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Must ETF companies match an investor's amount invested in an ETF? | Does the bolded sentence apply for ETFs and ETF companies? No, the value of an ETF is determined by an exchange and thus the value of the share is whatever the trading price is. Thus, the price of an ETF may go up or down just like other securities. Money market funds can be a bit different as the mutual fund company w... |
Harmony Gold Mining Company is listed on the NYSE and JSE at different prices? | On NYSE it isn't the equity which is listed but is an ADR(American Depositary Receipt). Source A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security ... |
RRP/list price/retail price and cars? | The retailer can sell for whatever price they like, with the caveats that if they consistently sell at a loss they will go out of business and if they set the price too high they will not sell anything! As you mentioned, RRP is only a recommended price, the manufacturer cannot enfore it at all for legal reasons. Having... |
Swiss-style Monetary Policy | This is what is called "weasel words". They're trying to put some authority into their ad, but since they don't have any - they're putting meaningless words that sound important. Monetary policy is the state/central bank policy to control the supply of the available currency. Cannot think of a way to connect it to priv... |
Can buying REIT's be compared to investing in Real Estate? | well yes but you should also begin to understand the sectoral component of real estate as a market too in that there can be commercial property; industrial property and retail property; each of which is capable of having slightly (tho usually similar of course) different returns, yields, and risks. Whereas you are sa... |
Retirement planning 401(k), IRA, pension, student loans | You asked specifically about the ROTH IRA option and stated you want to get the most bang for your buck in retirement. While others have pointed out the benefits of a tax deduction due to using a Traditional IRA instead, I haven't seen anyone point out some of the other differences between ROTH and Traditional, such a... |
How do I invest and buy/sell stocks? What does “use a broker” mean? | I'm posting this because I think I can do a better job of explaining and detailing everything from start to stop. :) A "broker" is just someone who connect buyers and sellers - a middleman of sorts who is easy to deal with. There are many kinds of brokers; the ones you'll most commonly hear about these days are "mortga... |
What one bit of financial advice do you wish you could've given yourself five years ago? | Maybe not exactly 5 years ago, but the big thing I wish I understood starting out my career was retirement accounts and how they worked. |
When is the best time to put a large amount of assets in the stock market? | Trying to "time the market" is usually a bad idea. People who do this every day for a living have a hard time doing that, and I'm guessing you don't have that kind of time and knowledge. So that leaves you with your first and third options, commonly called lump-sum and dollar cost averaging respectively. Which one t... |
Should I exclude bonds from our retirement investment portfolio if our time horizon is still long enough? | I've had the same thoughts recently and after reading Investing at Level 3 by James Cloonan I believe his thesis that for the passive investor you're giving up too much if you're not 100% in equities. He is clear to point out that you need to be well aware of your withdrawal horizons and has specific tactics for shifti... |
Why do stock prices of retailers not surge during the holidays? | Systemic and well know patterns in sales are priced in to the security. Typically companies with very cyclical earnings like this will issue guidance of earnings per share within a range. These expected earnings are priced in before the earnings are actually booked. If a company meets these expectations the stock wi... |
Shares; are they really only for the rich/investors? | I think small sums invested regularly over long-term can do good for you, things to consider: I would go with an index fund and contribute there there regularly. |
401k with paltry match or SPY ETF? | Answers: 1. Is this a good idea? Is it really risky? What are the pros and cons? Yes, it is a bad idea. I think, with all the talk about employer matches and tax rates at retirement vs. now, that you miss the forest for the trees. It's the taxes on those retirement investments over the course of 40 years that really ma... |
Who performs the blocking on a Visa card? | It is the people who you bought the ticket from. Blocking is frequently done by hotels, gas stations, or rental car companies. Also, for anything where the credit card might be used to cover any damages or charges you might incur later as part of the transaction. In essence, they are reserving part of your credit limit... |
why do I need an emergency fund if I already have investments? | From a budgeting perspective, the emergency fund is a category in which you've budgeted funds for the unexpected. These are things that weren't able to be predicted and budgeted for in advance, or things that exceeded the expected costs. For example you might budget $150 per month for car maintenance, and typically s... |
