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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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26 votes
3 answers
15k views

Frequency of investments to maximise returns (and minimise fees)

If I have a certain amount of money to invest regularly, how do I calculate the amount to let accumulate in my bank before I make that investment, assuming there is a fee associated with each ...
codebeard's user avatar
  • 589
25 votes
10 answers
12k views

Why doesn't common investment advice include the idea of pulling out of the market during downturns?

The most common advice goes somewhat as follows: Every month, save as much money as possible after paying down your high interest bills Put that money into an index fund Reinvest dividends Enjoy your ...
JonathanReez's user avatar
  • 5,862
25 votes
10 answers
17k 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. ...
401k-newbie's user avatar
25 votes
11 answers
16k views

Should I invest ~18k being 19 years old? [duplicate]

I am currently thinking about investing my money in various things. I have a monthly income of 900€ and only 40€ regular expenses including food, spotify premium and a web domain. From what I can ...
randombutnotsorandum's user avatar
25 votes
3 answers
10k views

Can someone just forcefully take over a public company for its market price?

I am working for a Fortune 500 company. A recent drop in our stock price caused, let's say, some startle. Following that, one of our executives said in a global Q&A session in response to one ...
Zaibis's user avatar
  • 361
25 votes
7 answers
5k views

Better terms to use to understand Puts and Calls for options trading

I've been trying to learn a little about options trading, specially puts and calls. The term options works well for my brain because someone is buying or selling the option to buy or sell something. ...
End Antisemitic Hate's user avatar
25 votes
10 answers
4k views

Why is property investment good if properties de-valuate over time?

So I was reading that investing in property is a safe and solid investment (but low on return). This is based on how the prices rise e.g. a property price in the 1980's vs 1990's vs 2000's vs 2015. To ...
Jim's user avatar
  • 351
25 votes
5 answers
8k views

Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?

I was reading this article about S&P 500 short ETFs: https://www.zacks.com/stock/news/176217/4-ways-to-short-the-sampp-500-with-etfs and I was confused when it said: "investors should note that ...
glen4096's user avatar
  • 353
24 votes
10 answers
11k views

Boutique Investment firm cold called me offering me the chance to purchase stock in a private placement. Legit or scam?

A week ago I got a cold call from someone doing "research about investment experience" which ended with "we might call you if a investment opportunity comes up". A couple of days ago a person from a "...
Karthik T's user avatar
  • 379
24 votes
14 answers
8k views

Why do people always talk about stocks that pay high dividends?

Isn't it true that on the ex-dividend date, the price of the stock goes down roughly the amount of the dividend? That is, what you gain in dividend, you lose in price drop. (Of course, sometimes it ...
mark3292's user avatar
  • 410
24 votes
11 answers
7k views

Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?

The longer the time frame, the larger the risk that any given company is going to go bust. If this is the case, then why is long term stock investing encouraged? Isn't it more risky to invest for the ...
Flux's user avatar
  • 17.1k
24 votes
8 answers
7k views

How could an amateur investor make money off of a market crash?

Assume someone 'knows' that a market crash could occur within the next couple of months, and has no access to 'professional tools'. What methods could this person use to prepare for the crash in such ...
ispiro's user avatar
  • 1,253
24 votes
10 answers
6k views

Can paying down a mortgage be considered an "investment"?

I've read a few articles online about investments, and other articles about paying down home mortgages. One thing that I've noticed is that people who advocate paying down mortgages seem to emphasize ...
Stephen Cleary's user avatar
24 votes
7 answers
8k 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 ...
painter48179's user avatar
  • 2,761
24 votes
6 answers
5k views

Would it make sense to buy a rental property as an LLC and not in my own name?

I'm considering buying a rental property. Would it make sense forming an LLC and purchasing it in the name of my company, rather than owning it directly? Considerations: pros: I don't want my name ...
littleadv's user avatar
  • 178k
23 votes
8 answers
15k views

Car as a good investment

I have been reading a lot and doing as much research as I could and need some help to decide whether I could consider the action of buying a car as an investment. This question comes after I can't ...
Celius Stingher's user avatar
23 votes
10 answers
7k views

How can I determine if my stock picking performance was due to luck or due to skill?

