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Is candlestick charting an effective trading tool in timing the markets? | Your questions In the world of technical analysis, is candlestick charting an effective trading tool in timing the markets? It depends on how you define effective. But as a standalone and systematic strategy, it tends not to be profitable. See for example Market Timing with Candlestick Technical Analysis: Using robust ... |
Why ADP does not accurately withhold state and federal income tax (even if W4 is correct)? | I see several interesting statement in your question. A. my only income is from my Employer B. I also receive employer stock (ESPP, RSU, NSO). However, employer withholds taxes for these stock transactions through my broker (I see them broken down on my W2). C. I have been subject to Alternative Minimum Tax. A implie... |
US sanctions against foreign citizens | US Sanctions are usually very nuanced and you should look them up yourself. It may be widely reported that "US sanctions X-country" and it may be widely understood that it means all funds from anybody in that country are blocked, that USUALLY isn't the case (or "many times" isn't the case, I'm not going to bother quan... |
Consolidate my debt? Higher APR, but what does that actually mean? | No. It means each month the total amount you owe goes up by a factor of (1+0.298/12). So if you owed $23K at the beginning of the month, at the end you owe a total of 23K*1.0248=$23,571. Then subtract the $804 you are paying. If you want to think of it in terms of interest and principal, you are paying $571 a month... |
Do dark pools have to declare the volume transacted at the end of the day? | Members of the Federal Reserve System keep track of what money a bank has (if it's not in the vault), who owns what shares of stock, who owns what bond, etc. The part of the Federal Reserve System that tracks stock ownership is the Depository Trust Company (DTC). They have a group of subsidiaries that settle various ty... |
1040 Schedule A Un-Reimbursed Business Expense Reporting | It would be unusual but it is possible that the expenses could be very high compared to your income. The IRS in pub 529 explains the deduction. You can deduct only unreimbursed employee expenses that are: Paid or incurred during your tax year, For carrying on your trade or business of being an employee, and Ordinary an... |
What does “profits to the shareholders jumped to 15 cents a share” mean? | It means that the company earned 15 cents per share in the most recently reported quarter. Share price may or not be affected, depending on how buyers and sellers value the company. Just because profits "jumped," does not mean the shares will follow suit. An increase in profits may have already been priced into the sto... |
What is a negotiable security and how are they related to derivatives? | The price for securities is negotiable. You totally have a right to make a lower offer when buying or ask for a higher price when selling. Securities don't trade at a fixed price, the price goes up and down throughout the day based on the price offers made by buyers and sellers and where they find agreement. If a s... |
What headaches will I have switching from Quicken to GnuCash? | It's been a long time since I've used MS Money and/or Quickbooks (never Quicken), but I've used GnuCash over the past year or so. It works, but it does suffer from some usability problems. Some of the UI is clunky. Data entry sequences are a little harder than they should be. Reports could be a little prettier. But ove... |
Personal loan to a friend procedure | If this isn't a case where you would be willing to forgive the debt if they can't pay, it's a business transaction, not a friend transaction. Establish exactly what the interest rate will be, what the term of the loan is, whether periodic payments are required, how much is covered by those payments vs. being due at the... |
When should I open a “Line of credit” at my bank? | The only really good reason to open a line of credit is that you want to buy something that you don't have money for. That's got its own risks - see plenty of other places to see warnings about not borrowing too much. The only other reason is that you might want to use a line of credit as your emergency fund. The usual... |
Do I have to repay the First-Time Homebuyers tax credit if I refinance? | No. As long as you live in the house for 3 years, it's yours to keep. Financing has nothing to do with that. |
Is debt almost always the cause of crashes and recessions? | While debt increases the likelihood and magnitude of a crash, speculation, excess supply and other market factors can result in crashes without requiring excessive debt. A popular counter example of crashes due to speculation is 16th century Dutch Tulip Mania. The dot com bubble is a more recent example of a speculati... |
Possible replacement for Quicken | Given your needs, GNUcash will do swimmingly. I've used it for the past 3 years and while it's a gradual learning process, it's been able to resolve most stuff I've thrown at it. Schedule bills and deposits in the calendar view so I can keep an eye on cash flow. GNUcash has scheduled payments and receipts and reconcil... |
