Hot answers tagged

121

This is pretty simple, and doesn’t require too much math. First, talk of liquidity is not necessary. You are currently paying $3000 extra on your mortgage every month. (Nice!) You certainly would have no trouble whatsoever paying cash in full if that turns out to be the smartest option. Second, it is important to note that this “12-month interest free” ...


61

I think you're overthinking it. They are likely nowhere near you and they don't actually want any puppies or the hassle of coming in person. The likely way it works is: they wire you the money and tell you the shipping company will pick the puppies up. Then they email a bit later and say "oops sorry, shipping company can't do it after all, please send us ...


53

If you have $1 million, it makes no sense to pay a 1% of the $1 million annually for asset management on only $500k (the brokerage account). That is basically paying 2%. I agree with the other answers here, but they seem to assume a 1% fee based on the assets under management, which is not the situation you describe. I would refuse the asset management. ...


42

Nope. Or at least, if it were possible the company offering such a credit card would quickly go out of business. Credit card companies make money off of fees from the merchants the user is buying from and from the users themselves. If they charged no fees to the user on cash advances and, in fact, gave a 3% back on cash advances, then it would be possible ...


36

After doing it myself for 35+ years, I considered turning it all over to an asset management company last year. After meeting with a number of them, I found a knowledgeable financial adviser that I really liked and came close to doing it. The 1.00 to 1.25 pct annual fee troubled me because in this era of deep discount commissions, that's a nice chunk of ...


34

If you did not sign a contract with them, then you do not owe them a return visit, much less a fee. This is one of the downsides of running a business where you offer to do work for a client and tell them that the fee depends on an outcome that you can only reach at the end of the work. If you did sign an agreement or contract, then you need to carefully ...


34

The Fidelity funds have an expense ratio, and while some funds may have little to no profit, having you as a customer lets them try to sell you on their managed account/portfolio and other services. It's possible they don't make much or any money from you at all, but with so many accounts it's fine as long as it averages out. Similar to having a credit ...


29

There is actually a popular Paypal scam that operates differently from Vicky's answer. They will send you ask you for your Paypal email, and send you an email invoice from a site that looks like Paypal, but actually isn't. It's a spoof page. The attack is twofold: First, when you enter your account information to "login" to "Paypal" you give them your ...


28

H&R Block is a huge company, they stand behind their work. As you might expect, they have a "satisfaction guaranteed" policy: "We’re so certain that you’ll have a positive experience that you don’t pay until you’re satisfied." You saw no value in the service regardless of whether or not you had that extra paperwork. If they ever follow up and ask, ...


25

Your county wants the fee to record your newly owned house into the public record. Congratulations on the new wave of junk mail you are going to get =)


25

The main concern I'd have is that something will happen to the account while it's unattended. While you may not have any money in it to risk, you could have a fraudulent check written against it that causes you to incur NSF fees. Your bank also might change its no-fee policy (I assume these are no-fee accounts, or there's an obvious drawback). If it does, ...


23

The risk is that the "free" service may be supporting itself by steering customers to products which part a sales commission, or that are products of the company/bank that employees then, rather than those which are actually best for the customer. If you go in with a skeptical outlook, watching for this sort of conflict of interest, it's possible they ...


22

Since the transaction was not your bank's mistake (but a decision by the Indian government) why should your bank bear the cost of the unsuccessful transaction? Your bank charged a fee for a service that you were willing to pay for. You might be able to negotiate a full or partial refund, and I have done the same with my own bank for fees that I didn't feel ...


18

This is a very opinion based question, but it has a lot of merit. IMHO, you do not need a FA. You guys have done really well up until this point and you are probably astute at picking mutual funds and riding out the inevitable lows. The thing you have to be careful with FAs is that the fees do not stop at 1%. Lets say your FA recommends MDLHX, which ...


17

What did you sign when the account was opened? What did you sign when you left the company, to transfer those responsibilities? Unless the bank has a record of someone else being responsible, they are correct in billing the one who signed their paperwork. Of course this also probably means you still have access to the account, so your ex-partners should be ...


