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Deductible expenses paid with credit card: In which tax year would they fall? | Being a professional auditor and accountant, deduction against expenses are claimed in the year in which expenses has been incurred. It has no relationship with when it is paid. For example, we may buy on credit does not mean that they will be allowed in the period in which it is paid. This is against the fundamental a... |
In the USA, why is the Free File software only available for people earning less than $62k? | Regardless of the source of the software (though certainly good to know), there are practical limits to the IRS 1040EZ form. This simplified tax form is not appropriate for use once you reach a certain level of income because it only allows for the "standard" deduction - no itemization. The first year I passed that ... |
401k Rollover - on my own or through my financial advisor? | Call up vanguard and tell them you want to do a rollover. They walk you through the process. Spend some time on reading up on asset allocation and benefits of indexing. 1.5% every year is steep and what do you have in return? The advisor's word that he'll make it up. How much did he manage to return during the la... |
Should you keep your stocks if you are too late to sell? | The standard answer on any long term stock is hold on during the rough times. You have not lost anything until you sell. If your concern is just that you are not certain where the stock price is headed, unless you need the money now and can not afford to hold on to the stock then I would hold it. |
Thrift Saving Plan (TSP) Share Price Charts | The recommended way to track TSP funds in online portfolio tools is to track the underlying index and know that the results are pretty close. Not a perfect solution: :( Source including suggested ETFs: http://finance.yahoo.com/news/breaking-down-tsp-investment-funds-194600393.html Related, but not exactly what you ar... |
In the stock market, why is the “open” price value never the same as previous day's “close”? | It does sometimes open one day the same as it closed the previous day. Take a look at ESCA, it closed October 29th at 4.50, at opened November 1st at 4.50. It's more likely to change prices overnight than it is between two successive ticks during the day, because a lot more time passes, in which news can come out, an... |
How does a delta signify the probability of expiring in the money | Just for clarification, delta and probability of expiring in the money are not the same thing. What the guy meant was that delta is usually a close enough approximation to the probability. One way to think about it is to look at the probabilities and deltas of In the Money, Out of the Money, and At the Money options. I... |
Can I get my property taxes lowered? | There is no relationship between the government appraisal and the mortgage appraisal. The loan appraisal is done by a lender to determine if the property value is in agreement with the loan amount. The government appraisal is done to determine how much to charge you in taxes. They use the values of residences and comm... |
Why should I choose a business checking account instead of a personal account? | Some benefits of having a business checking account (versus a personal checking account) are: The first 3 should be pretty easy to determine if they are important to you. #4 is a little more abstract, though I see you have an LLC taxed as a sole proprietorship, and so I'm guessing protecting your personal assets may ha... |
Explanation on Warren Buffett's famous quote | In the short term the market is a popularity contest In the short run which in value investing time can extend even to many years, an equity is subject to the vicissitudes of the whims by every scale of panic and elation. This can be seen by examining the daily chart of any large cap equity in the US. Even such large ... |
What are some of the key identifiers/characters of an undervalued stock? | P/E = price per earnings. low P/E (P/E < 4) means stock is undervalued. |
Is engaging in stocks without researching unwise? | Stock recommendations and price history are an unwise way to invest. People that recommend stocks are usually compensation for recommending it. They are paid directly by third parties, that can be paid in shares, they can simply own the stock themselves and if the stock goes up they can sell it to new investors at a hi... |
Commencing a Pension from an SMSF | No. Disclaimer - As a US educated fellow, I needed to search a bit. I found an article 7 Common SMSF Pension Errors. It implied that there are minimum payments required each year as with our US retirement accounts. These minimums are unrelated to the assets within the account, just based on the total value. The way I r... |
How much should a new graduate with new job put towards a car? | You are currently $30k in debt. I realize it is tempting to purchase a new car with your new job, but increasing your debt right now is heading in the wrong direction. Adding a new monthly payment into your budget would be a mistake, in my opinion. Here is what I would suggest. Since you have $7k in the bank, spend ... |
