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Tax on Stocks or ETF's | No, not really. This depends on the situation and the taxing jurisdiction. Different countries have different laws, and some countries have different laws for different situations. For example, in the US, some investments will be taxed as you described, others will be taxed as "mark to market", i.e.: based on the FMV d... |
I have savings and excess income. Is it time for me to find a financial advisor? | Whether your financial status is considered "OK" depends on your aspirations. You aren't spending more than you earn and have no debt. That puts you in the category of OK in my book, but the information in your post indicates that you would benefit from some financial advice--100 grand sounds like a lot of money to h... |
Is buying a lottery ticket considered an investment? | There is a clear difference between investing and gambling. When you invest, you are purchasing an asset that has value. It is purchased in the hopes that the asset will either increase in value or generate income. This definition holds true whether you are investing in shares of stock, in real estate, or in a comic b... |
Why do banks finance shared construction as mortgages instead of financing it directly and selling the apartments in a building? | Banks should be risk averse by default. They make loans to people and businesses after measuring their ability to repay. After they approve a big project loan like an apartment building, they don't give all the money to the builders upfront. They give money as progress is made and they make sure the funds are not bein... |
Why don't banks give access to all your transaction activity? | If you need access to your data beyond the online availability, you download the transactions and manage the archive yourself. Six months to eighteen months is generally enough time for most people to manage their own archived data. Big banks have the power to store and retrieve all the data online. Unfortunately, the ... |
When does Ontario's HST come into effect? | (community wiki) Ontario special HST sales tax transition rebate cheques: When and how much? What will happen to quarterly GST cheques when HST starts in Ontario? Ontario HST rebate: When would I qualify? Ontario gas prices & HST: What will happen to prices at the pump on July 1, 2010? How will Ontario’s HST apply to b... |
Should I buy ~$2200 of a hot stock or invest elsewhere? | Your debt is insane. Forget investing, pay off your debt. You owe 100% of your salary, with only one smallish asset (6K in the bank). Sure you have a car, but the value of the car is falling rapidly and can be taken to near zero by a simple accident. Once you have your debts paid off (or at least to a reasonable le... |
Is there any instrument with real-estate-like returns? | nan |
In which country can I set up a small company so that I pay a lower rate of corporate tax? | Grass is always greener at the other side of the hill. Tax is only a small proportion of your costs. you could easily set up a small company in a so called tax haven. But are you willing to emigrate? If not, will the gain in less taxes cover the frequent travel costs? Even if you would like to emigrate less tax might ... |
My tenant wants to pay rent through their company: Should this raise a red flag? | The company that's apparently going to pay this rent wants to treat it as a business expense. They are asking for your SSN because they expect to issue a 1099-MISC. (They probably gave you a Form W-9? It's not mandatory but it's common to request a taxpayer ID on this form.) There are a couple of issues at play here: |
What exactly is the interest rate that the Fed is going to adjust? | Federal Funds Rate The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution overnight. The federal funds rate is generally only applicable to the most creditworthy institutions when they borrow and lend overnight funds to each other. The federal... |
Selling To Close | Yes, if there is liquidity you can sell your option to someone else as a profit. This is what the majority of option trading volume is used for: speculative trading with leverage. |
Property Trust - who or what is the Owner? | The trust owns the property, the trustees control the property and the beneficiaries receive any income from rent or gains from sale of property. |
Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve? | They don't need to accept deposits from normal persons, but that's how they make lots of money. Banks make money off the fees they charge retailers when those folks swipe their debit cards at the retailer. It's their bread and butter. In order to facilitate you accruing swipe fees for them, they need to allow you to... |
Is there a catch to offers of $100 when opening up a new checking account? | There's no catch. Banks need to acquire customers just like any other business. One common way to acquire new customers is by advertising on the radio, TV, print, etc. Another common way to acquire new customers is by offering incentives like the one you linked to. Basically, PNC is confident that they will make more t... |
