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How do dividends of the underlying security in a security futures contract affect the security futures price? | The owner of a long futures contract does not receive dividends, hence this is a disadvantage compared to owning the underlying stock. If the dividend is increased, and the future price would not change, there is an arbitrage possibility. For the sake of simplicity, assume that the stock suddenly starts paying a divide... |
How to read a chart after a split? | The share price on its own has little relevance without looking at variations. In your case, if the stock went from 2.80 to 0.33, you should care only about the 88% drop in value, not what it means in pre-split dollar values. You are correct that you can "un-split" to give you an idea of what would have been the dollar... |
When does selling (writing) options count for tax purposes? | If you take the profit or loss next year, it counts on next year's taxes. There's no profit or loss until that happens. |
Do large market players using HFT make it unsafe for individual investors to be in the stock market? | I don't think that HFT is a game-changer for retail investors. It does mean that amateur daytraders need to pack it up and go home, because the HFT guys are smarter, faster and have more money than you. I'm no Warren Buffet, but I've done better in the market over the last 4 years than I ever have, and I've been active... |
How does investment into a private company work? | However what actually appears to happen is that the 100k is invested into the company to fund some growth plan. So is it actually the case that E's company is worth 400k only AFTER the transaction? Is the 100k added to the balance sheet as cash and would the other 300k be listed as an IP asset? The investor gets 25% of... |
Do Americans really use checks that often? | Sorry for this late reply. I currently live in Iceland (I am a United Statesian). People here told me they thought checks were just something that were in movies. I was amazed by this. So here are some reasons that I see to being why it works still in the usa. 1. Social Security system. Most Euro, Nordic countries hav... |
Why are currency forwards needed? | What is the point of this? Can't I achieve the exact same effect and outcome by exchanging currency now and put that amount of USD in a bank account to gain some interest, then make the payment from one year from now? This is for companies, not individuals. Companies usually take loans, because they think they ca... |
Is stock trading based more on luck than poker playing? | I assert not so. Even if we assume a zero sum game (which is highly in doubt); the general stock market curves indicate the average player is so bad that you don't have to be very good to have better that 50/50 averages. One example: UP stock nosedived right after some political mess in Russia two years ago. Buy! Profi... |
Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA? | You can't roll it over to a Roth IRA without tax penalties. The best thing to do is roll it to an IRA that isn't tied to work at all. Second best is to roll it into your new employer's 401k. The reason that an IRA makes sense is that it gives you the same tax savings as a 401k, but it allows you to remain in contro... |
How to check the paypal's current exchange rate? | The Paypal 'classic' site option has now been removed and you will not know what you will be charged UNTIL YOU COMMIT TO BUY. Paypal told me today ( brexit day 24th ) that their site is NOT connected to the Ebay site so when Ebay tells me '$77.00 approximately £52.43' for an item I would in fact pay £59.62. You wil... |
Using cash back rewards from business credit card | A C-Corp is not a pass-through entity, any applicable taxes would be paid by the Corporation, which is a separate legal entity from yourself. If you use the points to purchase something for yourself, that would constitute "income" to you, and would be taxable on your personal income tax. |
Live in Florida & work remote for a New York company. Do I owe NY state income tax? | If you're not a NY (tax) resident, then as long as you're not physically present in New York - you do not owe NY taxes on compensation for your services. But that is if you're a 1099 contractor/employee. If you're a partner/shareholder in a partnership/LLC/S-Corp registered or conducting business in New York, and that ... |
Definition of equity | I was wondering why equity is reflecting ownership of the issuing entity? That is the definition of equity in this regard. My understanding is that for a stock/equity, its issuing entity is a company/firm that sells the stock/equity, while its receiving entity is an investor that buys the stock/equity Correct. equity ... |
Why is it not a requirement for companies to pay dividends? | The shareholders have a claim on the profits, but they may prefer that claim to be exercised in ways other than dividend payments. For example, they may want the company to invest all of its profits in growth, or they may want it to buy back shares to increase the value of the remaining shares, especially since dividen... |