Do I have to pay a capital gains tax if I rebuy different stocks? | Yes. As long as the stock is in a taxable account (i.e. not a tax deferred retirement account) you'll pay gain on the profit regardless of subsequent purchases. If the sale is a loss, however, you'll risk delaying the claim for the loss if you repurchase identical shares within 30 days of that sale. This is called a w... |
Are there any Social Responsibility Index funds or ETFs? | Vanguard offers an index fund. Their FTSE Social Index Fund. For more information on it, go here. |
Best way to buy Japanese yen for travel? | I already commented the best existing answers, however let me note a couple of other things. Some of my friends in the past have wanted to do one of the following: |
What is the best way to learn investing techniques? | First, you need to figure out what your objectives for the money are. Mostly, this boils down to how soon you are going to need the money. If you are, as you say, very busy and you don't need the money until retirement, I'd suggest putting your money in a single target date fund, such as the BlackRock LifePath fund. ... |
Why do VAT-registered businesses in the EU charge VAT to each other? | But why can't two companies exchange goods directly without paying VAT? This would make the famous carousel fraud scam impossible and businesses won't have to deal with complicated refunds. Sales tax in the United States works as you describe. Sales tax is charged only to end customers, not to businesses that themselv... |
Does the P/E ratio not apply to bond ETFs? | A bond fund has a 5% yield. You can take 1/.05 and think of it as a 20 P/E. I wouldn't, because no one else does, really. An individual bond has a coupon yield, and a YTM, yield to maturity. A bond fund or ETF usually won't have a maturity, only a yield. |
Are there cons to paying monthly bills with a rewards card and then paying it off monthly? | Some accounts, such as my electric, and payments to the tax collector charge a significant enough fee that is counter productive to use a rewards card. One example of this is Alligent Air. They give you a $6 discount if you pay with a debit card which was about 5% of the ticket price. Anytime you borrow money, even a... |
How can a Canadian establish US credit score | set up a US company (WY is cheap and easy), go south and open a personal and business bank account, ask for the itin form. file for the itin. set up your EIN for the company. get a credit card for both. pay some mail forwarding service with it. file for taxes in the next year using your itin. prepaid cards do not link ... |
Is it better to miss the dividend and buy the undervalued stock? | As yet another explanation of why it does not really matter, you can look at this from the valuation point of view. Stock price is the present value of its future cash flows (be it free cash flow of the firm or dividends, depending on the model). Let's have a look at the dividends case. Imagine, the price of the stock ... |
How to help a financially self destructive person? | You can't help people that don't want help, period. It just doesn't work, and you will waste your time and energy while making the other person mad. Both sides end up in the same place they started except now they are frustrated with each other. In a normal situation I would advise to stop enabling her by giving her mo... |
Buying under my bid price | It definitely depends on the exchange you are trading on. I'm not familiar with Scottrade, but a standard practice is to fulfill limit orders in the order they are placed. Most of the time, you wouldn't see stocks trade significantly under your bid price, but since penny stocks are very volatile, it's more likely the... |
Does investing more money into stocks increase chances of profit? | I think you are mixing up the likelihood of making a profit with the amount of profit. The likelyhood of profit will be the same, because if you buy $100 worth of shares and the price moves up you will make a profit. If you instead bought $1000 worth of the same shares at the same price and the price moved up you would... |
What prevents investors from buying high yield stocks and selling them as soon as their dividend is paid out? | I remember my Finance Professor at b-school answering this question: The next moment the dividend is paid the total market cap is decreased by the amount paid This makes sense as cash leaves company, the value of the company is decreased by exactly the same amount. To summarise: the moment you paid dividend, the va... |
Can I fully deduct capital losses against discounted capital gains? | The short answer is no - the CGT discount is only applied against your net capital gain. So your net capital gain would be: $25,000 - $5,000 = $20,000 Your CGT discount is $10,000 You will then pay CGT on $10,000 Of course you could sell ABC in this financial year and sell DEF next financial year. If you had no other ... |
Is it really possible to get rich in only a few years by investing? | Yes, it's possible. However, it's not likely, at least not for most people. Earning a million is not that difficult, but when you talk about billions that's an entirely different story. I think the key point that you're missing is leverage. It's common knowledge that Warren Buffett likes to have a huge cash warchest at... |
