Investing is growing money over a longer time frame. When appropriate a specific tag like stocks, mutual funds etc should additionally be used.

learn more… | top users | synonyms

4
votes
2answers
92 views

How to make an investment in a single company's stock while remaining market-neutral?

Supposing that I "believe" in one particular company, but I'm worried that the stock market may be in a bubble overall. How can I invest accordingly? How can I invest in one particular company, while ...
1
vote
0answers
48 views

Where to find turnover / average amount of time investors & mutual funds held stocks they purchased?

In the book The Intelligent Investor, Jason Zweig mentions the annual turnover rate for stocks on the NYSE, that is the average amount of time investors and mutual funds held stocks that they ...
4
votes
3answers
312 views

Allocation between 401K/retirement accounts and taxable investments, as a young adult?

I graduated college last year and began a career at a company with a 401K option. I cannot pull any money out of the Roth 401K without tax consequences or a penalty. I am interested in starting a ...
3
votes
2answers
103 views

Is it better to hold tax-inefficient investments in tax-deferred versus tax-free accounts?

This page seems to suggest it is preferable to hold tax-inefficient investments in tax-deferred versus tax-free accounts. Is there an explanation for this? Holding tax-efficient investments in taxable ...
6
votes
1answer
136 views

Where to categorize crypto-currencies

In Germany, crypto-currencies like Bitcoin are all over the news lately, making me aware of the fact I don't know much about them. A journalistic TV program I was watching yesterday even claimed ...
4
votes
3answers
130 views

Is there any reason to diversify your investments across accounts at multiple/different brokers?

I have a few retirement accounts at Vanguard. I am considering opening a regular non-retirement investment account there. Is there any reason to diversify and open the new account with a different ...
2
votes
1answer
219 views

Bond : Difference between coupon and yield

On a bond chart, I always see the terms: Yield & Coupon, which seem to mean the same thing. What is the difference between these two terms?
1
vote
2answers
191 views

How do dividends of the underlying security in a security futures contract affect the security futures price?

I would assume that increases in any dividends would increase the price of the underlying security, therefore causing a relative increase to the security future price. Or is this relationship more ...
1
vote
1answer
50 views

Is it possible to use an ETF's/index's price near market close to time my investments in its corresponding mutual fund?

I want to make monthly purchases of an S&P 500 index mutual fund. Most of the time (according to the numbers I looked at), if the index closes down for the day, the mutual fund's NAV will decrease ...
6
votes
3answers
600 views

What is the “rule of 70” or “rule of 72” with regards to investment, and how do I apply it?

What is the "rule of 72" (sometimes called the "rule of 70") with regards to investment, and how do I apply it?
4
votes
1answer
304 views

How do share dilution scams make money?

The wiki article on share dilution scams says A share dilution scam happens when a company ... repeatedly issues a massive amount of shares into the market (using follow-on offerings) for no ...
1
vote
1answer
69 views

How to select a service to use to begin making investments?

I'm looking to make a small investment in stocks. I like the idea of ETF's and since I'm based in Ireland I'm considering using Davy : http://www.davyselect.ie/our-services/self-invest.html Is this ...
2
votes
2answers
247 views

What's a recommended minimum amount for buying an index ETF, to minimize fees/commissions?

Let's say every month I transfer $559, which is about 3 shares of VOO. The commission from Fidelity is $7.95, which is about 1.42%. Is it worth doing that, or better, every other month buy worth of ...
1
vote
1answer
52 views

Relationship between Home, Net Worth, and REITs

Source: P215, ETF for Dummies, 2nd Ed (2011) by Russell Wild: Your residence, your portfolio If you bought your home for, say, $130,000 some 26 years ago, and that home is now worth $1.3 ...
3
votes
3answers
80 views

Source of income: from dividends vs sale of principal or security

Source: P172, P214, ETF for Dummies, 2nd Ed (2011) by Russell Wild: P172: First, if you need a steady stream of income, nothing is stopping you from creating artificial dividends by selling off ...
1
vote
2answers
101 views

Suppose earning an APR of 7% for 5 years, with interest compounded quarterly. What is the EAR? What is the Total Return?

