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What does the term “match the market” mean? | From Investopedia: "Beating the market" is a difficult phrase to analyze. It can be used to refer to two different situations: 1) An investor, portfolio manager, fund or other investment specialist produces a better return than the market average. The market average can be calculated in many ways, but usually a ... |
Why do car rental companies prefer/require credit over debit cards? | I have looked at the conditions of a car rental company, and I believe it provides the answers: Upon pick up of your vehicle, you must present a valid credit card (*) used to make the booking and which must be in the driver´s name. If you do not have a valid credit card we will accept your debit card when you pic... |
How to deal with the credit card debt from family member that has passed away? | Debts do not inherit to the children. You are absolutely not liable for your parent's debt, in any way whatsoever. ** Collection agents will lie about this; tricking you is their job, and your job is to tell them Heck no, do I look like an idiot? When a person dies, all their personal assets (and debts) go to a fictit... |
If a stock is selling for less than book value, is the company headed for bankruptcy? | No, but it is certainly a possibility. the efficient market hypothesis would say that this means that the market perceives the present value of all future earning as negative. These earnings might take the form of a writedown of assets at some point. (Companies carry a goodwill asset that is generally imaginary. They ... |
How and Should I Invest (As a college 18 year old with minimal living expenses)? | I have about $1K in savings, and have been told that you should get into investment and saving for retirement early. I make around $200 per week, which about $150 goes into savings. That's $10k per year. The general rule of thumb is that you should have six months income as an emergency fund. So your savings should b... |
High-risk investing is better for the young? Why? | There's two reasons. One is that you have a longer time horizon, other answers cover that. The second is that for someone who is younger, most of their capital is human capital in terms of their future work output (and earnings). If you're 25 and your $20,000 portfolio gets wiped out, that's only a small amount of your... |
Main source of the shares/stocks data on the web | To expand on keshlam's answer: A direct feed does not involve a website of any kind. Each exchange publishes its order/trade feed(s) onto a packet network where subscribers have machines listening and reacting. Let's call the moment when a trade occurs inside an exchange's matching engine "T0". An exchange then publi... |
Deductions greater than Income : Traditional IRA to Roth Conversion? | Yes. A most emphatic yes. I suggest you look at your 2014 return and project what 2015 will look like. I'd convert enough to "top off" the 15% bracket. Note, if you overshoot it, and in April 2016, see that you are say $5K into the 25% rate, you can just recharacterize the amount you went over and nail the bracket to ... |
Most effective Fundamental Analysis indicators for market entry | I think by definition there aren't, generally speaking, any indicators (as in chart indicators, I assume you mean) for fundamental analysis. Off the top of my head I can't think of one chart indicator that I wouldn't call 'technical', even though a couple could possibly go either way and I'm sure someone will help pro... |
Emerging markets index fund (VDMIX) for an inexperienced investor | In this environment, I don't think that it is advisable to buy a broad emerging market fund. Why? "Emerging market" is too broad... Look at the top 10 holdings of the fund... You're exposed to Russia & Brazil (oil driven), Chinese and Latin American banks and Asian electronics manufacturing. Those are sectors that don... |
Is it really possible to get rich in only a few years by investing? | Yes, it's possible. However, it's not likely, at least not for most people. Earning a million is not that difficult, but when you talk about billions that's an entirely different story. I think the key point that you're missing is leverage. It's common knowledge that Warren Buffett likes to have a huge cash warchest at... |
Take advantage of rock bottom oil prices | As others have alluded to but haven't said due to the lack of reputation points to spare, you can take advantage of oil prices by leveraging up and using as much credit and margin as the banks and brokerages (respectively) will lend you. People assume that the correct answer on this forum has to masquerade as conservat... |
Do I make money in the stock market from other people losing money? | There is one other factor that I haven't seen mentioned here. It's easy to assume that if you buy a stock, then someone else (another stock owner) must have sold it to you. This is not true however, because there are people called "market makers" whose basic job is to always be available to buy shares from those who ... |
Pay off credit card debt or earn employer 401(k) match? | Nope, take the match. I cannot see not taking the match unless you don't have enough money to cover the bills. Every situation is different of course, and if the option is to missing minimum payments or other bills in order to get the match, make your payments. But in all other circumstances, take the match. My reaso... |
