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Is there a tax deduction for renting office space in service of employer? | I disagree with BrenBran, I don't think this is qualified as unreimbursed employee expense. For it to qualify, it has to be ordinary and necessary, and specifically - necessary for your employer. This is not the case for you, as there's no such necessity. From employer's perspective, you can work from your home just as... |
How and where can I deposit money to generate future payments / income? | If you're in the USA and looking to retire in 10 years, pay your Social Security taxes? :P Just kidding. Do a search for Fixed Rate Annuities. |
Why can't you just have someone invest for you and split the profits (and losses) with him? | Written with some mild snark , but no insult intended, because financial stuff can be ridiculously confusing... Looked at another way, you're basically asking if the Biblical "Parable of the Talents" can be implemented as a business model. You as the investor wish to be the "master", with the entity doing the investin... |
How long do you have to live somewhere to be a resident for tax purposes? | If you are going to be trying clever stuff with taxes in different place, you probably need a professional. Different countries definitely have different laws on the subject. For example (several years ago) the UK considered you absent from the UK for tax purposes from the day you left, provided you were gone for a ye... |
Friend was brainwashed by MLM-/ponzi investment scam. What can I do? | The title of your question basically asks: What can I do? And you state this regarding the meeting and “advice” they gave towards criticism of their method: While this they also indoctrinated that you should avoid talking to people talking bad about it (or say it is scam) because you gain no money from them and the... |
Should I always pay my credit at the last day possible to maximize my savings interest? | If you have the ability to pay online with a guaranteed date for the transaction, go for it. My bank will let me pay a bill on the exact date i choose. When using the mail, of course, this introduces a level of risk. I asked about rates as the US currently has a near zero short term rate. At 3.6%, $10,000, this is $30... |
What happens if I intentionally throw out a paycheck? | In a nutshell, throwing your taxable income in the trash does not remove it from your taxable income; you still have to report in your tax filing, and pay taxes as needed. Especially as you could at any time request your employer to write you a replacement check. I would expect them to start charging a fee for reprinti... |
How does a limit order work for a credit spread? | As you probably know, a credit spread involves buying a call (or put) at one strike and selling another call (or put) at another with the same maturity, so you're dealing with two orders. Your broker will likely have to fill this order themselves, meaning that they'll have to look at the existing bid/asks for the diffe... |
World Indexes - Variance between representation of a country's stocks and the country's proportion of world GDP | Stock market indexes are generally based on market capitalization, which is not the same as GDP. GDP includes the value of all goods and services produced in a country; this includes a large amount of small-scale production which may not be reflected in stock market capitalizations. Thus the ratio between countries' ... |
International (ex-US) ETFs with low exposure to financial sector? | Another European financial ETF that you could sell short is the iShares MSCI Europe Financials Sector Index Fund (EUFN). It's traded on American exchanges, so it should be easier to access if you're in the United States. It is a relatively low-volume issue, however, so it may be difficult to locate shares to short, and... |
Someone asks you to co-sign a loan. How to reject & say “no” nicely or politely? | I'm going to be buying a house / car / home theater system in the next few months, and this loan would show up on my credit report and negatively impact my score, making me unable to get the financing that I'll need. |
Is it a good idea to get a mortgage when buying a house, for credit reasons? | I would go with the family route if I was you. And i think many other people would if they were fortunate to have such a great option. This will allow you to move faster when your trying to buy a new house because you can easily get a mortage if you see a stellar deal. Also you can establish credit in much cheaper way... |
I've got $100K to invest over the next 2 to 7 years. What are some good options? | Given your timeframe, risk tolerance, and the fact that you don't need this money, I would suggest a balanced approach. Something like: If you want to have fun investing, you could look into things like lendingclub, or bonds, or stocks, etc. But an allocation like I've outlined above is a pretty good balance of risk an... |
In the US, does getting a loan with a cosigner, help your credit rating? | It all comes down to how the loan itself is structured and reported - the exact details of how they run the loan paperwork, and how/if they report the activity on the loan to one of the credit bureaus (and which one they report to). It can go generally one of three ways: A) The loan company reports the status to a cre... |