Suppose you earn an APR of 7% for 5 years, with interest compounded quarterly. What is your EAR? What is your Total Return? The part I am confused is "with interest compounded quarterly" The ...
12
votes
7answers
1k views

Pros & cons in Hungary of investing retirement savings exclusively in silver? What better alternatives, given my concerns?

For my retirement savings, my strategy is to buy a decent amount of silver (8% of my salary, roughly 1 month) every year to put away in coin form. I am currently investing in nothing else for the long ...
1
vote
1answer
119 views

Are stock screeners with backtesting a real possibility for a trading strategy?

Some stock screeners offer backtesting. They may sell everything and buying 10 top stocks passing their criteria once a month. There can be many different rule sets, all with stellar returns over ...
2
votes
1answer
39 views

Deflation Risk on TIPS

From P18 in ETF for Dummies, 2nd Ed (2011) by Russell Wild: Such bonds do, however, carry interest-rate risk, and another risk that’s unique to them: deflation risk. If consumer prices start ...
8
votes
2answers
872 views

Explanation on Warren Buffett's famous quote

What does Warren Buffett says in this article here "In the short term the market is a popularity contest; in the long term it is a weighing machine." What is the analogy with popularity contest ...
5
votes
2answers
236 views

If I'm cash-flow negative, should I dollar-cost-average the money from my bonus over the entire year?

I asked a similar question last year, and got great advice. This year, there's a new wrinkle. I previously had automatic investments set up to move a small amount of money each day from cash to a ...
1
vote
2answers
50 views

How can I determine my basis for a gift of mutual funds?

My parents, saving for college many (20+?) years ago, purchased some Evergreen mutual funds for each of their children. I believe the accounts were established in the children's names. Thanks to some ...
27
votes
8answers
6k views

I'm saving money too fast. What should I do?

[Apologies if this sounds (and is) like a first world problem] I get a very generous salary and I am not a spender. I am able to save $2000-$2500 every month. I've invested part of my money in some ...
1
vote
1answer
112 views

Net Present Value (NPV) Question?

i hope i'm right here for asking. I'm a little stuck with this question any help is appreciated You have invested 5 million Euro in a wind turbine and expect an annual return of 600,000 Euro (6000 ...
2
votes
4answers
243 views

What to do with savings for 3-5 years?

Here's the situation: Married, late 30's, combined income around $170k. 2 toddlers. We owe $360k on a house worth $600k. Only other debt is $20k each in student loans. 401k plans are in order. We have ...
2
votes
1answer
55 views

Inverse Relationship between Volatility and Beta

From P78 in ETF for Dummies, 2nd Ed, by Russell Wild : Beta’s usefulness is greater for individual stocks than it is for ETFs, but nonetheless it can be helpful, especially when gauging the ...
4
votes
3answers
165 views

How do I bet one stock will outperform another stock?

How can I bet that company (a) will outperform company (b)? It seems like the simplest way would be to buy long company (a) and short company (b). However, this strategy seems crude since I will still ...
2
votes
2answers
139 views

Does a stock really dip in price on the ex-dividend date? And why would it do this?

As per this Investopedia article: Because the stock price is expected to drop by the amount of the dividend on the ex-dividend date, Why is a stock expected to fall on the dividend date? Does ...
3
votes
1answer
75 views

Differences in conditions on shares to private vs. public shareholders?

The Wikipedia page about IPOs says this: A company selling shares is never required to repay the capital to its public investors. Does that mean that stocks bought on the stock market are somehow ...
1
vote
2answers
394 views

When to start investing in an index fund? Wait for a bear market, use dollar cost-averaging, or another approach?

I think index funds are one of the best investment tools for the defensive investor. Still, when should one start investing money in an index fund? It could result in a loss to get in at the top of a ...
6
votes
2answers
119 views

If the housing market is recovering, why would a REIT index ETF (e.g. VNQ) not be performing well?

As you can see below, the Vanguard REIT ETF fund hasn't been doing very well for the last 6 months, but the housing market seems to be improving every month. Why do we have this difference? VNQ ...
4
votes
2answers
143 views

What to consider before buying (exercising) a family member's private company employee stock options, about to expire?

My brother-in-law is leaving a private tech company. He has $100,000 in stock options (fully vested) which he must either purchase, or abandon completely upon his exit. This is not a startup — ...
5
votes
1answer
259 views

Should my retirement portfolio's asset allocation become more conservative over time?

