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277

My super fund and I would say many other funds give you one free switch of strategies per year. Some suggest you should change from high growth option to a more balance option once you are say about 10 to 15 years from retirement, and then change to a more capital guaranteed option a few years from retirement. This is a more passive approach and has benefits as well as disadvantages. The benefit is that there is not much work involved, you just change your investment option based on your life stage, 2 to 3 times during your lifetime. This allows you to take more risk when you are young to aim for higher returns, take a balanced approach with moderate risk and returns during the middle part of your working life, and take less risk with lower returns (above inflation) during the latter part of your working life. A possible disadvantage of this strategy is you may be in the higher risk/ higher growth option during a market correction and then change to a more balanced option just when the market starts to pick up again. So your funds will be hit with large losses whilst the market is in retreat and just when things look to be getting better you change to a more balanced portfolio and miss out on the big gains. A second more active approach would be to track the market and change investment option as the market changes. One approach which shouldn't take much time is to track the index such as the ASX200 (if you investment option is mainly invested in the Australian stock market) with a 200 day Simple Moving Average (SMA). The concept is that if the index crosses above the 200 day SMA the market is bullish and if it crosses below it is bearish. See the chart below: This strategy will work well when the market is trending up or down but not very well when the market is going sideways, as you will be changing from aggressive to balanced and back too often. Possibly a more appropriate option would be a combination of the two. Use the first passive approach to change investment option from aggressive to balanced to capital guaranteed with your life stages, however use the second active approach to time the change. For example, if you were say in your late 40s now and were looking to change from aggressive to balanced in the near future, you could wait until the ASX200 crosses below the 200 day SMA before making the change. This way you could capture the majority of the uptrend (which could go on for years) before changing from the high growth/aggressive option to the balanced option. If you where after more control over your superannuation assets another option open to you is to start a SMSF, however I would recommend having at least $300K to $400K in assets before starting a SMSF, or else the annual costs would be too high as a percentage of your total super assets.

294

US government bonds are where money goes when the markets are turbulent and investors are fleeing from risk, and that applies even if the risk is a downgrade of the US credit rating, because there's simply nowhere else to put your money if you're in search of safety. Most AAA-rated governments have good credit ratings because they don't borrow much money (and most of them also have fairly small economies compared with the US), meaning that there's poor liquidity in their scarce bonds.

330

"As long as the losing business is not considered ""passive activity"" or ""hobby"", then yes. Passive Activity is an activity where you do not have to actively do anything to generate income. For example - royalties or rentals. Hobby is an activity that doesn't generate profit. Generally, if your business doesn't consistently generate profit (the IRS looks at 3 out of the last 5 years), it may be characterized as hobby. For hobby, loss deduction is limited by the hobby income and the 2% AGI threshold."

343

The only reason I can think of would be if you were convinced that you couldn't hold on to your money. Treasury Bonds are often viewed as very safe investments, and often used in some situations where cash isn't appropriate.. Also, they typically have a somewhat patriotic theme, helping your country to grow. In addition, many people don't really pay attention to the rate of the bonds, but are just investing in them. The more people investing in them, the lower the yields become. But the bottom line is, I would invest in a savings account any day over a negative interest rate... And it looks like I'm in good company as well, a quick study of reports seems to indicate that these are a very bad investment...

589

So does a post-dated check have any valid use in a business or personal transaction? Does it provide any financial or legal protections at all? Yes, most definitely. You're writing a future date on the check, not past, to ensure that the check will not be deposited before that day. Keep in mind that this may change from place to place, since not every country has the same rules. In the US, for example, such trick would not work since the check may be presented any time and is not a limited obligation. However, in some other countries banks will not pay a check presented before the date written on it. While in the US the date on the check is the date on which it was (supposedly) written and as such is meaningless for obligation purposes, in many other countries the date on the check is the date on which the payment to be made, thus constitutes the start of the commitment and payment will not be made before that date. For example, in Canada: If you write a post-dated cheque, under the clearing rules of the Canadian Payments Association (CPA), your cheque should not be cashed before the date that is written on it. If the post-dated cheque is cashed early, you can ask your financial institution to put the money back into your account up to the day before the cheque should have been cashed.

1001

"Not necessarily. The abbreviation ""ESOP"" is ambiguous. There are at least 8 variations I know of: You'll find references on Google to each of those, some more than others. For fun you can even substitute the word ""Executive"" for ""Employee"" and I'm sure you'll find more. Really. So you may be mistaken about the ""O"" referring to ""options"" and thereby implying it must be about options. Or, you may be right. If you participate in such a plan (or program) then check the documentation and then you'll know what it stands for, and how it works. That being said: companies can have either kind of incentive plan: one that issues stock, or one that issues options, with the intent to eventually issue stock in exchange for the option exercise price. When options are issued, they usually do have an expiration date by which you need to exercise if you want to buy the shares. There may be other conditions attached. For instance, whether the plan is about stocks or options, often there is a vesting schedule that determines when you become eligible to buy or exercise. When you buy the shares, they may be registered directly in your name (you might get a fancy certificate), or they may be deposited in an account in your name. If the company is small and private, the former may be the case, and if public, the latter may be the case. Details vary. Check the plan's documentation and/or with its administrators."

1011

"You will be filing the exact same form you've been filing until now (I hope...) which is called form 1040. Attached to it, you'll add a ""Schedule C"" form and ""Schedule SE"" form. Keep in mind the potential effect of the tax and totalization treaties the US has with the UK which may affect your filings. I suggest you talk to a licensed EA/CPA who works with expats in the UK and is familiar with all the issues. There are several prominent offices you can find by Googling."

1203

When you want to short a stock, you are trying to sell shares (that you are borrowing from your broker), therefore you need buyers for the shares you are selling. The ask prices represent people who are trying to sell shares, and the bid prices represent people who are trying to buy shares. Using your example, you could put in a limit order to short (sell) 1000 shares at $3.01, meaning that your order would become the ask price at $3.01. There is an ask price ahead of you for 500 shares at $3.00. So people would have to buy those 500 shares at $3.00 before anyone could buy your 1000 shares at $3.01. But it's possible that your order to sell 1000 shares at $3.01 never gets filled, if the buyers don't buy all the shares ahead of you. The price could drop to $1.00 without hitting $3.01 and you will have missed out on the trade. If you really wanted to short 1000 shares, you could use a market order. Let's say there's a bid for 750 shares at $2.50, and another bid for 250 shares at $2.49. If you entered a market order to sell 1000 shares, your order would get filled at the best bid prices, so first you would sell 750 shares at $2.50 and then you would sell 250 shares at $2.49. I was just using your example to explain things. In reality there won't be such a wide spread between the bid and ask prices. A stock might have a bid price of $10.50 and an ask price of $10.51, so there would only be a 1 cent difference between putting in a limit order to sell 1000 shares at $10.51 and just using a market order to sell 1000 shares and getting them filled at $10.50. Also, your example probably wouldn't work in real life, because brokers typically don't allow people to short stocks that are trading under $5 per share. As for your question about how often you are unable to make a short sale, it can sometimes happen with stocks that are heavily shorted and your broker may not be able to find any more shares to borrow. Also remember that you can only short stocks with a margin account, you cannot short stocks with a cash account.

1219

You can contribute to a Traditional IRA instead of a Roth. The main difference is a contribution to a Roth is made with after tax money but at retirement you can withdraw the money tax free. With a Traditional IRA your contribution is tax-deductible but at retirement the withdrawal is not tax free. This is why most people prefer a Roth if they can contribute. You can also contribute to your work's 401k plan assuming they have one. And you can always save for retirement in a regular account.

1699

"The TWRR calculation will work even with negative values: TWRR = (1 + 0.10) x (1 + (-0.191) ) x (1 + 0.29) ^ (1/3) = 1.047 which is a 4.7% return. Your second question concerns the -19% return calculated for the second quarter. You seem to think this return is ""way-off"". Not really. The TWRR calculates a return by accounting for cash that was added or deducted to/from the account. So if I started with $100,000, added $10,000 to the account, and ended up with $110,000, what should be the return on my investment? My answer would be 0% since the only reason my account balance went up was due to me adding cash to it. Therefore, if I started with $100,000, added $10,000 in cash to the account, and ended up with $100,000 in my account, then my return would be a negative value since I lost the $10,000 that I deposited in the account. In the second quarter you started with $15,000, deposited $4,000, and ended with $15,750. You essentially lost almost all of the $4,000 you deposited. That is a significant loss."

