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What is the difference between “good debt” vs. “bad debt”? | From what I've heard in the past, debt can be differentiated between secured debt and unsecured debt. Secured debt is a debt for which something stands good such as a mortgage on your house. You have a debt, but that debt is covered by the value of an asset and if you needed to free yourself of the debt, then you co... |
If I put a large down payment (over 50%) towards a car loan, can I reduce my interest rate and is it smart to even put that much down? | The real answer is to talk to the bank. In the case of the last car loan I got, the answer is "no". When I asked them about rates, they gave me a printed sheet that listed the loan rates they offered based on how old the car was, period. I forget the exact numbers but it was like: New car: 4%, 1 year old: 4.5%, 2-3 yea... |
Missing opportunity cost of mortgage prepayment | One other consideration is that by paying off your mortgage early versus, for example, investing that capital in a mutual fund is that you are reducing your net liquidity to some degree. That is, if you find yourself needing an emergency infusion of cash it is easier to sell a stock/fund than to sell your house or get ... |
If I believe a stock is going to fall, what options do I have to invest on this? | There are three ways to do this. So far the answers posted have only mentioned two. The three ways are: Selling short means that you borrow stock from your broker and sell it with the intent of buying it back later to repay the loan. As others have noted, this has unlimited potential losses and limited potential gain... |
Quantiative Easing fuels stock markets, but why? | There's a premium or discount for various stocks subject to influence by the alternatives available to investors, meaning investments are susceptible to the principle of supply and demand. This is easily seen when industries or business models get hot, and everybody wants a tech company, a social media company, or a so... |
Retirement savings vs building lucrative assets | Fahad, in finance we make a distinction between investments that tend to grow in value and assets that hold value. Investments that grow in value are generally related to investing in well-thought out businesses. Investments can be done in retirement accounts through stocks and bonds but also owning part of a busines... |
Does keeping 'long-term' safety net in bonds make sense? | The answer to your question depends very much on your definition of "long-term". Because let's make something clear: an investment horizon of three to six months is not long term. And you need to consider the length of time from when an "emergency" develops until you will need to tap into the money. Emergencies almost ... |
What is the standard deviation and mean return of oil? | Oil as a commodity or investing in oil companies as a stock? As a commodity, I'd recommend none. The article Commodities – They Have (Almost) No Place in Your Portfolio and The Case Against Commodities explain why commodities are not good investments. |
What is the difference between a bad/bounced check and insufficient funds? | Insufficient funds will cause a check to bounce. If there is evidence that you "kited" the check deliberately, that's a potential fraud charge. If the vendor accepts that you were just stupid/careless, you'll probably just have to pay a penalty processing fee in addition to making good the payment. It is your responsi... |
Can I add PMI to my principal balance when I take out a mortgage? | There are few different types of MI you can choose from, they are: Borrower-Paid Monthly (this is what most people think of when they think MI) Borrower-Paid Single Premium (you may have QM issues on this) Lender Paid Single Premium Split Up-front and Monthly The only way to determine which option will ultimately cost ... |
Why was my Credit Limit Increase Denied? | I think they gave you the answer: You haven't previously shown that you can run that particular card up to (near) its existing maximum and then pay it off, so they don't have a strong indication that you can handle that large an unsecured loan. Generally, requests to have the limits raised when there isn't evidence tha... |
Can we estimate the impact of a large buy order on the share price? | Orders large enough to buy down the current Bid and Ask Book are common. This is the essential strategy through which larger traders "Strip" the Bid or Ask in order to excite motion in a direction that is favorable to their interests. Smaller traders will often focus on low float/small cap tickers, as both conditions t... |
How do investment banks evaluate a private firm going public? Is it based on the assets owned by the company? | They're not going to look very hard at the asset value (except for actual cash in the bank), which doesn't bear much relationship to the real value of the company. More likely they will look at the last three years' earnings and choose a target P/E ratio based on that. The owner's share depends entirely on how much of ... |
Stocks and Bankruptcy | When they entered Bankruptcy they changed their stock symbol from AAMR to AAMRQ. The Q tells investors that the company i in Bankruptcy. This i what the SEC says about the Q: "Q" Added To Stock Ticker Symbol When a company is involved in bankruptcy proceedings, the letter "Q" is added to the end of the company's stoc... |