Where do large corporations store their massive amounts of cash? | They are using several banks, hedge funds or other financial institutions, in order to diversify the risk inherent to the fact that the firm holding (a fraction of) their cash, can be insolvent which would makes them incur a really big loss. Also, the most available form of cash is very often reinvested everyday in ove... |
Using a self-directed IRA to buy vacation condo, rent it out to an LLC for $1 | I don't quite understand your thought process here. First, in a tax-advantaged retirement account you are NOT allowed to engage in a transaction with yourself. If you just want to run a business and be able to write off expenses, how is using the self-directed IRA relevant? You can either buy the condo using your ta... |
Should I pay off my car loan within the year? | Contrary to popular belief, you can build your credit (if that is important to you) without paying a penny in interest. This is done through the responsible use of credit cards, paying the bill in full each month without accruing any interest charges. If I were you, I would pay off the loan today, if possible. After ... |
Can I open a Solo 401(k) if I am an independent contractor but also work part-time as an employee? | If you have self-employment income you can open a Solo 401k. Your question is unclear as to what your employment status is. If you are self-employed as an independent contractor, you can open a Solo 401k. You can still do this even if you also earn non-self-employment income (i.e., you are an employee and receive a ... |
I file 83(b) election, but did't include a copy of it in that year’s tax return | This may be relevant: it suggests that IRS is lenient with the attachment of the form with 1040. To paraphrase: "The ruling involved a taxpayer who timely filed the election with the IRS within 30 days of the property transfer but who did not attach a copy of the election to his or her Form 1040 for the year of the tra... |
Bond prices: Why is a high yield sometimes too good to be true? | Those are the expected yields; they are not guaranteed. This was actually the bread and butter of Graham Newman, mispriced bonds. Graham's writings in the Buffett recommended edition of Securities Analysis are invaluable to bond valuation. The highest yielder now is a private subsidiary of Société Générale. A lack of... |
What mix of credit lines and loans is optimal for my credit score? | Please do not conflate number of credit cards with amount of debt. Consider two scenarios, The latter scenario yields much better credit scoring. Many recommendation sources suggest the following, Although your credit score seems very important, it is only important when you have financial interactions (such as applyin... |
Home Valuation in a Dodgy neighborhood | I wouldn't personally spend any money on an appraisal. Spend some time yourself looking at Zillow.com and maybe Realtor.com and other sites to review recent sales in your specific area. Not the houses a mile away. Try to find comparables to yours. The key factor is dollars per square foot. See if the trend over th... |
How often does a stock price change and where is this defined? | Stocks prices are determined whenever a buyer and seller agree to trade at a given price. The company (you use AAPL as an example) doesn't set its own stock price. Rather, the investors set the price every time it trades. There's no "official" price -- just the last trade. Likewise, you can offer to trade a stock at wh... |
What accounted for DXJR's huge drop in stock price? | For all stocks, expected Dividends are a part of the price it is traded for - consider that originally, the whole idea of stocks was to participate in the earnings of the company = get dividends. The day the dividend is paid, that expectation is of course removed, and thereby the stock value reduced by just the amount ... |
Checking the math on a Truth-in-Lending Disclosure | As your question is written now, it looks like you have a typo. Your stated APR is 5.542% = 0.05542, not 0.005542 as you've written. I ran the numbers that you gave (accounting for the typo) through the formula at Wikipedia and got $849.2528 / month, which will round to $849.25 for most payments. That doesn't match ... |
Theory/Strategy for pricing by volume | Actually, the rate of change could be more or less constant, but you might have a minimum price that represents your fixed costs. So you might sell a milligram for $1 (which is ridiculous in terms of per-unit pricing) to cover fixed costs, and add $0.50/lb for each step in size to cover variable costs (cost of raw mat... |
In a house with shared ownership, if one person moves out and the other assumes mortgage, how do we determine who owns what share in the end? | The ownership of the house depends on what the original deed transferring title at the time of purchase says and how this ownership is listed in government records where the title transfer deed is registered. Hopefully the two records are consistent. In legal systems that descended from British common law (including ... |
What is the best way to get a “rough” home appraisal prior to starting the refinance process? | I see your remarks regarding Zillow, but would add a question. Why not look only for recent sales? If you find homes similar to yours with recent sales, that's similar to how the appraisers do it. I've refinanced many times and each time, I looked at sales within three miles of my house. I hit the appraised price very ... |
