New answers tagged investing
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I also had the same experince with GB Stone like Wellington. I did not pay for conversion of the last preferred shares and never got money back from previous conversion of preferred shares I payed for. They invested the whole money in new (preferred) shares without asking me, altough I told them I wanted the invested money back. Any news about GB Stone?
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TSP was created to be a retirement plan for Federal government workers, which is why it only allows participation by Federal government workers (and dependents and survivors). Yes, it is very like a 401k; it was designed to be modelled almost exactly on the already-existing 401k program, except that 401k's can only be sponsored by a private entity which the ...
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In addition to the great point from the answers above, If you are living in India create a PPF (Public Provident Fund) account. According to Wikipedia,
The Public Provident Fund is a savings-cum-tax-saving instrument in
India, introduced by the National Savings Institute of the Ministry
of Finance in 1968
The benefits include
The amount you deposit ...
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In exchange for each share of Celgene, you received 1 share of BMY, $50 and 1 share of BMY.RT. The latter is a security that will be pay out IF (and only if) three Celgene drugs currently in trials are approved by the FDA by certain dates ending 12/31/21. If all three are approved, it pays out $9. Anything less and it's worth will be zero.
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I am trying to calculate what my investment pot will be in 25 years, adjusting for inflation.
You should really be looking at estimated future returns, not historical returns.
The stock return will consist of three components:
Inflation. Stocks are inherently inflation-protected, so whatever inflation there will be will be part of your return.
Economic ...
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The S&P 500 does not include dividends. You should check the S&P 500 Total Return Index.
From Wikipedia:
The average annual total return of the index, including dividends, since inception in 1926 has been 9.8%
This would give you roughly 5.2% annual real return, looking much better.
However, this is in USD. Apparently, one GPB was worth ...
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The answer to this question depends on many variables, including stock and bond returns, your investment timeline, your tax rate, your future contributions, your withdrawal strategy, etc. So I'm using the following assumptions:
stock return: 2% qualified dividends + 8% appreciation
bond return: 3% non-qualified dividends + 0% appreciation
investment ...
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Since the S&P 500 ETF will probably have more gains, it would benefit more from being in the tax advantaged account. Personally I prefer to have all of my accounts balanced. But based on the parameters of your question, it would most likely be optimal to have the entire Roth IRA invested in S&P 500 ETF and the entire taxable brokerage account ...
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The thing you're wanting to avoid, which you called "interest rate risk", has the formal name of duration risk. It's actually calculated as (effective duration * interest rate volatility), but it's named after the duration rather than the interest rate.
That also tells you how to minimize it. Choose a fund with an extremely low effective duration. The ...
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Investing in stocks is different to setting up and running a company, and founding a company is different to being employed by a startup
The "common sense" advice you have listed is relevant for situations where you are investing in the equity markets, or are looking for a job and the companies you are applying to are offering equity as compensation.
You ...
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Markets are very efficient for goods and services that are already being sold at scale, but quite inefficient for ones that haven't been thought up or implemented well yet.
Starting a successful company is virtually always taking advantage of the latter. The average startup typically fails because they try to do the former.
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Try a "money market" , they pay from day in to day out. For 2019 , Vanguards' averaged 2.14 % ; the rate may change every day. I am unaware of any minimums at Vanguard but there are many" money market" funds and I am sure they have various rules.
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In order to hedge against a potential increase in property prices, I would suggest investing in an ETF which tracks a property index. For example "The FTSE EPRA/NAREIT UK Index offers exposure to UK listed real estate companies and Real Estate Investment Trusts (REITS)." BlackRock has one, and I'm sure others do too.
Then if the UK market suddenly increases ...
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Cash ISAs are usually poor investments, their rates are often low and their only benefit is the interest is untaxed. And, for most people, the personal savings allowance 1 makes it moot anyway.
For just a year, an old fashioned savings account would suit. Generally, internet only banks offer better rates than the well known high street names. So, go with ...
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You say that you're planning on buying a house. You don't seem to have any specific need to buy a house, so you can afford to take some risk. You should focus on bonds, but you can have some of your money in stocks. Even if there is a dip in the stock market, it's likely to be accompanied by a dip in the real estate market, so you'll need less to buy the ...
