media (for example Clark Howard's radio program) that the "no interest for 12 months" contracts could trick you with the terms and the dates on the contract. Just as an example: You borrow $1000 on 12/1/2013, same as cash for 12 months. The contract will state the due date very clearly... |
How can I remove the movement of the stock market as a whole from the movement in price of an individual share? | As others have pointed out, the value of Apple's stock and the NASDAQ are most likely highly correlated for a number of reasons, not least among them the fact that Apple is part of the NASDAQ. However, because numerous factors affect the entire market, or at least a significant subset of it, it makes sense to develop a... |
Should my husband's business pay my business? | Is it worth it for me to "charge" him? I can think of two reasons why you might want to charge your husband: |
Are reimbursements from company taxable,and do I need to deduct them? | I'm assuming that you're in the US. In that case, the answer is that it depends on how your company set up its reimbursement plan. The IRS recognizes "accountable" and "nonaccountable" plans. Accountable plans have to meet certain requirements. Anything else is nonaccountable. If you are reimbursed according to an... |
Is it OK to use a credit card on zero-interest to pay some other credit cards with higher-interest? | The short answer is: it depends. The longer answer is that balance transfers are tricky, and often a bait-and-switch; they'll offer 0% interest, but charge a 3-4% "fee" (which isn't interest and is perfectly legal) on the amount transferred. If you transfer $5000, you now owe the new card company $5,200. Now, that coul... |
At what interest rate should debt be used as a tool? | Money is a commodity like any other, and loans are a way to "buy" money. Like any other financial decision, you need to weigh the costs against the benefits. To me, I'm happy to take advantage of a 0% for six months or a modest 5-6% rate to make "capital" purchases of stuff, especially for major purchases. For example,... |
How is someone tax exempt at Walmart in Canada? | The short answer is you're tax exempt if the tax laws say you are. There are a bunch of specific exemptions based on who you are, what you're buying and why. Taking British Columbia as an example. One exemption is supplies for business use: Some exemptions are only available to certain purchasers in certain circumstan... |
Is 'days to cover' a useful metric in identifying the potential for a short squeeze? | SeekingAlpha has an article about short squeezes that states: The higher the number of days to cover means the possibility for a short squeeze is greater, and the potential size of the short squeeze is also greater Logically, this makes sense. A short squeeze occurs when a lack of supply meets excess demand for a stock... |
Why do people take out life insurance on their children? Should I take out a policy on my child? | My parents and I were suckered into buying this kind of thing when I was in high school. The sales people literally told us that it could be used to pay off student loans - they left out the "in the event of your death" part. We knew it was a life insurance policy, but were told that it would "mature" 6 months after gr... |
Given a certain yearly savings, how much can I spend on a capital improvement? NPV of future cash flow | For this, the internal rate of return is preferred. In short, all cash flows need to be discounted to the present and set equal to 0 so that an implied rate of return can be calculated. You could try to work this out by hand, but it's practically hopeless because of solving for roots of the implied rate of return which... |
Formula that predicts whether one is better off investing or paying down debt | The formula you are looking for is pretty complicated. It's given here: http://itl.nist.gov/div898/handbook/eda/section3/eda3661.htm You might prefer to let somebody else do the grunt work for you. This page will calculate the probability for you: http://stattrek.com/online-calculator/normal.aspx. In your case, you'd e... |
Website for managing personal cash inflow and outflow, applicable to India? | Use buxfer.com. It's available in India and most of the features are free. |
Is there any way to pay online in a country with no international banking system | paypal says it works with CBE but can't seem to link my account with them, but skrill works perfectly just go to www.skrill.com sign up and you can link your bank account with your skrill account, i've had a few transactions so it should work for you too. |
As an investor what are side effects of Quantitative Easing in US and in EU? | Quantitative Easing Explained: http://www.npr.org/blogs/money/2010/10/07/130408926/quantitative-easing-explained The short of it is that you're right; the Fed (or another country's Central Bank) is basically creating a large amount of new money, which it then injects into the economy by buying government and institutio... |
Advice on low-risk long-term strategy for extra cash? | Look at a mixture of low-fee index funds, low-fee bond funds, and CDs. The exact allocation has to be tailored to your appetite for risk. If you only want to park the money with essentially no risk of loss then you need FDIC insured products like CDs or a money market account (as opposed to a money market fund which is... |
Best way to invest money as a 22 year old? | Hopefully this $1000 is just a start, and not the last investment you will ever make. Assuming that, there are a couple of big questions to consider: One: What are you saving for? Are you thinking that this is for retirement 40 or 50 years from now, or something much sooner, like buying a car or a house? You didn't say... |
Why do people always talk about stocks that pay high dividends? | The answer, for me, has to do with compounding. That drop in price post-ex-div is not compounded. But if you reinvest your dividends back into the stock then you buy on those post-ex-div dips in price and your money is compounded because those shares you just bought will, themselves, yeald dividends next quarter. Also... |
Is the best ask price the ask at the “top” of the order book? What is the “top” of the book? | You're confusing a specific visual representation of the top bid & ask orders selected from the order book with the actual "top of the book". "Top" in the sense of the "top of the book" is a ranking (by order of "best", different for bids vs. asks) and not meant to be strictly a visual positioning on a page or screen.... |
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