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What ETF or other security tracks closest to 30 year mortgage rates? | TBF - Proshares short 20+ Year Treasury The TBF fund is designed to track (hopefully) 100 percent of the inverse daily returns of the Barclays Capital 20+ Year U.S. Treasury Index. there's some risk of tracking error, and also a compounding effect if it's down several days in a row. (invest with care) There's also... |
How many days does Bank of America need to clear a bill pay check | Firstly, it isn't so generous. It is a win-win, but the bank doesn't have to mail me a free box of checks with my new account, or offer free printing to compete for my business. They already have the infrastructure to send out checks, so the actual cost for my bank to mail a check on my behalf is pretty minimal. It ... |
Question about protecting yourself from company not beating earning eastimate | The best thing to do to avoid this is not to sell as you've described. What purpose does it solve? If you're speculating, set a price at which you want to cash out and put a limit order. If you're a long term investor, then unless something fundamental has changed - why would you sell? |
Is This Money Laundering? | This is price-setting algorithms running amok. From the page you link, follow the '2 new from $49,991.11' link and you will see that (at the time of writing), there are two vendors offering this item for $49991.11 (plus $16.37 shipping) and $49999.99. These are clearly not 'real' prices and yet they are suspiciously cl... |
Should I always hold short term bonds till maturity? | Risk is reduced but isn't zero The default risk is still there, the issuer can go bankrupt, and you can still loose all or some of your money if restructuring happens. If the bond has a callable option, the issuer can retire them if conditions are favourable for the issuer, you can still loose some of your investment.... |
When trading put options, is your total risk decreased if you are in a position to exercise the option? | You should also consider what the cost of the Put is, especially if the strike price is set at the current price, vs the average price delta of the security during the period between when you buy the put, and the expiration date. Also note the prices for puts on stocks with a lot of price volatility. There are a good ... |
Should I use regular or adjusted close for backtesting? | A one year period of study - Stock A trades at $100, and doesn't increase in value, but has $10 in dividends over the period. Stock B starts at $100, no dividend, and ends at $105. However you account for this, it would be incorrect to ignore stock A's 10% return over the period. To flip to a real example, MoneyChimp... |
Early Exercise and 83(b) Election | I assume I can/will need to file an 83(b) election, in order to avoid tax repercussions? What exactly will this save me from? 83(b) election is for restricted stock grants, not for stock purchases. For restricted stocks, you generally pay income tax when they vest. For startups the price difference between the time o... |
Supply & Demand - How Price Changes, Buy Orders vs Sell Orders [duplicate] | Yes for every order there is a buyer and seller. But overall there are multiple buyers and multiple sellers. So every trade is at a different price and this price is agreed by both buyer and seller. Related question will help you understand this better. How do exchanges match limit orders? |
How to get started with savings, paying off debt, and retirement? | You have a small emergency fund. Good! Be open about your finances with each other. No secrets, except around gift-giving holidays. Pay off the debts ASAP. Don't accumulate more consumer debt after it's paid off. I wouldn't contribute anything more to the 401k beyond what gives you a maximum match. Free money is fr... |
Are lottery tickets ever a wise investment provided the jackpot is large enough? | I realize that most posters are US based, but the UK on Saturday had its biggest ever payout (a miserable £60m). Because of the rules there, the estimated "value" of a £2 ticket was between £3 and £5. http://www.theguardian.com/science/2016/jan/09/national-lottery-lotto-drawing-odds-of-winning-maths |
Td Ameritrade Roth IRA question | Your broker, Ameritrade, offers a variety of Exchange Traded Funds (ETFs) that you can buy and sell with zero commission. An ETF is like a mutual fund, but you buy and sell shares the same way you buy and sell shares of stocks. From your point of view, the relevance of this is that you can buy and sell as many or as ... |
How to prevent misusing my Account details | This is more legal and less personal finance question. You should immediately lodge a police complaint mentioning that some persons are using your PAN card details for activities not authorized by you. In the meantime also engage the services of a CA and reply back to income tax authorities. Do not ignore the notice. |
Which Roth IRA is the best for a 21 year old who has about $1500? | You are young, and therefore have a very long time horizon for investing. Absolutely nothing you do should involve paying any attention to your investments more than once a year (if that). First off, you can only deposit money in an IRA (of whatever kind) if you have taxable income. If you don't, you can still invest, ... |