What's a Letter of Credit? Are funds held in my bank for the amount in question? | A letter of credit is commonly used by importers who want to ensure that their product is shipped before paying the exporter. The exporter has a guarantee that the payment for the goods will be received once the shipment has been made. It is used to resolve a Game Theory type situation. For example, you are buying a c... |
Historic prices for currencies, commodities, | My guess it's a legal agreement between Yahoo and data provider on what data can be stored, displayed and for how long. Check out this list of data providers |
Deduct Health Care Premiums for Family When Employer Only Pays for Me | You can deduct what you pay for your own and your family's health insurance regardless of whether it is subsidized by your employer or not, as well as all other medical and dental expenses for your family, as an itemized deduction on Schedule A of Form 1040, but only to the extent that the total exceeds 7.5% of your ... |
What's the difference between “Index” and “Accumulation” tracker funds? | Whenever a website mentions Hypothetical Growth of $100, $1,000, or $10,000, it assumes that that investor himself will reinvest the dividend. This is true whether you look at Morningstar or Financial Times. Unless the website does not have dividend data, e.g. Google Finance. If you want to compare the account value ... |
Should I put more money down on one property and pay it off sooner or hold on to the cash? | My figuring (and I'm not an expert here, but I think this is basic math) is: Let's say you had a windfall of $1000 extra dollars today that you could either: a. Use to pay down your mortgage b. Put into some kind of equity mutual fund Maybe you have 20 years left on your mortgage. So your return on investment with cho... |
Is it better to buy put options or buy an inverse leveraged ETF? | You don't have to think it is going down, it is currently trending down as on a weekly chart there are lower lows and lower highs. Until there is a higher low with confirmation of a higher high, the downtrend will continue. The instrument you use to profit from a market drop depends on your risk profile, the time fram... |
Is it worth it to reconcile my checking/savings accounts every month? | While it's wise, easier and safer to check your transactions online a few times a month, I opt to receive and file paper statements as a hard copy back up of account history. Any reconciliation I perform is a quick glance to make sure the numbers sound right. It's probably a small waste of time and space, but it settle... |
Paying Off Principal of Home vs. Investing In Mutual Fund | Naturally the advice from JoeTaxpayer and dsimcha is correct, every situation is different. I will get reckless, go nuts and make a recommendation! You are young, childless for the time being. Do the following with your money: ALTERNATE IDEA for #6 Fix yourself up for the long term first, then have a bit of fun, then... |
Good book-keeping software? | I'm not directly affiliated with the company (I work for one of the add-on partners) but I can wholeheartedly recommend Xero for both personal and business finances. Their basis is to make accounting simple and clean, without sacrificing any of the power behind having the figures there in the first place. |
When should I start saving/investing for my retirement? | Start now. It's a lot easier to save now than it is to start to save later. |
Do stock prices really go down by the amount of the dividend? | Ex-Dividend Price Behavior of Common Stocks would be a study from the Federal Reserve Bank of Minneapolis and University of Minnesota if you want a source for some data. Abstract This study examines common stock prices around ex-dividend dates. Such price data usually contain a mixture of observations - some with and... |
Convention for adding ishares (ETFs) into personal accounts | What account you put it in depends on why you have those different accounts. First, if you have them due to regulatory requirements, then you of course must follow said regulations. I doubt that's the case here. Otherwise, you might be splitting based on how they trade (ETFs trade as stocks) or you could be splitting... |
Why not pay in full upfront for a car? | You need to do the maths exactly. The cost of buying a car in cash and using a loan is not the same. The dealership will often get paid a significant amount of money if you get a loan through them. On the other hand, they may have a hold over you if you need their loan (no cash, and the bank won't give you money). One... |
What gives non-dividend stocks value to purchasers? [duplicate] | A share of stock is a share of the underlying business. If one believes the underlying business will grow in value, then one would expect the stock price to increase commensurately. Participants in the stock market, in theory, assign value based on some combination of factors like capital assets, cash on hand, revenue,... |
Taxing GoFundMe Donations | I'm going to post this as an answer because it's from the GoFundMe website, but ultimately even they say to speak with a tax professional about it. Am I responsible for taxes? (US Only) While this is by no means a guarantee, donations on GoFundMe are simply considered to be "personal gifts" which are not, for the mo... |
