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How do I hedge stock options like market makers do? | Buying the underlying asset will not completely hedge you, only what lies above 155 dollars (strike + price of option) - you still have the risk of losing everything but 5. You have a maximum earnings-potential of 55 dollars (strike of 150 - investment of 100 + option of 5) but you have a risk of losing 95$ (investment... |
question about short selling stocks | If you had an agreement with your friend such that you could bring back a substantially similar car, you could sell the car and return a different one to him. The nature of shares of stock is that, within the specified class, they are the same. It's a fungible commodity like one pound of sand or a dollar bill. The o... |
Military Separation | Welcome to Money.SE, and thank you for your service. In general, buying a house is wise if (a) the overall cost of ownership is less than the ongoing cost to rent in the area, and (b) you plan to stay in that area for some time, usually 7+ years. The VA loan is a unique opportunity and I'd recommend you make the most... |
Where do short-term traders look for the earliest stock related news? | I work for a fund management company and we get our news through two different service providers Bloomberg and Thomson One. They don't actually source the news though they just feed news from other providers Professional solutions (costs ranging from $300-1500+ USD/month/user) Bloomberg is available as a windows instal... |
What's the benefit of opening a Certificate of Deposit (CD) Account? | Yes. Savings accounts and CDs today pay almost nothing. They are not a way to grow your money for the future. They are a place to keep some spare cash for emergencies. I don't have such accounts any more. Personally, I generally keep about $2000 in my checking account for any sudden surprise expenses. Any other spare m... |
Importance of dividend yield when evaluating a stock? | Dividend yields can also reflect important information about the company's status. For example, a company that has never lowered or stopped paying dividends is a "strong" company because it has the cash/earnings power to maintain its dividend regardless of the market. Ideally, a company should pay dividends for at leas... |
How can I help others plan their finances, without being a “conventional” financial planner? | I think it's great that you want to contribute. Course Instructor You may want to take a look at becoming an instructor for a course like Dave Ramsey's Financial Peace University. These are commonly offered through churches and other community venues for a fee. This may be a good fit if you want to focus on basic finan... |
When to register for a bank account for a C-Corp with no official money | Technically, it's only when you need to pass money through. However consider that the length the account has been open builds history with the financial institution, so I'd open ASAP. Longer history with the bank can help with getting approved for things like business credit lines, business cards, and other perks, thou... |
When should I open a “Line of credit” at my bank? | There are two basic types of lines of credit typically offered at a retail bank: Overdraft line of credit is essentially a revolving personal loan that you can draw upon as needed or automatically draw on when you overdraw on your checking account. Typically with a commercial bank there is a fee to use the automatic ov... |
What did John Templeton mean when he said that the four most dangerous words in investing are: ‘this time it’s different'? | Essentially, he means "one ignores history at their own peril". We often hear people arguing that "the old rules no longer apply". Whether it be to valuations, borrowing, or any of the other common metrics, to ignore the lessons of the past is to invite disaster. History shows us that major crises in the markets usu... |
Income tax on my online drop-shipping business (India) | Please consult a tax advisor. You may be voilating the FEMA [Foreign Exchange Management Act] and can land into trouble. Further what you are doing can land up into various other acts as illegal including AML. Further if there is income generated by Indian citizen in India, he is still liable to pay tax, irrespect... |
What is meant by one being in a “tax bracket”? | Tax brackets refer to the range of taxable within which you fall. An income tax bracket usually refers to federal or state tax, not the combined rate. I have put here the tax brackets for 2016 for IRS and State of California. https://www.irs.com/articles/2016-federal-tax-rates-personal-exemptions-and-standard-deductio... |
How does the Pension system work in Poland? | littleadv's answer gives a concise summary of the system as it stands now, but much more changed than just the portion of the mandatory contribution that was diverted to the private plan. In broad terms, the balances of your accounts and your future benefit won't change. It's only the source of these benefits that's ch... |
