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Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan? | Loans do not carry an "interest balance". You can not pay off "all the interest". The only way to reduce the interest to zero is to pay off the loan. Otherwise, the interest due each month is some percentage of the outstanding principal. Think of it from the bank's perspective: they've invested some amount of money in ... |
How to start personal finances? | I'm assuming you're in Germany or Europe based on your question, but here's an American's perspective that should pertain you you as well: Once you have a steady income and an emergency fund large enough to keep you from going bankrupt, then start learning about retirement and investment options. |
Can I contribute to an IRA from investment income? | Your contributions must come from "compensation". Quoting IRS Publication 590 on IRAs, "Generally, compensation is what you earn from working." So it is unlikely that your stock sale proceeds, if they're your sole source of income, can be used to fund your IRA. If you do have W-2 income, or self employment income, you ... |
OTC Stocks - HUGE gains? | Changing my answer based on clarification in comments. It appears that some of the securities you mentioned, including GEAPP, are traded on what is colloquially known as the Grey Market. Grey Sheets, and also known as the "Gray Market" is another category of OTC stocks that is completely separate from Pink Sheets and t... |
In double entry book-keeping, how should I record writing of a check? | I'm no accounting expert, but I've never heard of anyone using a separate account to track outstanding checks. Instead, the software I use (GnuCash) uses a "reconciled" flag on each transaction. This has 3 states: n: new transaction (the bank doesn't know about it yet), c: cleared transaction (the bank deducted the ... |
Can I rely on my home equity to finance large home repairs? | Personally, I'd use my emergency fund first. It is unlikely (though possible, of course) that I will entirely lose my income at the same time I need to replace my roof or my furnace. I'd rather pay my emergency fund back with installment payments than pay off a HELOC to my bank. The lost interest on my emergency fund, ... |
Is there any reason not to put a 35% down payment on a car? | If you are going to finance a used car, it is frequently best to arrange financing before you even pick out the car. The easiest way I recommend is to talk to a local credit union or two. They'll be able to tell you your interest rate and terms without having to talk to the dealer at all. Most likely, they'll be ... |
PayPal wants me to “add a bank account”, another funding source. Credit card isn't working. Why? | I've used PayPal for my business for a long time. Sometimes PayPal doesn't trust credit cards. Debit or direct bank transfer are reliable. There is also a charge for using a credit card but I don't think that is the reason. You may be trying to purchase a high value item. That would be a possible reason why PayPal allo... |
How can I set up a recurring payment to an individual (avoiding fees)? | I think about as close as you're going to get is to use a personal PayPal account, and set up a reminder to yourself to log in and send the money. (Because, as you said, setting up a recurring payment is a business account thing.) From PayPal's website: Sending money – Personal payments: It's free within the U.S. to s... |
Canceling credit cards - insurance rate increase? | Your credit score can be part of the algorithm for setting your rates for auto insurance. It is one of many factors including sex, age, zip code, driving record, type of car... There are some states that are concerned about using credit scores, some sates have passed legislation regarding this issue |
Why is the stock market price for a share always higher than the earnings per share? | Think about the implications if the world worked as your question implies that it "should": A $15 share of stock would return you (at least) $15 after 3 months, plus another $15 after 6 months, plus another after 9 and 12 months. This would have returned to you $60 over the year that you owned it (plus you still own ... |
How can I determine how much my car insurance will cost me? | The best way to determine how much it will cost you is to call the insurance companies to get a quote from them for all the vehicles that you are planning on purchasing. They will have a set amount depending on the year/make/model of the car combined with all your personal details like where you live, age, sex, occupa... |
How much money should I lock up in my savings account? | One issue which I don't see addressed in the answers so far is how to structure bank accounts to get the highest return possible. What you're describing sounds like a certificate of deposit (CD): 'ranging from 1% for 9 months to 2.3% for 5 years' There is a concept which was once more common called a CD Ladder, which s... |
Can a company donate to a non-profit to pay for services arranged for before hand? | People put conditions on donations all the time. They donate to the Red Cross for a specific disaster. The donate money to a church for the building fund. They donate money to a hospital to buy a new x-ray machine. They donate money to the scouts for a new dining hall. It is possible to donate money to a non-profit fo... |
