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If one owns 75% of company shares, does that mean that he would have to take upon himself 75% of the company's expenses? | Together the founders represent 100% of the outstanding stock, so they can do it however they like. |
Is it possible to make money by getting a mortgage? | yes. you can take out 500,000 form your paid of house. you pay back 500,000 at 3.5. percent. you do get a tax break for not owning your house. it is less then 3.5 you are paying back the back. about one forth of that, BUT you take the 500,000 in invest. Now cd low 1 percent, stock is risky. You can do R... |
Buying a small amount (e.g. $50) of stock via eToro “Social Trading Network” using a “CFD”? | As many people here have pointed out, a CFD is a contract for difference. When you invest in stock at eToro, you buy a CFD reflecting a bid on the price movement of the underlying stock, however, you do not actually own the stock or hold any rights shareholders have. The counterparty to the CFD is eToro. When you close... |
How should my brother and I structure our real estate purchase? | Because this question seems like it will stick around, I will flesh out my comments into an actual answer. I apologize if this does not answer your question as-asked, but I believe these are the real issues at stake. For the actual questions you have asked, I have paraphrased and bolded below: Firstly, don't do a real ... |
Mortgage loan implications when tearing down existing house and building new one? | You would probably be best off checking through your loan documents to see if anything is listed in it in regards to tearing down the existing house. Likely it is not allowed. Thinking about it logically, the house is collateral for the mortgage, and you are wanting to destroy the collateral. I would expect the bank wo... |
Does U.S. tax code call for small business owners to count business purchases as personal income? | I am going to keep things very simple and explain the common-sense reason why the accountant is right: Also, my sister in law owns a small restaurant, where they claim their accountant informed them of the same thing, where a portion of their business purchases had to be counted as taxable personal income. In this case... |
What are good games to play to teach young children about saving money? | I've found that good old fashioned "Monopoly" teaches children about cash flow, mortgaging properties, and paying income taxes. |
Ballpark salary equivalent today of “healthcare benefits” in the US? | For the person being hired this is a tricky situation. Specially with the new laws. There is no real magic number that can be applied as a lot will depend on what benefits you want, and what is actually available. This will really shift the spectrum quite a bit. Under the affordibal care act, everyone has to have insu... |
Is an Income Mutual Fund a good alternative to a savings account? | The value will certainly fluctuate up and down (but on average gain more than a savings account), but so long as you have enough liquid assets for emergencies, then yes, it's a perfectly good alternative to savings accounts. how risky, in general, are Index Income Funds. How are you defining "risk"? If you mean "probab... |
Calculate time to reach investment goals given starting balance? | Fairly straightforward to match the result from the calculator soup link. There is a formula to calculate n from the future value s (using natural logs) In Excel This was derived as shown To calculate n from the inflation-adjusted future value si requires using a solver since an algebraic formula cannot be formulated... |
What is the fair value of a stock given the bid and ask prices? Is there such a relationship? | Fair value can mean many different things depending on the context. And it has nothing to do with the price at which your market order would be executed. For example if you buy market, you could get executed below 101 if there are hidden orders, at 101 if that sell order is large enough and it is still there when your ... |
What does it mean for a company to have its market cap larger than the market size? | It is ALWAYS possible for a company's valuation in the market to be larger than the market it serves, and in fact it is not uncommon. There's valid argument that Uber would be a good example of this, with a market cap of more than $60 billion. Market cap is the total value of all shares outstanding. Keep in mind tha... |
Is it possible to know the probability that a trade is successful? | If you had a trading system, and by trading system I mean the criteria setup that you will take a trade on, then once a setup comes up at what price will you open the trade and at what price you will close the trade. As an example, if you want to buy once price breaks through resistance at $10.00 you might place your b... |
How can I stop a merchant from charging a credit card processing fee? | I gather that, while it is not illegal for a merchant to pass their payment card processing fees on to their customers directly in the form of a surcharge, doing so is a violation of their merchant agreements with the payment card processor (at least for Visa/MC). It's not - surcharging has been permissible since 2013,... |
