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Optimal pricing of close to zero marginal cost content | With near zero marginal cost, and infinite supply, your prices are going to be decided by entry cost, competition, and what the market will bear. Generally speaking, though, there are no accurate models for getting these kinds of optimal prices in advance - your best bet is to test, experiment, and then build a busines... |
How to get a down payment for your next home? Use current home as the down payment on the new one? | What you're looking at is something called "Bridge-Financing". Essentially, it allows you to borrow your down-payment from the bank, using your old home as collateral. The interest rate varies, but if you get the bridge from the same institution as your new mortgage, they will often be a bit flexible. You take poss... |
What kinds of exchange-traded funds (ETFs) should specifically be avoided? | As with ANY investment the first answer is....do not invest in any that you do not fully understand. ETF's are very versatile and can be used for many different people for many different parts of their portfolio, so I don't think there can be a blanket statement of "this" one is good or bad for all. |
2008-2009 Stock Market Crash — what caused the second drop? | The second drop was part of the same event. The short-term resurgence is often called a "dead cat bounce". Mongus Pong's answer is a great answer, I'm going to approach from a more anecdotal POV. Think about the fear that was in the air in Fall 2008. From my recollection, that short-term stabilization came from the Fed... |
How much financial information should a buyer give an estate agent? | Estate agents need the amount of deposit you will put down because they want to be able to assess the viability of your mortgage plans. If you have a high deposit (or are a cash buyer) that makes you an attractive buyer, and they can use it as leverage in your favour. It may also give them an idea of whether you could ... |
Gap in domestic Health Insurance coverage, expect higher premiums? | The insurance company is must assume you do have a preexisting condition you are unaware of. The reason for that is that Affordable Care Act precludes the Insurance company from denying coverage of them if you do. Insurance companies are businesses. They are in business to make money(unless you have a nonprofit insu... |
I am the sole owner of an LLC. Does it make a difference if I file as an S-Corp or a sole-member LLC? | Be careful of the other answers here. Many are wrong or partially wrong. The question implies that you knew this, but for everyone else's benefit, you can keep you LLC organization and still elect to be treated as a S-Corp by the IRS just for tax purposes. You do this by filing Form 2553 with the IRS. (You can also, b... |
How do I calculate ownership percentage for shared home ownership? | The bottom line is that you can decide whatever you want to do. It is good of you to get everything in writing. What happens if she decides to move to a different city? What happens if she also wants to be bought out? It should also include contingencies for your husband and yourself. God forbid anything negative ... |
At what age should I start or stop saving money? | As AskAboutGadgets notes, there's no lower age limit. You current age (24) is a pretty good one; you'll have four decades or so for your money to grow and compound, allowing it to become a veritable fortune when you're ready to retire if you invest it fairly aggressively. |
How to minimise the risk of a reduction in purchase power in case of Brexit for money held in a bank account? | GBP has already lost part of his value just because of the fear of Brexit. An actual Brexit may not change GBP as much as expected, but a no-Brexit could rise GBP really a lot. |
Can I use balance transfer to buy car? | You do not say what country you are in. This is an answer for readers in the UK. Most normal balance transfer deals are only for paying off other credit cards. However there are "money transfer" deals that will pay the money direct to your bank account. The deals aren't as good as balance transfer deals but they are of... |
Are there any rules against penalizing consumers for requesting accurate credit reporting? | To answer the heart of your question, it would be illegal for any credit bureau or creditor to somehow "penalize" you just for trying to make sure that what's being reported about you is accurate. That's why the Fair Credit Reporting Act exists -- that's where the rights (and mechanisms) come from for letting you lear... |
Better to rent condo to daughter or put her on title? | @Pete B.'s answer is good, but there's an important note to consider for tax purposes. It's too large for a comment, so I'm adding it as an answer. And that is: you cannot claim the property as a rental property under certain conditions. This affects things like claiming mortgage interest (which you don't have), and ... |
Should I sell my rental property or keep it if it has mold growth problems? | I'm going to assume that you will spend the money to fix the mold problem correctly. Using your numbers, after that is done, the home is worth perhaps $280k. To evaluate whether or not to sell, the amount you have spent on the house is irrelevant. The only thing you need to ask yourself is this: Would I spend $280k to... |