Effect of company issued options on share price | A company has 100,000 shares and 100,000 unexercised call options (company issued). Share price and strike price both at $1. What country is this related to? I ask because, in the US, most people I know associate a "call" option with the instrument that is equivalent to 100 shares. So 100,000 calls would be 10,000,... |
Is technical analysis based on some underlying factors in the market or do they work simply because other people use them? | Both explanations are partly true. There are many investors who do not want to sell an asset at a loss. This causes "resistance" at prices where large amounts of the asset were previously traded by such investors. It also explains why a "break-through" of such a "resistance" is often associated with a substantial "mo... |
Where can I trade FX spot options, other than saxobank.com? | To other users save yourselves time, do not test any of the alternatives mentioned in this post. I have, to no avail. At the moment (nov/2013) Saxobank unfortunately seems to be the only broker who offers OTC (over-the counter) FX options trading to Retail Investors. In other words, it is the only alternative for those... |
What does the phrase “To make your first million” mean? | When people are crowing about their achievements, they often take liberties with those achievements. Vitalik's interpretation -- net worth, is probably what you would naturally come to mind. But when someone is bragging, that could mean anything -- $1M of total revenue. |
Difference between GOOGL and GOOG | Source |
Most common types of financial scams an individual investor should beware of? | Anything where the initial step of someone trying to get you into anything financial is to send you an e-mail. There are valid situations in which e-mails may be used to introduce you to a financial product or offer, such as if you have signed up for an electronic newsletter that includes such information. But in that ... |
What financial data are analysed (and how) to come up with a stock recommendation? | The short answer: it depends. The long answer.. Off the top of my head, there are quite a number of factors that an analyst may look at when analyzing a stock, to come up with a recommendation. Some example factors to look at include: The list goes on. Quite literally, any and all factors are fair game for a recommen... |
How to tell if an option is expensive | One way is to compare the implied volatility with the realised volatility over a period similar to the time left to expiry. However there are plenty of reasons why the implied may be higher than the historical, for example because the market volatility has increased overall or because the underlying company is going to... |
Can I negotiate a 0% transaction fee with my credit card company? | TL;DR summary: 0% balance transfer offers and "free checks usable anywhere" rarely are a good deal for the customer. 0% rate balance transfer offers (and the checks usable anywhere including payment of taxes) come with a transaction fee because the credit card company is paying off the balance on the other card (or t... |
How much do big firms and investors affect the stock market? | The price of a company's stock at any given moment is established by a ratio of buyers to sellers. When the sellers outnumber the buyers at a given price, the stock price drops until there are enough people willing to buy the stock to balance the equation again. When there are more people wanting to purchase a stock ... |
Previous owner of my home wants to buy it back but the property's value is less than my loan… what to do? | How about doing a Lease Option with a very long term and a very early "option" for the guy buying. Essentially he will be making your mortgage payments for the next couple few years. Much less paperwork for the both of you that way. See a lawyer for the paperwork, from my limited experience with a real estate lawyer ... |
Boyfriend is coowner of a house with his sister, he wants to sell but she doesn't | That ain't nothing. It's really easy to get "whipped up" into a sense of entitlement, and forget to be grateful for what you do have. If this house doesn't exist, what would his costs of housing be elsewhere? Realistically. Would landlords rent to him? Would other bankers lend him money to buy a house? Would those ... |
Money market account for emergency savings | I'm not a fan of using cash for "emergency" savings. Put it in a stable investment that you can liquidate fairly quickly if you have to. I'd rather use credit cards for a while and then pay them off with investment funds if I must. Meanwhile those investments earn a lot more than the 0.1 percent savings or money market... |
Is engaging in stocks without researching unwise? | If you don't want to do the deep research on each individual company, you might want to look at index funds and similar "whole market" investments. |
A University student wondering if investing in stocks is a good idea? | I say, before investing your real capital into the Stock Market, play around on the virtual stock exchange game. It let's you invest with virtual capital and you can gain experience with the stock market. I wouldn't start investing in stock until I'm sure I can cover losses though. If you do intend to invest stocks so ... |