Is there any US bank that does not charge for incoming wire transfers? | There are banks and credit unions that don't charge fee for incoming wire transfer. You most likely won't get that from big brick and mortar banks like BofA, Citi but if you are doing it regularly, using another bank that offers it free would save you a lot. Since ACH are free, you can transfer money between those bank... |
Which Benjamin Graham book should I read first: Security Analysis or Intelligent Investor? | I would start with The Intelligent Investor. It's more approachable than Security Analysis. I read the revised edition which includes post-chapter commentary and footnotes from Jason Zweig. I found the added perspective helpful since the original book is quite old. Warren Buffet has called Intelligent Investor "the b... |
When does it make sense for the money paid for equity to go to the corporation? | The check is written to BigCo. Jack is being diluted, corporation issues more shares. There's no gain, no change in Jack's equity value. Jack didn't lose or win anything. BigCo was worth $1M before the additional money, it is worth $1.25M after the additional money, with Jack owning the same $1M, but the cake is now bi... |
Do I need a Like-Kind Exchange when selling a personal vehicle for a company car | You cannot do a like-kind (Sec. 1031) exchange for personal property, only for business/investment property. Since you said that you traded in your personal car - no like-kind exchange is possible. Also, since the new car doesn't belong to you - you didn't actually perform any exchange. You sold your old car, but you d... |
Why have I never seen a stock split? | Are you sure you're not just looking at prices that are adjusted for the split, e.g. Yahoo? For example, Gilead Sciences (GILD) split a few months ago, but if you look at a price chart, there isn't an interruption even though the split is clearly marked. (Look in the past six months; it split in January). However, you ... |
Clarification on 529 fund | You are faced with a dilemma. If you use a 529 plan to fund your education, the short timeline of a few years will limit your returns that are tax free. Most people who use a 529 plan either purchase years of tuition via lump sum, when the child is young; or they put aside money on a regular basis that will grow tax d... |
Supply & Demand - How Price Changes, Buy Orders vs Sell Orders [duplicate] | Yes for every order there is a buyer and seller. But overall there are multiple buyers and multiple sellers. So every trade is at a different price and this price is agreed by both buyer and seller. Related question will help you understand this better. How do exchanges match limit orders? |
Buying a multi-family home to rent part and live in the rest | Others have already made good points, so I'll just add a few more: You say that if you bought it, your mortgage, insurance, and taxes minus the rental income from the bottom floor would leave you with costs of 1/4 of your current rent. That means you're getting a fantastic deal on the purchase price. I suspect you may ... |
Ways to invest my saved money in Germany in a halal way? | The UK has Islamic banks. I don't know whether Germany has the same or not (with a quick search I can find articles stating intentions to establish one, but not the results). Even if there's none in Germany, I assume that with some difficulty you could use banks elsewhere in the EU and even non-Euro-denominated. I can'... |
Is it OK to use a credit card on zero-interest to pay some other credit cards with higher-interest? | I am sure everyone is different, but it has helped me a great deal. I have had several card balances go up and the interest on those per month was more than $200 in just interest combined. I transferred the balances over to 0% for 15 months – with a fee, so the upfront cost was about $300. However, over the next 15 mo... |
Do I need to report to FInCEN if I had greater than $10,000 worth of bitcoin in a foreign bitcoin exchange? | Yes, I'd say you do. This is similar to reporting a brokerage account. Also, don't forget the requirements for form 8938. |
How much time should be spent on Penny Stocks Trading a day? | 1) Don't trade individual stocks. You expose yourself to unnecessary risk. 2) Pick a fund with low expenses that pays a dividend. Reinvest the dividend back into the fund. To quote Einstein: The greatest power on earth is compound interest. Something is wrong with the software of the site. It will not allow me to ans... |
How to take advantage of home appreciation | Even selling isn't riskless. Sure, your house has gained value-- but unless that's due to improvements you made to it, every other house in the neighborhood you might buy has gained value too, so moving might not result in extracting any net value. This is one of the reasons I keep reminding folks that a house is not a... |
How to reconcile these contradictory statements about the effect of volume on stock price? | These statements aren't necessarily contradictory. In the first case, investors are bearish because they anticipate selling in the future (because all the interested buyers have bought, so all that remains in the short run are people willing to sell and therefore drive down the price). In the second case, the trend is... |