501(3)(c) to donators for trophy party | The good news is that your parent organization is tax exempt and your local organization might be. The national organization even has guidelines and even more details. Regarding donations they have this to say: Please note: The law requires charities to furnish disclosure statements to donors for such quid pro quo d... |
Value of tokens bought at an older price | You will make a profit in nominal dollars (or nominal units of whatever currency you used to buy the token). Whether you'll make a profit in real dollars depends on inflation, and in practice whether it would be possible to sell your existing tokens to someone else for the new price. Suppose when the price was 50 U (5... |
Is it true that 90% of investors lose their money? | The article "Best Stock Fund of the Decade: CGM Focus" from the Wall Street Journal in 2009 describe the highest performing mutual fund in the USA between 2000 and 2009. The investor return in the fund (what the shareholders actually earned) was abysmal. Why? Because the fund was so volatile that investors panicked and... |
(Theoretical) Paying credit cards with other credit cards | A "balance transfer" is paying one credit card with another. You probably get offers in the mail to do this all of the time. As other posters have noted, however, this usually comes with finance fees rather than the rewards that you get for normal purchases because it's written into your credit card agreement as a di... |
What forms (S-1, 8-K, etc) and keywords in news headlines signify dilution? | Possibles: stock offering, secondary placement, increase authorized number of shares, shelf registration. |
Steps/Procedures to open an online stock trading account in the US | Since you are not starting with a lot of cash the commissions may eat into your account. So go with somebody that has no inactivity fee and low/free commission. I think there are number of sites and the ING sharebuilder.com comes to mind. Scottrade also one of the cheaper ones that i used. |
Source of income: from dividends vs sale of principal or security | The trend in ETFs is total return: where the ETF automatically reinvests dividends. This philosophy is undoubtedly influenced by that trend. The rich and retired receive nearly all income from interest, dividends, and capital gains; therefore, one who receives income exclusively from dividends and capital gains must f... |
How big of a mortgage can I realistically afford? | My primary concerns. There seems to still be a fair bit of distressed property (forclosures etc) on the market at current, which might well keep prices down for the next year or so that it takes to finish flushing that stuff out of the market. The gist I get from most experts/pundits is that There will be good deals a... |
What if 40% of the remaining 60% Loan To Value (ratio) is not paid, or the borrower wants to take only 60% of the loan? | Let me summarize your question for you: "I do not have the down payment that the lender requires for a mortgage. How can I still acquire the mortgage?" Short answer: Find another lender or find more cash. Don't overly complicate the scenario. The correct answer is that the lender is free to do what they want. They deem... |
Pros/cons of replicating a “fund of funds” with its component funds in my IRA? | In your entire question, the only time you mention that this is an investment inside an IRA is when you say Every quarter, six months, whatever Id have to rebalance my IRA while Vanguard would do this for the fund of funds without me needing to. Within an IRA, there are no tax implications to the rebalancing. But if th... |
How does the process of “assignment” work for in-the-money Options? | I often sell covered calls, and if they are in the money, let the stock go. I am charged the same fee as if I sold online ($9, I use Schwab) which is better than buying back the option if I'm ok to sell the stock. In my case, If the option is slightly in the money, and I see the options are priced well, i.e. I'd do an... |
If the co-signer on my car loan dies, can the family take the car from me like they're threatening to? | My grandmother passed away earlier this year. When I got my car 3 years ago, I did not have good enough credit to do it on my own or have her as a co-signer. We had arranged so that my grandmother was buying the car and I was co-signing. A similar situation was happening and I went to my bank and took out a re-finance... |
What happens to people without any retirement savings? | Well, if you worked in the United States you have social security, and medicare and medicaid in most cases as well. So you have a small amount of income to spend every month to cover your most basic living expenses, as well as your basic medical expenses. At least, that's the idea. In reality, it probably isn't anywh... |
Why do I get a much better price for options with a limit order than the ask price? | I can often get the option at [a] price [between bid and ask] The keyword you use here is quite relevant: often. More realistically, it's going to be sometimes. And that's just how supply and demand should work. The ask is where you know you can buy right away. If you don't wanna buy at ask, you can try and put a hige... |
