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Questions tagged [investing]

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

3
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3answers
38 views

Is there a formula or calculating the maximum monthly withdrawal from an investment so that it lasts a specific period of time?

Is there a formula that allows me to calculate the following:- I have an investment balance of P growing at annual rate of r, what is the monthly withdrawal so that at the end of T years the balance ...
0
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0answers
13 views

Is there a “delay” in a short interest fund?

Interest fund with long durations tend to respond in the opposite direction of the market in general. Would it be correct to assume that short duration(less then 1 year contracts) interest funds do ...
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0answers
29 views

Optimisation of a Trading Strategy (Walk Forward Analysis)

To the pro traders: What do you do when the past two years of a WFA (10-15 year period) had an increasing loss (2017 = -4%, 2018 = -8%) while the other years were profitable? Do you modify the ...
2
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1answer
26 views

Why can't some funds be invested as a “US Persons” (= US fiscal resident, green card holder, or US citizen) from a French bank account?

I read that some funds cannot be invested as a "US Persons" (= US fiscal resident, green holder, or US citizen) from a French bank account. For example, I saw this warning in one plan d'épargne en ...
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1answer
95 views

What is the optimal amount in savings at which to buy an apartment complex?

I'm 23 and want to buy an apartment complex. I don't have alot of savings (~20k) as I've been paying for tuition, family expenses, etc this year. However, I have an okay income from working two jobs. ...
23
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5answers
6k views

Invest $50,000 in cash or borrow $100,000 and get a mortgage?

I have $50,000 saved and I'm paying $760 on rent right now. All my relatives are telling me to get a mortgage so I don't "throw money away on rent", but I just don't like the idea of getting in debt ...
1
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1answer
55 views

How to efficiently invest in ETFs with a monthly contribution?

I am confused when it comes to ETFs. Many state that their main advantage is that they are low cost. I understand that they are traded as stocks. I want to invest my money in 3 index ETFs (USA, ...
0
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1answer
102 views

Why do most HSA administrators require accountholders to have a minimum amount in their HSA before they can open up an investment account?

I read on an article at Nerdwallet titled 5 Health Savings Account Rules You Need to Know (mirror): Irvine warns that the majority of HSA administrators require the accountholder to have a steep ...
0
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2answers
65 views

How exactly does a broad-market ETF work?

So it's obvious that a broad-market ETF attempts to imitate the performance of the whole stock market, but what I still don't understand is how it works and exactly what you are investing in when you ...
0
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0answers
27 views

ETF: ITOT ticker cost calculation?

Forbes says: "The iShares fund from BlackRock ticker ITOT will over the course of a decade chip only $6 out of a $10,000 investment." How is this $6 calculated? The web page for the fund says: "...
1
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1answer
50 views

The value/price of an ETF

From my understanding an ETF has the advantages of a managed fund with the advantages of a stock. Advantages of a managed fund: a) An ETF is a collection of stocks that are packaged into a single ...
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4answers
267 views

Where should a young person living in Switzerland invest their money?

I am an 18 years old student living in Switzerland, doing my apprenticeship as a software developer. In the last few years I saved around 10'000 francs and instead of buying a car I thought to invest ...
0
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2answers
68 views

Calculating the ETF cost?

Let's say I invest 1000 USD in an ETF. Over the 10 year period, the shares had 5% annualized gain, meaning the value of my investment would be 1630 USD. However, I didn't take into account ETF fees. ...
0
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3answers
70 views

European citizen investing in MSCI USA index ETF: to hedge or not to hedge?

Located in Europe, I am thinking about a long-term (~20 yrs) investment into an ETF that follows MSCI USA Index. I am stuck: should I pick an euro hedged fund or a normal one. My salary is in Euros, ...
1
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1answer
90 views

A lot of bids and asks, but no volume

I'm looking at an option and it has a lot of bids and asks, but zero volume. Does this mean that the market can't decided on the price of the premium because the stock itself is moving? Just curious ...
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10answers
17k views

Why would anyone buy U.S. Treasury Bills?