Why is economic growth so important? | Wealth is not distributed equally in any economy. And, even if it were, differentiation between people would lead to different interests being expressed in different ways. As people either attempt to earn more (to improve their situation) or different people express those interests in different ways (saving money to g... |
If I own x% of company A, and A buys company B, do I own x% of B? | Ok, so imagine I own x% of Facebook and Facebook buys WhatsApp, does this mean I own x% of WhatsApp? Yea definitely , you own x% of Whatsapp assuming Facebook buys 100% of WhatApps which is in this case How much shares of FaceBook do I need to own to have access to WhatsApp's books? As WhatsApp is a privately held... |
What's the catch in investing in real estate for rent? | There are those who are knowledgable in real estate who offer rules of thumb: Don't pay more that 50X the rent for the house. Here, $972 x 50 is $48600. Assume half the rent goes to expenses. So from $972, you net $486, and after that mortgage, you have $111 in profit. Zillow usually assumes 20% down, here $20K. So you... |
Unmarried couple buying home, what are the options in our case? | Personally I would advise only buying what you can afford without borrowing money, even if it means living in a tent. Financially, that is the best move. If you are determined to borrow money to buy a house, the person with income should buy it as sole owner. Split ownership will create a nightmare if any problems deve... |
Swiss-style Monetary Policy | I'm not sure what is traditionally meant by "Swiss-style monetary policy" but lately it has meant the same thing as US monetary policy, or Japanese monetary policy, or Euro monetary policy: PRINT. Look how many Swiss Francs it takes to buy a currency that cannot be printed: I'm not sure why they would be touting "Swis... |
Different ways of looking at P/E Ratio vs EPS | You could not have two stocks both at $40, both with P/E 2, but one an EPS of $5 and the other $10. EPS = Earnings Per Share P/E = Price per share/Earnings Per Share So, in your example, the stock with EPS of $5 has a P/E of 8, and the stock with an EPS of $10 has a P/E of 4. So no, it's not valid way of looking at t... |
In 2015, why has the price of natural gas been plummeting? | You do not hold leveraged ETF for longer than a few days. You have UGAZ and DGAZ, both 3x leveraged, one longs one shorts. What happens if you buy both? You don't get 0% return. In fact, you get -10% return if you hold both for 3 months. No matter what happens, they both go down in long term. Call it Leverage Deca... |
Why do shareholders participate in shorting stocks? | One thing no one else has touched on is the issue of time frame. If I'm looking to hold my shares over the next few years, I don't mind riding out a few short-term bumps, while the short-seller is looking to make a quick profit on some bad news. Sure, I could sell and rebuy, but that's a lot of hassle, not to mention c... |
In US, is it a good idea to hire a tax consultant for doing taxes? | Good professional tax advice is expensive. If your situation is simple, then paying someone doesn't give you more than you could get from a simple software package. In this case, doing your own taxes will save you money this year, and also help you next year, as your situation grows steadily more complex. If you don't... |
15 year mortgage vs 30 year paid off in 15 | Yes. It does cost the same to pay off a "15 year in 15" year versus a "30 year in 15 year" mortgage. After all, the 30 year amortization period is only used by the lender to calculate the monthly payment he'll expect, while, unbeknownst to him, you are using a 15 year amortization and the same rate to calculate the p... |
Do credit checks affect credit scores? | There are two types of credit checks. First is the hard pull which is typically done when you apply for a credit line. The lender will hard pull your file and make his/her decision based on that. This affects your score negatively. You might lose few points for one hard inquiry. Second type is soft pull, which is done ... |
What would I miss out on by self insuring my car? | Insurance is to mitigate risk you can't handle yourself. (All insurance, not just car insurance.) The expected value of the insurance will always cost more than the expected value of your loss, that's how the insurance company makes money. But sometimes the known fixed cost is better for your ability to sleep at nig... |
Computer vendor not honoring warranty. What's the next step? | You're probably best off going to a different store to fix the computer. Right now you don't have "damages." You could sue him but, there's no thing to sue for. If you sue for your original costs, you'd have to return the computer and probably only receive a portion of your original costs, less court filing fees. If ... |
Does keeping 'long-term' safety net in bonds make sense? | I am understanding the OP to mean that this is for an emergency fund savings account meant to cover 3 to 6 months of living expenses, not a 3-6 month investment horizon. Assuming this is the case, I would recommend keeping these funds in a Money Market account and not in an investment-grade bond fund for three reasons: |
