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Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I go about finding an honest & ethical financial advisor? ### Answer: The other answers are good, but not UK-specific. You need to look for an Independent Financial Advisor (IFA). These are reg...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I go about finding an honest & ethical financial advisor? ### Answer: I think the other answers raise good points. But to your question, "How do I find an honest financial adviser" ask your fr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I go about finding an honest & ethical financial advisor? ### Answer: Large and well-known companies are typically a good starting point. That doesn't mean that they are the best or even above ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I go about finding an honest & ethical financial advisor? ### Answer: If your financial needs aren't complex, and mostly limited to portfolio management, consider looking into the newish thing ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How do I go about finding an honest & ethical financial advisor? ### Answer: Most individuals do not need a personal financial advisor. If you are soon entering the world of work, your discretionary i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: Good question. If a person has a choice, it is probably better to pay cash. But not always. If your large pile ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: The advantage of using a mortgage is that you pay for a house at TODAY's price, using TOMORROW's money. Your qu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: Besides all of the other answers, I will point out that many people simply don't have enough cash sitting aroun...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: Some countries, like the United States, allow a mortgage interest tax deduction. This means the interest you p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: A $100K house and $100K are not equivalent assets. Here's a hypothetical... You and I both work for the same co...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: I believe the reason is because society and the economy is set up a certain way, and re-enforced by the governm...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do people use mortgages, when they could just pay for the house in full? ### Answer: Condensed to the essence: if you can reliably get more income from investing the cost of the house than the mor...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Homeowners: How can you protect yourself from a financial worst-case scenario? ### Answer: Think about your priorities in life. Everybody is a little different. In my case I have a wife and child, s...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Homeowners: How can you protect yourself from a financial worst-case scenario? ### Answer: Honestly, the best way to manage this risk is to manage your savings appropriately. Many experts recommend th...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Homeowners: How can you protect yourself from a financial worst-case scenario? ### Answer: I am lucky enough to have chosen a flexible mortgage that allows me to change payment amounts at certain, ver...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Homeowners: How can you protect yourself from a financial worst-case scenario? ### Answer: If you have doubts about the long term prospects at your employer or jobs in your area, you may want to keep ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When a Company was expected and then made a profit of X $ then that X$ increased it's share price. or those the Sellers and Buyers [duplicate] ### Answer: There are a few reason why share prices incre...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: That "something" you are signing means you are liable for the mortgage payments - yes, all of the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: What are the risks, if any The risks are exemplified by the outcomes presented on this website, i...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: Wrong way round. Transitional arrangements are non-binding guidelines that the lenders can observ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: You should only loan money to friends or relatives if you are fully accepting the possibility of ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: Something else to consider, even if your friend is on the up and up and never misses a payment: ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: Short answer: don't do it. Unless you know something that the bank doesn't, it's safe to assume t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: Both of you sit down with a lawyer who practices in real estate and foreclosures, and hash out ev...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: This is not a full answer and I have no personal finance experience. But I have a personal story ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: The risk is that you will owe the bank the principal amount of the mortgage. Based on your questi...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: My friend wants to put my name down for a house he's buying. What risks would I be taking? ### Answer: If you really want to help your friend buy a house, make a counter-offer to buy the house yoursel...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investments beyond RRSP and TFSA, in non-registered accounts? ### Answer: I quite like the Canadian Couch Potato which provides useful information targeted at investors in Canada. They specifically pr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Investments beyond RRSP and TFSA, in non-registered accounts? ### Answer: You haven't looked very far if you didn't find index tracking exchange-traded funds (ETFs) on the Toronto Stock Exchange. Ther...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does the importance of a cash emergency fund change when you live in a country with nationalized healthcare? ### Answer: Unanticipated unemployment is usually the triggering factor for drawing on ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does the importance of a cash emergency fund change when you live in a country with nationalized healthcare? ### Answer: The issue is how likely you will have zero income for six months, and what ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does the importance of a cash emergency fund change when you live in a country with nationalized healthcare? ### Answer: There are, of course, many possible financial emergencies. They range from ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Do high interest rates lead to higher bond yields or lower? ### Answer: It is important to distinguish between cause and effect as well as the supply (saving) versus demand (borrowing) side of money t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Do high interest rates lead to higher bond yields or lower? ### Answer: Imagine that the existing interest rate is 5%. So on a bond with face value of 100, you would be getting a $5 coupon implying a ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much is inflation? ### Answer: There is a thing called the consumer price index (CPI) There is a basket of goods that the people who keep the index basically shop for. It is much more detailed fo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much is inflation? ### Answer: To add to MrChrister's answer: Canada also has a Consumer Price Index (CPI) used to measure inflation that is distinct and separate from that maintained by the Unit...