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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why index funds have different prices? ### Answer: Funds which track the same index may have different nominal prices. From an investors point of view, this is not important. What is important is th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why index funds have different prices? ### Answer: To add on to the other answers, in asking why funds have different price points one might be asking why stocks aren't normalized so a unit price of $...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: In which situations is it better to consider a loan instead of paying cash? ### Answer: Your practice of waiting until you can pay cash is a good one. It will certainly prevent you from getting into d...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: In which situations is it better to consider a loan instead of paying cash? ### Answer: A loan with modest interest is better than paying by cash if there are better alternatives for investment. For e...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I pay into a Stocks & Shares LISA as well as a regular S&S ISA? ### Answer: Yes, this is fine: You can save up to £20,000 in one type of account or split the allowance across some or all of the ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Credit Card Purchase - 'it is the bank's money no[t] yours' ? ### Answer: Yes, they're referring to the credit card dispute (chargeback) process. In the case of dispute, credit card company will refun...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Credit Card Purchase - 'it is the bank's money no[t] yours' ? ### Answer: The statement is (in laymans terms - if not in real terms) correct. Most credit cards (I know this to be true for VISA and Mas...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does a no-limit charge card affect your credit score? ### Answer: Apparently it is up to the credit card company on how they want to report your available balance. Another disadvantage to the no-l...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: (Theoretical) Paying credit cards with other credit cards ### Answer: If you had a CC issuer that allowed you to do bill-pay this way, I suspect the payment would be considered a cash advance that wil...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: (Theoretical) Paying credit cards with other credit cards ### Answer: Three things prevent you from doing this: Credit cards generally don't accept other credit cards as payment. You could do this wi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: (Theoretical) Paying credit cards with other credit cards ### Answer: A "balance transfer" is paying one credit card with another. You probably get offers in the mail to do this all of the time. As ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: collateralized mortgage obligations ### Answer: I think the definition of overcollateralization on investopedia will answer this question for you. Namely this part: For example, in the case of a mort...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: collateralized mortgage obligations ### Answer: Say there are 5 people took loan of $100000 each. Those 5 people work in different jobs and have different capacity to payoff loan. Someone earning $400...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: collateralized mortgage obligations ### Answer: Actually, you're missing the key feature of CDOs. Most CDOs use (much to our economic misery, ultimately) a system call tranching. To simplify this id...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Isn't the subtraction of deprecation and amortization redundant in the calculation of Owner's Earnings? ### Answer: This formula is not calculating "Earnings". Instead, it is calculating "Free Cash F...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Starting long-term savings account as a college student ### Answer: Great question and great of you to be paying attention to this. Right now having the ability to save $2K per year might seem very o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Starting long-term savings account as a college student ### Answer: Where is the money coming from? If you already have the money (inheritance, gifts or similar) sitting in your account, you can just ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: In Australia, how to battle credit card debt? ### Answer: To confirm: you say you have credit card debt of $18,000 with min. repayment of $466.06, plus on top of this you are also paying off a car loa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: In Australia, how to battle credit card debt? ### Answer: Victor addressed the card issue with an excellent answer, I'd like to take a stab at the budget and income side. Your question clearly stated...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: In Australia, how to battle credit card debt? ### Answer: JoeTaxpayer mentioned a budget. Staying on top of your spending will be the result of getting out from under this debt. You may have Excel on ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: In Australia, how to battle credit card debt? ### Answer: Short-term, getting a balance transfer will help. It'll reduce the interest you pay. You can also reduce the interest you pay on your cars if...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I need a car for 2 years. Buy or lease (or something else)? ### Answer: Any one of your three options is viable and has its advantages and disadvantages. Personally, I would go for the used option, bu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I need a car for 2 years. Buy or lease (or something else)? ### Answer: Your short-term time frame makes buying used the best option, but it seems you already are aware of that. Look into a certified...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: I need a car for 2 years. Buy or lease (or something else)? ### Answer: Have you considered getting a bike? you would be able to ride it in Europe the same as over here because of no left right bias, ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: At what point is it most advantageous to cease depositing into a 401k? ### Answer: A fascinating view on this. The math of a 10% deposit and projected 10% return lead to an inevitable point when the a...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: At what point is it most advantageous to cease depositing into a 401k? ### Answer: It's probably advantageous to stop depositing into a 401(k) when one is no longer receiving payroll deductions into t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: At what point is it most advantageous to cease depositing into a 401k? ### Answer: You'd need to test the assumptions here - in effect you're saying that in 15 years your account will have a balance 1...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: At what point is it most advantageous to cease depositing into a 401k? ### Answer: The only time to stop saving money for retirement is when you have enough money to retire tomorrow. Not all of your "...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Cash or Bonds (UK) ### Answer: 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 ver...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: car purchase loan versus car collateral loan ### Answer: Generally speaking personal loans have higher rates than car loans. During fairly recent times, the market for car loans has become very compe...