Can LLC legally lend money to a friend? | I can't say if there is anything specific that makes lending illegal, but if your company goes bankrupt, you might end up in trouble. First, it's a loan. It must be repaid. It must be in the books as a loan, and if your company couldn't pay its bills, you would have to ask for the money back. If the company goes bankr... |
How to account for a shared mortgage in QuickBooks Online? | What is the corporate structure? Your partnership agreement or LLC operating agreement should dictate how you approach this. |
What actions can I take against a bank for lack of customer service? | I don't think the verbal confirmation from the branch manager is worth anything, unless you got it in writing it basically never happened. That said, what did you sign exactly? An application? I'd think they would be well within their rights to deny that, no matter what the branch manager said. If you actually signed a... |
Should I finance a new home theater at 0% even though I have the cash for it? | I have abused 0% interest programs time and time again, but only because my wife and I are assiduous about paying our bills on time. We've mostly taken advantage of it with bigger purchases that we've done through Lowe's or Home Depot (eg - washing machines, carpeting, stove, fridge), but its been well worth it. There... |
how to show income from paypal as export income | PayPal pays with service tax, where ever you have exported you would have given the invoice, and the statement should be shown. I am also an exporter, I know the rules some times a CA might not be aware of PayPal. Just show your statement from PayPal and the deduction. |
List of Investments from safest to riskiest? | I think your premise is slightly flawed. Every investment can add or reduce risk, depending on how it's used. If your ordering above is intended to represent the probability you will lose your principal, then it's roughly right, with caveats. If you buy a long-term government bond and interest rates increase while you'... |
How is a long call and short stock portfolio equivalent to lending money | hmmm. I think it's because in both cases, you must pay for it up front, before the positions are closed out. You own nothing except the right to buy the stock re: the call, and the obligation to buy the stock re: the short. You buy a call, but must borrow the stock, for which you must put some margin collateral and th... |
Is there any benefit to investing in an index fund? | Index funds may invest either in index components directly or in other instruments (like ETFs, index options, futures, etc.) which are highly correlated with the index. The specific fund prospectus or description on any decent financial site should contain these details. Index funds are not actively managed, but that ... |
Separating money in bank account without opening another account | There are some banks that offer "pot" accounts like this (off the top of my head I think Intelligent Finance does, although they call them "jars"). The other option for charity specifically would be a CAF account: https://www.cafonline.org/my-personal-giving/plan-your-giving/individual-charity-account.aspx |
What is the main purpose of FED increase and decrease interest rate? | When inflation is high or is rising generally interest rates will be raised to reduce people spending their money and slow down the rate of inflation. As interest rates rise people will be less willing to borrow money and more willing to keep their money earning a good interest rate in the bank. People will reduce thei... |
When investing, is the risk/reward tradeoff linear? | The relationship is not linear, and depends on a lot of factors. The term you're looking for is efficient frontier, the optimal rate of return for a given level of risk. The goal is to be on the efficient frontier, meaning that for the given level of risk, you're receiving the greatest possible rate of return (reward).... |
How do 401k handle rate of return | Your employer sends the money that you choose to contribute, plus employer match if any, to the administrator of the 401k plan who invests the money as you have directed, choosing between the alternatives offered by the administrator. Typically, the alternatives are several different mutual funds with different investm... |
Recognizing the revenue on when virtual 'credits' are purchased as opposed to used | I'll assume United States as the country; the answer may (probably does) vary somewhat if this is not correct. Also, I preface this with the caveat that I am neither a lawyer nor an accountant. However, this is my understanding: You must recognize the revenue at the time the credits are purchased (when money changes ... |
Is there any circumstance in which it is necessary to mark extra payments on a loan as going to “principal and not interest”? | I had a car loan through GMAC and extra money was applied to future payments. At one point, I received a statement telling me I had 15 months until my next payment was due because I had not marked extra payments as going to principal. |
Why is there so much variability on interest rate accounts | In answering your question as it's written: I don't think you're really "missing" something. Different banks offer different rates. Online banks, or eBanking solutions, such as CapitalOne, Ally, Barclays, etc., typically offer higher interest rates on basic savings accounts. There are differences between Money Market ... |