Better to rent condo to daughter or put her on title? | Obviously you have done well financially in order to be able to purchase a condo for cash, presumably, without risk of your other obligations. To put things in perspective, we are probably talking about less than $5,000 in tax savings. If she is on the title then she is a co-owner. Are you okay with that? You woul... |
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... |
Why do consultants or contractors make more money than employees? | Note too that being a contractor means that you will unavoidably have periods between contracts; you tend to be out of work more often than a salaried employee would. You need to set your rates so your average income, including those down times, adds up to a living wage including all those benefits that aren't being co... |
Getting a mortgage while self-employed | Would it be worth legitimizing his business or is it too late at this point? To be blunt, you're asking if we recommend that he stop breaking the law. The answer is obviously yes, he should be declaring his income. And it would probably benefit him to get on the same page as his employer (or client) so they can both st... |
When would one actually want to use a market order instead of a limit order? | Firstly what are you trading that you could lose more than you put in? If you are simply trading stocks you will not lose more than you put in, unless you are trading on margin. A limit order is basically that, a limit on the maximum price you want your buy order bought at or the minimum price you want your sell order ... |
Optimize return of dividends based on payout per share | What you're referring to is the yield. The issue with these sorts of calculations is that the dividend isn't guaranteed until it's declared. It may have paid the quarterly dividend like clockwork for the last decade, that does not guarantee it will pay this quarter. Regarding question number 2. Yield is generally ... |
Why does gold have value? | Gold has value because for the most of the history of mankind's use of money, Gold and Silver have repeatedly been chosen by free markets as the best form of money. Gold is durable, portable, homogeneous, fungible, divisible, rare, and recognizable. Until 1971, most of the world's currencies were backed by Gold. In ... |
Brokerage account for charity | If the charity accepts stock, you can avoid the tax on the long term cap gain when you donate it. e.g. I donate $10,000 in value of Apple. I write off $10,000 on my taxes, and benefit with a $2500 refund. If I sold it, I'd have nearly a $1500 tax bill (bought long enough ago, the basis is sub $100). Any trading along ... |
Advantage of Financial Times vs. free news sources for improving own knowledge of finance? | If you are interested in a career in algorithmic trading, I strongly encourage you to formally study math and computer science. Algorithmic trading firms have no need for employees with financial knowledge; if they did, they'd just be called "trading" firms. Rather, they need experts in machine learning, statistical ... |
Home (re)Finance and Providing Additional Information | I have never had a lender ask my budget, only my income, savings, credit rating and value of the collateral. That's considered adequate info to estimate risk for most ordinary loans. Yes, they may want the income proven by evidence from your employer or via a copy of your tax returns. They don't care what you buy as lo... |
When should I walk away from my mortgage? | It's a decision that only you can make. What are the chances that you'll want to take another loan (any loan - car, credit card, installment plan for new fridge, whatever else)? What are the chances that with the bad credit you'll find it hard to rent a place (and in Cali it's hard to rent a place right now, believe me... |
Is insurance worth it if you can afford to replace the item? If not, when is it? | The answer to this question is very different depending on the type of item. From a purely financial perspective you would want to answer these questions which you may not have enough information to answer: Realistically the question I prefer to ask are: When something fails there is a big difference to me between hav... |
What does it mean for a company to have its market cap larger than the market size? | The difference between the two numbers is that the market size of a particular product is expressed as an annual number ($10 million per year, in your example). The market cap of a stock, on the other hand, is a long-term valuation of the company. |
Can I get a discount on merchandise by paying with cash instead of credit? | Slightly off topic... Not merchandise, but I paid for various doctor's appointments with cash (as opposed to paying with health insurance). I'd call ahead of time and notify them that I'd be paying in cash. I got ridiculous discounts, sometimes even less than the copay. I do not know why this discrepancy exists and ... |
Stock trading models that use fundamental analysis, e.g. PEG ratios? | Maria, there are a few questions I think you must consider when considering this problem. Do fundamental or technical strategies provide meaningful information? Are the signals they produce actionable? In my experience, and many quantitative traders will probably say similar things, technical analysis is unlikely to pr... |