Jointly filing taxes in 2 different states | Both states will want to tax you. Your tax home is where you maintain a domicile, are registered to vote, etc. and you will probably want to keep this as MA since you state that MA is your permanent residence and you are staying in a rented place in PA. But be careful about voter registration; that is one of the items ... |
What does it mean to long convexity of options? | Long convexity is achieved by owning long dated low delta options. When a significant move occurs in the underlying the volatility curve will move higher. Instead of a linear relationship between your long position and it's return, you receive a multiple of the linear return. For example: Share price $50 Long 1 (equals... |
Google Finance gain value incorrect because of currency fluctuation | You can easily build a Google Sheet spreadsheet to track what you want as Sheet has a 'googlefinance()' function to look-up the same prices and data you can enter and track in a Google Finance portfolio, except you can use it in ways you want. For example, you can track your purchase price at a fixed exchange rate, tra... |
Do you know of any online monetary systems? | Edit: I discovered Bitcoin a few months after I posted this answer. I would strongly recommend anyone interested in this question to review it, particularly the myths page that dispels much of the FUD. Original answer: Although it is not online, as a concept the Totnes Pound may be of interest to you. I live quite clos... |
How many days does Bank of America need to clear a bill pay check | This is based on my experience with Chase and may not be applicable to other banks. As you mentioned Chase as one of the banks you do business with hopefully this will be helpful to you. The money does come out of your account immediately. If the check isn't cashed in a certain amount of time, the check expires and you... |
I have an extra 1000€ per month, what should I do with it? | What about getting the saving account - "Bausparen" (~100EUR/month) which you can later use for credit to get better mortgage deal and to buy a flat for renting to others (Anlegerwohnung)? |
Income At the Sell or Reception? | It looks like fair-market value when you receive your virtual currency is counted as income. And you're also subject to self-employment tax on that income. Here's an FAQ from the IRS: Q-8: Does a taxpayer who “mines” virtual currency (for example, uses computer resources to validate Bitcoin transactions and maintain ... |
Higher returns from international markets? | Foreign stocks tend to be more volatile -- higher risk trades off against higher return potential, always. The better reason for having some money in that area is that, as with bonds, it moves out-of-sync with the US markets and once you pick your preferred distribution, maintaining that balance semi-automatically take... |
Moving savings to Canada? | It is absolutely feasible to move your savings into Canada. There are a few ways you can do it. However it is unlikely you will benefit or avoid risk by doing so. You could directly hold your savings in the CAD. Investing in Canadian bonds achieves a similar goal as holding your money in the CAD. By doing so you will b... |
Insurance for a house which is not homeowners insurance? | What you need will depend on a number of factors that aren't clear from the question. This coverage is simply called "Vacant home insurance", but not all companies are willing to offer this coverage. Unfortunately, in New York, insurers can also legally drop your standard homeowners' coverage if they become aware that ... |
How much of a down payment for a car should I save before purchasing it? | Do you need the car, or is this an optional purchase for you? Do you currently have a car that is in good working order? If you can continue to save for the car instead of buying now, you'll be getting interest on what you've saved -- and that's a lot better than 0% financing. |
Why don't institutions share stock recommendations like Wall Street analysts? | Institutions may be buying large quantities of the stock and would want the price to go up after they are done buying all that they have to buy. If the price jumps before they finish buying then they may not make as great a deal as they would otherwise. Consider buying tens of thousands of shares of a company and the... |
Purchasing options between the bid and ask prices, or even at the bid price or below? | This sometimes happens to me. It depends on how liquid the option is. Normally what I see happening is that the order book mutates itself around my order. I interpret this to mean that the order book is primarily market makers. They see a retail investor (me) come in and, since they don't have any interest in this illi... |
where to get stock price forecast | First, stock prices forecasts are usually pretty subjective so in the following resources you will find differing opinions. The important thing is to read both positive and negative views and do some of your additional research and form your own opinion. To answer your question, some analysts don't provide price target... |
