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Received a late 1099 MISC for income I reported already, do I have to amend? | Why would the IRS be coming after you if you reported the income? If you reported everything, then the IRS will use the 1099 to cross-check, see that everything is in order, be happy and done with it. The lady was supposed to give you the 1099 by the end of January, and she may be penalized by the IRS for being late, b... |
Pay off car loan entirely or leave $1 until the end of the loan period? | I used to work for Ally Auto (formerly known as GMAC) and I'd advise not to pay off the account unless you need to free up some debt in your credit report since until the account is paid off it will show that you owe your financial institution the original loan amount. The reason why I am saying not to pay-off the acco... |
Dividend vs Growth Stocks for young investors | The key is to look at total return, that is dividend yields plus capital growth. Some stocks have yields of 5%-7%, and no growth. In that case, you get the dividends, and not a whole lot more. These are called dividend stocks. Other stocks pay no dividends. But if they can grow at 15%-20% a year or more, you're fine.Th... |
Why do stocks priced above $2.00 on the ASX sometimes move in $0.005 increments? | Like in the US, more flexibility is extended to hidden orders. Australia has taken an aggressive approach to hidden orders in the direction of lower ticks. Aussies have a rich financial that evolved differently than the Dutch custom more familiarly known in the UK and US. They, like Chicago evolved out of commodities t... |
Online tutorials for calculating DCF (Discounted Cash Flow)? | what do you mean exactly? Do you have a future target price and projected future dividend payments and you want the present value (time discounted price) of those? Edit: The DCF formula is difficult to use for stocks because the future price is unknown. It is more applicable to fixed-income instruments like coupon bo... |
How do I adjust to a new social class? | The prices reflect what the market will bear. People have more money, things will likely cost more. Think of it in terms of percentages and you can start to justify the higher housing costs. My father likes to tell me that his first mortgage cost him $75 a month, and he had no idea how he was going to pay it each mon... |
Bonds vs equities: crash theory | Cash would be the better alternative assuming both stocks take a major hit in ALL categories AND the Fed raise rates at the same time for some reason. Money market funds that may have relatively low yields at the moment would likely be one of the few securities not to be repriced downward as interest rates rising would... |
Old Cancelled Cards | FICO 08, a newer fico formula that many lenders are simultaneously switching to now, ignores artificially lengthened credit history/score by piggybacking. So don't feel left out in that regard. Average age of accounts is affected when closed accounts fall off your credit report, which can take 7 years, not just by clo... |
What is the most effective saving money method? | In a word: budgeting. In order to have money left over at the end of the month, you need to be intentional about how you spend it. That is all a budget is: a plan for spending your money. Few people have the discipline and abundance of income necessary to just wing it and not overspend. By making a plan at home ahead ... |
How are startup shares worth more than the total investment funding? | He is worth $17.5 billion today Note that he is worth that dollar figure, but he doesn't have that many dollars. That's the worth of his stake in the company (number of shares he owns times the assumed value per share), i.e. assuming its total value being several hundreds of billions, as pundits assume. However, it is ... |
When will Canada convert to the U.S. Dollar as an official currency? | I would say at about the same time as the US converts to having a public health system that covers everyone with very few people with private insurance. |
Treasury Bonds, and why has the NYSE 20+ Year Treasury Bond index (AXTWEN) gone up so much in the last year (2011)? | The NYSE 20 Year Plus Treasury Bond Index (AXTWEN) is a multiple-security fixed income index that aims to track the total returns of the long-term 20 year and greater maturity range of the U.S. Treasury bond market. The index constituent bonds are weighted by their relative amounts outstanding.One cannot directly inves... |
Is it ok to have multiple life time free credit cards? | Do you need it? It doesn't sound like it - you seem to be able to manage with just the cards you have. Will it hurt anything? Probably not either, unless it entices you to spend more than you make. Another downside might be that you would spend more than you normally would just to have activity on every card. So all ... |
Using credit cards online: is it safe? | Why do online services ask for all those CVV codes and expiration date information, if, whenever you poke the card out of your wallet, all of its information becomes visible to everyone in the close area? What can I do to secure myself? I'd guess that's to protect the card company, not you. The number of the card is g... |