From the Treasury Direct website, I saw this Bills: U.S. Treasury Bills are a type of short-term security of one year or less, usually issued at a discount. The discount is the amount the security ...
2
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2answers
245 views

Why would I buy bonds? [duplicate]

Say I want to buy a bond that matures in 10 years, and that pays out 5% of once a year, so it has 10 payouts remaining. Say the value is 100$. Say the bond is being sold for 140$ today. I would be ...
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2answers
59 views

To what extent can dividends be seen as an informed and careful conclusion about the company's long term ability to at least maintain it?

John Lintner found that management aimed to have a stable payout ratio target but, in fact, it is often the dividend itself that is kept stable and that reverting a dividend hike in the future would ...
2
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2answers
74 views

Investing in a target date fund for retirement [closed]

Any suggestions about investing in a Vanguard target date fund 2045 for a Roth IRA? I'm 38 years old. Is 90/10 stocks/bonds too heavy for my age?
2
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2answers
259 views

why don't banks invest money in mutual funds or shares instead of giving personal loans

Banks offer personal loan at interest rate of 11 %, but why don't they invest those money in mutual funds or shares and earn more ?
4
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4answers
2k views

Do pension pots get interest? [closed]

Pension pot is the money, the employee and sometimes the employer and the government pay that gets accumulated into pension fund. But my question is, that this pension fund is basically a bank ...
43
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8answers
15k views

Is this projected return from Wealthify too low?

I am really new to investing and I am so confused. Books, blogs and conferences suggest that investing is the way to multiply wealth. I do not have enough start up money to play with mutual funds, ...
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0answers
31 views

Do mutual fund return figures include expenses/fees? [duplicate]

I am trying to figure out an optimal mutual fund investment for retirement on Fidelity.com. Mutual funds typically have 1/3/5/10 year return figures. Do these figures include expenses and fees? If ...
2
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3answers
151 views

What is the “definition” of a “diversified” portfolio and why a diversified portfolio is better?

A short version of my question - What is the "true" definition of a diversified portfolio and why is it better? A long version of my question - Regarding portfolio diversification, people ...
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5answers
161 views

Why isn't the retained earnings of a public company always distributed back to the shareholders?

Shareholders own a public company, so why shouldn't all of a company's income be distributed back to them? Why are dividends (if any) just a small fraction of a company's retained earnings?
3
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1answer
48 views

What are the ways to price a holding company?

I would like to know how people value holding companies. I guess the most famous one is Berkshire ($BRK.A - $BRK.B). And others exist. These holdings usually have a lot of exposure to realestate, PE ...
4
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3answers
234 views

How can I get my mother to get to minimally understand the advantages of index investing?

She has a very long investing horizon (several decades according to actuarial life table), so index investing would be perfect for her. I'd like her to read "Little Book of Common Sense Investing" and ...
2
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4answers
122 views

How to know if negative cash flow rental property is a good investment?

I am completely new to the concept of investments and investment property. I've done research on rental properties and negative cash flow but am unclear how to actually measure if something is a good ...
0
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2answers
90 views

How to calculate return on investment when the asset increased in value?

A house bought some years ago for 100K earns 5K each year. That's rent minus costs of ownership (maintenance, electricity, local taxes). Today that house would easily sell for 150K. The rent and ...
3
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3answers
295 views

Educating others that they may be investing in a scam

I’m not sure if this should be here or at interpersonal skills but there is currently a company in the Philippines asking people to invest and to me, in my opinion it smells like a Ponzi scheme. ...
0
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1answer
71 views

Insurance premiums as an investment opportunity

Here is the scenario: Let's say you are an insurance company and you pool premiums from policyholders in pools of different risk (low, medium, high). Now you want to propose to other people to stake ...
2
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2answers
110 views

Should Pay Loan Early or Invest?

Loan: 150,000, interest rate: 1.62%, period: 30 years, so monthly payment is about 700. Investable amount per month: 7000. (Don't need to take the returns from the investments to pay the loan.) I ...
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0answers
41 views

Risk to buy Equity in a new company which is not listing in stock market? [closed]

I want to invest in a company registered in India but I don't want to be involved in the management or operations. I just want my dividend, if any. What will happen if the company commits fraud or ...
2
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1answer
79 views

Financial benefits of installing EV charger for landlords and employers

This question is based on the location: Vermont, USA. A lot of information regarding federal tax benefits are available online for Electric or Hybrid car owners. However, I am interested to know if ...
0
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1answer
37 views

How sensitive are heavily traded options (SPY, AAPL) to brief price changes?