Better to get loan from finance company or bank considering the drop of credit score? | If your primary concern is a drop in your credit score, go to a mortgage broker instead of multiple banks and finance companies. Each time you ask a bank or financial institution for a loan, they do a hard pull on your credit rating which costs you a couple of points. Visit a dozen lenders and you'll lose 24 points. Yo... |
Is interest on a personal loan tax deductible? | When you pay interest on a loan used to fund a legitimate investment or business activity, that interest becomes an expense that you can deduct against related income. For example, if you borrowed $10k to buy stocks, you could deduct the interest on that $10k loan from investment gains. In your case, you are borrowing... |
Where can you find dividends for Australian Stock Market Shares (ASX) for more than 2 years of data? | Yahoo provides dividend data from their Historical Prices section, and selecting Dividends Only, along with the dates you wish to return data for. Here is an example of BHP's dividends dating back to 1998. Further, you can download directly to *.csv format if you wish: http://real-chart.finance.yahoo.com/table.csv?s=BH... |
What is the tax treatment of scrip dividends in the UK? | The HMRC website would explain it better to you. There is a lot of factors and conditions involved, so refer to the HMRC website for clarification. If your question had more details, it could have been easy to pinpoint the exact answer. Do I declare the value of shares as income Why would you do that ? You haven't gene... |
Can one use dollar cost averaging to make money with something highly volatile? | if you know when and by how much something will fluctuate, you can always make money. Buy it when it's cheaper and sell it when it's more expensive. If you just know that it fluctuated a lot recently, then you don't know what it will do next. Most securities that go to zero or go much higher bounce all over the place f... |
What are my options for this high interest student loan? | There is no magic formula to this, quite simply: earn, cut expenses, and pay. It sounds like you can use a little bit of help in the earning area. While it sounds like you are career focused (which is great) what else can you do to earn? Can you start a low cost of entry side business? Examples would include tutor... |
Priced out of London property market. What are my accommodation investment options? | Be radical! (I assume you are not working for a city bank getting paid “city wages” – e.g. you are one of the 99% of people in London or more “normal” income.) House prices and rents in London and anywhere within reasonable commuting distances are now so high that couples in reasonable jobs often have to rent rooms in ... |
On what quantity the Dividend is given in India? | In India, the amount of dividend you get is based on the face value of the stock. If the stock's face value is Rs. 10 and the company announced a dividend of 20%, you will receive Rs.2 per share.To see whether you qualify to receive a dividend, see the ex-dividend date of the company. If you purchased shares before tha... |
Paying extra on a mortgage. How much can I save? [duplicate] | If you're truly ready to pay an extra $1000 every month, and are confident you'll likely always be able to, you should refinance to a 15 year mortgage. 15 year mortgages are typically sold at around a half a point lower interest rates, meaning that instead of your 4.375% APR, you'll get something like 3.875% APR. That... |
What does Chapter 11 Bankruptcy mean to an investor holding shares of a Chapter 11 Company? | I held shares in BIND Therapeutics, a small biotechnology company on the NASDAQ that was liquidated on the chapter 11 auction block in 2016. There were sufficient proceeds to pay the debts and return some cash to shareholders, with payments in 2016 and 2017. (Some payments have yet to occur.) The whole process is count... |
How much life insurance do I need? | One simple calculation to determine your life insurance need: D.I.M.E. method D: Debt All your car loan balances, credit card balances, student loans, business loans, etc. I: Income Your annual income times 10 (for 10 years of income replacement). M: Mortgage Your home mortgage balance. E: Education Your children's edu... |
GAAP for items that you both sell and make? | First, please allow me to recommend that you do not try gimmickry when financials do give expected results. It's a sure path to disaster and illegality. The best route is to first check if accounts are being properly booked. If they are then there is most likely a problem with the business. Anything out of bounds y... |
How to spend more? (AKA, how to avoid being a miser) | How much is your time worth This has been useful for me, judging things based on how much their time value is worth to me, weighted more heavily than their actual worth. For instance, there was a time when I used to work on the weekends and pay to have my laundry done. Doing the laundry myself would have cost 25 cents,... |
Should we invest some of our savings to protect against inflation? | Are there still people who keep significant amounts of money in a bank savings account? You could get ~1% by just choosing the right bank. ING Direct, for example, gives 0.8%, 4 times more than your credit union, with the same FDIC insurance! If you do want to invest in something slightly more long-term, you can get a ... |
