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da50130b296b031ce13e4dd9f7023a96
|
Peer to Peer Lending Small notes Vs Large Notes
|
[
{
"docid": "0dd467f067a26cb6d8483c39f8ba980e",
"text": "\"I started with lending club about a year ago. I love it. It has been insightful. Off topic, but I am in a loan to a guy who make 120K a year and is regularly late and has a pretty high interest rate. Crazy. You gain some economies of scale by going with a bigger note. I have $100 notes that I get hit for 2 or 3 cents for a fee, where $25 notes are always a penny. However, I don't think that should be your deciding factor. I scale my note purchases based on how much I like the status of the borrower. For example, I did $100 (which is currently my max) for a guy with a reasonable loan amount 16K, a stable work history (15+ years), a great credit history, and a great interest rate (16.9%). If one of those things were a bit out of \"\"whack\"\". I might go $50, two $25. I prefer 36 month notes, really 5 years to get out of debt? It is unlikely to happen IMHO. Keep in mind that if you invest $100 in a loan, then you get one $100 note. You can't break them up into 4 $25 notes. For that reason, if you are likely to want to sell the note prematurely, keep it at $25. The market is greater. I've had a lot of success using the trading account, buying further discounted notes for people who want out of lending club, or get spooked by a couple of late payments and a change in billing date. Another advantage of using the trading account is you start earning interest day 1. I've had new notes take a couple of weeks to go through. To summarize: There are some other things, but that is the main stuff I look at.\"",
"title": ""
}
] |
[
{
"docid": "651f98220897b2a34830fade5ce229dc",
"text": "\"Probably the most significant difference is the Damocles Sword hanging over your head, the Margin Call. In a nutshell, the lender (your broker) is going to require you to have a certain amount of assets in your account relative to your outstanding loan balance. The minimum ratio of liquid funds in the account to the loan is regulated in the US at 50% for the initial margin and 25% for maintenance margins. So here's where it gets sticky. If this ratio gets on the wrong side of the limits, the broker will force you to either add more assets/cash to your account t or immediately liquidate some of your holdings to remedy the situation. Assuming you don't have any/enough cash to fix the problem it can effectively force you to sell while your investments are in the tank and lock in a big loss. In fact, most margin agreements give the brokerage the right to sell your investments without your express consent in these situations. In this situation you might not even have the chance to pick which stock they sell. Source: Investopedia article, \"\"The Dreaded Margin Call\"\" Here's an example from the article: Let's say you purchase $20,000 worth of securities by borrowing $10,000 from your brokerage and paying $10,000 yourself. If the market value of the securities drops to $15,000, the equity in your account falls to $5,000 ($15,000 - $10,000 = $5,000). Assuming a maintenance requirement of 25%, you must have $3,750 in equity in your account (25% of $15,000 = $3,750). Thus, you're fine in this situation as the $5,000 worth of equity in your account is greater than the maintenance margin of $3,750. But let's assume the maintenance requirement of your brokerage is 40% instead of 25%. In this case, your equity of $5,000 is less than the maintenance margin of $6,000 (40% of $15,000 = $6,000). As a result, the brokerage may issue you a margin call. Read more: http://www.investopedia.com/university/margin/margin2.asp#ixzz1RUitwcYg\"",
"title": ""
},
{
"docid": "1dd1515d180b076c09d79ffa08fbbf92",
"text": "Technically it's an asset - a note you hold and your friend promised to repay you.",
"title": ""
},
{
"docid": "685f5af46c704157e62049b3b1eace69",
"text": "I don't know much about paypal or bitcoin, but I can provide a little information on BTC(Paypal I thought was just a service for moving real currency). BTC has an exchange, in which the price of a bitcoin goes up and down. You can invest in to it much like you would invest in the stock market. You can also invest in equipment to mine bitcoins, if you feel like that is worthwhile. It takes quite a bit of research and quite a bit of knowledge. If you are looking to provide loans with interest, I would look into P2P lending. Depending on where you live, you can buy portions of loans, and receive monthly payments with the similiar risk that credit card companies take on(Unsecured debt that can be cleared in bankruptcy). I've thrown a small investment into P2P lending and it has had average returns, although I don't feel like my investment strategy was optimal(took on too many high risk notes, a large portion of which defaulted). I've been doing it for about 8 months, and I've seen an APY of roughly 9%, which again I think is sub-optimal. I think with better investment strategy you could see closer to 12-15%, which could swing heavily with economic downturn. It's hard to say.",
"title": ""
},
{
"docid": "c9fabb1dae4afdd4f326ff0595b5be42",
"text": "Echoing the others, never lend money to a friend or family member, just give it to them. If you must have a contract in place then consider it a pay it forward type contract where the friend simply gives the same amount to someone in need at a future date. The value of the friendship can never be measured, but it surely will be diminished by the amount of the loan between the two of you.",
"title": ""
},
{
"docid": "2aa8f9bc9b2fedb0eef66df8b2eea64f",
"text": "Smaller markets can actually be more volatile so it's not a good idea to lower Graham's criteria for them. The only real adjustment possible is inflation adjustment. $100 million in 1973 United States works out to $500 million today based on the difference in CPI/Inflation from 1973. This number will be different for other markets where the rate of inflation since 1973 has been different. So the real question to ask is - what is to $100 million in the United States in 1973 worth today in your market? Source: http://www.serenitystocks.com/how-build-complete-benjamin-graham-portfolio",
