Question stringlengths 14 166 | Answer stringlengths 3 17k |
|---|---|
Pay off entire mortgage or put into investments | I like this option, rather than exposing all 600k to market risk, I'd think of paying off the mortgage as a way to diversify my portfolio. Expose 400k to market risk, and get a guaranteed 3.75% return on that 200k (in essence). Then you can invest the money you were putting towards your mortgage each month. The potent... |
Lost credit card replaced with new card and new numbers. Credit score affected? | The true answer is it depends because it is up to the credit card issuer to follow the right path when issuing a replacement credit card. http://www.bankrate.com/finance/credit-cards/will-replacement-card-hurt-my-score.aspx Typically, issuers will transfer the account history to the new trade line, says Barry Paperno,... |
How to get information about historical stock option prices for a defunct company? | Though you're looking to repeat this review with multiple securities and events at different times, I've taken liberty in assuming you are not looking to conduct backtests with hundreds of events. I've answered below assuming it's an ad hoc review for a single event pertaining to one security. Had the event occurred m... |
Do I pay a zero % loan before another to clear both loans faster? | Keep in mind that by fully paying off one of your loans, you will reduce your minimum repayments. This will make you feel richer than you actually are. This will make you buy stuff that it seems like you can afford, probably putting some of it on credit. As you can't actually afford this, this will leave you, in a year... |
Possible Risks of Publicizing Personal Stock Portfolio | You would be facilitating identity theft. You would be risking people who disagree with your approach thinking you're foolish. Are you really going to gain enough from this decision to offset the risks? Can't you do the same thing with much less detail or a "fantasy" account? |
Work as a contractor for my current employer rather than become a full time employee after my graduation for health insurance continued coverage | There are several assumptions you made, that don't match the current laws: Costs: COBRA: |
What are the best software tools for personal finance? | For iPhone: iExpenseIt |
What happens to all of the options when they expire? | Options that are not worth exercising just expire. Options that are worth exercising are typically exercised automatically as they expire, resulting in a transfer of stock between the entity that issued the option and the entity that holds it. OCC options automatically exercise when they expire if the value of the opti... |
Would it make sense to buy a rental property as an LLC and not in my own name? | As far as the spam mail goes, I own a rental (in Connecticut) and live in Massachusetts, I get very little mail related to this property. I view this as a non-compelling reason. Your other reasons pick up quick in value. The protection from the rest of your assets is helpful, and the one con for most is the inability ... |
Is inflation a good or bad thing? Why do governments want some inflation? | Inflation is a bad thing. It makes it much more difficult for people to compare prices and prosperity over a long period of time. This causes people to ignore the wisdom of their elders (who remember prices from a long time ago). Back in my day, you could get a burger and fries for 15 cents -- a dime for the burger, ... |
Do I have to pay tax on money I earn as a tutor? | There is a moral and legal obligation to file the earnings. Not doing so is tax fraud. You should keep a ledger or some record of your earnings, helpful guidelines here. Records are required by the CRA: According to the law, your responsibilities include: (source) You could get in trouble if one of your pupils report t... |
Bonds vs equities: crash theory | I would suggest looking into Relative Strength Asset Allocation. This type of investment strategy keeps you invested in the best performing asset classes. As a result of investing in this manner it removes the guesswork and moves naturally (say into cash) when the stock market turns down. There is a good whitepaper on... |
How do I make a small investment in the stock market? What is the minimum investment required? | Many brokers offer a selection of ETFs with no transaction costs. TD Ameritrade and Schwab both have good offerings. Going this route will maximize diversification while minimizing friction. |
Mortgage interest income tax deduction during year with a principal residence change | Very simple. If it wasn't rented, it's deductible as a schedule A home mortgage interest. If it was rented, you go into Schedule E land, still a deduction along with any/every expense incurred. |
What is a good way to save money on car expenses? | It is almost always cheaper to do regular maintenance then to fix problems because you didn't change the oil or check the transmission fluid. |