Are 'no interest if paid in in x months' credit cards worth it? | You can't buy it outright. You can't take the time to save up. if the remaining choice is between a card that charges from day one, and a card with this kind of grace period, the grace card is the better choice. Plan wisely, pay it in full before that rate starts to be charged. One additional note - There are two group... |
Scam or Real: A woman from Facebook apparently needs my bank account to send money | 100% scam. Run away. If you have already given the bank account, inform the bank and close the account. Else just close the new account opened. Do not contact the scammer or reply back.... Just ignore ... Don't read any of scammer email, they are very convincing in why it's right and why it's not a scam. |
The spread goes to the market maker, is the market maker the exchange? | Joke warning: These days, it seems that rogue trading programs are the big market makers (this concludes the joke) Historically, exchange members were market makers. One or more members guaranteed a market in a particular stock, and would buy whatever you wanted to sell (or vice-versa). In a balanced market -- one wher... |
Investing in hemp producers in advance of possible legalization in Canada? | Hemp is already pretty easily grown by farmers here. Canada had 50,000 acres of legal hemp in 2006, but it's been in decline the last 3 years due to the cost, lack of demand, and the high values of some other crops. It's also difficult to harvest due to its size. It's possible that the demand for hemp products will i... |
What should I do about proxy statements? | You own a fractional share of the company, maybe you should care enough to at least read the proxy statements which explain the pro and con position for each of the issues you are voting on. That doesn't seem like too much to ask. On the other hand, if you are saying that the people who get paid to be knowledgeable abo... |
Why is it rational to pay out a dividend? | Paying out dividends and financing new projects with debt also lessens the agency problem. The consequences of a failed project are greater when debt is used, so the manager now has a greater incentive to see that the project is a success. This, in addition to the paid divided is a benefit to the shareholder. If equity... |
In what state should I register my web-based LLC? | In GA, LLC fees are $50 a year. Incorporating is a one time $100 fee. This information is current as of September 2013. |
How to handle capital gains on a Virginia Individual Income Tax Return | In Virginia the maximum tax rate on income is 5.75% which is the same as the capital gains rate. http://www.tax.virginia.gov/income-tax-calculator |
Considering investing in CHN as a dividend stock | CHN is a Closed-End Fund. CHN actually pays out three types of distributions: In the case of CHN, they appear to be paying yearly. The most recent dividend, with exdate of 18 Dec 2014, consisted of $3.4669 of Long-term capital gains and $0.2982 cash dividend. Prior to that, the dividend with exdate of 19 Dec 2013 cons... |
If a country can just print money, is global debt between countries real? | The debt is absolutely real. China loans money to US via buying the US treasury bonds. The bond is essentially a promise to pay back the money with interest, just like a loan. As you point out, the US can print money. If this were to happen, then the USD that the owner of a treasury bond receives when the bond matures ... |
How do currency markets work? What factors are behind why currencies go up or down? | The fiat currency is the basis for currency markets - that is, currency that is not made of precious metals. The factors that influence what the value of a fiat currency are the state of the country's economy, what the gov't says the value should be, their fiscal policies, as well as what the currency is trading at. ... |
Why do people buy stocks at higher price in merger? | Microsoft wants to buy a majority in the stock. To accomplish that, they have to offer a good price, so the current share owners are willing to sell. Just because the CEO of LinkedIN agreed to the deal doesn't really mean much, only that he is willing to sell his shares at that price. If he does not own 50%, he basical... |
US tax for a resident NRI | Please declare everything you earn in India as well as the total amount of assets (it's called FBAR). The penalties for not declaring is jail time no matter how small the amount (and lots of ordinary people every 2-3 years are regularly sent to jail for not declaring such income). It's taken very seriously by the IRS -... |
Why is gold not a good investment? | If you buy a gold brick and put it in a pillow, after one year you still have one gold brick. People may value it more than before or less then before, but it's still the one gold brick you had. If you buy a cow and put it on a pasture, after one year you have a fatter cow and plenty of milk. You now have more of the c... |
Does FIFO cost basis applies across multiple accounts? | You decide on a cost bases attribution yourself, per transaction (except for averaging for mutual funds, which if I remember correctly applies to all the positions). It is not a decision your broker makes. Broker only needs to know what you've decided to report it to the IRS on 1099, but if the broker reported wrong ba... |
