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Is it ever a good idea to close credit cards? | The only good reason I find to close cards are: it's a card with an annual fee that you don't need. No point bleeding money each year. churning rewards. Open card to get bonus promotion such as "spend $500 in first 3 months, get $200 bonus". Close card and open a year later to do that same bonus again if available. ... |
Money limit to pay tax for Patreon | If you are in the US, you legally must file taxes on any income whatsoever. How much you will pay in taxes, if any, will depend on your total taxable income. Now, for small transactions, the payments are often not reported to the IRS so some people do not file or pay. The threshold at which they payer is required to ... |
Why buy insurance? | There are many situations where injecting a certain amount of cash at the right time may reap rewards far in excess of the value of the cash injected. For example, if someone who needs a car to get to work gets in a wreck and that person does not have ready money to make it driveable may have no choice but to secure ve... |
Why would we need a “stop-limit order” for selling? | If one wants to have a bound on the loss percentages that are acceptable, this is would be a way to enforce that. For example, suppose someone wants to have a 5% stop-loss but doesn't want this to be worse than 10% as if the stock goes down more than 10% then the sell shouldn't happen. Thus, if the stock opened in a ga... |
If something is coming into my account will it be debit or credit in my account? | It sounds like you're mixing a simple checkbook register with double-entry bookkeeping. Do you need a double-entry level of rigor? Otherwise, why not have two columns, one for income (like a paycheck) and one for expenses (like paying a cable bill)? Then add up both columns and then take the difference of the sums to ... |
Why do people build a stock portfolio if one could get a higher return from bank interest than dividend per annum? | Stock prices aren't constant; they rise and fall. The overall return on a share is the combination of the dividends paid plus the change in value of the share. Some companies pay no dividend at all yet investors still buy their shares because they believe the share price will rise. People invest in stocks because th... |
What percent of a company are you buying when you purchase stock? | What percent of a company are you buying when you purchase stock? The percent of a company represented by a single share can be calculated by percent = 1/number_of_shares*100% Apple comprises 5,250,000,000 shares, so one share makes up about 1.9e-8% of a company, or 0.000000019% of Apple. |
Who owns historical valuations about equity such as stocks and index funds? | I expect that data may be copyright. Data that's published (e.g. on a newsfeed or web site) is subject to terms of use. Standard & Poor's web site says, about the Shiller indexes, Who do I contact at S&P to license my use of these indices? Questions regarding licensing the S&P/Case-Shiller Home Price Indices ... |
Homeowners: How can you protect yourself from a financial worst-case scenario? | Think about your priorities in life. Everybody is a little different. In my case I have a wife and child, so these are priorities for me, and you might have your own depending on your story. So if I lost my job, and I have no more money coming in (unemployment insurance runs out, savings depleted) then the bank can h... |
I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment? | The market doesn't know or care why you bought. What you are asking is effectively 'this share went down in price after I bought. Is there anything I can do?'. Consider what you are asking for - if there were anything you could do, then no one would ever make a loss. How do you suppose that would work? |
How does the value of an asset (valued in two different currencies) change when the exchange rate changes? | The value of the asset doesn't change just because of the exchange rate change. If a thing (valued in USD) costs USD $1 and USD $1 = CAN $1 (so the thing is also valued CAN $1) today and tomorrow CAN $1 worth USD $0.5 - the thing will continue being worth USD $1. If the thing is valued in CAN $, after the exchange rate... |
How much cash on hand should one have? | There are two or three issues here. One is, how quickly can you get cash out of your investments? If you had an unexpected expense, if you suddenly needed more cash than you have on hand, how long would it take to get money out of your Scott Trade account or wherever it is? I have a TD Ameritrade account which is prett... |
Investment options | You are only 33, with plenty of time to generate long-term returns. A correction is an opportunity for you to buy more at a lower price. My advice: invest about half in an index fund (S&P 500, for example) and half in a target fund (pick your retirement age), keep saving regularly, and in 30 years you'll be very happy ... |
IRA contributions in a bear (bad) market: Should I build up cash savings instead? | The first two answers to this are very good, but I feel like there are a couple of points they left out that were a little too long for comments. First off take a look at the expense percentage,the load fees, and the average turnover ratio for the funds in your retirement account (assuming they are mutual funds). Havin... |