1982

Left out, of course, is the fact that this is Argentina's eighth default, because its policymakers are complete nincompoops, and the fact that, instead of not paying anybody by complying with the ruling, it could probably have struck a deal with NML to pay them the principal and interest (or a bit less, if they were decent negotiators) by waiting until December when a bond clause expires that states Argentina can't willingly pay less to some creditors than others. The blame isn't all Argentina's, but there's a reason why this sort of stuff doesn't happen in literally any other country in Latin America on such a regular basis.

2003

"While I haven't experienced being ""grad student poor"" myself (I went to grad school at night and worked full-time), I would shoot for 10-20% per month ($150-$300). This depends of course on how much you currently have in savings. If it isn't much, you might want to attempt a higher savings percentage (30-40%). If you can move to a less-expensive place, do that as soon as you can. It's your largest expense; any place you can spend less on than $900 creates instance savings without having to sacrifice what you categorize as living expenses."

2018

"As i see it, with a debit card, they are taken kinda out of the game. They are not lending money, it seems really bad for them. Not exactly. It is true that they're not lending money, but they charge a hefty commission from the retailers for each swipe which is pure profit with almost no risk. One of the proposals considered (or maybe approved already, don't know) in Congress is to cap that hefty commission, which will really make the debit cards merely a service for the checking account holder, rather than a profit maker for the bank. On the other hand, it's definitely good for individuals. I disagree with that. Debit cards are easier to use than checks, but they provide much less protection than credit cards. Here's what I had to say on this a while ago, and seems like the community agrees. But, why do we really need a credit history to buy some of the more expensive stuff Because the system is broken. It rewards people in debt by giving them more opportunities to get into even more debts, while people who owe nothing to noone cannot get a credit when they do need one. With the current system the potential creditor can only asses the risk of someone who has debt already, they have no way of assessing risks of someone with no debts. To me, all this credit card system seems like an awfully nice way to make loads of money, backed by governments as well. Well, credit cards have nothing to do with it. It's the credit scores system that is broken. If we replace the ""card"" with ""score"" in your question - then yes, you're thinking correctly. That of course is true for the US, in other countries I have no knowledge on how the creditors assess the risks."

2064

8 hard inquiries spread over two years is not a negative factor, with a score of 750. Real question #1: How much of your credit limits are you currently using? Less than 30% of your credit limits is good. Less than 15% is even better, 10% is great You don't need to wait X amount of days after applying for a mortgage or a card to increase your chances of getting approved for something else. You do need to be conscious of how many hard pulls you have done in a reporting period though, but again as I said, 8 spread over two years is not a whole lot. Real question #2: What negative things do you have in your credit history? Young age, income, delinquent payments, bankruptcies, low limits? Some of these negative factors are catch-22's (low limits, young age = low limits because of age and young credit history) but these contribute to how much institutions would be willing to lend you

2286

If your uncle is looking to maintain life insurance coverage for specific shorter period of time he may want to look into hybrid life insurance. If you buy a hybrid universal life policy, the premium and death benefit can be guaranteed to last until any age. Since, most permanent policies focus on cash value accumulation it is hard for most people to find cheap whole life or affordable universal life. Consumers only looking for a longer duration have a more flexible choice with a new hybrid product that combines elements of both term life coverage and universal life. Hybrid universal policies are much cheaper then other permanent coverage such as whole life coverage because they do not emphasize cash value accumulation. However, the premiums and death benefits can still be guaranteed to a specific age (i.e. 85, 90, 95, 100). So, premiums can be scaled to coordinate with your desired budget and the face amount required for your family. Typical universal life and whole life insurance contracts only allow for lifetime coverage. However, hybrid universal life offers a much smaller premium because the coverage can be dialed into a specific age. If the policyholder does live beyond the originally selected age, the death benefit will simply begin getting smaller, while the original premium will continue to remain the same.

2519

"The first thing I'd do is to find out your credit (FICO) score. If you have a good one, try to get another card with a lower rate. Then call up the lender, point to your good score, and your alternatives. If you have a bad score, do nothing. ""Let sleeping dogs lie."""

2528

This is essentially a reimbursement of your expense. Since you can deduct the expense, the fact that the reimbursement is taxable doesn't affect you much. You deduct your home office expenses on your annual tax return using form 8829. See the IRS site for more details. If you're asking about the UK tax, there may be some other considerations, but from the US tax perspective it is (nearly) a wash.

2633

"This is analyst speak for ""the stock isn't going anywhere anytime soon"". Remember these guys are offering advice to the entire universe in a few lines, so the advice gets fortune cookie-like. When I look at these things, I care more about when the analyst changes their opinion more than what the opinion is. If you really trust this person, you should listen to the earnings call for the stock (or read the transcript) and listen for the questions asked by the analyst. Usually you'll be able to understand why the analyst feels the way he does."

2653

I would not sell unless the stock is starting to fall in price. If you are a long term investor you can review the weekly chart on a weekly basis to determine if the stock is still up-trending. Regarding HD below is a weekly chart for the last 4 years: Basically if the price is making Higher Highs (HH) and Higher Lows (HL) it is up-trending. If it starts to make Lower Lows (LL) followed by Lower Highs (LH) then the uptrend is over and the stock could be entering a downtrend. With HD, the price has been up-trending but seems to now be hitting some headwinds. It has been making some HHs followed by some HLs throughout the last 2 years. It did make a LL in late August 2015 but then recovered nicely to make a new HH, so the uptrend was not broken. In early November 2016 it made another LL but this time it seems to be followed by a LH in mid-December 2016. This could be clear evidence that the uptrend may be ending. The final confirmation would be if the price drops below the early November low of $119.20 (the orange line). If price drops below this price it would be confirmation that the uptrend is over and this should be the point at which you should sell your HD shares. You could place an automatic stop loss order just below $119.20 so that you don't even need to monitor the stock frequently. Another indication that the uptrend may be in trouble is the divergence between the HHs of the price and the peaks of a momentum indicator (in this case the MACD). The two sloping red lines show that the price made HHs in April and August 2016 whilst the momentum indicator made LHs at these peaks in the price. As the lines are sloping in different directions it is demonstrating negative divergence, which means that the momentum of the uptrend is slowing down and can act as an early warning system to be more cautious in the near future. So the question you could be asking is when is a good time to sell out of HD (or at least some of your HD to rebalance)? Why sell something that is still increasing in price? Only sell if you can determine that the price will not be increasing anymore in the near to medium term.

2718

The Canada Revenue Agency does indeed put out just the guide you want. It's at http://www.cra-arc.gc.ca/E/pub/tg/rc4070/rc4070-e.html - you should always take a good look at URLs to make sure they're really from the government and not from some for-profit firm that will charge you to fill out forms for free services. It covers ways to structure your business (probably a sole proprietor in your case), collecting and submitting GST or HST, sending in payroll remittances (if you pay yourself a T4 salary), and income tax including what you can deduct. It's a great place to start and you can use it as a source of keywords if you want to search for more details.