What is the compound annual growth rate of the major markets? | Center for Research in Security Prices would be my suggestion for where to go for US stock price history. Major Asset Classes 1926 - 2011 - JVL Associates, LLC has a PDF with some of the classes you list from the data dating back as far as 1926. There is also the averages stated on a Bogleheads article that has some re... |
How should one structure a portfolio given the possibility that a Total Stock Market Index might decline and not recover for a long time? | Common financial advice is just that - it is common and general in nature and not specific for your financial needs, your goals and your risk tolerance. Regarding the possibility of a US market not going anywhere over a long period of time, well it is not a possibility, it has happened. See chart below: It took 13 yea... |
Why invest in IRA while a low-cost index fund is much simpler? | Lots of good answers. I'll try and improve by being more brief. For each option you will pay different taxes: Index Fund: Traditional IRA Roth IRA You can see that the Roth IRA is obviously better than investing in a taxable account. It may not be as obvious that the traditional IRA is better as well. The reason ... |
$200k in an IRA, unallocated. What's the safest investment? | if you don't intent to touch the money for 10 years or longer, then dumping 100% into a low-expense-ratio index fund seems like a perfectly reasonable thing to do. it is simple, low maintenance and fairly mindless. just remember to reinvest the dividends occasionally (e.g. every 6 months). however, if you are the kind... |
Working on a tax free island to make money? | From http://www.taxrates.cc/html/cayman-islands-tax-rates.html: There is no income tax, corporate tax, sales tax, capital gains tax, wealth tax, inheritance tax, property tax, gift tax or any other kind of direct taxation in Cayman Islands. Cayman Islands government receives the majority of its income from indirect... |
Conservative ways to save for retirement? | It has been hinted at in some other answers, but I want to say it explicitly: Volatility is not risk. Volatility is how much an investment goes up and down, risk is the chance that you will lose money. For example, stocks have relatively high volatility, but the risk that you will lose money over a 40 year period is vi... |
How and Should I Invest (As a college 18 year old with minimal living expenses)? | I'd suggest you keep putting money in your savings account and start investing after you land that first big job. As another answer mentioned, unless you're fortunate enough to have all of your tuition and living expenses paid for, an emergency fund is an invaluable tool for a college student. And the bigger the better... |
When can you use existing real estate as collateral to buy more? | You put 20% down and already owe the 80% or $80k, so you don't have the ability to borrow $100k or even $20k for that matter. As LittleAdv stated, the banks have really tightened their lending criteria. Borrowing out more than 80% carries a high premium if you can get it at all. In your example, you want the property ... |
How can I trade in U.S stock exchange living in India by choosing the broker in U.S? | i have been trading with dollarbird Trading firm for past 1 year there is absolutly no problem everything is fine you can google them to find anything about them.they have provided me with LASER trading platform which requires a bit of training as in to know the software but i can say one thing trading in US Equity mar... |
Shorting versus selling to hedge risk | The word 'hedge' emerges from early agriculture when farmers would ask the market for a minimum buy price for each crop they planted. They used this method to stop loss against any major losses. Investors today use this strategy when they are unsure of what the market will do. A perfect hedge reduces your risk to noth... |
I have a horrible 401k plan, with high expenses. Should I stay with it or move my money elsewhere? | 2%? I would put in just what it takes to share in the profit sharing, not a dime more. My S&P fund cost is .02% (edited, as it dropped to .02 since original post), 1/100 of the cost of most funds you list. Doesn't take too many years of this fee to negate the potential tax savings, and not many more to make this a real... |
Stock Trade Transaction Fee - at what point is it worth it | I'm going to assume that you want to be invested all the time and each trade consists in selling a security and buying another one (similar to your example). How much commissions you are willing to pay depends on several factors, but one way to think about it is as follows. You have a position in stock A and you want t... |
What's an Exchange-Traded Fund (ETF)? | Wikipedia has a fairly detailed explanation of ETFs. http://en.wikipedia.org/wiki/Exchange-traded_fund |
Apartment lease renewal - is this rate increase normal? | If it is true that for the same price, you could get a better place (or that for a lower price you could get an equivalent place), you should do some soul-searching to decide what monetary value you would place on the hassle of moving to such an alternative. You should then negotiate aggressively for a rent that is no... |