Credit cards: How is a cash advance different from a purchase? Why are the fees so high? | Essentially speaking, when you purchase goods worth $100 using your card, the store has to pay about $2 for the transaction to the company that operates that stores' credit card terminal. If you withdraw cash from an ATM, you might be charged a fee for such a transaction. However, the ATM operator doesn't pay the cred... |
Why can't a US state default, but a EU state can? | US or EU states are sovereigns which cannot go bankrupt. US states have defaulted in the 1840's, but in most of those cases creditors were eventually repaid in full. (I'm not 100% sure, but I believe that Indiana was an exception with regard to costs incurred building a canal system) The best modern example of a true n... |
What is the rationale behind stock markets retreating due to S&P having a negative outlook on the USA? | Many of the major indices retreated today because of this news. Why? How do the rising budget deficits and debt relate to the stock markets? The major reason for the market retreating is the uncertainty regarding the US Dollar. If the US credit rating drops that will have an inflationary effect on the currency (a... |
Can a company charge you for services never requested or received? | Here's another example of such a practice and the problem it caused. My brother, who lived alone, was missing from work for several days so a co-worker went to his home to search for him and called the local Sheriff's Office for assistance. The local fire department which runs the EMS ambulance was also dispatched in... |
How to share income after marriage and kids? | Some basic thoughts, mostly on fairness. I guess the answer doesn't really fit this site, it's more about ethics, but this fits the question which isn't really just about money either. So when both work the same amount, it seems appropriate that both get the same mount of money, doesn't it? That is, the scheme of (as a... |
Hedging against Exchange Rate Risk | You can calculate your exposure intuitively, by calculating your 'fx sensitivity'. Take your total USD assets, let's assume $50k. Convert to EUR at the current rate, let's assume 1 EUR : 1.1 USD, resulting in 45.5k EUR . If the USD strengthens by 1%, this moves to a rate of ~1.09, resulting in 46k EUR value for the sam... |
US Banks offering Security Tokens in 2012 | Charles Schwab and HSBC offer security tokens. |
I don't live in America. How can I buy IPO stock of newly listed companies in the United States? | First thing to consider is that getting your hands on an IPO is very difficult unless you have some serious clout. This might help a bit in that department (http://www.sec.gov/answers/ipoelig.htm) However, assuming you accept all that risk and requirements, YES - you can buy stocks of any kind in the US even if you are... |
What's the most conservative split of financial assets for my portfolio in today's market? | The safest place to put money is a mixture of cash, local municipal bond funds with average durations under two years and US Treasury bond funds with short durations. Examples of good short term US municipal funds: I'm not an active investor in Australian securities, so I won't recommend anything specific. Because rat... |
Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India? | You can receive money directly into your savings bank account. It is perfectly legal. FYI the Bank as part of regulation would report this to RBI. As the funds are received for the services you have rendered, You are liable to pay tax on the income. The income is taxed as professional income similar to the income of Do... |
How can I have credit cards without having a credit history or credit score? | For instance and to give a comparison to the US - in Austria, almost everybody gets a credit card (without a credit history (e.g. a young person) / with a bad credit history & with a good credit history). The credit history is in the USA much more important than in Austria. In future, the way to assess a credit histor... |
How does historical data get adjusted for dividends, exactly? | According to Active Equity Management by Zhou and Jain: When a stock pays dividend, the adjusted price in Yahoo makes the following adjustment: Let T be the ex-dividend date (the first date that the buyers of a stock will not receive the dividend) and T-1 be the last trading day before T. All prices before T are adjust... |
What benefits are there to having a Pension (Retirement Account) In Ireland? | As you point out, the main benefits of a pension/retirement account over a traditional cash/taxable account are the legal and tax benefits. Most Western countries establish a specific legal definition for an account which is often taxed less or not at all relative to taxable accounts and which contains some protection... |
Debt collector has wrong person and is contacting my employer | I can ONLY WISH this would happen to me. Get every scrap of information that you can. DOCUMENT DOCUMENT DOCUMENT..and then get a nice sleazy lawyer to sue the collector AND your employer if they leaked anything... Plain and simple, it's illegal and there are very nice protections in place for such. |