Can my employer limit my maximum 401k contribution amount (below the IRS limit)? | Congratulations on your raise! Is my employer allowed to impose their own limit on my contributions that's different from the IRS limit? No. Is it something they can limit at will, or are they required to allow me to contribute up to the IRS limit? The employer cannot limit you, you can contribute up to the IRS lim... |
Ideal investments for a recent college grad with very high risk tolerance? | I am in a very similar situation as you (software engineer, high disposable income). Maximize your contributions to all tax-advantaged accounts first. From those accounts you can choose to invest in high risk funds. At your age and date-target funds will invest in riskier investments on your behalf; and they'll do it w... |
Where to categorize crypto-currencies | Forex. I will employ my skill for "suspension of disbelief" and answer with no visceral reaction to Bitcoin itself. The Euro is not an 'investment.' It's a currency. People trade currencies in order to capture relative movements between pairs of currencies. Unlike stocks, that have an underlying business and potential ... |
Rental Property - have someone look for you | Actually sounds like an interesting concept for a business, potentially! (grin) You know, depending on where you live and how big the market is, you might see if there's a local "concierge" service. These are companies that will act like personal shoppers/assistants for you in all kinds of ways. I can't speak to the ... |
What is the difference between Protected-equity loan vs Equity loan? | In simple terms : Equity Loan is money borrowed from the bank to buy assets which can be houses , shares etc Protected equity loan is commonly used in shares where you have a portfolio of shares and you set the minimum value the portfolio can fall to . Anything less than there may result in a sell off of the share to p... |
Why and why would/wouldn't a company split their stock? | The reason to do a stock split is to get the price of the stock down to an affordable range. If your stock costs $100,000 per share, you are seriously cutting in to the number of people who can afford to buy it. I can think of two reasons NOT to do a stock split. The biggest is, Why bother? If your stock is trading at ... |
devastated with our retirement money that we have left | I'll be blunt. |
Idea for getting rich using computers to track stocks | There are many ways to trade. Rules based trading is practiced by professionals. You can indeed create a rule set to make buy and sell decisions based on the price action of your chosen security. I will direct you to a good website to further your study: I have found that systemtradersuccess.com is a well written blog,... |
Malaysian real estate: How to know if the market is overheated or in a bubble? | I think the only sure way to know if there is a bubble is to wait till it bursts and buy then. If it would be easy to tell there wouldn't be any bubbles. |
Is 401k as good as it sounds given the way it is taxed? | Be sure to consider the difference between Roth 401K and standard 401K. The Roth 401K is taxed as income then put into your account. So the money you put into the Roth 401K is taxed as income for the current year, however, any interest you accumulate over the years is not taxed when you withdraw the money. So to break... |
What's an Exchange-Traded Fund (ETF)? | ETFs offer the flexibility of stocks while retaining many of the benefits of mutual funds. Since an ETF is an actual fund, it has the diversification of its potentially many underlying securities. You can find ETFs with stocks at various market caps and style categories. You can have bond or mixed ETFs. You can even ge... |
How much money should I lock up in my savings account? | Edited answer, given that I didn't address the emergency fund aspect originally: None. You've said you don't feel comfortable locking it away where you wouldn't be able to get to it in an emergency. If you don't like locking it away, the answer to "How much money should I lock up in my savings account?" is none. On a m... |
Can two companies own stock in each other? | Yes, this happens a lot. And in many cases companies don't even know this is happening. Collateralized Debt Obligations frequently contain pieces of the same financial products, where it is not obvious what the underlying asset is. It gets complicated to explain, but I can make an analogy to a portfolio of stocks you m... |
(Legitimate & respectable) strategies to generate “passive income” on the Internet? | One such place where you can sell your photos is iStockPhoto. They are pretty picky about the photos they allow, so you should be a pretty good photographer and have good equipment. It can take a while to build up an interest in your photos, but once you do you can make some decent money off it. My sister is a semi-... |
How can the ROE on a stock be more than 100%? | A company's Return on Equity (ROE) is its net income divided by its shareholder's equity. The shareholder's equity is the difference between total assets and total liabilities, and is not dependent on the stock price. What it takes to have a ROE over 100% is to have the income be greater than the equity. This might h... |