What are the advantages of a Swiss bank account? | For an American it nearly impossible to open a Swiss bank account. Even a Swiss person want to open a bank account, we have to fill out a document, which asks us if we have a greencard or other relationships with the united states. Some Swiss banks have transferred the money of Americans to Singapore to protect their c... |
What options do I have at 26 years old, with 1.2 million USD? | Wow, everyone tells you different investment strategies. You have all your life ahead of you. Your main focus should not be getting the best return rate, but ensuring your existence. Who cares if you get 7% if you'll lose all in the next market crash and stand on the street with no education, no job and nothing to fall... |
Where should I park my rainy-day / emergency fund? | Something with an FDIC guarentee, so a bank. With an emergency fund, I think the 'return of capital' is more important than the 'return on the capital', so I'm fine with putting it in a standard savings account in a local bank(not an internet account) even if it pays next to nothing. The beauty is that since the bank i... |
Should you always max out contributions to your 401k? | My observations is that this seems like hardly enough to kill inflation. Is he right? Or are there better ways to invest? The tax deferral part of the equation isn't what dominates regarding whether your 401k beats 30 years of inflation; it is the return on investment. If your 401k account tanks due to a prolonged m... |
“Correct” answer on Visa credit quiz doesn't make sense | I agree with you. The quiz was looking at it differently, as if you had a huge card balance and were making minimum payments. The fact that I run all my spending through my cards somehow looks like my card payments are 60-70% of my budget. But when you break it out, zero of that is interest, and it's just a budgeting ... |
How does a bank make money on an interest free secured loan? | Most 0% interest loans have quite high interest rates that are deferred. If you are late on a payment you are hit with all the deferred interest. They're banking on a percentage of customers missing a payment. Also, this is popular in furniture/car sales because it's a way to get people to buy who otherwise wouldn't, ... |
What should I consider when selecting a broker/advisor to manage my IRA? | This is not a direct answer to your question, but you might want to consider whether you want to have a financial planner at all. Would a large mutual fund company or brokerage serve your needs better than a bank? You are still quite young and so have been contributing to IRAs for only a few years. Also, the wording in... |
What scrutiny to expect if making large purchase with physical cash? [duplicate] | http://www.consumerismcommentary.com/buying-house-with-cash/ It looks like you can, but it's a bad idea because you lack protection of a receipt, there's no record of you actually giving the money over, and the money would need to be counted - bill by bill - which increases time and likelihood of error. In general, p... |
Should I cancel an existing credit card so I can open another that has rewards? | Cancelled cards don't fall off the system for a long time, up to ten years. Card terms change, with notice of course, but it can happen at any time. I had a card with a crazy perk, 5% back in Apple Gift cards. This was pre-iPod days, but it was great to get a new computer every two years for free. But it was short liv... |
How does high frequency trading work if money isn't available for 2-3 days after selling? | As previously answered, the solution is margin. It works like this: You deposit e.g. 1'000 USD at your trading company. They give you a margin of e.g. 1:100, so you are allowed to trade with 100'000 USD. Let's say you buy 5'000 pieces of a stock at $20 USD (fully using your 100'000 limit), and the price changes to $20... |
Advantage of credit union or local community bank over larger nationwide banks such as BOA, Chase, etc.? | Fees mostly. BOA, for example, just announced $5/month for for all debit cards. Chase has foreign transaction fees, mostly hidden. BOA once famously raised interest rates on credit card holders to 28%, legally. Also, some people do not like patronizing a bank with CEOs that bankrupt the company and then get multi-mi... |
How can a person with really bad credit history rent decent housing? | Having been recently evicted she is unlikely to find any one willing to rent to her at anything close to reasonable terms. Any landlord that would consider it is likely to require a huge deposit. Her best solution may be a hotel/motel with weekly/monthly rates. It is generally much easier to get someone out of a hote... |
Is equity research from large banks reliable? | If by "can we trust the analyst recommendations" you mean "are they right 100% of the time" the answer is absolutely no. Analysts are human and make mistakes, some more than others. There are many stories of "superstar managers" that make killings for several straight years, then have a few bad years and lose it all ... |