Did basically all mutual funds have a significant crash in 2008? | In 2008, the S&P was down 37%. I love charts that show sector performance by year, as it helps show that 2008 wasn't like the crash of 2000-01 which was more tech-centric. Funds that were more geared towards bonds would have been up as the 10 year Treasury was up 20%. I understand you have a low risk tolerance. Over ... |
How to get the lowest mortgage rate on a new purchase? | Purchase loans tend to be more challenging to get the best possible rate, because you have to balance closing the loan and getting the contract. So there isn't as much time to shop around as when you do a refinance. I disagree with the sentiment to go with your local bank. Nothing wrong with asking at your local bank ... |
Is it cheaper to use car Insurance or pay out of pocket? | There's not a single answer here, as the premium you pay for car insurance depends on multiple factors, including (but not limited to): All these factors contribute to the likelihood of getting into an accident, and the expected damage from an accident. So just having an accident and making a claim will likely raise y... |
What is the most effective saving money method? | First pay yourself. When you get salary, send some parts of that (for example 10%) to your saving account. Step by step you'll save nice money ;) |
Forgot to renew Fictitious Name application within the county. What is the penalty for late filing? | I checked this myself and there is no monetary penalty for late filing. However, since I am late I have to do all publication over again which costs me extra $50. |
Should I charge my children interest when they borrow money? | This is not really the focus of your question, but it's worth noting that if you live in the United States (which your profile says you do), there are tax implications for you (but not for your children), depending on whether or not you charge your children (enough) interest. If you charge less interest than the appro... |
Fundamentals of creating a diversified portfolio based on numbers? | Most of the “recommendations” are just total market allocations. Within domestic stocks, the performance rotates. Sometimes large cap outperform, sometimes small cap outperform. You can see the chart here (examine year by year): https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh... |
trailing stop loss in slow price decline | The price doesn't have to drop 5% in one go to activate your order. The trailing aspect simply means your sell trigger price will increase if the current value increases (it will never decrease). |
Put on a put option | I doubt that this exists, but it could theoretically. After all, a share is kind of an option to a company's future success, and so a call is already a second level on indirection. The better approach would be to 'create your own Put-Puts', by investing less money (A) in the Put you wanted to invest into, and put the s... |
Where can I find definitive terms for a preferred share? | This site has the best information I could find, other than a Bloomberg terminal: Quantumonline.com QUANTUMONLINE.COM SECURITY DESCRIPTION: SCANA Corp., 2009 Series A, 7.70% Enhanced Junior Subordinated Notes, issued in $25 denominations, redeemable at the issuer's option on or after 1/30/2015 at $25 per share plus... |
What is a Master Limited Partnership (MLP) & how is it different from plain stock? | MLP stands for master limited partnership. Investors who buy into one are limited partners, rather than shareholders, and have their taxable income reported on K-1s, rather than 1099s. MLPs are engaged in businesses (e.g. real estate, natural resources) that generate a lot of cash that doesn't need to be "reinvested," ... |
What are good games to play to teach young children about saving money? | I've found that good old fashioned "Monopoly" teaches children about cash flow, mortgaging properties, and paying income taxes. |
Are there any banks in Europe that I can have an account without being in that country? | It can be done, but I believe it would be impractical for most people - i.e., it would likely be cheaper to fly to Europe from other side of the world to handle it in person if you can. It also depends on where you live. You should take a look if there are any branches or subsidiaries of foreign banks in your country ... |
Why don't banks allow more control over credit/debit card charges? | Credit card fraud is an extremely (to stress, EXTREMELY) small proportion of total credit card transactions. The card issuing entities all offer zero fraud liability, even on debit cards. There are millions of transactions every day and fraud loss just isn't worth developing, and supporting, an additional authenticat... |
I'm thinking of getting a new car … why shouldn't I LEASE one? | Here are the reasons I did not lease my current car. When you lease, you're tied in at a monthly payment for 48 months or more. The only way to get out of that payment is to transfer the lease or buy out the lease. If you buy/finance, you can always sell the car or trade it in to get out of the payments. Or you can pay... |
