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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2 answers
929 views

How does SIPC insurance help a small investor with a fixed portfolio that is currently down below original value?

If your original portfolio was worth $500k started a year ago but the same amount of shares holdings is currently only worth $350k, does it mean you are insured at most $350k? Or all of the stock ...
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7 votes
7 answers
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When is it worth taking out a loan for something I could pay in cash?

I'm trying to better understand the time-value of money and how to compare interest rates vs. investment returns. In general, if I can pay for something in cash or short-term credit (paid off monthly),...
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0 votes
1 answer
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Is it possible to hold stock certificates directly without any counterparty risk whatsoever?

I would like to invest in stocks of various companies, however I am deeply concerned with the counter-party risk that the institution which holds the assets on my behalf carries (e.g., a bank or a ...
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5 votes
2 answers
707 views

What does "investing in credit" mean?

I have seen saying such as "invest in credit/be long credit", what does it actually mean? For example, I can buy high yield etf which is essentially a basket of low rated corporate bonds. ...
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1 vote
1 answer
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Are assets held under brokerage at risk of a bank's bankruptcy proceedings?

I know that the FDIC guarantees cash deposits up to a maximum of 250K, but what happens to assets held in a bank's brokerage arm? For instance, if someone has 10,000 shares of MSFT deposited in a bank ...
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-3 votes
3 answers
185 views

Why is YTW (Yield-to-Worst) not available for some callable bonds?

E.g., I am looking at 67765QDG8 ("Oh St Wtr Dev Auth REV 5% 06/01/2023") on Schwab. It is callable but the yield to worse isn't indicated: Bond details: https://i.stack.imgur.com/GNt20.jpg (...
0 votes
2 answers
192 views

Invest on etf when you are young

I started to work a year ago and I'm putting all my savings in one ETF (SCHD), to have a lot of dividends when I'll turn 60 and then retire. Is that a good solution, given the fact that I'm still ...
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-4 votes
1 answer
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Is it financially preferable to purchase Treasury bonds on the primary market or on the secondary market? [duplicate]

Assume a retail investor who: can purchase Treasury bonds on the secondary market through their broker without any fees or markups (e.g., via Charles Schwab). can only submit non-competitive bids ...
-4 votes
1 answer
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Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a later date?

I read: Buying on the secondary market also makes it easier to sell Treasury bonds at a later date. Why does buying Treasury bonds on the secondary market make it easier to sell Treasury bonds at a ...
0 votes
1 answer
59 views

How can one compare the yield of a municipal money fund with the yield of a municipal bond?

Let's consider the following municipal money fund and the following municipal bond: The Schwab Municipal Money Fund (Investor Shares) (SWTXX) discloses a 7-day yield (with waivers) as of 02/28/2023 ...
-3 votes
2 answers
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Are there any downside in investing in a municipal money fund instead of purchasing municipal bonds assuming the money fund's yield > muni bond yield?

I wonder whether there exists any downsides in investing in a municipal money fund instead of purchasing municipal bond, assuming the money fund's yield (tax-free) is higher than the muni bond yield (...
5 votes
2 answers
333 views

How should I invest if I have much disposable income and cash on hand?

I'm a 29-year-old living in Europe and I'm looking for some investment advice. I’m fortunate enough to be earning roughly $28k per month after tax, and I currently have about $400k in cash sitting in ...
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0 votes
1 answer
133 views

What are the downsides, if any, of purchasing bonds on the secondary market instead of the primary market?

Let's ignore the transaction fees from my broker, which tend to be higher for the secondary market. Are there any other downsides of purchasing bonds on the secondary market instead of the primary ...
1 vote
1 answer
58 views

How shall one take into account the accrued interest when purchasing a bond on the secondary market?

For example, I'm looking at the following US Treasury bonds ordered by decreasing yield to maturity (YTM) on Charles Schwab: If I simply want to maximize the returns, assuming no default risk, should ...
1 vote
1 answer
86 views

How to pick an initial investment mix

Assume I have a task at hand to construct an investment portfolio. At first I need to allocate the main parts and choose small/large caps, emerging markets, fixed income etc. I would think there are ...
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2 votes
3 answers
157 views

What is the way to get money managed without hiring a personal financial advisor?

What is the way to get money managed without hiring a personal financial advisor? I do not think I need any personalized approach, I'd rather have a target retirement date and I would like to get ...
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1 vote
2 answers
96 views

How to structure a company/entity that accepts money from friends/family to invest and gain interest/dividends/gains?