Is buying or selling goods for gold or silver considered taxable? | Of course. The rationale is exactly the same as always: profit is taxed. The fact that you use intermediate barter to make that profit is irrelevant. To clarify, as it seems that you think it makes a difference that no money "changed hands". Consider this situation: So far your cost is $10000. How will the tax authorit... |
Should I get cash from credit card at 0% for 8 months and put it on loans? | Do you know how many people end up with an 18-21% rate on their credit card? They started off with low teaser rates. There was an article about it recently on Yahoo. Mainly this comes from a lack of discipline, or an unforeseen emergency. However, lets assume, that you are a bit uncommon and have iron discipline. I... |
How converted stock is taxed due to an acquisition | I don't think its a taxable event since no income has been constructively received (talking about the RSU shareholders here). I believe you're right with the IRC 1033, and the basis of the RSU is the basis of the original stock option (probably zero). Edit: see below. However, once the stock becomes vested - then it is... |
What will be the long term impact of the newly defined minimum exchange rate target from francs to euro? | The total size of the eurozone economy is $13 trillion, whereas Switzerland'd GDP is about $0.5 trillion, so the eurozone is about 26 times larger. As such, I would not expect this move to have a large effect on the eurozone economy. On the margins, this may decrease somewhat eurozone exports to Switzerland and incre... |
Ballpark salary equivalent today of “healthcare benefits” in the US? | Healthcare for the employee is more valuable to the employer than is providing healthcare for the rest of the family members. Depending on the family situation, you're going to see significant differences in price between out of pocket costs for insurance of just the employee, vs cost for insuring the entire family. ... |
Is this reply promising a money order and cashier check a scam? | It's a scam. The cashier's check will be forged. Craigslist has a warning about it here (item #3). What kind of payment do you think is not fakable? Or at least not likely to be used in scams? When on craigslist - deal only locally and in person. You can ask to see the person's ID if you're being paid by check When b... |
When is it worth it to buy dividend-bearing stocks? | Yes, they are, and you've experienced why. Generally speaking, stocks that pay dividends will be better investments than stocks that don't. Here's why: 1) They're actually making money. They can finagle balance sheets and news releases, but cash is cash, it tells no lies. They can't fake it. 2) There's less good the... |
Personal finance management: precise or approximately? | If you are off by coins, how can you be sure that you only made a typo and didn't miss a transaction? To start off, I would strongly you find a way to be precise. It doesn't matter so much in the accounting, but the habit of doing a thorough job will pay off in other dividends down the line. Basically, do the pennies... |
After Market Price change, how can I get it at that price? | You can make a purchase at the after market price by sending an order that gets executed in after market. Often times these are called Extended orders, or EXT. With an EXT limit order it will place the bid on the after market hours order book. If you get filled, then you have the shares. This is the answer. |
Is it cheaper to use car Insurance or pay out of pocket? | There's not a single answer here, as the premium you pay for car insurance depends on multiple factors, including (but not limited to): All these factors contribute to the likelihood of getting into an accident, and the expected damage from an accident. So just having an accident and making a claim will likely raise y... |
When to sell a stock? | My theory is that for every stock you buy, you should have an exit strategy and follow it. It is too hard to let emotions rule if you let your default strategy be "let's see what happens." and emotional investing will almost never serve you well. So before buying a stock, set a maximum loss and maximum gain that you ... |
Allocation between 401K/retirement accounts and taxable investments, as a young adult? | I would say yes, it makes sense to keep some money in taxable accounts. Retirement accounts are for retirement, and the various early withdrawal penalties are designed to enforce that. If you're anticipating using the money before retirement (e.g., for home purchase), it makes sense to keep it out of retirement accou... |
Should I use a credit repair agency? | My sister had a similar problem and went to an actual lawyer, not a "credit repair agency". The lawyers settled her debt for a lot less than she owed, and she also got a bonus: one of the creditors called her repeatedly, even after her lawyers had told them not to. The lawyers ended up getting her an extra $40,000... |