How does one value Facebook stock as a potential investment? | In the long term, a P/E of 15-25 is the more 'normal' range. With a 90 P/E, Facebook has to quadruple its earnings to get to normal. It this possible? Yes. Likely? I don't know. I am not a stock analyst, but I love numbers and try to get to logical conclusions. I've seen data that worldwide advertising is about $400B,... |
Why do companies have a fiscal year different from the calendar year? | I know some companies or entities have large incomes or expenses at certain times of the year, and like to close their books after these large events. For example where I work, the primary seasonal income comes after summer, so our fiscal year ends at the last days of October. This gives the accountants enough time ... |
ISA trading account options for US citizens living in the UK | This sounds like a FATCA issue. I will attempt to explain, but please confirm with your own research, as I am not a FATCA expert. If a foreign institution has made a policy decision not to accept US customers because of the Foreign Financial Institution (FFI) obligations under FATCA, then that will of course exclude y... |
Solid reading/literature for investment/retirement/income taxes? | For the mechanices/terms of stock investing, I recommend Learn to Earn by Peter Lynch. I also like The Little Book of Common Sense Investing by John Bogle. It explains why indexing is the best choice for most people. For stock picking, a good intro is The Little Book of Value Investing by Chris Brown. And then there is... |
Should I Use an Investment Professional? | Ask yourself the same question for furniture making. Would you feel more comfortable sitting in a chair that you made yourself versus one that you bought from a furniture store? How about one that you bought from IKEA and assembled? For an experienced, competent furniture maker, you might be able to make an equivalent... |
Now that Microsoft Money is gone, what can I do? [duplicate] | Mint.com is a fantastic free personal finance software that can assist you with managing your money, planning budgets and setting financial goals. I've found the features to be more than adequate with keeping me informed of my financial situation. The advantage with Mint over Microsoft Money is that all of your debit/c... |
Can you sell stocks/commodities for any price you wish (either direct or market)? | I think for this a picture is worth a thousand words. This is a "depth chart" that I pulled from google images, specifically because it doesn't name any security. On the left you have all of the "bids" to buy this security, on the right you have the "asks" to sell the security. In the middle you have the bid/ask spr... |
How to evaluate stocks? e.g. Whether some stock is cheap or expensive? | duffbeer's answers are reasonable for the specific question asked, but it seems to me the questioner is really wanting to know what stocks should I buy, by asking "do you simply listen to 'experts' and hope they are right?" Basic fundamental analysis techniques like picking stocks with a low PE or high dividend yield a... |
Why is tax loss harvesting helpful for passive investing? | You also may want to consider how this interacts with the stepped up basis of estates. If you never sell the stock and it passes to your heirs with your estate, under current tax law the basis will increase from the purchase price to the market price at the time of transfer. In a comment, you proposed: Thinking mo... |
How can I estimate business taxes / filing fees for a business that has $0 income? | You need to hire a tax professional and have them sort it out for you properly and advise you on how to proceed next. Don't do it yourself, you're way past the stage when you could. You're out of compliance, and you're right - there are penalties that a professional might know how to mitigate, and maybe even negotiate ... |
Basic Algorithmic Trading Strategy | This strategy is called trading the 'Golden Cross' if the 50 day SMA moves above the 200 day, or the 'Death Cross' when the 50 day SMA moves below the 200 day SMA. Long-term indicators carry more weight than shorter-term indicators, and this cross, in a positive direction signals a change in momentum of the stock. You ... |
Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA? | I agree with harmanjd – best to roll it over to an IRA. Not only does that afford you better control of your money as pointed out already, but: If you choose your IRA provider wisely, you can get an account that provides you with a much wider array of investing choices, including funds and ETFs that charge much lower ... |
Does a 1045 exchange require any filing prior to that years tax return? | When you get into reading Revenue Rulings and Treasury Regulations - I'd suggest hiring a professional to do that for you. Especially since you also need to assure that the new stock does indeed qualify as QSBS. However, from the revenue ruling you quoted it doesn't sound like there's any other requirement other than r... |