"title": ""
},
{
"docid": "0368cb6eed25fe1d2d0b92360ba78eec",
"text": "Stocks, Bonds, Bills, and Lottery Tickets notes the work of Fama and French who researched the idea of a small-cap premium along with a value premium that may be useful to note in terms of what has outperformed if one looks from 1926 to present. Slice and dice would also be another article about an approach that over weights the small-cap and value sides of things if you want another resource here.",
"title": ""
},
{
"docid": "6e488ba73bb1bea39e9b6737e5018779",
"text": "Sorry, but I am absolutely correct. Fractional reserve lending (banking) is simply that when someone deposits money into a bank, the bank is allowed to loan that money out, so long as they keep a reserve. If the reserve rate is 10% (it's much lower in reality), and someone deposits $100 into the bank, the bank can then loan out $90. That is fractional reserve lending at its most basics. Now fractional reserve lending does have a multiplier effect. And this effect is exactly how I described it. Let's go back to the example. Person A deposits the $100, the bank then loans $90 to person B, person B spends it with person C, person C takes the money and deposits back to the bank. Now the bank has the $100 cash back, $90 in loans and the $190 in deposits, so they need to hold onto $19 as a reserve and can loan out $81. Assuming the money cycles with 100% efficiency, the bank can continue loaning out the same money until they are left with $1000 in deposits, $900 in loans, and the original $100 is the reserve. This is the multiplier effect.",
"title": ""
},
{
"docid": "bb9efb537062f9e9ff6780d279fb71ca",
"text": "\"I figured that there must be some people in a corporate office somewhere who sign $100M loans for lunch. :) The banks have that experience (but I'm not interested in asking them for a sample), and our consultants definitely have that experience, but I'm looking to evaluate the consultants with this exercise. If they provide the sample, then deliver to that sample, I'm still blind as to whether that sample is \"\"good\"\" as compared to something that the corporate world would use on the daily. I'd take your advice for the $1M loan, but I can't help but think as the factors of 10 increase, the data required to properly negotiate also increases. I don't want to go in blind, and provide a proposal that looks like a high school project.\"",
"title": ""
},
{
"docid": "19e274619afa82cd02d9aab9f56d1ebc",
"text": "\"You are confining the way you and the other co-founders are paid for guaranteeing the loan to capital shares. Trying to determine payments by equity distribution is hard. It is a practice that many small companies particularly the ones in their initial stage fall into. I always advise against trying to make payments with equity, weather it is for unpaid salary or for guaranteeing a loan such as your case. Instead of thinking about a super sophisticated algorithm to distribute the new shares between the cofounders and the new investors, given a set of constraints, which will most probably fail to make the satisfactory split, you should simply view the co-founders as debt lenders for the company and the shareholders as a capital contributor. If the co-founders are treated as debt lenders, it will be much easier to determine the risk compensation for guaranteeing the loan because it is now assessed in monetary units and this compensation is equal to the risk premium you see fit \"\"taking into consideration the probability of default \"\". On the other hand, capital contributors will gain capital shares as a percentage of the total value of the company after adding SBA loan.\"",
"title": ""
},
{
"docid": "6216c82a3e886b3a0bbedc9202cbea4a",
"text": "\"I experimented with Lending Club, lending a small amount of money in early 2008. (Nice timing right - the recession was December 2007 to June 2009.) I have a few loans still outstanding, but most have prepaid or defaulted by now. I did not reinvest as payments came in. Based on my experience, one \"\"catch\"\" is lack of liquidity. It's like buying individual bonds rather than a mutual fund. Your money is NOT just tied up for the 3-year loan term, because to get good returns you have to keep reinvesting as people pay off their loans. So you always have some just-reinvested money with the full 3 year term left, and that's how long it would take to get all your money back out. You can't just cash out when you feel like it. They have a trading platform (which I did not try out) if you want your money sooner, but I would guess the spreads are wide and you have to take a hit when you sell loans. Again though I did not try the trading platform. On the upside, the yields did seem fine. I got 19 eventual defaults from 81 loans, but many of the borrowers made a number of payments before defaulting so only part of the money was lost. The lower credit ratings default more often obviously, only one of 19 defaults had the top credit score. (I tried investing across a range of credit ratings.) The interest rates appear to cover the risk of default, at least on average. You can of course have varying luck. I made only a slight profit over the 3 years, but I did not reinvest after the first couple months, and it was during a recession. So the claimed yields look plausible to me if you reinvest. They do get people's credit scores, report nonpayment on people's credit reports, and even send people to collections. Seems like borrowers have a reason to pay the bill. In 2008 I think this was a difference compared to the other peer lending sites, but I don't know if that's still true. Anyway, for what it's worth the site seemed to work fine and \"\"as advertised\"\" for me. I probably will not invest more money there for a couple reasons: However as best I could tell from my experiment, it is a perfectly reasonable place to put a portion of your portfolio you might otherwise invest in something like high-yield bonds or some other sub-investment-grade fixed income. Update: here's a useful NY Times article: http://www.nytimes.com/2011/02/05/your-money/05money.html\"",
"title": ""
},
{
"docid": "d10eb268437ac3cb2c275b49b796db2d",