Online tutorials for calculating DCF (Discounted Cash Flow)? | Check out Professor Damodaran's website: http://pages.stern.nyu.edu/~adamodar/ . Tons of good stuff there to get you started. If you want more depth, he's written what is widely considered the bible on the subject of valuation: "Investment Valuation". DCF is very well suited to stock analysis. One doesn't need to know,... |
Is there a dollar amount that, when adding Massachusetts Sales Tax, precisely equals $200? | Yes, it's a simple calculation. (x+0.0625x)=200 or x=200/1.0625 = $188.24 Technically $188.24 plus tax comes to $200.01. I would just eat the extra $0.01. |
Process for dissolving a recently-opened Colorado LLC? | Forms for the Colorado LLCs are online. You can find the link to the dissolution form here, and instructions here. IRS instructions are here. That's what they want: To close your business account, send us a letter that includes the complete legal name of the entity, the EIN, the business address and the reason you ... |
Why don't banks print their own paper money / bank notes? | Who says they don't? In the United Kingdom the Bank of England and the Bank of Scotland print the money. In some other countries (like Hong Kong, Israel, and the US) commercial banks were issuing the currency at some point of time, but now the governments do that. The problem with commercial banks issuing currency is t... |
Is there a tax deduction for renting office space in service of employer? | I disagree with BrenBran, I don't think this is qualified as unreimbursed employee expense. For it to qualify, it has to be ordinary and necessary, and specifically - necessary for your employer. This is not the case for you, as there's no such necessity. From employer's perspective, you can work from your home just as... |
Why naked call writing is risky compare to Covered call? | If the buyer exercises your option, you will have to give him the stock. If you already own the stock, the worst that can happen is you have to give him your stock, thus losing the money you spend to buy it. So the most you can lose is what you already spent to buy the stock (minus the price the buyer paid for your o... |
How to sell option with no volume | Volume @ 0 doesn't mean that there are no buyers and sellers, it just means that there hasn't been any trades done yet. What you need to look for are the bids and offers (for selling and buying, respectively). For further expiration and NTM or IT options there will almost always be a bid and an offer (but it may be ver... |
How do brokerage firms make money? | Regarding "Interest on idle cash", brokerage firms must maintain a segregated account on the brokerage firm's books to make sure that the client's money and the firm's money is not intermingled, and clients funds are not used for operational purposes. Source. Thus, brokerage firms do not earn interest on cash that i... |
I'm upside down on my car loan and need a different car, what can I do? | For the future: NEVER buy a car based on the payment. When dealers start negotiating, they always try to have you focus on the monthly payment. This allows them to change the numbers for your trade, the price they are selling the car for, etc so that they maximize the amount of money they can get. To combat this you... |
Should I make more conservative investments in my company 401(K) if I'm going to leave the job in a couple of years? | It doesn't make a difference if you will be keeping it in the 401K or transferring it to an IRA, it is still retirement money that you plan on investing for decades. Pre-Enron many employees invested significant amounts of their retirement funds with the employer. One of the risks was that if a single stock was down a... |
What is the term for the quantity (high price minus low price) for a stock? | Just guessing here… How about Daily Median price? StockCharts provides a similar value they call VWAP. Which stands for Volume-Weighted Average Price. I believe it is a better 'average' for the day (click on link). |
What one bit of financial advice do you wish you could've given yourself five years ago? | Get an advanced degree. This should increase your earning power. Also learn how to use a computer, this should also tend to increase your earning power. |
Consolidate my debt? Higher APR, but what does that actually mean? | There's a cliche, "out of the frying pan and into the fire". I've never had the occasion to use it till now. I understand some people find they have a dozen cards and struggle to keep organized. An extra percent or two seems worth the feeling of just one payment to make. In your case, 3 checks (or online payments) per... |
Do financial advisers in Canada who work at the bank, make investing decisions not in your best interest? | The way this works, as I understand it, is that financial advisers come in two kinds. Some are free to recommend you any financial products they think fit, but many are restricted in what they can recommend. Most advisers who work for finance companies are the second kind, and will only offer you products that their co... |