Investing small amounts at regular intervals while minimizing fees? | I was going to comment on the commission-free ETF answer, which I agree with, but I don't have enough reputation. TD Ameritrade has a list of commission-free ETFs and has no minimum deposit required to open an account. Another idea is to keep gifts in cash until a certain threshold is reached. For instance, $100 for bi... |
Taxation from variations in currency | Here is the technical guidance from the accounting standard FRS 23 (IAS 21) 'The Effects of Changes in Foreign Exchange Rates' which states: Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognit... |
Should my husband's business pay my business? | Is it worth it for me to "charge" him? I can think of two reasons why you might want to charge your husband: |
Is it a good practice to keep salary account and savings account separate? | Well the idea of 'good practice' is subjective so obviously there won't be an objectively correct answer. I suspect that whatever article you read was making this recommendation as a budgeting tool to physically isolate your reserve of cash from your spending account(s) as a means to keep spending in check. This is a c... |
Is an Income Mutual Fund a good alternative to a savings account? | Risk. Volatility. Liquidity. Etc. All exist on a spectrum, these are all comparative measures. To the general question, is a mutual fund a good alternative to a savings account? No, but that doesn't mean it is a bad idea for your to allocate some of your assets in to one right now. Mutual funds, even low volatility s... |
Safe and cheap way to send money from Canada to South America | The catch with any exchange service is that you're going to involve some sort of business and they're going to want to get paid for their service. These services all come with their own exchange rates, fees, waiting periods, or requirements to even use said service. Commonly, pros towards one of those comes at the cost... |
Is there data and proof that a diversified portfolio can generate higher returns than the S&P 500 Index? | Yes, a diversified portfolio can generate greater returns than the S&P 500 by going OUTSIDE it. For instance, small stocks (on average) generate higher returns than the "large caps" found in the S&P 500. So if you own a diversified portfolio of stocks, some of which are smaller (in market cap) than the typical S&P 500 ... |
Primary Residence to Investment Property - Changing PMI Terms | You could be in a bit of a bind. I wouldn't push it any more until you read your loan papers very carefully. Going back to the lender for a refinance after you converted it to a rental (presumably without their knowledge) is risky. I doubt they'd let you refinance anyway, as the house is underwater. If the loan is pe... |
How can I compare the risk of different investing opportunities? | First of all, setting some basics: What is a sound way to measure the risk of each investment in order to compare them with each other ? There is no single way that can be used across all asset classes / risks. Generally speaking, you want to perform both a quantitative and qualitative assessment of risks that you iden... |
Why can't house prices be out of tune with salaries | Indefinitely is easy to answer. Assume that the average house currently costs four times the average salary, and that house prices rise 1% faster than salaries indefinitely. Then in only 1,000 years' time, the average house will cost around 84,000 times the average salary. In 10,000 years, it will be 6.5*10E43 times th... |
What is the future of 401(k) in terms of stability and reliability? | The same author wrote in that article “they have a trillion? Really?” But that’s what happens when ten million dollars compounds at 2% over 200 years. Really? 2% compounded over 200 years produces a return of 52.5X, multiply that by 10M and you have $525 million. The author is off by a factor of nearly 2000 fold. Let... |
Can housing prices rise faster than incomes in the long run? | In a strictly mathematical sense, no. Or rather, it depends what 'long run' means. Say today the home average is $200K, and payment is $900/mo. The $900 today happens to be about 20% of the median US monthly income (which is approximately $54,000/yr). Housing rises 4%/yr, income 3%/yr. In 100 years (long enough?) the ... |
How do I protect myself from a scam if I want to help a relative? | For some reason can't transfer it directly to his account overseas (something to do with security codes, authorized payees and expired cards). Don't become someone's financial intermediary. Find out exactly why he can't transfer the money himself, and then if you want to help him, solve that problem for him. Helping hi... |
Mortgage company withholding insurance proceeds | My question is, how do you rebuild a home, without the money to rebuild the home? I ignorantly thought that was why we paid for insurance. The reason that you have insurance is so as to keep the mortgage lender from losing money. That's why you buy the insurance through the mortgage lender and they get paid. Without ... |
