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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How accurate is Implied Volatility in predicting future moves? ### Answer: How accurate is Implied Volatility in predicting future moves? How would you measure this? If the implied volatility says th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Credit rating in Germany ### Answer: The SCHUFA in Germany works a bit different from the FICO score in the US. My background: I am a German currently living in the US. The information others want to ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Credit rating in Germany ### Answer: The SCHUFA explicitly says on their website that their scoring system is a secret. However, if your goal is to be credit-worthy for example to get financing for a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is dividend included in EPS ### Answer: EPS is often earnings/diluted shares. That is counting shares as if all convertible securities (employee stock options for example) were converted. Looking at p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is dividend included in EPS ### Answer: Not quite. The EPS is noted as ttm, which means trailing twelve months --- so the earnings are taken from known values over the previous year. The number you q...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is dividend included in EPS ### Answer: No, dividends are not included in earnings. Companies with no earnings sometimes choose to pay dividends. Paying the dividend does not decrease earnings. It ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I get a bill (e.g. for internet service), is that a debt I owe? If no, what are the practical difference between a bill and a debt? ### Answer: From accounting perspective, an unpaid bill for inter...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If I get a bill (e.g. for internet service), is that a debt I owe? If no, what are the practical difference between a bill and a debt? ### Answer: A debt is created when the service is rendered or the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there cons to paying monthly bills with a rewards card and then paying it off monthly? ### Answer: There are a few potential downsides but they are minor: If you forget to make the payment the int...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there cons to paying monthly bills with a rewards card and then paying it off monthly? ### Answer: Pitfalls of paying plastic That being said, you can also find cards that have better than the 1% ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there cons to paying monthly bills with a rewards card and then paying it off monthly? ### Answer: Some accounts, such as my electric, and payments to the tax collector charge a significant enough...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Are there cons to paying monthly bills with a rewards card and then paying it off monthly? ### Answer: There are hidden costs to using rewards cards for everything. The credit card company charges fee...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I be building a house with the bank forever? ### Answer: No, you can't do this indefinitely. For one, you can't just take money out as home equity with no strings attached. The cash out is done as...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I be building a house with the bank forever? ### Answer: Another problem with this plan (assuming you get past Rocky's answer somehow) is that you assume that $50K in construction costs will trans...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: I am sorry to say, you are asking the wrong question. If I own a rental that I bought with cash, I have zero mortgage. The guy I se...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: The rent will be determined by: the rent being charged on similar houses near you. Your mortgage and other costs (very unfortunatel...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: As others have pointed out, you can't just pick a favorable number and rent for that amount. If you want to rent out your house, yo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: While JoeTaxpayer gave a very insightful answer, and clearly the best answer, let me break it down really simple for you. Talk with...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: first, let me reiterate what everyone else is saying about rental rates having nothing to do with your expenses. you should charge ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: I think you are trying to figure out what will be a break-even rental rate for you, so that then you can decide whether renting at ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: I just wanted to add one factor to the other answers. The cost of maintenance etc. is not a fraction of the cost of financing - it ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: Your reasoning is backwards. As others have pointed out, you cannot just decide how much you charge irrespective of the market. Let...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: Agree with the previous posts the question is poorly worded. -but- Clark Howard does say you really need to be getting 90% back i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: I think the mortgage must not be in the equation at all in order to determine how much to charge. Of course you want to cover your ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: In order to arrive at a decision you need the numbers: I suggest a spreadsheet. List the monthly and annual costs (see other respo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much more than my mortgage should I charge for rent? ### Answer: so if we rent it out we don't want to just charge what we're paying on our mortgage - we'd definitely be losing money if we did tha...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which tax year does a bonus fall under? ### Answer: From HMRC Note that the rule is when a person becomes entitled to payment of earnings. This is not necessarily the same as the date on which an empl...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Issuing bonds at discount - computing effective interest rate ### Answer: In this case the market interest rate is the discount rate that sets equal the market price (current value) of the bond to its...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Issuing bonds at discount - computing effective interest rate ### Answer: Yes, the "effective" and "market" rates are interchangeable. The present value formula will help make it possible to determine...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Issuing bonds at discount - computing effective interest rate ### Answer: If the market rate and coupon were equal, the bond would be valued at face value, by definition. (Not 100% true, but this is a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to calculate ownership for property with a partner ### Answer: I can't quite follow your question, so I'm proceeding under the following assumptions: - You paid £31,000 - Your partner paid £4,242 ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to calculate ownership for property with a partner ### Answer: To add to ChrisInEdmonton's answer: Your conveyancing solicitor should be able to advise on the details, but a typical arrangement in...