How much percent of my salary should I use to invest in company stock? | I would not hold any company stock for the company that provides your income. This is a too many eggs in one basket kind of problem. With a discounted stock purchase plan, I would buy the shares at a 10% discount and immediately resell for a profit. If the company prevents you from immediately reselling, I don't k... |
Should I use a credit repair agency? | Don't use a "credit repair" agency. They are scams. One of the myriad of ways in which they work is by setting you up with a bogus loan, which they will dutifully report you as paying on time. They'll pretend to be a used car dealer or some other credit-based merchant. For a time, this will actually work. This is calle... |
Is 0% credit card utilization worse than 1-20% credit card utilization for any reason other than pure statistics? | Having no utilization makes you an outlier, it's an unusual circumstance for most people, and the scoring model cannot make any predictions based on it. If you think of it from the underwriter's perspective, zero utilization could mean all sorts of things... are you dead? indigent? unable to work? When you buying a pr... |
Simple and safe way to manage a lot of cash | If this money is intended to be used for retirement and depending on how old "older" is, it sounds a little risky to be putting too much money in a stock based mutual fund. While the CDs may seem like crappy investments right now, it is important to down-shift risk as you get closer to retirement because this person w... |
Market percentage growth per timeframe | What you are looking for is an indicator called the "Rate of Change (Price)". It provides a rolling % change in the price over the period you have chosen. Below is an example showing a price chart over the last 6 months with a 100 day Rate of Change indicator below the price chart. |
Any good software for value investment? | As @littleadv and @DumbCoder point out in their comments above, Bloomberg Terminal is expensive for individual investors. If you are looking for a free solution I would recommend Yahoo and Google Finance. On the other side, if you need more financial metrics regarding historic statements and consensus estimates, you s... |
Is there a bank account that allows ACH deposits but not ACH withdrawals? | Yes, kinda. Talk to local banks about a business account, and tell them you want to enable certain employees to make deposits but not withdrawals. They don't need to know you're all the same person. For instance I have a PayPal account for business. These allow you to create "sub accounts" for your employees with... |
First Job, should I save or invest? | Save enough to build an emergency cushion of 4-6 months total expenses. After that, invest everything you can in areas where you are well researched and have carefully formed your own opinion on the subject. Those who save do not reach financial freedom, those who learn to invest and make their money work for them do. ... |
What does the settlement date of short interest mean? | At the bottom of the page you linked to, NASDAQ provides a link to this page on nasdaqtrader.com, which states Each FINRA member firm is required to report its “total” short interest positions in all customer and proprietary accounts in NASDAQ-listed securities twice a month. These reports are used to calculate short i... |
Buying shares in a company after you quit | Insider trading is when you buy or sell an investment based on material, non-public information that gives you an unfair advantage over the rest of traders in that market. Working for a company is one way that you might have such information, but whether it is insider trading is not contingent on you working there. Yo... |
Which U.S. online discount broker is the best value for money? | I've never used them myself, but Scottrade might be something for you to look at. They do $7 internet trades, but also offer $27 broker assisted trades (that's for stocks, in both cases). Plus, they have brick-and-morter storefronts all over the US for that extra "I gotta have a human touch". :-) Also, they do have af... |
Optimal way to use a credit card to build better credit? | Or here's a better idea: don't have a credit card at all. They offer no real benefits and plenty of dangers. Don't take my word for it, though: "I tell every student class I get, high school students, university students, you know, they'd be better off if they never used credit cards" - Warren Buffet (Net worth... |
How to calculate the price of a bond based with a yield to Maturity, term and annual interest? | The answer to almost all questions of this type is to draw a diagram. This will show you in graphical fashion the timing of all payments out and payments received. Then, if all these payments are brought to the same date and set equal to each other (using the desired rate of return), the equation to be solved is gene... |
What are the top “market conditions” to follow? | The best advice I've heard regarding market conditions is: Buy into fear, and sell into greed. That is, get in when everyone is a bear and predicting economic collapse. Start selling when you hear stock picks at parties and family functions. That said. You are better off in the long term not letting emotion (of you or... |
(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-... |
Why are estimated taxes due “early” for the 2nd and 3rd quarters only? | nan |