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much is inflation? ### Answer: FYI...prices don't always go up. Inflation is a monetary phenomenon. I'm simplifying greatly here: if more money is printed (or the money supply increases through ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How much is inflation? ### Answer: Nobel laureate economist, Paul Krugman, wrote a piece many moons ago about economic expansion and money supply. As an illustration of how money supply affects the e...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How exactly does a country devalue its currency? ### Answer: Does some official tell the Foreign Exchange the the new exchange rate for the yuan is 0.98 * the current exchange rate? For China (and ot...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How exactly does a country devalue its currency? ### Answer: Currencies that are pegged or fixed require that foreign currencies are held by the central issuer at a proportional amount. This is analo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What investment strategy would you deduce from the latest article from Charles Munger? ### Answer: So, I've read the article in question, "Basically, It's Over". Here's my opinion: I respect Charlie ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What low-fee & liquid exchange-traded index funds / ETFs should I consider holding in a retirement portfolio? ### Answer: Here's a dump from what I use. Some are a bit more expensive than those that y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What low-fee & liquid exchange-traded index funds / ETFs should I consider holding in a retirement portfolio? ### Answer: I use the following allocation in my retirement portfolio: I prefer these beca...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What low-fee & liquid exchange-traded index funds / ETFs should I consider holding in a retirement portfolio? ### Answer: @bstpierre gave you an example of a portfolio similar to IFA's 70 portfolio. P...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What low-fee & liquid exchange-traded index funds / ETFs should I consider holding in a retirement portfolio? ### Answer: If liquidity and cost are your primary objectives, Vanguard is indeed a good b...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I make my savings keep in check with or beat inflation over a long time period via index funds? ### Answer: Question 2 Some financial institutions can provide a way to invest small amounts with lo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I make my savings keep in check with or beat inflation over a long time period via index funds? ### Answer: While nothing is guaranteed - any stock market or country could collapse tomorrow - if y...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I make my savings keep in check with or beat inflation over a long time period via index funds? ### Answer: If I invest in index funds or other long term stocks that pay dividend which I reinvest,...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I make my savings keep in check with or beat inflation over a long time period via index funds? ### Answer: For your base question, yes. (Barring some major collapse-of-civilization event, but in...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Can I make my savings keep in check with or beat inflation over a long time period via index funds? ### Answer: See the following information: http://www.bogleheads.org/wiki/Treasury_Inflation_Protect...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between buying bonds and buying bond funds for the long-term? ### Answer: A bond fund will typically own a range of bonds of various durations, in your specific fund: The fund ho...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between buying bonds and buying bond funds for the long-term? ### Answer: Yes, bond funds are marked to market, so they will decline as the composition of their holdings will. Ho...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What's the difference between buying bonds and buying bond funds for the long-term? ### Answer: why would anyone buy a long-term bond fund in a market like this one, where interest rates are practic...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do volatility stocks/ETFs (TVIX, VXX, UVXY) trend down in the long-term? ### Answer: In an attempt to express this complicated fact in lay terms I shall focus exclusively on the most influential f...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do volatility stocks/ETFs (TVIX, VXX, UVXY) trend down in the long-term? ### Answer: There is more than a single reason why TVIX loses value over time. Futures curve. VIX is always expected to tre...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why do volatility stocks/ETFs (TVIX, VXX, UVXY) trend down in the long-term? ### Answer: Since these indices only try to follow VIX and don't have the underlying constituents (as the constituents don'...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why aren't bond mutual funds seeing huge selloffs now? ### Answer: The Fed sets the overnight borrowing costs by setting its overnight target rate. The markets determine the rates at which the treas...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why aren't bond mutual funds seeing huge selloffs now? ### Answer: Since 1971, mortgage interest rates have never been more than .25% below current rates (3.6%). Even restricting just to the last fo...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does owning a home and paying on a mortgage fit into family savings and investment? ### Answer: Your home (the one you live in) is not an investment. Its an expense/liability/asset, but its someth...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does owning a home and paying on a mortgage fit into family savings and investment? ### Answer: Have you ever tried adding up all your mortgage payments over the years? That sum, plus all the mone...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does owning a home and paying on a mortgage fit into family savings and investment? ### Answer: Unless you plan to sell your home and live in a box during your retirement I wouldn't consider it an...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does owning a home and paying on a mortgage fit into family savings and investment? ### Answer: Like @littleadv, I don't consider a mortgage on a primary residence to be a low-risk investment. It...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does owning a home and paying on a mortgage fit into family savings and investment? ### Answer: A home is an investment, but the value it returns isn't primarily financial ($$) - they are consumpt...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How does owning a home and paying on a mortgage fit into family savings and investment? ### Answer: 1) How does owning a home fit into my financial portfolio? Most seem to agree that at best it is a h...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Must ETF companies match an investor's amount invested in an ETF? ### Answer: First, it's an exaggeration to say "every" dollar. Traditional mutual funds, including money-market funds, keep a small fr...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Must ETF companies match an investor's amount invested in an ETF? ### Answer: Does the bolded sentence apply for ETFs and ETF companies? No, the value of an ETF is determined by an exchange and thus t...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Must ETF companies match an investor's amount invested in an ETF? ### Answer: The point here is actually about banks, or is in reference to banks. They expect you know how a savings account at a bank ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation mean to me? ### Answer: Inflation as defined in the general, has many impacts at a personal level. For example, you say that the reduction in the price of oil has no impact on you....