"text": "From Dimson, Elroy, Paul Marsh, and Mike Staunton. Triumph of the Optimists: 101 Years of Global Investment Returns. Princeton, N.J: Princeton University Press, 2002: Disappointingly, the small firm effect has not proved the road to great riches since soon after its discovery, the US size premium went into reverse. This was repeated in the United Kingdom and virtually all other markets around the world. Despite their disappointing performance in recent years, the very long-run record of small-caps remains one of outperformance in both the United States and the United Kingdom. Furthermore, mid- and small-size companies are still an important asset class. Their differential performance over long periods of history shows that there is useful scope for investors to reduce risk by diversifying across the “large” and the “small” capitalization sectors of the market. Furthermore, given the pervasiveness of the size effect across the entire size spectrum, it is important to all investors since the size tilt of any portfolio will strongly influence its short- and long-run performance. This holds true whether there is a size premium or a size discount. The size effect has certainly proved persistent and robust. What is at issue is whether we should continue to expect a size premium over the longer haul. And accompanying charts: And one chart from BlackRock:",
"title": ""
},
{
"docid": "40360b49e289a7118e858513501b2fb8",
"text": "I think this is off topic, but here is a stab: So these are cashless. It could be a way to smooth out the harsh reality of capitalism (I overproduced my product, I have more capacity than I can sell) and I can trade those good to other capitalists who similarly poorly planned production or capacity. Therefore the market for a system like is limited to businesses that do not plan well. Business that plan production or capacity to levels they can already sell for cash do not need a private system to offload goods. Alternatives to such a system include: (I don't know how many businesses are really in this over production / over capacity state. If my assumption that it isn't many is wrong, my answer is garbage.) This is a bartering system with a brokerage. I think we have historically found that common currencies create more trade and economic activity because the value of the note in your pocket, which is the same type of note in my pocket, is common and understood. Exchange rates typically slow down trade. (There are many other reasons to have different currency or notes on a global sale, but the exchange certainly is a hurdle to clear.) This brokerage is essentially adding a new currency (in a grand metaphor). And that new currency is only spendable on their brokerage, which is of limited use to society as a whole, assuming that society as a whole isn't a participating member of that brokerage. I can't really think of why this type of exchange is better than the current system we have now. I wouldn't invest in this as a business, or invest in this as a person looking for opportunity.",
"title": ""
},
{
"docid": "d58ba7d3f0ce9b53e8dbb7b38c4c24bf",
"text": "Large businesses are, in every model, considered to be less likely to default, and Lehman brothers etc notwithstanding, this is historically correct. However, this is still stupid, since the diversification of lending money to many small businesses is way better. This, in turn, is not mapped properly by the regulations on reserve capital. Tl;dr: Banks get punished by regulations if they lend money to small institutions instead of large ones.",
"title": ""
},
{
"docid": "65cf9a90015e47167757486425ce4587",
"text": "\"Oftentimes, the lender (the owner of the security) is not explicitly involved in the lending transaction. Let's say the broker is holding a long-term position of 1MM shares from Client A. It is common for Client A's agreement with Broker A to include a clause that allows the broker to lend out the 1MM shares for its own profit (\"\"rehypothecation\"\"). Client A may be compensated for this in some form (e.g. baked into their financing rates), but they do not receive any compensation that is directly tied to lending activities. You also have securities lending agents that lend securities for an explicit fee. For example, the borrower's broker may not have sufficient inventory, in which case they would need to find a third-party lending agent. This happens both on-demand as well as for a fixed-terms (typically a large basket of securities). SLB (securities lending and borrowing) is a business in its own right. I'm not sure I follow your follow-up question but oftentimes there is no restriction that prevents the broker from lending out shares \"\"for a very short time\"\". Unless there is a transaction-based fee though, the number of times you lend shares does not affect \"\"pocketing the interest\"\" since interest accrues as a function of time.\"",
"title": ""
},
{
"docid": "a4d6cf9cbb5e6ad44af28c621493e016",
"text": "\"I'm hopeful that opinion based answers are acceptable in this context. I've been using YNAB classic for some years. I've tried to keep all possible options open in the manner of individual items for budget allocation. There does seem to be a number of \"\"emergency\"\" situations for which one would prefer to not dig into regular scheduled expenses. Having a large number of smaller funds give you flexibility in terms of categorizing your past emergencies. This gives you a better view of future allocation of your funds, perhaps freeing up money you might not have otherwise identified. If you are using a program such as YNAB (classic, I'm not familiar with the current version), you can easily transfer funds from one category to another as needed. After all, it's merely numbers in a file, not \"\"real money\"\" that would be otherwise inaccessible. To summarize, I think the smaller fund concept provides a better picture. The big picture of the small stuff means greater flexibility and forecasting. Prior to the world of personal computers, I had a piece of paper in my wallet. It had every category I could devise, representing every penny in my checking account. Pencils and erasers eventually grew into YNAB, but the concept remained the same all these decades.\"",
"title": ""
}
] |
fiqa
|
206baa97320bceebc8cfd585b2fa0071
|
Any experience with maxing out 401(k)?