2830

If you are tired of acting as the bank after selling your Real Estate and owner-financing the loan with a promissory note, we can offer a sound and painless exit strategy today. We can fund the purchase in as little as 15 business days. We at Cash Note USA buy Real Estate Promissory Notes Nationwide. We Purchase Owner Financed Mortgage, Land Contract, Contract For Deed, Deed Of Trust, Private Mortgages, Secured Notes, Business Notes, Commercial Notes and Partial Notes and many kinds of seller carry back mortgage notes. Convert Real Estate Note To Cash Now.Sell Your Mortgage Note Fast & get More Cash For Your Note. You will get a Fair Offer Within 24 Hours.Get your Note cashed today! Cash Note USA is a note buyer all over the nation. Convert your mortgage payments into cash. Simple closing process. We buy Promissory Notes, Real Estate Trust Deeds, Seller Carry Back Notes, Land Contract, Contract for Deed, Privately Help Notes, Commercial Mortgage Notes & Business Promissory Notes. Contact Us: Cash Note USA 1307 W.6th St.Suite 219N, Corona, CA 92882 888-297-4099 cashnoteusa@gmail.com http://cashnoteusa.com/

2860

"I'm not aware that any US bank has any way to access your credit rating in France (especially as you basically don't have one!). In the US, banks are not the only way to get finance for a home. In many regions, there are plenty of ""owner financed"" or ""Owner will carry"" homes. For these, the previous owner will provide a private mortgage for the balance if you have a large (25%+) downpayment. No strict lending rules, no fancy credit scoring systems, just a large enough downpayment so they know they'll get their money back if they have to foreclose. For the seller, it's a way to shift a house that is hard to sell plus get a regular income. Often this mortgage is for only 3-10 years, but that gives you the time to establish more credit and then refinance. Maybe the interest rate is a little higher also, but again it's just until you can refinance to something better (or sell other assets then pay the loan off quick). For new homes, the builders/developers may offer similar finance. For both owner-will-carry and developer finance, a large deposit will trump any credit rating concerns. There is usually a simplified foreclosure process, so they're not really taking much of a risk, so can afford to be flexible. Make sure the owner mortgage is via a title company, trust company, or escrow company, so that there's a third party involved to ensure each party lives up to their obligations."

2890

"MBS is a fairly general term ""Mortgage Backed Securities"" which simply means that the bond is collateralized with mortgages. Pass throughs are a type of MBS that is untranched: all bond holders of the deal are receiving the same interest and principal payments, there is no senior or subordinate class of bonds. Agency passthroughs bond holders receive any principal and interest payments paid by the loans in the pool, minus a slice of the interest payment that pays billing and insurance fees (servicing and guarantee fees, usually a .5% slice of the mortgage interest rate). On agency product (including Ginnies), if a loan defaults it will be bought out of the pool, with the bondholder receiving all of the expected principal and any interest due on the loan. Agency deals with different classes of bonds are usually called REMICs. Passthrough may also be split into principal-only (PO) and interest-only (IO) pieces. There is also a huge forward market in soon-to-be-issued passthroughs called the TBA market. Ginnie Mae has two slightly different programs referred to as Ginnie I and Ginnie II. Ginnie also has commercial and construction loan financial products. Freddie and Fannie have the same type of financial products as Ginnie, but there are differences in the sort of loans that Ginnie has vs the other agencies, as well as subtle minor differences between the contract terms of the securities. Ginnie is also more explicitly guaranteed by the federal government. You may want to look at: http://www.ginniemae.gov/index.asp (especially the ""For Investors"" and ""For Issuers"" sections.) Wikipedia's MBS may be more clear than my description: http://en.wikipedia.org/wiki/Mortgage-backed_security#Types"

2996

Yes, the borrower is responsible for paying back the full amount of the loan. Foreclosure gives the bank possession of the property, which they can (and do) sell. Any shortfall is still the borrower's responsibility. But, no, the bank can't sell the property for a dollar; they have to make a reasonable effort. Usually the sale is done through a sheriff's sale, that is, a more or less carefully supervised auction. Bankruptcy will wipe out the shortfall, and most other debts, but the downside is that most of the rest of your assets will also be sold to help pay off what you owe. Details of what you can keep vary from state to state. If you want to go this route, hire a lawyer.

3040

It is basically the same situation what US was when the crash happened. People took on debt without the means to pay, even with awful credit records. But the problem isn't the debt people take on themselves, but with the limited disposable income they have how efficiently can their debts be serviced. And how do banks who lend out money can recover their money. When banks lend money to all and sundry, they have to take care of defaults and that is when financial wizardry comes into play. In US people have the option to default on their debt and refinance it, so banks assumed default and tried to hedge their risks. If this is an option in Australia, be ready for a crash else not to worry about much. If banks continue lending expect higher inflation rates, higher interest rates and maybe a downgrade of bonds issued by the Australian government. Higher import costs and a boom in exports because of devalued Australian dollar.

3095

What is essential is that company you are selling is transparent enough. Because it will provide additional liquidity to market. When I decide to sell, I drop all volume once at a time. Liquidation price will be somewhat worse then usual. But being out of position will save you nerves for future thinking where to step in again. Cold head is best you can afford in such scenario. In very large crashes, there could be large liquidity holes. But if you are on upper side of sigmoid, you will be profiting from selling before that holes appear. Problem is, nobody could predict if market is on upper-fall, mid-fall or down-fall at any time.

3173

No. An employer is legally obliged to deduct taxes from your pay cheque and send them to the IRS. The only way round that is to either provide evidence of deductions that would reduce your tax bill to nothing, or to become self-employed.

3279

Most mutual funds underperform the stock market. Of those that over-perform, much of the performance can be attributed to dumb luck. Most mutual funds exist to generate fees from you, rather than make you wealthy. In my opinion, if you want to invest in one, choose a no-load index fund, and you will outperform most other funds. Better still get some good financial education and learn to manage your funds/investments yourself.

3315

I'll have to think it through, but at the very least unless your debt is a pure discount instrument and you are using cash flows, some if that money IS getting paid during those 5 years. As in if you are using earnings, they pay p&i. Or if earnings and pure discount instruments, then amortized interest (I think, been a while). You see the actual numbers and know what you are trying to do, but I'm a little lost. Are you building a discount model with a multiple terminal and using ev as the multiple? Are you using free cash flow to firm for the discounting? I'm guessing that's the case.

3763

Thanks to the online world, check ordering is much easier and less expensive.On our CheckOrdering.net website, we will show you the most effective way to check ordering. You’ll be able to order checks for personal or business use. you will not need to concern yourself with having someone else do this once arduous task.

3789

Based on the definitions I found on Investopedia, it depends on whether or not it is going against an asset or a liability. I am not sure what type of accounting you are performing, but I know in my personal day-to-day dealings credits are money coming into my account and debits are money going out of my account. Definition: Credit, Definition: Debit

4044

Just to offer another alternative, consider Certificates of Deposit (CDs) at an FDIC insured bank or credit union for small or short-term investments. If you don't need access to the money, as stated, and are not willing to take much risk, you could put money into a number of CDs instead of investing it in stocks, or just letting it sit in a regular savings/checking account. You are essentially lending money to the bank for a guaranteed length of time (anywhere from 3 to 60 months), and therefore they can give you a better rate of return than a savings account (which is basically lending it to them with the condition that you could ask for it all back at any time). Your rate of return in CDs is lower a typical stock investment, but carries no risk at all. CD rates typically increase with the length of the CD. For example, my credit union currently offers a 2.3% APY on a 5-year CD, but only 0.75% for 12 month CDs, and a mere 0.1% APY on regular savings/checking accounts. Putting your full $10K deposit into one or more CDs would yield $230 a year instead of a mere $10 in their savings account. If you go this route with some or all of your principal, note that withdrawing the money from a CD before the end of the deposit term will mean forfeiting the interest earned. Some banks may let you withdraw just a portion of a CD, but typically not. Work around this by splitting your funds into multiple CDs, and possibly different term lengths as well, to give you more flexibility in accessing the funds. Personally, I have a rolling emergency fund (~6 months living expenses, separate from all investments and day-to-day income/expenses) split evenly among 5 CDs, each with a 5-year deposit term (for the highest rate) with evenly staggered maturity dates. In any given year, I could close one of these CDs to cover an emergency and lose only a few months of interest on just 20% of my emergency fund, instead of several years interest on all of it. If I needed more funds, I could withdraw more of the CDs as needed, in order of youngest deposit age to minimize the interest loss - although that loss would probably be the least of my worries by then, if I'm dipping deeply into these funds I'll be needing them pretty badly. Initially I created the CDs with a very small amount and differing term lengths (1 year increments from 1-5 years) and then as each matured, I rolled it back into a 5 year CD. Now every year when one matures, I add a little more principal (to account for increased living expenses), and roll everything back in for another 5 years. Minimal thought and effort, no risk, much higher return than savings, fairly liquid (accessible) in an emergency, and great peace of mind. Plus it ensures I don't blow the money on something else, and that I have something to fall back on if all my other investments completely tanked, or I had massive medical bills, or lost my job, etc.