How to get an ITIN if I don't have passport? | On the IRS site you can find a list of "acceptance agents" in your country. Talk to one of them, they'll deal with the IRS on your behalf. If you don't have any in your country, you can contact the big-4 accounting firms or any other agent elsewhere to provide you service. I'd suggest doing this through an agent. |
Is it accurate to say that if I was to trade something, my probability of success can't be worse than random? | If i do this, I would assume I have an equal probability to make a profit or a loss. The "random walk"/EMH theory that you are assuming is debatable. Among many arguments against EMH, one of the more relevant ones is that there are actually winning trading strategies (e.g. momentum models in trending markets) which inv... |
Difference between full and mini futures contract | Both of these are futures contracts on the Ibovespa Brasil Sao Paulo Stock Exchange Index; the mini being exactly that, a mini version (or portion) of the regular futures contract. The mini counterpart makes trading the index more affordable to individual investors and hence increase liquidity. |
23 and on my own, what should I be doing? | You are doing Great! But you might want to read a couple of books and do some studying on budgeting and personal finance - education yourself now and you will avoid pain in the future. I learned a lot from reading Dave Ramsey's Total Money Makeover, and I have found some great advice from the simple budgeting guideline... |
Taxing GoFundMe Donations | The $20k limit seems to be (from another answer) the threshold for GoFundMe to report the campaign. However, such a report does not change the taxability of the income. The income is either taxable or non-taxable regardless of whether the amount is $19,999 or $20,001. This is a common misconception, commonly seen when ... |
how much of foreign exchange (forex/fx) “deep liquidity” is really just unbacked leverage and what is the effect? | First it is worth noting the two sided nature of the contracts (long one currency/short a second) make leverage in currencies over a diverse set of clients generally less of a problem. In equities, since most margin investors are long "equities" making it more likely that large margin calls will all be made at the sam... |
Exercising an option without paying for the underlying | Unless you want to own the actual shares, you should simply sell the call option.By doing so you actual collect the profits (including any remaining time-value) of your position without ever needing to own the actual shares. Please be aware that you do not need to wait until maturity of the call option to sell it. Also... |
Over the long term, why invest in bonds? | Bonds provide protections against stock market crashes, diversity and returns as the other posters have said but the primary reason to invest in bonds is to receive relatively guaranteed income. By that I mean you receive regular payments as long as the debtor doesn't go bankrupt and stop paying. Even when this happens... |
Is there a candlestick pattern that guarantees any kind of future profit? | John Person has a pattern called the High Close Doji that is probably the most reliable signal in the world of candle patterns. I would check out Candle Stick and Pivot Point Trade Triggers. It all I use in trading stocks + forex. |
Stock grant, taxes, and the IRS | I went through this too. There's a safe-harbor provision. If you prepay as estimated tax payments, 110% of your previous year's tax liability, there's no penalty for underpayment of the big liquidity-event tax liability. https://www.irs.gov/publications/p17/ch04.html That's with the feds. Your state may have different... |
Why would a mutual fund plummet on the same day it pays its annual distribution & capital gains? [duplicate] | The price of a share of a mutual fund is its Net Asset Value (nav). Before the payout of dividends and capital gain distribution, the fund was holding both stock shares and cash that resulted from dividends and capital gains. After the payout, a share only holds the stock. Therefore once the cash is paid out the NAV mu... |
Can I get a discount on merchandise by paying with cash instead of credit? | There are two fundamentally different reasons merchants will give cash discounts. One is that they will not have to pay interchange fees on cash (or pay much lower fees on no-reward debit cards). Gas stations in my home state of NJ already universally offer different cash and credit prices. Costco will not even take ... |
Should I sell my stocks to reduce my debt? | Simply put, the interest you're paying on your loans is eating into any gains you have in the stock market. So, figure out how much you're paying in interest and consider the feasibility of paying off some of the loan. Also figure in if you would be selling the stock at a profit or a loss. Generally speaking, a hom... |
As an investor or speculator, how might one respond to QE3 taper? | As I tell all my clients... remember WHY you are investing in the first. Make a plan and stick to it. Find a strategy and perfect it. A profit is not a profit until you take it. the same goes with a loss. You never loose till you sell for less than what you paid. Stop jumping for one market to the next, find one stra... |
Can I register for VAT to claim back VAT without selling VAT applicable goods? (UK) | You cannot "claim back" VAT. What happens is that if you sell goods with VAT and charge customers VAT, you would have to send that VAT straight to HMRC, but if your business itself paid VAT, then you already paid VAT, so you have to send less. As an example, if you send an invoice for £10,000 plus £2,000 VAT, and you ... |