Are there index tracking funds that avoid the “buy high - sell low” problem? | In a cap-weighted fund, the fund itself isn't buying or selling at all (except to support redemptions or purchases of the fund). As the value of a stock in the index goes up, then its value in the fund goes up naturally. This is the advantage of a cap-weighted fund, that it doesn't have to trade (buy and sell), it just... |
What happens to personal data I disclose for joining an employee stock plan? | You aren't getting a straight answer because nobody knows why those regulations are the way they are. Everyone has to give this information to open the brokerage account or for any access to the US financial system whether it is with a bank account, or a brokerage account. Everyone also typically gives this information... |
Does the IRS give some help or leniency to first-time taxpayers? | It might not be leniency for first time payers, but they do have programs, some federal some local, that help the poor and elderly complete their tax forms. There are also programs that allow the poor to file electronically for free. For most people the first time they file their taxes they are using the EZ form. Which... |
Definition of “secular” in the context of markets? | Secular means a long term. A secular basis is something done on a long term basis while a secular trend is a long term trend. http://financial-dictionary.thefreedictionary.com/Secular |
What does it mean when my Money Market account lists both a dividend share and an APY? | The dividend is what represents your ownership in the CU. The APY is a calculated figure that will help you compare apples to apples the return of the investment from many vendors and many types. (I think you CU might have had two different people writing that portion of the website, because the comparisons pages don'... |
What's a good free checking account? | Check with a small local bank or credit union, they might offer better terms. That said, my local credit union still charges $6/month for a checking account if you don't have a direct deposit into it. |
Merits of buying apartment houses and renting them | I am not going to argue the merits of investing in real estate (I am a fan I think it is a great idea when done right). I will assume you have done your due diligence and your numbers are correct, so let's go through your questions point by point. What would be the type of taxes I should expect? NONE. You are a real ... |
Why does Yahoo Finance list the 10y T note (TNX) at 1/10 of CBOE and Google Finance? | The CBOE states, in an investor's guide to Interest Rate Options: The Options’ Underlying Values Underlying values for the option contracts are 10 times the underlying Treasury yields (rates)— 13-week T-bill yield (for IRX), 5-year T-note yield (for FVX), 10-year T-note yield (for TNX) and 30-year T-bond yiel... |
Do Banks Cause Inflation? What are other possible causes? | No, it isn't generally believed that inflation is caused by individual banks printing money. Governments manage money supply through Central Banks (which may, or may not, be independent of the state). There are a number of theories about money supply and inflation (from Monetarist, to Keynesian, and so on). The Quanti... |
How can this be enough to fund a scholarship in perpetuity? | The Trinity study looked at 'safe' withdrawal rates from retirement portfolios. They found it was safe to withdraw 4% of a portfolio consisting of stocks and bonds. I cannot immediately find exactly what specific investment allocations they used, but note that they found a portfolio consisting largely of stocks would a... |
Why do grocery stores in the U.S. offer cash back so eagerly? | It doesn't cost them anything, they don't pay commission on you taking cash-back. But it brings customers to the stores because these customers would rather buy something and use cash-back to get cash, than go to an ATM and pay the ATM commission. |
How do I refinance a car loan into someone else's name so it can be their car? | I don't know of any way to "transfer" a debt to another person without their consent or the lender's consent. You are responsible for the loan, and you need to either pay it or give up the asset that it's tied to (the car). At least you weren't just a cosigner with no title to the car - then you'd be in worse shape. ... |
Why does shorting a call option have potential for unlimited loss? | You are likely making an assumption that the "Short call" part of the article you refer to isn't making: that you own the underlying stock in the first place. Rather, selling short a call has two primary cases with considerably different risk profiles. When you short-sell (or "write") a call option on a stock, your pos... |