How exactly could we rank or value how “rich” a company brand is? | Those rankings in particular that you cite are compiled by Millward Brown and the methodology is explained like this: |
If the co-signer on my car loan dies, can the family take the car from me like they're threatening to? | Possession is 9/10 of the law, and any agreement between you and your grandfather is covered under the uniform commercial code covering contracts. As long as your fulfilling your obligation of making payments, the contract stands as originally agreed upon between you and the lender. In short, the car is yours until y... |
What is the correct answer for percent change when the start amount is zero dollars $0? | As has been said before, going from nothing to something is an infinite percent increase! It is not 100%. Maybe you had a dollar and now have $101 that is a 10000% increase! Quite remarkable. I often work with symmetrized percent changes like: spc = 100 * (y2-y1)/(0.5 * (y1+y2)) Where I compute the percent with respect... |
Should I cash out my Roth IRA to pay my mother's property tax debt, to avoid foreclosure on her home? | @foreverBroke - Ok, here are the questions - Is mom's house paid for in full? If there's any mortgage, is it current? If not, what are the numbers? Is it underwater, i.e. owe more that it's worth? Will the tax department talk to you and negotiate? Maybe let you make payments over time? If you have that kind of cash fl... |
Why would a stock opening price differ from the offering price? | The offering price is what the company will raise by selling the shares at that price. However, this isn't usually what the general public sees as often there will be shows to drive up demand so that there will be buyers for the stock. That demand is what you see on the first day when the general public can start buy... |
Buy car vs lease vs long term rent for 10 years period | If you plan to keep this asset for ten years then you can take the deprecation of its cost over that time period. For simplicity lets treat that as 120 monthly payments. So at a purchase price of $60,000 you are committing around $500 per month not including vehicle maintenance. I typically allocate around 20 percent o... |
Investment Newbie - Options in India - For $10K - for 10 years | I would suggest you to put your money in an FD for a year, and as soon as you get paid the interest, start investing that interest in a SIP(Systematic investment plan). This is your safest option but it will not give you a lot of returns. But I can guarantee that you will not lose your capital(Unless the economy fails... |
Are you preparing for a possible dollar (USD) collapse? (How?) | I recently finished reading a book that you may be interested in based on your question, The Ultimate Suburban Survivalist Guide. The author begins with a discussion of why he thinks the US economy and currency could collapse. It gets a little scary. Then he goes into great detail on commodities, specifically gold. The... |
Explanation on Warren Buffett's famous quote | I think he was trying to say that in the long term the company's fundamental intrinsic value will drive the price of a company's stock, but in the short term stocks move on emotion and publicity that are not necessarily a reflection of their true underlying value. |
What does an x% inflation rate actually mean? | Inflation is an attempt to measure how much less money is worth. It is a weighted average of some bundle of goods and services price's increase. Money's value is in what you can exchange it for, so higher prices means money is worth less. Monthly inflation is quoted either as "a year, ending on that month" or "since t... |
How to find a good third-party, 401k management/advice service? | Another option to a human advisor is FutureAdvisor, a web service that (if it supports your 401k plan) gives personalized algorithmic advice on what you should hold in your 401(k) and other retirement accounts. If it doesn't support your 401(k) plan just yet you can sign up to be emailed when your plan is added. [Dis... |
How should I save money if the real interest rate (after inflation) is negative? | (Real) interest rates are so low because governments want people to use their money to improve the economy by spending or investing rather than saving. Their idea is that by consuming or investing you will help to create jobs that will employ people who will spend or invest their pay, and so on. If you want to keep thi... |
To use a line of credit or withdraw from savings | No one can really answer this for you. It is a matter of personal preference and the details of your situation. There are some really smart people on here, when placed in your exact situation, would do completely different things. Personal finance is overall, personal. If it was me, I'd never borrow money in retirem... |
How to calculate car insurance quote | Former software developer at an insurance company here (not State Farm though). All of the above answers are accurate and address how the business analysts come up with factors on which to rate your quote. I wanted to chime in on the software side here; specifically, what goes into actually crunching those numbers to p... |