Is there a standard check format in the USA? | Nope, anything is that has the required information is fine. At a minimum you need to have the routing number, account number, amount, "pay to" line and a signature. The only laws are that it can't be written on anything illegal, like human skin, and it has to be portable, not carved on the side of a building ( for ex... |
Maintaining “Woman Owned Business” while taking on investor | In addition to finding another woman investor, you have an equitable option that is not unreasonable: ask your partner to buy out 3% worth of shares from you (which then gives her 54%, allowing you to then sell 5% to an investor and have it not dilute her below 51%: .54 * .95 = .513). That keeps you whole but also ke... |
Indian resident owning dividend-paying shares in company based in France: Can I save on withholding tax? | France taxes capital / dividend gains accrued in France. Hence you will not be able to reduce this liability. India does have a Double Tax Avoidance Treaty with France and you can claim relief for the tax paid in France. |
Options tax treatment | You would not owe any taxes in the 2015 year, unless you got exercised and called away in 2015. The premium would be short term capital gains barring some other exception I'm not aware of, and if you retain a gain on the underlying shares then that would still be long term capital gains. If it gets called in say April ... |
What could a malicious party potentially achieve by having *just* a name, account number, and sort code? | When you want to pay a bill on line there are several ways to do it. You can give them your credit card details: Name on Card, zip code, credit card number, and 3 or 4 digit security code on the back. Most of the information is available on the card or via an easy Google search. If the crook has your card they can use ... |
Can you explain this options calls & puts quote table to me? | (Note: I am omitting the currency units. While I strongly suspect it's US$ I don't know from the chart. The system works the same no matter what the currency.) A call or a put is the right to sell (put) or buy (call) shares at a certain price on a certain day. This is why you see a whole range of prices. Not all pos... |
When writing a covered call, what's the difference between a “net debit” and a “net credit”? | When you buy a stock and sell a covered call, the call can't be valued higher than the stock, right? How can a call on a $10 stock sell for more than the stock? So, the initial position of a covered call will cost you something. The transaction is a debit to you. The net amount of the deal, usually prices as per stoc... |
Should I avoid credit card use to improve our debt-to-income ratio? | The answer depends on how much you spend every month. The DTI is calculated using the minimum payment on the balance owed on your card. Credit card minimum payments are ridiculous, often being only $50 for balances of a couple thousand dollars. In any case, when you get preapproved, the lender will tell you (based on ... |
Should I pay a company who failed to collect VAT from me over 6 months ago? | It looks like businesses selling services (like software downloads) from outside the EU to the UK have to register for VAT if the amount of such sales goes over the UK VAT registration threshold: [If] the value of the taxable supplies you make is over a specified threshold [then] you must register for VAT So it seems... |
How do I calculate ownership percentage for shared home ownership? | You and your husband are fronting all the money upfront. I'm guessing this will cost you around 67,000 once closing costs and fees are included. So obviously you would be hundred percent owners at the beginning. You'll then pay 31% of the mortgage and have your sister pay the remaining 69%. This puts your total investm... |
Are stocks always able to be bought and sold at market price? | In general stock markets are very similar to that, however, you can also put in limit orders to say that you will only buy or sell at a given price. These sit in the market for a specified length of time and will be executed when an order arrives that matches the price (or better). Traders who set limit orders are call... |
What financial data are analysed (and how) to come up with a stock recommendation? | Let me start with a somewhat sarcastic statement: There are probably as many things done to analyze a stock as there are people doing the analysis! That said, at a general level an analyst researches the historical performance of the company at a fairly detailed level (operations within divisions of the company, produc... |
What does it mean for a company to have its market cap larger than the market size? | It is ALWAYS possible for a company's valuation in the market to be larger than the market it serves, and in fact it is not uncommon. There's valid argument that Uber would be a good example of this, with a market cap of more than $60 billion. Market cap is the total value of all shares outstanding. Keep in mind tha... |
Explain: “3% annual cost of renting is less than the 9% annual cost of owning” | The 3% and 9% figures are based on the cost of borrowing money and all the other ownership costs associated with real estate. From the same article: http://patrick.net/housing/crash1.html Because it's usually still much cheaper to rent than to own the same size and quality house, in the same school district. In rich... |
