Victor
  • Member for 10 years
  • Last seen this week
  • Sydney, Australia
Do I pay a zero % loan before another to clear both loans faster?
55 votes

By paying the $11,000 into the 2.54% loan you will save $23.30 in interest every month. By paying the $11,000 into the 3.625% loan you will save $33.20 in interest every month. If your objective is ...

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Tenant wants to pay rent with EFT
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51 votes

Yes, it is safe, we have been doing it for years. We prefer our tenants to make their rent payments in this manner. In fact, we prefer that they set up an automatic payment for the rent, either ...

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Can a company stop paying dividends?
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33 votes

Yes. Companies increase, decrease, start paying and stop paying dividends when they think it appropriate. If a company has been going through some problems and makes a loss, or even a large decrease ...

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If stock price drops by the amount of dividend paid, what is the use of a dividend
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26 votes

There are many reasons for buying stock for dividends. You are right in the sense that in theory a stock's price will go down in value by the amount of the dividend. As the amount of dividend was ...

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Why do people buy stocks that pay no dividend?
26 votes

Instead of giving part of their profits back as dividends, management puts it back into the company so the company can grow and produce higher profits. When these companies do well, there is high ...

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What is the difference between hedging and diversification? How does each reduce risk?
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24 votes

Hedging - You have an investment and are worried that the price might drop in the near future. You don't want to sell as this will realise a capital gain for which you may have to pay capital gains ...

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Will there always be somebody selling/buying in every stock?
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23 votes

If the stock has low liquidity, yes there could be times when there are no buyers or sellers at a specific price, so if you put a limit order to buy or sell at a price with no other corresponding ...

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Should I invest on margin?
21 votes

Well one thing you seemed to not have considered, basing your returns purely on past average returns over 30 years, is that if there is a downturn within your 5 years or so of investing, you may not ...

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In Australia, how to battle credit card debt?
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20 votes

To confirm: you say you have credit card debt of $18,000 with min. repayment of $466.06, plus on top of this you are also paying off a car loan and another personal loan. From my calculations if your ...

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Why are businesses allowed to deduct expenses from their income, while individuals generally cannot?
18 votes

The answer is simple. You can generally claim a deduction for an expense if that expense was used to derive an income. Most business expenses are used to derive profits and income, most individual ...

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Why does the share price tend to fall if a company's profits decrease, yet remain positive?
18 votes

It has got to do with market perceptions and expectation and the perceived future prospects of the company. Usually the expectation of a company's results are already priced into the share price, so ...

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Why is property investment good if properties de-valuate over time?
17 votes

When you buy a property the house or the building goes down in value every year (it gets depreciated) similar to when you drive a new car out of the lot. However, it is the land that increases in ...

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If I have $1000 to invest in penny stocks online, should I diversify risk and invest in many of them or should I invest in just in one?
17 votes

If you want to put in $1000 into penny stocks, I wouldn't be calling that investing but more like speculation or gambling. You might have better odds at a casino. If you don't have much money at the ...

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How does dividend payout happen?
15 votes

You will need to buy a stock before the ex-dividend date to receive the dividends. You can sell a stock on the ex-dividend date or after and you will receive the dividends. So if the ex-dividend date ...

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Can you short a stock before the ex-div. date to make a profit?
14 votes

When you short a stock and the stock goes ex-div. you have to pay out an amount equal to the dividend. So in your example, GG would short the stock at $10.00, buy back at $9.00 and be charged $1.00 ...

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What is the benefit of investing in retirement plan versus investing directly in stocks yourself?
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12 votes

Because retirement account usually are tax effective vehicles - meaning you will pay less tax on any profits from your investments in a retirement account than you would outside. For example, in my ...

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Why ever use a market order?
12 votes

The purpose of a market order is to guarantee that your order gets filled. If you try to place a limit order at the bid or ask, by the time you enter your order the price might have moved and you ...

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As a private landlord, how can I choose a good tenant?
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12 votes

There are a lot of things you can do to get a better tenant. This answer relates specifically for Sydney Australia. Regarding the Application Form: Name & contact details Employment details ...

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Should I use regular or adjusted close for backtesting?
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12 votes

You would have to compare your backtesting to what you will be doing in real trading, and try to have the backtesting as close to your real trading as possible. Note: you may never get the backtesting ...

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How to profit off a stock price falling
11 votes

You can short sell shares, buy put options or write call options as noted above, but make sure you have stop loss orders in place if you are going long or short. Another method you could use to also ...

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What is the advantage to me in not paying off my debts?
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11 votes

Unless you can have your savings earning more than the transfer fees, you should just pay the credit cards off before the interest free period ends. Also, there is the difficulty in finding new cards ...

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I carelessly invested in a stock on a spike near the peak price. How can I salvage my investment?
11 votes

You should be worried. You have made the mistake of entering an investment on the recommendation of family/friend. The last think you should do is make another mistake of just leaving it and hoping it ...

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Why could rental costs for apartments/houses rise while buying prices can go up and down?
11 votes

I am from Australia, so my answer is based on my experience over here, however it should be similar for the USA. Generally, what determines both the price of houses/apartments and the rents for them ...

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Is it a good idea to get an principal and interest loan for an investment property?
10 votes

Talk about coincidence, we just recieved letters from our bank saying that our interest only loans will be going up by 0.46% and if we want to keep our lower rate we will need to change early to P&...

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Formula for how to distribute a loan payment between multiple loans such that the remaining principal accrues the least interest?
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10 votes

I would pay the minimum amounts on all loans then pay off the $5,500 @ 7.25% (highest interest rate), then pay any remainder on the $2,000 @ 5.5%. Even though (1) and (3) are at the same rate, I ...

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Rent or own, given these circumstances
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10 votes

In most cases my preference would be to buy. However, if you intend to sell after just one year I would maybe lean towards renting. You haven't included buying and selling cost into your equation nor ...

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What is the meaning of this information in my broker account?
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9 votes

It means that you received a dividend from Apple with a Record date of Feb. 2nd 2015, a Payment Date of Feb. 12 2015, and Non-Resident Tax withheld of $267.90. Apple paid a $0.47 per share cash ...

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One of my stocks dropped 40% in 2 days, how should I mentally approach this?
9 votes

From some of your previous questions it seems like you trade quite often, so I am assuming you are not a "Buy and Hold" person. If that is the case, then have you got a written Trading Plan? ...

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Chart analysis: What does this mean: 200 period moving average?
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9 votes

200 period moving average means the average over the last 200 units the chart is in. So if you are looking at a weekly chart the period is weeks, if you are looking at a daily chart the period is ...

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How do brokers make money from margin accounts?
9 votes

They will make money from brokerage as usual and also from the interest they charge you for lending you the money for you to buy your shares on margin. In other words you will be paying interest on ...

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