Why some things are traded in an exchange while others are traded OTC | All securities must be registered with the SEC. Securities are defined as (1) The term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certi... |
Economics of buy-to-let (investment) flats | but the flat would be occupied all the time. Famous last words. Are you prepared to have a tenant move in, and stop paying rent? In the US, it can take 6 months to get a tenant out of the apartment and little chance of collecting back rent. I don't know how your laws work, but here, they do not favor the landlord. The... |
200K 10-Year Investment Safest 5% Annual Return? | I don't think there exists a guaranteed 5% investment vehicle. You have to decide how much risk you're willing to take. Splitting your $200k between CD's and stocks (or whatever higher yield investment vehicle you've found) is a way to get a higher rate without risking it all. For example if you've got a CD at 3%, and ... |
Is the “Bank on Yourself” a legitimate investment strategy, or a scam? | Technically, this doesn't seem like a scam, but I don't think the system is beneficial. They use a lot of half-truths to convince you that their product is right for you. Some of the arguments presented and my thoughts. Don't buy term and invest the rest because you can't predict how much you'll earn from the "rest" ... |
Why the volume disparity between NUGT and DUST? | NUGT and DUST both track GDX with triple leverage, but in opposite directions. GDX has been rising steadily throughout 2016, and certainly since over the last month. DUST experiences much higher volume when GDX is in a downward trend, as it was from 2013-2016. I think you'll see the same thing with DRIP and GUSH when o... |
Does this plan make any sense for early 20s investments? | The plan doesn't make sense. Don't invest your money. Just keep it in your bank account. $5000 is not a lot, especially since you don't have a steady income stream. You only have $1000 to your name, you can't afford to gamble $4000. You will need it for things like food, books, rent, student loans, traveling, etc. If ... |
Is keeping track of your money and having a budget the same thing? | What you are doing is neither one. You are simply watching to make sure you don't overdraw, which itself suggests you might be living hand to mouth and not saving. Keeping track of your money and budgeting are useful tools which help people get on top of their money. Which tends to have the effect of allowing you to... |
Why do US retirement funds typically have way more US assets than international assets? | You need growth in your retirement fund. Sad to say but the broad U.S. marks still has better growth perspective than the emerging markets. Look at China they are only at 6.7% growth for next year the same as this year. Russia's economy is shrinking. These are the other two super powers of 2015. The USA is still the b... |
If something is coming into my account will it be debit or credit in my account? | The bank "credit's" your account for money coming into it. In double entry accounting, you always have a debit and a credit to balance the accounts. As an Example: for $500 that the bank credited to your checking account, you would post a debit to Cash and a Credit to Income Earned. The accounting equation is: Assets =... |
How long does a bank's “Know Your Customer” (KYC) process typically take? | The idea is to positively identify you with properly issued government ID. If you show up with your passport, visa, and another form of government-issued identification which the banker can recognize and use (for example - international driver's license, a US-State driver's license, EU internal ID, etc) - it will be qu... |
Should I change 401k investment options to prepare for rising interest rates? | I see that you're invested in a couple bond funds. You do not want to be invested in bonds when the Fed raises rates. When rates climb, the value of bond investments decline, and vice-versa. So that means you should sell bonds before a rate hike, and buy them before a rate drop. |
Questioning my Realtor | My realtor told me that even though they're only asking for 1/2 the money and have excellent credit that the mortgage company may not lend it to them if I'm over priced. Is this true? I've never heard of it before. It is a chance, but it is a red herring to the discussion. Having excellent credit has nothing to do... |
Leasing a car I intend to buy | I have a colleague who always leases cars first. He's very well off, has piles of money in savings, owns a home, and the cherry on top, he could just write a check for the car.... He sees the lease as an insurance policy on the first couple of years of the car's life. If it gets in an accident or he finds something... |
$200k in an IRA, unallocated. What's the safest investment? | Define "risk-sensitive": The point is, define Your risk, and your choices will narrow. Some investors worry more about what next months statement will show & lose sleep over it; some investors do not want to miss the average historical rates of return for equities (stocks) and are willing to tolerate fluctuations in mo... |