How are exchange rates decided for each country? | Today the rates are arrived simply on the basis of demand and supply. Historically rates were pegged to Gold, when all currencies were printed depending on the Gold reserves. So if one country printed 100 units of currency of a 1gm of gold and other country 10 units of currency for 1 gm of gold, the rate would be 1:10.... |
How to compare the value of a Masters to the cost? | Just looking at your question I can tell it's not worth it financially, even if you didn't borrow the money to do it. At your current rate, you'll be making 54,384 in 5 years, which is roughly a growth of 2.5% per year. If you go for the masters, in 5 years you'll be making 55,680, with roughly the same growth rate (2... |
Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve? | borrow money from the Central Bank Wrong premise. They cannot borrow as much as they want and they cannot borrow without collateral i.e. government debt instruments they hold or any other instrument with value. And banks don’t have unlimited collateral to borrow against. Secondly central banks aren’t in the business ... |
Australian stocks - any dividend tax or capital gains tax? | For non Australian residents: Dividends withholding tax rate is 30%. Depending upon your country of residence where there is a tax treaty in place to avoid double taxation, then this can be reduced. Note that only dividends that are unfranked are subject to this (in Australia, if tax has already been paid by the comp... |
Why is gold not a good investment? | Gold since the ancient time ( at least when it was founded) has kept its value. for example the french franc currency was considered valuable in the years 1400~ but in 1641 lost its value. However who owned Gold back then still got value. The advantage of having gold is you can convert it to cash easily in the world. ... |
How common is “pass-through” health insurance? | Even though this isn't really personal finance related I still feel like there are some misconceptions here that could be addressed. I don't know where you got the phrase "pass-through" insurance from. What you're describing is a self-funded plan. In a self-funded arrangement an employer contracts a third-party-admin... |
Are buyouts always for higher than the market value of a stock? | Can a company not bargain with a dying company for example and buy a falling stock at lower than market value? Of course. If the shareholders agree to it. But why would they, if the market value is higher, agree to sell to someone who offers less? If there's a compelling reason - it can happen. It might happen during... |
How do I bring money overseas? | I'm an Australian who just got back from a trip to Malaysia for two weeks over the New Year, so this feels a bit like dejavu! I set up a 28 Degrees credit card (my first ever!) because of their low exchange rate and lack of fees on credit card transactions. People say it's the best card for travel and I was ready for i... |
When is it necessary to apply taxes for web freelancing services in Quebec, Canada? | AFAIK, there are two kinds of taxes your web freelancing income may be subject to in Quebec: On the income taxes: The net income you realize from your web freelancing activities would be considered taxable income. Assuming you are not operating as an incorporated business, you would need to declare the freelancing in... |
Medium-term money investment in Germany | Due to the zero percent interest rate on the Euro right now you won't find any investment giving you 5% which isn't equivalent to gambling. One of the few investment forms which still promises gains without unreasonable risks right now seems to be real estate, because real estate prices in German urban areas (not so i... |
Short term parking of a large inheritance? | Safe short term and "pay almost nothing" go hand in hand. Anything that is safe for the short term will not pay much in interest/appreciation. If you don't know what to do, putting it in a savings account is the safest thing. The purpose of that isn't to earn money, it's just to store the money while you figure out w... |
Explanations on credit cards in Canada | A credit card is a way to borrow money. That's all. Sometimes the loans are very small - $5 - and sometimes they are larger. You can have a credit card with a company (bank or whatever) that you have no other relationship with. They're not a property of a bank account, they are their own thing. The card you describe so... |
I received $1000 and was asked to send it back. How was this scam meant to work? | This is a very trivial scam. Flow is like this: Send money to Mr. X (you, in this case). Call Mr. X and ask for the money back, because mistake. Usually they ask for a wire transfer/cash/gift cards/prepaid cards or something else irreversible/untraceable. Mr. X initiates transfer back to Scammer. Accept the transfer fr... |
My investment account is increasingly and significantly underperforming vs. the S&P 500. What should I do? | Typically you diversify a portfolio to reduce risk. The S&P 500 is a collection of large-cap stocks; a diversified portfolio today probably contains a mix of large cap, small cap, bonds, international equity and cash. Right now, if you have a bond component, that part of your portfolio isn't performing as well. The id... |