Once stock prices are down, where to look for good stock market deals? | Indexes are down during the summer time, and I don't think it has something to do with specific stocks. If you look at the index history you'll see that there's a price drop during the summer time. Google "Sell in May and go away". The BP was cheap at the time for a very particular reason. As another example of a simil... |
If a stock doesn't pay dividends, then why is the stock worth anything? | It's important to remember what a share is. It's a tiny portion of ownership of a company. Let's pretend we're talking about shares in a manufacturing company. The company has one million shares on its register. You own one thousand of them. That means that you own 1/1000th of the company. These shares are valued b... |
Would it make sense to take a loan from a relative to pay off student loans? | Personally, I avoid making business deals with friends and relatives. There's just too much of a possibility that things can go wrong. Let's assume that you're honest people and you have no intention of cheating your mother-in-law. Still, all sorts of things could happen that could make it difficult for you to repay t... |
Is this mortgage advice good, or is it hooey? | I think the idea here is that because of the way mortgages are amortized, you can drop additional principal payments in the early years of the mortgage and significantly lower the overall interest expense over the life of the loan. A HELOC accrues interest like a credit card, so if you make a large principal payment us... |
How to estimate federal and state taxes likely to be due on my side income? | Most states that have income tax base their taxes on the income reported on your federal return, with some state-specific adjustments. So answering your last question first: Yes, if it matters for federal, it will matter for state (in most cases). For estimating the tax liability, I would not use the effective rate b... |
What happens to all of the options when they expire? | Firstly "Most option traders don't want to actually buy or sell the underlying stock." THIS IS COMPLETELY UTTERLY FALSE Perhaps the problem is that you are only familiar with the BUY side of options trading. On the sell side of options trading, an options desk engages in DELTA HEDGING. When we sell an option to a clien... |
How should we organize our finances to effectively plan and prepare for an retirement in next 10 years? | The biggest issue is your lack of diversification. Your real estate investments have performed quite well so far, but you have also likely enjoyed a period of unprecedented growth that is not sustainable. In the long term, stocks have always outperformed real estate investments, which tend to track more closely to the... |
Why did I lose 2 cents more than the difference in the stock prices on my Robinhood trade? | There is a misunderstanding somewhere that your question didn't illuminate. You should have lost $0.04 as you say. Assuming the prices are correct the missing $0.02 aren't covered by a reasonable interpretations of the Robinhood fees schedule. For US-listed stocks: $0 plus SEC fees: 0.00221% of principal ($22.10 per $1... |
How can I spend less? | One things about psychology - people spend more money when its an abstract concept instead of having cold, hard cash. What does this mean? People spend more money when they use credit cards for day to day purchases. While I still use a credit card for day to day purchases, there's a big difference between bringing $200... |
Dad paying for my new home in cash. How can I buy the house from him? | There are quite some options, but without additional information, I can only provide examples. Last year I had the option to buy a house, but I decided against it because in my area it is getting harder and harder every year to sell it at a reasonable price. But if I had bought a house, my mother would have lent me the... |
Dalbar: How can the average investor lose money? | I think you are mixing two different concepts here. The average investor, in the quoted reference, means an average single investor like you or like me. the average investor consistently under-performs the market. However, you then ask the question and you seem to refer to all investors as a group; individuals, institu... |
Is the writer of a call ever required to surrender dividends to the call option buyer? | The dividend goes to he who owns the stock when it goes ex-div. A buyer (the call buyer who exercises) will not exercise unless the stock plus dividend are in the money. Otherwise they'd be buying the stock at a premium. I like the scenario your friend doesn't. If I can find a high dividend stock and sell the call for... |
What is a good 5-year plan for a college student with $15k in the bank? | You can put them in a 5 years CD and getting a maximum of %2.5 APY if you're lucky. If you put 15k now, in 5 years you'll have $1.971. If it sounds good then take a look at the current inflation rate (i'm in usa)... If you want to think about retirement then you should open a Roth IRA. But you won't be able to touch th... |
Income tax exemptions for small business? | Yes, you should be able to deduct at least some of these expenses. For expense incurred before you started the business: What Are Deductible Startup Costs? The IRS defines “startup costs” as deductible capital expenses that are used to pay for: 1) The cost of “investigating the creation or acquisition of an active tra... |