From 2000 to 2020, the S&P 500's compounded annual growth rate (CAGR) is about 6-7% (assuming dividend reinvestment). With a CAGR of 6.5%, every $1 invested in 2000 grows to about $3.50 by 2020. ...
Flux's user avatar
  • 17.1k
23 votes
8 answers
2k views

Does dollar cost averaging really work?

Does dollar cost averaging really work? If I have money available now, why shouldn't I invest it all at once? If the market's going up, wouldn't that be better?
user avatar
23 votes
7 answers
6k views

Is foreign stock considered more risky than local stock and why?

I was told a while ago that foreign stocks are more risky than local stocks. Is this true? What is considered foreign depends where you are (for example, a US based investor would consider US stocks ...
user avatar
23 votes
6 answers
7k views

Is this rental property worth keeping, or should I sell?

I became an accidental landlord, when I bought a house 3 years ago, and did not sell the house I had lived in for 10 years. Here are the facts: House purchased: $200,000 House Mortgage remaining: $...
Derek's user avatar
  • 865
23 votes
5 answers
20k views

Do stock prices drop due to dividends?

From Personal Finance for Dummies, page 209: Dividends Dividends are income paid by investments. Both bond funds and stocks can pay dividends. Bond fund dividends (the interest paid by the ...
lamwaiman1988's user avatar
23 votes
4 answers
3k views

Is home renovation ever a good investment?

For years I was under the impression that renovating a home was an investment. However, when I look up return on investment for typical home renovation projects, it appears that even the most high-...
cabbagecalculator's user avatar
23 votes
5 answers
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. ...
Fixee's user avatar
  • 4,524
23 votes
5 answers
4k views

Book or web site resources for an absolute beginner to learn about stocks and investing? [closed]

I'm completely new to the world of investing and stocks. Knowing that I shouldn't invest or buy stocks until I know it well enough, I was wondering which cheap or affordable resources would be the ...
YOMorales's user avatar
  • 333
22 votes
10 answers
10k 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. ...
Vingtoft's user avatar
  • 1,545
22 votes
10 answers
6k 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 ...
ILikeFood's user avatar
  • 323
22 votes
12 answers
2k 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?
user2722's user avatar
  • 221
22 votes
7 answers
18k views

Is it true that 90% of investors lose their money?

Many investment gurus state that majority of investors fail and then offer a proven "[insert fancy name] investment strategy" that will make you successful. The number usually starts at 90% and often ...
user avatar
22 votes
3 answers
4k views

Is Network Marketing a good place to invest money compared to SIP?

A friend of mine join a network marketing organization by investing 10,000 because his girlfriend is in it. He introduced his handler/manager and he gave a speech about how easy it is to earn by only ...
j4rey's user avatar
  • 341
22 votes
7 answers
5k views

Are Certificates of Deposit worth it compared to investing in the stock market?

Looking at roughly 0.05% for a CD to 5% for a stock portfolio. That's a huge difference in return. For example, with $10K, that's a 4.95 percentage point difference! In general, does a diverse ...
adamaero's user avatar
  • 393
22 votes
7 answers
8k views

Is it wise to invest money in the stock market?

My uncle wants me to invest money in buying shares. I would like to ask these questions to my fellow users: Is it wise to invest money in the stock market? Is there any age limit to start into stock ...
Pandiya Chendur's user avatar
22 votes
10 answers
14k views

Should I sell a 2nd home, or rent it out?

I have recently purchased a home which will presumably be my long-term residence. I have not yet sold my original home, and I am trying to decide whether I should rent it out, or sell it. The 1st ...
Derek's user avatar
  • 865
22 votes
4 answers
6k views

Why would I not buy a bond for less than face value?

The way I understand it is that if you own a bond at maturity you will get the face value of the bond at that time. So if you can purchase a bond at $80 which has a face value of $100 why would I ...
Aequitas's user avatar
  • 716
22 votes
8 answers
3k views

How do I get into investing in stocks?