4153

Congratulations on being in such good financial state. You have a few investment choices. If you want very low risk, you are talking bonds or CDs. With the prime rate so low, nobody is paying anything useful for very low risk investments. However, my opinion is that given your finances, you should consider taking on a little more risk. A good step is a index fund, which is designed to mirror the performance of a stock index such as the S&P 500. That may be volatile in the short-term, but is likely to be a good investment in the longer term. I am not a fan of non-index mutual funds; in general the management charge makes them a less attractive investment. The next step up is investing in individual stocks, which can provide very big gains or very big losses. The Motley fool site (www.fool.com) has a lot of information about investing overall.

4444

"I'd answer it this way: What do you want to do? I'd say any amount is acceptable from as low as $100. When you look at the specific ""tree"" of investing paying $5 for a $100 seems unacceptable. However when observing the ""forest"" what does it matter if you ""waste"" $5 on a commission? Your friends (and maybe you) probably waste more than $5 multiple times per day. For them buying a latte might empower them, if buying another share of HD, for a similar cost, empowers you than do it. In the end who will be better off? Studies show that the more important part of building a significant investment portfolio is actually doing it. Rate of return and the cost of investing pales in comparison to actually doing it. How many of your peers are doing similar things? You are probably in very rare company. If it makes you happy, it is a wonderful way to spend your money."

4845

This is a Short Diagonal Calender Put Spread Generally, you're writing that long dated one at the money, and buying the short dated one out of the money. The maximum amount that can be made is if the stock breaks out strongly to the upside, and you keep the upfront credit minus whatever small amount it took to buy the April puts back. You can also make money if it breaks strongly to the downside, but only if the credit when you opened your positions was more than $10. Example: Now say the stock falls to $500 by the time of that march expiration. You'd make $90/share on the march put, and lose $100/share on the April put (or a little more; but that deep in the money, there won't be much premium on it). That's a loss of $10/share, or -$1000. So: I make a point of pointing this out because in that article I linked to the fact that your upfront credit needs to be greater than the strike spread in order to profit to the downside is not clearly mentioned.

4854

Nominal. What you say is true, but I'm guessing it would be too complicated to modelate. Plus, a shareholder of a very large company would not necessarily experience said loss if he/she sells the stock in small chunks at a time.

4976

Companies are required BY THE IRS to try to get everybody to contribute minimal amounts to the 401K's. In the past, there were abuses and only the execs could contribute and the low paid workers were starving while the execs contributed huge amounts. On a year-by-year basis, if the low-paid employees don't contribute, the IRS punishes the high paid employees. Therefore, most employers provide a matching program to incentivize low-paid employees to contribute. This 9% limitation could happen in any year and it could have happened even before you got your pay raise, what matters is what the low-paid employees were doing at your company LAST YEAR.

5188

Basically you have 4 options: Use your cash to pay off the student loans. Put your cash in an interest-bearing savings account. Invest your cash, for example in the stock market. Spend your cash on fun stuff you want right now. The more you can avoid #4 the better it will be for you in the long term. But you're apparently wise enough that that wasn't included as an option in your question. To decide between 1, 2, and 3, the key questions are: What interest are you paying on the loan versus what return could you get on savings or investment? How much risk are you willing to take? How much cash do you need to keep on hand for unexpected expenses? What are the tax implications? Basically, if you are paying 2% interest on a loan, and you can get 3% interest on a savings account, then it makes sense to put the cash in a savings account rather than pay off the loan. You'll make more on the interest from the savings account than you'll pay on interest on the loan. If the best return you can get on a savings account is less than 2%, then you are better off to pay off the loan. However, you probably want to keep some cash reserve in case your car breaks down or you have a sudden large medical bill, etc. How much cash you keep depends on your lifestyle and how much risk you are comfortable with. I don't know what country you live in. At least here in the U.S., a savings account is extremely safe: even the bank goes bankrupt your money should be insured. You can probably get a much better return on your money by investing in the stock market, but then your returns are not guaranteed. You may even lose money. Personally I don't have a savings account. I put all my savings into fairly safe stocks, because savings accounts around here tend to pay about 1%, which is hardly worth even bothering. You also should consider tax implications. If you're a new grad maybe your income is low enough that your tax rates are low and this is a minor factor. But if you are in, say, a 25% marginal tax bracket, then the effective interest rate on the student loan would be more like 1.5%. That is, if you pay $20 in interest, the government will then take 25% of that off your taxes, so it's the equivalent of paying $15 in interest. Similarly a place to put your money that gives non-taxable interest -- like municipal bonds -- gives a better real rate of return than something with the same nominal rate but where the interest is taxable.

5219

Most US banks don't allow you the ability to draft a foreign currency check from USD. Though, I know Canadian banks are more workable. For instance, TD allows you to do this from CAD to many other currencies for a small fee. I believe even as a US Citizen you can quite easily open a TD Trust account and you'd be good to go. Also, at one time Zions bank was one of the few which lets US customers do this add-hoc. And there is a fee associated. Even as a business, you can't usually do this without jumping thru hoops and proving your business dealings in foreign countries. Most businesses who do this often will opt to using a payment processor service from a 3rd party which cuts checks in foreign currencies at a monthly and per check base. Your other option, which may be more feasible if you're planning on doing this often, would be to open a British bank account. But this can be difficult if not impossible due to the strict money laundering anti-fraud regulations. Many banks simply won't do it. But, you might try a few of the newer British banks like Tesco, Virgin and Metro.

5257

The different levels are somewhat related to levels of risk. Writing a covered call is pretty low risk, in the sense that if I buy the stock but sell a call, I now have a lower cost for the stock, and however low the stock drops, I'm still slightly better off than the regular stock buyer. Covered call writing is often used to generate premium income from a stock portfolio, and less as a tool for speculation. Buying a call or put is simpler in execution, but the risk of losing the entire amount spent (I actually avoid the word invested here) due to leverage involved isn't just a possibility — it can be pretty likely depending on the strike price. Put writing and uncovered (naked) call writing can entail even higher risk relative to the premium received — consider extreme moves in the underlying to understand the potential losses involved. The more sophisticated trades are presumed to take a bit more experience and tolerance for risk and each broker has its own set of criteria to allow the client to trade at each level.

5323

Since returning of capital is the most important, I would go to bankrate.com and find either an online bank savings account or MMA account. By going to bankrate.com, you can find higher rates. Sometimes you can find rates that are higher than a CD and are still FDIC insured. I've found ally bank's raise your rate 2 year CD to always have the best rate. In addition, if rates go up, you are able to raise the rate to the current rate.

5550

$300k gross is lunch money, even for many small brick and mortar businesses. Add in taxes (federal, state, county, city, sales tax, property tax, parking, licenses/ permits), rent, cost of goods, hired labor and that $300k turns into $0, if you're lucky.