What do Earnings Per Share tell potential shareholders? | Earnings per share is the company profit (or loss), divided by the number of outstanding shares. The number should always be compared to the share price, so for instance if the EPS is $1 and the share price is $10, the EPS is 10% of the share price. This means that if the company keeps up this earning you should expect... |
Is it possible to get life insurance as a beneficiary before the person insured dies? | The short answer is "No". There a 2 ways to get cash from a life insurance policy. If the policy has cash value greater than the surrender value, then the difference can be borrowed, but will generally increase premiums in the future. The other method, available on many term policies allows the owner to receive part... |
Apartment Security Deposit refunds in Maryland | In Maryland, a landlord must hold your security deposit in an escrow account and pay you interest when returning the deposit. The interest is simple interest; it does not compound. The interest rate that they must pay has changed over the last 43 years. Before October 1, 2004, the rate was 4%. Until January 1, 2015,... |
Ways to establish credit history for international student | There's an excellent new service called SelfScore that offers US credit cards to international students. They work with students without a credit history and even without an SSN by using other qualifying factors such as major, financial resources in their home country, and employability upon graduation. Worth clarifyin... |
Is there any instance where less leverage will get you a better return on a rental property? | If you are calculating simple ROI, the answer is straightforward math. See This Answer for some examples, but yes, with more leverage you will always see better ROI on a property IF you can maintain a positive cash flow. The most complete answer is to factor in your total risk. That high ROI of a leveraged property i... |
Is it possible to block previously authorized ACH access? | I had a similar situation a while ago, and here's what I learned: What are our options here to ensure that this company can't retry to take our money again via ACH? Close existing account and create a new one that has different account number? Yes. As a temporary solution keep ~$0 balance in the account so that their r... |
As a small business owner, should I pay my taxes from my personal or business checking account? | Payment of taxes for your personal return filed with the IRS always come from your personal account, regardless of how the money was earned. Sales tax would be paid from your business account, so would corporate taxes, if those apply; but if you're talking about your tax payments to the IRS for your personal income tha... |
For young (lower-mid class) investors what percentage should be in individual stocks? | You should only invest in individual stocks if you truly understand the company's business model and follow its financial reports closely. Even then, individual stocks should represent only the tiniest, most "adventurous" part of your portfolio, as they are a huge risk. A basic investing principle is diversification. ... |
How were self employed folk taxed in the U.K. before 1997 | This link: http://www.ifs.org.uk/fs/articles/ewgm_feb93.pdf (from 1996, describing the proposals for the change) seems to answer the question in its description of "the current system" - they had to file business accounts and it was calculated by the Inland Revenue from that. |
How can I determine which stores are regarded as supermarkets for a rewards credit card? | Each company that has an account with the credit card network has to classify themselves as a particular type of business. The credit card company uses that classification to catagorize the transaction on your statement. If you buy a T-shirt at a grocery, amusement park, gas station, or resturant; the transaction will... |
Calculating profits on a covered call. What method do you use? | at $8.50: total profit = $120.00 *basis of stock, not paid in cash, so not included in "total paid" at $8.50: total profit = $75.00 |
Recommended education path for a future individual investor? | It depends on whether you want a career as a fund manager/ analyst or if you want to be an investor/ trader. A fund manager will have many constraints that a private investor doesn’t have, as they are managing other people’s money. If they do invest their own money as well they usually would invest it differently from... |
Where can publicly traded profits go but to shareholders via dividends? | Where can publicly traded profits go but to shareholders via dividends? They can be retained by the company. |
What would be a wise way to invest savings for a newly married couple? | First, keep about six months' expenses in immediately-available form (savings account or similar). Second, determine how long you expect to hold on to the rest of it. What's your timeframe for buying a house or starting a family? This determines what you should do with the rest of it. If you're buying a house next ye... |
