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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.

7 votes

I can completely pay off my mortgage early. Should I pay it off or invest?

If your house was paid off, would you be comfortable borrowing from the equity to invest? This is essentially the same question. Also, why not ask the opposite? How much more should you be borrowin …
jkuz's user avatar
  • 3,990
3 votes

Pay up mortgage upfront or keep paying installment with capital invested?

Your calculations are showing you two sides of the same coin. Calculation A is showing you negative cash flow because the mortgage is essentially requiring you to pay into the equity of your home. Th …
jkuz's user avatar
  • 3,990
18 votes

How does gambling (like buying a lottery ticket) differ from investing?

Investing has no such implication, and as such it is the broader term. Investing is to put something (money) to work to return a profit. Some forms of gambling could fall under this umbrella. … Not all gambling falls under investing. You can gamble for pleasure. …
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6 votes

How can I invest in an index fund but screen out (remove) certain categories of socially irr...

I think the answer to your question is no, in theory. By screening out funds, you must actively manage the investments. To then try to ensure you track the index closely enough, you have to do further …
jkuz's user avatar
  • 3,990
1 vote

Why does short selling require borrowing?

You can't make money on the way down if it was your money that bought the shares when the market was up. When you sell short, borrowing lets you tap into the value without paying for it. That way, w …
jkuz's user avatar
  • 3,990
5 votes

"Rule of 72" For Higher Multiples?

The simple answer for the so-called 'Rule of X' would be found by: X = ln(multiple of growth) * 100 In your case: X = ln(4) * 100 ≈ 139 Update: If you want an approximation closer to the nomina …
jkuz's user avatar
  • 3,990
2 votes

How should we organize our finances to effectively plan and prepare for an retirement in nex...

This will free up cash to start investing for retirement or future business too. Buy more rental in the future with cash only. … Investing driven by fear will set you up for failure. Spend less than you make. Be patient. Be generous. Cheers! …
jkuz's user avatar
  • 3,990
3 votes
Accepted

When is it worth looking at charitable remainder trusts?

A few things to consider - A non-fixed percentage will affect your income tax deduction. This is because you will be generally getting more money back, making it a smaller donation. The assets are o …
jkuz's user avatar
  • 3,990
3 votes

Withdraw IRA Early to Buy a House

No way. A home costs much more to maintain than the monthly payment. You will have no cash margin, and one costly event will put you at risk of missing payments or going further into debt. Pay off …
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  • 3,990
1 vote

Paying taxes on dividends even though your capital gains were $0?

How and why is this considered fair (and/or legal)? Let's use an analogy. You buy a rental property. This is our (not exact) equivalent of owning a stock. You will receive an income stream fr …
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