Potential phishing scam? | You need to talk to your bank. If you're unable to contact your bank until Monday, then wait until Monday. Don't fixate on the idea that the transaction may "hard post" on Monday. If it happens, it happens, but it's not the end of the world. Even if the transaction posts, it's not the end of the world. If the retai... |
What does it mean to be “offset against taxable gains”? | Offset against taxable gains means that the amount - $25 million in this case - can be used to reduce another sum that the company would otherwise have to pay tax on. Suppose the company had made a profit of $100 million on some other investments. At some point, they are likely to have to pay corporation tax on that am... |
What is the best, low risk investment I can make now? | TL;DR - go with something like Barry Ritholtz's All Century Portfolio: 20 percent total U.S stock market 5 percent U.S. REITs 5 percent U.S. small cap value 15 percent Pacific equities 15 percent European equities 10 percent U.S. TIPs 10 percent U.S. high yield corp bonds 20 percent U.S. total bond UK property market a... |
If I have no exemptions or deductions, just a simple paycheck, do I HAVE to file taxes? | You are not required to file a tax return in Canada if you have no taxable income. If you do not file a return you may be requested to by Canada Revenue Agency, and then you'll need to file one. There are hundreds of thousands of Canadian residents who do not file tax returns. The Minister who overlooks the CRA may ass... |
Stranger in Asia wants to send me $3000 in Europe over Western Union because he “likes me”? [duplicate] | The first question I have to ask is, why would your "friend" even be considering something so ridiculous? There are so many variations of the banking scam running around, and yet people can't seem to see them for what they are -- scams. The old saying "there's no such thing as a free lunch" really comes into play he... |
Why does selling and then rebuying stock not lead to free money? | I think the simple answer to your question is: Yes, when you sell, that drives down the price. But it's not like you sell, and THEN the price goes down. The price goes down when you sell. You get the lower price. Others have discussed the mechanics of this, but I think the relevant point for your question is that when... |
Legitimate unclaimed property that doesn't appear in any state directory? | So while these companies are not a scam, 30% feels pretty darn high. How about you negotiate a much lower rate? 10% or 15%? Here is why: You will spend time and effort (which technically isn't free) to find the money. I bet you can find it if you look hard enough. But you could also just collect it and give this co... |
What's a good free checking account? | If you want to deposit checks or conduct business at a window, you should look at a local savings bank or credit union. Generally, you can find one that will offer "free" checking in exchange for direct deposit or a minimum balance. Some are totally free, but those banks pay zippo for interest. If you don't care about ... |
Should I continue to invest in an S&P 500 index fund? | I would be very cautious about investing any more funds into the S&P500 at this stage. You are quite correct in your observation with the charts regarding the 2001 and 2008 crashes, and below is the chart of the S&P500 over the last 20 years with some indicators on it. The green line on the price chart is the 100 week... |
Can Per Diem deductions include family travel, meals and housing? | You cannot deduct anything. Since you're actually moving, your tax home will move with you. You can only deduct the moving expenses (actual moving - packing, shipping, and hotels while you drive yourself there). |
Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve? | They don't actually need to. They accept deposits for historical reasons and because they make money doing so, but there's nothing key to their business that requires them to do so. Here's a decent summary, but I'll explain in great detail below. By making loans, banks create money. This is what we mean when we say the... |
Will I get a tax form for sale of direct purchased stock (US)? | I think I found the answer, at least in my specific case. From the heading "Questar/Dominion Resources Merger" in this linked website: Q: When will I receive tax forms showing the stock and dividend payments? A: You can expect a Form 1099-B in early February 2017 showing the amount associated with payment of your sha... |
When filing taxes in Canada, in what cases does box 39 on the T4 get reported as half of box 38? | Here's the best explanation I found relating to why your T4 box 39 might not have an amount filled in, even when box 38 has one: Department of Finance – Explanatory Notes Relating to the Income Tax Act [...]. It's a long document, but here's the part I believe relevant, with my emphasis: Employee Stock Options ITA 110(... |
Value investing | One aspect of this - no matter which valuation method you choose - is that there are limited shares available to buy. Other people already know those valuation methods and have decided to buy those shares, paying higher than the previous person to notice this and take a risk. So this means that even after you have calc... |