When filing taxes in Canada, in what cases does box 39 on the T4 get reported as half of box 38? | Assuming you purchased shares that were granted at a discount under the ESPP the 50% exemption would not apply. It's pretty unusual to see a US parent company ESPP qualify for the 110(1)(d) exemption, as most US plans provide for a discount |
Does the USA have a Gold reserve? | The US does have a gold reserve. The main reserves are held at Fort Knox but there is even more gold, mostly owned by other countries, stored in the basement of the New York Federal Reserve Bank (Think Die Hard 3). The United States Bullion Depository, often known as Fort Knox, is a fortified vault building located adj... |
Where to find detailed information about stock? | 1. Most of the information you want can be found in the annual report of the company. Go to their official website, look for shareholders information and then download the annual report. This will answer: "number of issued stock, voting rights, if there is more than one kind of stock, etc. In summary all the legal and ... |
Is it worth buying real estate just to safely invest money? | People in the United States in the mid-2000's thought that real estate was safe. Then they discovered that when the bubble burst the value of their house dropped 10 to 50%. Then they realized that they couldn't sell, even if they had the cash to make the lender whole. Some lost their houses to foreclosure, others walk... |
In double entry book-keeping, how should I record writing of a check? | I have no idea what the traditional accounting way of dealing with this might be; but does your accounts package has the concept of subaccounts within a bank account? If so, to me it would make sense that when a cheque is written, you move money in the accounts package from the bank account to a subaccount named 'Cheq... |
A friend wants to use my account for a wire transfer. Is this a scam or is it legitimate? | In many countries it is a legal requirement or in some other way mandatory for the banks to ban the owner(s) of an account to allow a third party to use the account. In some countries if you willing give someone access in this way you get no compensation what so ever and you'll be lucky if they catch the crooks and eve... |
Why does the share price tend to fall if a company's profits decrease, yet remain positive? | Let's use an example: You buy 10 machines for 100k, and those machines produce products sold for a total of 10k/year in profit (ignoring labor/electricity/sales costs etc). If the typical investor requires a rate of return of 10% on this business, your company would be worth 100k. In investing terms, you would have a ... |
Will getting a new credit card and closing another affect my credit? | Several events will always result in a reduction of your score, including: These will show up in the short term, but I don't think it's worth $40 per year in perpetuity to avoid this. These aren't serious "black marks" in the same category as missing payments, carrying too much debt, or foreclosures/evictions, etc. The... |
What is the median retirement savings in the United States today? | Note that the quote distinguishes between "all families" and "families with some savings" - this just means there are so many families with less than 5k that they equal all those with savings above 5k. That might be because they are young and haven't started yet, or because it is just not a priority for them compared t... |
Buying a building with two flats, can I rent one out and still get a residential mortgage? | NO Even worse, most BTL(buy to let) lenders will not lend if you are going to be living in the property. There are very few lenders that will touch something like this. It is likely you will also need to use bridging for the time the building work takes at something like 1.5% per month! Try posting the question t... |
Sell or keep rental Property? | Sell the house, in the scenario you describe he is using the property as an investment with a $250 per month buy-in. This investment doesn't make a return right now and when you add in the cost of dealing with the tenant (even if he doesn't have those cost now, he will when they move out)he is out of more than $250 a m... |
A guy scammed me, but he gave me a bank account number & routing number. Can I use that to take out what he owes me? | As long as there is nothing more to this story you aren't sharing, you can expect those bills you paid to come back (you will have to pay them again later). You can be pretty certain that the name he gave you was fake, and that the bank account you paid your bills with was not his. I would not try to do anything at all... |
Why do 10 year Treasury bond yields affect mortgage interest rates? | The simple answer is that, even though mortgages can go for 10, 15, 20 and 30 year terms in the U.S., they're typically backed by bonds sold to investors that mature in 10 years, which is the standard term for most bonds. These bonds, in the open market, are compared by investors with the 10-year Treasury note, which i... |