Are lottery tickets ever a wise investment provided the jackpot is large enough? | Firstly, playing the lottery is not investing it is gambling. The odds in gambling are always against you and with the house. Secondly, no one would ever give you a payout of 3 to 1 when the odds are 50:50, unless they were looking to give away money. Even when you place your chips on either red or black on a roulette... |
When a company reports it earnings, when does the SEC EDGAR system show the report online? | IT appears the company you're talking about did not report as you expected them to, which is not unusual for OTC companies because, as Milo stated, they are not well-managed. That being said, reports on EDGAR are available as soon as they're posted. I'm not aware of any lag between when the company uploads their repor... |
What are some examples of unsecured loans | Unsecured loans are loans that have not been “secured” with any kind of collateral. For example, the bank does not have the ability to take your property or automobile if you stop making payments on an unsecured loan. These loans are sometimes referred “signature loans” due to the face your signature on the loan agreem... |
Am I still building a credit score if I use my credit card like a debit card? | I strongly suggest you look at CreditKarma and see how each aspect of what you are doing impacts your score. Here's my take - There's an anti-credit approach that many have which, to me, is over the top. "Zero cards, zero credit" feels to me like one step shy of "off the grid." It's so far to the right that it actually... |
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 ... |
How to keep control of shared expenses inside marriage? | JoeTaxpayer's answer mentions using a third "house" account. In my comment on his answer, I mentioned that you could simply use a bookkeeping account to track this instead of the overhead of an extra real bank account. Here's the detail of what I think will work for you. If you use a tool like gnucash (probably also po... |
What's a reliable way for a non-permanent resident alien in the USA to get an auto loan? | I don't think that they ask you for your citizenship status when you apply in a dealership. At least I don't remember being asked. I know of at least 3 people from my closest circle of friends who are in various immigration statuses (including one on F1) and got an auto loan from a dealership without a problem and with... |
What is a decent rate of return for investing in the markets? | If someone is guaranteeing X%, then clearly you can borrow money for less than X% (otherwise his claim wouldn't be remotely impressive). So why not do that if his 4% is guaranteed? :) Anyway, my answer would be that beating the market as a whole is a "decent" rate of return. I've always used the S&P 500 as a benchmar... |
Does the Fed keeping interest rates low stimulate investment in the stock market and other investments? | Investopedia has this note where you'd want the contrapositive point: The interest rate, commonly bandied about by the media, has a wide and varied impact upon the economy. When it is raised, the general effect is a lessening of the amount of money in circulation, which works to keep inflation low. It also makes ... |
Is there any way to buy a new car directly from Toyota without going through a dealership? | You already got good answers on why you can't buy a Toyota from the factory, but my answer is regarding to the implied second part of your question: how to avoid haggling. I found a good way to avoid the haggling at a car dealership can be simply to not haggle. Go in with a different attitude. The main reason car deale... |
Can I use same stock broker to buy stocks from different stock markets? | Most stock brokers are "full service" brokers. That is to say that you can so the same broker to buy different types of stocks, bonds, options, etc. in different markets. Some brokers are very specialized and won't allow you to do that. But those are probably brokers you don't want to use. |
How can a person with really bad credit history rent decent housing? | Having been recently evicted she is unlikely to find any one willing to rent to her at anything close to reasonable terms. Any landlord that would consider it is likely to require a huge deposit. Her best solution may be a hotel/motel with weekly/monthly rates. It is generally much easier to get someone out of a hote... |
Why is it good to borrow money to buy a house? | You can explore the scenarios in which it is better to rent or to buy using this application: http://demonstrations.wolfram.com/BuyOrRentInvestmentReturnCalculator/ In the possibly unlikely scenario shown below, at the term of the mortgage (20 years) the tenant and the buyer have practically the same return on investme... |
How do I calculate ownership percentage for shared home ownership? | It may clarify your thinking if you look at this as two transactions: I am an Australian so I cannot comment on US tax laws but this is how the Australian Tax Office would view the transaction. By thinking this way you can allocate the risks correctly, Partnership Tenancy Two things should be clear - you will need a go... |