Why are capital gains taxed at a lower rate than normal income? | There are two alternative explanations: Choose the explanation you prefer based on your level of cynicism. |
Will my current employer find out if I have a sole proprietarship/corporation? | I can see why you'd be reluctant to tell them, but I think you need to be open and honest with them about what you're doing and where you see it going. If the roles were reversed, what would you want your employee to do in this situation? If it were me, I'd be much happier to be told up front than to find out some o... |
static data for mutual funds/hedge funds | It's not really my field, but I believe it's all the information that doesn't change (i.e. isn't "real-time") about the business of hedge funds. For example, this site quotes: The product maintains comprehensive static data records including assets, depositories, accounts, settlement instructions and a wide rang... |
Changes in Capital Gains Tax in the US - Going to 20% in 2011? | The top long-term capital gains tax rate will rise to 20% effective 1 Jan, 2011, unless Congress decides to do something about it before then. (Will they? Who knows!! There's been talk about it, but, well, it's Congress. They don't even know what they're going to do.) Anyway. The rules about when you can sell stock ar... |
Should I deduct or capitalize the cost to replace a water heater in my rental property? (details Below) | If you're repairing an existing appliance - its an expense. If you're replacing an existing appliance with a new one - that's disposing of one capital asset and putting in service another. You depreciate the new one and you dispose of the old one (if not fully depreciated - talk to your tax adviser how to handle the re... |
Over how much time should I dollar-cost-average my bonus from cash into mutual funds? | Canadian Couch Potato has an article which is somewhat related. Ask the Spud: Can You Time the Markets? The argument roughly boils down to the following: That said, I didn't follow the advice. I inherited a sum of money, more than I had dealt with before, and I did not feel I was emotionally capable of immediately dump... |
Can my employer limit my maximum 401k contribution amount (below the IRS limit)? | Highly Compensated Employee Rules Aim to Make 401k's Fair would be the piece that I suspect you are missing here. I remember hearing of this rule when I worked in the US and can understand why it exists. A key quote from the article: You wouldn't think the prospect of getting money from an employer would be nerve-w... |
Magazine subscription leads to unauthorized recurring payment | In 2010, the Restore Online Shoppers' Confidence Act was passed, which prohibited certain activities, most of which had to do with online sites sharing your CC info with third parties. However, the final part of the act deals with "negative option" marketing, which is basically what you're describing - "We will charge... |
How does a bank make money on an interest free secured loan? | Car dealers as well as boat dealers, RV dealers, maybe farm vehicle dealers and other asset types make deals with banks and finance companies to they can make loans to buyers. They may be paying the interest to the finance companies so they can offer a 0% loan to the retail customer for all or part of the loan term. N... |
In USA, what circumstances (if any) make it illegal for a homeless person to “rent” an address? | You owe taxes to the state where you earned the income, and also to the state where you physically live. Most, maybe all, states have laws that let you claim credits for taxes paid to other states so that you're not paying double taxes by living in one state while working in another. Most states have deals with all the... |
Homeowners: How can you protect yourself from a financial worst-case scenario? | I am lucky enough to have chosen a flexible mortgage that allows me to change payment amounts at certain, very lenient intervals (to a minimum amount). So when I was laid off, the first thing I did was call my bank to lower my payments to a level that allowed me some breathing room, at my new, lower income. If and wh... |
ACH processing time of day | It depends on the bank and network. Banks are to provide outgoing data at the certain time for the processing by the central clearing house (the Federal Reserve system, for ACH), which then distributes incoming data back to the banks. All this has to be done between the closing of the business day and the opening of th... |
Can you explain “time value of money” and “compound interest” and provide examples of each? | Compound interest means that the interest in each time period is calculated taking into account previously earned interest and not only the initial sum. Thus, if you had $1000 and invested it so that you'd earn 5% each year, than if you would withdraw the earnings each year you in 30 years you would earn 0.05*30*1000 =... |
Changes in Capital Gains Tax in the US - Going to 20% in 2011? | For the record, now that 2011 is here we know that the capital gains tax rate didn't change. Congress extended it for two more years. This shows the uncertainty in trying to maximize earnings based on future changes to the tax code. |