How can I get a wholesaler ID number? | Seems like it's more dependent on who you want to be your supplier. The times I've been involved in requesting this, each company had its own application form. They usually need proof of business activity, which gets back to SpecKK's answer. |
Roth IRA all in one fund, or not? [duplicate] | In your case, you could very well leave it in something like FFFFX, which for readers is a self balancing fund with a target retirement date of 2040. These funds are a conglomeration of other funds that tend to move more conservatively as time passes. However, I like to put no more than 10% of my portfolio in one fund... |
Fractional Reserve Banking and Insolvency | It certainly is possible for a run on the bank to drive it into insolvency. And yes, if the bank makes some bad loans, it can magnify the problem. Generally, this does not happen, though. Remember that banks usually have lots of customers, and people are depositing money and making mortgage payments every day, so the... |
Investing / Options idiot - how can I get out of this position? | My understanding is that all ETF options are American style, meaning they can be exercised before expiration, and so you could do the staggered exercises as you described. |
Where can I find all public companies' information? | Edgar Online is the SEC's reporting repository where public companies post their forms, these forms contain financial data Stock screeners allow you to compare many companies based on many financial metrics. Many sites have them, Google Finance has one with a decent amount of utility |
In a competitive market, why is movie theater popcorn expensive? | The cost of the popcorn is simply the hidden extension of the price the consumer pays for the movie ticket. Similar to the tips in the restaurant. And movie theaters do not compete by lowering the unit price. Instead to maintain the revenue per customer they try to offer more value - bigger screen, better sound, more c... |
Looking to buy a house in 1-2 years. Does starting a Roth IRA now make sense? | If you are going to be buying a house in 1-2 years, I would be putting my money into a short term holding area like a high interest (which isn't that high right now) or a CD (also low interest) because of your near-term need. I wouldn't use the Roth option for your down payment money. If you invest in something volati... |
Should I pay my Education Loan or Put it in the Stock Market? | The fact that you are planning to sell the property does not make paying down the mortgage a bad idea. Reducing the principal immediately reduces the amount of interest you are paying every month. Run the numbers to see how much money that actually saves you over the time you expect to hold the loan. |
Can stock brokerage firms fail? | Yes, any company can go under. SIPC offers a level of protection. They don't guarantee against stocks dropping, but will replace stocks that you owned, but the broker stole from you. (overgeneralization). There's a $500K limit, with $250K max in cash. |
Will a credit card issuer cancel an account if it never incurs interest? | Credit card merchant fees are $0.15 - $0.40 per transaction plus 1.5-4% of the amount charged. Card issuers are competing to get to be the card in your pocket that you use on a daily basis. If you were a card issuer, wouldn't you like to get 1.5-4% of every transaction I make for the rest of my life? As a side note, ev... |
What is a good size distribution for buying gold? | If the "crash" you worry about is a dissolution of the euro, then the main thing you should concern yourself with is liquidity. For that, purchase the most highly liquid gold ETF or futures contract, whichever is more appropriate for the total amount of money involved. Any other way and you will lose a significant ch... |
What are my tax-advantaged investment options at a university job? | Yes. Two years after your first contribution to the SIMPLE IRA, you can roll it to a traditional IRA. You can still contribute "pre-tax", but the mechanism will be slightly different, since with an employer plan the contribution was automatically deducted from your paycheck. With an individual plan, you make the cont... |
What is 'consolidating' debt and why do people do it? | The debt on Credit Cards is pretty high. Its in the range of 30-40% APR. There could also be a case very high personal loan for medical or other personal emergencies at a rate in excess of 15%. The debt consolidation would offer this at a very low APR There are institutions that offer debt consolidation services that w... |
What governs the shape of price history graphs? | Dividend-paying securities generally have predictable cash flows. A telecom, electric or gas utility is a great example. They collect a fairly predictable amount of money and sells goods at a fairly predictable or even regulated markup. It is easy for these companies to pay a consistent dividend since the business is "... |
Do I need a Like-Kind Exchange when selling a personal vehicle for a company car | You cannot do a like-kind (Sec. 1031) exchange for personal property, only for business/investment property. Since you said that you traded in your personal car - no like-kind exchange is possible. Also, since the new car doesn't belong to you - you didn't actually perform any exchange. You sold your old car, but you d... |