Calculating the cost of waiting longer for money | This looks correct to me, for simple interest. If you are dealing with compound interest, the formula would be: So, A = 500000(1+0.036/365)^(30), or 501,481.57, or an interest of 1481.57, assuming the 3.6% is the annual nominal interest rate and it is compounded daily. Note that you are ignoring the depreciation and al... |
UK: Personal finance book for a twenty-something | I will definitely recommend the following books The above books will open lot of eyes to exactly know what you are doing with your personal finances in a day to day basis.These books will surely be in the top of my list which I will be giving away to my kins in my later stage. The concepts are universally the same, fee... |
How can I increase my hourly pay as a software developer? | Most full time developer jobs in the US are paid on a salary basis rather than hourly unless you are a contractor. Also, the pay varies widely by region in the US with the West and East coast typically paying the most, but also having the highest cost of living. A site I really like for getting salary data by region an... |
Why trade futures if you have options | Yes, from the point-of-view to the end speculator/investor in stocks, it is ludicrous to take on liabilities when you don't have to. That's why single-stock options are far more liquid than single-stock futures. However, if you are a farmer with a huge mortgage depending upon the chaos of agricultural markets which ar... |
Credit and Debit | It took me a while to understand the concept, so I'll break it down as best as I can. There are three parts to the accounting equation: Assets = Liabilities + Owner's Equity We'll look at this in two ways 1. As a business owner you invest (say) 10,000 USD into your bank. The entry would be: Debit: Assets: Cash for 1... |
How does GST on PayPal payments work for Australian Taxation? | Regardless of wether or not you are registered for GST, you are legally required to include a GST total on every invoice sent to an Australian customer. This GST total must be 10% of the payment amount if you are registered for GST, or it must be $0.00 if you are not registered for GST. Since all GST transactions with ... |
If accepting more than $10K in cash for a used boat, should I worry about counterfeiting? | I'd worry more about falsifying documents of sale. No good reason at all to do that. Detecting counterfeit bills is easy if they're all new bills. Hold them up to the light and look for the watermark and the numbered tape in the bill. Refuse any bad ones. |
How to compare the value of a Masters to the cost? | I wasn't 100% on which columns of the scale you were referring to, but think I captured the correct ones in this comparison, using the scale for BA and MA (MA scale starting 2 years later, with decreased income reflected for first two years), applying a 1% cost of living increase each year to the scale or to prior year... |
Why does shorting a call option have potential for unlimited loss? | You are likely making an assumption that the "Short call" part of the article you refer to isn't making: that you own the underlying stock in the first place. Rather, selling short a call has two primary cases with considerably different risk profiles. When you short-sell (or "write") a call option on a stock, your pos... |
Why do people buy new cars they can not afford? | If you don't know how to fix your own car or have time to take car parts off of a car at a junk yard, the average amount of money per month you spend on repairing an old car will be greater than the amount of money you spend per month on a new car payment. This is because car repair shops are charging $85 per hour for ... |
How can I improve my auto insurance score? | Move to a small town in an insurance friendly state. - Certian states like Florida are considered high risk for doing business for insurance companies. Get a (relatively)new midsize sedan in white, tan, or brown. These colors are the least likely to get stolen and the modern midsized sedan is considered the safest v... |
Do market shares exhaust? | Everyone has a price. If nobody is selling shares, then increase the price you will buy them for. And then wait. Somebody will have some hospital bills to pay for eventually. I buy illiquid investments all the time, and thats typically what happens. Great companies do not have liquidity problems. |
What is needed to be a “broker”? | You must understand that: So, if you -- the prospective buyer -- are in Waukegan, do you take the train all the way to New York City just to buy 100 shares of stock? No. That would be absurdly expensive. So, you hire an agent in NYC who will broker a deal for you in the exchange. Fast forward 100 years, to the time ... |
Which banks have cash-deposit machines in Germany? | This may not answer your question but it may be an alternative. My credit union credits my account for deposits immediately (ones I make in an envelope). They view it as a service to their members. They take the risk that the member could deposit an empty envelope, say they deposited $400, and then withdraw the money... |