|
[
{
"docid": "bc904594eeef2dc814c1121ab7f0ffd0",
"text": "The biggest challenge as a young person maxing out a 401k in my opinion is the challenge of saving for a house, and (if necessary) paying off student loans. You have to consider - are you OK renting for the next 3, 5, 10 years? Or do you eventually want to buy a place? how much will that cost vs your current expenses? That being said, I didn't max out but had over 8-10% of 401k contribution in the same situation you're in right now and I don't regret it. Rereading your question, I see you are considering investing in a Roth IRA. Especially at your current age, assuming your wages will go UP, investing to the company match with the 401K and then maxing out a Roth IRA would be my recommendation. THEN continue maxing out the 401k (if you wish). P.S. I highly recommend doing two things if you go down this path:",
"title": ""
},
{
"docid": "d63de19dd0bdac53d8c1f9ca9145d780",
"text": "You want to take the hit now. There are tons of calculators out there, but the rule of 70 should be enough to help convince you: Assume you can put an extra $10k in a 401k now, or keep it. If you pay ~30% in taxes, you can have either: A) $7k now, or: B) What $10K will grow to in your 40 years till retirement less taxes at the end. The rule of 70 is a quick, dirty way to calculate compounded returns. It says that if you divide 70 by your assumed return, you get the approximate number of years it will take to double your money. So let's say you assume a 5% rate of return (you can replace that with whatever you want): 1) 70/5 is 14, so you'll double your $10k every 14 years. 2) In 40 years, you'll double your money almost 3 times (2.86) 3) That means you'll end up with almost $80k before taxes 4) Even if we assume the same tax rate at retirement of 30% (odds are decent it's lower, since you'll have less income, presumably), you still have $56k. Whatever you think inflation will be, $56k later is a LOT better than $7k now.",
"title": ""
},
{
"docid": "2e747d9426cb701196cafca24515d80c",
"text": "I moved from contributing 10% to maxing as my salary rose over the course of three years after graduation. Because of my raises, my monthly take home still increased, so it was a pretty painless way to increase my 401(k) contribution and also avoid lifestyle inflation. That said, I would not do it if you have any credit card debt, school loans, or an auto loan. Pay that off first. Then work on maxing the 401(k). Personally I rate owning a home behind that, but that's partially because I'm in an area where the rent ratios are barely on the side of buying, so I don't find buying to be a pressing matter. One thing to investigate is if your company offers a Roth 401(k) option. It's a nice option where you can go Roth without worrying about income limits. My personal experience does not include a Roth IRA because when I still qualified for one I didn't know much about them, and now that I know about them I have the happy issue of not qualifying.",
"title": ""
},
{
"docid": "fe2eaf13a3e777530bda721ae7d7b31b",
"text": "\"On #1: One way to make it less painful is to \"\"split\"\" your raises between yourself and your 401k. That is, if you get a 2% raise, increase your contribution to the 401K by 1% and keep the other 1%. Keep doing this until you are maxed out. You won't miss money you never had nearly as much as money you were used to living on. On #2: Yes, go with the Roth. Another consideration: If you are ever going to max out your 401K it is best to do it early even if you have to cut back later than to wait. Take advantage of the extra investment time while you are young.\"",
"title": ""
},
{
"docid": "63028da560b010f21be8e9e6fbd1ea48",
"text": "I second CrimsonX's advice to max out Roth then 401k. At your age in what sounds like a similar situation I did the same thing -- thankfully. It's easier to do when you're young and unencumbered. 10 years later with kids, house, changing from double to single income, job changes, etc, it's harder to max out retirement accounts. Not to mention that priorities change, e.g. saving for college.",
"title": ""
},
{
"docid": "99a258d0da43914da46158e06cfdb0dd",
"text": "Everybody else has given great answers on what to do, but I just want to add some encouragement. Keep saving. Learn to live within your means while saving, and things like houses and cars and new electronics will come. You can always wait a year and save money up for that new TV, but when retirement hits you are out of time. (I sure wish I had). Keep that retirement money out of sight and (mostly) out of mind. Great job saving and keep up the good work.",
"title": ""
},
{
"docid": "86e0bb3dc4107664219376ebcca5c4d4",
"text": "\"To answer the first part of your question: yes, I've done that! I did even a bit more. I once had a job that I wasn't sure I'd keep and the economy wasn't great either. In case my next employer wouldn't let me contribute to a 401(k) from day one, and because I didn't want to underfund my retirement and be stuck with a higher tax bill - I \"\"front-loaded\"\" my 401(k) contributions to be maxed out before the end of the year. (The contribution limits were lower than $16,500/year back then :-)) As for the reduced cash flow - you need of course a \"\"buffer\"\" account containing several months worth of living expenses to afford maxing out or \"\"front-loading\"\" 401(k) contributions. You should be paying your bills out of such buffer account and not out of each paycheck. As for the reduced cash flow - I think large-scale 401(k)/IRA contributions can crowd out other long-term saving priorities such as saving