Do Banks Cause Inflation? What are other possible causes? | There are several causes of inflation. One is called cost push — that is, if the price of e.g. oil goes up sharply (as it did in the 1970s), it creates inflation by making everything cost more. Another is called demand pull: if labor unions bargain for higher wages (as they did in the 1960s), their wage costs push up p... |
Should I fund a move by borrowing or selling other property assets? | It is a lot easier to make money when you are not in debt. If you can sell the apartment, get rid of your existing mortgage and buy the new house outright, that is probably the best course of action. |
Why are capital gains taxed at a lower rate than normal income? | Were capital gains taxes not lower, companies would have an incentive to minimize the portion of the value they create that materializes as capital gains. They would do this by using more debt financing (since interest is deductible) than equity financing. This would have a destabilizing effect on the economy. Low capi... |
What is the added advantage of a broker being a member of NFA in addition to IIROC | This shows that in each market (US and Canada) the company is registered with the appropriate regulatory organization. OANDA is registered in the US with the National Futures Association which is a "self-regulatory organization for the U.S. derivatives industry". OANDA Canada is registered in Canada with IIROC which is... |
Can you buy gift cards at grocery store to receive a higher reward rate? | Understand that buying a Starbucks gift card at the grocery store to receive 6% back on your coffee rather than 6% back on your groceries is an exploit of a flaw in the benefits program, not a feature. It's definitely not a blanket yes or no answer, the only way to find out is to try. Separately, I don't know why you ... |
What's the difference when asked for “debit or credit” by a store when using credit and debit cards? | It depends on your bank and your terms of service, but using the card one way or the other may affect things such as how long it takes to process, what buyer protections you have, etc. It also affects the store as I believe they are charged differently for debit vs credit transactions. |
The U.S. National Debt: What is it, where did it come from, and how does it work? | For political reasons, almost all governments (including the US) spend more money than they get from taxes etc. There are a number of things a government can do to cover the difference: Most governments opt for selling bonds. The "National Debt" of a country can be thought of as being the sum of all the "Bonds" that ... |
How to spend more? (AKA, how to avoid being a miser) | I agree with JoeTaxpayer's answer. The question you should be asking is not "how do I spend more" but "how do I become happier". From what you say, it may be that you could increase your happiness simply by cutting back on these aggressive attempts to save a few bucks here and there. At the same time, if you do this,... |
If I use stock as collateral for a loan and I default, does the bank pay taxes when they sell my stock? | The short answer is that the exchange of the stock in exchange for the elimination of a debt is a taxable exchange, and gains or losses are possible for the stock investor as well as the bank. The somewhat longer answer is best summarized as noting that banks don't usually accept stocks as collateral, mostly because ... |
What are the ramifications of lawsuits over “breaches of fiduciary duty” for the average shareholder? | As an investor, I try to interpret the suits as an attempt to in some way influence the actions of the company - and not, usually, as a serious legal threat (or as likely to lead to serious legal consequences). My (shallow) understanding (as a non-lawyer) is that the requirements for a lawsuit to be filed as class-acti... |
Are cashiers required to check a credit card for a signature in the U.S.? | I'm not sure if they're required to do so, but I have been neglecting to sign my cards for some time now. If they do check, that triggers an ID check, where they'll find my signature. I know of at least one person that writes "see ID" instead of signing their cards. He began that practice over 10 years ago. |
Selling a car with a lien | You could have the buyer go to the bank with you so that he can get evidence that the loan will be paid in full and that the lien will be lifted. The bank won't sign over the title (and lift the lien) until the loan is paid back in full. DMV.org has a pretty good section about this. (Note: not affiliated with the actua... |
Credit card interest calculator with grace period & different interest rate calculation methods? | If you want to ensure that you stop paying interest, the best thing to do is to not use the card for a full billing cycle. Calculating credit card interest with precision ahead of time is difficult, as how you use the card both in terms of how much and when is critical. |
Why would anyone want to pay off their debts in a way other than “highest interest” first? | Let's say I have two loans (say 2 car loans), and the high interest loan has a higher balance. Both have a monthly payment of, say, $500. My income fluctuates a lot, so occasionally I only have $750. I get hit with big fees those months, or maybe I just have to eat beans for those months. I come on some extra money.... |