Question about Tax Information from a Prospectus | A mutual fund could make two different kinds of distributions to you: Capital gains: When the fund liquidates positions that it holds, it may realize a gain if it sells the assets for a greater price than the fund purchased them for. As an example, for an index fund, assets may get liquidated if the underlying index ch... |
If someone gives me cash legally, can my deposit trigger an audit for them? | Why would you even accept 75K in cash? If anything is going to trigger an audit, this will be it. 75K in cash deposited will look like money laundring, so you better have a paper trail ready to prove this is legal or this won't end well. |
Best way to invest money as a 22 year old? | Most important: Any gains you make from risking this sum of money over the next few years will not be life changing, but if you can't afford to lose it, then losses can be. Rhetorical question: How can you trust what I say you should do with your money? Answer: You can't. I'm happy to hear you're reading about the stoc... |
Car dealer saying that they cannot see any credit information for my co-applicant. Could this be a scam? | Its not a scam. The car dealership does not care how you pay for the car, just that you pay. If you come to them for a loan they will try and service you. If you come with cash, they will sell you a car and not try to talk you into financing. If you come with a check from another bank, they will happily accept it. ... |
Can someone help me understand my student loans? | First to actually answer the question "how long at these rates/payments?"- These is nothing magic or nefarious about what the bank is doing. They add accrued interest and take your payment off the new total. I'd make higher payments to the 8.75% debt until it's gone, $100/mo extra and be done. The first debt, if you ... |
Borrowing 100k and paying it to someone then declaring bankruptcy | This sounds like a crazy idea, but in reality people don't make the wisest decisions when considering bankruptcy in Australia. My suggestion would be to get some advice from an insolvency specialist. |
Looking for good investment vehicle for seasonal work and savings | There are no risk-free high-liquidity instruments that pay a significant amount of interest. There are some money-market accounts around that pay 1%-2%, but they often have minimum balance or transaction limits. Even if you could get 3%, on a $4K balance that would be $120 per year, or $10 per month. You can do muc... |
How is someone tax exempt at Walmart in Canada? | The short answer is you're tax exempt if the tax laws say you are. There are a bunch of specific exemptions based on who you are, what you're buying and why. Taking British Columbia as an example. One exemption is supplies for business use: Some exemptions are only available to certain purchasers in certain circumstan... |
Where do I find the exercise price and date for warrants? | I agree that a random page on the internet is not always a good source, but at the same time I will use Google or Yahoo Finance to look up US/EU equities, even though those sites are not authoritative and offer zero guarantees as to the accuracy of their data. In the same vein you could try a website devoted to warrant... |
I'm 18. How to build good monthly income at my 20's? | It looks like you need a lot more education on the subject. I suggest you pick up a book on investing and portfolio management to get a first idea. Dividend yields are currently way below 5% on blue chips. Unlike coupons from fixed income instruments (which, in the same risk category, pay a lot less), dividend yields a... |
Someone asks you to co-sign a loan. How to reject & say “no” nicely or politely? | Simple and straight-forward. "I'm sorry but I don't co-sign loans. I've heard horror stories (or had bad experiences if you actually have) about these things going bad and ruining friendships. Your friendship is more important to me than you getting this car/stereo/whatever." You could go on to explain that it's n... |
When do I sell a stock that I hold as a long-term position? | For what it's worth -- and I realize this isn't directly an answer to the question -- one of the advantages of sticking with mutual funds, beyond their being inherently diversified, is that it removes a lot of the temptation to try to time the market. When you need money, you sell shares in such a way that it maintains... |
Does “income” include capital gains? | For example, if I have an income of $100,000 from my job and I also realize a $350,000 in long-term capital gains from a stock sale, will I pay 20% on the $350K or 15%? You'll pay 20% assuming filing single and no major offsets to taxable income. Capital gains count towards your income for determining tax bracket. ... |
Recommendation on Options Back Testing tool please | Based on my experience with OpenQuant, which is a development platform for automated trading strategies (and therefore can be easily be used for backtesting your personal strategy), I can give a little insight into what you might look for in such a platform. OpenQuant is a coding environment, which reads data feeds fr... |