for a house down payment and the trade-off between them is a real concern. (If they're crowding out basic and discretionary consumer expenses, that's a totally different kind of problem, which you don't seem to have, which is great :-)) So about the trade-off between large-scale 401(k) contributions and saving for the down payment. I'd say maxing out 401(k) can foster the savings culture that will eventually pay its dividends. If, after several years of maxing out your 401(k) you decide that saving for the house is the top priority, you'll see money flow to the money-market account marked for the down payment at a substantial monthly rate, thanks to that savings culture. As for the increasing future earnings - no. Most people I've known for a long time, if they saved 20% when they made $20K/year, they continued to save 20% or more when they later made $100K/year. People who spent the entire paycheck while making $50K/year, always say, if only I got a raise to $60K/year, I'd save a few thousand. But they eventually graduate to $100K/year and still spend the entire paycheck. It's all about your savings culture. On the second part of your question - yes, Roth is a great tool, especially if you believe that the future tax rates will be higher (to fix the long-term budget deficits). So, contributing to 401(k) to maximize the match, then max out Roth, as others suggested, is a great advice. After you've done that, see what else you can do: more 401(k), saving for the house, etc.\"",
"title": ""
},
{
"docid": "32c57031de0d79d5d898bdc163ce70c6",
"text": "\"The answers so far are excellent. I need to respond to your 8-9% withdrawal rate. Uh, wherever you heard that, I'd suggest you listen/read elsewhere. 4% seems to be the \"\"safe\"\" withdrawal rate. I've seen people who were convinced that 7-10% were ok get absolutely trashed in the downturns, both 2000 and 2008. Proper asset allocation and low withdrawal rate will help avoid disaster. I wrote an article about the assumptions we make, looking at 1980-2000 and extrapolating from there. Not pretty. In 2000, I remarked that the near 20%/yr couldn't continue. Understatement of my life. I expected a return to normalcy, maybe 8-10%/yr, and got zero.\"",
"title": ""
},
{
"docid": "dba80ff472f390f5f0c726aae6bb982c",
"text": "Yes, I have done this and did not feel a change in cash flow - but I didn't do it a the age of 23. I did it at a time when it was comfortable to do so. I should have done it sooner and I strongly encourage you to do so. Another consideration: Is your companies program a good one? if it is not among the best at providing good funds with low fees then you should consider only putting 6% into your employer account to get the match. Above that dollar amount start your own ROTH IRA at the brokerage of your choice and invest the rest there. The fee difference can be considerable amounting to theoretically much higher returns over a long time period. If you choose to do the max , You would not want to max out before the end of the year. Calculate your deferral very carefully to make sure you at least put in 6% deferral on every paycheck to the end of the year. Otherwise you may miss out on your company match. It is wise to consider a ROTH but it is extremely tough to know if it will be good for you or not. It all depends on what kind of taxes (payroll, VAT, etc) you pay now and what you will pay in the future. On the other hand the potential for tax-free capital accumulation is very nice so it seems you should trend toward Roth.",
"title": ""
},
{
"docid": "c355349cceb99aa1cd3e758a8e9dad91",
"text": "Don't forget to also build up an emergency fund - retirement saving is important, but you don't want to be caught in a situation where you need money for an emergency (lose your job, get hit by a bus, etc.) and it's all locked away in your 401(k).",
"title": ""
}
] |
[
{
"docid": "810eceab7edb6216ea4133d029874089",
"text": "\"I humbly disagree with #2. the use of Roth or pre-tax IRA depends on your circumstance. With no match in the 401(k), I'd start with an IRA. If you have more than $5k to put in, then some 401(k) would be needed. Edit - to add detail on Roth decision. I was invited to write a guest article \"\"Roth IRAs and your retirement income\"\" some time ago. In it, I discuss the large amount of pretax savings it takes to generate the income to put you in a high bracket in retirement. This analysis leads me to believe the risk of paying tax now only to find tHat you are in a lower bracket upon retiring is far greater than the opposite. I think if there were any generalization (I hate rules of thumb, they are utterly pick-apartable) to be made, it's that if you are in the 15% bracket or lower, go Roth. As your income puts you into 25%, go pretax. I believe this would apply to the bulk of investors, 80%+.\"",
"title": ""
},
{
"docid": "debd7edd8c0c59de27b0c871a9f2d739",
