Questions tagged [investing]

Investing is the process of buying assets such as securities, real estate and other items of value that will hopefully increase in value over time, providing a return in the form of income payments or capital gains.

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Are leveraged risk-parity portfolios too good be true?

I was reading the bogleheads forum and it seems that lifecycle investing or leveraging a mixed portfolio of stocks and bonds have popular topics for a while now. Whether you achieve it through box-...
Eric Gumba's user avatar
3 votes
1 answer
205 views

How do ETFs process dividends?

Presumably at least some of the stock shares held by an Exchange Traded mutual Fund produce dividends. Do those dividends just get pocketed by (and taxed upon) the fund managers, as their income to ...
keshlam's user avatar
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Buying bonds vs opening deposits in Russia

I've been thinking about deposits and bonds. I live in Russia, and here some trustworthy banks offer deposits at the rate of 14.5% a year, and the interest is paid every month. The interests of ...
Жёлудь-мистэ́р's user avatar
0 votes
1 answer
378 views

Why would I ever buy a house vs. just renting and invest the rest?

I found myself in a weird realization right now where I put everything into an Excel sheet, I can’t find a good reason to ever purchase a house vs investing into an index fund. Ever since I graduated ...
PrinceHairy's user avatar
-2 votes
1 answer
140 views

With 500k in Netherlands, Best path towards regular income, settle mortgage and rent or sell and invest?

Currently I live in Netherlands. I have come to a crossroad and I'm interested to hear other opinions and advice on investment for a regular stable long term income. My ultimate intention is to secure ...
Kareem's user avatar
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15 votes
5 answers
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How much do we need to understand about finances in order to trust our fiduciary advisor's recommendations?

We often have to put somewhat blind faith in the people who serve us---car mechanics, HVAC technicians, doctors, etc. Normally I research things a great deal before making a decision or trusting ...
Eggy's user avatar
  • 259
3 votes
1 answer
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Where to find the variable interest calculation formula for a bond?

I am a relatively new investor based in Germany and am trying to decide whether to put some money (intended for a house downpayment in 3-4 years) into government bonds. For example this one: https://...
Harry Matthews's user avatar
6 votes
2 answers
4k views

What is this type of equity called where I get a share of the profits for the duration of my employment?

I've heard of an interesting "equity" scheme in a company from my friends and I'm wondering what this scheme is called. You work as the Manager for a supermarket chain, and they will give ...
John Hon's user avatar
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0 answers
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(UK) Should I look to buy a "better" (more expensive) flat or house now, or save/invest instead, to buy later?

I bought a flat in 2016 for £160,000. I recently (in 2024) had it valued at £210,000, so in nearly 8 years it has appreciated by about 3.5% annually. ((210000/160000)^1/8 -1) * 100. I could afford a ...
Andy B's user avatar
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1 vote
1 answer
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What's the case against being 1.3x levered in PA if you're in your 20s?

If you're in your late 20s and own a bunch of SPY and diversified stocks, why shouldn't you be 1.3x levered? 2.0x levered seems too aggressive given there are 50% drawdowns to the S&P occasionaly. ...
user3807846's user avatar
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Best traditional IRA investment for working person over 70?

My mother is 71 years old and plans to work at least 3 more years. She only recently opened a money market account (5%) and a traditional IRA. She put the maximum contribution for 2023---$7300---into ...
Eggy's user avatar
  • 259
4 votes
1 answer
2k views

Advice for investing money for a 15-year old

Hope this is on-topic for here. I'm looking for some advice on the best way to handle a pension. I would like to have the money paid into an account for my 15-year old daughter. The lump sum is about £...
DreamingOfSleep's user avatar
0 votes
1 answer
40 views

How to compare "block lists" for brokerages?

I currently invest with Merrill Edge and they have a fairly strict "block list" and don't allow many high risk securities to be purchased. Here is an example: Merrill Edge blocks active ETFs?...
Chirag Patel's user avatar
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1 vote
2 answers
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What hapens to realized gains from commodities in *gnucash*?

The documentation for Gnucash mentions that "Any realized gain splits are ignored" within advanced portfolio reports. These reports provide information for open transactions, including ...
maxemilian's user avatar
1 vote
0 answers
40 views

Computing investment returns on TD Ameritrade

Vanguard has a dashboard that automatically computes and displays one's personal performance. It has a plot of Balances over time, and of Net Purchases and Withdrawals over time. Then, below this, it ...
Betterthan Kwora's user avatar
0 votes
1 answer
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What's the purpose of investment rate indicator?

I'm reading Value: The Four Cornerstones of Corporate Finance, and quote Growth, ROIC, and cash flow (as represented by the investment rate) are tied together mathematically in the following ...
daisy's user avatar
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1 vote
1 answer
139 views

How to keep discussion with Wealth Advisor on topic?