I have a few interested friends and family that are looking to invest money. They come with various backgrounds/experiences in investing but given a connection they are willing to try a different ...
1 vote
3 answers
157 views

Investing in basket of stocks in the style of ETF but without re-balancing

Is there any product that offers you to at once buy baskets of stocks according to the market at that moment (or some time in the past) like ETF's do but without any re-balancing after? I think a ...
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15 votes
2 answers
3k views

Empirical evidence on active vs passive investing

Many people believe that passive investment (say buying into an ETF) typically outperforms actively managed funds because the latter induce more fees. Are there any (solid) empirical studies ...
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4 votes
1 answer
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Using a trust vs stocks to purchase land

I plan to purchase land to build a new home within the next year. I am receiving an inheritance in the form of a trust account; the account is in my name and I am also the trustee. I had planned to ...
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0 answers
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Can chinese investor buy stocks in indian stock market?

I have seen some material on the web such as "New Foreign Investment Restrictions Imposed by India",New Foreign Investment Restrictions Imposed by India. In the article:Historically, ...
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0 votes
2 answers
115 views

Best way to invest emergency fund

Asking from the EU. I have emergency fund in a savings account yielding almost nothing. What is the best way to growth this emergency fund without taking too much risks, ie. not investing in stocks. I ...
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1 vote
1 answer
74 views

What is the easiest and cheapest way to invest to HY corp bonds?

I would like to invest in high yield US debt. Picking companies with that rating sounds very involved and I don't have the knowledge for it. Do I buy index or ETF instead? Or what is the easiest and ...
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1 vote
2 answers
136 views

Do I need to, and how do I, pay tax on income from investing? (UK)

I live in the UK and have recently started doing some small investing (using eToro), buying stocks and such, and I was wondering the following. For important context, I am employed at a company where ...
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0 votes
1 answer
137 views

Trying to understand stock share dilution

Say I pay $100,000 for 10% of a new company founded by a entrepreneur, and then the entrepreneur decides to give 20% of the business to person X, for free, as they feel person X can add tremendous ...
0 votes
1 answer
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Cross Brokerage Wash Sale Help Needed

The following trades happened in a month: Day 4: Bought 83 Shares of Company A using Fidelity Day 5: Bought 118 Shares of Company A using E-Trade Day 7: Sold 118 Shares of Company A bought in E-Trade ...
0 votes
0 answers
26 views

Why is EPS looked at much more than FCF/S (Free Cash Flow Per Share)

I understand that eps is an important metric to look at when analyzing a company. (And I wont go into all the details of eps) But at the end of the day, the amount "you" have in "your&...
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2 votes
2 answers
491 views

Formula to calculate time needed for an investment to meet a goal

Given the following. Target (t): 100000 Initial Capital (c): 2000 Monthly Contribution (pmt): 1000 Yearly contribution Growth Rate (k): 3 Rate (r): 5 C/Y (y): 1 (Compounded annually), 12 (Compounded ...
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1 vote
0 answers
47 views

Starting a family fund, owned by a parent company?

first post here. I have been doing some research, but I am still not 100% sure on this. A little background: I live in NY state, have a Bachelors Degree in finance and data analytics. My situation: I ...
3 votes
1 answer
44 views

Selling covered calls when the contract is over 5x the cost of the stock share

I just discovered that a stock I've held onto a few hundred shares of for a while, which is currently trading for about half what I paid (under a dollar a share) has an options contract for a covered ...
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2 votes
0 answers
40 views

Curious observations about efficient frontier calculations

I was using Portfolio Visualizer to try out a few efficient frontier calculations. You can run the same calculation using this link. I find it quite curious: 1) What causes Portfolio 2 to stop at σ ~ ...
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3 votes
1 answer
137 views

Cashing out of mutual funds for a large purchase

It's currently January, and I am looking to make a large purchase some time between April and July. About 60% of the money I want to use for the purchase is currently held in mutual funds in a ...
1 vote
0 answers
68 views

What is the best way to manage my savings and possibly increase my cash flow despite inflation in Egypt?

With the very quickly rising prices in Egypt, What is the best way to manage my savings and possibly increase my cash flow? I’ve also got some ideas, Are they good or not? Ideas that I have: Work as ...
1 vote
2 answers
179 views

If I can continuously get short-term interest free personal loans with no fee, is there a way that I can use this money to generate more money?