Online tools for monitoring my portfolio gains/losses in real time? | This functionality is widely available, not only on brokerage sites, but also financial management and even financial information sites. For instance, two of the latter are Google Finance and Yahoo Finance. If you are logged in, they let you create "portfolios" listing your stocks and, optionally, the size of your ho... |
What factors go into choosing residency? | A couple of thoughts. Tax benefits are the usual reasons to decide on one residency or another. International tax law is complex, and it's probably best to consult a professional. Certainly without knowing which the other country is I would not want to hazard a guess. If he is really not going to be taxed on the other ... |
Are wash sale rules different for stocks and ETFs / Mutual Funds? | The IRS rules are actually the same. 26 U.S. Code § 1091 - Loss from wash sales of stock or securities In the case of any loss claimed to have been sustained from any sale or other disposition of shares of stock or securities where it appears that, within a period beginning 30 days before the date of such sale ... |
Company is late in paying my corporate credit card statement - will it hurt my credit? | After doing some investigating, my employers contract with the credit card company has a clause that basically specifies that despite my name being on the credit card, and bills being sent to me, all liability is on the company. Additionally, the employer reserves the right to garnish wages in the event of a balance on... |
What are the economic benefits of owning a home in the United States? | It is almost a sure thing that the housing market will crash again hugely.For this reason I prefer to own several houses that way when it does no one can ask for their money back and leave me homeless. Current economics suggest a fall of between 40-60% from 2011 prices meaning that if you have bought a house in the las... |
Specifically when do options expire? | Equity options, at least those traded in the American exchanges, actually expire the Saturday after the 3rd Friday of the month. However, the choice to trade or exercise the options must be specified by the 3rd Friday. This is outlined by the CBOE, who oversees the exchange of equity options. Their FAQ regarding opti... |
Why not just invest in the market? | Let me start by giving you a snippet of a report that will floor you. Beat the market? Investors lag the market by so much that many call the industry a scam. This is the 2015 year end data from a report titled Quantitive Analysis of Investor Behavior by a firm, Dalbar. It boggles the mind that the disparity could be... |
Reducing taxable income in US in December | Depending on the size of the donation, you may be able to reduce taxes further by donating appreciated assets, such as stock or fund shares that have gone up a lot. That lets you dodge the capital gains tax on redeeming the shares, and if you're donating to a tax-exempt organization they don't have to pay that tax eith... |
Can GoogleFinance access total return data? | At this time, Google Finance doesn't support historical return or dividend data, only share prices. The attributes for mutual funds such as return52 are only available as real-time data, not historical. Yahoo also does not appear to offer market return data including dividends. For example, the S&P 500 index does no... |
Would every FX currency pair or public stock that is under the 30 level using Relative Strength Index (RSI) be an undervalued pair? | No, and using a 37 year old formula in finance that is as simple as: should make it obvious technical analysis is more of a game for retail traders than investment advice. When it comes to currencies, there are a myriad of macroeconomic occurrences that do not follow a predictable timescale. Using indicators like RSI o... |
Does keeping 'long-term' safety net in bonds make sense? | The answer to your question depends very much on your definition of "long-term". Because let's make something clear: an investment horizon of three to six months is not long term. And you need to consider the length of time from when an "emergency" develops until you will need to tap into the money. Emergencies almost ... |
Legal Financing | Find a lawyer or law firm who wants to represent you and talk to them. |
Should I open a credit card when I turn 18 just to start a credit score? | Yes, as long as you are responsible with the payments and treat it as a cash substitute, and not a loan. I waited until I was 21 to apply for my first credit card, which gave me a later start to my credit history. That led to an embarrassing credit rejection when I went to buy some furniture after I graduated college. ... |
Does an individual share of a stock have some kind of unique identifier? | I agree with the answer by @Michael that this number doesn't exist. It's hard to see what use it would have and it would be difficult to track. I'm writing a separate answer because I also disagree with the premise of your question: Individual shares of stock have never to my knowledge had such a number. Your commen... |
In US, is it a good idea to hire a tax consultant for doing taxes? | There are few things going on here: My advice would be: with 75k income and a regular pay check there isn't a whole let you can do to adjust your tax burden. It's unlikely that any adviser will save enough money to warrant professional advice and the associated cost. Use off the shelf software for tax return and tax pl... |