"text": "\"I am not 100% sure, but I think the answer is this: You can't max out both. You could theoretically max out the SIMPLE IRA ($11,500) and then contribute $4,000 to your 401k, but your total can't exceed the 401k limit of $16,500. This also means you could max out your 401k at $16,500, but you couldn't contribute anything to the SIMPLE IRA. Note that no matter what, you can't contribute more than $11,500 to your SIMPLE IRA. (Note that this is all independent from your Traditional or Roth IRA, which are subject to their own limits, and not affected by your participation in employer-sponsored plans.) As I understand it, a 401k and a SIMPLE IRA both fall under the umbrella of \"\"employer-sponsored plans\"\". Just like you can't max out two 401k's at two different employers, you can't do it with the 401k and the SIMPLE IRA. The only weird thing is the contribution limit differences between SIMPLE IRA and 401k, but I don't think the IRS could/would penalize you for working two jobs (enforcing the lower SIMPLE IRA limit for all employer-sponsored retirement accounts). You should probably run the numbers, factoring in the employer match, and figure out which account-contribution scenario makes the most financial sense for you. However, I'm not sure how the employer match helps you when you're talking about a small business that you own/run. You may also want to look at how the employer match of the SIMPLE IRA affects the taxes your business pays. Disclaimer #1: I couldn't find a definitive answer on your specific scenario at irs.gov. I pieced the above info from a few different \"\"SIMPLE IRA info\"\" sites. That's why I'm not 100% sure. It seems intuitively correct to me, though. Does your small business have an accountant? Maybe you should talk to him/her. Disclaimer #2: The $ amounts listed above are based on the IRS 2010 limits.\"",
"title": ""
},
{
"docid": "97cf05dfe3028c0d5c154cf84ef6da1e",
"text": "Adding to the excellent answers already given, we typically advise members to contribute as much as needed to get a full employer match in their 401K, but not more. We then redirect any additional savings to a traditional IRA or ROTH IRA (depending on their age, income, and future plans). Only once they've exhausted the $5000 maximum in their IRA will we look at putting more money into the 401K. The ROTH IRA is a beautiful and powerful vehicle for savings. The only reason to consider taking money out of the ROTH is in a case of serious catastrophe.",
"title": ""
},
{
"docid": "2452848d304d45a8eec636f6ec03ba5f",
"text": "Does your employer provide a matching contribution to your 401k? If so, contribute enough to the 401k that you can fully take advantage of the 401k match (e.g. if you employer matches 3% of your income, contribute 3% of your income). It's free money, take advantage of it. Next up, max out your Roth IRA. The limit is $5000 currently a year. After maxing your Roth, revisit your 401k. You can contribute up to 16,500 per year. You savings account is a good place to keep a rainy day fund (do you have one?), but it lacks the tax advantages of a Roth IRA or 401k, so it is not really suitable for retirement savings (unless you have maxed out both your 401k and Roth IRA). Once you have take care of getting money into your 401k and Roth IRA accounts, the next step is investing it. The specific investment options available to you will vary depending on who provides your retirement account(s), so these are general guidelines. Generally, you want to invest in higher-risk, higher-return investments when you are young. This includes things like stocks and developing countries. As you get older (>30), you should look at moving some of your investments into things that less volatile. Bond funds are the usual choice. They tend to be safer than stocks (assuming you don't invest in Junk bonds), but your investment grows at a slower rate. Now this doesn't mean you immediately dump all of your stock and buy bonds. Rather, it is a gradual transition over time. As you get older and older, you gradually shift your investments to bond funds. A general rule of thumb I have seen: 100 - (YOUR AGE) = Percentage of your portfolio that should be in stocks Someone that is 30 would have 70% of their portfolio in stock, someone that is 40 would have 60% in stock, etc. As you get closer to retirement (50s-60s), you will want to start looking at investments that are more conservatie than bonds. Start to look at fixed-income and money market funds.",
"title": ""
},
{
"docid": "96d91817e91c777a6b6c52d0bd56e29f",
"text": "If you can afford to put more money into the 401(k) -- which is what paying yourself back at a higher rate than you're earning would amount to -- why not just put more money into the 401(k)? Or into an IRA, if you've maxed out what the 401(k) will allow. That would seem to have the same positive effects you're looking for, while avoiding the negative ones.",
"title": ""
},
{
"docid": "e7f9b27da1397fff847b0cbe6b16d1cd",
"text": "If your budget allows for it, max out both plans! However, in my opinion, you're on the right path: The advantage of also contributing to the Roth 401(k) in this case would be: This second point is the main reason that you should also invest in a 401(k), using that as a retirement savings vehicle alongside your Roth IRA. One caveat is that you should ensure that you'll have sufficient savings so that you won't need to dip into either plan - it'd be a shame to reduce the investment base from which you can grow your savings tax free. Personally, I'd view my contributions in the Roth IRA as an emergency fund to be used only in the direst circumstances.",
"title": ""
},
{
"docid": "2945a37cd3f3dd83183b05ca5f474dcb",
"text": "Unless that 401K has very low expense ratios on its funds, you should roll it into an IRA and choose funds with low expense ratios. After rolling it over you should not take the 10% penalty and use it to purchase a home. Unless you use that home as an income property, it is unlikely to provide you more than a 1% inflation-adjusted rate of return given historical data. The S&P 500 is about 4% adjusted for inflation. And that money currently in your 401(k) is for your retirement - your future. Don't borrow against your future. Let compound interest do its work on that money. The value of a house is in the rent you aren't paying to live somewhere and there are a lot of costs to consider. That doesn't mean don't buy. It just means buy wisely. If you are currently maxing out your 401(k), you may consider cutting back to save for your down payment. Other than that I wouldn't touch retirement money unless it was a dire financial emergency.",