Should I buy out my brother on a property we will inherit before making improvements? | In the end you, your dad, and your brother should come to an agreement so there's no surprises or unfulfilled expectations, but here's my opinion: If you can afford to make the additions now: I would offer to pay fully for the addition, with the understanding that the additional value that it generates is yours. That ... |
How can I live outside of the rat race of American life with 300k? | Even with a good investment strategy, you cannot expect more than 8-10% per year in average. Reducing this by a 3% inflation ratio leaves you with 5 - 7%, which means 15k$ - 21k$. Consider seriously if you could live from that amount as annual income, longterm. If you think so, there is a second hurdle - the words in a... |
Unable to understand logic behind why there is no exit load on liquid fund | Imagine that a fund had a large exit load that declined over several years. If you wanted to sell some or all of your investment in that fund you would face a large fee, unless you held it a long time. You would be hesitant to sell because waiting longer would save you money. That is the exact opposite of a liquid inve... |
Should I buy out my brother on a property we will inherit before making improvements? | If your father is still able to make financial decisions and sign contracts, I see a better option. Have your father borrow against his equity to finance the renovation. Example: the house is worth 400 now. He can borrow 100 against that. He spends it on the addition, making the house worth 500, with the same 400 of e... |
Cons of withdrawing money from an Roth IRA account? | One "con" I have not yet seen mentioned: retirement accounts are generally protected from creditors in a bankruptcy. There are limits and exceptions, Roth has a 1.2 million dollar limit and can be split by a divorce QDRO for instance. Link Since it seems you have no income this year, you may may be raiding your IRA f... |
Everyone got a raise to them same amount, lost my higher pay than the newer employees | Why do you think you are entitled to "fairness"? In this world you get what you get. I am pretty sure your employer is not paying you for how you "feel" either. And by-the-way turning up on time and not leaving early is not exceptional behaviour; it is expected behaviour. Bottom line: do you add more value to your empl... |
Paying Off Principal of Home vs. Investing In Mutual Fund | The mathematically correct answer is to invest, because you'll get a higher rate of return. I think that answer is bunk -- owning your home free and clear is a huge burden lifted off of your shoulders. You're at an age where you may find a new job, business, personal or other opportunities will be easier to take advant... |
Official site to follow Warren Buffet's Berkshire Hathaway change in investment holdings? | The official source is the most recent Form 13F that Berkshire Hathaway, which is filed with the Securities & Exchange Commission on a quarterly basis . You can find it through the SEC filing search engine, using BRKA as the ticker symbol. and then looking for the filings marked 13-FR or 13-FR/A (the "/A" indicates a... |
Do individual stocks have futures trading | Things very similar to the idea of a "future" that routinely apply to single stocks are "warrants" and "options". |
United Kingdom: Where to save money for a property deposit | The chancellor announced an ISA in this week's budget intended for people saving to buy their first home. For every £200 put in the government will add £50 to the account so I would strongly encourage you to put the money into that as it is also tax free. |
How to check stock prices online? | Yes, there are a lot of places you can research stocks online, Google Finance, Yahoo Finance, Reuters etc. It's important to understand that the price of the stock doesn't actually mean anything. Share price is just a function of the market capitalization divided by the number of shares outstanding. As an example tak... |
Would I ever need credit card if my debit card is issued by MasterCard/Visa? | I haven't had a credit card in fifteen years. I use nothing but my debit card. (I find the whole idea of credit on a micro scale loathsome.) I have yet to encounter a single problem doing so, other than a lower than usual credit score for not keeping 23(!!!) revolving lines of credit open, or that's the number CreditKa... |
Is there such a thing as “stock insurance”? | Yes, you can insure against the fall in price of stock by purchasing a put option. You pay for a put and if the price of the share falls below the "strike price" of the put, then you can exercise the put. On exercise, the person who sold you the put contract agrees to buy the stock for the strike price, even though t... |
Why liquidity implies tight spread and low slippage | Theoretically, it's a question of rate of return. If a desired or acceptable rate of return for market makers' capital is X, and X is determined by the product of margin & turnover then higher turnover means lower margin for a constant X. Margin, in the case of trading, is the bid/ask spread, and turnover, in the case... |
