Questions tagged [long-term]

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2
votes
1answer
74 views

Is there a study on profitability of broadly diversified indexed portfolios using dollar-cost averaging?

This topic has been discussed a lot (see e.g. Why isn't everybody rich?, What if You Only Invested at Market Peaks? and Stock market long term risk). There seems to be the conclusion that investing in ...
2
votes
1answer
113 views

Why do companies issue long-term bonds?

The bond is a form of a debt capital, when the company loans money from investors for the needs of the company growth or buying some equipment, estate, e.t.c. And the advantage for the company, ...
0
votes
1answer
103 views

Long-term stock investment spanning multiple generations

Is there any financial product that would allow someone to invest a sum X (once or maybe add funds periodically) in a single stock, an ETF or similar for a minimum period of time, say 100 years? I'm ...
2
votes
3answers
316 views

An investment product for “5 grand for your new niece in 20 years…” situations [closed]

Say your favorite friend or relative has a new child, or perhaps a toddler. You want to give/invest a lump sum $5000 to the youth in question .... so it will only be available in say 20 or 25 years. ...
21
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4answers
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 ...
1
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0answers
152 views

Are CFDs without leverage suitable for long-term investment?

According to Is CFD a viable option for long-term trading?, CFDs are inappropriate for long-term investments because of financing fees and margin calls. This conclusion appears to be true only if the ...
3
votes
3answers
215 views

What is a good starting point for a new investor?

Firstly to clarify, I am not looking for financial advice, I am trying to find out where is a reasonable starting point for someone who has no experience, some cash in an ISA and is risk averse. I've ...
0
votes
1answer
50 views

How can we know the capital appreciation of property in an area? [closed]

Let's say I wanted to buy a property in a certain area, I want to know how much of appreciation I am expecting in the next 5 years. What are methods that one can determine the appreciation?
1
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0answers
36 views

Two year rule for excluding long term capital gains from the sale of my primary residence

I have two homes I live in equally. I travel between the two weekly. I spend 3 nights in one and 4 nights in the other and then flip that. Sometimes I stay a week to ten days in either of them at a ...
0
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8answers
453 views

Timing the market with a twist

It's been said time and time again on this site: You can't time the market, you just can't. I understand the logic behind this, but lately I've been thinking about a somewhat related scenario and I ...
0
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2answers
215 views

Are there better alternatives to the buy and hold method?

When purchasing securities of any sort, there always seems to be two pieces of advice - "buy low and sell high", and "buy and hold." Generally speaking, buy low sell high is incredibly difficult for ...
1
vote
1answer
59 views

Holding period determined by closing date?

I own a stock (purchased on June 3, 2019) that I plan to sell once it becomes a long-term holding. I expected that to happen tomorrow (June 3, 2020) or later, so I was surprised when I looked at my ...
0
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0answers
25 views

Does selling a related option affect the holding period for tax purposes?

Imagine the following scenario: I purchased 3 LEAP call options on XYZ in 2019 with a strike price of $200.00, expiring over a year from purchase in 2021. I also sold 3 call options on XYZ in 2019 ...
1
vote
2answers
142 views

Looking for a single ETF for maximum diversification [closed]

Around 5 years ago I started investing my savings by individually picking stocks with the intention of holding them. So basically Buy & Hold strategy mainly focusing on companies that pay dividend,...
18
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2answers
5k views

Why does the Nikkei 225 appear to be such a bad long-term investment?

For most well-developed countries, indexes of their stock markets tend to grow in the very long term. For example, look up a long-term graph of the FTSE100 or the S&P500. For Japan's Nikkei 225, ...
9
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3answers
2k views

Should I transition to index funds now, or wait?

When I started investing, I made the mistake of trying to pick individual stocks and actively managed funds. I now believe that low-cost, passive total market index funds are the best strategy for me ...
1
vote
2answers
345 views

Shouid I throw away my inkjet printer when its ink runs out & buy another?

This is not the usual question that I see here, but What topics can I ask about here? says: Personal Finance and Money Stack Exchange is for people who want to be financially literate, find ways to ...
0
votes
1answer
122 views

Where is the boundary between short and long term investment?