Diversify across multiple brokers? | You should ensure that your broker is a member of the Securities Investor Protection Corporation (SIPC). SIPC protects the cash and securities in your brokerage account much like the Federal Deposit Insurance Corporation (FDIC) protects bank deposits. Securities are protected with a limit of $500,000 USD. Cash is prote... |
What is the “Short sale circuit breaker rule”? | Summary: The phrase "short sale circuit breaker" rule normally refers to the SEC's recent adoption of a new version of the uptick rule. The new uptick rule triggers a ban on short selling when the stock drops a certain amount. The SEC defines the process like this: The "circuit breaker" is triggered for a security any ... |
Are large companies more profitable than small ones? | Small companies could have growth prospects. Large companies may not have that many. So look at ROE of companies by quatile to determine which companies have better growth. |
What should I do with the stock from my Employee Stock Purchase Plan? | I like C. Ross and MrChrister's advice to not be heavily weighted in one stock over the long run, especially the stock of your employer. I'll add this: One thing you really ought to find out – and this is where your tax advisor is likely able to help – is whether your company's stock options plan use qualified incenti... |
Should market based health insurance premiums be factored into 6 months emergency fund savings? | The guideline for the size of an emergency fund is just a guideline. I've usually heard it expressed as "3 to 6 months," but everyone has a different idea of exactly how big it should be. The purpose of the fund is to give you enough cash to be able to pay for unexpected expenses that have come up that you have not bu... |
How to fill the IRS Offer In Compromise with an underwater asset? | If you have both consumer debt and IRS debt, you can file Chapter 7 bankruptcy to get rid of all of it. The trick is your taxes have to be at least 3 years old from the due date in order to be considered for bankruptcy. So newer taxes, like 2010 and on, can't be discharged yet (and earlier ones may not be yet, there ar... |
Approximation of equity value for company in default | Generally "default" means that the company cannot pay off their debts, and since debt holders get paid before equity holders, their equity would be effectively worthless. That said, companies can emerge from Chapter 11 bankruptcy (reorganization) and retain equity value, but it is rare. Most times, stocks are de-listed... |
How to calculate the standard deviation of stock returns? | For implied volatility it is okey to use Black and scholes but what to do with the historical volatility which carry the effect of past prices as a predictor of future prices.And then precisely the conditional historical volatility.i suggest that you must go with the process like, for stock returns 1) first download s... |
Where do countries / national governments borrow money from? | The answers provided so far as good and informative, but I just thought I'd add one small point... There are super-national organisations that commonly lend to governments, in particular those in the developing the world. The World Bank and IMF (International Monetary Fund) are the two primary ones. Also quite notably,... |
How can I increase my hourly pay as a software developer? | Start by going to Salary.com and figuring out what the range is for your location (could be quite wide). Then also look at job postings in your area and see if any of them mention remuneration (gov't jobs tend to do this). If possible go and ask other people in your field what they think the expected range of salary ... |
Debt collector has wrong person and is contacting my employer | It's probably a scam or maybe some amateur agency trying to put pressure on their target. Normal garnishment goes through the court system. Just ignore it. Tell your employer they obviously have the wrong person since the SS is wrong. Suing clowns like this is not worth it. Just to clarify this some more for you: Tryi... |
What threshold to move from SEP to Solo401k? | I think this article explains it pretty well: Contributions to a SEP are limited to 20% of your business income (which is business income minus half of your self-employment tax), up to a maximum of $45,000. With a solo 401(k), on the other hand, you can contribute up to $15,500 plus 20% of your business ... |
The doctor didn't charge the health insurance in time, am I liable? | I work for a health billing company. It is completely the provider's responsibility to bill your health insurance in a timely manner if they have your health insurance information on file (it sounds like they did). If you can gather a copy of your EOB (Explanation of Benefits) from your health insurance, it will likely... |
Insurance company sent me huge check instead of pharmacy. Now what? | You mentioned depositing the check and then sending a personal check. Be sure to account for time, since any deposit over $10,000 the money will be made available in increments, so it may take 10-14 days to get the full amount in your account before you could send a personal check. I would not recommend this option reg... |