"title": ""
},
{
"docid": "5770cab08762f7c46b6612207ed299b9",
"text": "Math - The half-match is 3% or $3900. After 5 years, $19,500. If you stay, you are vested, and have $20K (I hope it's actually far more) extra. For you, it's like 2 month's salary bonus after 5 years. If you leave early, the good news is that even if the expenses within the plan weren't great, you have the money you put in, along with what vested so far. You move that to an IRA and choose your own thrifty funds or ETFs. For me (as Duff said, there's no one answer, so to be clear, this is my feeling, or preference, not gospel) 6% is far too little to save as a percent of my income. So if the 401(k) fees ran say .8% or higher, I'd put in the 6% to get the potential match, and then save on the side. Our answers might change slightly depending on the exact fees you're exposed to.",
"title": ""
},
{
"docid": "db8106cfd7ef5fa80480e89e21f6f2c1",
"text": "The best option for maximizing your money long-term is to contribute to the 401(k) offered by your employer. If you park your inheritance in a savings account you can draw on it to augment your income while you max out your contributions to the 401(k). You will get whatever the employer matches right off the bat and your gains are tax deferred. In essence you will be putting your inheritance into the 401(k) and forcing your employer to match at whatever rate they do. So if your employer matches at 50 cents on the dollar you will turn your 50 thousand into 75 thousand.",
"title": ""
},
{
"docid": "7f6a53aa69a54a982344454e7fb48230",
"text": "I think you understood much of what I say, in general. Unfortunately, I didn't follow Patches math. What I gleen from your summary is a 1% match to the 10% invested, but a .8% expense. The ETF VOO has a .05% annual fee, a bit better than SPY. A quick few calculations show that the 10% bonus does offset a long run of the .75% excess expense compared to external investing. After decades, the 401(k) appears to still be a bit ahead. Not the dramatic delta suggested in the prior answer, but enough to stay with the 401(k) in this situation. The tiny match still makes the difference. Edit - the question you linked to. The 401(k) had no match, and an awful 1.2% annual expense. This combination is deadly for the younger investor. Always an exception to offer - a 25% marginal rate earner close to retiring at 15%. The 401(k) deposit saves him 25, but can soon be withdrawn at 15, it's worth a a few years of that fee to make this happen. For the young person who is planning a quick exit from the company, same deal.",
"title": ""
},
{
"docid": "8ca5a07dbc9252168d91b1abc00a1885",
"text": "Great questions -- the fact that you're thinking about it is what's most important. I think a priority should be maximizing any employer match in your 401(k) because it's free money. Second would be paying off high interest debt because it's a big expense. Everything else is a matter of setting good financial habits so I think the order of importance will vary from person to person. (That's why I ordered the priorities the way I did: employer matching is the easiest way to get more income with no additional work, and paying down high-interest debt is the best way to lower your long-term expenses.) After that, continue to maximize your income and savings, and be frugal with your expenses. Avoid debt. Take a vacation once in a while, too!",
"title": ""
},
{
"docid": "8d2417fd1e8eb8a7ede06951fc8de9c8",
"text": "\"Yes. The definition of unreasonable shows as \"\"not guided by or based on good sense.\"\" 100% years require a high risk. Can your one stock double, or even go up three fold? Sure, but that would likely be a small part of your portfolio. Overall, long term, you are not likely to beat the market by such high numbers. That said, I had 2 years of returns well over 100%. 1998, and 1999. The S&P was up 26.7% and 19.5%, and I was very leverage in high tech stock options. As others mentioned, leverage was key. (Mark used the term 'gearing' which I think is leverage). When 2000 started crashing, I had taken enough off the table to end the year down 12% vs the S&P -10%, but this was down from a near 50% gain in Q1 of that year. As the crash continued, I was no longer leveraged and haven't been since. The last 12 years or so, I've happily lagged the S&P by a few basis points (.04-.02%). Also note, Buffet has returned an amazing 15.9%/yr on average for the last 30 years (vs the S&P 11.4%). 16% is far from 100%. The last 10 year, however, his return was a modest 8.6%, just .1% above the S&P.\"",
"title": ""
},
{
"docid": "7f4e1651b02f5b20f4187cf2a8e8aac1",
"text": "I'm sorry for your situation. If 15 years of maximum savings only has you at $60K, I'm going to assume you are currently in the 15% bracket. A withdrawal will cost you 15% (and maybe push you into the 25% bracket) as well as the 10% penalty, and state tax. Don't do it. Be sure your 401(k) has listed beneficiaries. Your wife will be able to take an annual withdrawal, and pay very little, probably 10%, maybe 15% worst case. You reference that she'd have a lump sum. Yes, but she won't have to take it all at once. She should be able to transfer the funds from the 401(k) to an IRA, and withdraw small amounts each year. It's a very rare circumstance where an early 401(k) withdrawal actually makes any real economic sense.",