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From an investor's point-of-view the question is, does the view of the UK housing market indicate any macro investment opportunities ?
For instance if the GBP is expected to decline then a sell position in the GBP/USD would produce about 0.75% rollover interest on the leveraged amount. Then the 45000 number easily takes a 225000 forex position which ...
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First thing first - In a short span of 1 year you can not expect high returns, it is much better if you are just able to bypass inflation in short period.
As per your comment, we can plan something better for various time slices.
You have $2000 per month to invest. Divide it in three chunks (depends on your risk bearing capacity, I am just putting an ...
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You should be putting it in a cashlike, very low volatility investment, preferably an insured one like a CD or municipal bonds.
It might seem clever to put it in the stock market and get a 10% bump, but you could just as easily take a -20% beating. That is called volatility and it's the thing to avoid.
answered Jan 11 at 7:20
Harper - Reinstate Monica
36.9k6 gold badges57 silver badges120 bronze badges
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In as short a time as a year, the best way to invest money is to simply save it. "A penny saved is a penny earned".
Simply not eating out all the time will save you thousands of dollars a year, which is more than most investments will earn, unless you have a large amount in an investment and have some really good stock brokers working for you. For instance, ...
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Open an account at a discount brokerage and invest in an ultra-short term bond fund -- either a mutual fund or an ETF. The better ones have been yielding as much as 3.8% for the past year, and any downside going forward should be very brief.
For example, the bobble in equity markets at the end of 2018, from which some equity funds took a year or more to ...
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They're Young and Foolish
Lots of start ups are run by people straight out of college. They are young and invincible, and are confident that their project is going to be the next unicorn.
Mostly they are wrong, but they weren't going to make huge amounts of money in the first 2-3 years of their working careers anyway, so they chalk it up as experience and ...
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There are no safe one-year investments that pay a high rate of return. If they existed, then everybody would be putting all their money into them.
If you want to be confident that the money will still be there in a year's time, just put it into the best bank or building society account you can find. The interest over one year will be negligible anyway.
...
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Imagine you own 20% of a 5-acre corn field (1 net acre). The majority owner decides to buy the adjacent 5 acres and does so by selling equity (of which you buy none). You now own 10% of a 10-acre corn field, so do you now own a smaller amount?
You own a smaller percentage of a bigger pie - your investment should have roughly the same value.
Of course, ...
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The standard answer is that if you need the money soon (less than three or so years), you should not be putting it in risky investments and just park the money in your savings account or similar "safe" holdings. Since you plan to buy in a year, you probably should leave it in your bank account. Sure, you won't gain much interest, but you also sound like you ...
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When you state net worth of $1 Million, it sounds like the limit set in the US by the Securities and Exchange Commission for a Accredited Investor which is set at $1M net worth excluding primary residence for Natural Persons.
Assuming the Investment Club qualifies by not being formed just to purchase a specific security, such a club would need assets of at ...
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For short term saving (3-5 years), you want something low-risk. Try a online savings account with a bank like HSBC Direct, Ally, or Simple. They will give you a higher APY than most traditional banks (1.6-2%) and you can pull money out at any time. If you have a more solid time-frame, a CD could also be a good choice.
An index mutual fund or ETF can make ...
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Stock dilution is the decrease in existing shareholders’ ownership percentage of a company as a result of the company issuing new equity. New equity increases the total shares outstanding which have a dilutive effect on the ownership percentage of existing shareholders.
This increase in the number of shares outstanding can result from a primary market ...
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I have also thought about putting into gold or silver something like that.
Precious metals are for two things:
preparing for SHTF TEOTWAWKI WROL (Disaster scenarios, for those not wishing to click away), and
speculation (which as you know is risky).
they money may sit until I need a car (3 - 5 years)
CDs at an online bank (current average rate for 12 ...
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Probably not initially, but it will depend on how desperate they are later. Consider the probable reason for the $1M requirement. They want low-hassle investors who will follow through.
They don't want someone who initially thinks that they can invest $100k, but later decide they really can't afford to. They also want someone with reserves, who could ...