Is giving my girlfriend money for her mortgage closing costs and down payment considered fraud? | There is not any fraud involved. Anybody can gift money to another person. |
Value investing | The June 2014 issue of Barclays Wealth's Compass magazine had a very nice succinct article on this topic: "Value investing – does a rules-based approach work?". It examines the performance of value and growth styles of investment in the MSCI World and S&P500 arenas for a few decades back, and reveals a surprisingly co... |
Effective returns on investment in housing vs other financial instruments | Then at the end, if you decide to cash in your house, you can roll the proceeds into a fancier house to avoid paying taxes on your profit. The problem is that the book was written in 1989. That comment is no longer true; that part of the tax law changed in the 1990's. Also in 1989 the maximum amount that person could... |
Making your first million… is easy! (??) | Easy. Start with 2 millions and lose only one. Jokes aside, if you want a million USD, you should be asking yourself how you can produce products or services worth $5 millions. (expect the extra to be eaten up by taxes, marketing, sales, workforce...) If by investment you mean making risky bets on the stock market, you... |
What is a good 5-year plan for a college student with $15k in the bank? | A good question -- there are many good tactical points in other answers but I wanted to emphasize two strategic points to think about in your "5-year plan", both of which involve around diversification: Expense allocation: You have several potential expenses. Actually, expenses isn't the right word, it's more like "app... |
Rules for Broker Behavior with Covered Calls | I think the question, as worded, has some incorrect assumptions built into it, but let me try to hit the key answers that I think might help: Your broker can't really do anything here. Your broker doesn't own the calls you sold, and can't elect to exercise someone else's calls. Your broker can take action to liquidat... |
Why do 10 year Treasury bond yields affect mortgage interest rates? | The yield on treasury bond indicates the amount of money anyone at can make at virtually zero risk. So lets say banks have X [say 100] amount of money. They can either invest this in treasury bonds and get Y% [say 1%] interest that is very safe, or invest into mortgage loans [i.e. lend it to people] at Y+Z% [say at 3... |
Borrowing money and then investing it — smart or nart? | Theory of Levered Investing Borrowing in order to increase investment exposure is a time-honored and legitimate activity. It's the optimal way to increase your exposure, according to finance theory (which assumes you get a good interest rate...more on this later). In your case it may or may not be a good idea. Based... |
What considerations are there for making investments on behalf of a friend? | how many transactions per year do you intend? Mixing the funds is an issue for the reasons stated. But. I have a similar situation managing money for others, and the solution was a power of attorney. When I sign into my brokerage account, I see these other accounts and can trade them, but the owners get their own tax ... |
How does Yahoo finance adjust stock data for splits and dividends? | Should be noted that pacoverflow's answer is wrong. Yahoo back-adjusts all the previous (not current or future) values based on a cumulative adjustment factor. So if there's a dividend ex-date on December 19, Yahoo adjusts all the PREVIOUS (December 18 and prior) prices with a factor which is: 1 - dividend / Dec18Close |
How do brokers make money from margin accounts? | They will make money from brokerage as usual and also from the interest they charge you for lending you the money for you to buy your shares on margin. In other words you will be paying interest on the $30,000 you borrowed from your broker. Also, as per Chris's comment, if you are shorting securities through your margi... |
Why would I want a diversified portfolio, versus throwing my investments into an index fund? | Index funds are well-known to give the best long-term investment. Are they? Maybe not all the time! If you had invested in an index fund tracking the S&P500 at the start of 2000 you would still be behind in terms of capital appreciation when taking inflation into considerations. Your only returns in 13.5 years would ha... |
How to understand expenses matter relative to investment type for mutual funds? | The net return reported to you (as a percentage) by a mutual fund is the gross return minus the expense ratio. So, if the gross return is X% and the expense ratio is Y%, your account will show a return of (X-Y)%. Be aware that X could be negative too. So, with Y = 1, If X = 10 (as you might get from a stock fund if y... |
Does high frequency trading (HFT) punish long-term investment? | Not really. High frequency traders affect mainly short term investors. If everyone invested long-term and traded infrequently, there would be no high frequency trading. For a long term investor, you by at X, hold for several years, and sell at Y. At worst, high frequency trading may affect "X" and "Y" by a few pennies ... |
