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

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192 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
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2answers
732 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
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3answers
532 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
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3answers
298 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
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1answer
227 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
113 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
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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
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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 ...
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1answer
149 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
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2answers
670 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
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2answers
845 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
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1answer
149 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
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1answer
211 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
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2answers
255 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
386 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
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1answer
88 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
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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 ...
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1answer
87 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 ...
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4answers
344 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. ...
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3answers
957 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
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1answer
540 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 ...
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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 ...
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3answers
975 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 [ ...
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1answer
242 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
549 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
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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
190 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
432 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 ...
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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. ...
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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
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1answer
854 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
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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
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3answers
243 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 ...
0
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1answer
4k views

What doe IPO and FPO mean? Are they related to Equity services?

Are the terms 'IPO' and 'FPO' related to equity? If so, how? Are they related to any kind of investments?
0
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1answer
149 views

How to understand expenses matter relative to investment type for mutual funds?

From Wikipedia Expenses matter relative to investment type There are three broad investment categories for mutual funds (equity, bond, and money market - in declining order of historical ...
5
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1answer
339 views

What is Chit funds. And how to invest in it?

I have heard a lot about this northern part of India, but no idea about this type of investment please share your views about this type of investment.
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1answer
248 views

Governments Debt/GDP and Budget (deficit/surplus), how to read the figures to decide what bonds to buy?

After searching for hours on Google I found these two great tables (theya are also sortable): list of Government Debt to GDP ratio list of Government budget (I took hours to find this because I ...
8
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1answer
2k views

I am a small retail investor. Can I invest in the Facebook IPO at the IPO price? [duplicate]

Possible Duplicate: How can I purchase Skype stock during the IPO? I've heard that only big institutional investors will be able to purchase Facebook shares at the Facebook IPO price. A ...
1
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1answer
79 views

How do the returns generated via Equity/Debt investment differ from the returns from a Mutual Fund based on Equity/Debt?

My point is as both involve equities/debts(direct investment) in the main role, how is it that Equity/Debt is considered as a high returns/high risk venture and Mutual Fund a low risk/ low return ...
3
votes
4answers
263 views

Economics of buy-to-let (investment) flats

I'm trying to figure out whether it is a good business to buy a flat and rent it out. These are the numbers I have so far: Costs Property: 150,000 Downpayment (30%) : 45,000 Interest ...
6
votes
2answers
109 views

How are active ETFs possible?

I'm having trouble wrapping my head around how it's possible to have these new active ETFs. How do they operate, realistically? I mean, the point of ETFs (as a structure) is that arbitrageurs can ...
4
votes
1answer
96 views

Foreign tax credit carryover w/o having filed previously?

I owned VGTSX for years now but only in year 2011 was it a requirement for me to file taxes. Can I claim foreign tax credit carryovers for past years even though I didn't file taxes during those ...
5
votes
3answers
321 views

Withdrawing qualified HSA expenses many years later, to earn interest?

Say I have $2000 in my HSA account and have a $1000 medical bill in 2012. If I were to pay the $1000 bill out of pocket and let that $1k left earn interest in my HSA for a significant amount of time ...
4
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3answers
444 views

Does this plan make any sense for early 20s investments?

I am currently a sophomore in college and will earn about $4000 from a part-time job in the spring. I was hoping to open up a mutual fund via a Roth IRA from Fidelity after I get all my money since ...
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3answers
7k views

Different ways of looking at P/E Ratio vs EPS

Would it be valid to assume that a stock with a low P/E ratio and also very high EPS is, generally speaking, a better purchase than a stock with that same P/E but lower EPS? My reasoning for this is ...
0
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2answers
585 views

Can capital gains be used to fund an IRA with tax advantages?

This may be a naive question, but to me this seems like it should work. Say I earn $1,000 this year in capital gains from selling some stock that appreciated. I think this is taxed at the capital ...
0
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2answers
161 views

How do I prepare for the possible inflation of the euro?

Lately there's been a lot of fear being spread about the health of the Euro. I am not panicking, but I'm a bit worried about my savings. So here's my question. What is the best way to prepare for the ...