How Do Scammers / Money Launderers Profit From Loans To Victims | If they have your account numbers (which are necessary for direct deposits) they could possibly initiate ACH withdrawals from your accounts too (requires some setup but they may have accomplices). Note that even if you didn't have money there, depending on the local bank rules you may be still on the hook for overdraft... |
Credit and Debit | It took me a while to understand the concept, so I'll break it down as best as I can. There are three parts to the accounting equation: Assets = Liabilities + Owner's Equity We'll look at this in two ways 1. As a business owner you invest (say) 10,000 USD into your bank. The entry would be: Debit: Assets: Cash for 1... |
Landlord Tax Relief Changes UK | This article on the landlord website Property118.com shows a simple example, demonstrating that a private landlord with a mortgage could see a huge jump in their effective tax rate (in this case, from 18% to 67% by 2020), while a corporate landlord will see no change at all. There's also a link in that article to a det... |
Bi-weekly payment option | One point that I don't see covered in the other answers yet: How does this affect the months that have 5 weeks. Do we actually lose two weeks a year? I get paid every two weeks, and pay day is always a Friday. Some months, I get paid 3 times - which is always great. If you live within your means, it's like an extra p... |
What's the general principle behind choosing saving vs. paying off debt? | Think of yourself as a business with two accounts, "cash" and "net worth". Your goal is to make money. "Cash" is what you need to meet your obligations. You need to pay your rent/mortgage, utilities, buy food, pay for transportation, service debt, etc. If you make $100 a month, and your obligations are $90, you're clea... |
Is there strategy to qualify stock options with near expiry date for long term capital gain tax? | There some specific circumstances when you would have a long-term gain. Option 1: If you meet all of these conditions: Then you've got a long-term gain on the stock. The premium on the option gets rolled into the capital gain on the stock and is not taxed separately. From the IRS: If a call you write is exercised an... |
In what state should I register my web-based LLC? | In GA, LLC fees are $50 a year. Incorporating is a one time $100 fee. This information is current as of September 2013. |
Why do bank statements end on *SUCH* wildly inconsistent days of the month? | They need to spread the work for all customers over the whole month, and they don't work on weekends. Combine the two, and the rule becomes clear - if months have minimum of N working days, 1/N of all customers gets set on each day. You seem to be on day 5: If the month starts with a Monday, the fifth working day is th... |
Travel expenses for an out-of-state rental | While the question is very localized, I'll answer about the general principle. My main question is with how far away it is (over 1000 miles), how do I quantify the travel expenses? Generally, "necessary and ordinary" expenses are deductible. This is true for business and also true for rentals. But what is necessary a... |
Is investing in an ETF generally your best option after establishing a Roth IRA? | ETFs are a type of investment, not a specific choice. In other words, there are good ETFs and bad. What you see is the general statement that ETFs are preferable to most mutual funds, if only for the fact that they are low cost. An index ETF such as SPY (which reflects the S&P 500 index) has a .09% annual expense, vs a... |
Can capital gains be used to fund an IRA with tax advantages? | IRA contribution must be from your earned income in the sense that you cannot contribute to IRA more than you have in earned income. If all your income is capital gains - you cannot contribute anything to IRA. Once you're within the income limit restriction, it doesn't matter what other money you have, because as you s... |
Is the amount taxable if my grandfather sells agricultural land | As your is a very specific case, please get an advice of CA. It should not cost you much and make it easier. The sale of agriculture land is taxable in certain conditions and exempt from tax in other cases. Sale of agricultural land is subject to capital gains tax. But there are certain exemptions under Section 54B, su... |
Does payment in goods count as “income” for tax purposes? | The IRS defines income quite specifically. On the topic What is Taxable and Nontaxable Income, they note: You can receive income in the form of money, property, or services. This section discusses many kinds of income that are taxable or nontaxable. It includes discussions on employee wages and fringe benefits, and inc... |
Where to deduct gambling losses? | 1: Gambling losses not in excess of gambling winnings can be deducted on Schedule A, line 28. See Pub 17 (p 201). Line 28 catches lots of deductions, and gambling losses are one of them. See Schedule A instructions. 2: If the Mississippi state tax withheld was an income tax (which I assume it was), then it goes on S... |
Why is the bid-ask spread considered a cost? | As an aside, on most securities with a spread of the minimum tick, there would be no bid ask spread if so-called "locked markets", where the price of the best bid on one exchange is equal to the price of the best ask on another, were permitted. It is currently forbidden for a security to have posted orders having the s... |