What is a “margin-call” and how are they enforced? | Simplest way to answer this is that on margin, one is using borrowed assets and thus there are strings that come with doing that. Thus, if the amount of equity left gets too low, the broker has a legal obligation to close the position which can be selling purchased shares or buying back borrowed shares depending on if ... |
Suitable Vanguard funds for a short-term goal (1-2 years) | 1-2 years is very short-term. If you know you will need the money in that timeframe and cannot risk losing money because of a stock market correction, you should stay away from equities (stocks). A short-term bond fund (like VBISX) will pay around 1%, maybe a bit more, and only has a small amount of risk. Money Market ... |
What is a good 5-year plan for a college student with $15k in the bank? | You can put them in a 5 years CD and getting a maximum of %2.5 APY if you're lucky. If you put 15k now, in 5 years you'll have $1.971. If it sounds good then take a look at the current inflation rate (i'm in usa)... If you want to think about retirement then you should open a Roth IRA. But you won't be able to touch th... |
Do I make money in the stock market from other people losing money? | In gambling, the house also takes a cut, so the total money in the game is shrinking by 2-10 percent. So if you gain $100, it's because other people lost $105, and you do this for dozens of plays, so it stacks up. The market owns companies who are trying to create economic value - take nothing and make it something. ... |
Does the stock market create any sort of value? | When you own stock in a company, you do literally own part of the business, even if it's a small portion. Anyone amassing over 50% of shares really does have a controlling interest. No, you can't trade a handful of AAPL shares back to Apple for an iPod, but you can sell the shares and then go buy an iPod with the proce... |
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 ... |
Are junk bonds advisable to be inside a bond portfolio that has the objective of generating stable income for a retiree? | Junk Bonds (aka High Yield bonds) are typically those bonds from issues with credit ratings below BBB-. Not all such companies are big risks. They are just less financially sound than other, higher rated, companies. If you are not comfortable doing the analysis yourself, you should consider investing in a mutual fund, ... |
Buying insurance (extended warranty or guarantee) on everyday goods / appliances? | One important issue that has yet to be covered is the cost (to you) in terms of paperwork, lost time, and phone calls that you have to make to claim the insurance. Such insurance claims often are very low priority on their customer service queues (for obvious reasons, since they have already made the sale). Therefore,... |
In US, is it a good idea to hire a tax consultant for doing taxes? | It's going to depend entirely on your tax situation, its complexity, and your willingness/interest in dealing with tax filings. Personally I find that not only do I not enjoy dealing with figuring out my taxes, but I don't know even a fraction of the possible deductions available and all the clever ways to leverage th... |
Is there strategy to qualify stock options with near expiry date for long term capital gain tax? | There some specific circumstances when you would have a long-term gain. Option 1: If you meet all of these conditions: Then you've got a long-term gain on the stock. The premium on the option gets rolled into the capital gain on the stock and is not taxed separately. From the IRS: If a call you write is exercised an... |
How much should a new graduate with new job put towards a car? | Regardless of your circumstances, the amount of money you should put into a car is about $6000-8000 or the amount of cash you actually have, whichever is less. You can get a very reliable gently-used car in that price range, and a car that's plenty good to drive for basically whatever your budget is, down to about $150... |
Howto choose a marketplace while submitting an order for a stock trade | It depends on your cost structure and knowledge of the exchanges. It could be optimal to make a manual exchange selection so long as it's cheaper to do so. For brokers with trade fees, this is a lost cause because the cost of the trade is already so high that auto routing will be no cheaper than manual routing. For bro... |
Where are open-end funds traded? | Close-end funds just means there's a fixed number of shares available, so if you want to buy some you must purchase from other existing owners, typically through an exchange. Open-end funds mean the company providing the shares is still selling them, so you can buy them directly from the company. Some can also be trad... |
Where can I place my savings in to limit my exposure to the risk of European bank failures and sovereign debt defaults? | You're talking about money in a savings account, and avoiding the risks posed by an ongoing crisis, and avoiding risk. If you are risk-averse, and likely to need your money in the short term, you should not put your money in the stock market, even in "safe" stocks like P&G/Coca-Cola/etc. Even these safe stocks are at r... |