I am based in the UK. I have an appointment with an HSBC Wealth Advisor next week to discuss a question. My question, is whether or not there is something more intelligent that I can do with a £200k ...
Cat Terry's user avatar
0 votes
1 answer
111 views

Buying REITS in your Healthcare HSA?

I have a healthcare HSA account through work and am trying to figure out an investing strategy that makes use of the triple tax advantages of an HSA, does grow a decent amount faster than inflation ...
Dan Csharpster's user avatar
0 votes
1 answer
126 views

Why is it called "accredited investor" status with no accreditation process?

The word "accredited" has a pretty specific meaning: having successfully passed a formal process of certification. But becoming an "accredited investor" doesn't appear to have any ...
Mason Wheeler's user avatar
0 votes
1 answer
47 views

Is Joel Greenblatt's Magic Formula biased towards large companies?

One of the sorting criteria in Joel Greenblatt's Magic Formula is EBIT. However, EBIT is positively correlated with the market capitalization of companies, i.e., larger companies have a higher EBIT. ...
Value_Investor's user avatar
0 votes
1 answer
128 views

Investment funds that make a difference

When searching for ethical investment funds, the usual model seems to be funds that exclude certain companies or sectors on environmental, social or governance reasons (ESG). I am, however, looking ...
Arno's user avatar
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0 answers
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Common stock and ADR traded on the same exchange for one company? What's the difference between them? [duplicate]

I'm looking at Renesas Electronics Crop stock and they have two tickers, both traded on the OTC exchange but one of them is noted as "common stock" (RNECF) and one is noted as an ADR (RNECY)....
Alex Jegers's user avatar
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0 answers
55 views

Building buy&hold ETF portfolio by writing ETF puts? [duplicate]

Does building a buy and hold index ETF portfolio by writing puts on the desired ETF, and possibily getting assigned, yield a boost over buying the ETF the standard way ? Is it a good idea ?
Raoul's user avatar
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2 votes
1 answer
258 views

Can an individual agree to guarantee the investment of another individual in a legally enforceable way?

Suppose individual A want to make an investment in a non-liquid investment vehicle, but they would like to limit their downside if the venture turns out poorly. Suppose another individual B would like ...
merlin2011's user avatar
15 votes
2 answers
3k views

Why are there buyers for a stock of a biotech company that was recently acquired?

The stock of this company, Karuna Therapeutics, rose on 12/22/2023 from around 220$ to 320$ because it is being acquired by a bigger biotech company. https://finance.yahoo.com/quote/KRTX/ From the ...
ronald christenkkson's user avatar
3 votes
2 answers
2k views

Are condos even worth it over investment in stocks

Where I live houses are extremely expensive average around 900k USD. Condos can go around 300k to 400k USD for the cheaper end. However the HOA fee often runs $600 at least and combining with ...
Lightsout's user avatar
  • 2,041
1 vote
2 answers
46 views

How to calculate PV of annuities for a home loan

I am trying to model investing in residential real estate vs investing fully in stock. I have a corpus of say 1M in S&P500. I also receive monthly income which will be used to either invest in ...
nandonachi's user avatar
0 votes
1 answer
151 views

Monthly Rate vs Continuously Compounded Rate

A bank offers two alternative interest schedules for a savings account of $100,000 locked in for 3 years. Which alternative should you choose? (a) a monthly rate of 1% (b) an annually, continuously ...
user546106's user avatar
2 votes
0 answers
159 views

Why would a company be "required" to hold bonds in Europe?

I was just watching an old recording of one of Berkshire Hathaway's shareholder meetings and Charlie Munger made a statement about being "required" to hold bonds in Europe. Why would they ...
jesse_b's user avatar
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8 votes
6 answers
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Is investing in S&P 500 a wise choice if you plan to purchase a house in 10-15 years?

My total compensation is $168k/year ($285k gross) and my goal is to purchase a house in the range of $1M to $2M. I plan to invest my savings in the S&P500 for about 10-15 years, hopefully, to make ...
N N's user avatar
  • 111
1 vote
2 answers
56 views

NPV in trade projects

The question must be very simple but I'm still struggling. Let's suppose that I have an import-export business. Then I have a discounted CF which is formed by subtracting all costs & taxes from ...
Gigigi's user avatar
  • 11
5 votes
2 answers
735 views

How could the percentage exceed 100 here?

I'm reading The Little Book of Common Sense Investing and in chapter 11 it has a prologue, IN SELECTING MUTUAL FUNDS, too many fund investors seem to rely less on sustained performance over the very ...
daisy's user avatar
  • 579
13 votes
4 answers
3k views

Why doesn't my bond ETF provide a hedge against stock indexes in the way I thought it would?

I own BND in an attempt to hedge my portfolio against my stock ETF declines, based off of the Bogleheads philosophy. I've noticed that with this ETF, over the relative long term, I've made but modest ...
Ken - Enough about Monica's user avatar
-1 votes
2 answers
155 views

Is Limit Order classified as Trading rather than Investing?