Should I put more money down on one property and pay it off sooner or hold on to the cash? | I would go with the 2nd option (put down as little as possible) with a small caveat: avoid the mortgage insurance if you can and put down 20%. Holding your rental property(ies)'s mortgage has some benefits: You can write off the mortgage interest. In Canada you cannot write off the mortgage interest from your primary ... |
Is it bad etiquette to use a credit or debit card to pay for single figure amounts at the POS | I would like to offer a different perspective here. The standard fee for a credit card transaction is typically on the order of 30 cents + 2.5% of the amount (the actual numbers vary, but this is the ballpark). This makes small charges frequently unprofitable for small merchants. Because of this they will often have m... |
Can you step up your cost basis indefinitely via the 0% capital gains rate? | As JoeTaxpayer illustrated, yes you can. However, one thing to remember is that unless you live in a state with no state income tax, there may be state tax to pay on those gains. Even so, it's likely a good idea if you expect either your income (or the federal capital gains tax rate) to rise in the future. |
How do I find a good mutual fund to invest 5K in with a moderately high amount of risk? | The "Money 70" is a fine list: http://money.cnn.com/magazines/moneymag/bestfunds/index.html Money magazine is usually more reasonable than the other ones (SmartMoney, Kiplinger's, etc. are in my opinion sillier). If you want a lot of depth, the Morningstar Analyst Picks are useful but you have to pay for a membership w... |
Dealing with event driven market volatility | If you're worried about volatility, and you're in mostly long positions, you should be looking to diversify your portfolio (meaning, buying some stocks that will do better in a bear market) if it's not already diverse, but you shouldn't be looking to abandon your positions, unless you anticipate a short-term need for c... |
Choosing the “right” NAPFA advisor, and whether fees are fair, etc.? | Some sample prices for straightforward pay-for-hours-or-deliverables planners: I think I've seen some similar rates elsewhere, too. I'd feel like you might get something perfunctory and boilerplate for too much less than $1000 - how could the person afford to spend much time? - and I'd feel like lots more than $1000 fo... |
What risks are there acting as a broker between PayPal and electronic bank transfers? | Another reason to think it's a scam: fake paypal email notifications are a thing. I've seen one that was quite convincing (but it wasn't mine to properly analyse or report), so the intial payment may be a fake from another account belonging to the scammer, and you've just transferred money to the scammer. The fake ema... |
Prepaying a loan: Shouldn't the interest be recalculated like a shorter loan? | Forget about terms. Think about loans in terms of months. To simplify things, let's consider a $1000 loan with .3% interest per month. This looks like a ten month term, but it's equally reasonable to think about it on a month-to-month basis. In the first month, you borrowed $1000 and accrued $3 interest. With the... |
How can I find/compare custodians for my HSA in the United States? | In general, things to look for are: Things to look out for: I'd recommend two places: I'd recommend reading up on HSA's in this related question here. |
Which credit card is friendliest to merchants? | Accepting cash isn't free to the merchant's either. It needs to be counted, reconciled, stored, and taken to the bank each day. There is a certain amount that needs to be on-hand, not in the bank earning interest. There is more of a worry about employees taking cash from the register. There is the chance of inadvert... |
Do other countries have the equivalent of Australia's Negative Gearing? | In India, where I live, you can: In addition, housing loans are given priority status as well - bank capital requirements on housing loans is lower than for, say, a corporate loan or a loan against other kinds of collateral. That makes housing loans cheaper as well - you get a home loan at around 10% in India versus 15... |
Insurance company sent me huge check instead of pharmacy. Now what? | Checks are awesome things in that, even if it gets lost the money doesn't change hands until the check is cashed. I would highly recommend NOT signing a check over and putting it in the mail though. Essentially putting your signature on it is saying yes, pay to whomever. Theoretically acceptable, rarely a good idea. Ca... |
Setting a trailing stop loss at $39.70 bid price, stock sold at $41 | There could be a number of reasons: The price hit your number ($39.70) but by the time your order hit the market, the price had gone up. Perhaps the stock went up between when you placed the stop loss and when the order was executed. A trailing stop loss will ratchet up: Very simply, the trailing stop maintains a stop-... |
What would happen if the Euro currency went bust? | These rumors are here just to help dollar stay alive. Euro have problems, but they are rather solvable, unlike dollar situation. Even if something wrong would happen - countries would return to their national currencies, mainly Germany & France are important here. This does not means that EuroUnion would be destroyed -... |