It's well known that it's impossible to time the market and therefore short term investment is usually not a good idea for occasional investor. At the same time, long term investment is almost always ...
3
votes
1answer
166 views

Is the S&P500's excess return above Treasuries after investing monthly for forty years really 3.6% annualized?

I was playing with Robert Shiller's U.S. Stock Markets 1871-Present and CAPE Ratio dataset to simulate an investor who buys the S&P500 with their monthly savings—equal to that month's CPI—for the ...
0
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1answer
62 views

Long term LEAPs with calls written against them

I bought 3 LEAPs on XYZ at various times in 2019 which all expired in 14-17 months. I intend to sell or donate them once they reach long term status. However, I also wrote 3 CALL options on XYZ that ...
1
vote
1answer
45 views

Will offsetting $x in long-term gains with the exact same $x in short-term losses of the same asset class result in no taxes on the gains?

As the title says, will I have any tax consequences (aside from paperwork) if I offset an equivalent value worth of long-term gains with short-term losses? Assuming no other externalities except an ...
0
votes
0answers
93 views

Invest in stock, ETF etc. for a minimum amount of time?

Is there any financial product that would allow someone to invest a sum X (once or maybe periodically) in a single stock, an ETF or similar for a minimum of say 25, 50 or even 100 years? I'm not ...
0
votes
1answer
209 views

Strangle Vs Long Call LEAPS for a scenario

The stock price of a stock is now $70. The trader is speculating that the stock price can go to $120, but then there will be pull back to $50. It can happen in the next one year. Is it a good ...
1
vote
3answers
127 views

What are some long term and low risk investment options for someone closer to retirement?

I started late. I’m 50 and have about $200k in savings, no debt and a small mortgage with $200k/year in salary. I have $300k in 401k. I’d like to put that $200k somewhere other than the bank. I don't ...
4
votes
5answers
346 views

How risky is it to take a low-interest (small) personal loans to invest?

Assuming that I can take personal loans of about ~10k€ (up to 20k€), how risky is it to invest in 'safe' stocks (e.g. dividend aristocrats)? Assumptions: I am a recent graduate, living in France; 0....
3
votes
2answers
226 views

How to give money to a 10 year old niece on joint business venture?

My niece and I came up with a good idea that I think will make some money. I want to compensate her accordingly for what she has done. I don't want to give her the money now, and I don't want to put ...
0
votes
1answer
117 views

Doesn't current issues - Brexit, trade war, rate reductions, etc. - make it now a good opportunity to invest in the stock market? [closed]

I'm a long term (15y+), mostly passive investor. I find the current situation of the financial market somewhat absurd, especially the fear of a recession that seems a self-fulfilling prophecy. ...
2
votes
1answer
57 views

Understanding Premium increases in Long Term Healthcare policies

Question confined to Long Term Healthcare policies that provide a fixed daily benefit (unrelated to cost of care) over a fixed number of months. In trying to explain why a premium increase (of 50%) ...
5
votes
2answers
432 views

Is there evidence that in the long-term, leveraged ETFs perform poorly?

I came across an interesting question: "Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?" Despite the topic, the answers there actually illustrated the hypothetical risk ...
16
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9answers
3k views

Are ETF trackers fundamentally better than individual stocks?

My situation: I am mostly interested in long-term dividend-paying investments. My philosophy is "only sell if the company becomes fundamentally worse", so I only pick stocks of companies I feel ...
2
votes
1answer
311 views

What are the best investments to increase wealth long-term in France?

TL;DR: Are PEE (company savings), PEA (stocks) and renting the best options in France long-term? I am single, 26, living rent-free and wondering how I should proceed to ensure my financial stability ...
1
vote
1answer
109 views

Australia- Bank account for newborn

I have just acquired a newborn, and would like some advice in setting up a long term financial plan. I don't have a target amount in mind, just to have some money to help her when older (roughly 18-21 ...
2
votes
3answers
175 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, ...
0
votes
1answer
205 views

Definitions of borrowing / lending long-term & short-term

What is short-term & long-term? I read that it is investments of short period (less than one year) and long period respectively, but I cannot realize then what means borrowing/lending short-, long-...
7
votes
4answers
1k views

Are bonds worth the investment since they don't compound?