How do I figure out the next step in deciding to sell my home to the market or to a uniquely interested buyer? | We considered similar big renovations when putting our house on the market. The answer turns out to be pretty simple; unless you do renovation-type work as your day job, or have really good friends in the residential contracting business, sell as-is. You will virtually never get back the full price of bringing in a gen... |
In a competitive market, why is movie theater popcorn expensive? | In the theater, it's a person who can afford to buy expensive pop corn, cause he can buy the expensive movie ticket too... Also sitting at one place will make him feel hungry and buy something to eat... So maximum chances are that in the theater, that guy is your potential customer... Otherwise if the popcorn seller is... |
How does the yield on my investments stack up against other investors? | From an article I wrote a while back: “Dalbar Inc., a Boston-based financial services research firm, has been measuring the effects of investors’ decisions to buy, sell, and switch into and out of mutual funds since 1984. The key finding always has been that the average investor earns significantly less than the return... |
What does it mean when someone says “FTSE closed at xxx today” | FTSE is an index catering to the London stock exchange. It is a Capitalization-Weighted Index of 100 companies listed on the London Stock Exchange with the highest market capitalization . When somebody says FTSE closed at 6440, it basically means at the end of the day, the index calculated using the day end market ca... |
Can I deduct the cost of software and/or computer that I need to do my job? | Yes, this is a miscellaneous itemized deduction. https://www.irs.gov/publications/p529/ar02.html For this to impact your taxes, you have to be itemizing deductions (have total deductions greater than standard deduction), and the total of all miscellaneous deductions needs to exceed the "2% floor" described in the IRS l... |
Trustable, official sources on holdings, purchases and sales by finance academics/professionals? | You won't be able to know the trading activity in a timely, actionable method in most cases. The exception is if the investor (individual, fund, holding company, non-profit foundation, etc) is a large shareholder of a specific company and therefore required to file their intentions to buy or sell with the SEC. The thre... |
What's the difference between Term and Whole Life insurance? | Whole life insurance accumulates a cash value on a pre-tax basis. With a paid-up policy, you make payments until a particular age (usually 65 or 70), at which point you are insured for the rest of your life or a very old age like 120. You can also access this pool of money via loans while you are still alive, but you r... |
Buy index mutual fund or build my own? | Go with a Vanguard ETF. I had a lengthy discussion with a successful broker who runs a firm in Chicago. He boiled all of finance down to Vanguard ETF and start saving with a roth IRA. 20 years of psychology research shows that there's a .01 correlation (that's 1/100 of 1%) of stock/mutual fund performance to predictio... |
What can I replace Microsoft Money with, now that MS has abandoned it? | Check the Financial section in this list of Open Source Software |
Which state do saving interests come from? | Most (if not all states) in the US are only interested in source income. If you worked in that state they want to tax it. Many states have reciprocity agreements with neighboring states to exempt income earned when a person works in lets say Virginia, but lives in a state that touches Virginia. Most states don't consi... |
Trading on exchanges or via brokerage companies? | I was wondering what relations are between brokerage companies and exchanges? Are brokers representing investors to trade on exchanges? Yes...but a broker may also buy and sell stocks for his own account. This is called broker-delaer firm. For individual investors, what are some cons and pros of trading on the exchange... |
Investing / Options idiot - how can I get out of this position? | Your broker should make you whole by adjusting the quantity of the underlying (see: http://www.schaeffersresearch.com/education/options-basics/key-option-concepts/dividends-stock-splits-and-other-option-contract-adjustments) but I would check with them that this will happen. You will then have an option on 4 times the ... |
Why do people buy stocks that pay no dividend? | You can think of the situation as a kind of Nash equilibrium. If "the market" values stock based on the value of the company, then from an individual point of view it makes sense to value stock the same way. As an illustration, imagine that stock prices were associated with the amount of precipitation at the company's... |
Will Short Sale Prevent Me From Getting VA Home Loan Later? | From MyFICO: A foreclosure remains on your credit report for 7 years, but its impact to your FICO® score will lessen over time. While a foreclosure is considered a very negative event by your FICO score, it's a common misconception that it will ruin your score for a very long time. In fact, if you keep all of your othe... |