FSA when a retirement agreement has been put into place | There's no reason for the employer not to deduct the whole amount before you leave. The FSA salary deduction has to be periodical, but it doesn't have to be calculated over a year. It just means that an equal amount will be deducted from your every paycheck, and if the employer (and you) know that your last paycheck is... |
Why don't market indexes use aggregate market capitalization? | would constantly fluctuate and provide an indication of how well the market is doing. The index is there to tell if you made profit or loss by investing in the market. Using a pure total market cap will only tell you "Did IPO activity exceed bankruptcy and privatization activity". |
401k vs. real estate for someone who is great at saving? | With an appropriate selection within a 401K and if operating expenses are low, you get tax deferred savings and possibly a lower tax bracket for now. The returns vary of course with market fluctuations but for almost 3 years it has been double digit growth on average. Some health care sector funds were up over 40% la... |
What is the Blue Line in these stock Charts? | My guess is that both the blue and pinkish lines are hand drawn by someone. The blue line indicates 'higher lows' while the pinkish line represents 'higher highs'. Together they form a trading channel in which you can expect future prices to be (unless there is some unanticipated event that occurs). Edit: since the pr... |
Why do UK banks require monthly “pay in” into current account? | From the banks point of view the point of a current account like this is to get you as a regular customer. They want to be your "main bank", the bank you interact with the most, the bank you turn to first when you need financial products and services, the bank whose advertising you see every time you log into online ba... |
Any advantage to exercising ISO's in company that is not yet public? | Exercising an option early if you can't sell the underlying stock being purchased is generally not advisable. You're basically locking in the worst price you can possibly pay, plus you're losing the time value on your money (which is, admittedly fairly low right now, but still). Let's say you have a strike price of $50... |
Might I need a credit score to rent, or for any other non-borrowing finances? | Alas, institutions do not always act rationally, and being an outlier by never having debt may be bad enough. Therein is your problem. The question, then, is do you want to do business with institutions that are not acting rationally? While I cannot specifically speak to Canadian business practices, I have to imagine t... |
Will getting a new credit card and closing another affect my credit? | Several events will always result in a reduction of your score, including: These will show up in the short term, but I don't think it's worth $40 per year in perpetuity to avoid this. These aren't serious "black marks" in the same category as missing payments, carrying too much debt, or foreclosures/evictions, etc. The... |
Why are there so many stock exchanges in the world? | Why are there so many stock exchanges in the world? The simple answer is that there is a lot of money to be made by charging fees to facilitate the trading of securities, but there are other factors at play here relating to new technologies. Trading volumes have increased rapidly in recent years. According to this IT... |
In a buy order with a trigger, will I pay the current ask or the buy price in the order? | I think that if the price does not go very far up, then your order will open on 101, because you are setting a limit order, if suddenly the price goes up very quickly or with a gep even, then you may not be given a position. But this is with a limit order and it is better to check with the broker. There are also warran... |
My university has tranfered me money by mistake, and wants me to transfer it back | Really a very straightforward situation, and subsequently, answer. Call the university pursors that you normally deal with, ask them to document the last 3 months of disbursements and highlight the incorrect one(s). If the money is already spent out, ask them if they can apply it to future disbursements via adjusting ... |
Including the region where you live in your investment portfolio? | The problem is aggregating information from so many sources, countries, and economies. You are probably more aware of local laws, local tax changes, local economic performance, etc, so it makes sense that you'd be more in tune with your own country. If your intent is to be fully diversified, then buy a total world fu... |
Can PayPal transfer money automatically from my bank account if I link it in PayPal? | I have a PayPal account that I have linked to my bank account. My PayPal balance is always $0. When I make a purchase with PayPal, PayPal will automatically withdraw the funds from my bank account to make the purchase. PayPal does not ask my permission for each purchase. I probably gave them permission to do this ... |
Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home? | Ripped off may be too strong as it implies intent - I'm hopeful it's just bad logic or terminology. I would say better agreements would be: Borrowing money from family/friends is always risky. If you and your parents are comfortable with the situation and can reliably keep records of how much is owed at any given ti... |