What is the purpose of property tax? | Governments only have a few ways to get income: tax income, tax consumption, tax property (cars & boats), tax real estate, or tax services (hotel & meals). The National, state, county, city, and town taxing authorities determine what is taxed and what the rate will be to get enough money to run their share of the gover... |
What's the difference, if any, between stock appreciation and compound interest? | If you mean, If I invest, say, $1000 in a stock that is growing at 5% per year, versus investing $1000 in an account that pays compound interest of 5% per year, how does the amount I have after 5 years compare? Then the answer is, They would be exactly the same. As Kent Anderson says, "compound interest" simply means ... |
Transfer car loan for better interest rate | Yes, it is possible for you to refinance your existing auto loan, and so long as you can get the loan on more favorable terms (e.g.: lower interest rate), it is absolutely a smart thing to do. In fact, you would be well advised to do so as soon as possible if the car was a new car, if you refinance a NEW car soon enoug... |
Diversify or keep current stock to increase capital gains | The biggest challenge with owning any individual stock is price fluctuation, which is called risk. The scenarios you describe assume that the stock behaves exactly as you predict (price/portfolio doubles) and you need to consider risk. One way to measure risk in a stock or in a portfolio is Sharpe Ratio (risk adjusted ... |
How are long-term/short-term capital gains tax calculated on restricted stock? | Fidelity has a good explanation of Restricted Stock Awards: For grants that pay in actual shares, the employee’s tax holding period begins at the time of vesting, and the employee’s tax basis is equal to the amount paid for the stock plus the amount included as ordinary compensation income. Upon a later sale of the sha... |
Why not pay in full upfront for a car? | There many car loans at zero percent interest. Finance the car at zero percent, then take your money and invest it. If you want to be super safe buy a CD the same length as the car loan. 5 years you will get 2%. If you still want safety and a better return take up a asset allocation strategy that moves your cash to ... |
Option Trading / Demo Account | How would this trade behave IRL? I don't know how the simulation handles limit orders and bid/ask spreads to know it's feasible, but buying at 4.04 when the current ask is 8.00 seems unlikely. That would mean that all other sell orders between 8.00 and 4.04 were fulfilled, which means that there were very few sellers ... |
Calculate a weekly payment on a loan when payment is a month away | Using the standard loan formula with 21% APR nominal, compounded weekly. Calculate an adjusted loan start value by adding 31 - 7 = 24 extra days of daily interest (by converting the nominal compounded weekly rate to a daily rate). For details see Converting between compounding frequencies Applying the standard formula ... |
Stock options value | What you will probably get is an option to buy, for £10,000, £10,000 worth of stock. If the stock price on the day your option is granted is £2.50, then that's 4,000 shares. Companies rarely grant discounted options, as there are tax disincentives. The benefit of the stock option is that when you exercise it, you still... |
If I have AD&D through my employer, should I STILL purchase term life insurance? | It probably does make sense for you to buy term life insurance separate from your employer, for a few reasons: There are a number of life insurance calculators on the web. Try two or three -- some of them ask different questions and can give you a range of answers regarding how much coverage you should have. Then take ... |
Mutual Fund with Dividends | There are two independent sets of terms we need to define in order to answer your question. I am trying to understand the difference between Value, Blend, and Growth These are different categories of mutual funds: Value: discounted or undervalued stocks. This is often measured by a difference between the stock's price... |
What does ES1 refer to in this picture? | That looks very much like an S&P 500 E-Mini index future. However, ES1 is a strange symbol. Futures have the month of expiry encoded in their symbol as well: http://commodities.about.com/od/understandingthebasics/ss/futurescontract_3.htm For example, the September 2011 future in this series would be ESU1. I'm not ve... |
Comparison between buying a stock and selling a naked put | Why do all this work yourself? Pay a modest price to have a professional do this for you. Look at the tickers PUTX, PUTW. |
Is it a good practice to keep salary account and savings account separate? | Well the idea of 'good practice' is subjective so obviously there won't be an objectively correct answer. I suspect that whatever article you read was making this recommendation as a budgeting tool to physically isolate your reserve of cash from your spending account(s) as a means to keep spending in check. This is a c... |
What exactly is a “derivative”? | A derivative in finance is simply any asset whose value is based on the value of another asset or based on the value of a group of assets. A derivative contract is a type of contract (usually a 'standardized contract') with specific payout instruction based on the price changes of a different asset. The basic idea is t... |