Why do passive ETFs require so much trading (and incur costs)? | Now, if I'm not mistaken, tracking a value-weighted index is extremely easy - just buy the shares in the exact amount they are in the index and wait. Yes in theory. In practise this is difficult. Most funds that track S&P do it on sample basis. This is to maintain the fund size. Although I don't have / know the exact n... |
Why is stock dilution legal? | For new shares to be successfully sold, the price has to be below market price. If you currently own shares of that company, you should always get an option to buy those newly sold shares at that discounted price. The number of options depends on the relative number of shares you hold. Lets say you own 100 out of 1000 ... |
Is ScholarShare a legitimate entity for a 529 plan in California? | To mhoran's point, yes, the company, TIAA-CREF is valid. I'd focus on the expenses - Their S&P fund (Index US Large Cap Equity Portfolio) shows a .11% total fee. You might choose this one, or others, but this number looks great to me. We are in an investment world where fees are still often over 1%, and we are condit... |
CD interest rate US vs abroad, is there a catch? | I think your approach of looking exclusively at USD deposits is a prudent one. Here are my responses to your questions. 1) It is highly unlikely that a USD deposit abroad be converted to local currency upon withdrawal. The reason for offering a deposit in a particular currency in the first place is that the bank wants ... |
Boyfriend is coowner of a house with his sister, he wants to sell but she doesn't | Dear "benevolent" sister, The mortgage, utilities, and taxes for this home can no longer be paid and the bank will repossess it within the coming months. Thank you for your time |
Auto insurance on new car | $600 a month is high, but may be the best you can do. When I moved from UK to Canada my first insurance quote was $3000 a year, but that was 20 years ago and I was older than 27. The rates go down substantially after you have had a local license for a few years. Best tips for minimising this: |
Does a stock's price represent current liquidation of all shares? | What if everyone decided to sell all the shares at a given moment, let's say when the stock is trading at $40? I imagine supply would outweigh demand and the stock would fall. Yes this is the case. Every large "Sell" order results in price going down and every large "Buy" order results in price going up. Hence typicall... |
Why buy a vertical spread if I could instead buy a naked call? | Late to the party, but it's just improving your cost basis in a defined risk trade even further. If you want to put up less risk capital but want to test the waters, this can be one way to do it. Another could be buying cheap OTM butterflies or financing a further otm option with the basis reduction from the debit spre... |
When is the best time to put a large amount of assets in the stock market? | It's a tricky question w/out more context. If your only options are between stock/funds and letting it sit (i.e. in a saving or CD), I'd have to say option one is the way to go (but that's based on my situation, and you did ask "if you .."). However, I think the true answer is "it depends." It depends on your risk tol... |
A debt collector will not allow me to pay a debt, what steps should I take? | This doesn't seem to explain the odd behavior of the collector, but I wanted to point out that the debt collector might not actually own the debt. If this is the case then your creditor is still the original institution, and the collector may or may not be allowed to actually collect. Contact the original creditor and ... |
Is it advisable to go for an auto loan if I can make the full payment for a new car? | There needs to be more numbers with your choices, without those any answer is purely speculation. Assuming that India is much like the US, you are almost always better to go with a company leased car. That is if you are not responsible for the lease if your employment ends with the company. Here in the US companies ty... |
company market capitalization to total (annual) stock market capitalization | This depends. Quite a few stock exchanges / country report total capitalisation in terms of free float. I.E total shares that can be traded, ignoring the promoters shares. The market cap reported by company takes all shares. |
Do company-provided meals need to be claimed on my taxes? | I believe there is an overtime meal allowance. That is, if an employee works "overtime" (defined as 7:00 p.m. for a 9:00 start, or ten-plus hours after the shift starts), the company can provide a non-taxable meal free of charge, or give a "reasonable" allowance ($15-$20) that must be spent outside on a meal (no drinks... |
What can I replace Microsoft Money with, now that MS has abandoned it? | Uh, Quicken is virtually identical to MS Money. If you liked money and don't want to change, use that. |
What can I do with “stale” checks? Can I deposit/cash them? | Find smaller payments he can make. Maybe a % of each client he takes payment from. Consult with a lawyer or google buisness contract elements and find fill them out and see what he can do. If the checks are no good bouncing them isn't going to help anything. Nor is getting a judgment from a small claims court. He can ... |