Recognizing the revenue on when virtual 'credits' are purchased as opposed to used | I'll assume United States as the country; the answer may (probably does) vary somewhat if this is not correct. Also, I preface this with the caveat that I am neither a lawyer nor an accountant. However, this is my understanding: You must recognize the revenue at the time the credits are purchased (when money changes ... |
Buying USA Stocks from Sri Lanka | Verify if a local bank offers to participate in different stock markets - big companies like apple or facebook often gets traded on different markets - like Xetra (germany) or SIX (Switzerland). That being said I'd recommend you to rethink this strategy and maybe using some products offered by your bank - for 1000$ you... |
Can I calculate stock value with Williams%R if I know the last set? | William %R is a momentum indicator used for measuring overbought and oversold levels, it is not used to predict the price of a stock. In fact, William %R, like all momentum indicators, is a lagging indicator - meaning the indicator level changes as the price of the stock changes. It ranges from 0 to -100. Usually when ... |
Why would anyone want to pay off their debts in a way other than “highest interest” first? | I wouldn't advocate it, but one reason to pay a lower interest rate is if you have $990 on a $1000 limit credit card with 6% interest and $5000 on a $15k limit card at 10% interest. Having $500 to pay in a month and putting it on the lower interest would free up a greater percentage of credit on that card and could pot... |
Should my retirement portfolio imitate my saving portfolio? | Short Answer: Length of Time invested and risk should be correlated. From what I am hearing this is pretty good game plan for your age. Minutia: Once you get closer to retirement lets say in 20 years. You might want to treat two lumps of money with different risk. For me at 49 I have a lump of money for 55-70 that ... |
Calculating the Free Cash Flow (FCF) | First, don't use Yahoo's mangling of the XBRL data to do financial analysis. Get it from the horse's mouth: http://www.sec.gov/edgar/searchedgar/companysearch.html Search for Facebook, select the latest 10-Q, and look at the income statement on pg. 6 (helpfully linked in the table of contents). This is what humans do... |
Is there a candlestick pattern that guarantees any kind of future profit? | I did a historical analysis a few years back of all well-known candlestick patterns against my database of 5 years worth of 1-minute resolution data of all FTSE100 shares. There wasn't a single pattern that showed even a 1% gain with 60% reliability. Unfortunately I don't have spread data other than for a handful of ... |
How to find a good third-party, 401k management/advice service? | Another option to a human advisor is FutureAdvisor, a web service that (if it supports your 401k plan) gives personalized algorithmic advice on what you should hold in your 401(k) and other retirement accounts. If it doesn't support your 401(k) plan just yet you can sign up to be emailed when your plan is added. [Dis... |
Are parking spaces and garage boxes a good investment? | If the company that owns the lot is selling them it is doing so because it feels it will make more money doing so. You need to read carefully what it is you are getting and what the guarantees are from the owner of the property and the parking structure. I have heard from friends in Chicago that said there are people... |
Gigantic point amount on rewards card - what are potential consequences? | An ideal option for you would be to use as many or as few as you choose, but have all of them available to you. The service desk guy told you you can do exactly that. Problem, though: you have no proof that a representative of the company told you that. Get proof. Recording, written statement, whatever. If writing a le... |
I'm 23 and was given $50k. What should I do? | I would advise against "wasting" this rare opportunity on mundane things, like by paying off debts or buying toys - You can always pay those from your wages. Plus, you'll inevitably accumulate new debts over time, so debt repayment is an ongoing concern. This large pile of cash allows you to do things you can't ordinar... |
Sell or keep rental Property? | How is the current mortgage payment broken out? I have a mortgage on a rental property with a payment of $775, but $600 is principal. If I were at breakeven on a sale or a bit underwater, I'd be better off just holding still, the tenant paying the loan down over $7000/year. You question is a good one, but a good answe... |
How should we prioritize retirement savings, paying down debt, and saving for a house? | Pay the debt down. Any kind of debt equals risk. No debt equals no risk and a better chance to have that money earn you income down the road once it's invested. That and you will sleep so much better knowing you have ZERO debt. You 6 month emergency fund is probably good. Remember to keep it at 6 months living expenses... |
Will having a secondary signee with bad credit on a mortgage raise or lower interest? | Generally speaking the lower credit score trumps. In the case you cite, the lower credit score will prevail. However, you may need to do exactly that in order to qualify for the loan income wise. There are two factors when obtaining a mortgage, really all loans, but more so with a mortgage: the likeliness to repay... |