Money Structuring | There's a difference between your street level drug dealer sending you sales proceeds of $20,000 in $5,000 increments to avoid sending you $10,000 or $20,000 at once to avoid the scrutiny of a government agency that might not be thrilled with your business venture, and a tire shop paying a wholesaler $5,000 each time f... |
What determines price fluctuation of groceries | Yes and no. First off, commodity prices reflect the cost of a good about 3 steps back in the retail supply chain; the agreed-upon price for the raw foodstuff between farmers/ranchers and manufacturers. Your grocer may carry bags of whole grain wheat, but that's certainly not all he carries that contains it. Same for co... |
Value of credit score if you never plan to borrow again? | In the United States, the Fair Credit Reporting Act allows companies to buy your credit information for "legitimate business needs." The legitimate use of credit scores and credit reporting varies state to state, but like it or not, you can expect a lot more non-lending use of your credit information in the future. Com... |
Death and Capital Gains Taxes (United States) | Stocks (among other property) currently is allowed a "stepped-up basis" when valuing for estate tax purpose. From the US IRS web page: To determine if the sale of inherited property is taxable, you must first determine your basis in the property. The basis of property inherited from a decedent is generally one of the ... |
For net worth, should I value physical property at my cost to replace it, or the amount I could get for selling it? | You're asking for opinions here, because it's a matter of how you look at it. I'll give it a shot anyway. For insurance purposes - there's a clear answer: you insure based on how much it would cost you to replace it. For some reason, you're considering as a possibility negotiating with the insurance company about that,... |
What happens to all of the options when they expire? | Firstly "Most option traders don't want to actually buy or sell the underlying stock." THIS IS COMPLETELY UTTERLY FALSE Perhaps the problem is that you are only familiar with the BUY side of options trading. On the sell side of options trading, an options desk engages in DELTA HEDGING. When we sell an option to a clien... |
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 ... |
Is it prudent to sell a stock on a 40% rise in 2 months | Sell half. If it's as volatile as you say, sell it all and buy on another dip. No one can really offer targeted advice based on the amount of information you have provided. |
Outstanding car bill, and I am primary but have not driven it for 2 years | What can you do? Pay the loan or face the debt collectors. The finance company don't care who now keeps the car, or who drives it. There's money outstanding on the loan, and your signature on the loan form. That's why co-signing a loan for someone else so often ends in tears. |
Saving $1,000+ per month…what should I do with it? | Since you already have an emergency fund in place, focus your extra funds on paying off debts like student loans. While some have advised you to play the stock market, not one person has mentioned the word "risk". You are gambling ("investing") your money in the hopes your money will grow. Your student loan is real lia... |
First time investing advice (Canada) | Two to three years? That is one long gestation period! :^) Welcome. Congratulations on taking savings into your own hands, you are a winner for taking responsibility for your, and your family's life. If I was you my first priority would be to pay off your car and never buy one on time again. Or you could sell it and... |
How do I get into investing in stocks? | Read "The intelligent Investor" book before you do anything. I started when I really didn't understand anything about stocks. I bought an internet stock for $150 per share which sold at 75cents a year later. I sold it for a profit but would've been a disaster. |
How can I calculate the volatility(standard deviation) of a stock price? and/or ROI (return on investment) of a stock? | Use the Black-Scholes formula. If you know the current price, an options strike price, time until expiration, and risk-free interest rate, then knowing the market price of the option will tell you what the market's estimation of the volatility is. This does rely on a few assumptions, such as Gaussian random walk, but t... |
Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance? | It depends on how long it will take you to pay off the personal loan, the rate for the personal loan, the refi rate you think you can get, how much principal you will have to add to get the refi (may have gone up since then). Since you did not provide all the necessary details, the general answer is to sketch out your ... |
Looking for a stock market simulation that's as close to the real thing as possible | Stock market is like poker: you don't take the same risks when it is fake money and thus you don't learn the same lessons from your mistakes. I would recommend instead to play with real market and real money (rule #0: use only money that you don't need). Start with safe products and go to the bath progressively. It too... |
