All Questions

286
votes
15answers
50k views

Best way to start investing, for a young person just starting their career?

I am young, just started my career, and looking to begin investing so I can make my money work for me. I'm still living like I did in college (occasional purchase on myself, but most of it goes into ...
115
votes
8answers
19k views

Oversimplify it for me: the correct order of investing

I have been reading the top posts here, and the recommendations for what to invest in are often similar. What I'd like to know, in as simply of terms as possible, is what the consensus is on priority ...
26
votes
2answers
15k views

How do exchanges match limit orders?

Say a security has been trading at under $20.10, and there are limit orders selling at $20.10 and $20.21. Then Simon issues a limit order to buy at $20.21. According to this explanation, Simon would ...
111
votes
3answers
429k views

Can someone explain a stock's “bid” vs. “ask” price relative to “current” price?

In my online brokerage account, I want to buy a particular stock and I see the following: Bid: 13.20 x200 Ask: 13.27 x1,000 the current stock price is 13.22. Can someone explain what ...
27
votes
4answers
6k views

How much does credit score matter?

The higher your credit score, the better. If you ever had the choice of two different credit scores, you are always better off preferring the higher one. However, while the utility of a higher score ...
46
votes
4answers
5k views

Recent graduate with new job: Choose Roth 401(k), or traditional 401(k)?

I just graduated, and I'm starting a new job soon. My employer has pretty good policy for matching 401(k) contributions, so I want to invest as much as possible, especially during this first year. My ...
15
votes
3answers
2k views

Why would you not want to rollover a previous employer's 401(k) when changing jobs?

Are there any valid reasons to not rollover a former 401(k) when changing jobs? I have several little ones that I never quite got around to rolling together - with an upcoming job change, should they ...
19
votes
2answers
55k views

I gave a scammer my telephone number, address, and name. How bad is it?

Well, I saw a spam email, but I didn't realize that it's really a scam at first. I gave him my telephone number, address, and name. What would he do with them? Could he ruin ALL of my reputation with ...
177
votes
13answers
43k views

Why would a company care about the price of its own shares in the stock market?

After a company has issues shares, why should it care if the value of the shares go up and down? Since the shares are now being traded among the public, if the value goes up or down, that is strictly ...
29
votes
4answers
3k views

Started new job. Rollover previous employer 401k to new 401k, IRA or Roth IRA?

I recently started a new job and have a 401k from my previous employer that I don't know what to do with. Should I roll it into my new employer's 401k, a traditional IRA or a Roth IRA?
50
votes
6answers
7k views

What is the best asset allocation for a retirement portfolio, and why?

Based on financial conversations I've had with trusted family members, I believe that asset allocation is one of the more critical things to "get right" during retirement savings. Based on an ...
112
votes
2answers
629k views

Is it safe to give out one's bank account number?

I'm managing the utility of the house and I'm sharing with another person. He asks me to provide my bank account number, so that he can transfer his money to my account when paying the utility. I ...
32
votes
3answers
7k views

Why does demand for stock rise when a company appears to have high future value?

So a company decides to raise money by selling shares of its stock. The stock is offered at an initial price of their determination. The stock is then traded in a market where forces of supply and ...
47
votes
12answers
9k views

Is it ever a good idea to close credit cards?

I have a bunch of credit cards with no balance, while others have fairly high balances. I'd like to close the 0 balance cards, but I know that will reduce my overall balance and hurt my credit rating, ...
61
votes
3answers
10k views

Saving for retirement: How much is enough?

How to save I'm in my late twenties and am trying to get started off on the right foot saving for retirement. I have learned that retirement savings should usually be placed in retirement accounts in ...
81
votes
8answers
162k views

Is it a scam if the person only wants to deposit into my account, not make a withdrawal?

A man in west coast Austria wants to deposit money into my account. I'm in Alabama. I had to get an online account. I did that, but he says his bank manager needs all this information: DOB ...
20
votes
2answers
12k views

How will going from 75% Credit Utilization to 0% Credit Utilization affect my credit score?