What is the preferred way to set up personal finances? | The absolute best advice I ever received was this: You will need three categories of savings in your life: 1) Retirement Savings This is money you put away (in 401-Ks and IRAs) for the time in your life when you can no longer earn enough income to support yourself. You do not borrow against it nor do you withdraw fro... |
Stock Exchange price target | Price targets aren't set day to day, because of market fluctuations are so high from day to day. But in their stock recommendations, brokerage firms will often set price targets for "one year out." These targets aren't set in stone, so use them at your risk. |
Where can I find recent information about which major shareholders changed their positions in a given stock? | For the united States forms must be submitted electronically with the Securities and Exchange Commission , they also must be posted to company websites. |
What's the catch with biweekly mortgage payments? | Interest is a fee that you pay in order to use someone else's money. Once you've made the deal, pretty much anything you do that reduces the total interest that you pay does so by reducing the time for which you get to use their money. As an extreme example, consider a thirty-year interest-only loan, with a balloon pay... |
Are there any viable alternatives to Paypal for a small site? | I found out about Google checkout today, it looks like it may meet my needs, but I'd still be interested to find out about other options. |
Annualized Rate of Return on Stock Purchased in Tranches | So, there is no truly "correct" way to calculate return. Professionals will often calculate many different rates of return depending on what they wish to understand about their portfolio. However, the two most common ways of calculating multi-period return though are time-weighted return and money-weighted return. I'... |
Buying an investment property in Australia - what are the advantages and disadvantages of building a house vs buying an existing one? | When buying investment properties there are different levels of passive investment involved. At one end you have those that will buy an investment property and give it to a real estate agent to manage and don't want to think of it again (apart from watching the rent come in every week). At the other end there are thos... |
How can you possibly lose on investments in stocks? | In your own example of VW, it dropped from its peak price of $253 to $92. If you had invested $10,000 in VW in April 2015, by September of that year it would have gone down to $3,600. If you held on to your investment, you would now be getting back to $6,700 on that original $10,000 investment. Your own example demonst... |
Historic prices for currencies, commodities, | My guess it's a legal agreement between Yahoo and data provider on what data can be stored, displayed and for how long. Check out this list of data providers |
If accepting more than $10K in cash for a used boat, should I worry about counterfeiting? | Paying tax is a Good Thing. However, warren has made good point and I would like you to consider this other thing: Go into your payees bank with the payee, get the money withdrawn from the teller and take it with you. Unless I am missing something, or the teller handed your payee fake notes, you are "safe" |
Paying Off Principal of Home vs. Investing In Mutual Fund | I wouldn't pay down your mortgage faster until you have a huge emergency fund. Like two years' worth of expenses. Once you put extra money toward principal you can't get it out unless you get a HELOC, which costs money. You're in a position now to build that up in a hurry. I suggest you do so. Your mortgage is exce... |
Does the “Free Ride” rule always apply to your entire collection of shares in a particular stock? | Your question is unanswerable as you haven't provided enough information. I.e. If those shares cost $1000 and you have $50000 ( or any number above $1000) of cash available in the account then you can't possibly free ride. I think your understanding of the free ride rule is incorrect. Basically what this rule is statin... |
Are investor's preference for dividends justified? | Stocks aren't just paper -- they're ownership of a company. Getting cash from a stock that doesn't pay dividends basically means reducing your stake in the company. If the stock pays dividends, on the other hand, you still have the same shares, but now you have cash too. You can choose to buy more of the company...or... |
Are solar cell panels and wind mills worth the money? | I have personally known a family in the hills of Southern Oregon, US who lived off the electricity grid. As far as being "possible" yes, but easy is a certain no. This family was very dedicated to the point of living without grid electricity. A special built home of native field stones, careful alignment with the sun... |
Gigantic point amount on rewards card - what are potential consequences? | First IANAL! This is going to depend on the kind of points. If it's an internal point system that the business is doing on their own, then they may very well, give you that many "extra" points. They may really not care. Specially if the cost of the points is low enough. Remember that steak dinner that you paid $60 for ... |