Unmarried couple buying home, what are the options in our case? | You are thinking about this very well. With option one, you need to think about the 5 D's in the contract. What happens when one partner becomes disinterested, divorced (break up), does drugs (something illegal), dies or does not agree with decisions. One complication if you buy jointly, and decide to break up/move, ... |
How much is one “lot” of EUR/USD? | A lot (sometimes called a round lot) always refers to the quantity of physical good that you're getting, like a carton of eggs or a barrel of oil. The tricky thing in the case of forex is that the physical good also happens to be a currency. A spot currency product trades in the denomination on the right-hand side (RH... |
If a stock doesn't pay dividends, then why is the stock worth anything? | Most companies get taken over eventually. More to the point, ANY company with a public float over 50 percent that's large and viable enough to fall on people's radar screens will get taken over if its stock price is "too low" relative to its long term prospects. It is the possibility of a takeover, as much as anything... |
How does historical data get adjusted for dividends, exactly? | If you download the historical data from Yahoo, you will see two different close prices. The one labeled 'Close' is simply the price that was quoted on that particular day. The one labeled 'Adj Close' is the close price that has been adjusted for any splits and dividends that have occurred after that date. For example... |
What should I look for when looking for stocks that are 'on-sale'? | Don't invest. Keep cash. And wait till you see a crash in the price of some of your favorite blue chip stocks. But wait till the true bottom is in...you will know when is the right time as it will be obvious. |
Do rental car agencies sell their cars at a time when it is risky for the purchaser? | Every car model/type has a know interval when things need maintenance or replacement. This info comes mainly from the manufacturer and the rental companies use these info to determine how long and at what rate a car should be rented (I mean in total, not rented to an individual) This is easiest calculated with a long t... |
how much of foreign exchange (forex/fx) “deep liquidity” is really just unbacked leverage and what is the effect? | I'd think that liquidity and speed are prioritized (even over retail brokers and in come cases over PoP) for institutional traders who by default have large positions. When the going gets tough, these guys are out and the small guys - trading through average retail brokers - are the ones left holding the empty bag. |
Shorting stocks: Indicators that a stock will drop? | First, it's much safer to be shorting stocks over $5 than stocks under $5. I use 3 indicators to show that a stock has topped out and about to drop. Key is the timing cause the initial drop is often the biggest. More close you get in at the top, the higher the risk. Using 1D Charts ONLY: - MACD Indicator: I use the... |
When would one actually want to use a market order instead of a limit order? | After learning about things that happened in the "flash crash" I always use limit orders. In an extremely rare instance if you place a market order when there is a some glitch, for example some large trader adds a zero at the end of their volume, you could get an awful price. If I want to buy at the market price, I ju... |
Should I pay off my student loan before buying a house? | It depends on the terms. Student loans are often very low interest loans which allow you to spread your costs of education over a long time without incurring too much interest. They are often government subsidized. On the other hand, you often get better mortgage rates if you can bring a down payment for the house. Th... |
How do I get a Tax Exemption Certificate for export from the US if I am in another country? | Depends on the state, in Texas you should charge sales tax because the shipment is going to a freight forwarder in Texas. That being said, once you have the bill of lading you can have your tax credited by the vendor. It is one of the documents the state will except in lieu of sales tax for exports. There are five. ... |
Why invest for the long-term rather than buy and sell for quick, big gains? | Another benefit of holding shares longer was just pointed out in another question: donating appreciated shares to a nonprofit may avoid the capital gains tax on those shares, which is a bigger savings the more those shares have gone up since purchase. |
I spend too much money. How can I get on the path to a frugal lifestyle? | Gail Vaz-Oxlade from the television show Til Debt Do Us Part has a great interactive budget worksheet that helps you set up a "jar" or envelope system for each month based on your income and fixed expenses. We have used this successfully in the past. What we found most useful was, as others have said, writing everyth... |
Options for dummies. Can you explain how puts & calls work, simply? | So, child, your goal is to make money? This is usually achieved by selling goods (say, lemonade) at a price that exceeds their cost (say, sugar, water and, well, lemons). Options, at first, are very much same in that you can buy the right to engage in a specific future trade. You make money in this situation if the eve... |