Why do stores and manufacturers use mail in rebates? A scam, or is there a way to use them effectively? | It's an effective way to achieve market segmentation without having to ask your customers how rich they are, and you get the benefit of finding out additional information like their address, email etc. The principle is similar to coupons on cereal boxes, anybody can get the rebate/discount if they go to the effort, but... |
Why is the dominant investing advice for individuals to use mutual funds, exchanged traded funds (ETFs), etc | I agree with the other answers, but I want to give a slightly different perspective. I believe that a lot of people are smart enough to beat the market, but that it takes a lot more dedication, patience, and self-control than they think. Before Warren Buffett buys a stock, he has read the quarterly reports for years, h... |
How you make decision on a stock purchase after fundamental analysis? | The degrees to which a positive is positive and a negative is negative are up to you. There is no correct answer. A couple points of caution: |
Deducting business expenses paid for by gift card | To quote the answer you linked to: Perhaps the simplest way to think about this is you can only deduct an expense that you actually incur. In other words, the expense should show up on a bank or CC statement. So, if your business purchased the $1000 gift card for $800, you should see a $800 charge appearing on a busine... |
Connection between gambling and trading on stock/options/Forex markets | There are moral distinctions that can be drawn between gambling and investing in stocks. First and I think most important, in gambling you are trying to get money for nothing. You put $100 down on the roulette wheel and you hope to get $200 back. In investing you are not trying to get something for nothing. You are buy... |
Disputing Items to Improve Credit Report | Disputing the remark seems unlikely to move your score, since it is just that -- a remark. It's hard to say whether the scoring models can/do read the remarks and incorporate them (somehow) into the scoring metric itself. Disputing the revolving account that should be reported as closed is a different matter. The que... |
Why is the dominant investing advice for individuals to use mutual funds, exchanged traded funds (ETFs), etc | Cost. If an investor wanted to diversify his portfolio by investing in the companies that make up the S&P 500, the per-share and commission costs to individually place trades for each and every one of those companies would be prohibitive. I can buy one share of an exchange-traded fund that tracks the S&P 500 for less ... |
“Convertible -debt/note/bond/debentures” which of these are the same or different? | They all basically mean the same thing - a type of debt than can be exchanged for (converted into) equity at some point. It's only the mechanics that can be different. A convertible bond is structured just like a regular bond - it (usually) pays periodic interest and has a face value that's due at maturity. The differe... |
Why does Charles Schwab have a Mandatory Settlement Period after selling stocks? | TLDR: Why can't banks give me my money? We don't have your money. Who has my money? About half a dozen different people all over the world. And we need to coordinate with them and their banks to get you your money. I love how everyone seems to think that the securities industry has super powers. Believe me, even with... |
Who determines, and how, the composition of the S&P 500 index? | S & P's site has a methodology link that contains the following which may be of use: Market Capitalization. Unadjusted market capitalization of US$ 4.6 billion or more for the S&P 500, US$ 1.2 billion to US$ 5.1 billion for the S&P MidCap 400, and US$ 350 million to US$ 1.6 billion for the S&P SmallCap 600. The... |
Investing in dividend-yielding stocks with money borrowed from margin account? | I wouldn't recommend leveraged dividend fishing. Dividend stocks with such high dividends are highly volatile, you will run out of collateral to cover your trades very quickly |
Where can I buy stocks if I only want to invest a little bit at a time, and not really be involved in trading? | I don't want to get involved in trading chasing immediate profit That is the best part. There is an answer in the other question, where a guy only invested in small amounts and had a big sum by the time he retired. There is good logic in the answer. If you put in lump sum in a single stroke you will get at a single pr... |
Why would a company sell debt in order to buy back shares and/or pay dividends? | My answer is not specific, or even maybe applicable, to Microsoft. Companies don't want to cut dividends. So they have a fixed expense, but the cashflow that funds it might be quite lumpy, or cyclical, depending on the industry. Another, more general, issue is that taking on debt to retire shares is a capital allocatio... |
Offer Price for my stock not shown on quote and a subsequent sale higher than my offer | Many exchanges trade the same securities. An order may be posted to a secondary exchange, but if the National Best Bid and Offer data provider malfunctions, only those with data feeds from that exchange will see it. Only the data provider for the primary exchange where a stock is listed provides the NBBO. Missing orde... |