The Asset Allocation Paradox | Asset Allocation serves many purposes, not just mitigating risk via a diversification of asset classes, but also allowing you to take a level of risk that is appropriate for a given investor at a given time by how much is allocated to which asset classes. A younger investor with a longer timeframe, may wish to take a l... |
How do the returns generated via Equity/Debt investment differ from the returns from a Mutual Fund based on Equity/Debt? | Just sticking to equities: If you are investing directly in a share/stock, depending on various factors, you may have picked up a winner or to your dismay a loser. Say you just have Rs 10,000/- to invest, which stock would you buy? If you don't know, then it’s better to buy a Mutual Fund. Now if you say you would buy... |
What is the valuation of a company based on? | The textbook answer would be "assets-liabilities+present discounted value of all future profit". A&L is usually simple (if a company has an extra $1m in cash, it's worth $1m more; if it has an extra $1m in debt, it's worth $1m less). If a company with ~0 assets and $50k in profit has a $1m valuation, then that implies... |
Understanding highly compensated employees within 401ks | HCE is defined as being above 120k$ or in the top 20 % of the company. The exact cutoff point might be different for each company. Typically, only the base salary is considered for that, but it's the company's (and 401(k)-plan's) decision. The IRS does not require HCE treatment; the IRS requires that 401(k) plans have ... |
If I take a loss when I sell my car, can I claim a capital loss deduction on my income tax return? | While you'd need to pay tax if you realized a capital gain on the sale of your car, you generally can't deduct any loss arising from the sale of "personal use property". Cars are personal use property. Refer to Canada Revenue Agency – Personal-use property losses. Quote: [...] if you have a capital loss, you usually c... |
Getting a USD cheque, without too many fees, and with a sensible exchange rate? | UPDATE: Unfortunately Citibank have removed the "standard" account option and you have to choose the "plus" account, which requires a minimum monthly deposit of 1800 sterling and two direct debits. Absolutely there is. I would highly recommend Citibank's Plus Current Account. It's a completely free bank account avail... |
What is an “at close order” in the stock market? | Usually backtests for (long-term) strategies are evaluated on a end-of-day basis where you only consider close prices. If your strategy performs well in these backtests, hopes are that if you use a market-on-close (MOC) order your performance will not diverge too much from the backtest. The fact that it won't diverge m... |
Is compounding interest on investments a myth? | Compound growth isn't a myth, it just takes patience to experience. A 10% annual return will double the investment not in 10 years, but just over 7. Even though a mortgage claims to use simple interest, if your loan is 5% and there's 14 years to go, $100 extra principal will knock off $200 from the final payment. The... |
Sanity check on choosing the term for a mortgage refinance | One thing you didn't mention is whether the 401(k) offers a match. If it does, this is a slam-dunk. The $303 ($303, right?) is $3636/yr that will be doubled on deposit. It's typical for the first 5% of one's salary to capture the match, so this is right there. In 15 years, you'll still owe $76,519. But 15 * $7272 is $... |
How does a company select a particular price for its shares? | First, keep in mind that there are generally 2 ways to buy a corporation's shares: You can buy a share directly from the corporation. This does not happen often; it usually happens at the Initial Public Offering [the first time the company becomes "public" where anyone with access to the stock exchange can become a par... |
Wash sales + restricted stock in USA: grant date or vesting date? | For restricted stock, I think the vesting date meets the requirements of the second wash sale trigger from IRS Pub 550: Wash Sales: Acquire substantially identical stock or securities in a fully taxable trade I base this on these two quotes from IRS Pub 525: Restricted Property: any income from the property, or the rig... |
Suitable Vanguard funds for a short-term goal (1-2 years) | If you are younger, and you not under undue pressure to buy a home at any particular time, investing in the market is a reasonable way to prepare. Your risk tolerance should be high. Understand that this means you may buy in 3-4 years instead of 1-2 if the market takes a down turn. It took ~3-4 years for the S&P 50... |
Shouldn't a Roth IRA accumulate more than 1 cent of interest per month? | Terminology aside. Your gains for this year in a mutual fund do seem low. These are things that can be quickly, and precisely answered through a conversation with your broker. You can request info on the performance of the fund you are invested in from the broker. They are required to disclose this information to yo... |
Where can I see the detailed historical data for a specified stock? | To see a chart with 1-minute data for a stock on a specific date: For example, here is the chart for TWTR on November 7, 2013 - the day of the IPO: Here is the chart for TWTR on November 8, 2013 - its second day of trading: Here is the chart for TWTR on November 11, 2013 - its third day of trading: |
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