For example if SPY reached a day high of +2% but only for minutes, would call prices rise accordingly such that one could profit from the STC sale of an option of the same strike price?
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3answers
589 views

Is not investing in stock/shares a huge mistake?

I simply cannot understand how investing in stock/shares works. So I am too scared to invest/buy any of these, although I do have Roth and 401(k) plan through my employment. By not investing in the ...
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0answers
22 views

Can a US based NRI avail to PMS(Portfolio management service) in India

I am an NRI with H1B visa in US and I file my taxes here in US. Can I invest in Indian stock market via PMS(Portfolio management service) in India? Will this be considered as PFIC?
0
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1answer
62 views

Deciding to pay off loans vs. invest [duplicate]

I have $23k in student loans and pay $400/mo on them. I have about $2500 left over after my bills each month. I have a 401k and am already contributing the maximum on it. Does it make sense to spend ...
0
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2answers
36 views

Currency Future Contract's future fixed price?

Future and options are basically the same with the other using premium and w/o obligation. When trading FX options, you set/buy a strike price. Hence an agreement/was made on a fixed price. In the ...
3
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3answers
138 views

Why Present Value and not Future Value?

This is a question in an online finance lesson, and I know what they want for the answer. But I'm not at all a novice at financial matters, so in my mind, I would do this differently. The question ...
-1
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1answer
73 views

Which investment in the world provides the highest return [closed]

There are several investment options available that include gold, real estate, T-bills, stocks, bonds etc. I have heard that the most return that you can get is stocks of small enterprises. Can anyone ...
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0answers
22 views

How to calculate the expected standard deviation of a weighted composite portfolio?

So my questions asks me to determine the expected standard deviation for a weighted composite portfolio, but I have no idea what equation to begin with. I have answered A, but B I am lost. Here is ...
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0answers
17 views

How do I choose between a sponsored or unsponsored ADR?

I understand the difference between the two, but in which cases would I choose sponsored over unsponsored, and vice versa? I guess a pros/cons analysis is what I'm looking for here. For example, ...
2
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0answers
82 views

Is it legal to open account and invest in my born country if I am currently working in Japan?

I have my identity and I am able to open investment account (for ETF, stocks and FX) in Hong Kong. I now hold a working visa and work in Japan. The tax rate is high in Japan and my Japanese is ...
1
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1answer
84 views

Investing platform options without fixed residency

Background: My wife and I are in our high-twenties currently living in UK. We don't have a mortgage, we're renting our flat. The only debt we have is the standard UK student loans, which is deducted ...
4
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2answers
223 views

Investing in early 20's suggestions?

Thanks in advance for any advice. My questions: How much should I have in the bank as back up? Savings? What percentage do people usually save? What’s a good investment strategy in my early 20's ...
0
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1answer
32 views

Considerations re: LLC on SSDI

I am disabled and receive SSDI. I will have some money from inheritance and insurance settlement from an injury. I'd like to put the money into an LLC (for shelter, exclusion and self directed ...
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0answers
44 views

Is a bank account or branch manager able to give higher interest rates on CDs to preferred clients? [duplicate]

Can an account manager or branch manager of your bank give you higher interest rates on savings or CDs (Certificates of Deposit) if you are a preferred client? For instance, if a long time client who ...
0
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1answer
78 views

Why do I have to pay cash to my broker to pay estimated taxes on vesting employer-granted stock?

I'm about to receive some restricted stock through my employer. These are stock units, not stock options, so I can't defer their vesting. When they vest, my broker is requiring that I wire them cash ...
2
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1answer
39 views

Understanding the FTSE Actuaries Share Indices on the Financial Times Paper UK

I am trying to understand how to read the Financial Times FTSE Actuaries Share Indices UK. In two of the columns it says Cover and Exadj. Cover is between Dividend Yield % and P/E ratio. Exadj is ...