How do I calculate the dwelling coverage I need from the information I have? | You can't compare the different quotes unless they have the same numbers to work with. The big companies should use similar models to come up with values for the contents. In many cases they will assume some standard values for things like appliances. Yes you have a stove, but unless it is commercial grade they won't c... |
Is there any way to pay online in a country with no international banking system | According to Paypal, they support transactions in Ethiopia: https://www.paypal.com/webapps/mpp/country-worldwide https://developer.paypal.com/docs/classic/api/country_codes/ However those appear to be limited to transferring money out of the country. (link) There is an article here (link) which talks about how to tra... |
Should I have more than one brokerage account? | I believe the answer here is no: SIPC protection of customers with multiple accounts is determined by "separate capacity." Each separate capacity is protected up to $500,000 for securities and cash (including a $250,000 limit for cash only). Accounts held in the same capacity are combined for purposes of the SIPC prote... |
First time investor and online brokerage accounts | Most mutual funds are designed to make the investment banks that sell them money, not to make investers money. They do this by taking significant fees out. Because they make lots of money on these funds, they advertise them a lot, and give them important-sounding names, like "Advanced technology global diversity long t... |
Why don't SPY, SPX, and the e-mini s&p 500 track perfectly with each other? | What you should compare is SPX, SPY NAV, and ES fair value. Like others have said is SPX is the index that others attempt to track. SPY tracks it, but it can get a tiny bit out of line as explained here by @Brick . That's why they publish NAV or net asset value. It's what the price should be. For SPY this will be ... |
What is a checking account and how does it work? | As others have noted, in the U.S. a checking account gives you the ability to write a check, while a savings account does not. I think you know what a check is even if you don't use them, right? Let me know if you need an explanation. Personally, I rarely write paper checks any more. I have an account for a small side ... |
When a stock price goes down, does the money just disappears into thin air? | In short, thanks to the answers and comments posted so far. No actual money is magically disappeared when the stock price goes down but the value is lost. The value changes of a stock is similar to the value changes of a house. The following is the long answer I came up with based on the previous answers and comments ... |
Is there any downside to using temporary credit card numbers with subscription services? | You're knowingly providing a payment method which has insufficient funds to meet the terms of the contract, because you are too lazy to comply with the contract. That's unethical and fraudulent behavior. Will you get in trouble? I don't know. I'd suggest getting acquainted with an electronic calendar that can remind yo... |
Can a entrepreneur hire a self-employed business owner? | Yes. I can by all means start my own company and name myself CEO. If Bill Gates wanted to hire me, I'll take the offer and still be CEO of my own company. Now, whether or not my company makes money and survives is another question. This is the basis of self-employed individuals who contract out their services. |
Monthly money transfers from US to Puerto Rico | Puerto Rico: Last I checked, the Puerto Rico banking system wasn't materially different than working within the US - though some Continental US banks exclude US Territories like Guam and Puerto Rico or charge more when dealing with them. I'm not certain as to why. However, most banks don't see them any differently than... |
How can I investigate historical effect of Rebalancing on Return and Standard Deviation? | Doesn't "no rebalancing" mean "start with a portfolio and let it fly?" Seems like incorporation of rebalancing is more sophisticated than not. Just "buy" your portfolio at the start and see where it ends up with no buying/selling, as compared with where it ends up if you do rebalance. Or is it not that simple? |
Where to borrow money between college graduation and employment? | You have a few options, none of which are trade off free: Apply for a credit card, and live off of that. Here, of course, you will go into debt, and there are minimums to pay. But, it will tide you over. In any case, you are getting unsecured credit, so your rates will probably be very, very high. You don't want t... |
Should I open a credit card when I turn 18 just to start a credit score? | Definitely not. Credit cards only exist to suck you into the soulless corporate system. What you want to remember here is that you can't trust banks, so you'll want to convert all your savings into some durable asset, say, bitcoins for example, and then hoard them like Smaug until after the Fall. |
How to convince someone they're too risk averse or conservative with investments? | Let the man be. If you've tried again and again to convince him, and haven't, maybe he doesn't want to be convinced. It's his money, and he has every right to manage it as he sees fit. You can advise him, but its his call whether he accepts your advice or not, and for what reasons. And suppose you push and push and it ... |
