Use this tag for questions that relate to an investment you have made, plan on making, or have seen discussed.

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2
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3answers
2k views

When to start with year 0 and when with year 1 when calculating NPV?

I am calculating NPV for one investment plan. When should I start the calculation of NPV with year 0 and when with year 1? I know that the year 0 is like the year when the company is just starting up ...
2
votes
3answers
195 views

What is a good time to start investing in a targeted mutual fund?

Lets say I think a specific Index fund/Mutual fund is a good potential investment e.g. VHCOX, given its high growth rate in the past one year. Does it matter at what time I make the initial ...
1
vote
1answer
48 views

Help to understand some investment comments?

I am a foreigner in US and new to investment, and have trouble understanding a comment ...
2
votes
2answers
100 views

What criteria should I think about as I evaluate UK trading platforms?

I'm totally new to investing, and I'm looking to invest in some index tracker funds. Currently I have little idea about what to look for in an investment platform. For example, does HSBC's Investment ...
3
votes
1answer
132 views

Accounting Question - How Capital Investments are Tracked?

Based on the micro-balance sheet below - please help explain the following scenarios: 1st year we lost money - how will the capital account look at the end of the year? 1st year we break even - how ...
3
votes
1answer
738 views

What does the business term 'blue sky laws' mean? [closed]

I often hear 'blue sky laws' in reference to startup or early level businesses. What does it mean?
3
votes
3answers
5k views

What effect would currency devaluation have on my investments?

I am curious what effect currency devaluation has on the value of my various investments/assets. For instance, I have retirement savings in mutual funds, growth stocks, and bonds. First, let's ...
2
votes
1answer
1k views

Tax ID for an international student investing in U.S stocks

I am an international student studying at Villanova University in Philadelphia, PA. I am very interested in trying my luck at the U.S stock market. However, I do not work on campus and so do not have ...
2
votes
1answer
142 views

Company gets rid of bonus structure and replaces it with cash and options. What gives?

Here is how it went down and what they're offering me. What should I make of it/ask them about? 1) They are changing the bonus structure to allow me to get the payout IF we make a certain revenue ...
4
votes
1answer
107 views

Where can I buy bonds and other securities other than stocks?

I keep hearing that I can only buy bonds and other securities such as Treasury Bills from a broker...the thing is, I don't want to pay a broker (yet). I know I can buy stocks online through a trader ...
0
votes
1answer
483 views

How do I evaluate a potential investment in rental property?

I am looking to buy a long-term rental property. My objective is to maximize cash-flow. At this point I have a few figures, but I have no context to measure the numbers against: For example - This ...
1
vote
1answer
434 views

What's the best gold investment strategy for a Singapore resident?

I'd like to buy gold in small amounts (1 gm) when the prices are attractive, but I can't keep a watch on it. I'm buying gold as a long term investment / hedge, and I don't have plans to sell it. ...
4
votes
1answer
568 views

How do I find the value of British Energy Nuclear Power Notes?

I purchased British Energy shares when the company was floated on the stock exchange back in the late 90's. Now, many years on, I have ended up with Nuclear Power notes. I receive a quarterly ...
1
vote
4answers
151 views

I received some good advice recently, but what if you don't want to retire?

So I got a great answer to my question on how to become more financially responsible and fiscally secure, but one of the suggestions was to place some of my earnings into a retirement account. I'm not ...
3
votes
3answers
222 views

Why should I trust investment banks' ratings?

To me it does not make any sense to trust investment banks' (e.g. Goldman Sachs) so-called "price targets", I don't see how they would profit from actually helping retail investors. But it is trivial ...
4
votes
2answers
785 views

Are mutual funds a good choice for a medium to low risk investment with a two year horizon?

I have a two year investment horizon, and I will make regular monthly contributions. I prefer investment options with medium to low risk. Are mutual funds a good choice for such a short investment ...
7
votes
3answers
550 views

Sanity check on recommendations from a financial advisor

Recently my wife and I have decided that we make enough money to go see a financial advisor and see how we can be smarter with our money. The most important topic we discussed with the advisor was ...
3
votes
3answers
323 views

Investing: P/E Ratio basic question

I'm just starting out in investing so I apologize if this comes across as annoyingly simple question. I've just read about PE Ratio and I came across this video from investopedia P/E Ratio Video which ...
5
votes
1answer
229 views

What are good investments to use as hedges when the Federal Reserve draws down quantitative easing?