Can the Delta be used to calculate the option premium given a certain target? | In a simple world yes, but not in the real world. Option pricing isn't that simplistic in real life. Generally option pricing uses a Monte Carlo simulation of the Black Scholes formula/binomial and then plot them nomally to decide the optimum price of the option. Primarily multiple scenarios are generated and under tha... |
Retirement Savings vs. Student Loan payments | You can play with the numbers all you like (and that's good), however, here is a different way to look at it. The debt you have is risk. It limits your choices and eats your cash flow. Without the debt, you can invest at a much greater rate. It frees up you cash flow for all the things you might want to do, or decide ... |
How will the New credit reporting rules affect people who are already struggling financially? | From my understanding by paying your bills more than 5 days late will not lead you into bankruptcy or stop you from getting a new loan in the future, however it may mean that lenders offer you credit at a higher interest rate. This of course would not help you as you are already struggling with your finances. However, ... |
What does it mean that stocks are “memoryless”? | @jidugger mostly got it right. It basically mean that past performance of a stock, or a basket of stocks, are not at all useful when trying to predict its future. There is no proven correlation between past and future performance. If there was such a correlation, that was "proven" or known, then investors would quickly... |
Should I replace bonds in a passive investment strategy | The fact that some asset (in this case corporate bonds) has positive correlation with some other asset (equity) doesn't mean buying both isn't a good idea. Unless they are perfectly correlated, the best risk/reward portfolio will include both assets as they will sometimes move in opposite directions and cancel out eac... |
What's the difference between “Index” and “Accumulation” tracker funds? | Whenever a website mentions Hypothetical Growth of $100, $1,000, or $10,000, it assumes that that investor himself will reinvest the dividend. This is true whether you look at Morningstar or Financial Times. Unless the website does not have dividend data, e.g. Google Finance. If you want to compare the account value ... |
What's a good personal finance management web app that I can use in Canada? | I use MoneyStrands (formerly called Expensr), but mostly just to track expenses and look at reports on my spending habits. It has some really pretty charts, with the ability to drill down into categories and sub-categories, or graph monthly spending for any custom date range. It does a half-decent job of auto-categoriz... |
In debts now, help please | nan |
Why gamma scalping is not advised for retail traders with reg T margin | My interpretation of that sentence is that you can't do the buying/selling of shares outright (sans margin) because of the massive quantity of shares he's talking about. So you have to use margin to buy the stocks. However, because in order to make significant money with this sort of strategy you probably need to be w... |
How much is university projected to cost in Canada in 18 years? | The College Board offers a calculator. (Targeted to US residents; not sure how the figures will differ for Canada and other countries.) Keep in mind that college costs typically increase faster than inflation. When I attended in 2001-2005, my college's tuition costs increases ranged from 4 to 6%. |
If stock price drops by the amount of dividend paid, what is the use of a dividend | The stock will slowly gain that $1 during the year. Suppose we have the highly theoretical situation that a company's stock is worth exactly $10 right after it paid its dividend, its dividend is always $1 per stock, and the company and everything else is so stable that its value never changes. Then the stock value righ... |
Buy index mutual fund or build my own? | If you are a "small" investor (namely, not an accredited investor), then the transaction costs (commissions) for purchasing the stocks while attempting to duplicate DJIA will defeat any benefit. My personal preference is to purchase mutual funds rather than ETFs. |
Condo Purchase - Tax Strategies [US] | If it's a rental, you will write off the losses via Schedule E. You should read this document and its instructions to understand this fully. You will also take depreciation on the value of the building, not the land, over 27.5 years. If you don't understand this, search here, there are discussions that cover this. If ... |
The difference between Islamic Banks and Western Banks | To answer your first part, its not an opposition to profit. It's an opposition to usury - the practice of charging excessive interest on loans. There are extensive passages in the Qur'an condemning the practice, and in many cases "excessive interest" is any interest. To the second part of the question, these may well b... |
What tax advantage should I keep an eye for if I am going to relocate? | Depends. If you can choose where to relocate to, then I second the "no income tax" states. But even of these chose wisely, some have no income taxes at all, others have taxes on some kinds of income. Some don't have neither individual nor corporate taxes, some tax businesses in some ways. Some compensate with higher pr... |