How can I avoid international wire fees or currency transfer fees? | Be aware that ATM withdrawals often generate hidden fees, which are not obviously declared. Many banks operate e.g. with a currency exchange fee, giving you an exchange rate some 1-2% lower than actually applicable. If you withdraw larger amounts, such a currency exchange fee easily adds up to what you would have paid ... |
Is there a way to take advantage of nice numbers? | You'd need millions of dollars to trade the number of shares it would take to profit from these penny variations. What you bring up here is the way high frequency firms front-run trades and profit on these pennies. Say you have a trade commission of $5. Every time you buy you pay $5, every time you sell you pay $5. ... |
Why do I see multiple trades of very small quantities? | Probing for hidden limit orders usually involves sending the orders and then cancelling them before they get filled if they don't get filled. With trades actually going through multiple times for small amounts it looks more like a VWAP strategy where the trader is feeding small volumes into the market as part of a larg... |
Is it worth it to reconcile my checking/savings accounts every month? | I don't use debit cards, but if I did I would review that portion of the statement. I look at my credit card statements pretty closely, and probably catch one or two mistakes or things I want to question every year. |
New company doesn't allow 401k deposits for 6 months, what to do with money I used to deposit? | Two options not mentioned: -No information about your emergency fund in your question. If you don't have 6 months of expenses saved up in a "safe" place (high yield savings account or money market fund) I'd add to that first. -Could you auto-withdraw the amount over six months, then when you can start contributing, con... |
Is it worth it to buy TurboTax Premier over Deluxe if I sold investments in a taxable account? | I have used turbo tax for years. Apart from the snafu in 2014, I have had no problem using deluxe, and I have lots of asset sales to report. I prefer form mode anyway. I can import the data from my broker, and I can e-file with no problem. So the only thing I'm missing is the support. I can usually find answers to ... |
“Convertible -debt/note/bond/debentures” which of these are the same or different? | They all basically mean the same thing - a type of debt than can be exchanged for (converted into) equity at some point. It's only the mechanics that can be different. A convertible bond is structured just like a regular bond - it (usually) pays periodic interest and has a face value that's due at maturity. The differe... |
Under specific conditions can I write off Spotify or other streaming audio services? | Nice try. No. If you were in the music industry, you might have a case. Depending on the exact job, certain things related to music would be a business expense. I don't see how this would pass an audit as it really is unrelated to the work you do. |
Where can I trade FX spot options, other than saxobank.com? | Oanda.com trades spot forex and something they call box options, it's not quite what you are looking for, but maybe worth looking up. |
How to properly do background check for future tenant in my own house? | I am a realtor. For our rental business, we use a service that offers a background check. It costs us about $25, and it is passed along in the form of an application fee. I suggest you contact a local real estate agent who you know does rentals. Have a conversation about what you are doing, and see if they will help p... |
How much can I withdraw from Betterment and be considered long-term investment? | No matter what, you owe taxes on the gains, known as capital gains. How much, depends on how long you invested it for. In your example, each month is treated separately - each month you contribute starts a new clock on that set of investments. If you hold it for longer than a year, the taxes are treated as long-term, a... |
Regarding Australian CBS takeover of TEN | they are purchasing the company" is this correct? Yes this is correct. If I purchase a "company" here in Australia, I also purchase its assets and liabilities Yes that is correct. How can it be NIL? How can it be legal? The value of shares [or shareholders] is Assets - liabilities. Generally a healthy company has Asset... |
What does the term “match the market” mean? | If your returns match the market, that means their rate of return is the same as the market in question. If your returns beat the market, that means their rate of return is higher. There's no one 'market', mind you. I invest in mutual funds that track the S&P500 (which is, very roughly, the U.S. stock market), that tra... |
Professional investment planning for small net-worth individual in bearish market | You're going to have a hard time finding a legit investment planner that is willing to do things like take short-term positions in shorts, etc for a small investor. Doing so would put them at risk of getting sued by you for mismanagement and losing their license or affiliation with industry associations. |
Confirming that stocks are listed under my name | The answer to your question is "no". Unless you specifically ask to receive paper share certificates, then brokers will hold your shares with a custodian company in the broker's own nominee account. If you are able to receive paper certificates, then the registrar of the company whose shares you own will have a record... |