Basically I think it is quite obvious that quantitative easing (QE) will be pulled back eventually and countries will start to tighten their monetary policy. When that happens, what kind of assets ...
2
votes
1answer
117 views

How can I reduce the amount of tax I will pay on the sale of an investment property?

I'm selling an investment property. It is not eligible for a primary residence exemption. I am not interested in purchasing another investment property (i.e. doing a 1031 exchange). So I will pay ...
3
votes
3answers
2k views

What are the tax implications of selling an investment property?

I'm planning on selling an investment property (a condo in WA state). I've owned this property since 2004. I lived in it as my primary residence from 2004 to October of 2007. I'm planning on taking ...
2
votes
2answers
85 views

Which expenses eat up investments the most: sales charge (front / back-end load), foreign exchange spread, or expense ratio?

I am a bit confused as to which expenses eat up most of the investment. Some brokers have low sales commission but the foreign exchange spread is high. Some have higher sales commission but lower ...
0
votes
1answer
157 views

Why are fund managers' average/minimum purchase price from form 13F the same?

Using the fund managers 13F form filings you can calculate the average, minimum, and number of shares of a stock they listed for each quarter. Looking at the data to see who buy/add/reduce/sold out ...
4
votes
2answers
706 views

What happens to your investment if the broker (which acts as a custodian) goes bankrupt?

For instance, you purchased ETFs using a broker that also acts as a custodian, what will happen to your investment in case the broker / custodian goes bankrupt? Will you lose all your investments? ...
4
votes
2answers
910 views

Non-tax-resident of Canada needs to pay taxes for investment account earnings?

if a person were to be a non-resident of Canada without jobs, a spouse, kids, asset (houses, cars etc.) in Canada, then that person would not be obliged to file a tax report. However, if that person ...
4
votes
1answer
154 views

What is the process through which a cash stock transaction clears?

When selling stocks through a "cash" account through a brokerage, it takes about 3-4 days for the amount to clear and be available for reinvestment. I'm assuming the is a process through which the ...
3
votes
1answer
218 views

Expected total principal + gains from a vanguard life cycle account upon retirement after 33 years?

If one maxes out his Roth IRA starting from age 26, investing only into a vanguard target 2045 (lifecycle) fund, what amount can he expect to withdraw at retirement at age 59? I did a quick check ...
6
votes
2answers
259 views

When is a SEP IRA appropriate, can a Roth IRA suffice for self-employed individuals?

I am a self-employed individual working in the software industry; my current salary is commensurate to the market value of a software developer with 5 years of experience. I have not yet opened up a ...
2
votes
3answers
436 views

Any good software for value investment? [closed]

Is there any good software that helps you analyze a company's performance by digging through their financial statments? I'd like to see a software can automatically collect and parse companies' ...
5
votes
1answer
55 views

Do I pay taxes on investment income in a traditional IRA?

I have a traditional IRA. I converted it to that during a rollover from a prior employer's 401k, because I wanted to do the investing myself. I am not making regular contributions to this IRA. Do I ...
0
votes
1answer
93 views

Should total revenue or profit be proportional to money x investment time

I'm currently supervising a project with investors, and the following problem arrived: - How should I calculate the profits of each investor, i.e. should profit itself (after taxes and other ...
4
votes
2answers
200 views

How to evaluate different account (RRSP, TFSA, …) and investment types (equities, bonds, cash) combinations

If I make $1 tomorrow, I can put that $1 in several accounts: Personal non-registered account Personal RRSP account Personal TFSA account Pay down mortgage Leave in corporation and take out later ...
1
vote
1answer
99 views

Companies with steady and high dividends

In what kind of companies would you invest if you want a steady stream of high dividends? Is there other options than infrastructure companies? How would you compare different types of infrastructure ...
1
vote
4answers
347 views

Whether to prepay mortgage or invest in stocks

If at the end of the year, I have 10k in hand that I want to save/invest and these are my options: 1.Prepay into mortgage. Rate is 2.1% 2.Invest in stocks and I know I can get at least 7 % return. ...
1
vote
3answers
1k views

What are the minimum investment requirements for the S&P500 spyder (NYSE:SPY)?