Should I replace bonds in a passive investment strategy | I have had similar thoughts regarding alternative diversifiers for the reasons you mention, but for the most part they don't exist. Gold is often mentioned, but outside of 1972-1974 when the US went off the gold standard, it hasn't been very effective in the diversification role. Cash can help a little, but it also f... |
Do I need to invest to become millionaire? | If your take-home salary after taxes etc is 35K / year, and you say you will be able to save at most 40% of that, you will need to find something that pays 2.75% to reach one million in 40 years*. However, these numbers can chance dramatically depending on your specific circumstances. If you're just starting your caree... |
What are the pros and cons of buying a house just to rent it out? | There are actually a few questions you are asking here. I will try and address each individually. Down Payment What you put down can't really be quantified in a dollar amount here. $5k-$10k means nothing. If the house costs $20k then you're putting 50% down. What is relevant is the percent of the purchase price you're ... |
Is there such a thing as a deposit-only bank account? | Usually the most significant risk scenarios here are: Third parties can abuse your routing/account numbers to initiate debits, but this is a type of fraud that is easily traced. It can happen, but it is more likely that it would be a scenario where you were specifically targeted vs. the victim of some random fraud. Def... |
What is a good 5-year plan for a college student with $15k in the bank? | First thing to do right now, is to see if there's somewhere equally liquid, equally risk free you can park your cash for higher rate of return. You can do this now, and decide how much to move into less liquid investments on your own pace. When I was in grad school, I opened a Roth IRA. These are fantastic things for y... |
Should I include retirement funds in calculating my asset allocation? | Personally, I do asset allocation separately for personal investing and for retirement investing, as I the two have vastly different purposes and I have vastly different goals for each. YMMV depending on how you view your non-retirement investments, and how close you are to retirement. |
Impact of RMD on credit worthiness | The actual policy will vary based on the specific bank. But, if I were in your shoes I'd include RMDs in my stated income for credit card purposes. |
Is real (physical) money traded during online trading? | With Forex trading - physical currency is not involved. You're playing with the live exchange rates, and it is not designed for purchasing/selling physical currency. Most Forex trading is based on leveraging, thus you're not only buying money that you're not going to physically receive - you're also paying with money t... |
Is there any downside to using temporary credit card numbers with subscription services? | I did just what you suggest. The card company honored the charge, they told me the temporary number was solely for the purpose of assigning a number to one vendor/business. So even though I set a low limit, the number was still active and the card company paid the request. Small price to pay, but it didn't go as I wish... |
Are there any countries where citizens are free to use any currency? | Sounds like you have a goldbug whispering in your ear. The Coinage Act doesn't restrict you from using foreign currency or lawful commodity or service to fulfill a debt. You are free to do that whenever you enter into an explicit or implicit contract with another party. If that wasn't the case, your kid trading his bag... |
What would be the signs of a bubble in silver? | If markets were perfectly efficient, the price should reflect everything that is currently known about the future of a commodity. If it is known that silver is currently under-valued, then investors would be buying it -- driving the price up. Conversely, if silver is currently over-valued, then investors would be sel... |
New to investing — I have $20,000 cash saved, what should I do with it? | @mbhunter and @JoeTaxpayer have given good advice. Were I in your situation, the only thing I might do differently is put whatever amount of cash not needed for emergencies in a money market fund with check-writing privileges and/or a debit card. The rate on the account has at least some chance of preserving the value... |
Canceling credit cards - insurance rate increase? | The comments section to Dilip's reply is overflowing. First - the OP (Graphth) is correct in that credit scoring has become a game. A series of data points that predicts default probability, but of course, offers little chance to explain why you applied for 3 loans (all refinancing to save money on home or rentals) go... |
What should I consider when selecting a broker/advisor to manage my IRA? | I've not gotten an answer so far. Since I've started my search for a new financial planner here are the criteria I am using: |