CD interest rate US vs abroad, is there a catch? | I think your approach of looking exclusively at USD deposits is a prudent one. Here are my responses to your questions. 1) It is highly unlikely that a USD deposit abroad be converted to local currency upon withdrawal. The reason for offering a deposit in a particular currency in the first place is that the bank wants ... |
Should I include retirement funds in calculating my asset allocation? | I separate them out, simply because they're for different purposes, with different goals and time-frames, and combining them may mask hidden problems in either the retirement account or the regular account. Consider an example: A young investor has been working on their retirement planning for a few years now, and has ... |
Do I need multiple credit monitoring services? | Good question given what happened with Equifax You could avoid paying extra to Experian for monitoring all three, if you are getting free monitoring from Equifax(Only if Experian charges less for monitoring their own vs monitoring all three). If you do cancel monitor all three then the only one you would not be monito... |
Can I claim a tax deduction for working from home as an employee? I work there 90% of the time | 90% sounds like "principal place of business" but check these IRS resources to make sure. |
Common Stock Options Value | Par value SHOULD mean that they are offering you the options with a strike price (exercise price) that is equivalent to the current valuation of the company. Note I said SHOULD. As long as you can confirm with HR (or if you're small enough, just ask the CEO) that your grant price is the same as the current valuation o... |
Small investing for spending money? | The existing answers are good, I justed wanted to provide a simpler answer to your question: Would I be able to invest this in a reasonable way that it would provide me with say $200 spending money per month over the school year? No. There is no way to invest $10,000 to reliably get $200 every month. Any way that you ... |
Does wash sale apply if I buy stock on 2 two different dates and sell it later | Is wash rule applicable for this? No - because you made a gain on the sale. You paid $13,500 for the stock and sold it for $14,250. The wash rule prevents you from claiming a loss if you buy the same stock again within 30 days. You have no loss to claim, so the rule does not apply. |
What emergencies could justify a highly liquid emergency fund? | What sort of emergency requires payment up front for which 2-3 days processing of a stock sale would pose a problem? In my case, the sudden and unexpected death of my wife. Back in 2011, my wife was struck and killed in a traffic incident. I had to immediately (not in 2 - 3 days) cover 50% of the entire costs of the fu... |
Are binary options really part of trading? | you bet that a quote/currency/stock market/anything will rise or fall within a period of time. ... So, what is the relationship with trading ? I see no trading at all since I don't buy or sell quotes. So, if you just wander in and say "oh, hey, look, a bunch of options, i'm going to play games and have excitement" then... |
How can I determine if my rate of return is “good” for the market I am in? | A good way to measure the performance of your investments is over the long term. 25-30% returns are easy to get! It's not going to be 25-30% in a single year, though. You shouldn't expect more than about 4% real (inflation-adjusted) return per year, on average, over the long term, unless you have reason to believe that... |
Can a company charge you for services never requested or received? | I have had a couple of businesses do this to me. I simply ask them to come over to talk about the bill. Sometimes this ends it. If they come over then I call the cops to file a report on fraud. A lot of times the police will do nothing unless they have had a load of complaints but it certainly gets the company off ... |
When are equal-weighted index funds / ETFs preferable to market-cap-weighted funds? | Equal weighted indexes are not theoretically meant to be less volatile or less risky; they're just a different way to weigh stocks in an index. If you had a problem that hurt small caps more than large caps, an equal weighted index will be hurt more than a market-cap weighted one. On the other hand, if you consider th... |
Can I use my long position stocks as margin for my short sold stocks? | 200% margin for a short sale is outrageous. You should only need to put up 150% margin, of which 50% is your money, and the 100% is the proceeds. With $100 of your money, you should be able to buy $100 of GOOG and short $100 of PNQI. |
What should my finances look like at 18? | To buy a house, you need: At least 2 years tax returns (shows a steady income history; even if you're making 50k right now, you probably weren't when you were 16, and you might not be when you're 20; as they say, easy come, easy go). A 20% down payment. These days, that easily means writing a $50k check. You make $50... |
How will I pay for college? | Firstly, good on you for thinking about it before you commit to it. Next. Chelonian provides lots of detail. Read that answer. Consider the cost of going. Use your local community college. Use a state school. Get a job as an intern or another entry level position, with an employer that will reimburse you for educa... |