Is it better to buy this used car from Craigslist or from a dealership? | You seem to be on the right track. I feel, though, that it's worth addressing your maintenance budget. Even if both cars described in your question are from the same model year, one has been in service 2x more; one car has been on the road, in weather, twice as much as the other. I'm not sure what's being represente... |
Is there a rule of thumb to help “Sanity check” insurance costs? | Your best bet would be to find an independent Property and Casualty Insurance agent and buy through him/her. Insurance agents make a commission, yes - BUT - the cost to consumer is THE SAME whether you buy through an agent or through directly through the company. Any P&C agent would be happy to run your numbers for you... |
CD interest rate US vs abroad, is there a catch? | If you invest in a foreign bank you are subject to their financial rules and regulations. If you put your money with their CD it will be converted to UAH (grivna) and you will be paid back in UAH, which introduces the exchange rate risk. FDIC is not the only reason why a CD in a US bank pays a lower interest, but it c... |
How should I pay off my private student loans that have a lot of restrictions? | It's definitely NOT a good idea to pay off one of the smaller loans in your case - a $4k payment split across all the loans would be better than repaying the 5% / $4k loan completely, as it's the most beneficial of your loans and thus is last priority for repayment. A payment that splits across all the loans equally is... |
Clarify Microsoft's explanation of MIRR | The value does change from 12.61% to 13.48%. The difference between re-investing cashflows at 14% vs 12% is not big enough to change the rounded value. Edit: The initial cashflow is discounted at t0, meaning it's already equal to its present value and the finance rate doesn't have an effect. It does impact future outgo... |
In a buy order with a trigger, will I pay the current ask or the buy price in the order? | If you want to buy once the price goes up to $101 or above you can place a conditional order to be triggered at $101 or above and for a limit order to entered to buy at $102. This will mean that as soon as the price reaches $101 or above, your limit order will enter the market and you will buy at any price from $102 or... |
Ask FBI permission to withdraw large sums from your checking or savings? | Is it true you have to file papers with the government in the US to withdraw large sums of cash at your local bank branch? It's true that a currency transaction report (CTR) gets filed with FinCEN (Financial Crimes Enforcement Network) when you make a cash transaction in excess of $10,000. Banks have systems that do ... |
Company stock listed in multiple exchanges? | If a company's shares trade in multiple exchanges, the prices in every exchange are very near to each other, otherwise you could earn money by doing arbitrage deals (buying in one, selling in the other) - and people do that once it becomes worth it. Which stock exchange you use is more a convenience for the buyer/selle... |
Contribute to both a SEP IRA and solo Roth 401(k)? | In addition to the normal limits, A Solo 401(k) allows you to contribute up to 20% of net profits (sole proprietor) or 50% of salary (if a corporation), up to $49,000. Note that the fees for 401(k) accounts are higher than with the IRA. See 401(k)s for small business. |
How to get started with options investing? | What is a good resource to learn about options trading strategies? Options are a quite advanced investment form, and you'd do well to learn a lot about them before attempting to dive into this fairly illiquid market. Yale's online course in financial markets covers the Options Market and is a good starting point to mak... |
Online tools for monitoring my portfolio gains/losses in real time? | Do you have a broker? Any online brokerage (TD Ameritrade, E*Trade, Scott Trade, etc) offer the functionality that you want. If you're not interested in opening a brokerage account, you can search for threads here related to stock market simulation, since most of those services also provide the features that you want. ... |
Why does selling and then rebuying stock not lead to free money? | There are several reasons. First, if you sell your stock "at any price", you may be selling it for less than you originally bought it for. Thus you will take a loss right at the beginning of your scheme. If you "rinse and repeat", the problem only gets worse. Every time you sell your stock, you will have to sell it ... |
Why are residential investment properties owned by non-professional investors and not large corporations? | None of the previous answers calls out an important factor to residential property ownership bias towards individual investors. The amount of time spent managing (leasing, maintenance and rent collection) on single properties is much higher, per property, than larger investments. But what is mentioned in passing is the... |
Are you preparing for a possible dollar (USD) collapse? (How?) | I think it's apt to remind that there's no shortcuts, if someone thinks about doing FX fx: - negative sum game (big spread or commissions) - chaos theory description is apt - hard to understand costs (options are insurance and for every trade there is equivalent option position - so unless you understand how those are... |