Ways to establish credit history for international student | I came to US as an international student several years ago, and I have also experienced the same situation like most of the international students in finding ways to build credit history. Below I list out some possible approaches you may want to consider: I. Get a student job at campus (recommended) I think the best wa... |
How would IRS treat reimbursement in a later year of moving expenses? | I believe moving reimbursement has to be counted as income no matter when you get it. I'd just put it under miscellaneous income with an explanation. |
How can I invest my $100? | What is your investing goal? And what do you mean by investing? Do you necessarily mean investing in the stock market or are you just looking to grow your money? Also, will you be able to add to that amount on a regular basis going forward? If you are just looking for a way to get $100 into the stock market, your best ... |
Dow Jones Industrial Average (DJIA), NASDAQ 100, and S&P 500 index historical membership listing? | Dow Jones: http://en.wikipedia.org/wiki/Historical_components_of_the_Dow_Jones_Industrial_Average NASDAQ: http://en.wikipedia.org/wiki/NASDAQ-100 (scroll down) S&P Tricky. From what I can find, you need to be in Harvard Business School, a member of CRSP, or have access to Bloomberg's databases. S&P did have the info a... |
Is being a landlord a good idea? Is there a lot of risk? | Risk is the capital you have staked in pursuit of profit. The danger is that you lose what you have risked. For some bets (risks), you can get insurance to cover for losses. Now the "game" of Landlord and Tenant requires you to play fully by the rules set forth by your legislators. In your case, that is the legislato... |
Index fund that tracks gold and other commodities | I don't know answers that would be specific to Canada but one of the main ETF funds that tracks gold prices is GLD (SPDR Gold Trust) another is IAU (iShares Gold Trust). Also, there are several ETF's that combine different precious metals together and can be traded. You can find a fairly decent list here on the Stock E... |
First time investor and online brokerage accounts | Littleadv has given you excellent general advice, but to my mind, the most important part of it all and the path which I will strongly recommend you follow, is the suggestion to look into a mutual fund. I would add even more strongly, go to a mutual fund company directly and make an investment with them directly in... |
Why would I pick a specific ETF over an equivalent Mutual Fund? | In the case of VFIAX versus VOO, if you're a buy-and-hold investor, you're probably better off with the mutual fund because you can buy fractional shares. However, in general the expense ratio for ETFs will be lower than equivalent mutual funds (even passive index funds). They are the same in this case because the mutu... |
What happens if one brings more than 10,000 USD with them into the US? | Bad plan. This seems like a recipe for having your money taken away from you by CBP. Let me explain the biases which make it so. US banking is reliable enough for the common citizen, that everyone simply uses banks. To elaborate, Americans who are unbanked either can't produce simple identity paperwork; or they got ... |
Why does it take 3 days to do electronic transfers between banks? [duplicate] | I was perplexed by this until a few days ago when it finally clicked in a meeting with our fraud and money laundering teams in work (I work on trading surveillance). Apparently fraud detection and prevention of money laundering are currently the biggest delayers when it comes to electronic transfer of funds, checking t... |
How do ETF fees get applied? | The ETF price quoted on the stock exchange is in principle not referenced to NAV. The fund administrator will calculate and publish the NAV net of all fees, but the ETF price you see is determined by the market just like for any other security. Having said that, the market will not normally deviate greatly from the NA... |
taxes, ordinary income, and adjusted cost basis for RSUs | The sale of shares on vesting convolutes matters. In a way similar to how reinvested dividends are taxed but the newly purchased fund shares' basis has to be increased, you need to be sure to have the correct per share cost basis. It's easy to confuse the total RSU purchase with the correct numbers, only what remained.... |
Should I start investing in property with $10,000 deposit and $35,000 annual wage | I want to caveat that I am not an active investor in Australia, you most likely should seek out other investors in your market and ask them for advice/mentorship, but since you came here I can give you some generalized advice. When investing in real estate there are a two main rules of thumb to quickly determine if th... |
Why do consultants or contractors make more money than employees? | In addition to the other answers, consultants and contractors face a real risk (though admittedly small) of not getting paid. The more short-term the gigs are, the higher the risk of not getting paid for a particular job. As an employee, there are laws to ensure that you get your paycheck. As a contractor, you're just ... |