What could be the cause of a extreme high/low price in after hours market? | Often these types of trades fall into two different categories. An error by broker or exchange. Exchange clearing out part of their books incorrectly is an example. Most exchanges make firms reopen their positions for after market hours. There may have been an issue doing so or exchange could incorrectly cancel po... |
Should I invest $35,000 for 3-5 months? [duplicate] | Is it possible to profit from some of this money in the short term before I need to access it? Sure, it's possible. But if the stock market decides to "correct" (or even crashes), you'll be in a world of hurt. Thus, since it's so important that you not lose this money, just stick it in an online bank earning 1.2%, and... |
Options for dummies. Can you explain how puts & calls work, simply? | In addition to all these great answers, check out the Wikipedia entry on options. The most important thing to note from their definition is that an option is a derivative (and nothing about any derivative is simple). Because it is a derivative, increases or decreases in the price of the underlying stock won't automati... |
Huge return on investment, I feel like im doing the math wrong | Your math is correct. These kind of returns are possible in the capital markets. (By the way, Google Finance shows something completely different for $CANV than my trading console in ThinkorSwim, ToS shows a high of $201, but I believe there may have been some reverse splits that are not accurately reflected in either ... |
Is foreign stock considered more risky than local stock and why? | If you intend to be responsive to news and intraday price moves, for foreign stocks these will often happen while you're asleep (e.g. the Tokyo Stock Exchange opens at roughly midnight UK time). |
Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve? | Let's just focus on the "why would a bank need to accept deposits from private clients part" and forget the central bank for a moment. I'm a guy. I have a wife and two kids. They have this pesky habit of wanting to buy stuff. When I get paid, I could just get a check, cash it, stuff it under a mattress, and pull it out... |
Is there a correlation between self-employment and wealth? | If you could find a breakdown, I suspect that it would show not just that they are self employed but own their own company. There are many people that are self employed, many of them make a good living at it, but are not millionaires. My neighbour the plumber is a perfect example of this sort of self-employed and comf... |
Why can't the Fed lower interest rates below zero? | If the Federal Reserve were to pay banks to hold money, they would need to get the money from somewhere to do so. They would have three options: Go to Congress, and request and authorization of funds. As an quasi-independent entity, however, it would be both highly unorthodox for an institution to diminish its own aut... |
How are stock buybacks not considered insider trading? | Another way to look at this is that pure insider trading is an activity with the aim to use secret information to make personal profit or let others make personal profit at the expense of the company shareholders or investors. In buybacks, it is not company managers to get personal gain in this would-be "insider tradin... |
How does one value Facebook stock as a potential investment? | In the long term, a P/E of 15-25 is the more 'normal' range. With a 90 P/E, Facebook has to quadruple its earnings to get to normal. It this possible? Yes. Likely? I don't know. I am not a stock analyst, but I love numbers and try to get to logical conclusions. I've seen data that worldwide advertising is about $400B,... |
Pay off credit card debt or earn employer 401(k) match? | For easy math, say you are in the 25% tax bracket. A thousand deposited dollars is $750 out of your pocket, but $2000 after the match. Now, you say you want to take the $750 and pay down the card. If you wait a year (at 20%) you'll owe $900, but have access to borrow a full $1000, at a low rate, 4% or so. The payment ... |
Where can I open a Bank Account in Canadian dollars in the US? | Everbank has offered accounts in foreign currencies for a while. https://www.everbank.com/currencies Takes a while to get it setup; and moving cash in and out is via wire transfer. Also you need to park $5K in USD in a money market account; which you use as a transfer point. |
Pay off debt with RRSPs, or refinance and roll into Mortgage? | I would personally look at consolidating your debt at a lower interest rate by refinancing your mortgage. I would leave any retirement funds alone unless it was absolutely necessary to touch it with no other avenues available. However, once you have consolidated your debt into the mortgage I would pay more than the min... |
Any experience with maxing out 401(k)? | Don't forget to also build up an emergency fund - retirement saving is important, but you don't want to be caught in a situation where you need money for an emergency (lose your job, get hit by a bus, etc.) and it's all locked away in your 401(k). |
What's the average rate of return for some of the most mainstream index funds? | This page from simplestockinvesting.com gives details of total returns for the S&P500 for each decade over the last 60 years, including total returns for the entire 60 year period. It is important to understand that, from an investors point of view, the total return includes both the change in index value (capital gain... |