Does an employee have the right to pay the federal and state taxes themselves instead of having employer doing it? | You can file a revised W-4 with your employer claiming more allowances than you do now. More allowances means less Federal tax and (if applicable and likely with a separate form) less state tax. This doesn't affect social security and Medicare with holding, though. That being said, US taxes are on a pay-as-you-go syst... |
Is this mortgage advice good, or is it hooey? | I think the idea here is that because of the way mortgages are amortized, you can drop additional principal payments in the early years of the mortgage and significantly lower the overall interest expense over the life of the loan. A HELOC accrues interest like a credit card, so if you make a large principal payment us... |
Gap in domestic Health Insurance coverage, expect higher premiums? | I bought Health Insurance for myself after a period without it, and my premiums were not terrible. I was a 27 year old man, living in California, no preexisting conditions, and I paid approximately 90$ a month. This was for a standard Health Insurance plan. However, when I moved back to NY a little while later, insura... |
Best way to invest money as a 22 year old? | First off, monozok is right, at the end of the day, you should not accept what anyone says to do without your money - take their suggestions as directions to research and decide for yourself. I also do not think what you have is too little to invest, but that depends on how liquid you need to be. Often in order to ma... |
When can you use existing real estate as collateral to buy more? | You put 20% down and already owe the 80% or $80k, so you don't have the ability to borrow $100k or even $20k for that matter. As LittleAdv stated, the banks have really tightened their lending criteria. Borrowing out more than 80% carries a high premium if you can get it at all. In your example, you want the property ... |
What can I do with a physical stock certificate for a now-mutual company? | I found the following on a stock to mutual conversion for insurance firms for Ohio. Pulling from that link, Any domestic stock life insurance corporation, incorporated under a general law, may become a mutual life insurance corporation, and to that end may carry out a plan for the acquisition of shares of its capital ... |
Saving for retirement without employer sponsored plan | I'm looking for ways to geared to save for retirement, not general investment. Many mutual fund companies offer a range of target retirement funds for different retirement dates (usually in increments of 5 years). These are funds of funds, that is, a Target 2040 Fund, say, will be invested in five or six different stoc... |
How can I get the car refinanced under my name if my girlfriend signed for the loan? | The best solution is to "buy" the car and get your own loan (like @ChrisInEdmonton answered). That being said, my credit union let me add my spouse to a title while I still had a loan for a title filing fee. You may ask the bank that holds the title if they have a provision for adding someone to the title without cha... |
Filing 1040-NR when I have been outside the US the entire year? | Yes, you can still file a 1040nr. You are a nonresident alien and were: engaged in a trade or business in the United States Normally, assuming your withholding was correct, you would get a minimal amount back. Income earned in the US is definitely Effectively Connected Income and is taxed at the graduated rates that... |
Is there any reason not to buy points when re-financing with intent not to sell for a while? | In such a situation, is there any reason, financial or not, to NOT pay as many points as mortgage seller allows? I can think of a few reasons not to buy points, in the scenario you described: If interest rates decrease you could be better off refinancing to a lower rate than buying points now. If buying points reduce... |
Tracking down stocks I own | There's two possibilities. One is that the broker declared your account abandoned and turned over your account to the state. If that happened, it should turn up here: http://missingmoney.com The second is that the broker is still holding your stock. I'd start by contacting the company's transfer agent. |
Are there good investment options to pay off student loans? | Paying off your student loan is an investment, and a completely risk-free one. Every payment of your loan is a purchase of debt at the interest rate of the loan. It would be extremely unusual to be able to find a CD, bond or other low-risk play at a better rate. Any investment in a risky asset such as stocks is jus... |
Fringe Benefits (Lodging) for single member S-Corp | If you use "a room or other separately identifiable space" within your apartment exclusively for your business, then you might be able to recoup a fraction of your rent for that. Check the rules for home office at the IRS and adopt a consistent and well-documented approach. (I would pay your full rent out of your perso... |
If early exercise is a bad idea, why American option is more expensive than European [duplicate] | There are a few situations in which it may be advantageous to exercise early. Wikipedia actually has a good explanation: Option Style, Difference in value To account for the American's higher value there must be some situations in which it is optimal to exercise the American option before the expiration date. This ... |