“Business day” and “due date” for bills | It's likely that your bill always shows the 24th as the due date. Their system is programmed to maintain that consistency regardless of the day of the week that falls on. When the 24th isn't a business day it is good to error on the side of caution and use the business day prior. It would have accepted using their sys... |
Getting (historical) Standard & Poor Stock Guides | I haven't seen one of these in quite some time. Back in the 1970s, maybe the 1980s, stock brokers would occasionally send their retail clients a complimentary copy once in a while. Also, I remember the local newspaper would offer a year-end edition for a few dollars (maybe $3) and that edition would include the newspap... |
How can I have credit cards without having a credit history or credit score? | That is an opinion. I don't think so. Here are some differences: If you use credit responsibly and take the time to make sure the reporting agencies are being accurate, a good report can benefit you. So that isn't like a criminal record. What is also important to know is that in the United States, a credit report is... |
Deferring claim of significant purchase of RRSPs | You can't defer reporting of the RRSP purchases. The financial institution will report those purchases to CRA, and the CRA expects to see you report those purchases on your return. If they don't match, expect to be audited and to pay penalties. However, you can defer the tax deduction of those purchases until later ... |
Should I wait to save up 20% downpayment on a 500k condo? | If you already have the money, put the 20% down but here is another option: You can put whatever you want down...Let's say 10%. For the other 10%, take out a 2nd mortgage. This enables you to avoid PMI. The rate you will get on the second mortgage will be higher than the first but the combination of 2 mortgages may be ... |
What is the cheapest way to move money from the United States to Canada? [duplicate] | If you aren't familiar with Norbert's Gambit, it's worth looking at. This is a mechanism using a Canadian brokerage account to simultaneously execute one stock trade in CAD and one in USD. The link I provided claims that it only starts potentially making sense somewhere in the 10,000+ range. |
What are the important differences between mutual funds and Exchange Traded Funds (ETFs)? | Behind the scenes, mutual funds and ETFs are very similar. Both can vary widely in purpose and policies, which is why understanding the prospectus before investing is so important. Since both mutual funds and ETFs cover a wide range of choices, any discussion of management, assets, or expenses when discussing the diff... |
Company A is buying company B, what happens to the stock? | It depends on the timing of the events. Sometimes the buying company announces their intention but the other company doesn't like the deal. It can go back and forth several times, before the deal is finalized. The specifics of the deal determine what happens to the stock: The deal will specify when the cutoff is. Some ... |
When and how should I pay taxes on ForEx trades? | I don't know how taxes work in Israel, but I imagine it is relatively similar to taxes in the US. In the US you need to pay taxes on investment earnings when you sell them or in this case trade them for something of value. The amount that would typically would be taxed on would be the difference between how much you pa... |
How does Vanguard determine the optimal asset allocation for their Target Retirement Funds? | Googling vanguard target asset allocation led me to this page on the Bogleheads wiki which has detailed breakdowns of the Target Retirement funds; that page in turn has a link to this Vanguard PDF which goes into a good level of detail on the construction of these funds' portfolios. I excerpt: (To the question of why s... |
Credit card grace period for pay, wait 1 day, charge? | This will not result in any finance charges: I wouldn't recommend cutting it quite so close, but as long as you pay the full balance as shown on each statement by the due date shown on that same statement, you won't incur a finance charge. Of course this only applies in the case of ordinary purchases that have a grace ... |
Basic Info On Construction Loans | Construction loans have an entirely set of rules and factors than mortgages and that's hard to reconcile into one instrument. Also, I'm guessing the bank would be a bit shy about giving a commitment to a home loan before they have any information about how the construction process is going. There would have to be a t... |
How to deal with the credit card debt from family member that has passed away? | Sorry for your loss. I am not a lawyer and this isn;t legal advice -- which I am not licensed to give. But I've had to deal with some debt situations of my own. I think the worst case scenario is the creditor can get a judgment, but that won't be against you unless you were a co-signor. The collectors are going to prey... |
What percent of my salary should I save? | I am pretty sure you could find a number of financial planners whom you could pay to give you a very accurate number, but the rule of thumb I like best is Save a dime of every dollar. 10% (Savings means save for retirement, not vacations.) Here is a nice article from radio personality Clark Howard with some adjustment... |
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