What is the best way to short the San Francisco real estate market? | You could short home builders who do a lot of their business in Northern California. (Not just San Francisco, Silicon Valley, or even the Bay Area.) Home prices in Sacramento and the northern San Joaquin Valley are correlated with Bay Area home prices. Many of these builders went broke during the last bust, so you mi... |
Mitigate Effects Of Credit With Tangible Money | Genius answer: Don't spend more than you make. Pay off your outstanding debts. Put plenty away towards savings so that you don't need to rely on credit more than necessary. Guaranteed to work every time. Answer more tailored to your question: What you're asking for is not realistic, practical, logical, or reasonable. ... |
What does it mean to be a “high fee” or “low fee” 401k? | Every 401(k) has managers to make the stock choices. They all have different rates. You want to see that fidelity or Vangard is handling your 401(k).(and I am sure others) If you have a mega bank managing your funds or an insurance company odds are you are paying way to high management fees. So find out, the manag... |
Is Bogleheadism (index fund investing) dead? | Dogma always disappoints. The notion that an index fund is the end-all, be-all for investing because the expense ratios are low is a flawed one. I don't concern myself with cost as an independent factor -- I look for the best value. Bogle's dogma lines up with his business, so you need to factor that in as well. Vend... |
UK companies house - what can I glean from an abbreviated balance sheet? | What this abbreviated balance sheet tells you is that this company has negative equity. The liabilities are greater than the value of the assets. The obvious problem for the company who wants to do business with you is that they are going to have a real hard time accessing credit to pay off any debts that they incur ... |
Calculate Future Value with Recurring Deposits | Let's break this into two parts, the future value of the initial deposit, and the future value of the payments: D(1 + i)n For the future value of the payments A((1+i)n-1) / i) Adding those two formulas together will give you the amount of money that should be in your account at the end. Remember to make the appropriat... |
What options do I have at 26 years old, with 1.2 million USD? | Since you mentioned moving, you can buy real state very cheap here in Mexico that will give you income monthly. I will tell you some numbers in case you're interested. Now to investments: you can buy houses for rent, and prices are as follows: Average house $25k which will give about $220 monthly of income. Let's say y... |
Estimated Taxes Fall Short of tax liability — how do I pay extra online (Federal and NYS) | If you qualify for the safe harbor, you are not required to pay additional quarterly taxes. Of course, you're still welcome to do so if you're sure you'll owe them; however, you will not be penalized. If your income is over $150k (joint) or $75k (single), your safe harbor is: Estimated tax safe harbor for higher incom... |
Should we buy a house, or wait? | Advantages of buying: With every mortgage payment you build equity, while with rent, once you sign the check the money is gone. Eventually you will own the house and can live there for free. You can redecorate or remodel to your own liking, rather than being stuck with what the landlord decides is attractive, cost-effe... |
Why is gold not a good investment? | I think what the person meant to say is that Gold is not a one stop solution. There's nothing wrong with having Gold in an otherwise diversified portfolio but you need to be aware about the potential downsides: The problem with gold is that its value nowadays depends mainly on investor confidence, or the lack of it (ac... |
What is a trust? What are the different types of trusts? | A trust is a financial arrangement to put aside money over a period of time (typically years), for a specific purpose to benefit someone. Two purposes of trusts are 1) providing for retirement and 2) providing for a child or minor. There are three parties to a trust: 1) A grantor, the person who establishes and funds a... |
The U.S. National Debt: What is it, where did it come from, and how does it work? | It is measured in US dollars. The US cannot just print the money because that would cause inflation. Remember that money is really just a convenient placeholder for the barter system. Creating more money regardless of whether there is more value in the economy (work, resources, etc.) is a very bad idea, and doing so... |
Which U.S. online discount broker is the best value for money? | If you have at least $25,000, Wells Fargo is the place to be, as you get 100 free trades per account. I have three investment accounts with them and get 100 free trades in each a year, though I only ever actually use 10-20. i can't vouch for their phone service as I've never needed it, but free is very hard to beat in ... |
Taking a car loan vs cash and effect on credit score | Imagine that your normal mode of using credit gets you a score of X. As time goes by your score trends upward if the positive items (length of credit) outweigh your negative items. But there are no big increases or decrease in your score. Then you make a one time change to how you use credit. If this is a event that he... |