5591

"i deleted my comment that this was a reply to so I'll repost it. It was: >I don't know the answer, but I'm pretty sure this is incorrect. You have to take into account the correlations of the securities across the three different markets. It's definitely not as simple as dividing by three. The reason why I don't think this is correct is because you can imagine an exchange in which there is only one other security, and the asset in question is perfectly correlated and therefore has a beta of 1. You could then have a different exchange with thousands of securities where the asset has a beta of 0.3. The simple average method would produce a beta of .65, when it's probably true that the correct answer is closer to 0.3. The solution is not generalizable so I don't think it can be right. It neglects the relative sizes of the exchanges and the correlation of the underlying assets with each other. Which leads me to consider, perhaps the right thing to do is to calculate the returns across all three exchanges and the returns of the asset on all three exchanges, do a weighted average and use that variance/covariance to calculate the beta across all three exchanges. I'm not sure what purpose, practically, such a beta would serve. I think the correct answer is to take the beta of the asset with respect to the largest (most diversified) exchange. Ultimately, using a basket of securities like the S&P 500 is just a proxy for ""the market"", whatever that means. It doesn't truly represent the realm of possibilities for the diversified investor, but it's close enough tl,dr: I say pick one exchange and go with it"

6047

We have a lot of debt - at this point I don't even know how much This is your problem. Find out, and while you're at it find out how much income you have and also what your total expenditures are. You seem to be facing up to the problem, but not looking it in the eyes. You just need to take some time, and a little bravery, to get all your financial documentation together and lay it all out so you know what your situation actually is. Its not hard to do this, get a box and put all (old) bills and statements in that you can find, and at the end of a month, pick them out and write down the totals. Then work out your income and all that you've spent that month. This is known as a Statement of Affairs and there are calculators to help you. Then you can work out how much you need to pay off, and how much spare money you have to do this with. You can also start to cut down on all the really unnecessary stuff to increase your spare money that you can use to pay off the debts. Hopefully this won't take too long, and you can easily (if boringly) work the debt off over time. If it really is unsurmountable there are things you can do to help - firstly contacting your creditors and seeing what they can do to either part write off the debt, or freeze it as you pay it off (most creditors understand that if you're desperate enough to talk to them (!) then they may not see any of their debt back and are at least willing to help you pay them back). Generally though, it sounds like you are not in a total mess as you can pay it off. There are people in far worse states than you! But you really do need to be fully aware of your financial situation. Sit down and 'count your money' one lazy Sunday. There are links to help. Try the Motley Fool's guide, and its dealing with debt forum, both of which are very practical (if UK based, the Fool has a US site too, see for yourself if there's the same stuff on it, but this kind of thing tends to be fundamental to people of all nations).

6068

The buyer can get another cosigner or you can sell the car to pay off the loan. These are your only options if financing cannot be obtained independently.

6349

There is no universal answer here; it depends on how much risk each person is taking, how you want to define the value of the business now and in the future, how much each person's contribution is essential to creating and sustaining the business, how hard it would be to get those resources elsewhere and what they would cost... What is fair is whatever you folks agree is fair. Just make sure to get it nailed down in writing and signed by all the parties, so you don't risk someone changing their minds later.

6503

WE're talking about companies. Cooperate companies. What cooperate company is issuing bounced or fake checks to their employees that can also issue debit cards as payments? None. You're trying to split hairs between personal cashed checks and pay roll checks. They aren't the same at all. Payroll checks don't require a 3 day waiting period before the balance is moved to your account, personal checks that don't have a history of bouncing do.

6595

A 401k is pretty good, but it's not magic. Personally, I'd consider a 30k salary with a 401k and a 2k employer match less valuable than a 36k salary, let alone a 48k salary. If worried about retirement savings simply set up that IRA and put in the full 5.5k allowance.

6666

People have asked a lot of good questions about your broader situation, tolerance for risk, etc, but I'm going to say the one-size-fits-most answer is: split some of your monthly savings (half?) into the VEU Vanguard FTSE All-World ex-US ETF and some into VTI Vanguard Total Stock Market ETF. This can be as automatic and hassle-free as the money market deposit and gives a possibility of getting a better return, with low costs and low avoidable risk.

6701

Don't know the name but it means you're long with conviction :P Unlimited gains, maximum loss of 95$ + (8-6) = 97$. Basically You are long @ 107 - -2 from 105 to 95. You would have to be ULTRA bullish to initiate this strategy.

6703

What source said the Fed considers them retired? And you know $2 trillion of that is mortgage backed securities. No one seems to have told the homeowners their mortgages are forgiven as I haven't seen the block parties for that.

6881

While others have made a good case for how you may want to save and spend I just want to take a moment to comment on Acorn and Robinhood. Having never used either of them, I would stick to the seasoned professionals for my long term investment relationship. I'm sure they have the right licensing and proper SIPC coverage etc, but I wouldn't, personally, trust my money to an entity that's almost entirely funded by venture capital. I would stick to a company that exists and is profitable on it's own. All of the major brokerage houses (Vanguard, Schwab, ETrade, Scottrade, etc) in the US give account holders access to a list of ETFs and Mutual Funds with zero load on deposits, no or low minimum account balances, no or low investment minimums, and no commissions. With access to these no cost options, I wouldn't waste time with an entity that exists because of it's investor fund raising abilities.

6936

"Hah! Edit: to elaborate, markets are closed. Unless your firm made a bunch of moves before EOD Friday, there's very little they can do to avoid the bloodshed (if there is any after the vote on Sunday) come Monday morning. Not to mention most 401k funds have contractual limits placed on them in terms of how much they can do in terms of buy/sell actions in a given window of time - usually that's a good protection, however in ""outlier"" occurrences it's a really, really bad thing. Now, if you're in it for the long haul (in your 20s-early 30s) it's no big deal (yes, you'd be better off in a panic if you divested, but short-term drops are somewhat built into the long-term model). If you're about to retire I'd be really, really nervous."

6990

You should check out existing resources like Investopedia for definitions, and ask questions if there is something you do not understand, instead of asking folks to spit out definitions. A good book for you to read might be Wall Street Words

7243

Normally interest only mortgages are taken incase one planning to sell off the property after a few years and purchase of the property is for investment. In such a case instead of burdening oneself with a huge EMI, one opts for an interest only mortgage, and towards the end of the term, sell off the house at profit and repay back the entire principal. I am not to sure if interest only mortgages are encouraged for properties you plan to live in. Although I do not know about the ING scheme, normally there is no prepayment option on interest only mortgages, its Bank way of earning a fixed income for the contracted period and thats the reason why the interest rates are lower than a regular mortgage. If you do the math, you may be paying more in total interest than on a regular mortgage.

7311

Which way would save the most money? Paying of the car today would save the most money. Would you borrow money at 20% to put it in a savings account? That's effectively what she is doing by not paying off the car. If it were me, I would pay off the car today, and add the car payment to my savings account each month. If the car payment is $400, that's $1,500 a month that can be saved, and the $12k will be back in 8 months. That said - remember that this is your GIRLFRIEND, not a spouse. You are not in control (or responsible for) her finances. I would not tell her that she SHOULD do this - only explain it to her in different ways, and offer advice as to what YOU would do. Look together at how much has been paid in principal and interest so far, how much she's paying in interest each month now, and how much she'll pay for the car over the life of the loan. (I would also encourage her not to buy cars with a 72-month loan, which I'm guessing is how she got here). In the end, though, it's her decision.

7391

Well, if you only own the option, you are only limited to loosing the premium. With futures, at least with the brokers I talked to, most of the time you need to sign a margin contract just to trade futures. I don't want to go into debt, and I don't think I would do too well to be fairly honest. I am a college student, and want to limit my risk, and so just trading the option would help me get access to the commodity markets without having to get margin like many brokers want me to do. I am not trying to do any hedging or anything (which I am aware you can do). All I want to do is do an inflation trade, and I believe commodities are the best way. To me honest, if I had my way I would just buy and hold, and that is the strategy I want to emulate closest, even though I know I can't hold it forever. Basically, I want to avoid debt, but still trade commodities.

7423

"If you sell an asset for more than you paid for it, the excess amount realized is called a capital gain and is generally considered a form of income for tax purposes. Generally, one pays income tax on realized capital gains, unless the sale is exempt—such as the sale of one's principal residence. Capital gains tax can also be avoided or deferred by holding assets in a tax-advantaged investment account like a TFSA or RRSP. When taxable, the effective income tax rate on capital gains income is half the normal rate due to the capital gains inclusion rate. Capital gains income is generally not considered to be employment, ""earned"", or ""working"" income. However, individuals who, say, trade stocks frequently and earn a substantial portion of their income that way may have their gains considered employment income and subject to regular income tax instead of the better rate. I suggest you contact Service Canada and ask them about the impact of a one-time sale of personal property that would result in a realized capital gain. While you would owe income tax on the capital gain, it might not have any impact on your disability benefits, because it would not be earned or employment income. You should also check with your private insurer; they may also consider the sale a capital gain and not employment income, however, only they would be able to tell you for sure whether it would have any possible effect on your benefits."