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You brought up the often-repeated mantra of,
equity, which is effectively "a lottery ticket"
While that does illustrate the difference between equity and cold, hard, real cash in the form of a salary, equity is arguably only a lottery ticket if you have no direct knowledge of, or connection to, the success of the company. Of course, there's always at ...
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There are a few common errors you are making in your statement. Before I try to address what I see as problems with your line of thinking, take my overall response to the headline of your question as asked:
Why is it ever a good idea to found a company? To make money, to pursue a hobby, or both.
As to issues with your line of reasoning, consider:
(1) A '...
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It's common knowledge that starting a company is risky, but high-risk, high-reward ventures are not inherently bad choices. Do you keep your money in a hole in the ground? It'll always be there when you need it, but you get nothing back. Do you keep it in a bank? It's almost certain to be there when you need it, but you won't get much return. Do you keep it ...
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Would you buy a lottery ticket if the average payout was greater than the price?
Yes, many startups fail*. This doesn't mean that on average, startups lose money. Otherwise food banks would be full of starving venture capitalists.
* I may be looking at different years than you, but the figure I found is 56% make it to their 5th year.
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For the reasons above, why does anybody ever start a company?
For the same reason that Bill Gates and Paul Allen started a company. For the same reason that Steve Jobs and Steve Wozniak started a company. Ditto Bill Hewlett and Dave Packard, and Michael Dell, Ted Waitt & Mike Hammond, Emeril Lagasse, and thousands of small business across the world (...
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In addition to what yoozer8 wrote, you can't "put back" contributions (not gains, but contributions) that you withdrew.
For example, if you contribute $6000 to a Roth every year, and need to withdraw $10000 for some purpose or another, the money is gone (from your IRA; you still have the $10000, but can't later1 reinvest it back in the Roth). Whereas if ...
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The three key differences between a Roth IRA and taxable investment account are:
Tax on gains
Access to gains
Eligibility to contribute
With a Roth IRA, you don't pay any income or capital gains tax on the earnings in the account, but you can't touch the gains until you are at least 59 1/2 years old (if you do, you will pay taxes, in addition to a penalty)....
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A donation/contribution to a trust is not considered a gift as long as the beneficiary has a future interest in the gift.
If you are referring to a payable on death account than it is the same as your parents leaving you the monies when they die--except it avoids probate. Note that your parents have a large estate exemption so this would only be relevant ...
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This is correct except for one detail. The price already has gone down or has risen. It's not a future effect, it's a past effect.
If something happened that made people expect the price to rise in the future, then people would immediately buy that stock to benefit from the future rise. This pushes the price up until you can no longer reasonably expect any ...
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In an app such as cash app. I can invest at minimum $1.00 into any of the companies made available. Example: Tesla is trading at around $430 per share right now. I bought $30 of a share in $5 increments ( I was new at this and added $5 more every few days until I had $30) which is roughly %0.073 of the share. Letting it grow, I've gained $2.32. Not much ...
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When this type of question pops up, it's usually this time of the quarter :->)
SPY went x-dividend on 12/20
XSP.TO went ex-dividend for 37+ cents on 12/30
While the correlation appears to have broken down, when you add the dividend back in, the correlation is still there. To see it for yourself, figure out the percentage change in the SPY from 12/27 to ...
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XSP began trading ex-dividend of $0.37082 per share on December 30, which is expected to cause the per-unit price to drop by that amount.
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Stocks were never the best choice for tuition that is needed in a couple of years. Many parents save for their child's education though a 529 plan. In most of these plans the default setting is to become more conservative as the first year of college approaches. By the time high school ends they are in 100% fixed income investments.
The reason they want to ...
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Based on your comment that this will be needed soon for tuition, removing the money from the stock market was a Good Idea.
I'd put the money in a combination of high-yield savings account and high-yield 12 month CD(s) from an online bank. They're just as safe as regular banks, but pay interest rates that almost keep up with inflation.
Two which I would ...
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While it's true that some companies may cut their dividend if a bad year pushes them over the edge, overall dividend yield will increase in a bad year because of share price decline.
Here's the yield for the SPY for the past 15 years. As you can see, its yield dramatically increased in 2008 when the market dropped ~39%.
Date Yield
Dec 31, ...
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