Want to buy above market price? | Buy and sell orders always include the price at which you buy/sell. That's how the market prices for stocks are determines. So if you want to place a buy order at 106, you can do that. When that order was fulfilled and you have the stock, you can place a sell order at 107. It will be processed as soon as someone places... |
Disputing Items to Improve Credit Report | A few points: The reason your lender is asking you to be above 580 is because that is the magic number for an FHA loan where your down payment would be only 3.5% (the US Government effectively subsidizes the rest of your down pmt). If you had a score lower than that (but still above 500), you will need to put 10% down ... |
Transfer car loan for better interest rate | The key word you are looking for is that you want to refinance the loan at a lower rate. Tell banks that and ask what they can offer you. |
What is the best way to determine if you should refinance a mortgage? | Yes, take the new rate, but instead of using the new 30 year term, calculate the payment as though the new mortgage were at the remaining term. 3 years into a 30? You calculate the payment as if the new mortgage were 27 years. This will tell you what you are really saving. Now, take that savings and divide into your c... |
What is a 401(k) Loan Provision? | 401K accounts, both regular and Roth, generally have loans available. There are maximum amounts that are based on federal limits, and your balance in the program. These rules also determine the amount of time you have to repay the loan, and what happens if you quit or are fired while the loan is outstanding. In these l... |
How can I verify that a broker I found online is legitimate? | Both Scottrade and ING Direct (CapitalOne) have physical branches. Scottrade are wide-spread, ING/CapitalOne are less common (in California where I live, I have a bunch of Scottrade branches around where I live, but the only ING presence I know of is in LA on Sepulveda at Santa Monica). So one way to verify the company... |
Investing in dividend-yielding stocks with money borrowed from margin account? | You can use long-term options called LEAPS to increase dividend yield. Here's how it works: Let's say you buy a dividend-yielding stock for $38 that pays an annual dividend of $2 for a 5.3% yield. Next, you SELL a deep-in-the-money LEAPS options. In this hypothetical we'll sell the $25 call option for $13. That now red... |
Source of income: from dividends vs sale of principal or security | All that it is saying is that if you withdraw money from your account it doesn't matter whether it has come from dividends or capital gains, it is still a withdrawal. Of course you can only withdraw a capital gain if you sell part of the assets. You would only do this if it was the right time for you to sell the asset. |
Calculating the total capital of a company? | Total Capital This is a very old fashioned term that really is mostly only used in the finance industry today, like when everyone was obsessed with "bank capital". Total Capital = Preferred Equity + Common Equity + Liabilities True blue preferred shares are almost only used by financial companies, banks specifically. ... |
The spread goes to the market maker, is the market maker the exchange? | A "market maker" is someone that is contractually bound, by the exchange, to provide both bid and ask prices for a given volume (e.g. 5000 shares). A single market maker usually covers many stocks, and a single stock is usually covered by many market makers. The NYSE has "specialists" that are market makers that also p... |
How to find out if I have a savings account already? | If you know what bank your parents used, call them and ask. (Or you might have to go there and show id). Chances are if such an account exists, it would be at the same bank. You can also search for unclaimed property. Here's the information link for Florida. |
Funds in closed bank account have gone to the government | Legally speaking, if you do close a limited company, the funds belong to the government ("bona vacantia"). There's some guidance on this at Companies House and there is indeed a substantial amount of administration work to get it undone. Notable excerpts: You should deal with any loose ends, such as closing the company... |
How can I determine if leaving a lower paying, tax advantaged, job for a higher paying one makes sense financially? | It looks like a coin toss. What you have isn't bad at all. If you have enough free time with your $50k job to do extra stuff on the side, you can use that time to build a business. You're obviously a go-getter type, so this might suit you. Which job is closer to your calling? All other things being equal, the more f... |
Is trading stocks easier than trading commodities? | Its the relative leverage available to retail traders between the two. In the US one can trade equities with 2:1 leverage while with commodities the leverage can go much higher. Combine this with the highly volatile nature of commodities, and it makes losing BIG too easy for the average trader. |
On what time scales are stock support and resistance levels meaningful? | Stock support and resistance levels mean that historically, there was "heavy" buying/selling at those levels. This suggests, but does not guarantee, that "someone" will buy at "support" levels, and "someone" will sell at "resistance levels. Any "history" is meaningful, but most analysts will say that after six months t... |