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation mean to me? ### Answer: Inflation data is a general barometer for inflation that a typical consumer would experience. Generally when calculating inflation for yourself you would o...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation mean to me? ### Answer: The general discussion of inflation centers on money as a medium of exchange and a store of value. It is impossible to discuss inflation without considering...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation mean to me? ### Answer: It means that your money does not have the same amount of buying power. ###end
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation mean to me? ### Answer: Everyone buys different kinds of goods. For example I don't smoke tobacco so I'm not affected by increased tobacco prices. I also don't have a car so I'm no...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What does inflation mean to me? ### Answer: short answer: any long term financial planning (~10yrs+). e.g. mortgage and retirement planning. long answer: inflation doesn't really matter in short tim...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Does a falling dollar mean doom for real estate? ### Answer: A falling $AUD would be beneficial to exporters, and thus overall good for the economy. If the economy improves and exporters start growing...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the economic explanation for the high cost of weddings? ### Answer: There is the price they want and the price you pay. Everything is negotiable when its a service (always possible, but usuall...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When should you use an actively managed mutual fund in a 401k? ### Answer: For US stocks it's a bit of a gamble. Many actively managed funds underperform the market indexes, but some of them outperfor...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: When should you use an actively managed mutual fund in a 401k? ### Answer: By definition, actively managed funds will underperform passive index funds as a whole. Or more specifically: The aggregate p...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the “point” (purpose) of the S&P 500? ### Answer: I hate to point to Wikipedia as an answer, but it does describe exactly what you are looking for... The S&P 500 is a free-float capitalizati...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Why did gold dip in 2011 ### Answer: The cause of the increase in 2006-2011 was the financial crisis, where, if you recall, the global banking system came close to collapse for reasons that are well ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: Talk freely about what you can now do because of saving. If you plan to retire sooner than most, or more comfortably than most, and can tie that...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: I posted a comment in another answer and it seems to be approved by others, so I have converted this into an answer. If you're talking about you...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: Although my kid just turned 5, he's learning the value of money now, which should help him in the future. First thing, teach him that you exchan...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: Are you sure the question even makes sense? In the present-day world economy, it's unlikely that someone young who just started working has the ...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: I recommend pulling up a retirement calculator and having an honest conversation about how long term savings works, and the power of compound in...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: As a 20 year old who has just started earning enough to save, I suggest showing them the different types of lifestyles they could live in the fu...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: Teach them that money can help solve most (if not all the problems) in life. If they truly appreciate the value of saving every single penny, ev...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: How to motivate young people to save money ### Answer: In the United States you can't, because the average millennial in the United States has no opportunity to save money. Either you get a college e...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Buying Fixed Deposit in India from Europe ### Answer: If the intention is after maturing to convert back the Rupees into Euro, its not a good idea. Generally the interest rate in Euro and the interes...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Buying Fixed Deposit in India from Europe ### Answer: A few weeks ago, I was thinking about this exact thing (except swap Euros for Canadian Dollars). The good news is that there are options. Option 1...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Buying Fixed Deposit in India from Europe ### Answer: You could go further and do a carry trade by borrowing EUR at 2% and depositing INR at 10%. All the notes above apply, and see the link there. ###...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Buying Fixed Deposit in India from Europe ### Answer: About the inflation or low interest rates in both the countries is out of the equation especially since rupee is always a low currency compared to...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do? ### Answer: So "Operation Twist" is actually a pretty simple concept. Here's the break down: The Fed sells short-term treas...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do? ### Answer: To understand the Twist, you need to understand what the Yield Curve is. You must also understand that the pri...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it ever logical to not deposit to a matched 401(k) account? ### Answer: The original question was aimed at early payment on a student loan at 6%. Let's look at some numbers. Note, the actual numbe...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it ever logical to not deposit to a matched 401(k) account? ### Answer: Whether or not it is logical probably depends on individual circumstance. When you take on (or maintain) debt, you are choos...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it ever logical to not deposit to a matched 401(k) account? ### Answer: If your plan permits loans, deposit enough through the year to maximize the match and then take a loan from the plan. Use the...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it ever logical to not deposit to a matched 401(k) account? ### Answer: The other answers assumed student loan debt -- and for that, it's rarely worth it (unless your company only offers managed pl...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it ever logical to not deposit to a matched 401(k) account? ### Answer: One situation where it would be prudent not to contribute would be if expenses are so tight that you cannot afford to contrib...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Is it ever logical to not deposit to a matched 401(k) account? ### Answer: Some have suggested you can put the money in the 401k then take a loan to pay off the student loan debt. Some things to cons...
Below is an instruction that describes a task. Write a response that appropriately completes the request. ### Question: Should I buy a house or am I making silly assumptions that I can afford it? ### Answer: The (interest bearing) mortgage of £300,000 would be SIX times your salary. That's a ratio that was found in Jap...