Can a wealthy investor invest in or make a deal with a company before it goes public / IPO? | Yes, an investment can be made in a company before IPO. The valuation process is similar as that done for arriving at IPO or for a normal listed company. The difference may be the premium perceived for the idea in question. This would differ from one investor to other. For example, whether Facebook will be able to grow... |
Why was my Credit Limit Increase Denied? | The bottom line is that you are kind of a terrible customer for them. Granted you are far better than one that does not pay his bills, but you are (probably) in the tier right above that. Rewards cards are used to lure the unorganized into out of control interest rates and late payments. These people are Capital One... |
Reasons behind a large price movement of a penny stock without any recent news releases? | Yes, in my humble opinion, it can be "safe" to assume that — but not in the sense that your assumption is necessarily or likely correct. Rather, it can be "safe" in the respect that assuming the worst — even if wrong! — could save you from a likely painful and unsuccessful speculation in the highly volatile stock of a ... |
Should the price of fuel in Australia at this point be so high? | Fuel prices are regulated in most countires. The way its regulated differs. Essentially the idea is once the retail prices are up, they are normally kept that level so that a buffer profit is built, now if the fuel prices increase beyond the retail price can still be kept same using the buffer built up. |
In the UK, could low-income pensioners (or those near a low-income retirement) find a student loan useful for boosting their finances? | In theory - Yes. So as long as someone will accept you as a (very) mature student, you plan to never earn over 21k a year for the next 30 years (no longer wiped out at 65), you could get a loan, slightly unethically (unless you fancy doing the course). Also if you did have to start paying it back - since interest rates... |
Can I cash a cashier's check at any bank? | The classic Nigerian scam involves sending fraudulent cashier's checks to unwitting recipients who then deposit them in their account. The bank reverses these deposits once they discover the check is not valid. At least in the US and in the parts of the EU I'm familiar with (the Netherlands), the method of the Nigeri... |
Is there any instrument with real-estate-like returns? | nan |
Building financial independence | For a young person with good income, 50k sitting in a savings account earning nothing is really bad. You're losing money because of inflation, and losing on the growth potential of investing. Please rethink your aversion to retirement accounts. You will make more money in the long run through lower taxes by taking adva... |
Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve? | borrow money from the Central Bank Wrong premise. They cannot borrow as much as they want and they cannot borrow without collateral i.e. government debt instruments they hold or any other instrument with value. And banks don’t have unlimited collateral to borrow against. Secondly central banks aren’t in the business ... |
Get car loan w/ part time job as student with no credit, no-cosigner but no expenses | Instead of going to the dealership and not knowing if you will be able to get a loan or what the interest rate might be, go to a local credit union or bank first, before you go car shopping, and talk to them about what you would need for your loan. If you can get approval for a loan first, then you will know how much ... |
Are these really bond yields? | Yes those are really yields. A large portion of the world has negative yielding bonds in fact. This process has been in motion for the past 10 years for very specific reasons. So congratulations on discovering the bond market. |
Mortgage refinancing fees | 2.5%? Whoa, you are being robbed there. Straight-up, stripped-down, and bent-over-a-table robbed. Never agree to "fees". If they don't want to do the work to give you a loan, there are other lenders who do. Rarely agree to "points". If you know -- and I don't mean "think", I mean "know" -- if you know that you are g... |
Why will the bank only loan us 80% of the value of our fully paid for home? | If you get a loan for 80% of the value of your house, that's equivalent to buying a house with a 20% down payment (assuming the appraised value is what you'd buy it for). That's the minimum down payment for Fannie Mae backed loans without PMI (mortgage insurance). See this table for more details. Freddie Mac (the oth... |
How does 1099 work with my own company | Can I work on 1099 from my own company instead of on W2? The reason is on W2 I can't deduct my commute, Health Insurance and some other expenses while on 1099 I think I can able do that. Since I am going to client place to work not at my own office, I am not sure whether I should able to do that or not. If you ... |
Why would you ever turn down a raise in salary? | If you have children in a university institution, then your annual salary is reported via financial aid forms. The small raise could be the difference between full tuition covered and only half tuition covered. |