16

Zero. Zero is reasonable. That's what Schwab offers with a low minimum to open the IRA. The fact is, you'll have expenses for the investments, whether a commission on stock purchase or ongoing expense of a fund or ETF. But, in my opinion, .25% is criminal. An S&P fund or ETF will have a sub-.10% expense. To spend .25% before any other fees are added is ...


16

Believe it or not, this is done as a service to you. The reason for this has to do with a fundamental difference between a credit card account and a checking account. With a credit card account, there is no money in the account; every charge is borrowed money. When you get to your credit limit, your credit transactions will start getting declined, but if ...


16

There is no free lunch. "Free" can cost you a small fortune over time. If you wish to sit through a free pitch you may as well go to a time share seminar. Just keep your hands in your pocket and don't sign anything. In the end, you will be best served spending the time it will take to learn to manage your own money. Short term, spend a few hundred ...


15

My insurer will let me suspend my insurance and park the car. It costs about $1/month, but I am still covered if it gets stolen from where it sits. I guess I can call and change it from suspended to not suspended once a month in their system, but I really only do it a couple of times a year for a second car. Call your carrier and see if they have such a ...


15

Unless your agreement says otherwise, the bank is authorized to debit your account for the amount — and then charge you an additional fee for being overdrawn. If you do not add money to the account to bring it into a positive balance, they can pursue you for it just as they could any other debt. They may also choose to close your account instead.


15

The reason they want the transaction to go through is because they make money that way. Remember the overdraft protection might incur a fee. If it does their experience may show them that the fee is a greater source of profit when balanced against the losses incurred because of insufficient funds. Even free overdraft transactions are limited. If they didn't ...


15

From what I have seen, every retail financial advisor who charges as a percentage of wealth is charging what I would consider to be an unreasonable fee and I continue to be amazed how many people pay this. Somehow 1% or more of your assets every year sounds like a reasonable amount while the dollar equivalent would have people running out of their offices. ...


15

There is a third possibility. The cost of which is free. Use a company provided laptop. Why: cost for the employee is zero. The company is responsible for purchase, upkeep, warranty. The company also takes on the risk that if you quit after 6 months they can reuse the computer for another employee, where if the employee purchases a computer then leaves ...


15

If you used an outside broker to find the apartment, meaning a broker not affiliated with the landlord/management company, then they are allowed to list it as a No Fee apartment with a Collect Your Own Fee option (CYOF). So it will be "No Fee" if you use their broker, but using an outside broker means the broker has to collect their fee from you rather than ...


14

A rough estimate of the money you'd need to take a position in a single stock would be: (current share price * number of shares) + broker commission In the case of your Walmart example, the current share price is 76.39, so assuming your commission is $7, and you'd like to buy, say, 3 shares, then it would cost approximately (76.39 * 3) + 7 = $236.17. ...


14

What's "reasonable" is largely dependent on what you're expecting them to do for you. Nerd Wallet has a decent article about the cost structures of various FA arrangements. What you're describing from those 2 FA's you interviewed seems to be option 2, which is essentially an annual retainer. What you paid for originally was option 4 - a flat fee for a plan, ...


14

Beware: two-handed financial advisor Nobody seems to have picked up on this. But the "financial advice fee-based advisor and the "asset management" commission-based advisor are the same guy. This doesn't work. Believe me, I've tried. The interaction went like "I'm looking for a fee-based advisor". "Okay, give me $2000.” Heh, literally. Over the ...


13

If you go a period of time without car insurance, when you want to get it again you are treated as a higher risk insuree. I had that happen too me when I went back to school. I got rid of the car while in school and after finally graduating, getting a job and a new car my insurance rates were quite high despite having a safe driving record. They said it was ...


13

Okay, I think I managed to find the precise answer to this problem! It involves solving a non-linear exponential equation, but I also found a good approximate solution using the truncated Taylor series. See below for a spreadsheet you can use. Finding the future value: Let's start by defining the growth factors per period, for money in the bank and money ...


12

NASDAQ OMX Group owns NASDAQ, a stock exchange. It is a corporation, and is listed on the NASDAQ as NDAQ. It makes money by: They charge each company to list their stock in their market. They charge for transaction that is taking place on their exchange server They may be offering other financial or other listing (or IPO) related services in a ...


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