Tax Form 1099 and hourly worker do i file a W-2 if my employer filed the 1099 for me? | Forms 1099 and W2 are mutually exclusive. Employers file both, not the employees. 1099 is filed for contractors, W2 is filed for employees. These terms are defined in the tax code, and you may very well be employee, even though your employer pays you as a contractor and issues 1099. You may complain to the IRS if this ... |
Closing a futures position | Futures exchanges are essentially auction houses facilitating a two-way auction. While they provide a venue for buyers and sellers to come together and transact (be that a physical venue such as a pit at the CME or an electronic network such as Globex), they don't actively seek out or find buyers and sellers to pair th... |
How can home buying be considered a sound investment with all of that interest that needs to be paid? | The flaw in your reasoning is that you are assuming that renting a house is easy and automatic. Who is going to manage the property? Your parents? What are you going to do if the tenants burn the place down, start having drug parties there, or secretly have 6 cats who piss everywhere so noone will ever want to rent it ... |
What U.S. banks offer two-factor authentication (such as password & token) for online banking? | E*Trade offers banking services, and will provide you with a security token free if you have sufficient assets there ($50,000). Otherwise they'll charge you a $25 fee. |
Saving/ Investing a lump sum | 5 years is very short term, and since you are sure you'll need the money, investing it into the markets should probably not be done. You can toss it in Ally bank for 1% or consider a 5 yr raise your rate CD A decent write-up on time horizons: http://www.investopedia.com/articles/investing/110813/using-time-horizons-inv... |
I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment? | I am very surprised no one mentioned the Stock Repair Option Strategy which has real benefits and is one of the mainstream Option Strategies. Quote: Who Should Consider Using the Stock Repair Strategy? In a nutshell, you are buying call options with current strike price (at-the-money) and sell call options with higher ... |
Should I open a credit card when I turn 18 just to start a credit score? | Not only should you do this, you should tell your friends to do it too. Especially if a parent comes in to the bank with the child, banks fall over themselves to provide a card to someone whose only income is allowance. Really. Later, if you're 21 and your car broke and you don't get paid for another 11 days, NOBODY wi... |
Remit money to India from balance transfer of credit card | Is this transaction legal Yes it is. Are there any tax implications in US? The interest is taxable in US. From what I understand, there are no tax implications in India. Yes this is right. The question you haven't asked is does this makes sense? So you are paying 3% upfront. Getting 8% at end of one year. You can maki... |
want to refinance FHA loan, may move out unexpectedly and would like to keep as investment property, what are my options? | Most likely no. Just make sure to read the fine print. I'm in exactly the same boat, I have a house with an FHA loan and will be refinancing to conventional then using it as an investment. To refinance, you usually have to own 25% of your property before you can refinance, or buy another property with FHA financing.... |
What is the point of owning a stock without dividends if it cannot be resold? | If that condition is permanent -- the stock will NEVER pay dividends and you will NEVER be able to sell it -- then yes, it sounds to me like this is a worthless piece of paper. If there is some possibility that the stock will pay dividends in the future, or that a market will exist to sell it, then you are making a lon... |
Why would anyone want to pay off their debts in a way other than “highest interest” first? | In some cases, it might be rational to pay low-interest debt first, because the consequences of defaulting on that debt are worse. Consider this simplified example. Suppose you have two debts: a low-interest mortgage, secured by your house, and a high-interest unsecured credit card debt, both of which are within a f... |
In the event of a corporate spin-off, how can I calculate the correct cost basis for each company's shares? | From my understanding: Original Holding: Siemens - 10,000 units at 80 Euros/unit Cost = 800,000 euros Spin-off: Every 10 Siemens get 1 OSRAM On July 5th, 2013: Siemens closing - 78 Euros On Monday, July 8th: Ex-date (opening) - 75 Euros Hence: Market value for:- 1. Siemens: 75 * 10,000 = 750,000 euros 2. OSRAM: (10,... |
What should I do with my $10K windfall, given these options? | Have you looked at DIY roof repair? Caulking with tar adhesive, and shingle replacement isn't that hard, if you're in good health. Totally depends on how bad your roof is/what the demands on it are going to be. If you can squeak another year out of it, with minimal investment, you'll have a year's worth of, say car... |
Can I invest in the London stock market when resident on a visa? | There are no legal restrictions on doing this. If you're living in the UK, just open an account like any other resident of the UK would. |