At Vanguard, can I transfer shares from regular investment account to a Roth IRA? | Since you are paying taxes on the distributions from your mutual funds anyway, instead of reinvesting the distributions back into the mutual funds, you could receive them as cash, then contribute them to your Roth IRA once you are able to open one. |
Why doesn’t every company and individual use tax-havens to pay less taxes? | Your "average company and taxpayer" generally wouldn't have significant off-shore/foreign income. In the U.S., for example, even if you have your employer deposit all of your salary to an account at a foreign bank, they would still report it to the IRS as income. Removing the money from your home country isn't what get... |
Buying a home - brokerage fee | That sounds like a particularly egregious version of exclusivity. However, the way that you could handle that is to include a "contingency" in your purchase agreement stating that your offer is contingent upon the seller paying the brokerage fee. The argument against this, and something your broker might use to encoura... |
Comparing the present value of total payment today and partial payments over 3 months | I got $3394.83 The first problem with this is that it is backwards. The NPV (Net Present Value) of three future payments of $997 has to be less than the nominal value. The nominal value is simple: $2991. First step, convert the 8% annual return from the stock market to a monthly return. Everyone else assumed that... |
How does delta of an option change with time if underlying price is constant? | As the option approaches expiry, the delta will approach zero or one, depending on whether you're in or out of the money. This might be easiest to conceptualise if you look at the option value as a function of the stock price, and then realise that the delta is the slope of that curve. Now, as we get closer to expiry, ... |
Net loss not distributed by mutual funds to their shareholders? | I'll try to answer using your original example. First, let me restate your assumptions, slightly modified: The mutual fund has: Note that I say the "mutual fund has" those gains and losses. That's because they occur inside the mutual fund and not directly to you as a shareholder. I use "realized" gains and losses beca... |
I have $12k in a Chase checking account, but want to start earning interest/saving/investing/etc to make more money. What should I do? | Lets make some assumptions. You are not close to retirement. You have no other debts. You have a job. You have no big need for the money. You should invest that. Do not invest with a bank, they are not as competitive on fees as a brokerage account. You can get specific answers that are different from every person... |
Why can't the Fed lower interest rates below zero? | Why can't the Fed simply bid more than the bond's maturity value to lower interest rates below zero? The FED could do this but then it would have to buy all the bonds in the market since all other market participants would not be willing to lend money to the government only to receive less money back in the future. No... |
Should I use my non-tax advantaged investment account to pay off debt? | You could pay off a portion of the debt and your minimum payments should also go down proportionately. Your investment managers may be able to continue making returns in the markets in a sideways and a bear market. So you have 24k contributing to your net worth, and ~50k giving you a negative net worth. At best, you c... |
When is it better to rent and when is better buy in a certain property market? | Besides the long-term concern about which is cheaper, which has already been addressed by other answers, consider your risk exposure. Owning property has financial risks associated with it, just like owning stocks or bonds. The risk-related downsides of owning a home as an asset include: The risk-related upsides of own... |
Are market orders safe? | Market orders can be reasonably safe when dealing with stocks that are rather liquid and have quite low volatility. But it's important to note that you're trading a large degree of control over your buy / sell price for a small benefit in speed or complexity of entering an order. I always use limit orders as they help ... |
Should I sell a 2nd home, or rent it out? | Another factor is, how far is your prospective rental property from where you live? vs. how comprehensive is your property management service? If you need to visit much or would simply like to keep an eye on it, a couple of hours drive could be a deal breaker. One more thought; would you be able to upgrade the propert... |
About to start being an Independent Contractor - Any advice on estimating taxes? | One possibility that I use: I set up an LLC and get paid through that entity. Then I set up a payroll service through Bank of America and set up direct deposit so that it is free. I pay myself at 70% of my hourly rate based on the number of hours I work, and the payroll service does all the calculations for me and set... |
Investment Options for 14-year old? | A Junior ISA might be one option if you are eligible do you have a CTF? (child trust fund) though the rules are changing shortly to allow those with CTF's to move to a junior ISA. JISA are yielding about 3.5% at the moment Or as you are so young you could invest in one or two of the big Generalist Investment trusts (W... |