Why does the share price tend to fall if a company's profits decrease, yet remain positive? | It has got to do with market perceptions and expectation and the perceived future prospects of the company. Usually the expectation of a company's results are already priced into the share price, so if the results deviate from these expectations, the share price can move up or down respectfully. For example, many times... |
Would I qualify for a USDA loan? | How realistic is it that I will be able to get a home within the 250,000 range in the next year or so? Very unlikely in the next year. The debt/income ratio isn't good enough, and your credit score needs to show at least a year of regular payments without late or default issues before you can start asking for mortgag... |
Tenant wants to pay rent with EFT | What you've described is the norm in Australia, where it's rare for anyone under sixty to use cheques. Assuming they're transferring the funds using internet banking, I would have the following suggestions: You make it clear that the the funds must reach your account by the due date for rent. It is their (the tenant's)... |
What are the best software tools for personal finance? | I like You Need A Budget (YNAB) Pros: Cons: |
Why are interest rates on saving accounts so low in USA and Europe? | Typically developing economics are marked by moderate to high inflation [as they are growing at a faster pace], higher in savings rate and higher lending rates. If you reduce the lending rate, more business / start-up will borrow at cheaper rate, this in turn means lowers savings rate and leads to higher inflation. To ... |
What home improvements are tax deductible? | In general, for a home you live in, there's maintenance, which is just that, you pay to keep your house in good repair. There's also real improvements. I spend $xxx to turn my poured cement basement into living space. Here, I keep my receipts and the cost (although not my labor) is added to the basis of my home when I... |
Source of income: from dividends vs sale of principal or security | The trend in ETFs is total return: where the ETF automatically reinvests dividends. This philosophy is undoubtedly influenced by that trend. The rich and retired receive nearly all income from interest, dividends, and capital gains; therefore, one who receives income exclusively from dividends and capital gains must f... |
Why do some symbols not have an Options chain for specific expiration dates? | The answer is actually very simple: the cost of data. Seriously. Call the CBOE tomorrow and ask yourself. They have two big programs: 1) the penny pilot program, where options trade at penny increments instead of 5 cent increments. This is only extended to a select few symbols because of the amount of data this can ge... |
Should I invest in the world's strongest currency instead of my home currency? | A currency that is strong right now is one that is expensive for you to buy. The perfect one would be a currency that is weak now but will get stronger; the worst currency is one that is strong today and gets weak. If a currency stays unchanged it doesn't matter whether it is weak or strong today as long as it doesn't ... |
Does longterm investment in index funds still make sense in a reality of massive algotrading? | There is a difference between trading which is short term focussed and investing which is longterm focussed. On the long term what drives stock prices is still the overall economy and the performance of the underlying business aspects. I do not think that any trading algorithms will change this. These are more concerne... |
How to take advantage of home appreciation | There are basically two ways to get value out of an appreciating asset such as a home: (a) Sell it and take the profit. In the case of a home, you presumably still have to live somewhere, so unless you buy a cheaper home to replace it, this doesn't get you anywhere. If you can get another house that is just as nice and... |
How to divide a mortgage and living area fairly? | I suggest that you first decide on what %'s of the home value you each have a legal claim to. Then split the mortgage using the same %'s. Then, if someone feels their % is slightly higher, they are compensated because they 'own' a correspondingly higher share of the house. Use the same %'s for downpayments (which may m... |
What are the advantages/disadvantages of a self-directed IRA? | There is nothing wrong with self directed IRA's the problem is that most of the assets they specialize in are better done in other ways. Real estate is already extremely tax advantaged in the US. Buying inside a Traditional IRA would turn longterm capital gains (currently 15%) into ordinary income taxed at your tax rat... |
Why are there many small banks and more banks in the U.S.? | Wikipedia has a good summary: Historically, branch banking in the United States - especially interstate branch banking - was viewed unfavorably by regulatory authorities, and this was codified with the enactment of the McFadden Act of 1927, which specifically prohibited interstate banking. Over the next few decades, so... |
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