I currently have a 75% credit utilization, which I know is not favorable on about 35,000 revolving credit. I am getting my year end bonus and plan on using that to completely pay off all of my credit ...
249
votes
12answers
111k views

I received $1000 and was asked to send it back. How was this scam meant to work?

Possible Australianism - netbank = a website + app by which an Aussie can do their banking, including transferring money to other people. A while ago, I ended up with $1000 transferred into my ...
36
votes
13answers
35k views

Is there a good rule of thumb for how much I should have set aside as emergency cash?

I'm buying my very first home, and should be receiving the $8,000 first-time home buyers tax credit. A majority of my savings are going to the down-payment of the house, but we still have a pretty ...
47
votes
15answers
11k views

Why would anyone want to pay off their debts in a way other than “highest interest” first?

Looking at the math, it is clear to many people that, given a number of debts at different interest rates, if you are trying to eliminate your debt, you will pay less interest overall if you pay off ...
16
votes
3answers
34k views

If I were to buy something a day before my due date for my credit card bill, would I be charged interest?

First of all, I am a resident of Canada. I am new to credit cards, so I hope my question makes sense. I've had my card for a few months ago and I've always paid the balance in full by the time the ...
9
votes
1answer
1k views

What is the final price if the bid price exceeds the ask price in an order driven market? [duplicate]

Let's assume a very simplified situation. There is only one seller asking for 10$ and there is only one buyer bidding 20$. At what price would the transaction go? Some answers say it won't, because ...
6
votes
1answer
432 views

What is the HSA contribution limit when you are only enrolled in HDHP for part of the year?

What is the HSA contribution cap for a person that is only enrolled in a HDHP for part of the year? For example, consider a single participant that was not previously enrolled in any other health ...
91
votes
11answers
10k views

Where can I park my rainy-day / emergency fund? Savings accounts don't generate much interest

Savings accounts don't seem to generate much interest. What other options do I have for my emergency fund?
43
votes
8answers
10k views

How to organize bank accounts with wife

My wife and I are recently married, both of us are working hard. At the moment we currently have the same system as prior to our marriage. Which simply put is that both of have our own bank accounts ...
32
votes
6answers
4k views

Strategies for putting away money for a child's future (college, etc.)?

So my wife and I will be having our first child at the end of the year, and I'm trying to devise a strategy for things like putting money away for the little person now, while I have the time and ...
15
votes
2answers
27k views

How do I correct an HSA distribution when I was refunded by a health provider?

At work I'm covered by an HDHP with an HSA. My dentist has the policy of estimating the amount that my insurance will cover and asking for the remainder at the time of service. On my most recent ...
17
votes
2answers
2k views

Are multiple hard inquiries for a specific loan type okay?

I'm researching mortgage options for my first home purchase, and I recently had a long call with a loan officer where he encouraged me to get pre-qualified (requiring a hard credit inquiry) as soon as ...
8
votes
1answer
7k views

Withdrawing HSA excess contributions?

I just got married a couple of weeks ago. I have a self-coverage only HDHP through my employer, with an HSA funded by my employer ($3000 per year). My husband has a family-coverage HDHP through his ...
23
votes
5answers
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 ...
63
votes
3answers
14k views

How did this day trader lose so much?

I recently read this article about a day trader that lost $100,000: A trader started a GoFundMe page to pay back $100,000 to E-Trade after a disastrous short Please explain this, because I can not ...
89
votes
10answers
68k views

Scam or Real: A woman from Facebook apparently needs my bank account to send money

A woman on Facebook recently contacted my dad. She asked him to get a bank account so she could send him money, and he would send money to her employees (about 12 people), and she would pay him for ...
44
votes
8answers
19k views

How do credit card companies make profit?

How do credit card companies make profit by giving us credit for 40-50 days (India). I purchase something on my credit card and I pay it to the credit card company after some days. How are they going ...
30
votes
7answers
17k views

Why do people buy stocks that pay no dividend?

