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.

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5
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1answer
2k views

What risks am I taking if my well-off close friend is asking to use my credit to flip a property?

I have very good credit that I've worked hard to obtain. My friend has flipped a few properties and made some good money doing so. He wants to pay me a fee along with any taxes I'll endure if I put a ...
5
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1answer
440 views

How to determine desired/required value with “value averaging”?

As opposed to dollar cost averaging (DCA), value averaging (as described in this eHow article) is a technique where the investor determines the value the investment should have after a given time ...
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4answers
1k views

Senior in College, need advice on my investing plan

I am a rising senior in college and saved up $3,000 dollars from my summer internship. I have done a lot of research online about investment options for my age and I decided that opening a Roth IRA ...
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2answers
165 views

How can I determine my basis for a gift of mutual funds?

My parents, saving for college many (20+?) years ago, purchased some Evergreen mutual funds for each of their children. I believe the accounts were established in the children's names. Thanks to some ...
2
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8answers
10k views

Help me understand the oddity of percentage gains and losses?

If you start with $100K, and you get a 50% gain, it's $150K. Then, you get a 50% loss: now it's $75K. Reverse the order (i.e. lose 50%, gain 50%), it's the same thing (a 25% loss). So, 50% up then ...
2
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2answers
730 views

How are various types of income taxed differently in the USA?

From Dilip's reply when you make a withdrawal from your Traditional IRA, no matter which of your various IRA accounts you take the money from, part of the money is deemed to be taken from the ...
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1answer
195 views

Where to start with personal finance in Canada?

This will obviously differ by situation, and might be overly broad, and very closely related to Where to start with personal finance?. But how about some Canada specific answers? Say you've reached ...
14
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1answer
527 views

WSJ article about CFDs - am I missing something?

In this WSJ article, it comments Traders held a net $22.6 billion in bets that the dollar will appreciate, a gain of 31% in net wagers over the previous week and the largest such position since ...
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2answers
1k views

How can I tell what is “real” Motley Fool advice? [duplicate]

I clicked on a link and was taken to a video, which troubled me a bit and is a bit different from what I expect of the Motley Fool, of which people have presented as offering advice like "Live below ...
9
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4answers
778 views

Is it a good investment strategy to go long on “boring” companies (AT&T for example) and keep them around just because of their dividends?

Is it a good investment strategy to go long on "boring" companies (AT&T for example) and keep them around just because of their dividends or would it be better to trade more frequently companies ...
8
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2answers
365 views

How to get started with options investing?

I have never taken the time to learn about or trade options, and I'd like to give it a shot. IMO, I am a reasonably sophisticated investor; I've been investing in one form or another since I was 11, ...
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3answers
3k views

CD interest rate US vs abroad, is there a catch?

I was in Ukraine and ran into a few banks that offer anywhere from 5% to 10% interest rate on investment per annum. For example, Erste Bank is willing to pay 5,75% on 12 months deposit. I have few ...
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6answers
3k views

How can I invest my $100?

Is it feasible to invest a very small amount of money? If it is, how can I attain it?
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3answers
2k views

What are dividends, when are they paid, and how do they affect my position?

New to investing... Some stocks pay dividends but I'm not sure how they might affect my portfolio or in which measure this is important when evaluating a stock. I also don't know how to figure out if ...
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4answers
2k views

How to rebalance a portfolio without moving money into losing investments

I've read a number of conflicting opinions on whether portfolio rebalancing is a good idea. The question of whether rebalancing is a good idea has been addressed in some questions here, too, such as ...
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2answers
3k views

How much can I withdraw from Betterment and be considered long-term investment?

I'm investing $100 every month using Betterment or in some index fund. Assuming I make $10/month from the investment... If I withdraw $600 after 6 months, will I have to pay taxes on that? If I ...
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4answers
458 views

How Do Fund Fees Turn Up Exactly?