Malaysian real estate: How to know if the market is overheated or in a bubble? | I think the only sure way to know if there is a bubble is to wait till it bursts and buy then. If it would be easy to tell there wouldn't be any bubbles. |
What percentage of my portfolio should be in individual stocks? | I find the question interesting, but it's beyond an intelligent answer. Say what you will about Jim Cramer, his advice to spend "an hour per month on each stock" you own appears good to me. But it also limits the number of stocks you can own. Given that most of us have day jobs in other fields, you need to decide how ... |
What is the best use of “spare” money? | nan |
Should I use Mint.com? Is it secure / trusted? [duplicate] | Yes, there is such possibility. Also, there's a possibility people made your computer, your operation system, your browser, etc. put there some code there that would intercept your communications and steal your money. So could bank clerks (and unlike all other examples, this really happened in real world, numerous time... |
Can I be building a house with the bank forever? | No, you can't do this indefinitely. For one, you can't just take money out as home equity with no strings attached. The cash out is done as a loan (often a HELOC) or second mortgage and you have to make payments. The lender will always make sure you are able to afford the payments. At some point, you won't qualify for ... |
How can a person with really bad credit history rent decent housing? | I don't think you've mentioned which State you're in. Here in Ontario, a person who is financially incapable can have their financial responsibility and authority removed, and assigned to a trustee. The trustee might be a responsible next of kin (as her ex, you would appear unsuitable: that being a potential conflict o... |
Debt collector has wrong person and is contacting my employer | Debt collectors are just doing their job as many people want to evade payment by not responding and skipping their debts, and they talk tough to force people found to make their obligated payments based on what they can afford and that’s all. I’m in the UK, but I assume the process is similar. Before I begin, I worke... |
Stock market order execution | When you are placing an order with an online broker you should already know what exchange or exchanges that stock trades on. For example if you look up under Yahoo Finance: Notice how News Corp is traded both on the ASX and the Nasdaq. The difference is the shares traded on the ASX have the extension .AX, that is how y... |
What is a mutual fund? | The simple answer is: YES, the JP Morgan emerging markets equity fund is a mutual fund. A mutual fund is a pooling of money from investors to invest in stocks and bonds. Investors in mutual funds arrive there in different ways. Some get there via their company 401K, others by an IRA, still others as a taxable account. ... |
Definition of gross income (Arizona state tax filing requirements) | I would suggest reading through page 1 of the Arizona Nonresident form instructions at the web address below: https://www.azdor.gov/Portals/0/ADOR-forms/TY2015/10100/10177_inst.pdf To quote: "You are subject to Arizona income tax on all income derived from Arizona sources. If you are in this state for a temporary or tr... |
Why did I lose 2 cents more than the difference in the stock prices on my Robinhood trade? | Free, huh? From their Commission and Fee Schedule: So if you literally bought two shares, then the SEC added one penny in fees and FINRA added one penny as a "Trading Activity Fee" Note that there are several other fees on their schedule that may not apply to you. If you had bought 100 shares instead, your total fees ... |
Mailed in One-time Payment by Check | I do know that a blank check has all the information they need for the electronic transfer. They probably add it as a customer service to streamline future payments. Though I don't think automatically adding it makes good business sense. It is possible that the form used to submit the check included a line to added the... |
Do I have to explicitly apply for claim of tax rebate u/s 87A in India | If my salary slip says that I will be paying x INR tax this financial year. Then how much minimum investment I need to do to avoid any tax? This rebate is not directly linked to investments. If your total Gross is less than Rs 5 lacs, from the total tax computed, you can claim a rebate of upto Rs 5000. Does salary slip... |
effect of bond issue on income statement | No, it would not show up on the income statement as it isn't income. It would show up in the cash flow statement as a result of financing activities. |
Am I “cheating the system” by opening up a tiny account with a credit union and then immediately applying for a huge loan? | Credit unions require you to open an account because of their history. A credit union is just that: a union. Only instead of a union of workers collectively bargaining for better pay or worker's comp, they are lending each other money. They are chartered to offer their services to members of the union, rather than the ... |