What is high trading volume in a stock indicative of? Is high liquidity a good thing or a bad thing? | In general, there should be a "liquidity premium" which means that less-liquid stocks should be cheaper. That's because to buy such a stock, you should demand a higher rate of return to compensate for the liquidity risk (the possibility that you won't be able to sell easily). Lower initial price = higher eventual rate ... |
Purpose of having good credit when you are well-off? | Credit in general having no significant change between an income level or net worth is due to the economic reciprocity principle inherent in many societies. Although some areas of credit may be more admirable to those who aren't as well-off, such as car loans, the overall understanding of credit is a trust agreement be... |
Does high inflation help or hurt companies with huge cash reserves? | Inflation is bad for people with lots of cash assets. It's good for debtors, particularly debtors with unsecured debt. |
Does getting a 1099 from another state count as working in another state if I was physically in my home state? | This depends on the state law. In case of the State of New York - these are the criteria for sourcing the NY income: As a sole proprietor or partnership, your New York source income includes: Business activities As a nonresident sole proprietor or partnership, you carry on a business, trade, profession, or occupati... |
Do any publically available documents from IR or SEC include all patents the company holds? | SEC filings do not contain this information, generally. You can find intangible assets on balance sheets, but not as detailed as writing down every asset separately, only aggregated at some level (may be as detailed as specifying "patents" as a separate line, although even that I wouldn't count on). Companies may hold ... |
How do you translate a per year salary into a part-time per hour job? | It's difficult to quantify the intangible benefits, so I would recommend that you begin by quantifying the financials and then determine whether the difference between the pay of the two jobs justifies the value of the intangible benefits to you. Some Explainations You are making $55,000 per year, but your employer is ... |
Considerations for holding short-term reserves? | It is a dangerous policy not to have a balance across the terms of assets. Short term reserves should remain in short term investments because they are most likely needed in the short term. The amount can be shaved according to the probability of their respective needs, but long term asset variance usually exceed the ... |
income tax for purchased/sold short term & long term shares | As mentioned by Dilip, you need to provide more details. In general for transacting on stocks; Long Term: If you hold the stock for more than one year then its long term and not taxable. There is a STT [Securities Transaction Tax] that is already deducted/paid during buying and selling of a stock. Short Term: If you ho... |
What Did Benjamin Graham Mean by Earnings Stability in The Intelligent Investor? | Please note that the following Graham Rating below corresponds to five years: Earnings Stability (100% ⇒ 10 Years): 50.00% Benjamin Graham - once known as The Dean of Wall Street - was a scholar and financial analyst who mentored legendary investors such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Sc... |
Home Renovations are expensive.. Should I only pay cash for them? | I know that both Lowes and Home Depot (in Canada at least) will offer a 6 month deferred interest payment on all purchases over a certain dollar amount (IIRC, $500+), and sometimes run product specific 1 year deferred interest specials. This is a very effective way of financing renovations. Details: You've probably see... |
Why do people take out life insurance on their children? Should I take out a policy on my child? | It's Permanent Insurance, sold as a savings scheme that is a bad deal for most people. The insurance aspect really doesn't mean much to most people. The classic example that's been around for decades is the "Gerber Grow Up Plan". Basically, it's a whole-life policy that accumulates a cash value. The pitch is typically ... |
Insurance company sent me huge check instead of pharmacy. Now what? | This is not a mistake. This is done for "Out of Network" providers, and mainly when the patient is an Anthem member, be it Blue Shield or Blue Cross. Even though an "Assignment of Benefits" is completed by the patient, and all fields on the claim from (CMS1500 or UB04) are completed assigning the benefits to the provid... |
Why do stocks tend to trade at high volumes at the end of (or start) the trading day? | Trading at the start of the day is highest because of news flows that may have come after the close of the previous day. And trading at the end of the day is highest because of expected news flows after closing hours. Moreover, there are many day traders who buy in the morning without making any payment for purchase a... |
Employer reported ESPP ordinary income on wrong year's W-2 | Based on the statement in your question you think it should have been on the 2014 W-2 but it was included on the 2015 W-2. If you are correct, then you are asking them to correct two w-2 forms: the 2014 form and the 2015 form. You will also have to file form 1040-x for 2014 to correct last years tax forms. You will hav... |