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to calculate ownership for property with a partner ### Answer: i would recommend that you establish a landlord/tenant relationship instead of joint ownership (ie 100% ownership stake for one of yo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Do financial advisers in Canada who work at the bank, make investing decisions not in your best interest? ### Answer: The way this works, as I understand it, is that financial advisers come in two kin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which is the better strategy for buying stocks monthly? ### Answer: You will invest 1000£ each month and the transaction fee is 10£ per trade, so buying a bunch of stocks each month would not be wise....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which is the better strategy for buying stocks monthly? ### Answer: To optimize your return on investment, you need to buy low and sell high. If you knew that one stock had hit rock bottom, and the o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which is the better strategy for buying stocks monthly? ### Answer: Powers makes a good point: trading costs may eat up a significant portion of your ROI. A fee as little as 2% can consume more than 5...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which is the better strategy for buying stocks monthly? ### Answer: It would seem that you are in a position where you are able to save money and you hope to have your money work for you. From your st...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it a good investment for a foreigner to purchase a flat/apartment in China? ### Answer: I think a greater problem would be the protection of your property right. China hasn't shown much respect fo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it a good investment for a foreigner to purchase a flat/apartment in China? ### Answer: China is in the middle of a residential housing bubble, and now is probably a horrible time to invest in real...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it a good investment for a foreigner to purchase a flat/apartment in China? ### Answer: No, it's not. This could be a great question, but with no background, not so much. Do you live there now? Fo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it a good investment for a foreigner to purchase a flat/apartment in China? ### Answer: It is a lousy investment to purchase an apartment in China. Chinese citizens purchase apartments in China bec...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it a good investment for a foreigner to purchase a flat/apartment in China? ### Answer: More infomation is needed for any meaningful discussion about this. I just assume you want to buy in China m...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why REIT prices are not going down while bonds are being hammered? ### Answer: There are five main drivers to real estate returns: Income (cash flow from rental payments); Depreciation (as an expense ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why REIT prices are not going down while bonds are being hammered? ### Answer: I don't like REITs because they are more closely correlated to the movement of the stock market. They don't really do the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Dad paid cash for house and we want to put it in my name ### Answer: If your parents are not on the deed then I am not sure how it could be their house. It seems like the sale was done unofficially. I...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Typical discount for cash purchase on $1+ million homes? ### Answer: First, I assume you understand that 'Cash Offer' doesn't mean you really show up with cash (in a duffel bag...), but is an expressi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Typical discount for cash purchase on $1+ million homes? ### Answer: I don't have a solid data-backed answer, but this is too lengthy for a comment. I've read that on average, about 1-2% is what you c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Consolidate my debt? Higher APR, but what does that actually mean? ### Answer: There's a cliche, "out of the frying pan and into the fire". I've never had the occasion to use it till now. I understan...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Consolidate my debt? Higher APR, but what does that actually mean? ### Answer: does that mean that 30% of my monthly payment goes to interest? No, it's much worse then that. The APR is the annual perc...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Consolidate my debt? Higher APR, but what does that actually mean? ### Answer: No, it means that each year (Annual Payment Rate) you are accruing interest at 29.8%. If your principal is $10,000, that ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Consolidate my debt? Higher APR, but what does that actually mean? ### Answer: Your question indicates you really don't have a good grasp on personal finance. you might want to read a book or two. I...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Consolidate my debt? Higher APR, but what does that actually mean? ### Answer: No. It means each month the total amount you owe goes up by a factor of (1+0.298/12). So if you owed $23K at the beginn...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is forward P/E calculated using current price(if yes, how useful is it)? ### Answer: generally Forward P/E is computed as current price / forward earnings. The rationale behind this is that buying th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is forward P/E calculated using current price(if yes, how useful is it)? ### Answer: P/E can use various estimates in its calculation as one could speculate about future P/E rations and thus could det...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: “Correct” answer on Visa credit quiz doesn't make sense ### Answer: I agree with you. The quiz was looking at it differently, as if you had a huge card balance and were making minimum payments. The f...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: “Correct” answer on Visa credit quiz doesn't make sense ### Answer: I took the quiz that you linked too and answered with what I considered "ideal" answers with the exception of checking C for that pa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I help my friend change his saving habits? ### Answer: If he's not used to cooking, recipes might not be enough. Maybe he needs cooking lessons. I used to think if you could read, you could co...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I help my friend change his saving habits? ### Answer: Budgeting is the key. Saying that you need to eat out less and cook more is good, but ultimately difficult for some people, because it i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I help my friend change his saving habits? ### Answer: Get him the book "Total Money Makeover" (http://www.amazon.com/Total-Money-Makeover-Classic-Financial/dp/1595555277/ref=sr_1_1?ie=UTF8&qi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How can I help my friend change his saving habits? ### Answer: In the end, this is really not a finance question. It's about changing one's habits. (One step removed, however, since you are helping a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Understanding differences between S&P500 index-tracking ETFs ### Answer: Regarding SPY: "One SPDR unit is valued at approximately 1/10 of the value of the S&P 500. Dividends are distributed quarterly,...