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to approach building credit without a credit card ### Answer: Ways to build credit without applying for credit cards: It takes some time for these types of actions to positively affect you. I'd s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to approach building credit without a credit card ### Answer: Apply for a secured credit card (several financial institutions provide these, including most banks. WalletHub gives you a way to sear...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to approach building credit without a credit card ### Answer: Keep in mind that credit takes time to build. Your best short-term solution is to save enough cash to put enough of a down-payment t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to approach building credit without a credit card ### Answer: 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 ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: End-of-season car sales? ### Answer: Manufacturers sometimes give incentives to car dealers to ensure that the prior year models are sold out before the year is up. However, dealers are usually prett...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: End-of-season car sales? ### Answer: It completely varies by manufacturer, dealer, and time of year, but in general yes, you can get a (sometimes significant) discount on brand new last year models. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Do the gain and loss during futures rollover each month will be even out in long run? ### Answer: There are 2 schools of thought in determining the price of a future contract in a day prior to expirat...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Where can I find company filing information in Singapore? ### Answer: If you are refering to company's financial reports and offerings, the required source for companies to disclose the information is...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Will having a secondary signee with bad credit on a mortgage raise or lower interest? ### Answer: between two people purchasing a house together, one with good and one with bad credit, will having bot...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Will having a secondary signee with bad credit on a mortgage raise or lower interest? ### Answer: Generally speaking the lower credit score trumps. In the case you cite, the lower credit score will p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Responsible investing - just a marketing trick? ### Answer: You are correct that, barring an equity capital raise, your money doesn't actually end up in the company. However, interest in their stock c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Responsible investing - just a marketing trick? ### Answer: A share is just a part ownership of a company. If you buy a share of a green stock in the open market, you now just own part of a green com...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I participate in a 401k if there is no company match? ### Answer: With a match, the 401(k) becomes the priority, up to that match, often ahead of other high interest debt. Without the match, t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I participate in a 401k if there is no company match? ### Answer: Another consideration that is not in the hard numbers. Many people, myself included, find it hard to have the discipline to sa...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I participate in a 401k if there is no company match? ### Answer: I believe @Dilip addressed your question alread, I am going to focus on your second question: What are the criteria one should ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is ScholarShare a legitimate entity for a 529 plan in California? ### Answer: To mhoran's point, yes, the company, TIAA-CREF is valid. I'd focus on the expenses - Their S&P fund (Index US Large Cap ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is ScholarShare a legitimate entity for a 529 plan in California? ### Answer: For a parent deciding on contributing to a 529 plan the first consideration is the plan run by the state government that w...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: Affinity fraud. You see, Madoff really didn't have to sell himself, people recommended him to their friends. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: If an offer "is only valid right now" and "if you don't act immediately, it will expire" that is almost always...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: In the case of an investment strategy, if you don't retain custodianship over your funds, or at least determin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: If anyone offers you guaranteed better than average returns, run. They are either lying to you or to themselve...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: Investing in a business can be daunting and risky, so it is not for everyone. The most common pitfalls are men...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: Anything where the initial step of someone trying to get you into anything financial is to send you an e-mail....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: Cosigning on a loan. More broadly any exchange of value between family members or friends. Despite good intent...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: If some one ever offers High returns and low risk they are either extremely stupid or scamming you. If they di...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Most common types of financial scams an individual investor should beware of? ### Answer: Pretty much any financial transaction where they start by calling you on the phone is a scam. They aren't doin...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which student loans to pay off first: Stafford or private? ### Answer: At the current rates, stated in the question, I would push additional funds towards your Stafford loans as their higher interest ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Which student loans to pay off first: Stafford or private? ### Answer: Without knowledge of the special provisions of your loan contract, the one with the highest interest rate should be paid first. O...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Impact of RMD on credit worthiness ### Answer: I feel like this has nothing to do with income, and as such RMDs will not really help or harm you. After a person passes, credit card companies are unlik...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Impact of RMD on credit worthiness ### Answer: My understanding is that credit card companies are allowed to accept retirement income as part of the income that would qualify you for credit. The Consu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Impact of RMD on credit worthiness ### Answer: The actual policy will vary based on the specific bank. But, if I were in your shoes I'd include RMDs in my stated income for credit card purposes. ###e...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do so many NFL (pro football) players have charities? ### Answer: In addition to tax-related benefits, one answer may be that it helps them avoid being inundated with requests to support other fou...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do so many NFL (pro football) players have charities? ### Answer: BobbyScon's answer really covers this, but perhaps isn't sufficiently explicit. Reason 1 of the quotation is the largest, by far:...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: There are many reasons for buying stock for dividends. You are right in the sense that in theory a stock...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: You buy stocks for dividends over the long term. If a share of stock pays $1.00 in dividends every quart...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: I'm not a financial expert, but saying that paying a $1 dividend will reduce the value of the stock by $1...