Regarding the overhead or expense fees associated with holding shares in a mutual fund, how do the fees affect what I'm holding? Is it taken out of the share price? Is it taken out of the (fractional)...
4
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4answers
796 views

What is the average long-term annualized return on investments?

I've heard the number 7% thrown around a bunch of times, but I am struggling to find reputable data to back it up. All I found was a quote from Warren Buffet that I couldn't find an original source ...
4
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1answer
199 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
5k views

Overnight charges for brokers holding stocks?

I'm trying to learn about stock markets. I eventually want to invest a small amount over a long period. Yet, I notice on a lot of broker sites that they tend to charge an overnight fee for any stocks ...
2
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2answers
275 views

Sell your home and invest in growth stock mutual fund

I purchased a home and I made an agreement with a guy who is living in that home and paying me monthly rent. Since I live with my brother I don't have to live in my purchased home. The rent I'm ...
2
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1answer
154 views

How do I find the average annual inflation between two dates?

I'm trying to figure out the average inflation between 1926 and 2015 so I can subtract it from the cumulative annual growth rate of average annual bond return during that period (5.4% according to ...
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2answers
220 views

How are withdrawals from traditional IRA taxed?

For a traditional IRA, any contribution is deductible for federal tax. When a withdrawal from the account, how is it taxed? Are different parts of a withdrawal taxed differently: the original ...
2
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1answer
149 views

Does GOP tax reform bill require selling earliest shares first?

An early draft of the GOP tax reform bill contained this provision, as reported by taxfoundation.org: The Senate draft of the Tax Cuts and Jobs Act would require sellers of stock in any one company ...
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1answer
149 views

How should a portfolio be managed in preparation for a financial crisis?

There is a more general question on preparation here, I am focused purely on investment. There is the conventional wisdom of don't try to time the market, and while I can't find the quote at the ...
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4answers
2k views

Invest money and get 120% back - a site says

Recently I've been coming across many on-line resources that propose people to pay them in order to to get seemingly gigantic profits. This is what the 'About us' page of such sites normally says: ...
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1answer
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Can somebody explain “leveraged debt investment positions” and “exposures” in this context for me, please?

"The strong bond performance has led to a surge in leveraged debt investment positions that are ultimately funded by the banks' interbank exposures and WMPs. But nobody really knows how levered these ...
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2answers
94 views

How do I equally disburse appreciating assets over a fixed timeframe?

First, I apologize if the title is confusing or if there is a better wording. I am unfamiliar with many finance terms, so there may be something accurately describes my problem. I am trying to ...
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12answers
1k views

What should I be aware of as a young investor?

I'm 19 years old and am keen on investing in blue-chip companies. What should I take note of?
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5answers
9k views

What is a good asset allocation for a 25 year old?

I have a mid-sized portfolio (under $100K). And am currently in 100% stocks. I have seen some advice being given that states 80/20 bonds will yield similar returns as 100% stocks with less volatility.
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7answers
2k views

Why is the dominant investing advice for individuals to use mutual funds, exchanged traded funds (ETFs), etc

The dominant advice on this site (including that which I give to novices) regarding investing is to only invest in fund vehicles (mutual funds, ETFs, etc), rather than in individual stocks. Why is ...
25
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5answers
2k views

Where should my money go next: savings, investments, retirement, or my mortgage?

I am a little unsure where to put my money at this point in my life. I have followed all the basic advice on what to do with your money and now I am at a point where I just don't know what to do next....
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7answers
7k views

Should I stop contributing to retirement accounts, and instead focus on expanding our real estate investments?

My wife and I are in our later 30s and make about $100,000 per year from salary. We also net about $40,000 from rental properties that we have purchased over the past several years. Our essential ...
57
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11answers
7k views

Should you always max out contributions to your 401k?

I am a year out of college, and therefore, i don't have any real retirement/investment plans kicked off. I was having a discussion with my boss, and he was making a few claims I would like to get ...
25
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10answers
15k views

How can I protect my 401(k) when the stock market is performing badly?