Tax considerations for selling a property below appraised value to family? | Is this legal? Why not? But you might have trouble deducting losses on your taxes, especially if you sell to someone related to you in some way (which is indeed what you're doing). See the added portion below regarding dealing with "related person" (which a sibling is). The state of Maryland has a transfer/recordation ... |
Can somebody give a brief comparison of TSP and IRAs? | The TSP is similar to a 401K. If you were hired as a federal employee on or after 1 January 1987 you are under the FERS retirement program. That means that you are eligible for matching. If they will match your deposits then the TSP, up to the matching limit, is a better choice. Skipping the TSP will mean that you you... |
Are stores that offer military discounts compensated by the government? | This story is about military grocery stores - i.e.: grocery stores for military personnel on military bases. There are no discounts for military personnel in a regular grocery store. But they may have subsidised prices in grocery stores located inside a military installation, and these are those stores that the story i... |
How to sell a stock in a crashing market? | Your question contains a faulty assumption: During crashes and corrections the amount of sellers is of course higher than the amount of buyers, making it difficult to sell stocks. This simply isn't true. Every trade has two sides; thus, by definition, for every seller there is buyer and vice versa. Even if we broaden... |
Why don't more people run up their credit cards and skip the country? | Even if you could get it with no major hassle, $100,000 is just not that much money. In a cheap third world country, as an expat you're looking at spending about $800-$2000/month, plus unexpected expenses. Locals live on less, but very few of us would be happy with the lifestyle of a Honduran or Thai farmer. Your 100k... |
Is it possible to trade US stock from Europe ? | Any large stockbroker will offer trading in US securities. As a foreign national you will be required to register with the US tax authorities (IRS) by completing and filing a W-8BEN form and pay US withholding taxes on any dividend income you receive. US dividends are paid net of withholding taxes, so you do not need ... |
Sites to obtain historical chart of currency exchange rates? | OANDA has a free online tool (a Java applet) that will do what you're asking. Description: Currency Graph FXGraph: Plot the change between two currencies over any time period Make a customized graph of historical exchange rates for two of over 190 currencies, for any time period since 1990. [...] Visit C... |
As a 22-year-old, how risky should I be with my 401(k) investments? | +1 on all the answers above. You're in a great position and have the right attitude. A good book on the subject is A Random Walk Down Wall Street - well worth a read. Essentially, go for low tax paying in, low tax taking out approach (in the uk that's a SIPP or ISA), a low cost well diversified unit fund (like a Vangua... |
How do you determine “excess cash” for Enterprise Value calculations from a balance sheet? | You're not missing anything. Excess cash is somewhat of a nebulous concept. To different people it means different things. The answer is that excess cash varies for each company depending on their business. For instance, some companies need very high amounts of working capital. A company may be increasing their in... |
When is it better to rent and when is better buy in a certain property market? | Besides the long-term concern about which is cheaper, which has already been addressed by other answers, consider your risk exposure. Owning property has financial risks associated with it, just like owning stocks or bonds. The risk-related downsides of owning a home as an asset include: The risk-related upsides of own... |
Advice on strategy for when to sell | Consider trailing stop losses maybe 5% below your profit target, if you want a simplistic answer. |
Cash or Bonds (UK) | The 'appropriate' amount of cash/bonds to hold will be largely a matter of opinion, but here are the general reasons why having at least some is a good idea: Cash is very liquid, and bonds are often mostly liquid. This means you can access them very quickly, without taking on losses. To get the most liquidity out of yo... |
Having a separate bank account for business/investing, but not a “business account?” | When I was younger I had a problem with Washington Mutual. Someone had deposited a check in to my account then ran my account negative with a "dupe" of my debit card. WaMu tied up my account for three months while they investigated because it wasn't simply a debit card fraud issue, this was check fraud (so they claim... |
Different ways of looking at P/E Ratio vs EPS | Check your math... "two stocks, both with a P/E of 2 trading at $40 per share lets say, and one has an EPS of 5 whereas the other has an EPS of 10 is the latter a better purchase?" If a stock has P/E of 2 and price of $40 it has an EPS of $20. Not $10. Not $5. |
Does a stock really dip in price on the ex-dividend date? And why would it do this? | This effect has much empirical evidence as googling "dividend price effect evidence" will show. As the financial economic schools of thought run the gamut so do the theories. One school goes as far to call it a market inefficiency since the earning power thus the value of an equity that's affected is no different or a... |