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: Another plus, besides supplemental income, to receiving dividend checks as opposed to reinvesting them is...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: Their is no arbitrage opportunity with "buying dividends." You're buying a taxable event. This is a large...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: I'm fairly convinced there is no difference whatsoever between dividend payment and capital appreciation....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: Best as i can tell, the simple answer is: the smartest approach to investing for dividends is to pick a c...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: The stock will slowly gain that $1 during the year. Suppose we have the highly theoretical situation that...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: If stock price drops by the amount of dividend paid, what is the use of a dividend ### Answer: Victor, Yes the drop in price does completely cancel the dividend at first. However, as others have noted...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How should I be contributing to my 401(k), traditional or Roth? ### Answer: I wrote a brilliant guest post at Don't Mess With Taxes, titled Roth IRAs and Your Retirement Income. (Note - this article n...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How should I be contributing to my 401(k), traditional or Roth? ### Answer: I'm of the opinion that it doesn't matter much unless something in your life changes in retirement. And since many retiremen...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How should I be contributing to my 401(k), traditional or Roth? ### Answer: The Finance Buff discusses why the Roth 401k is often disadvantaged compared to a Traditional 401k in the article The Case A...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 23 and on my own, what should I be doing? ### Answer: Congratulations on earning a great income. However, you have a lot of debt and very high living expenses. This will eat all of your income if you ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 23 and on my own, what should I be doing? ### Answer: Assuming the numbers in your comments are accurate, you have $2400/month "extra" after paying your expenses. I assume this includes loan payments...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 23 and on my own, what should I be doing? ### Answer: You are asking all the right questions. I predict a bright future! In addition to the excellent advice from Phil, I would add that NOW is the time...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 23 and on my own, what should I be doing? ### Answer: Okay, since you work hourly there are two substantial changes you can make: 1) Move out of Astoria and closer to Jersey City, such as, to Jersey C...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 23 and on my own, what should I be doing? ### Answer: You are doing Great! But you might want to read a couple of books and do some studying on budgeting and personal finance - education yourself now ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: 23 and on my own, what should I be doing? ### Answer: I also had a student loan and glad you are taking a good look on interest rate as it really makes a huge difference. One of the strategies I follo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages of paying more of your mortgage while you know you won't continue to live there your whole life ### Answer: In the Netherlands specifically, there are several reasons to pay extra off on yo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages of paying more of your mortgage while you know you won't continue to live there your whole life ### Answer: I will add one thought on to this thread. This is a financial concept called "Ne...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages of paying more of your mortgage while you know you won't continue to live there your whole life ### Answer: It's pretty simple - the less money you owe the less interest you pay. Paying do...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages of paying more of your mortgage while you know you won't continue to live there your whole life ### Answer: The mortgage is a debt and you pay interest on it, typically more than you can ea...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages of paying more of your mortgage while you know you won't continue to live there your whole life ### Answer: Another factor: When you sell this house and buy the next one, the more equity y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Advantages of paying more of your mortgage while you know you won't continue to live there your whole life ### Answer: The main factors you have to consider are: Could you get a better return on that ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to prepare to purchase a house? (Germany) ### Answer: Figure out how much money you earn, what you spend it on, and how that will change when you have kids (will one of you stay at home? if not, h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Car Loan upside down--refinance before selling? ### Answer: Carmax will be interested in setting a price that allows them to make money on the reselling of the vehicle. They won't offer you more than ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Car Loan upside down--refinance before selling? ### Answer: Having just gone through selling a car, I can tell you that CarMax will most likely not be the best solution. I recently sold my '09 Pontiac...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Car Loan upside down--refinance before selling? ### Answer: As for refinancing: Many institutions charge up-front fees when doing any type of vehicle loan. Typically this is in the neighborhood of 1% ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: why can't I just use the same trick with my own shares to make money on the way down? Because if you sell shares out of your own portfolio, by ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: In order to compare the two, you need to compare your entire portfolio, which is not just how much money you have, but how much stock. In both sce...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: Concerning the general problem of short selling and the need to borrow shares to complete the transaction : Selling short is a cash transaction. ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: Selling short is simply by definition the selling, then later re-buying of stock you don't initially own. Say you tally your entire portfolio bala...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: This can be best explained with an example. Bob thinks the price of a stock that Alice has is going to go down by the end of the week, so he borro...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: A simple way to ask the question might be to say "why can't I just use the same trick with my own shares to make money on the way down? Why is bor...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: You can't make money on the way down if it was your money that bought the shares when the market was up. When you sell short, borrowing lets you ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why does short selling require borrowing? ### Answer: It's actually quite simple. You're actually confusing two concept. Which are taking a short position and short selling itself. Basically when taki...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do you quantify investment risk? ### Answer: The question is: how do you quantify investment risk? As Michael S says, one approach is to treat investment returns as a random variable. Bill Goetzma...