Is it better for a public company to increase its dividends, or institute a share buyback? | I feel dividends are better for shareholders. The idea behind buy backs is that future profits are split between fewer shares, thereby increasing the value (not necessarily price -- that's a market function) of the remaining shares. This presupposes that the company then retires the shares it repurchases. But quite oft... |
Why is the breakdown of a loan repayment into principal and interest of any importance? | It's important because it shows that the amount you owe does not decrease linearly with each payment, and you gain equity as a correspondingly slower rate at the beginning of the loan and faster at the end. This has to be figured in when considering refinancing, or when you sell the place and pay off the mortgage. It a... |
How much accounting knowledge is needed to read financial statements of publicly traded companies? | I'm a senior majoring in accounting and management information systems. Here is a question I answered a while back about financial statements and employee retention. In the answer that I provided at the bottom it was to assess a company's ability to pay by use of ratios. Likewise, similar accounting methods need to be ... |
Why are some long term investors so concerned about their entry price? | If you think of it in terms of trying to get an annual return on your investment over the long haul, you can do a simple net present value analysis to decide your buy price. If you're playing conservative with the investments and taking safety over returns, you will still have some kind of expectation of that return w... |
Calculate Future Value with Recurring Deposits | Using the following values: The formula for the future value of an annuity due is d*(((1 + i)^t - 1)/i)*(1 + i) See Calculating The Present And Future Value Of Annuities In an annuity due, a deposit is made at the beginning of a period and the interest is received at the end of the period. This is in contrast to an or... |
How much percent of my salary should I use to invest in company stock? | What most respondents are forgetting, is when a company allows its employees to purchase its shares at a discount with their salary, the employee is usually required to hold the stock for a number of years before they can sell them. The reason the company is allowing or promoting its employees to purchase its shares at... |
Can I locate the name of an account holder by the account number and sort code? (U.K.) | No, the best you can do is (probably) determine the bank, from the sort code. using an online checker such as this one from the UK payments industry trade association. Revealing the name of an account holder is something the bank would typically require a warrant for, I'd expect, or whatever is covered in the account T... |
Where to Park Proceeds from House Sale for 2-5 Years? | Your objectives are contradictory and/or not possible. Eliminating the non-taxable objective: You could divide the $100K in 5 increments, making a "CD ladder" $25K in 3mo CD (or savings a/c) $25K in 6 mo CD $25K in 9mo CD $25K in 1 yr CD or similar structure (6mo also works well) Every maturing CD you are able to acces... |
Does investing in a company support it? | As said by others, buying shares of a company will not support it directly. But let's think about two example companies: Company A, which has 90 % stocks owned by supporters, and Company B, which has only 1 % of stocks owned by supporters. Both companies release bad news, for example profits have decreased. In Company ... |
What's The Best Way To Pay Off My Collections? | If you can pay it then there's no need to involve a credit counselor. After all, their main role when you use them is to negotiate payments with creditors so you can pay off your debts. In this case you have the funds to pay, so why make it any more complicated than it needs to be? To be honest, a 597 score is going ... |
Balance Sheets: How a company can save money for further investments | A company CAN hold on to money. This is called retained earnings. Not all money is due back to the owners (i.e. stockholders), but only the amount that the board of directors chooses to pay back in the form of dividends. There is a lot more detail around this, but this is the simple answer to your question. |
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 to maximize small business 401k contribution? | I would hire an accountant to help set this up, given the sums of money involved. $53,000 would be the minimum amount of compensation needed to maximize the 401k. The total limit of contributions is the lesser of: 100% of the participant's compensation, or $53,000 ($59,000 including catch-up contributions) for 2015 an... |
How can I help others plan their finances, without being a “conventional” financial planner? | You need a license/registration to be a "conventional" financial planner. But as long as your work is limited to budgets, and cash flow analysis, it may be more like accounting. In your shoes, I would consult the local CPA association about what you need (if anything) to do what you're doing. |
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