7540

Easier to copy paste than type this out. Credit: www.financeformulas.net Note that the present value would be the initial loan amount, which is likely the sale price you noted minus a down payment. The loan payment formula is used to calculate the payments on a loan. The formula used to calculate loan payments is exactly the same as the formula used to calculate payments on an ordinary annuity. A loan, by definition, is an annuity, in that it consists of a series of future periodic payments. The PV, or present value, portion of the loan payment formula uses the original loan amount. The original loan amount is essentially the present value of the future payments on the loan, much like the present value of an annuity. It is important to keep the rate per period and number of periods consistent with one another in the formula. If the loan payments are made monthly, then the rate per period needs to be adjusted to the monthly rate and the number of periods would be the number of months on the loan. If payments are quarterly, the terms of the loan payment formula would be adjusted accordingly. I like to let loan calculators do the heavy lifting for me. This particular calculator lets you choose a weekly pay back scheme. http://www.calculator.net/loan-calculator.html

7625

For now, park it in a mix of cash and short term bond funds like the Vanguard Short Term Investment Grade fund. The short term fund will help with the inflation issue. Make sure the cash positions are FDIC insured. Then either educate yourself about investing or start interviewing potential advisors. Look for referrals, and stay away from people peddling annuities or people who will not fully disclose how they get paid. Your goal should be to have a long-term plan within 6-12 months.

7748

"For your first question, the general guidelines I've seen recommended are as follows: As to your second question, portfolio management is something you should familiarize yourself with. If you trust it to other people, don't be surprised when they make ""mistakes"". Remember, they get paid regardless of whether you make money. Consider how much any degree of risk will affect you. When starting out, your contributions make up most of the growth of your accounts; now is the time when you can most afford to take higher risk for higher payouts (still limiting your risk as much as possible, of course). A 10% loss on a portfolio of $50k can be replaced with a good year's contributions. Once your portfolio has grown to a much larger sum, it will be time to dial back the risk and focus on preserving your capital. When choosing investments, always treat your porfolio as a whole - including non-retirement assets (other investment accounts, savings, even your house). Don't put too many eggs from every account into the same basket, or you'll find that 30% of your porfolio is a single investment. Also consider that some investments have different tax consequences, and you can leverage the properties of each account to offset that."

7814

"If you are a ""small"" investor (namely, not an accredited investor), then the transaction costs (commissions) for purchasing the stocks while attempting to duplicate DJIA will defeat any benefit. My personal preference is to purchase mutual funds rather than ETFs."

7915

7951

~~Most checks don't.~~ Edit: I've definitely seen checks cashed way beyond 90-120 days. I don't have extensive knowledge of the rules though. Regardless, it's not like Floyd magically loses is pay if he doesn't cash the check in time.

7969

If you don't want to pay much attention to your investments, target date funds -- assuming you find one (like Vanguard's) with no management fees beyond those acquired from the underlying funds -- are usually a great choice: when the target date is far off, they invest almost entirely (usually 90% or so) in (mutual funds that in turn consist of many) stocks, with the remainder in bonds; as the date gets closer, the mix is automatically shifted to more bonds and less stocks (i.e. less risk, but less potential return too).

8003

Knowing the log return is useful - the log return can help you to work out the annual return over the period it was estimated - and this should be comparable between stocks. One should just be careful with the calculation so that allowance for dividends is made sensibly.

8060

Sounds about right. From [Give Well](http://www.givewell.org/how-we-work/our-criteria/cost-effectiveness): > As of November 2016, the median estimate of our top charities' cost-effectiveness ranged from ~$900 to ~$7,000 per equivalent life saved (a metric we use to compare interventions with different outcomes, such as income improvements and averting a death) .

8063

Not sure if your question is on topic, but the investment is only $9 because that is maximum amount of money the merchant ever needed to start up the business. He put in $9, started turning a profit, and never looked back.

8126

Navy Federal Credit Union recently added this feature. It is free for members making a deposit to their personal checking account, though you have to be a member for at least 90 days to be eligible. I have an all-in-one printer with flatbed scanner and availed myself of the service a couple of days ago. There wasn't any additional software involved as everything was done through the web browser, as shown the scan deposit demo. The only problem I had was figuring out how to align the check for it to be scanned completely (had to place the check in the middle of the scanner, aligned lengthwise; that was more of a hassle to figure out that one would suppose). That was it. I immediately received an e-mail confirmation that my deposit had been approved and processed. While Navy Federal's scan deposit FAQ is specific to them, of course, it is pretty comprehensive and gives one an idea of the general restrictions applied to the service.

8135

The charts suggest otherwise. Although most of the large gains were wiped out in 2008 and 2011, that doesn't include the substantial dividends you are likely to get with financials. They still returned a positive percentage and some outperformed benchmark indices over time. But hey, don't let your bias get in the way.

8177

There are several ways that the issuers profit from CFDs. If the broker has trades on both sides (buy and sell) they can net the volumes off against each other and profit off the spread whilst using the posted margins to cover p&l from both sides. Because settlement for most securities is not on the same day that the order is placed they can also buy the security with no intention of taking delivery and simply sell it off at the end of day to pass delivery on to someone else. Here again they profit from the spread and that their volumes give them really low commissions so their costs are much lower than the value of the spread. If they have to do this rather than netting the position out the spreads will be wider. Sometimes that may be forced to buy the security outright but that is rare and the spreads will be even wider so that they can make a decent profit.

8200

Capital is an Asset. Decreasing value of capital is the decreasing value of an asset. When you buy the forex asset * DR Forex Asset * CR Cash When you sell * DR Cash * CR Forex Asset The difference is now accounted for Here is how: Gains (and losses) are modifications to your financial position (Balance sheet). At the end of the period you take your financial performance (Profit and Loss) and put it into your balance sheet under equity. Meaning that afterwards your balance sheet is better or worse off (Because you made more money = more cash or lost it, whatever). You are wanting to make an income account to reflect the forex revaluation so at the end of the period it is reflected in profit then pushed into your balance sheet. Capital gains directly affect your balance sheet because they increase/decrease your cash and your asset in the journal entry itself (When you buy and sell it). If making money this way is actually how you make you make an income it is possible to make an account for it. If you do this you periodically revalue the asset and write off the changes to the revaluation account. You would do something like *DR Asset *CR Forex Revaluation account; depending on the method you take. Businesses mostly do this because if the capital gains are their line of business they will be taxed on it like it is income. For simplicity just account for it when you buy and sell the assets (Because you as an individual will only recognise a profit/loss when you enter and exit). Its easier to think about income and expenses are extensions of equity. Income increases your equity, expenses decrease it. This is how they relate to the accounting formula (Assets = Liabilities + Owners Equity)

8209

It was about a decade between splitting consulting off and the IPO, including 3 years of legal action to allow the consulting branch to become a fully independent entity, and the partners on each side were not exactly best friends during that time. Not exactly a quick money grab. (also please note that Andersen created a new consulting group *before* the IPO of what was then Andersen Consulting, and this was what lead directly to the lawsuit)

8480

It is highly unlikely that this would be approved by a mortgage underwriter. When the bank gives a loan with a security interest in a property (a lien), they are protected - if the borrower does not repay the loan, the property can be foreclosed on and sold, and the lender is made whole for the amount of the loan that was not repaid. When two parties are listed on the deed, then each owns an UNDIVIDED 50% share in the property. If only one party has pledged the property as surety against the loan, then in effect only 50% of the property is forecloseable. This means that the bank is unable to recoup its loss. For a (fictional, highly simplified) concrete example, suppose that the house is worth $100,000 and Adam and Zoe are listed on the deed, but Adam is the borrower for a $100,000 mortgage. Adam owes $100,000 and has an asset worth $50,000 (which he has pledged as security for the loan), while Zoe owes nothing and has an asset worth $50,000 (which is entirely unencumbered). If Adam does not pay the mortgage, the bank would only be able to foreclose on his $50,000 half of the property, leaving them exposed to great risk. There are other legal and financial reasons, but overall I think you'll find it very difficult to locate a lender who is willing to take that kind of risk. It's very complicated and there is absolutely no up-side. Also - speaking from experience (from which I was protected because of the bank's underwriting rules) and echoing the advice offered by others on this site: don't bother trying. Commingling assets without a contract (either implicit by marriage or explicit by, well a contract) is going to get you in trouble.