Before recently, Apple Inc. did not give dividend to shareholders. This makes me curious why people buy Apple Inc. stocks; while it might be due to the expectation of selling stocks at a higher price,...
30
votes
3answers
2k views

What are the pitfalls of loaning money to friends or family? Is there a right way to do it?

What are the pitfalls of loaning money to friends or family? Is there a right way to do it?
7
votes
1answer
1k views

how do you verify your household budget?

I have a monthly household budget where I track income and expenses broken down by category. It's just an Excel spreadsheet where I enter the amounts from all receipts into the appropriate category. ...
12
votes
3answers
5k views

How to avoid having my father's down payment assistance get taxed as a gift

My father has offered to pay up to $70k towards a down payment on a condo for my wife and me. I understand that gifts of over $13k get taxed pretty heavily. Is there a way to avoid this when it comes ...
6
votes
4answers
3k views

Investing in low cost index fund — does the timing matter?

I'm a young person with some money to start investing. I do believe in the superiority of low cost index fund over actively managed fund. But I still freeze up a bit about the timing of when to start ...
6
votes
1answer
7k views

Received W-2 but was never paid

I just now received a W-2 from a company that I worked for 3 days as a contractor. I had to leave country for 2 months due to a family emergency. Since the employment duration was very short, I was ...
5
votes
4answers
3k views

Achieving ideal credit card utilization above 0%

So everyone is aware of the general rule that you should keep credit card utilization below 30% of your credit limit. It's also a good idea to keep this utilization above 0%. It's very easy to stay ...
148
votes
21answers
49k views

If a stock doesn't pay dividends, then why is the stock worth anything?

I read somewhere that companies are not required to pay dividends to shareholders (this is correct, yes?). If so, then if company A never pays dividends to its shareholders, then what is the point ...
92
votes
7answers
18k views

Why is stock dilution legal?

What I always heard, since I was a child, was that if you own a stock share, you actually own a small share of a company. That seems to be the general consensus of what a stock share is. Well, that ...
30
votes
6answers
122k views

Can I open a US bank account even if I don't live in the country?

I'm Swedish, but living in Switzerland at the moment. Can I open a US bank account? Either when in the US on vacation or through the internet/phone? Lots of situations when I find myself in need of ...
25
votes
5answers
2k views

Where should I park my rainy-day / emergency fund?

This is the US companion of the same question for Canadians Where can I park my rainy-day/ emergency fund?. Basically I want to know what options I have for my emergency fund?
29
votes
2answers
1k views

What are the important differences between mutual funds and Exchange Traded Funds (ETFs)?

I've been considering, but haven't committed myself yet to investing in Exchange Traded Funds (ETFs), but have to admit that I don't yet fully understand the use-case for them. What factors are ...
34
votes
7answers
77k views

Why do banks want you to pay off interest before principal?

When you take out a traditional mortgage the first payment you make to a bank pays off mostly interest and then later payments start paying off principal. What is the reason for this? Is it just a ...
19
votes
2answers
2k views

How would bonds fare if interest rates rose?

The first thing I learned about bonds is that when interest rates rise, the price of existing bonds tends to fall. Unfortunately, I didn't learn much else about bonds. So I have a couple questions ...
23
votes
7answers
13k views

Why are interest rates on saving accounts so low in USA and Europe?

For example, in USA interest rates are 1-2% percents, while in Russia it is normal to have up to 8% anually for US dollars account. Same goes for Euro. For Russian ruble it can be up to 12%, but with ...
14
votes
1answer
3k views

How do I freeze my credit?

If freezing your credit is a better way to protect your identity and the associated credit that goes along with it, how do I freeze my credit?
4
votes
1answer
269 views

Tax on money withdrawn from Roth 401(k) and Roth IRA when living outside the United States and over 59.5-year-old

I am over 59.5 year-old and live in the United States. I contributed to Roth 401(k) as well as Roth IRA. Money withdrawn from Roth 401(k) or Roth IRA is not taxed in the United States as I am over 59....

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