It seems to be common advice that a retirement portfolio should be invested aggressively when one is young, and conservatively when one is older and closer to retirement. Is this good advice? ...
2
votes
1answer
449 views

Investment options for 18 year old?

I have no background in investing and I'm not American but I would like to know what are my investment options as a college student studying in the US. I have put a side $1000 but I have no idea how ...
2
votes
3answers
572 views

Should I invest in the pre-IPO company stock offered by my employer?

Should I invest money in the pre-IPO stocks soon to be offered by the company that I work for? Is it wise to do this? What should I be thinking about? What are the risks? I'm one of the first ...
3
votes
1answer
51 views

How to automate the tracking of ratios and other values for a set of stocks or ETFs?

I'm interested in monitoring a set of financial products (say ETFs WLOG) continually (but not continuously). My current plan is the following. Say I want to survey the top ten Large Cap Growth ...
4
votes
2answers
212 views

Can institutional, quant, or other professional traders “prey on” (make money from) retail investors?

I was recently reading a well known forum, and someone made this post: I worked for a large investment bank about 10 years ago, writing trading programs for quant traders who were market ...
2
votes
2answers
233 views

How much lump sum investment in stocks would be needed to yield a target stable monthly income?

Situation: a guy has a lot of money. He wants to invest in stable and low risk stocks so that he could get a steady 1000$ a month income at least for the next 10 years (and having equal or bigger ...
2
votes
3answers
102 views

US retirement account types

I'm an 18 year old college student in the US who has a job and decent savings that pays for school and expenses. I have two credit cards to start building credit, but as I start to investing after a ...
2
votes
1answer
85 views

Is there any way to rebalance an investment portfolio while reducing/minimizing taxes?

Say you have a retirement goal of $1 million and reach it by investing a stock. If you want to rebalance and move this money to something safer, say bonds, will this exchange cost you capital gains + ...
2
votes
1answer
71 views

Can I transfer my West Australian rock lobster quota units into my SMSF?

Is it possible to transfer my pre-owned Western Australian Rock Lobster fishery quota units into my existing SMSF?
1
vote
1answer
743 views

What does a reorganization fee that a company charges get applied to?

Recently, one of my holdings underwent a reverse split. I was surprised (but not all that surprised) that there was an additional fee of $20.00 assessed, labeled as a "reorganization fee". This was ...
1
vote
2answers
117 views

Are there any other investing methods I should look into?

I'm looking into long-term investments. So far, I've looked at stocks, mutual funds, IRAs, and 401Ks. I'm 22 and recently begun my first full time job. I know the basics of these investments, ...
3
votes
1answer
52 views

Limiting Fees for Monthly Contributions

I'd like to start making more investments throughout the year to maximize earning potential with the goal of long-term financial growth. I've gone through the process of setting up a portfolio on TD ...
2
votes
1answer
122 views

Tax benefits to buying stocks on Dec 31 vs. one day later?

For an individual in the US (California), are there tax benefits to buying stocks on Dec 31 vs. one day later?
1
vote
3answers
139 views

Short Selling Specific to India

I'm trying to short sell for the first time and when I asked my broker he says that only Intraday short selling is allowed.That really didn't make any sense as the articles I read said I can short ...
10
votes
6answers
548 views

An index fund in my 401k performed very well this year. How to deal with the gains?

I'm 34. 100% of my 401k goes into an S&P index fund. I'm up about 25% this year. If this were in my brokerage account I'd probably cash out some of the profits and hold onto it and buy more ...
3
votes
1answer
79 views

Initial investment limit for an HSA? An IRA?

A fairly simple question but I had troubles finding the answer. (Apologies if the answer is well-known.) HSAs have a yearly contribution limit, as do IRAs. However, is there a maximum limit for the ...
3
votes
3answers
168 views

I'm a programmer and need a formula for calculating overal ROI [duplicate]

I'm programming a web app to track my hedge fund performance. I'd like to find my overall ROI for all time. If I had a beginning balance and my current balance then finding the ROI is easy. For ...
1
vote
2answers
133 views

As an investor or speculator, how might one respond to QE3 taper?

I see on the Internet a lot of talk amongst the financial types that QE3 may/may not taper off. I have owned some mutual funds as part of an IRA for the past year and took advantage of the huge ...