Is Cash Value Life Insurance (“whole life” insurance) a good idea for my future? | I am of the strong opinion that life insurance should be purchased as a term product and nothing more. The internal expense is usually high, the returns, poor and the product disclosure is often incomprehensible. The only purpose Cash Value Life Insurance serves, in my opinion, is to fund the retirement and college edu... |
How does sales tax holiday change tax? | I believe you are confusing sales tax with income tax. The tax holidays in the US are only for sales tax. Consumers purchasing certain goods during the tax holiday do not have to pay sales tax like they normally would. Effectively the price is slightly lower during those days with the purpose of giving people an extra ... |
Single investment across multiple accounts… good, bad, indifferent? | One implication is the added fees if you are investing in something with a trading cost or commission, such as your stock purchase. If you pay low costs to trade (e.g. with a discount broker) and don't switch your investments often, then costs overall should remain reasonable .. but always be aware of your costs and se... |
If throwing good money after bad is generally a bad idea, is throwing more money after good Ok? | To expand a bit on what TripeHound said in the comment section, past performance is not indicative of future performance, which is why the best advice is to ignore if you already own the stock or not. If the stock goes down, but you've done your research and think it will come back, then investing more isn't a bad ide... |
Calculate investment's interest rate to break-even insurance cost [duplicate] | I wouldn't call it apples and oranges. This is literally an opportunity cost calculation. You can safely assume S&P500 will perform at least 11% over any 10 year period. Since failing companies are delisted and replaced with new growing companies, the market should continue to grow. No, it's not guaranteed. Lets u... |
Credit card grace period for pay, wait 1 day, charge? | You shouldn't be charged interest, unless possibly because your purchases involve a currency conversion. I've made normal purchases that happened to involve changes in currency. The prices were quoted in US$ to me. On the tail end, though, the currency change was treated as a cash advance, which accrues interest imme... |
What is an effective way to invest in electric car industry? | You could have googled this question. I did so and found a link to this article. YMMV taking investment advice from thestreet.com is very likely to lose you money. However, there do not seem to be any sector funds that specifically focus on the electric vehicle market. Along similar, but not exactly the same lines, t... |
Should I buy stocks of my current employer because of its high dividend yield? | Generally, it is considered a bad idea to put significant parts of your money in your own employer's stock, no matter how great the company looks right now. The reason is the old 'don't put all your eggs in one basket'. If there is ever a serious issue with your company, and you lose your job because they go down the d... |
Does this plan make any sense for early 20s investments? | I would wait, and invest that money in a Roth IRA. Because taxes are paid on the contributions to a Roth IRA, you can withdraw the contributions at any time, tax and penalty-free. In addition, you can withdraw contributions and earning to purchase your first home. |
Why do people take out life insurance on their children? Should I take out a policy on my child? | Adam Davis's answer is pretty good. However, I think he misses something with regard to the costs of a funeral. According to funeralplanning101.com, a traditional funeral can cost upwards of $15,000. Having just planned and paid for a funeral for an adult, I can assure you that this figure is low. I've heard "$10,000 -... |
How to sell a stock in a crashing market? | Your question contains a faulty assumption: During crashes and corrections the amount of sellers is of course higher than the amount of buyers, making it difficult to sell stocks. This simply isn't true. Every trade has two sides; thus, by definition, for every seller there is buyer and vice versa. Even if we broaden... |
Should I pay a company who failed to collect VAT from me over 6 months ago? | It looks like businesses selling services (like software downloads) from outside the EU to the UK have to register for VAT if the amount of such sales goes over the UK VAT registration threshold: [If] the value of the taxable supplies you make is over a specified threshold [then] you must register for VAT So it seems... |
Wash sale rule with dividend reinvestment | I was not able to find any authority for the opinion you suggest. Wash sale rules should, IMHO, apply. According to the regulations, you attribute the newly purchased shares to the oldest sold shares for the purposes of the calculation of the disallowed loss and cost basis. (c) Where the amount of stock or securities a... |
What's the difference between TaxAct and TurboTax? | I prefer TaxAct. I find it simpler to use and more helpful in helping answer the questionnaire. I have a fairly complex tax return and it handles it just fine. |