I had a question, and a Scholar has commented below. Sounds like you're trading rather than investing. Good luck; you're going to need it So my questions are below( despite my very long and monetary ...
puzzled's user avatar
  • 1,016
4 votes
2 answers
1k views

Acquisition/Share holding question

I am trying to figure out my share calculations. I have vested 10,000 shares in my company and they are a private tech company that seems to be on track to be acquired in the next six months. Do I get ...
user126215's user avatar
0 votes
1 answer
159 views

How do you calculate the proportion of shares required to formulate a minimum risk portfolio?

An investor has decided to invest 1 million in the shares of two companies, company E and company B. the projections of returns from the shares of the two companies along with their probabilities is ...
symon 's user avatar
  • 11
0 votes
1 answer
199 views

Where can I look up total returns of stocks, ETFs, and mutual funds? [closed]

I'm looking for a free way to look up total returns of various stocks, ETFs, and mutual funds. FinanceCharts.com lets me save lists of stocks and ETFs and view total returns for various time periods, ...
KnowItAllWannabe's user avatar
2 votes
2 answers
503 views

What is the correct Formula for calculating fund growth with fees

I am considering two different options for a roth IRA. A managed fund that has a higher historical growth rate but 1% fee and a self directed vanguard account, which would have a lower growth rate but ...
achyrd's user avatar
  • 123
1 vote
1 answer
145 views

Use HSA for medical expenses or save it for investment?

If investment growth using an HSA account is not subjected to taxes, then isn't it better to invest using HSA than investing on stock platforms like Fidelity or Robinhood? When I use the funds in the ...
Lacie's user avatar
  • 169
0 votes
1 answer
111 views

Can I buy stocks on Vanguard SIPP from UK

I currently have a SIPP account with HL. But I want to transfer my account to Vanguard as the annual account fee is much cheaper with Vanguard. However I don’t know and couldn’t find any information ...
MSBI-Geek's user avatar
  • 103
0 votes
1 answer
142 views

Can you sell REITs any time?

What is the general liquidity of REITs? I got some recommendations from stocks to track but having no experience buying and selling REITs.
user avatar
2 votes
3 answers
473 views

What are the differences between real estate investment trusts (REITs) and Real Estate Index Fund ETF?

I attended a course on Financial Literacy, and it is intriguing to learn about the various investment opportunities available in the market. One particular topic that piqued my interest was Real ...
user avatar
1 vote
1 answer
86 views

Quickbooks: how to keep track of mortgage installments as expenses?

I am new to Quickbooks. Anyone can help answer this quick question? I need some help figure out mortgage installments bookkeeping rules.
Carson B's user avatar
2 votes
1 answer
151 views

How would investing in fractional real estate affect my tax situation? If I invest in properties in multiple states, do I need to file tax in each?

Based on our personal experience, we've had to file separate state taxes while managing rental properties from out of state. I'm curious whether the same situation applies if we invest in REITs or ...
user avatar
0 votes
1 answer
205 views

Employees buying the company’s stock for lower price

There are three stocks I’m aware of (CHPT, EVGO, LCID), which crashed right after they reported that workers and “big stake” investors are allowed to purchase a big amount of common stocks for a lower ...
Or Shahar's user avatar
  • 103
1 vote
1 answer
294 views

How to calculate min. investment amount to reach certain buy in

I invested in a stock which is now 70% in minus. So now imagine I believe it will come back. I want to use the low to invest more money but I'm not sure how much. How do I calculate the necessary ...
blackjacx's user avatar
  • 113
0 votes
1 answer
59 views

Par value less than annual dividend for preferred stocks?

Hey I am just skimming through the chapter 18 of the book intelligent investor by benjamin graham with commentary Jason Zweig. Pg:447 It basically compares Real Estate Investment Trust with Realty ...
CREATIVITY Unleashed's user avatar
0 votes
0 answers
39 views

Credit Investing - Best Metric To Compare Spread / Yield Per Unit of Risk

Do people investing in credit (leveraged loans / high yield) that want to compare different industries / different valued businesses ever look at spread per turn of LTV (or the inverse, 1/LTV = asset ...
aethiogo's user avatar
1 vote
3 answers
121 views

Why should I use ROIC instead of P/E given that that is the price I'm paying to buy stock?

What are the advantages of using ROIC (Return on Invested Capital) as a key financial metric for analyzing stocks compared to P/E (Price-to-Earnings ratio)? I'm particularly interested in ...
metdos's user avatar
  • 11
0 votes
0 answers
27 views

Can I carry forward investment interest expense even if I take the standard deduction? [duplicate]

On IRS 2022 Form 1040, if I take the standard deduction, I don’t think I’m allowed to deduct investment interest expense on Schedule A, line 9, but can I still file Form 4952 to report any disallowed ...
ma11hew28's user avatar
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