If I go to a seminar held overseas, may I claim my flights on my tax return? | You can deduct this if the main purpose of the trip is to attend the seminar. Travel expenses relating to the attendance at conferences, seminars and other work-related events are deductible to the extent that they relate to your income-producing activities. You will need to apportion your travel expenses where you un... |
Transfering funds from India to the US | Can I transfer funds from India to USA which I have borrowed in India. Funds borrowed in India may not be transferred outside of India as per Foreign Exchange Management Act. Loans in rupees to non-residents against security of shares or immovable property in India:- Subject to the directions issued by the Reserv... |
Where do expense ratios show up on my statement? | For Vanguard: Vanguard does compare its fees with similar funds from its competitors on this tab, but then again, this is Vanguard giving you this information, so take with a grain of salt. |
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 ... |
Calculating theoretical Present Value | The example from the following website: Investopedia - Calculating The Present And Future Value Of Annuities specifically the section 'Calculating the Present Value of an Annuity Due' shows how the calculation is made. Using their figures, if five payments of $1000 are made over five years and depreciation (inflation... |
Meaning of “credit” | You're looking at the "wrong" credit. Here's the Wikipedia article about the bookkeeping (vs the Finance, that you've quoted) term. |
When does Ontario's HST come into effect? | It looks like the HST will be in effect in Ontario on July 1st, 2010. As to whether it will replace GST with HST for all services, it looks like some sectors may get special treatment: Ontario may exempt mutual funds from HST (National Post). But it doesn't look final yet. However, I would suggest that most service-... |
What determines a tax resident in Florida | Plenty of retired people do stay in the US for longer than 60 days and don't pay taxes. In this IRS document 60 days stay appears to be the test for having a 'substantial presence' in the US, which is part of the test for determining residency. However the following is also written: Even if you meet the substantial pre... |
Where do countries / national governments borrow money from? | Sovereign states borrow money explicitly in a two primary ways: A sovereign cannot be compelled to repay debt, and there isn't a judicial process like bankruptcy to erase debt. When sovereigns default, they negotiate new terms with creditors and pay back some fraction of the actual debt owed. They can also print money... |
Is it possible to allocate pre-tax money to a specific stock? | Whether an investment is pre-tax is determined by the type of account (i.e., tax-advantaged vs ordinary taxable account), but whether you can invest in individual stocks is determined by the provider (i.e., the particular bank where you have the account). These are orthogonal choices. If you want to invest in individ... |
Anticipating being offered stock options in a privately held company upon employment. What questions should I ask? | The company doesn't necessarily have to go public. They can also be worth money if the company is acquired. Also keep in mind that even if the company does eventually go public, your shares can essentially be wiped out by a round of pre-IPO funding that gives the company a low valuation. You could ask: |
How to make money from a downward European market? | Trying to make money on something going down is inherently more complicated, risky and speculative than making money on it going up. Selling short allows for unlimited losses. Put options expire and have to be rebought if you want to keep playing that game. If you are that confident that the European market will com... |
Is it ever a good idea to close credit cards? | There is also security aspect. By reducing the number of active credit/debit cards, one significantly reduces the surface of attack. There is smaller chance of getting one of your card information stolen and misused (cf Target data leaks and others). |
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... |
Is candlestick charting an effective trading tool in timing the markets? | From what I have read from O'Neil to Van Tharp, etc, etc, no one can pick winners more than 75% of the time regardless of the system they use and most traders consider themselves successful if 60% of the trades are winners and 40% are losers. So I am on the side that the chart is only a reflection of the past and cann... |
Can I open a Demat account in India from abroad? | Yes NRIs are allowed to open a DEMAT account in India from abroad. Investments can be made under the Portfolio Investment NRI Scheme (PINS) either on repatriation or non-repatriation basis. As per,the guidelines of the Reserve Bank of India it is mandatory for NRIs to open a trading account with a designated institu... |