The current price for the S&P500 SPDR ETF is about USD 150, so I would guess that I need approximately USD 15,000 to purchase the minimum lot of 100 shares, as well as the transaction costs, which ...
2
votes
4answers
5k views

Primerica: All it claims to be? [closed]

I've recently been contacted and had a conversation with a Primerica representative. Their claims of having the absolute best life insurance and getting above average returns on investments sounded ...
0
votes
1answer
597 views

What's the connection between P/E ratio and growth?

Is there an exact formula for that if we can predict the growth accurately? For example: Using discounted cash flow analysis, the impact of earnings growth and inflation can be evaluated. Using ...
1
vote
1answer
1k views

How to protect liquid assets from risk of hyperinflation

I don't want to freeze my cash in any medium that would require me to look/wait for a buyer, wait for the collective investment fund to cash my shares as they take their allowance of time to cash them ...
1
vote
3answers
1k views

Does a bid and ask price exist for indices like the S&P500?

When buying a stock (say Google or Apple) at day 1 you pay the ask price of that day. When selling the stock at day 6, you get the bid price of that day. The return you made is given by [ ...
8
votes
1answer
244 views

Investments: Feds buying more treasury bonds? How does it affect Bonds (going up or down)?

I have set up a 401(k) and I have bonds. When the Federal Reserve buys more treasuries (today's news) what's the effect on bonds? Should I sell my bonds or buy more?
5
votes
4answers
562 views

What are my investment options in real estate?

In a nutshell, I'm about to graduate from college at 21 with a great degree and have a job lined up that pays just short of six figures. Things are looking good. But I don't want to be a software ...
2
votes
1answer
78 views

How do I obtain the foreign equivalent of homeowner's insurance when buying a vacation home in another country?

I am considering purchasing a property in another country as a vacation home. I'll continue to live in the US (nation of citizenship), but may consider using the foreign home as a retirement locale, ...
1
vote
1answer
4k views

what is the meaning of allowing FDI in Insurance and pension funds

I want to know with respect to following news http://www.hindustantimes.com/business-news/WorldEconomy/Pension-insurance-get-FDI-boost/Article1-939798.aspx ...
4
votes
1answer
191 views

Use my savings to pay out my mortgage on my rental apartment?

My rental apartment at this point is making me a 5% ROI per year. My bank is currently charging me a 5.87% Interest rate on the mortgage, which means I am putting from my pocket to keep this apartment ...
3
votes
1answer
442 views

Pay off mortgage or invest in high value saving account

I have a mortgage of 30 yrs amortization and have 290k left on the mortgage. It suddenly hit me that with my bi weekly payment of 620, it would take forever to pay it off. I need some help deciding if ...
1
vote
2answers
212 views

Appropriate asset allocation for an entrepeneur's portfolio?

I'm a recent college grad (computer science). I was lucky enough to get into some good investments in college and now have $450K in liquid assets. I've decided I'm definitely moving to San Francisco. ...
7
votes
4answers
5k views

Are parking spaces and garage boxes a good investment?

Suppose, the following scenario: You have an investment budget available to buy a parking space or garage box. (In Belgium that would be around €25000 ($30K).) currently the saving accounts make ...
6
votes
1answer
906 views

Investment methods for a US non-resident alien, living in the US for the next 2-5 years only

If an employer does not offer a 401k plan, what options do I have to invest in stocks, bonds, ETFs, etc.? Would a Roth account be a viable option considering I will probably be in the US for 2-5 more ...
12
votes
4answers
4k views

How can I determine if my rate of return is “good” for the market I am in?

I am considering a small investment to get started with. What percent rate of return is considered to be good return on investments made in a stock market? I read somewhere that 25-30% is considered ...
4
votes
3answers
245 views

Margin when entered into a derivative contract

From Wikipedia In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their ...