8542

Please either remove the $50 going to the 529 plan or move it into a ROTH IRA instead. You can always use your ROTH contributions to pay for college expenses in the future if you want to. I suspect you may not have enough saved up for retirement to have the luxury to help with college though.

8653

I use the forum seeking alpha. http://seekingalpha.com/

8859

Welcome to the real world :-) There really aren't all that many ways for ordinary employees to lower taxes. You could put more in your 401k, buy a house (for the mortgage interest deduction, which lets you deduct some other things instead of taking standard deduction), or move to a different state to get rid of the state tax.

8891

There are two independent sets of terms we need to define in order to answer your question. I am trying to understand the difference between Value, Blend, and Growth These are different categories of mutual funds: Value: discounted or undervalued stocks. This is often measured by a difference between the stock's price and the Net Asset Value (NEV). Growth: stocks that fund managers believe are poised for significant growth (increase in stock price and NEV). Blend: a blend of two categories of stocks. In this context it probably refers to a combination of growth and value stocks, but it just depends on the context. I want to receive dividend and Growth These are ways to receive earnings from a stock or fund. Dividend: a direct cash payment from owning a stock or a fund. Stocks and funds who pay out 100% of their profits don't have any money leftover to grow themselves and either stagnate or shrink. Growth: an increase manifesting itself in capital gains. If a stock or fund pays out zero dividends, then all profits are invested back into the company for fund, increasing its value. If you intend to automatically reinvest dividends, then receiving dividends is essentially the same as receiving profit through capital gains. If you intend to sell stocks or funds periodically to get some extra spending cash, then receiving profits through capital gains is essentially the same as dividends.

9082

This is a gross simplification as there are a few different ways to do this. The principle overall is the same though. To short a stock, you borrow X shares from a third party and sell them at the current price. You now owe the lender X shares but have the proceeds from the sale. If the share price falls you can buy back those shares at the new lower price, return them to the lender and pocket the difference. The risk comes when the share price goes the other way, you now owe the lender the new value of the shares, so have to find some way to cover the difference. This happened a while back when Porsche made a fortune buying shares in Volkswagen from short sellers, and the price unexpectedly rose.

9116

ACWI refers to a fund that tracks the MSCI All Country World Index, which is A market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International, and is comprised of stocks from both developed and emerging markets. The ex-US in the name implies exactly what it sounds; this fund probably invests in stock markets (or stock market indexes) of the countries in the index, except the US. Brd Mkt refers to a Broad Market index, which, in the US, means that the fund attempts to track the performance of a wide swath of the US stock market (wider than just the S&P 500, for example). The Dow Jones U.S. Total Stock Market Index, the Wilshire 5000 index, the Russell 2000 index, the MSCI US Broad Market Index, and the CRSP US Total Market Index are all examples of such an index. This could also refer to a fund similar to the one above in that it tracks a broad swath of the several stock markets across the world. I spoke with BNY Mellon about the rest, and they told me this: EB - Employee Benefit (a bank collective fund for ERISA qualified assets) DL - Daily Liquid (provides for daily trading of fund shares) SL - Securities Lending (fund engages in the BNY Mellon securities lending program) Non-SL - Non-Securities Lending (fund does not engage in the BNY Mellon securities lending program) I'll add more detail. EB (Employee Benefit) refers to plans that fall under the Employee Retirement Income Security Act, which are a set a laws that govern employee pensions and retirement plans. This is simply BNY Mellon's designation for funds that are offered through 401(k)'s and other retirement vehicles. As I said before, DL refers to Daily Liquidity, which means that you can buy into and sell out of the fund on a daily basis. There may be fees for this in your plan, however. SL (Securities Lending) often refers to institutional funds that loan out their long positions to investment banks or brokers so that the clients of those banks/brokerages can sell the shares short. This SeekingAlpha article has a good explanation of how this procedure works in practice for ETF's, and the procedure is identical for mutual funds: An exchange-traded fund lends out shares of its holdings to another party and charges a rental fee. Running a securities-lending program is another way for an ETF provider to wring more return out of a fund's holdings. Revenue from these programs is used to offset a fund's expenses, which allows the provider to charge a lower expense ratio and/or tighten the performance gap between an ETF and its benchmark.

9479

"I don't think blanket answers are very helpful. You are asking the right question when you are young! You have a large number of investment options and Australia has the Superannuation system that you can extract significant tax value from. I've not attempted to grade these with regard to ""risk"", as different people will rate various things with different levels, depending on their experience and knowledge. Consider the following factors for you:-"

9484

A fucking credit union. Even if they use an all paper system and have no website, no phone app, and can only be contacted by fax or telephone, use a credit union. Even if the only place you can get your money is a 45 minute drive to the next town, use a credit union. Its not about finances, its about reclaiming basic human dignity in the world of American Finance.

9512

"A suitable mix of index funds IS a great option if you don't want to spend a lot of time and effort micromanaging your money. If you find amusement in pushing numbers around, you may be able to do better. Notice: MAY. If you have multiple millions, you can hire someone of that sort to push the numbers around for you. They may do better for you. Notice: MAY. And remember that part of your additional gains have to go to pay them, which means they have to do better just to be worth having on staff in the first place. If you have more than that, there are some options available which smaller investors really can't get involved in. As one example: If you have enough money that you can lose $100K without especially noticing, you can get involved in venture capital and the like which require a large commitment AND are higher-risk but can yield higher returns. Anyone who's dismissing index funds as ""only for beginners"" is being foolish. But recommending them to beginners in particular is a good thing since they let you get into the market with fairly predictable risk/benefits without needing a massive investment in education and time."

9568

That may become complicated depending on the State laws. In some States (California for example), LLCs are taxed on gross receipts, so you'll be paying taxes on paying money to yourself. In other States this would be a no-op since the LLC is disregarded. So you need to check your State law. I assume the LLC is not taxed as a corporation since that would be really stupid of course, but if it is then it adds the complexity of the Federal taxes on top as well (corporate entity will pay taxes on your rent, and you'll pay taxes on your dividends to get the money back). The best option would be to take that property out of the LLC (since there's no point in it anyway, if you're the tenant).

9597

If you can still work, I think a very good course of action would be to invest the majority of the money in low-cost index funds for many years. The reason is that you are young and have plenty of time to build a sizable retirement fund. How you go about this course of action depends on your comfort level with managing your money, taxes, retirement accounts, etc. At a minimum, open an investment account at any of the major firms (Schwab, Fidelity, for example). They will provide you with a free financial advisor. Ideally s/he would recommend something like: Open a retirement account and invest as much as you can tax-free or tax-deferred. Since you already received the money tax-free, a Roth IRA seems like a no-brainer. Pick some low-fee equity funds, like an S&P 500 Index fund, for a large chunk of the money. Avoid individual stocks if you aren't comfortable with them. Alternatively, get a recommendation for a fixed-fee financial planner that can help you plan for your future. Above all, don't spend beyond your means! You have an opportunity to fund a very nice future for yourself, especially if you are able to work while you are still so young!