What one bit of financial advice do you wish you could've given yourself five years ago? | Now, if I wasn't concerned with the integrity of my already tainted soul I would have given myself the following advice five years ago: |
Could an ex-employee of a company find themself stranded with shares they cannot sell (and a tax bill)? | It would take an unusual situation. They exercise certain types of option, which come in as regular income rather than capital gains, and are holding the stock "long" (perhaps they are not allowed to sell because of an insider-trading freeze window; like right before earnings announcements). And then the stock tanks... |
Loan for car buy “cash” (third party) or bank loan | The car dealership doesn't care where you get the cash; they care about it becoming their money immediately and with no risk or complications. Any loan or other arrangements you make to raise the cash is Your Problem, not theirs, unless you arrange the loan through them. |
What could be the harm in sharing my American Express statements online? | American Express is great for this use case -- they have two user roles "Account Agent" and "Account Manager" which allow you to designate logins to review your account details or act on your behalf to pay bills or request service. This scheme is designed for exactly what you are doing and offers you more security and ... |
Re-financing/consolidating multiple student loans for medical school? | Actually, a few lenders now will offer a consolidation loan that will consolidate both Federal and private student loans. One example is Cedar Ed, http://cedaredlending.com/PrivateConsolidationLoan.htm |
Why can't house prices be out of tune with salaries | Your friends are overlooking a couple of problems with house prices and salaries being out of whack: Home 'equity' is a paper gain unless you realize it by selling the house. If you don't, but use the 'home ATM', all you're doing is piling up more debt that's secured on an asset that has downside risk. Ask anybody who'... |
Biggest stock price gain vs. biggest mkt cap gain | When you look at those results you'll see that it lists the actual market cap for the stocks. The ones on the biggest price move are usually close the the $1B capitalization cut-off that they use. (The don't report anything with less than $1B in capitalization on these lists.) The ones on the biggest market cap are m... |
Buying a house, how much should my down payment be? | How much should my down payment be? Ideally 20% of the purchase price because with 20% of the purchase price, you don't have to pay a costly private mortgage insurance (PMI). If you don't have 20% down and come across a good property to purchase, it is still a good idea to go forward with purchasing with what you are ... |
To pay off a student loan, should I save up a lump sum payoff payment or pay extra each month? | There are a few ways you can go about paying this off quickly (and safely): You could start paying $386 monthly (ie, double what you're paying now). You'll pay less interest in the long run because they can only charge you for the amount outstanding. Remember, 6.8% of $12k is more than 6.8% of $6k. However, your plan s... |
1099 Misc for taking care of foreign exchange students | In general, you are allowed to deduct up to $50/month per student (see page 4), but only if you aren't reimbursed. In your case, since you are receiving a stipend, the full $2000 will be treated as taxable income. But the question of "is it worth it" really depends on how much you will actually spend (and also what you... |
How does start-up equity end up paying off? | Read the book, "Slicing Pie: Fund Your Company Without Funds". You can be given 5% over four years and in four years, they hire someone and give him twice as much as you, for working a month and not sacrificing his salary at all. Over the four years, the idiot who offered you the deal will waste investors money on obv... |
Why are Rausch Coleman houses so cheap? Is it because they don't have gas? | I walked into my sister's new Rausch Coleman house this afternoon to help her move in and told her to make sure that they put on the hot water heater room door in the garage on when they come back to take care of the final touch ups. I also said and don't let them forget to paint the garage because I noticed while driv... |
Giving kids annual tax free gift of $28,000 | If the child is a dependent the question is moot. It is accepted that the parent will pay for some, most, or all of the tuition. There is no tax issue for a current student. The payment of tuition helps them qualify as a dependent. There is no need to transfer the money to the child's account; it can be sent directly t... |
Why certain currencies are considered safe havens in times of turmoil | It's a combination of neutrality, economic power, economic freedom, a history of stability, and tradition. In the case of the Japanese yen, it's obviously economic power that is the determining factor, as Japan is the world's third largest economy. Switzerland, on the other hand, is only the 19th largest economy, but r... |