Is it possible to borrow money to invest in a foreign country? | Most likely, this will not work they way you think. First things first, to get a loan, the bank needs to accept your collateral. Note that this is not directly related to the question what you plan to do with the loan. Example: you have a portfolio of stocks and bonds worth USD 2 million. The bank decides to give you a... |
Is diversification better | Diversification tends to protect you from big losses. But it also tends to "protect" you from big gains. In any industry, some companies provide good products and services and prosper while others have problems and fail. (Or maybe the winners are just lucky or they paid off the right politicians, whatever, not the poin... |
What are the risks of Dividend-yielding stocks? | Having a good dividend yield doesn't guarantee that a stock is safe. In the future, the company may run into financial trouble, stop paying dividends, or even go bankrupt. For this reason, you should never buy a stock just because it has a high dividend yield. You also need some criteria to determine whether that stock... |
How should minor children be listed as IRA beneficiaries? | I would like to bring up some slightly different points than the ones raised in the excellent answers from JoeTaxpayer and littleadv. The estate can be the beneficiary of an IRA -- indeed, as has been pointed out, this is the default beneficiary if the owner does not specify a beneficiary -- but a testamentary trust c... |
Margin when entered into a derivative contract | Derivatives derive their value from underlying assets. This is expressed by the obligation of at least one counterparty to trade with the other counterparty in the future. These can take on as many combinations as one can dream up as it is a matter of contract. For futures, where two parties are obligated to trade at... |
How to share income after marriage and kids? | I won't answer in a detailed manner because most people at this site like answers with certain bias' on these questions, like pool resources always relative to which partner is asking. If you follow the above advice, you are hoping things work out. Great! What if they don't? It will be very messy. Unlike most of m... |
Is my employee stock purchase plan a risk free investment? | It's a risk free investment only if you have 100% warranty that you will be able to sell these stocks for a better price than what you've paid. And that's virtually impossible. I don't think there is any "risk free investment" when stocks are involved. You can try to minimize the risks and consider them low, but IMO it... |
Higher returns from international markets? | I went to Morningstar's "Performance" page for FUSEX (Fideltiy's S&P 500 index fund) and used the "compare" tool to compare it with FOSFX and FWWFX, as well as FEMKX (Fidelity Emerging Markets fund). According to the data there, FOSFX outperformed FUSEX in 2012, FEMKX outperformed FUSED in 2010, and FWWFX outperformed... |
Retirement Funds: Betterment vs Vanguard Life strategy vs Target Retirement | Life Strategy funds are more appropriate if you want to maintain a specific allocation between stocks and bonds that doesn't automatically adjustment like the Target Retirement funds which have a specific date. Thus, it may make more sense to take whichever Life Strategy fund seems the most appropriate and ride with i... |
Please explain: What exactly is a CDS or “Credit Default Swap”? | A Credit Default Swap (CDS) is a contract between two parties. A useful analogy is insurance (but by no means exact). I pay a quarterly premium in order to insure myself against another event. In this case, it might be that I own some IBM Bonds. I am happy to own those bonds, and like the "coupon" that they pay me. ... |
Do stock prices really go down by the amount of the dividend? | It might be clearer to think of it as price going up when a dividend is expected, since that's money you'll get right back. As the delay before the next dividend payment increases, that becomes less of a factor, |
If gold's price implodes then what goes up? | It's not clear that anything needs to go up if gold goes down. In a bubble, asset prices can just collapse, without some other asset increasing to compensate. Economies are not a zero-sum game. On the other hand, gold may fall when people decide they don't need to hoard some store of value that, to their minds, never c... |
What evidence exists for claiming that you cannot beat the market? | common sentiment that no investor can consistently beat the market on returns. I guess its more like very few investor can beat the market, a vast Majority cannot / do not. What evidence exists for or against this? Obviously we can have a comparison of all investors. If we start taking a look at some of the Actively M... |
Is there a term for the risk of investing in an asset with a positive but inferior return? | I'd question whether a guaranteed savings instrument underperforming the stock market really is a risk, or not? Rather, you reap what you sow. There's a trade-off, and one makes a choice. If one chooses to invest in a highly conservative, low-risk asset class, then one should expect lower returns from it. That doesn... |
Will a credit card issuer cancel an account if it never incurs interest? | No, they won't cancel it because you pay your card on time. When a company offers a promotion like that they are banking on making money on average, not in every case. On average including all the benefits including transaction fees, deals for partnering with best buy, etc. Of course some people pay their credit car... |