As a 22-year-old, how risky should I be with my 401(k) investments? | At 22 years old, you can afford to be invested 100% in the stock market. Like many others, I recommend that you consider low cost index funds if those are available in your 401(k) plan. Since your 401(k) contributions are usually made with each paycheck this gives you the added benefit of dollar cost averaging througho... |
What's a good option for passive income for a college student? | As mentioned in the other answer, you can't invest all of your money in one slightly risky place, and to receive a significant return on your investment, you must take on a reasonable amount of risk, and must manage that risk by diversifying your portfolio of investments. Unfortunately, answers to this question will be... |
Does an issue of bonus shares improve shareholder value? | The bonus share also improves the liquidity however there is some difference in treatment. Lets say a company has 100 shares, of $10 ea. The total capital of the compnay is 100*10 = 1000. Assuming the company is doing well, its share is now available in the market for $100 ea. Now lets say the company has made a profit... |
How does a high share price benefit a company when it is raising funds? | A private company say has 100 shares with single owner Mr X, now it needs say 10,000/- to run the company, if they can get a price of say 1000 per share, then they just need to issue 10 additional shares, so now the total shares is 110 [100 older plus 10]. So now the owner's share in the company is around 91%. However ... |
Will capital gains affect my tax bracket? | I think you're misunderstanding how tax brackets work. If you make $1 more and that bumps you into a higher bracket, only THAT particular dollar will be taxed at the higher tax bracket rate... Not your entire income. Short term capital gains are treated as income. Long term capital gains have a special tax rate curre... |
Pay index fund expense ratios with cash instead of fund balance | It seems at most a cosmetic difference - nothing keeps you from adding the 9$ cash to the fund the same day the fees are deducted from the shares. |
Some stock's prices don't fluctuate widely - Is it an advantages? | Oracle specifically is paying a dividend with a current yield of about 1.4% annually and has appreciated nearly 50% over the last 5 years. Granted, the past doesn't guarantee the future but the company has paid a pretty steady dividend since 2009. If you're buying as part of an employee program you would presumably b... |
Long term investment for money | Say you have $15,000 of capital to invest. You want to put the majority of your capital into low risk investments that will yield positive gains over the course of your working career. $5,000: Government bonds and mutual funds, split how you want. $9,500: Low risk, trusted companies with positive historical growth. I... |
Is UK house price spiral connected to debt based monetary system? | No. Rural Scotland has exactly the same monetary system, and not the same bubble. Monaco (the other example given) doesn't even have its own monetary system but uses the Euro. Look instead to the common factor: a lot of demand for limited real estate. Turning towards the personal finance part of it, we know from experi... |
Does a stock holder profit from a reverse-stock split? | These are not real gains. Wherever you're looking this up, the prices are not adjusted for corporate actions. In a reverse stock split the price of a single share multiplies by five, but as a shareholder you hold only one share after for every five that you did before. |
Should I purchase a whole life insurance policy? (I am close to retirement) | There's nothing new about Whole Life Insurance. The agent stands to earn a pretty hefty commission if he can sell it to you. I don't think your assets warrant using it for avoiding the taxes that would be due on a larger estate. I don't see a compelling reason to buy it. |
As a 22-year-old, how risky should I be with my 401(k) investments? | As a 22 year old planning for your financial life, it is obvious to say that saving as much as you can to invest for the long run is the smartest thing to do from a financial point of view. In general, at this point, aged 22, you can take as much risk as you'll ever will. You're investing for the very long term (+30/+... |
When will Canada convert to the U.S. Dollar as an official currency? | Canada would most likely not convert any time in the near future. The challenge for Canada converting to the US Dollar or the fictional "Amero" mentioned by JohnFX is that : Some of the benefits would be: The challenge right now for any government would be to sell the pros over the cons and from that viewpoint the cons... |
Investing in real estate when the stock market is high, investing in stocks when it's low? | You're "onto" something. Investing in real estate was not a bad idea about 10-15 years ago, when stocks were high, and real estate was not. On the other hand, by about 2006, BOTH stocks and real estate were high, and should have been avoided. And around 1980, both were LOW, and should have been bought. I expand this co... |
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