I cosigned for a friend who is not paying the payment | The point of co-signing for a friend is that they're your friend. You signed for them in the belief that your friendship would ensure they didn't burn you. If your friend has hung you out to dry, basically they aren't your friend any more. Before you lawyer up, how's about talking to your friend as a friend? Sure he... |
Can zero-coupon bonds go down in price? | Let's say today you buy the bond issued by StateX at 18$. Let's say tommorow morning the TV says that StateX is going towards default (if it happens it won't give you back not even the 18$ you invested). You (and others that bought the same bond like you) will get scared and try to sell the bond, but a potential buyer ... |
Identifying “Dividend Stocks” | If you don't have a good knowledge of finance, maybe you should not put too much money in individual stocks. But if you really want to invest, you can just compare the rate of return of the most known stocks available to you (like the one from the S&P for the US). The rate of return is very simple to compute, it's 100*... |
Can you explain “time value of money” and “compound interest” and provide examples of each? | Time Value of Money - The simple calculation for this is FV = PV * (1+r)^N which reads The Future Value is equal to the Present Value times 1 plus the interest rate multiplied by itself by the number of periods that will pass. A simple way to look at this is that if interest rates were 5%/yr a dollar would be worth (1.... |
Cash-basis accounting and barter | If you don't track the accrued costs involved, then it means that the valuation of the deal will be somewhat arbitrary, but it still can be made by looking at the value of equivalent or similar goods or services. It's rather similar to accounting treatment of (noncash) gifts, for example. You make up a valuation, and a... |
How to calculate money needed for bills, by day | I think you might benefit from adopting a zero-sum budget, in which you plan where each dollar will be spent ahead of time, rather than simply track spending or worry about the next expense. Here's a pretty good article on the subject: How and Why to Use a Zero-Sum Budget. This is the philosophy behind a popular budget... |
What are my options to deal with Student Loan debt collectors? | You have not specified what country you are in. That radically changes everything. In case you are in Canada, there's a great blog that covers bankruptcy and student loans, at http://student-loan-bankruptcy.ca/. Fundamentally, in order to discharge government-backed student loans, you must have ceased to be a student f... |
40 year old A and J makes 1M a year. What is the best investment to save on tax? | There is nothing legal you can do in the United States to avoid the tax burden of income earned as an employee other than offsetting it with pre-tax contributions (which it sounds like you're already doing), making charitable contributions, or incurring investment losses (which is cutting off your nose to spite your fa... |
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 ... |
Most common types of financial scams an individual investor should beware of? | If some one ever offers High returns and low risk they are either extremely stupid or scamming you. If they did find a high return low risk investment a smart person would buy it then repackage it as a low return low risk investment and then sell it to you. People would still buy and they would make a ton. Either the... |
Starting with Stocks or Forex? | Stick with stocks, if you are not well versed in forex you will get fleeced or in over your head quickly. The leverage can be too much for the uninitiated. That said, do what you want, you can make money in forex, it's just more common for people to not do so well. In a related story, My friend (let's call him Mike ... |
Can I save our credit with a quickie divorce? | My advice to you? Act like responsible adults and owe up to your financial commitments. When you bought your house and took out a loan from the bank, you made an agreement to pay it back. If you breach this agreement, you deserve to have your credit score trashed. What do you think will happen to the $100K+ if you de... |
Is it a good investment for a foreigner to purchase a flat/apartment in China? | No, it's not. This could be a great question, but with no background, not so much. Do you live there now? For how long, and how much longer? You say investment, are you looking to live in it or rent it out? I have nothing against China, but I'd not buy anywhere unless the price, location, and timing all were right. |
Would investing equally in all 30 companies which comprise the DJIA net the same performance as the DJIA? | MD-Tech's answer is correct. Let me only point out that there are easier ways to invest in the DJIA index without having to buy individual stocks. You can buy a mutual fund or ETF that will track the index and your return will be almost identical to the performance of the underlying index. It's "almost" identical becau... |
What should I do with $4,000 cash and High Interest Debt? | The difference in interest is not a huge factor in your decision. It's about $2 per month. Personally I would go ahead and knock one out since it's one less to worry about. Then I would cancel the account and cut that card up so you are not tempted to use it again. To address the comments... Cutting up the card is ... |
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