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? |
Purchase same stock twice | how does the trading company know which one I want to sell? It doesn't need to know. You just sell one. From taxation point of view depending on the country / tax jurisdiction, it can be only be FIFO or specific stock. |
Legal documents required for managing an investment portfolio among friends? | You have to register with the SEC as an Investment Company. The SEC has a "Investment Company Regulation and Registration Package", available here: http://www.sec.gov/divisions/investment/invcoreg121504.htm I found that off their overall page for funds and advisors: http://www.sec.gov/divisions/investment.shtml Final... |
I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment? | Stocks go down and go back up, that's their nature... Why would you sell on a low point? Stocks are a long term investment. If the company is still healthy, it's very likely you'll be able to sell them with a profit if you wait long enough. |
Someone asks you to co-sign a loan. How to reject & say “no” nicely or politely? | I'll take an alternate route: honesty + humor. Say something like this with a smile and a laugh, like you know they're crazy, but they maybe don't know it yet. "Are you crazy? Co-signing a loan can put us both in a lot of potential danger. First, you shouldn't get a loan that you can't afford/attain on your own, and se... |
How risky are penny stocks? | The biggest problem with penny stocks is that they are easily manipulated, and they frequently are. Many of the companies trading as penny stocks have poor track histories of accurate financials, and what information that is available is not very reliable or verifiable. I recall a few years ago when there were article... |
Data source for historical intra-day bid/ask price data for stocks? | Check the answers to this Stackoverflow question https://stackoverflow.com/questions/754593/source-of-historical-stock-data a number of potential sources are listed |
Can you sell stocks/commodities for any price you wish (either direct or market)? | In other words, does the market have control over sale numbers or do I? You both do, just like for the bike. You have control over the price you ask, and the buyer has control over the price they pay. If the two do not align, no sale takes place. Your question uses the words "sell" and "sale" ambiguously. You can de... |
Any difference between buying a few shares of expensive stock or a bunch of cheap stock | I was thinking that the value of the stock is the value of the stock...the actual number of shares really doesn't matter, but I'm not sure. You're correct. Share price is meaningless. Google is $700 per share, Apple is $100 per share, that doesn't say anything about either company and/or whether or not one is a bett... |
Do Square credit card readers allow for personal use? | I used square in the past for personal yard sale and they did not transfer balance to my bank acct because they told me it was against their policy and I had to have a business license that they could either refund the credit cards i process or keep the money. So they kept it I never got it back. I don't recommend anyb... |
Do capital gains get factored into AGI? | I believe that capital gains do affect AGI, but if she sells $40k of stock, then the AGI doesn't go up by $40k, it only goes up by the gains (gross proceeds of the sale minus cost basis). So if she paid $30k for that stock, then the AGI goes up by $10k not $40k. |
How does giving to charity work? | Charitable donations can be deducted from your income, and in that way make your taxable income lower, hence lower taxes. That's the meaning of "tax deductible". As to "if I donate it then the money will be given right to the charity instead of spread out to many other places" - taxes are being used by the government b... |
Why do people sell when demand pushes share price up? | You are assuming the price increase will continue. The people selling are assuming that the price increase will not continue. Ultimately that's what a share transaction is: one person would rather have the cash at a particular price / time, and one person would rather have the share. |
New car price was negotiated as a “cash deal”. Will the price change if I finance instead? | I am a carsalesman. Lets get one thing straight, we are not allowed to give people a better deal just because they pay cash, regardless of what some people say. That can be seen a discrimination as not all people are fortunate enough to have cash available. if anything, finance is better for the dealership, as we get f... |
New car cash vs finance | Yes, maybe. Sometimes the mother company (that makes the car) covers a bit of the loss that comes from the super-offer loan, so the dealer loses a bit less. But generally, you are right. you should be able to talk them into some rebate that gets you around the given number, depending on how good you are a negotiator (a... |