How can a U.S. citizen open a bank account in Europe? | Tackling your last point, all banks in the EU should be covered to around €100,000. The exact figure varies slightly between countries, and generally only private deposits are covered. In the UK it's the FSCS that covers private deposits, to a value of £85,000, see this for more information on what's covered. In France... |
If a stock doesn't pay dividends, then why is the stock worth anything? | This is an excellent question, one that I've pondered before as well. Here's how I've reconciled it in my mind. Why should we agree that a stock is worth anything? After all, if I purchase a share of said company, I own some small percentage of all of its assets, like land, capital equipment, accounts receivable, cash ... |
Is housing provided by a university as employer reported on 1040? | To answer your question directly, this is a taxable benefit that they are providing for you in lieu of higher wages. It is taxable to the employee as income and through payroll taxes. It is taxable to the employer for their half of the payroll taxes. |
Should I participate in a 401k if there is no company match? | With a match, the 401(k) becomes the priority, up to that match, often ahead of other high interest debt. Without the match, the analysis is more about the cost within the 401(k). The 401(k) is a tax deferred account (let's not go on a tangent to Roth 401(k)) so ideally, you'd be skimming off money at 25% and saving i... |
At what age should I start or stop saving money? | You've never saved money? Have you ever bought anything? There probably was a small window of time that you had to pool some cash to buy something. In my experience, if you make it more interesting by 'allocating money for specific purposes' you'll have better results than just arbitrarily saving for a rainy day. ... |
Pay cash for a home, get a reverse mortgage, and buy stock | I think you're missing a couple of things. First - why do you think its a reverse mortgage? More likely than not its a regular mortgage - home equity loan. If so, if they expect the stock market to rise significantly more than the amount of interest they pay on the loan - then its a totally sensible course of action. S... |
How would I go about selling the stock of a privately held company? | SecondMarket attempts to add liquidity to privately held companies. You may be able to find a buyer there, but this is still incredibly illiquid due to accredited investor regulations constricting businesses from catering to the 99%. As around 1% of the United States population qualifies as an accredited investor. |
Should we park our money in our escrow account? | You should talk to a financial fiduciary (make sure they are a fiduciary, not all planners are) about investing your money. Even ultra safe investments such as treasury bonds will beat the 1% interest rate offered by your savings account (the yield on the 5 year treasury is currently around 2%). |
Is 401k as good as it sounds given the way it is taxed? | Your analysis is not comparing apples to apples which is why it looks like investing money in a non-qualified account is better than a 401k (traditional or Roth). For the non-qual you are using post tax dollars (money that has already been taxed). Now on top of that original tax you are also going to pay capital gains... |
What are the marks of poor investment advice? | (1) I think the phrase "Variable Annuity" is a glowing red flag. A corollary to that is that any strategy that uses insurance for a purpose (e.g. tax avoidance) other than protecting against loss rates at least a yellow flag. (2) The other really obvious indicator is a return that is completely out of whack with the le... |
What happens if I just don't pay my student loans? | Never forget that student lenders and their collection agencies are dangerous and clever predators, and you, the student borrower, are their legal prey. They look at you and think, "food." My friend said she never pays her student loans and nothing has happened. She's wrong. Something has happened. She just doesn't kn... |
When to hire an investment professional? | Don't invest in regular mutual funds. They are a rip-off. And, most investment professionals will not do much to help your financial future. Here's the advice: |
How secure is my 403(b)? Can its assets be “raided”? | The simple answer is that with the defined contribution plan: 401k, 403b, 457 and the US government TSP; the employer doesn't hold on to the funds. When they take your money from your paycheck there is a period of a few days or at the most a few weeks before they must turn the money over to the trustee running the prog... |
Do I need to pay Income Tax if i am running a escrow service in India | This may be closed as not quite PF, but really "startup" as it's a business question. In general, you should talk to a professional if you have this type of question, specifics like this regarding your tax code. I would expect that as a business, you will use a proper paper trail to show that money, say 1000 units of ... |