I can get a $120 interest-free loan each day, but I need to return the money in 30 days (when my credit card bill is due). There is no fee I need to pay; instead, I can get small cashback from this ...
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9 votes
3 answers
2k views

Second opinion on investments

I'm working with a finance professional to receive guidance on investing and retirement planning for down the road. We like the individual that we are working with but he/she is compensated via sales/...
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7 votes
6 answers
1k views

safe investment for maintaining purchasing power

I have $100,000. I am going to need the money over the next year. I want to protect its purchasing power relative to inflation and also have some reasonable low risk return. What would be a good ...
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2 votes
1 answer
29 views

Calculating XIRR from XIRR of multiple portfolios

I have two portfolios of mutual funds, each showing its respective XIRR. I would wish to know the XIRR of my all portfolios to evaluate how every portfolio or investment strategy is working. Is it ...
0 votes
0 answers
47 views

Ignoring dividends, why do we expect a stock to go up when a company does well? [duplicate]

I understand there are advantages to buying stocks and reaping dividends. Remove dividends from my question as well as owning voting rights in a company. What I don't understand is why we expect a ...
1 vote
5 answers
223 views

What type of shares do you sell - the good ones or bad ones?

This may sound like a n00b question, but I've never seen any guidance on exactly which shares to sell when wanting to convert some of my portfolio into cash to use for spending. There are many online ...
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1 vote
0 answers
57 views

Gnucash trial balance does not balance after entering sale of shares with unrealized gain [closed]

I have been through a few bad transactions turned up by in imbalanced trial balance in Gnucash, but this one stumps me. It seems to be different from the others. I have used the method posted a while ...
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4 votes
1 answer
123 views

How to determine what would be considered a good rate for 4-52 week Treasury bills?

According to the information provided by treasurydirect.gov, currently the rates for any Treasury bill ranging from 4-52 weeks are all above 4% (expressed yearly). Looking at the 10 year/3month ...
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3 votes
1 answer
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Possible discrepancy between TreasuryDirect.gov Treasury Bill Investment Rate and Self-Calculated Interest Rate

I bought a 17 week treasury bill ending in Z93 as shown in the screenshot above. I placed 20,000 and after the discount rate, I paid 19707.13 for the treasury bill. According to the screenshot, the ...
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-1 votes
2 answers
150 views

How do you support a private company?

I often find myself really appreciating a particular company. I want to support them just to make sure they continue, and keep getting better. A small part of me would also like to be able to suggest ...
10 votes
2 answers
3k views

How likely is it that a rental property can have a better ROI than stock market if I have to use a property management company?

I'm in the USA and have a good amount of money available to me and I'm willing to accept high risk when investing, as long as the ROI justifies it. I've toyed with buying a rental property, but I'm ...
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3 votes
0 answers
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Do I have to report my T-Bills on taxes if they haven't yet been matured?

Do I have to report on taxes for 2022 year my 4 week T-bill if I buy them on Dec 6, 2022 (Maturity date Jan 3, 2023)?
-4 votes
2 answers
185 views

How to convince the investors without actually revealing the idea in the first place? [closed]

Let's say I've developed an application and it's all done; nevertheless, it still needs supporting resources and a good marketing and all the other matters that are required for a success; but, I don'...
0 votes
1 answer
102 views

As an investor of a business, how do you prevent the founder from holding back growth? [closed]

If you are an investor who owns 30% of a business and the founder owns 70%, how do you prevent a situation where the founder decides to always take profits and not reinvest them to grow the business? ...
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-5 votes
1 answer
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How to optimize my charitable donations by giving as little as possible to the US government if I already pay no income tax [closed]

I currently pay no income taxes, because I'm intentionally donating just enough to charity each year that after itemizing I have no taxable income. Even with that I have a decent nest egg to invest, ...
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-4 votes
1 answer
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In USA can I donate index funds to a charity? If not what's the lowest effort option to take advantage of security donation over money donations? [closed]

I currently donate way too much money to charity, paying no income tax as a result. The remainder of my money is currently invested in index funds as their expected to average about the same amount ...
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0 votes
1 answer
117 views

What are the advantages of ETF's over mutual funds? [duplicate]

I'm 65, still enjoying full time work, and have around US$900 in cash and mutual funds, following fixed asset allocation. In March 2023 I may start drawing $3000/month in social security and investing ...
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