How does the Dow Jones Industrial Average (DJIA) divisor change to account for dividends? | The methodology for divisor changes is based on splits and composition changes. Dividends are ignored by the index. Side note - this is why, in my opinion, that any discussion of the Dow's change over a long term becomes meaningless. Ignoring even a 2% per year dividend has a significant impact over many decades. The ... |
Stocks given by company vest if I quit? | You were probably not given stock, but stock options. Those options have a strike price and you can do some more research on them if needed. Lets assume that you were given 5K shares at a strike of 20, and they vest 20% per year. Assume the same thing in your second year and you are going to leave in year three. You... |
Dealership made me the secondary owner to my own car | You are co-signer on his car loan. You have no ownership (unless the car is titled in both names). One option (not the best, see below) is to buy the car from him. Arrange your own financing (take over his loan or get a loan of your own to pay him for the car). The bank(s) will help you take care of getting the titl... |
Does a stock holder profit from a reverse-stock split? | I just had a reverse split done 1 to 35. I went from 110,000 shares and a negative 13k to 3172 shares, and I still had a negative 13k. If your company does a reverse split take the lost and get out, it's bad news all the way around. |
Should I invest in the world's strongest currency instead of my home currency? | First, currencies are not an investment; they are a medium of exchange; that is, you use currency to buy goods and services and/or investments. The goods and services you intend to buy in your retirement are presumably going to be bought in your country; to buy these you will need your country's currency. The investmen... |
classify investments in to different asset types | REITs can be classified as equity, mortgage, or hybrid. A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. Trades like equity but the underlying is a property ot mortgage. So you are investing in real estate but without directly dealing... |
Wisest option to pay for second career education | Your first step should be to visit with the financial aid office of the university that you are considering attending, perhaps even before filling out the FAFSA. You may be eligible for grants, scholarships, and subsidized loans, as well as unsubsidized loans. You should pursue the first two options first, and then whe... |
Is the stock market a zero-sum game? | While this seems overall a macroeconomics question and not really personal finance, let me give it a shot: The question of why corporations form in a free or efficient market is why Ronald Coase received the 1991 Nobel Prize in Economics, for his work developing the theory of the firm Corporations organize when there a... |
Help required on estimating SSA benefit amounts | Some details in case you are interested: Being a defined benefit kind of pension plan, the formula for your Social Security benefits isn't tied directly to FICA contributions, and I'm not aware of any calculator that performs an ROI based on FICA contributions. Rather, how much you'll get in retirement is based on your... |
What options do I have at 26 years old, with 1.2 million USD? | Pay off the credit cards. From now on, pay off the credit cards monthly. Under no circumstances should you borrow money. You have net worth but no external income. Borrowing is useless to you. $200,000 in two bank accounts, because if one bank collapses, you want to have a spare while you wait for the government ... |
Pay off car loan entirely or leave $1 until the end of the loan period? | I used to work for Ally Auto (formerly known as GMAC) and I'd advise not to pay off the account unless you need to free up some debt in your credit report since until the account is paid off it will show that you owe your financial institution the original loan amount. The reason why I am saying not to pay-off the acco... |
At what price are dividends re-invested? | If a stock is trading for $11 per share just before a $1 per share dividend is declared, then the share price drops to $10 per share immediately following the declaration. If you owned 100 shares (valued at $1100) before the dividend was declared, then you still own 100 shares (now valued at $1000). Generally, if the d... |
How to pay with cash when car shopping? | Ask the dealer to drive to the bank with you, if they really want cash. |
Paying extra on a mortgage. How much can I save? [duplicate] | How much can I save? Depends on inflation and what other investment opportunities you have. It could end up costing you millions. Can I pay $12,000 extra once a year or $1000 every month - which option is better? It depends on how risk adverse you are. The first option does sound better, but for a 30 year mortgage, i... |
Is an analyst's “price target” assumed to be for 12 months out? | Most commonly, unless you read 'fair value target price,' an analyst's target price is a 12-month target price. Typically, there is a firm wide policy determining which time horizon to use. No analyst would provide an open ended target price, it doesn't make any sense (you discount cash flows to a certain period, adjus... |
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