What is a good 5-year plan for a college student with $15k in the bank? | I disagree with the IRA suggestion. Why IRA? You're a student, so probably won't get much tax benefits, so why locking the money for 40 years? You can do the same investments through any broker account as in IRA, but be able to cash out in need. 5 years is long enough term to put in a mutual fund or ETF and expect reas... |
Large volume options sell | It depends upon who the counterparty is. If the counterparty is the OCC, they would most likely call force majeure if their finances were at serious risk. They could be forced to take a loss but not to be pulled apart. Villain could always try to take the OCC to court, but then his plot would probably be exposed in d... |
Is it wise to invest in a stock with a large Div yield? | IMO, what it seems like you've done is nothing more than having screened out a company worth further investigation. The next step would be a thorough analysis of the company's past financials and current statements to arrive at your own opinion / forecast of the immediate and far future of the company's prospects. Typ... |
Personal credit card for business expenses | If you are just starting out, I would say there is no disadvantage to using a personal card for business expenses. In fact, the advantage of doing so is that the consumer protections are better on personal cards than on business cards. One possible advantage to business credit cards, is that many (but not all) will no... |
Is a “total stock market” index fund diverse enough alone? | Good idea to stay only with VTI if you are 30. For 50, I recommend: 65% VTI 15% VOO 10% VXUS 10% BND |
Is paying off your mortage a #1 personal finance priority? | It is one thing to take the advice of some numb-skulls on a web site, it is another thing to take the advice of someone who is really wealthy. For myself, I enjoy a very low interest rate (less than 3%) and am aggressively paying down my mortgage. One night I was contemplating slowing that down, and even the possibili... |
How to account for money earned and spent prior to establishing business bank accounts? | Funds earned and spent before opening a dedicated business account should be classified according to their origination. For example, if your business received income, where did that money go? If you took the money personally, it would be considered either a 'distribution' or a 'loan' to you. It is up to you which of ... |
One of my stocks dropped 40% in 2 days, how should I mentally approach this? | I haven't seen anyone mention tax considerations and that's why I'm answering this. The rest of my answer is probably covered in the aggregate of other responses. Here's how I would look at this in a taxable (not an IRA) account: This could be an opportunity to harvest the tax losses to offset taxable gains this year o... |
How does the process of “assignment” work for in-the-money Options? | First, it depends on your broker. Full service firms will tear you a new one, discount brokers may charge ~nothing. You'll have to check with your broker on assignment fees. Theoretically, this is the case of the opposite of my answer in this question: Are underlying assets supposed to be sold/bought immediately afte... |
Why would you ever turn down a raise in salary? | In Australia there are cases for the argument. 1) We have laws against unfair dismissal that do not apply above certain thresholds. Your position is more secure with the lower salary. 2) Tax benefits for families are unfairly structured such that take home pay may actually be less, again due to a threshold. This tends ... |
How can a 529 plan help me save for my child's college education? | If you're ready to start a 529 account, it makes a big difference which state you choose (some states have excessive fees). It doesn't have to be your own state, but some states give you tax incentives to stay in-state. What you need to do is check out Clark Howard's 529 Guide and check to see if your state is in the... |
Indie Software Developers - How do I handle taxes? | The "hire a pro" is quite correct, if you are truly making this kind of money. That said, I believe in a certain amount of self-education so you don't follow a pro's advice blindly. First, I wrote an article that discussed Marginal Tax Rates, and it's worth understanding. It simply means that as your income rises past ... |
Why did I lose 2 cents more than the difference in the stock prices on my Robinhood trade? | There is a misunderstanding somewhere that your question didn't illuminate. You should have lost $0.04 as you say. Assuming the prices are correct the missing $0.02 aren't covered by a reasonable interpretations of the Robinhood fees schedule. For US-listed stocks: $0 plus SEC fees: 0.00221% of principal ($22.10 per $1... |
Why do stocks tend to trade at high volumes at the end of (or start) the trading day? | The shift to trading at the close began in 2008. Traders did not want to be caught off guard by surprise news and there was a lot of volatility during the financial crisis, so they would close their position in the evening. Thats how it began. There are two reasons why it sticks around. First, there has been an increas... |
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