9676

"First you must understand your Marginal Tax Rate (Tax Bracket) The exemptions you claim are like saying to your employer ""tax me on $4050 less, or more"" for each change up or down of 1 exemption. Say you look at the table (2016 tables at my main site) and see you are in the 15% bracket. And your refund is $2000. 2000/.15 is $13,333. So you want that $13K to not be taxed. Raising exemptions by 3 (3x4050 = 12,150) will get you close. $1822 closer to your goal. For what it's worth, you can read through the instructions for the W4, of course. But this answer skips through the details and gets you to your goal. One point to note, since the exemption is in whole numbers, and $4050 is it, you will get close, +/- $608 if in the 15% bracket, but to get dead on, you'd need a mid year adjustment. Not worth it. A refund of under $608 should be enough for a 15%er. ($1012 for a 25%er) If you ready want to nail the taxes to a closer accuracy, you can use the line requesting additional dollars be withheld. Most W4 discussions miss this point. The exact number withheld by your employer comes from an IRS document known as Circular E, but retrieved as Publication 15. It will help you confirm the validity of my dirty shortcut method. What I do recommend is that you use a quick online tax calculator to do a dry run of you return, early in the year. If you see your withholding is off in either direction, best to adjust as soon as possible. (The numbers here now reflect 2016's $4050 exemption, recent question on Money.SE have linked to this one, prompting me to update for 2016)"

9814

"Ever wonder why certain businesses won't accept certain credit cards? (The sign above the register saying ""Sorry, we don't accept AmericanExpress""). It's because they don't want to pay that credit card company's transaction fees. One of the roles of the credit card company is to facilitate the transaction process between the customer (you) and the store. And now that using credit cards over cash or check is so ingrained in our culture, it creates extra work for the customer to make purchases at an establishment that is cash-only. Credit card companies know this, and so do businesses. So businesses will partner with credit card companies so that customers can use their cards. This way, everything is handled electronically (this can also benefit the business, since there's added security as they're not dealing with cash directly, and they don't have to manually count as much cash later). However a business may only budget a certain amount of their profits they want taken by credit card transactions. So if a company's fees are too high (say AmericanExpress, for example) and they are banking on you already having a Visa card, the company isn't going to go out of its way to provide the AmericanExpress option for you. If it were free for the business to use a credit card company's service at their stores, then they would all just provide the option for every card! So the credit card company making money is all contingent on you spending your money by using their credit card. You use the card, and the store pays the company for the transaction."

9845

Your tax bracket is determined by your total taxable income in a given year, where money drawn from a traditional-style deferred-tax 401k or IRA is taxable income. (Money drawn from a Roth account was taxed before deposit and is not taxed when withdrawn after the relevant date.) Your recent salary history has no effect on this, except salary in the same year -- and there is no advantage to be gained by taking a deliberate pay cut for its own sake.

10321

"I just want to point out that this can happen anywhere, teachers with tenure who get into big trouble ""retire early"". The whole country could do with a heaping helping of accountability. I've already seen unauthorized charges on my credit card, and I'm sure it'll continue for years to come."

10399

Where are they going to get money from? Their bonds are worthless because they have no viable way of ever paying back debt so why would anyone lend money to them. You, and Keynes think that you can fuel debt with more debt, but all this does is build a massive debt bubble that has to pop at some point. This is exactly what these nations did for years and now are beginning to realize that they can no longer issue debt.

10521

Groups of three or four students will jointly decide on a Fortune 500 business in the United States and research this business and its practices in the United States. ( we chose Apple) Beyond a business concentration, focus on components of a concentration for your paper: i.e. benefits, accountability in accounting practices, direct to consumer marketing et al. Other members do research on HR, Marketing, accounting, and I have to research on finance.

10549

"Very interesting. I'm actually glad you mentioned term structure models, because that's something I'm interested in. But I don't think the distinction you draw between ""equilibrium"" and ""arbitrage free"" models makes sense with Black-Scholes. My understanding was that the discrepancy between equilibrium and arbitrage-free term structure models arises because term structure models lack market completeness. In other words, when the market is incomplete (as it is with interest rates), you'll have a continuum of bond prices that are compatible with no arbitrage, and the exact price will depend on the market price for risk. However, in Black-Scholes, the market price for risk term basically falls out of the equation because of market completeness. Or in other words, since we have market completeness, there's a *unique* martingale measure that gives the price for the option. So when you have market completeness, there should be no difference between an equilibrium and a no-arbitrage model - they're one and the same."

10710

As per the chart pattern when ever a stock breaks its 52 week high. This information may differ for penny stocks,small caps and mid cap stocks

11075

In my experience they charge you coming and going. For example, if a brokerage firm is advertising that their commissions are only $7/trade, then that means you pay money to buy the stock, plus $7 to them, and later on if you want to sell that stock you must pay $7 to get out of the deal. So, if you want to make any money on a stock (say, priced at $10) you would have to sell it at a price above $10+$7+$7=$24. That kind of sale could take a few years to turn a profit. However, with flat-rate fees like that it is advantageous to buy in bulk.

11082

"You have what is called in the biz a ""thin file"". Check with a Credit Union. They will get you a secured card or maybe a straight credit card. They usually will graduate you from a secured card to a real credit card in 12-18 months. Then you are on your way. You should also sign up for Creditkarma to get your credit report updated every week. They make their money on referring people to credit card companies so you might be able to kill two birds with one stone."

11184

"The Dividend Discount Model is based on the concept that the present value of a stock is the sum of all future dividends, discounted back to the present. Since you said: dividends are expected to grow at a constant rate in perpetuity ... the Gordon Growth Model is a simple variant of the DDM, tailored for a firm in ""steady state"" mode, with dividends growing at a rate that can be sustained forever. Consider McCormick (MKC), who's last dividend was 31 cents, or $1.24 annualized. The dividend has been growing just a little over 7% annually. Let's use a discount, or hurdle rate of 10%. MKC closed today at $50.32, for what it's worth. The model is extremely sensitive to inputs. As g approaches r, the stock price rises to infinity. If g > r, stock goes negative. Be conservative with 'g' -- it must be sustainable forever. The next step up in complexity is the two-stage DDM, where the company is expected to grow at a higher, unsustainable rate in the early years (stage 1), and then settling down to the terminal rate for stage 2. Stage 1 is the present value of dividends during the high growth period. Stage 2 is the Gordon Model, starting at the end of stage 1, and discounting back to the present. Consider Abbott Labs (ABT). The current annual dividend is $1.92, the current dividend growth rate is 12%, and let's say that continues for ten years (n), after which point the growth rate is 5% in perpetuity. Again, the discount rate is 10%. Stage 1 is calculated as follows: Stage 2 is GGM, using not today's dividend, but the 11th year's dividend, since stage 1 covered the first ten years. 'gn' is the terminal growth, 5% in our case. then... The value of the stock today is 21.22 + 51.50 = 72.72 ABT closed today at $56.72, for what it's worth."

11224

"> When you make a mistake, the sooner you admit it, the better. OK. Then explain this statement: ""You still pay taxes on ""tax deferred"" retirement plans - In fact, I would dare say that in most cases, people end up paying more in taxes, because they pay it as regular income rather than LTCG."" What is the account that you're referring to where you'd pay only LTCG?"

11454

"Assuming U.S. law, there are ""safe harbor"" provisions for exactly this kind of situation. There are several possibilities, but the most likely one is that if your withholding and estimated tax payments for 2016 totaled at least as much as your tax bill for 2015 there's no penalty. For the full rules, see IRS Publication 17."

11456

The short answer to your initial question is: yes. The option doesn't expire until the close of the market on the day of expiration. Because the option is expiring so soon, the time value of the option is quite small. That is why the option, once it is 'in-the-money', will track so closely to the underlying stock price. If someone buys an in-the-money option on the day of expiration, they are likely still expecting the price to go up before they sell it or exercise it. Many brokers will exercise your in-the-money options sometime after 3pm on the day of expiration. If this is not what you desire, you should communicate that with them prior to that day.

11633

"Assuming you can understand and emotionally handle the volatility, a good indeed fund would be wise. These are low fee funds which perform as well as our better than most managed investments and since they don't cost as much, they typically out perform most other investment vehicles. The S&P 500 is traded as SPDR. Another option is the Dow Jones Industrial Average, which trades as DIA. Average returns over the long term are 10-12%. If you expect to need the money in the short term (5-8 years), you have a non trivial chance of needing to pull the money out when the market is down, so if that's unacceptable to you, choose something with a guarantee. If you're terrified of losing money in the short term, don't think you can handle waiting for the market to go up, especially when every news caster is crying hysterically that the End of Economic Life on Earth is here, then consider a CD at your bank. CDs return much lower rates (around 2% right now) but do not go down in value ever. However, you need to lock your money into them for months to years at a time. Some people might tell you to buy a bond fund. That's horrible advice. Bond funds get lower returns AND have no guarantee that you won't lose money on them, unlike aactual bonds. As you're new to investing, I encourage you to read ""The Intelligent Investor"" by Benjamin Gramm."