I just opened my 401(k) at the beginning of 2017. In 2017 it did great because of the bull market, but since 2018 I've lost about $1,000. All of my contributions this year have been a complete waste. ...
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5answers
2k views

What retirement accounts are available without age based withdrawal penalties?

If you retire early and have money invested in a Roth IRA or a traditional 401k, that money can't be touched without penalty until you're 55/59. (Let's ignore Roth contributions that can technically ...
23
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10answers
5k views

Student loan payments and opportunity costs

I'm about to graduate college and enter a very well-paid job in an inexpensive area. I am confident that I could repay my student loans much sooner than ten years, but I am wondering whether this is ...
22
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10answers
9k views

What's the best way to make money from a market correction?

Every now and then the market undergoes a correction. I have saved up some money (around $80,000) and I'm currently investigating strategies for using market corrections as an investment opportunity. ...
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8answers
19k views

Aging parents with no investments

My aging parents (75/77years) own a house on 35+ acres (14+ hectares) in rural NE USA (no mortgage). They have: No investments (other than the obvious property) Savings of maybe $30k in a bank ...
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2answers
3k views

Where can I put savings for my kid that I literally cannot withdraw from?

I currently have a second savings account where I'm saving money for my child's future - most likely it will be used for their college and/or wedding. I've heard horror stories of parents stealing ...
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10answers
2k views

Why do some people say a house “not an investment”?

I have heard a few people say that "a house is not an investment" as an argument to stay in an apartment. (To me, this seems like a stupid reason, but that is not my question.) Of course, this is ...
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3answers
4k views

What is most time-efficient way to track portfolio asset allocation?

I've recently decided I wanted to track my investments over time so that I could accurately determine really cool financial things like: My actual asset allocation My actual rate of return over time ...
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3answers
72k views

Is the “Bank on Yourself” a legitimate investment strategy, or a scam?

There seem to be a lot of advertisements by "Bank on Yourself", promising to show how you can invest in a certain type of life insurance policy. Is this really a legitimate investment strategy, or ...
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2answers
11k views

Why did I lose 2 cents more than the difference in the stock prices on my Robinhood trade?

I don't understand how stocks work but I'm hoping someone can explain it to me given my short example here. So on Monday, I purchased 2 stocks priced at $2.50 each, using an app on iOS called ...
21
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1answer
3k views

How to invest after 401k and Roth IRA are maxed?

I'm in my 20's. I'm a big saver and I think I've covered the basics, including: Paying off all high interest (>3%) debt. Getting the full company match out of my 401k. Maxing out my Roth IRA for the ...
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7answers
7k views

Is there a general guideline for what percentage of a portfolio should be in gold?

I have some gold (GLD), but not much - a little over 1% of my net worth, and about 2% of my non-retirement investments. I'd like to increase this position as an inflation hedge and to have something ...
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10answers
3k views

Ideal investments for a recent college grad with very high risk tolerance?

I recently graduated college and got a steady job making decent money as a software engineer/programmer. I make more than enough money to sustain myself and save up money, while still having money ...
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3answers
5k views

What is it called when you sell and reinvest to pay lower taxes?

Every year or so, I sell my investments and then immediately buy them again. I do this because I'm in a low enough tax bracket that I don't have to pay capital gains on my long term investments, so I'...
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5answers
3k views

I have $100,000 in play money… what to do?

I feel a bit self-conscious with the title above given that web-searches along these lines turn up mostly people who are struggling to get rid of debt or build a modest amount of financial security. ...
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2answers
1k views

Using a Health Savings Account (HSA) as an investment vehicle: What are the drawbacks?

For next year, my company has started offering an HDHP with an HSA. With this, they will contribute $500 per year flat, and 50% matching up to $500 (where they will match $250; up to $750 total). I ...