How to invest for the event of a US default? | Lots of opportunities during threats to US debt demand. Most just involve being short the S&P or long the VIX (or short treasury bond futures, or short a US dollar currency pair). Those are the opportunities. And if you are worried about the utility of speculating in US dollars on a decline of the US dollar, then it is... |
Investment strategy for retired couple | The safest investment in the United States is Treasures. The Federal Reserve just increased the short term rate for the first time in about seven years. But the banks are under no obligation to increase the rate they pay. So you (or rather they) can loan money directly to the United States Government by buying Bills, N... |
Difference between Hedge Fund and Private Equity? | Private Equity is simply some type of an investment company, which is owned in a way not accessible to the public. ie: Warren Buffet runs Berkshire Hatheway, which is an investment company which itself is traded on the New York Stock Exchange. This means that anyone can buy shares in the company, and own a small fracti... |
Self-employment alongside full-time job | What you need to do is register as a sole trader. This will automatically register you for self assessment so you don't have to do that separately. For a simple business like you describe that's it. Completing your self assessment will take care of all your income tax and national insurance obligations (although as me... |
Is there any online personal finance software without online banking? | CashBase has a web app, an iPhone app and an Android app, all sync'ed up. It doesn't integrate with banks automatically, but you can import bank statements as CSV. Disclosure: Filip is CashBase's founder. |
I might use a credit card convenience check. What should I consider? | Well, you might take a minor hit to your credit score. This is snapshot of my credit utilization written for an article on my site. The point there was that zero card use actually dinged the score, but for you, going over the 20% level is the risk. It's not too large a hit, depending how high the utilization goes. I'd ... |
What one bit of financial advice do you wish you could've given yourself five years ago? | I was offered a student credit card and refused it. If I'd taken it and used it sparingly, paying off the balance on time in full every month, I'd have built up a better credit rating in the time period. |
I'm thinking of getting a new car … why shouldn't I LEASE one? | I agree with Speedbird389 - I leased an economy car 10 years ago, paid the residual at the end of the lease because I knew the car would last a long time, but that cost me $5000 more than if I had bought it in the first place... |
Online tutorials for calculating DCF (Discounted Cash Flow)? | what do you mean exactly? Do you have a future target price and projected future dividend payments and you want the present value (time discounted price) of those? Edit: The DCF formula is difficult to use for stocks because the future price is unknown. It is more applicable to fixed-income instruments like coupon bo... |
Why is property investment good if properties de-valuate over time? | It's all about the land value. The structure is only ever worth as much as it would cost to build a new one (minus demolition costs) |
Would it make sense to buy a rental property as an LLC and not in my own name? | IANAL, but if you're planning to sell shares in your LLC you may be disappointed in the protection granted. I looked into this corporate structure for the same purpose myself, and my attorney said something like, "If an owner of one of the shares of your company is driving to look at one of the properties, and gets int... |
Pros/Cons of Buying Discounted Company Stock | I see another way of looking at this that hasn't been addressed yet. By offering the discount, the company is attempting to change your behavior into doing something irrational, that benefits them at your expense. The company hopes for one (or more) of the following psychological effects to happen to you: The proper th... |
Will there always be somebody selling/buying in every stock? | If the stock has low liquidity, yes there could be times when there are no buyers or sellers at a specific price, so if you put a limit order to buy or sell at a price with no other corresponding sellers or buyers, then your order may take a while to get executed or it may not be executed at all. You can usually tell i... |
Explain: “3% annual cost of renting is less than the 9% annual cost of owning” | The 3% and 9% figures are based on the cost of borrowing money and all the other ownership costs associated with real estate. From the same article: http://patrick.net/housing/crash1.html Because it's usually still much cheaper to rent than to own the same size and quality house, in the same school district. In rich... |
Where can I find filings of HUD-1 statements? | Three companies may have copies of it: the bank, the Title Company (aka settlement company), and perhaps the real estate agent. The bank (assuming you had a mortgage) is usually the easiest one to contact, as you're probably still making payments to them. They may have sent you the form in a large packet when you sold ... |
