8
If you have bonds in your portfolio and a proper process for periodically rebalancing to keep the proportion invested in bonds constant, then that process will automatically mean that you invest during a dip in the market. If equities fall, but the less volatile and to a degree counter-cyclical bonds do not, then the proportion of your portfolio invested in ...
8
That calculator presumes that the stock market will increase every month. It doesn't.
I would still have to take into consideration on how much of % the loan would be and subtract it. But you haven't. A 6% rate on personal loans isn't out of the question, and it might be higher.
Instead of hypothetical growth numbers, use real statistics for the past two ...
5
The company is earning more money, not the people who own the stocks.
The people who own the stock OWN THE COMPANY. What you think stocks are? All the shares together are 100% of the ownership.
So, that is your misunderstanding.
4
You could do what littleadv said above but there are also other methods to protect yourself which could be more beneficial.
Firstly, addressing you point about sort of a gut feeling or reading articles about predicting if a company is going to beat earnings or not, earnings is simply an estimate made by some "educated" analysts. Anyone who can make more ...
4
Your question about when it makes sense to stop paying in depends on three things:
The possible growth rates of your investments.
The costs of going over the LTA.
The benefits when under the LTA, which translate into lost opportunity to benefit if you undershoot.
It's really hard to make a good guess about growth rates, so I won't try, and instead focus ...
4
What is the purpose of bonds within an investment portfolio?
https://www.goodfinancialcents.com/bonds-vs-stocks
"Investment diversification: Because bonds pay a fixed rate of interest and guarantee principal payment at the end of the term, they’re generally considered safer than stocks, typically held as a diversification to stocks in a well-balanced ...
3
Dividends are often depicted as “free money”. When received, they provide investment return and a miraculous source of successful investing. This is not the case.
There are two aspects to dividends:
what happens on the corporate level
what happens in your brokerage account on the ex-dividend date
On the ex-div date, the stock exchanges reduce share ...
3
Your bank account
Credit Cards
Personal Loans
Friends
Family
3
The short answer is that corrections occur when there is an aggregate of much more selling volume than buying volume.
What happened in December? Many investors, traders and institutions looked at all of the news out there and they ran for the door. Much of it was already known. Much of the reaction was the opposite of FOMO (Fear Of Missing Out). There ...
3
This is anecdotal.
I invested $2,000 in Prosper loans in 2008. My annualized returns were -0.39%. Of 40 loans I made, 13 were charged off, and 27 were repaid in full. I deposited $2,000 and withdrew $2,012.16, including a $25 promotional signup bonus. I never had any problems with withdrawals.
3
Obviously I'm assuming you don't have any medium- or high-interest debt or you would already have paid it off.
The only tax-advantaged accounts you mention are IRAs. What about a 401(k) or similar, or a health savings account? Does your employer offer such plans? Sometimes they offer free money (match).
The contribution limits on IRAs alone often don't ...
2
Simple mathsy answer:
You say you’re past half way to the lifetime allowance which is £1055K – let’s assume that means you’ve got £550K, and you make 12% a year – not bad!
Years = LOG(lifetimeAllowance/currentValue, 1 + yearlyIncreasePercentage/100)
= LOG(1055000/550000, 1.12)
= 5.74 years until you pass £1055000 without contributing a penny.
If you ...
2
From what I understand those 2 are separate funds that just happen to track the same equity. Both the total shares available for both as well as total AUM(assets under management) are different.
Keeping that in mind you can see why shares of each have different pricing as they represent different notional ownership of the net asset value (NAV) of each ETF.
...
2
TLDNR links. Here is how the orders work:
The purpose of a Stop order is to buy or sell at the market if the trigger price is hit or penetrated. There's no guarantee of a specific execution price - it may execute significantly away from the stop price.
A Sell Stop order is always placed below the current market price and is typically used to limit a ...
2
Bonds are usefull because you get more income than for shorter instruments and have a guaranteed repayment.
You know how they say to keep 5 years reserve upon retirement so you do not have to sell stocks during a market crash? Bonds can be staggered to give you yearly payback (just buy bonds with 1,2,3,4,5 years expiration) and give a better return than ...
2
Putting funds into a 2025 target date fund (TDF) is certainly better than leaving it in your bank account, so moving it there today wouldn't be silly at all. However, since you'd be using a taxable account, there are probably better products designed specifically for taxable accounts than TDFs. But again, something is better nothing, so don't spend too much ...
2
Your super fund should be able to provide the mix of investments and their weightings for the investment option you have chosen. It should be readily available on their website but may be hard to find depending on the fund. If you can't find this information you should call your fund and ask where to find it or for a copy to be sent to you.
Here is an ...
2
Quite simply, any marketable item (including a company or share of stock in a company) is worth only what people are willing to pay for it.
That's why there is a stock market. Literally every trade made is because there is a seller with an "ask" price, i.e. "I want to sell my share of XYZ for $100", and someone is willing to buy that share for that amount. ...
1
The way to reduce diversifiable risk is to, well, diversify. So intuitively, ETF3 would reduce that risk since it's more diversified than ETF2, which has holdings in the same sector. The way to measure that is to look at the correlation of returns between the pairs of funds (there are online tools that will do this for you).
Note that the ratios you ...
1
You provided insufficient information. Were you long or short the stock as well? Was this a put or a call? Indicating the commission charged would also be helpful.
GE closed at $10.48 on Friday. If this was a $10 put, it expired worthless. If it was a standard $10 call, it expired in-the-money and would have been auto-exercised by the Option Clearing ...
1
Your questions are quite broad and there aren't really specific answers to them.
Your question #1 has no general answer. It just depends on what kinds of investments are in the trust.
As for your question #2, it's not really possible to guarantee both intact principal and unvarying revenue.
That can be approximated by setting some level of expected ...
1
Bonds are less risky, so having them in your portfolio is a "hedge" against market downturns. However, that's largely psychological; if you really want to lower your risk, you should just keep some of your portfolio as cash.
Another justification for them is that they are considered a separate "asset class", which means, among other things, that the ...
1
Looking at the question and some of the comments, I think you would need to look into backtesting. Because what you describe is a set algorithm (a program can run this portfolio), you can easily backtest everything if you have the right datasets. Assuming you can do basic programming/can learn quickly, I would recommend Quantopian which is generally used to ...
1
The oposite end of the blue line to the current possition of the arrow would represent the price at which the stock openned at for that day. So the total length of the plue line represents how far the current price is away from the open.
And if the arrow is to the left side of the blue line it means the current price is below the openning price. Conversly ...
1
There are 2 things:
Laws in general.
The terms of the convertible note. It would be a very stupid lawyer writing up the note (or checking it from the other side) that would ignore a trivial fact like this, so if laws do not cover it, then - well - obviously the lawyers better have prepared for this.
And as we do not have the text of the note - yeah, no ...
1
I think that Investopedia is the most comprehensive source of investment information with which you can build a broad base of basic financial literacy. Beyond that, you're going to have to delve into more detailed books.
1
There are some promising investments in this field but most of them are absolute scam, trying to exploit the positive attitude toward this field from uneducated and not sophisticated investors. Every time you make a decision to invest your money in a specific stock, you should make a clear and very detailed due diligence on the company you want to invest. If ...
1
It really depends on who you broker with and how they operate. Consider that you probably use Robinhood, E-trade, or TD Ameritrade because you account value is not that high, I would venture out and say they would use your cash first.
Generally speaking, it is better for them to use up your cash first because it means that they don't have to waste their ...
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