How can you possibly lose on investments in stocks? | Easiest thing ever. In fact, 99% of people are loosing money. If you perform worse then 10% annually in cash (average over 5-10 years), then you better never even think about trading/investing. Most people are sitting at 0%..-5% annually. They win some, loose some, and are being outrun by inflation and commissions. In ... |
How to calculate new price for bond if yield increases | The duration of a bond tells you the sensitivity of its price to its yield. There are various ways of defining it (see here for example), and it would have been preferable to have a more precise statement of the type of duration we should assume in answering this question. However, my best guess (given that the duratio... |
What should I do with the change in my change-jar? | Every now and then I fill a pocket with a handful of coins and spend it on a very small shop on my way home, i.e. a loaf of bread (£1.50), a pint of milk (50p) by using the self-check out (Tesco/Sainsbury's) which has a coin slot or even better the little bowl where you put coins down. I find this pretty straightforwar... |
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. |
Demurrage vs inflation | Yes, there's a difference. If you've borrowed $100, then under inflation your salary will (presumably) increase, and tomorrow your debt will only be worth $99. But under demurrage, you'll still owe $100. |
When buying a call option, is the financial stability of the option writer relevant? | Exchange traded options are issued in a way that there is no counter party risk. Consider, stocks and options are held in street name. So, for example, if I am short and you are long shares, no matter what happens on my end, your shares are yours. To be complete, it's possible to enter into a direct deal, where you h... |
How expensive is it to keep minimal cash at a brokerage? | You're trying to mitigate the risk of having your investments wiped out by fraud committed by your broker by using margin loans to buy stock secured by other, non-cash assets in your account. The solution that you are proposing does not make any sense at all. You mitigate a very low probability/high impact risk by doin... |
For very high-net worth individuals, does it make sense to not have insurance? | While a lot of the answers focus on cost to replace and how much money you should have for tangible goods. There are a few more issues to consider. However before we get started, these issues are not related to ones net worth. They are related to other factors. Having money certainly helps, but someone worth only $10 ... |
Debit card funds on preauthorization hold to paypal: can it be used for another transaction? | Imagine the following scenario: You have a credit limit of $1000 and you want to by a tablet from a store. It costs $600. You then walk next door and buy a TV for $600. You would expect that you would go over your limit and the second transaction will be rejected. As long as that hold is in place, you don't have access... |
Do Americans really use checks that often? | From a Canadian point of view, I think we are generally very similar to how you describe Austria. The only thing I use cash for, is to pay for my coffee at a local micro-roaster who only accepts cash. Cheques, I only use to pay friends. Everything else is debit or credit card. Very few businesses around here will e... |
Is it possible to eliminate PMI (Personal/Private Mortgage Insurance) on a mortgage before reaching 20% down on principal? | Banks are currently a lot less open to 'creative financing' than they were a few years ago, but you may still be able to take advantage of the tactic of splitting the loan into two parts, a smaller 'second mortgage' sometimes called a 'purchase money second' at a slightly higher interest rate for around 15-20% of the v... |
How can you possibly lose on investments in stocks? | Once you buy stocks on X day of the month, the chances of stocks never actually going above and beyond your point of value on the chart are close to none. How about Enron? GM? WorldCom? Lehman Brothers? Those are just a few of the many stocks that went to 0. Even stock in solvent companies have an "all-time high" th... |
Pay bill now or later? | If you've got the money to pay the bill today, do it. They are giving you a 25% discount if you do. You won't find an investment that will beat that. Let's look at the details of your scheme. Instead of paying $1696 today, you decide that you will pay $2261 over 60 months, or $37.68 per month. You also decide to inv... |
When to sell a stock? | Keep a diary, before buying write down why are you buying the stock, how long do you plan to keep it. Put down reasons when you would sell it. For example you buy a stock because it has lot of cash reserve, it is a focused company, good management. You would sell when management leaves or it starts to use its cash for ... |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.