How do I get into investing in stocks?
Sam's user avatar
  • 221
22 votes
9 answers
7k views

Investing in a leveraged index ETF for retirement. Risky?

Let's say someone has a few thousand saved in an IRA. Right now I have it sitting in Treasurys earning around 3%. Over the past 50 years the S&P has averaged around 11% per year in total returns. ...
user avatar
22 votes
5 answers
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 ...
ovaltein's user avatar
  • 661
21 votes
10 answers
5k views

Can you really always yield profit if you diversify and wait long enough?

It is a common assumption (and, as far as historical stock market data goes, also proven) that the stock market is always growing if you enlarge the time window long enough . In other words: The stock ...
Stefan Woehrer's user avatar
21 votes
4 answers
4k views

Could some of the other funds have done what Reddit did with Gamestop?

In general I understand the mechanism of the Gamestop event (short squeeze), but I am a bit confused as to why it happened only when Reddit investors got involved. I would presume that anybody with ...
NoSenseEtAl's user avatar
21 votes
8 answers
7k views

How to motivate young people to save money [closed]

How do I motivate young people (millennials) who just started earning to save and also the importance of savings? Should I focus on retirement? Wealth creation? Financial independence? Something else?
gopi1410's user avatar
  • 319
21 votes
4 answers
6k views

In terms of safety, what's the next best thing after government bonds?

For long-term investments (10+ years, or for retirement purposes, even 30+ years), what is the closest thing to government bonds that is almost as safe as them but with greater return? The problem ...
Quora Feans's user avatar
  • 1,053
21 votes
8 answers
9k views

Safe-ish investment options for a young, well-compensated couple

I'm definitely late in learning this stuff and have gone through the top questions on this site like I'm 23 and was given $50k. What should I do? Oversimplify it for me: the correct order of ...
Jemmy's user avatar
  • 343
21 votes
2 answers
7k views

How to avoid earning $10/year from equities

I am an American disabled person and my only income is from disability payments, which are well below the poverty level. As such, I do not file any tax returns. Many years ago, I bought about 3 ...
Ginger's user avatar
  • 227
21 votes
4 answers
10k views

Do altcoin trades count as like-kind exchanges? (Deferred capital gains tax)

2018 EDIT: Although this post was inspirational, US Congress addressed this issue in the Tax Reform law of 2017, and any trades after Jan 1st 2018 cannot have this treatment. The few years of ...
CQM's user avatar
  • 20.2k
21 votes
2 answers
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 ...
user606723's user avatar
  • 1,099
21 votes
1 answer
608 views

Is there a benefit to creating a donor advised fund to make charitable donations instead of simply donating to organizations each month?

I'm looking to set up recurring charitable donations to various groups, and I'm considering using a donor-advised fund through Fidelity or Vanguard. General question: Is there a benefit to placing ...
John Bensin's user avatar
21 votes
1 answer
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 ...
James Jones's user avatar
20 votes
5 answers
7k views

Why does Warren Buffett say his fund performance, relatively, is likely to be better in a bear market than in a bull market?

Currently, I am reading his annual letter. In his letter, he always says that his fund performance is likely to be better in a bear market than in a bull market, but I don't know why. Could someone ...
CSnerd's user avatar
  • 423
20 votes
4 answers
7k views

Are annuities the best way of generating monthly income?

What is the most effective, least costly, way of generating monthly income from an investment of $500,000 or more? Are annuities too costly?
Steve Eicholtz's user avatar
20 votes
9 answers
7k views

Best ways to invest for a planned house purchase in 1 year?

I've just sold my house after relocating and got £45,000. I am now looking for a house to buy. In the area where I live now houses are around £500,000, so I will need at least £50,000 for the deposit, ...
algiogia's user avatar
  • 822
20 votes
4 answers
4k views

Can you explain why it's better to invest now rather than waiting for the market to dip?

I'm interested in investing in domestic (e.g. S&P 500) and international index funds. My investing time period is 30-40 years. This is irrational, but I'm worried about investing now because the ...
user3314418's user avatar

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