How to approach building credit without a credit card | One possible route is to try to have no credit. This is different than bad credit. If you build up a good downpayment (20%), a number of banks would do manual underwriting for you. |
Why is it rational to pay out a dividend? | The real value of a share of stock is the current cash value of all dividends the owner will receive, plus the current cash value of the final liquidation if any. Since people with different needs may judge the current cash value of an income stream differently, there would be a market basis for people to buy and sell... |
Must ETF companies match an investor's amount invested in an ETF? | Does the bolded sentence apply for ETFs and ETF companies? No, the value of an ETF is determined by an exchange and thus the value of the share is whatever the trading price is. Thus, the price of an ETF may go up or down just like other securities. Money market funds can be a bit different as the mutual fund company w... |
How does Value get rounded in figuring out Bonds Value? | With the formula you are using you assume that the issued bond (bond A) is a perpetual. Given the provided information, you can't really do more than this, it's only an approximation. The difference could be explained by the repayment of the principal (which is not the case with a perpetual). I guess the author has ca... |
As a young adult, what can I be doing with my excess income? | You apparently assume that pouring money into a landlord's pocket is a bad thing. Not necessarily. Whether it makes sense to purchase your own home or to live in a rental property varies based on the market prices and rents of properties. In the long term, real estate prices closely follow inflation. However, in some a... |
What is the difference between the asset management division in an investment bank and an investment company? | I would say that there is no real difference. Asset management companies that is part of large banking groups usually seat in separate entities and operate independently from the rest of the bank. Assuming proper procedures (and regulators usually check that) are in place they will not share information with the rest ... |
How to move (or not move) an LLC from Illinois to New Mexico? | Why not just leave it as is and register as foreign entity in New Mexico? You won't avoid the gross receipts tax, but other than that - everything stays as is. Unless Illinois has some taxes that you would otherwise not pay - just leave it there. |
Understanding the phrase “afford to lose” better | Keep in mind that it's a cliche statement used as non-controversial filler in articles, not some universal truth. When you were young, did you mom tell you to eat your vegetables because children are starving in Ethiopia? This is the personal finance article equivalent of that. Generally speaking, the statement as an a... |
How can I avoid international wire fees or currency transfer fees? | I faced something similar for travel or work reasons, and as for me I preferred wire transfer over credit card withdrawals because my bank has huge fees. My thoughts so far are: the fee can vary a lot for credit card. As for me, I can expect 5% fees on foreign withdrawals. But I considered changing bank and I think a G... |
When you're really young and have about 2K to start investing $ for retirement, why do some people advise you to go risky? | Those who say a person should invest in riskier assets when young are those who equate higher returns with higher risk. I would argue that any investment you do not understand is risky and allows you to lose money at a more rapid rate than someone who understands the investment. The way to reduce risk is to learn about... |
Bank of the Sierra: Are they legit? How can the checking interest APY be so high? | I believe MrChrister's answer is correct: Since they're FDIC insured, they are "legit." Second, on the seemingly too-good-to-be-true rate: They're basically making up the difference on other fees (not necessarily paid by you) in order to offer you the higher-than-market rate. I'd like to point out two things not ment... |
devastated with our retirement money that we have left | When you say: I am 48 and my husband is 54. We have approx. 60,000.00 left in our retirement accounts. We want to move our money into something so our money will grow. We've been looking at annunities. We've talked to 4 different advisors about what is best for us. Bad mistake, I am so overwhelmed with the differ... |
What to bear in mind when considering a rental home as an investment? | What are the most important facts to keep in mind as I consider this? IMHO, the most important consideration to keep in mind is - do you really want to be in the landlord business, and if so, how much experience do you have in this business? |
Accepted indicators for stock market valuation | There are several camps for stock valuation, and much of it boils down to your investment style. A growth investor will not consider something with a 50x P/E ratio to be overvalued, but a value investor certainly would. I would recommend looking up the Fama-French n-factor model (it was 3-factor, I believe they have r... |
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