IS it the wrong time to get into the equity market immediately after large gains? | If your gut told you to buy during the depths of '09, your gut might be well-calibrated. The problem is stock market declines during recessions are frequently not that large relative to the average long run return of 9%: A better strategy might be hold a percentage in equities based upon a probability distribution of ... |
Options vs Stocks which is more profitable | The first thing that I learned the hard way (by trying my hand at actual options trading) is that liquidity matters. So few people are interested in trading the same options that I am that it is easy to get stuck holding profitable contracts into expiration unless I offer to sell them for a lot less than they are worth... |
How to make use of EUR/USD fluctuations in my specific case? | This is called currency speculation, and it's one of the more risky forms of investing. Unless you have a crystal ball that tells you the Euro will move up (or down) relative to the Dollar, it's purely speculation, even if it seems like it's on an upswing. You have to remember that the people who are speculating (pro... |
Best way to start investing, for a young person just starting their career? | First, congratulations on even thinking about investing while you are still young! Before you start investing, I'd suggest you pay off your cc balance if you have any. The logic is simple: if you invest and make say 8% in the market but keep paying 14% on your cc balance, you aren't really saving. Have a good supply ... |
How can I determine how much my car insurance will cost me? | Accidents and tickets more than 3 years old generally won't affect you. I use an insurance broker who shops a bunch of different companies and buys me the best policy. (He gets a cut as a middle-man, but saves me more than going direct and gives great advice when I have a question.) Since you haven't been only your... |
Do I need to report to FInCEN if I had greater than $10,000 worth of bitcoin in a foreign bitcoin exchange? | Yes, I'd say you do. This is similar to reporting a brokerage account. Also, don't forget the requirements for form 8938. |
Deducting Hobby Expenses on my Federal Income Taxes? | Does your wife perform solo or in association with other actor/actresses and other volunteers? The latter arrangement sounds more like an unincorporated association or a partnership, which might be a bit freer to match the revenue and expenses. By grinding through the proper procedures, it might be possible to get off... |
Will the stock market continue to grow forever? | The stock market may not grow "forever". There will be growth in the stock market, though. The stock market is a positive-sum game, since it is driven in large part by the profits earned by the companies. This doesn't mean that any individual stock will go up forever, it doesn't mean that any given index will go up for... |
Is buying or selling goods for gold or silver considered taxable? | What you are doing is barter trade. Most countries [if not all] would tax this on assumed fair value. There are instances where countries may relax this norm in border areas for a small amount. Barter is not just for gold – one can virtually do this for any goods, i.e. sell garments in exchange for oil, sell electron... |
What assets would be valuable in a post-apocalyptic scenario? | Bullets, canned goods, and farm supplies that don't need gas (e.g. seed, feed, plows). |
how late can i put money into an IRA and still have it count for 2015? | The IRA contribution for the year are allowed until the tax day of that year. I.e.: you can contribute for 2015 until April 15th, 2016 (or whatever the first business day is after that, if the 15th is a holiday). You'll have to explicitly designate your contribution for 2015, since some of the IRA providers may automat... |
Are there any disadvantages to DHA Investment Properties? | Along with the above reasons, the fact that DHA are under investigation by the Federal Police, should be a red flag to any potential investor. The Federal Police aren't called in over parking fines. The rules that are in place for effective and appropriate management appear to have been compromised. I would like to se... |
Explain the details and benefits of rebalancing a retirement portfolio? | Rebalancing your portfolio doesn't have to include selling. You could simply adjust your buying to keep your portfolio in balance. If you portfolio has shifted from 50% stocks and 50% bonds to 75% stocks and 25% bonds, you can just only use new savings to buy bonds, until you are back at 50-50. Remember to take into ... |
What are the fundamental levels that makes a Stock Ideal? (either to sell or buy) | for buying: High PE, low debt, discount = win. a company with high debt (in relation to revenues and cash on hand) will have to pay interest and pay off the debt, stunting their growth. and just like a normal person, will barely be able to pay their bills and keep borrowing and might go bankrupt determining discount is... |
Is buying a home a good idea? | It certainly seems like you are focusing on the emotional factors. That's your blind spot, and it's the surest path to a situation where your husband gets to say "I told you so". I recommend you steer straight into that blind spot, and focus your studies on the business aspects of buying and owning homes. You shoul... |