How much of a down payment for a car should I save before purchasing it? | If you're getting 0% on the financing, it's not costing you anything to borrow that money. So its basically free money. If you are comfortable with the monthly payments, consider going with no downpayment at all. Keep that money aside for a rainy day, or invest it somewhere so that you get some return on it. If you nee... |
When following a buy and hold investment strategy, on what conditions should one sell? | Here's an easy test... Look at the investments in your portfolio and ask yourself whether if you had the cash value, would you buy those same investments today, because effectively that is what you are doing when you continue to hold. If the answer is no, sell and pick something else. Above all else, don't react to m... |
Other than being able to borrow to invest, how is a margin trading account different from a cash account? | In summary: In long form: Spreads and shorts are not allowed in cash accounts, except for covered options. Brokers will allow clients to roll option positions in a single transaction, which look like spreads, but these are not actually "sell to open" transactions. "Sell to open" is forbidden in cash accounts. Short pos... |
Can one use dollar cost averaging to make money with something highly volatile? | As you mentioned in the title, what you're asking about comes down to volatility. DCA when purchasing stock is one way of dealing with volatility, but it's only profitable if the financial instrument can be sold higher than your sunk costs. Issues to be concerned with: Let's suppose you're buying a stock listed on th... |
What is the best source of funding to pay off debt? | Please take a look a Dave Ramsey's Baby Step plan. It has all the details that you need to clean up your personal finance situation. None of your options are good. As some of the other answers mentioned, behavior modification is the key. Any idea will be worthless if you just wind up in debt again. Many, many peo... |
For very high-net worth individuals, does it make sense to not have insurance? | While a lot of the answers focus on cost to replace and how much money you should have for tangible goods. There are a few more issues to consider. However before we get started, these issues are not related to ones net worth. They are related to other factors. Having money certainly helps, but someone worth only $10 ... |
Free Historical Commodity Prices in txt? | Goldprice.org has different currencies and historical data. I think silverprice.org also has historical data. |
How and where to get the time series of the values USDEUR? | The Federal Reserve Bank publishes exchange rate data in their H.10 release. It is daily, not minute by minute. The Fed says this about their data: About the Release The H.10 weekly release contains daily rates of exchange of major currencies against the U.S. dollar. The data are noon buying rates in New York for c... |
How to approach building credit without a credit card | One possible route is to try to have no credit. This is different than bad credit. If you build up a good downpayment (20%), a number of banks would do manual underwriting for you. |
What sort of tax treatment does a charitable micro-lending loan incur? | When lending through Kiva you are not making a "charitable contribution" it's a loan so you cannot deduct the amount you loaned out. If you do lose money from your loan you can write off your entire loss same as you would with any other investment. However you should be careful because in the event of a tax audit you ... |
Is it possible for credit card companies to check credit score in India? | Is it possible for the card issuing banks to check my score without my permission? As far as I understand these things, that is exactly the whole purpose of these sorts of credit-rating institutions. The banks and other financial businesses are their customers. They exist to serve those customers. Their relationship, i... |
What options do I have at 26 years old, with 1.2 million USD? | I'm surprised nobody else has suggested this yet: before you start investing in stocks or bonds, buy a house. Not just any house, but the house you want to live in 20 years from now, in a place where you want to live 20 years from now - but you also have to be savvy about which part of the country or world you buy in. ... |
Why are American-style options worth more than European-style options? | If you're into math, do this thought experiment: Consider the outcome X of a random walk process (a stock doesn't behave this way, but for understanding the question you asked, this is useful): On the first day, X=some integer X1. On each subsequent day, X goes up or down by 1 with probability 1/2. Let's think of buyin... |
Putting borrowed money into an SIPP | You're creating more liabilities for yourself in the future, although yes this could definitely be a profitable move for you. However, some small mistakes you made, from what I can see using the tools at Hargreaves Lansdown. The first, is that the government relief would only be 20%, not 60%. The second is that the tax... |
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