I was talking with my parents and they told me they have been buying 30 year EE bonds at $100 every 2 months with an interest rate of 4%. Because it is an EE bond, it does not pay a monthly coupon. So ...
2
votes
1answer
103 views

Tender offer - offer price vs. market price

I recently acquired Pacific Biosciences shares, which Illumina has offered to purchase 1.2 billion dollars of, at 8$ per share. After this announcement, the share rose at 7.56$ per share. Is the price ...
2
votes
8answers
316 views

Does ROE project future returns?

Let's say I have $10,000 to invest and I want to invest all of that money in Apple Inc. (AAPL). Just for the sake of argument, looking at Apple's ROE for as far as 2008, I realize it almost never ...
1
vote
2answers
167 views

When should one book profit in investing? [closed]

I would like to know if there is any theory/strategy behind booking profits when it comes to investing? Many times I have observed the stocks rallied 20-40% in the span of 2-4 months. Since I am ...
1
vote
2answers
163 views

Are there any advantages of long term US treasury ETF's / funds?

I'm debating whether to include any long term US treasury bond ETF in my portfolio. Are there any reasons I would include it rather than go for other types such as intermediate term bond ETFs and US ...
-2
votes
1answer
88 views

Buying the whole range of prices of an asset (stock, commodity, etc)

Imagine a scenario when I buy 1 gram of gold when the price hits a round value of $37, $38, $39 (and so on) and sell these grams for $0.50 more (after paying fees) when the prices go up. That is, if ...
23
votes
7answers
6k views

Does dollar-cost averaging just means taking risk later?

I am investing in mutual funds and hence reading and trying to learn about it. I was reading this answer which says lump sum investment is far more efficient than DCA. Well, that does not surprise me....
14
votes
10answers
6k views

Is investing all your savings into a small number of individual stocks risky?

I want to invest 90% of my savings into stock market and split between 4-6 stocks. How risky is this and is it a bad idea. I feel like the stock market goes up over time so unless something like ...
2
votes
0answers
143 views

Reduce risk of the unexpected on a long-term portfolio

I've been thinking recently what can I do to reduce risk on my long-term buy-and-hold portfolio. When I say "risk", I'm talking about rare, unexpected but highly destructive events (think Taleb's ...
1
vote
3answers
159 views

Which asset classes have a “built-in” long-term growth logic?

My understanding is that stock markets are expected to generate returns above inflation in the long run because companies are paying out dividends and because investors demand compensation for ...
0
votes
2answers
142 views

How to spread £30000 investment over a long enough period of time?

I have about £30000 that I could start investing now in a tax efficient way (UK ISA, which means essentially zero tax). Since the markets are at an all-time high right now, I am thinking it would ...
3
votes
1answer
274 views

Capital Gains Tax on sale of land

My mother had in 1995 purchased a plot in Bangalore for Rs 1 lacs. We are looking to sell land for Rs. 30,00,000/-. My mother is approx 55 - 59 years old. Please inform if we need to pay income ...
4
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6answers
591 views

If throwing good money after bad is generally a bad idea, is throwing more money after good Ok?

I have heard that investing more money into an investment which has gone down is generally a bad idea*. "Throwing good money after bad" so to speak. Is investing more money into a stock, you already ...
0
votes
1answer
2k views

Should I sell my stocks to put a down payment on a house before it becomes a long term investment?

everyone! Just as the post describes, I'm caught between 2 decisions. Right now I have 10.6k invested in stocks, which I bought last August, that are worth 19.5k. I planned to use these profits to ...
0
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4answers
529 views

Investing $50k + Real Estate

TL;DR: we have a little over 50k in cash in the bank, my spouse has real estate worth over 100k overseas, no debt or mortgage, and one child (under 1 year). What is the best thing to do with what we ...
1
vote
1answer
77 views

Against what income are broker fees deducted?

Let's say I purchase a share of a stock for $10 and the the broker charges me a $5 commission fee. A year later I purchase a second share for another $10 and the broker charges me again a $5 ...