Do I pay a zero % loan before another to clear both loans faster? | See many past answers: you will usually save the most money by paying off the highest-intetest-rate loan first. (Remember to allow for tax effects, if any, when comparing real interest rates.) Some folks are more motivated to simplify their finances than to save money; in that case you might pay off the smallest loan f... |
How to calculate PE ratios for indices such as DJIA? | You could look up the P/E of an equivalent ETF, or break the ETF into components and look those up. Each index has its own methodology, usually weighted by market cap. See here: http://www.amex.com/etf/prodInf/EtAllhold.jsp?Product_Symbol=DIA |
What is high trading volume in a stock indicative of? Is high liquidity a good thing or a bad thing? | Stocks with a low average daily trading volume ("thinly traded stocks") will also tend to have higher spreads. So you'll tend to pay more when you buy and get less when you sell. |
How to invest in gold at market value, i.e. without paying a markup? | This is an excellent question; kudos for asking it. How much a person pays over spot with gold can be negotiated in person at a coin shop or in an individual transaction, though many shops will refuse to negotiate. You have to be a clever and tough negotiator to make this work and you won't have any success online. Ho... |
1.4 million cash. What do I do? | I'm still recommending that you go to a professional. However, I'm going to talk about what you should probably expect the professional to be telling you. These are generalities. It sounds like you're going to keep working for a while. (If nothing else, it'll stave off boredom.) If that's the case, and you don't touch ... |
At what age should I start or stop saving money? | As all said, the age limitation thing is nothing, and saving money not necessarily means to live poor nor Skimpy, spend your needs and try to get what you need instead of what you want, the 24 years old is a good start for saving money, the whole life still in front of you Good luck! |
Should I file taxes or Incorperate a personal project? | There are two reasons for incorporating a business in Canada - limiting liability and providing some freedom in structuring your taxes. Since you are asking about taxes, I will restrict myself to that topic. First of all, remember that if you don't make much money, there isn't much tax to save by clever structuring of ... |
What will my taxes be as self employed? | Whether you're self-employed or not, knowing exactly how much tax you will pay is not always an easy task. Various actions you can take (e.g., charitable donations, IRA contributions, selling stocks) may increase or reduce your tax liability. One tool I've found useful for estimating federal taxes is the Excel 1040 sp... |
Is it smart to only invest in mid- and small-cap stock equity funds in my 401(k)? | Can you easily stomach the risk of higher volatility that could come with smaller stocks? How certain are you that the funds wouldn't have any asset bloat that could cause them to become large-cap funds for holding to their winners? If having your 401(k) balance get chopped in half over a year doesn't give you any paus... |
Help required on estimating SSA benefit amounts | There has been an abundance of articles in recent years which make it fairly clear that many participants in the Social Security system-- especially those who have started contributing recently, and going forward from that-- will experience negative rates of return. In other words, they will put in more than they will ... |
How to tell if you can trust a loan company? | Look for people who have done business with them. If you don't know anyone who has used their services, look for a company that at least has a brick and mortar branch in your area. Being able to deal with them face to face is a must. Have you checked with your local bank? |
If I sell a stock that I don't have, am I required to buy it before a certain amount of time? | I'm just began playing in the stock market. I assume you mean that you're not using real money, but rather you have an account with a stock simulator like the one Investopedia offers. I am hopeful that's the case due to the high level of risk involved in short selling like you're describing. Here is another post abou... |
What are the financial advantages of living in Switzerland? | As per Wikipedia of right now, here are unemployment figures for Switzerland and surrounding countries: Liechtenstein, unfortunately, does not have a large job market, given its total population of about 37,000 people. And note that the German figure of 4.5% is the lowest it has been for decades - I'd expect this numbe... |
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? | From accounting perspective, an unpaid bill for internet services, according to the Accruals Concept, is recorded as a liability under 'Current Liabilities' section of the Balance Sheet. Also as an expense on the Income Statement. So to answer your question it is both: a debt and an expense, however this is only the c... |