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Understanding differences between S&P500 index-tracking ETFs ### Answer: Back in the olden days, if you wanted to buy the S&P, you had to have a lot of money so you can buy the shares. Then somebody h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: It is true that all else being equal, you will pay a lower amount of total interest by paying dow...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: Very good Ben, in a more simplistic form: If debt was about math only, we would not have payday ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: In some cases, it might be rational to pay low-interest debt first, because the consequences of d...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: TL/DR Yes, The David popularized the Debt Snowball. The method of paying low balance first. It'...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: There are non-financial costs to having a debt: you need to remember to make monthly payments, pe...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: If you have a debt that has very low interest now, but you are aware that it's not going to stay ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: I recently paid off a line of credit on an investment property that I own. I had some surplus ca...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: Another unmentioned reason: flexibility and liquidity. There is a fundamental difference between...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: I wouldn't advocate it, but one reason to pay a lower interest rate is if you have $990 on a $100...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: It may be the case that some of your debts have a flat regular fee in addition to the interest, w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: Let's say I have two loans (say 2 car loans), and the high interest loan has a higher balance. B...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: There are a number of bona fide reasons to consider here. If there is a cost to discharging a sec...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: This is a slightly different reason to any other answer I have seen here about irrationality and ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: One reason to not do that is if you consider that one of the loans is at risk of being called in ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why would anyone want to pay off their debts in a way other than “highest interest” first? ### Answer: If the balance on the low rate loan is very high (say, an IBR student loan at 6% that accumulates...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I choose between buying a car or buying a plot of land in Pakistan? ### Answer: Your question has an interesting mix of issues. ASAP and 3-4 years doesn't feel like the same thing. ASAP results...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I choose between buying a car or buying a plot of land in Pakistan? ### Answer: “The plot of land definitely is going to give better results in long term.” Will it? Land is not guaranteed to g...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I've tracked my spending and have created a budget, now what do I do with it? ### Answer: I'm reminded of a conversation I had regarding food. I used the word 'diet' and got pushback, as I meant it in...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I've tracked my spending and have created a budget, now what do I do with it? ### Answer: Having been in exactly this position (not in a debt hole, built a budget to get a better view of what spending...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I've tracked my spending and have created a budget, now what do I do with it? ### Answer: I think the answers you're going to receive are all going to be a bit subjective. Looking at it from a high-le...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I've tracked my spending and have created a budget, now what do I do with it? ### Answer: Whether you use a professional financial planner or not, the basic steps are the same. It seems like you have ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I've tracked my spending and have created a budget, now what do I do with it? ### Answer: Use the budget to drive down spending so you can save (for retirement, for college, for expenses) and so you c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: When you pay monthly, you're making 12 payments / year. Assuming you have a payment of $1000/mo, that's $12,000/year that you're paying fo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: So the principle is true. Assuming that you get paid bi-weekly, you end up getting three paychecks two months during the year. Typically...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: Pete and Noah addressed the math, showing how this is, in effect, converting a 30yr to a ~23yr mortgage, at a cost, plus payment about 8% ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: Making extra principal payments will reduce the term of your loan. I wouldn't sign up for a biweekly schedule, just do it yourself so you ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: Another thing to consider is that paying extra principal (either via one of these services, or by including something extra with your norm...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: I'll preface this with saying that I'm not a finance or real estate professional, this is just how I understand the situation and what I'm...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: Interest is a fee that you pay in order to use someone else's money. Once you've made the deal, pretty much anything you do that reduces t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the catch with biweekly mortgage payments? ### Answer: Depending on who you have the loan through and how they figure the interest charges (whether daily, monthly, bi-monthly, etc. normally mon...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Name first on car loan can you also be the cosigner ### Answer: I want to first state that I'm not an attorney and this is not a response that would be considered legal advice. I'm going to assume t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 15 year mortgage vs 30 year paid off in 15 ### Answer: Your calculations are correct if you use the same mortgage rate for both the 15 and 30 year mortgages. However, generally when you apply for a 1...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 15 year mortgage vs 30 year paid off in 15 ### Answer: Why would anyone ever get a 15 year instead of just paying off a 30 year in 15 years? Because the rate is not the same. Never that I've seen in m...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 15 year mortgage vs 30 year paid off in 15 ### Answer: If the interest rate in both mortgages is the same, then yes, you will end up paying the same amount in interest if both are paid off in 15 years...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 15 year mortgage vs 30 year paid off in 15 ### Answer: 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...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 15 year mortgage vs 30 year paid off in 15 ### Answer: All of the answers given so far are correct, but rather narrow. When you buy a 30-year-mortgage, you are buying the right to pay off the debt in ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 15 year mortgage vs 30 year paid off in 15 ### Answer: Besides the reason in @rhaskett's answer, it is important to consider that paying off a 30-year mortgage as if it was a 15-year is much more inco...