22-year-old inherited 30k from 529 payout - what is the best way to invest? | Look through the related questions. Make sure you fund the max your tax advantaged retirement funds will take this year. Use the 30k to backstop any shortfalls. Invest the rest in a brokerage account. In and out of your tax advantaged accounts, try to invest in index funds. Your feeling that paying someone to manag... |
Not paying cash for a house | The common opinion is an oversimplification at best. The problem with buying a house using cash is that it may leave you cash-poor, forcing you to take out a home equity loan at some point... which may be at a higher rate than the mortgage would have been. On the other hand, knowing that you have no obligation to a len... |
Won an incentive trip in 2013, left employer in 2014, received an earning statement with no cash but a huge tangible bonus listed | I had experience working for a company that manufactures stuff and giving products to the employees. The condition was to stay employed for a year after the gift for the company to cover its cost (I think they imputed the tax), otherwise they'd add the cost to the last paycheck (which they did when I left). But they we... |
Advice for college student: Should I hire a financial adviser or just invest in index funds? | Exactly what you do with the money depends on various personal choices you'll have to make for yourself. Investing your money in Vanguard index funds such as the ones you mentioned is certainly one smart move. However, I think you're quite right to be suspicious of an advisor with a 1% fee. In many cases, such advis... |
Why do car rental companies prefer/require credit over debit cards? | I have looked at the conditions of a car rental company, and I believe it provides the answers: Upon pick up of your vehicle, you must present a valid credit card (*) used to make the booking and which must be in the driver´s name. If you do not have a valid credit card we will accept your debit card when you pic... |
Buy securities at another stock exchange | Really arbitrage means that, currency risk aside, it shouldn't matter which exchange you buy on in price terms alone. Arbitrage will always make sure that the prices are equivalent otherwise high frequency traders can make free money off the difference. In practical terms liquidity and brokerage costs usually make trad... |
What would be a wise way to invest savings for a newly married couple? | Forgive me as I do not know much about your fine country, but I do know one thing. You can make 5% risk free guaranteed. How, from your link: If you make a voluntary repayment of $500 or more, you will receive a bonus of 5 per cent. This means your account will be credited with an additional 5 per cent of the value o... |
Does Joel Greenblatt's “Magic Formula Investing” really beat the market? | Probably not. Once the formula is out there, and if it actually seems to work, more and more investors chase the same stocks, drive the price up, and poof! The advantage is gone. This is the very reason why Warren Buffett doesn't announce his intentions when he's buying. If people know that BRK is buying, lots of ot... |
Is it sensible to redirect retirement contributions from 401(k) towards becoming a landlord? | As a general rule, diversification means carrying sufficient amounts in cash equivalents, stocks, bonds, and real estate. An emergency fund should have six months income (conservative) or expenses (less conservative) in some kind of cash equivalent (like a savings account). As you approach retirement, that number sh... |
In Canada, how much money can I gift a friend or family member without them being taxed on it? | Canada doesn't seem to have a gift tax. http://www.taxtips.ca/personaltax/giftsandinheritances.htm |
Does the common advice about diversification still hold in times of distress | The common advice you mentioned is just a guideline and has little to do with how your portfolio would look like when you construct it. In order to diversify you would be using correlations and some common sense. Recall the recent global financial crisis, ones of the first to crash were AAA-rated CDO's, stocks and so o... |
When you're really young and have about 2K to start investing $ for retirement, why do some people advise you to go risky? | Why it is good to be risky The reason why it is good to be risky is because risky investments can result in higher returns on your money. The problem with being risky, is there is a chance you can lose money. However, in the long term you can usually benefit from higher returns even if you have a few slip ups. Let me s... |
Should market based health insurance premiums be factored into 6 months emergency fund savings? | Yes, it should be. As, where one has insurance, its an expense one would expect one to continue to incur in a normal budgetary emergency, even drop in the extreme. |
Why are credit cards preferred in the US? | For me, it is mostly for the fraud protection. If I have a debit card and someone makes a fraudulent charge the money is removed from my bank account. From my understanding, I can then file a fraud complaint with the bank to recover my money. However, for some period of time, the money is missing from my bank account... |
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