If a fund holds stocks paying dividends and doesn't give a payout, is it necessarily re investing those dividends? | It is not necessary that the mutual fund pays out the dividend. The money would be used to buy more shares of the same stock or of some other stock depending on overall policy goal of the fund and current allocation of funds. This would increase the NAV of the mutual fund and hence its indirectly comes to you once you ... |
Should I learn to do my own tax? | Interesting. When you say DIY you mean pencil and paper. For most of us the choice came down to using a professional vs using the software. Your second bullet really hits the point. The tax return is a giant spreadsheet with multiple cells depending on each other. Short of building my own spreadsheet to perform the ta... |
Can I transfer self-employed income into LLC? | An LLC is a very flexible company when it comes to taxation. You have three basic tax options: There are other good reasons to create an LLC (mainly to protect your personal assets) so even if you decide that you don't want to deal with the complications of an S-Corp LLC, you should still consider creating a sole prop... |
If I want to take cash from Portugal to the USA, should I exchange my money before leaving or after arriving? | My experience (from European countries, but not Portugal specifically) is that it's better to change in the European country, as many banks will give you US $ as a matter of course, while in the US (insular place that it is), it can be rather difficult to find a place to exchange money outside an international airport.... |
Break Even On Options Contracts | I found the answer after some searching online. It turns out that when talking options, rarely is the current P/L line considered when talking about making adjustments/taking trades off. From Investopedia: http://www.investopedia.com/terms/b/breakevenpoint.asp "... For options trading, the breakeven point is the market... |
How to calculate how far a shorted stock's price can rise before broker issues a margin call? | When margin is calculated as the equity percentage of an account, the point at which a broker will forcibly liquidate is typically called "maintenance margin". In the US, this is 25% for equities. To calculate the price at which this will occur, the initial and maintenance margin must be known. The formula for a long ... |
Taxes on transactions of services | It's called bartering and the IRS has a page titled Four Things to Know About Bartering. The summary is - The bottom line is this is taxable. |
250k USD in savings. What's next? | Considering the historical political instability of your nation, real property may have higher risk than normal. In times of political strife, real estate plummets, precisely when the money's needed. At worst, the property may be seized by the next government. Also, keeping the money within the country is even more r... |
What is “financial literacy” and how does one become “financially literate”? | Financial Literacy is about learning about finance and money and how to use and manage them to give you better outcomes in life. Just like the more books you read and the more writing you do will improve your literacy, the more financial books you read, the more questions you ask and the more you participate in this fo... |
Is it a good investment for a foreigner to purchase a flat/apartment in China? | I think a greater problem would be the protection of your property right. China hasn't shown much respect for the property rights of its own citizens - moving people off subsistence farms in order to build high-rise apartments - so I'm not certain that a foreigner could expect much protection. A first consideration i... |
Is my mortgage more likely to be sold if I pre-pay principal? | In a process called collateralization, your mortgage is combined with others to form a security that other can invest in. When done right, this process provides liquidity, more money to be lent for more loans. When done wrong, bad things happen. My mortgage happens to be held by the issuing bank. Yours was sold into s... |
When will the U.K. convert to the Euro as an official currency? | A lot of smaller (and/or weaker) countries did not have much choice when Germany and France decided to rename the German Mark as the Euro, as most of their trade was already in Marks. It was even common for their population to have their savings in Marks. So the question was. Do we wish to have to use the Euro wit... |
How do you find reasonably priced, quality, long lasting clothing? | The best way to find good quality is to check the garment tag: What kind of material is it made of? Jersey 100% cotton or any 100% cotton is one of the best quality material for most casual clothing. Then, you should touch it (designer step/touching). You will get better along the way. If you think you will like it, i... |
Should you diversify your bond investments across many foreign countries? | The Vanguard Emerging Market Bond Index has a SEC yield of 4.62%, an expense ratio of 0.34%, a purchase fee of 0.75%, and an average duration of 6.7 years. The Vanguard Emerging Market Bond Index only invests in US Dollar denominated securities, so it is not exposed to currency risk. The US Intermediate Term Bond Ind... |
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