As a young adult, what can I be doing with my excess income? | I also have approx. £6000 in debt Just a note: you're guaranteed to get a return on whatever debt you pay off quickly. Even if your debt is only 2%, you get a guaranteed return of 2% - which is higher than most of the savings here in the US (not sure about the UK). You mention saving for a house, which is also a good ... |
How can I check my credit score? | Assuming you are asking about a credit score in the United States, the following applies. To find out your FICO score, navigate to AnnualCreditReport, the official site to help consumers receive their credit report from each of the three organizations providing these scores - Equifax, Experian, and TransUnion. You are... |
Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS | Generally, I consider it bad etiquette to inconvenience others. I would recommend cash for small purchases. Try to offer as close to the required amount as possible. Don't pay with several dollars worth of change if you can avoid it. You shouldn't need to carry a lot of cash. When you do don't make it obvious. |
How do rich people guarantee the safety of their money, when savings exceed the FDIC limit? | The FDIC has been pretty good at recovery lost money from failed banks. The problem is the temporary loss from immediate needs. The best thing for anyone to do is diversify in investments and banks with adequate covered insurance for all accounts. Immediate access to available cash is always a priority that should be g... |
How exactly does dealing in stock make me money? | This is a very good question! The biggest difference is that when you put money in a savings bank you are a lender that is protected by the government, and when you buy stocks you become an owner. As a lender, whether the bank makes or loses money on the loans it makes, they still maintain your balance and pay you inte... |
Is it ever a good idea to close credit cards? | Assuming that a person has good financial discipline and is generally responsible with spending, I think that having a few hundred or thousand dollars extra of available credit is usually worth more to that person for the choice/flexibility it provides in unforeseen circumstance, versus the relatively minor hit that co... |
Why would someone want to buy an option on the day of expiry | Yes there will be enough liquidity to sell your position barring some sort of Flash Crash anomaly. Volume generally rises on the day of expiration to increase this liquidity. Don't forget that there are many investment strategies--buying to cover a short position is closing out a trade similar to your case. |
What is the effect of a high dollar on the Canadian economy, investors, and consumers? | It depends primarily on how the Canadian economy is designed i.e export oriented or import oriented. If you look at this, it shows more or less equal amount of exports and imports. For the specific case of Canada, the exports would become costlier, because of a costlier dollar, but at the same time imports would become... |
Would I qualify for a USDA loan? | All the above advices plus this: For you first house, you should start smaller. Buy a 100k or less condo if possible, then grow from there. You sell every 5 years or so when the market is favorable and you will slowly get to that nice 250k house. |
Is Mint allowed to share user data with other Intuit entities? | I wound up asking Mint over email so I'll share the answer I received: Thank you for contacting Mint.com. From my understand you want to know if Mint can transfer data to other Intuit products and vice versa. Let me address your concern based from what I can see on my tools. Upon confirming, while Mint and other I... |
Why invest for the long-term rather than buy and sell for quick, big gains? | Playing the markets is simple...always look for the sucker in the room and outsmart him. Of course if you can't tell who that sucker is it's probably you. If the strategy you described could make you rich, cnbc staff would all be billionaires. There are no shortcuts, do your research and decide on a strategy then stick... |
First Job, should I save or invest? | There is no absolute answer to this as it depends on your particular situation, but some tips: As to investing versus saving, you need to do some of both: Be careful about stockpiling too much in bank accounts. Inflation will eat that money up over time to the tune of 3-4%/year. You are young and have a longer investme... |
What is the best asset allocation for a retirement portfolio, and why? | Take the easy approach - as suggested by John Bogle (founder of Vanguard - and a man worthy of tremendous respect). Two portfolios consisting of 1 index fund each. Invest your age% in the Fixed Income index fund. Invest (1-age)% in the stock index fund. Examples of these funds are the Total Market Index Fund (VTSMX) a... |
How to understand the caculation of interest for credit cards? | Suppose you have been paying interest on previous charges in the past. Your monthly statement is issued on April 12, and (since you just received your income tax refund), you pay it off in full on April 30. You don't charge anything to the card at all after April 12. Thus, on April 30, your credit card balance shows... |
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