“No taxes to be paid with owning Berkshire” | It depends on your investment profile but basically, dividends increase your taxable income. Anyone making an income will effectively get 'lower returns' on their investments due to this effect. If you had the choice between identical shares that either give a dividend or don't, you'll find that stock that pays a divid... |
Saving tax for long term stock investment capital gain by quiting my current job? | The capital gain is counted as part of your income. So with a million capital gain you will be in a high tax bracket, and have to pay the corresponding capital gains tax rate on the million. |
30% share in business | Get involved a lawyer and Accountant. Without it you may not be sure what you are getting. What exactly will 30% mean for me? It will mean exactly what gets written in contract. It can mean you are owner of 30% of the company. If this is structured as partnership, it would also mean you are party to 30% loss. It can me... |
Mortgage or not? | Buy a rental property instead. You get tax benefits as well as passive income. And it pays for itself |
Condo Purchase - Tax Strategies [US] | You will need to see a tax expert. Your edited question includes the line For the short term, we will be "renting" it to my wife's grandmother at a deep discount. According to the instructions for schedule E If you rented out a dwelling unit that you also used for personal purposes during the year, you may not be abl... |
How to calculate Price/Earnings - Price/Sales - Price/Free Cash Flow for given stock | To calculate you take the Price and divide it by the Earnings, or by the Sales, or by the Free Cash Flow. Most of these calculations are done for you on a lot of finance sites if the data is available. Such sites as Yahoo Finance and Google Finance as well as my personal favorite: Morningstar |
A debt collector will not allow me to pay a debt, what steps should I take? | This may not apply in your particular situation, but I think it's important to mention: When a debt collector doesn't act like a debt collector, it may be because they aren't actually a debt collector. It's certainly strange that someone called you to collect money from you, and when you asked for a simple document, th... |
Are forward curves useful tools for trading decisions and which informations can be gathered from them? | The forward curve for gold says little, in my opinion, about the expected price of gold. The Jan 16 price is 7.9% (or so) higher than the Jan 12 price. This reflects the current cost of money, today's low interest rates. When the short rates were 5%, the price 4 years out would be about 20% higher. No magic there. (The... |
How are mortgage interest rates determined? | Sheegan has a great explanation of how the TBA market contributes to mortgage rates. The 30 Year Mortgage rates are closely tied to the 10-Year Treasury. One can track this rate at many stock quoting sites using symbol TNX. |
Does a stock really dip in price on the ex-dividend date? And why would it do this? | Suppose the price didn't drop on the ex-dividend date. Then people wanting to make a quick return on their money would buy shares the day before, collect the dividend, and then sell them on the ex-dividend date. But all those people trying to buy on the day before would push the price up, and they would push the price ... |
Bonus issue - Increasing share capital | Fully Paid up Partly Paid up: A company may issue stock to you which is only partly paid up, for example, a company may issue a stock of face value 10 to you and ask you to pay 5 now and other 5 will be adjusted later by some other mechanism. This stock shall be partly paid up. Usually, these stocks are issued in diffe... |
What choices should I consider for investing money that I will need in two years? | If you ever need the money in three years, imagine that today is 2006 and you need the money in 2009. Keep it in savings accounts, money-markets, or CDs maturing at the right time. |
What is the smartest thing to do in case of a stock market crash | First, there will always be people who think the market is about to crash. It doesn't really crash very often. When it does crash, they always say they predicted it. Well, even a blind squirrel finds a nut once in a while. You could go short (short selling stocks), which requires a margin account that you have to quali... |
What is the median retirement savings in the United States today? | I find this very hard to believe Believe it. The bottom quarter of American households have negative net worth, and the bottom three quarters have no more than a tiny amount saved up. https://en.wikipedia.org/wiki/Wealth_in_the_United_States#/media/File:MeanNetWorth2007.png In an emergency, 63% of Americans would not ... |
Can one use dollar cost averaging to make money with something highly volatile? | if you know when and by how much something will fluctuate, you can always make money. Buy it when it's cheaper and sell it when it's more expensive. If you just know that it fluctuated a lot recently, then you don't know what it will do next. Most securities that go to zero or go much higher bounce all over the place f... |
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