Applying student loan proceeds toward tuition? | Your university should have a finance department which can help with payments. Speak with them and tell them you have interest in paying for at least part of your next semester in cash. From here they should be able to tell you the best method for this, though most likely cash/check will suffice. If there is no finance... |
Why does ExxonMobil's balance sheet show more liabilities than assets? | Even assuming you were reading the balance sheet correctly it means nothing. What banks mostly care about is cash flow. Do they have enough extra money to make the payments on whatever they borrow? I have never had a credit card company ask me about assets--they don't care. They care about income with which to pay th... |
Why call option price increases with higher volatility | The mathematics make it easier to understand why this is the case. Using very bad shorthand, d1 and d2 are inputs into N(), and N() can be expressed as the probability of the expected value or the most probable value which in this case is the discounted expected stock price at expiration. d1 has two σs which is volatil... |
Is the stock market a zero-sum game? | No, the stock market and investing in general is not a zero sum game. Some types of trades are zero sum because of the nature of the trade. But someone isn't necessarily losing when you gain in the sale of a stock or other security. I'm not going to type out a technical thesis for your question. But the main failur... |
Why I cannot find a “Pure Cash” option in 401k investments? | This situation, wanting desperately to have access to an investment vehicle in a 401K, but it not being available reminds me of two suggestions some make regarding retirement investing: This allows you the maximum flexibility in your retirement investing. I have never, in almost 30 years of 401K investing, seen a pure... |
Why would a bank take a lower all cash offer versus a higher offer via conventional lending? | It's because financing can fall through, and then the time between offer and closing is wasted. Often buyers will include preapprovals and other evidence of financing eligibility with their offer for this reason. |
Should I use a credit repair agency? | Repairing your credit takes time. Companies that offer to do it for you (for money) generally succeed mostly at getting money from you. Nonprofit agencies will help you with advice and encouragement and will not want money from you. They may be able to help you apply for a consolidation loan, but to be honest that is ... |
My friend wants to put my name down for a house he's buying. What risks would I be taking? | You should only loan money to friends or relatives if you are fully accepting the possibility of never ever getting that money back. And in this situation it can happen that you will be forced to give him a very large loan if something bad ever happens to him. (Paying the monthly rates instead of him and expecting he ... |
Does it make any sense to directly contribute to reducing the US national debt? | The US national debt isn't the problem. If the Bush-era tax cuts had been allowed to expire then US debt would have been paid off reasonably quickly. The CBO’s “baseline” budget forecast, which assumes that the cuts do indeed expire as planned, sees the deficit falling from 9.1% of GDP in 2010 to 2.5% in 2014. ... |
Paying over the minimum mortgage payment | Let's look at some of your options: In a savings account, your $40,000 might be earning maybe 0.5%, if you are lucky. In a year, you'll have earned $200. On the plus side, you'll have your $40,000 easily accessible to you to pay for moving, closing costs on your new house, etc. If you apply it to your mortgage, you a... |
Is this reply promising a money order and cashier check a scam? | I was a involved in this same scam from my Craigslist item. The buyer texted me & said his assistant put the wrong check in my envelope & please let him know when I got it,cash the cashiers check, keep my part for money of my item & send him back the difference. Well, the check came to me for $1,350.00 for a $100 item... |
Paying Off Principal of Home vs. Investing In Mutual Fund | Excellent answers so far, so I will just add one additional consideration: liquidity. Money invested in a mutual fund (exclusive of retirement accounts with early withdrawal penalties) has a relatively high liquidity. Whereas excess equity in your home from paying down early has very low liquidity. To put it simply: If... |
What are support and resistance of a stock? | Support and resistance points indicate price levels where there have been a large amount of trading activity, usually from institutions, that tend to stabilize the price of a stock. Support is a temporary FLOOR, where people have been buying in large quantities. That means there's a good chance that the stock won't go ... |
What would I miss out on by self insuring my car? | As others have pointed out, it's all about a fixed, small cost versus the potential of a large cost. If you have insurance, you know you will pay a fixed amount per month. There is a 100% probability that you will have to pay this premium. If you don't have insurance, there is a large chance that you will have no cost ... |
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