"title": ""
},
{
"docid": "d6bc92aee3c062df68dba5a5407131de",
"text": "My understanding is that to make the $18,000 elective deferral in this case, you need to pay yourself at least $18,000. There will be some tax on that for social security and Medicare, so you'll actually need to pay yourself a bit more to cover that too. The employer contribution is limited to 25% of your total compensation. The $18,000 above counts, but if you want to max out on the employer side, you'll need to pay yourself $140,000 salary since 25% of $140,000 is the $35,000 that you want to put into the 401k from the employer side. There are some examples from the IRS here that may help: https://www.irs.gov/retirement-plans/one-participant-401-k-plans I know that you're not a one-participant plan, but some of the examples may help anyway since they are not all specific to one-participant plans.",
"title": ""
},
{
"docid": "20dea3b2e4cbbd789235606ea60ee020",
"text": "At your age, the only place you are going to get a loan is from relatives. If you can't... Go to next year's conference. Missing it this year might feel like a disaster, but it really, really isn't.",
"title": ""
}
] |
fiqa
|
77b418003dd7c51f48bcf0f507665236
|
How much money should I lock up in my savings account?
|
[
{
"docid": "6145724be4af636f752ceb0e691717ba",
"text": "Firstly well done on building a really sold base of savings. An emergency fund needs to have two key characteristics: Be enough to get you through a typical emergency event (often seen as approx. ~6 months’ salary in your style of situation assuming you have no dependents etc) Be liquid and available to you instantly if an emergency arises Once you have decided how much you will need for 1), you then generally find the best interest available on an instant access savings account and leave it there. It's important to note that because you need it very liquid and very secure you will basically never make (nor should you expect to make) any sizeable rate of interest on your emergency fund. Once this is done, whatever left should be invested in an asset/mix of assets that best fit your risk profile - of which long term bonds are a completely legitimate option, but it's hard to say without knowing more about your long term aims/liabilities/job market etc.",
"title": ""
},
{
"docid": "410e921ef58c3b8de593b476d2324dea",
"text": "One issue which I don't see addressed in the answers so far is how to structure bank accounts to get the highest return possible. What you're describing sounds like a certificate of deposit (CD): 'ranging from 1% for 9 months to 2.3% for 5 years' There is a concept which was once more common called a CD Ladder, which still allows you to access your money, while also giving you the highest interest rate offered by the bank. To set one up you divide your account into 5 equal parts, then open 5 CDs with different periods (1-5 years). Each time a new CD matures (once a year), you purchase another 5 year CD with those funds, plus any new money you want to save. Thus you're getting a higher and higher rate, until all of your accounts are earning the 5 year CD rate, and you're never more than a year away from getting money out of the account if a need comes up.",
"title": ""
},
{
"docid": "151faa283ddf874bd693bfc1b69b0d06",
"text": "No, don't bother. You need to decide what you are saving for, and how much risk you are prepared to take. It would make sense if you wanted the money only in x years, and couldn't afford to lose say 20% or more if the stock market crashed the day before you needed the cash. Typically if you are about to retire and buy an annuity, you want to protect your capital. This isn't you. At 28, you might be saving for a wedding, a deposit on a house, possibly for school fees, or for eventual retirement. It doesn't sound like you need to get back exactly 24k in July 2022. Keep the 6 months expenses in accounts that you can withdraw from at short notice. Some of this in a current account, some might be in a savings account that doesn't pay interest if you make withdrawals. After that, I'd stick most of the rest in stock market tracker funds, but you might go for actively managed funds instead (ask another question and take professional advice, there will presumably be local tax considerations too), and add in most of your monthly savings too. These should beat the 2.3% over the 5 years, and you can liquidate them easily if you want to buy a house. If there is a recession and a stock market dip, you presumably have the flexibility to hold on to them longer for the economy to recover. And if you are intending to buy a house, then a recession will probably also involve a fall in house prices, so the loss in your savings will be somewhat balanced by the drop in the purchase price of your house. Of course, the worst case scenario is a severe downturn where you lose your job, are unemployed for a considerable period of time, burn through your emergency fund, and need to sell shares at a considerable loss to meet your expenses. You might have family or dependents that you can borrow from or would need to support, which would change your tolerance for risk. Having money locked away for 5 years in this scenario is even worse. So if you don't want to put all your non-emergency savings into the stock market, you still want to choose something that is accessible at a slightly lower interest rate. But ultimately it sounds like you can afford to lose some of your savings, and the probability is that you will be rewarded with much better returns than 2.3% over 5 years.",
"title": ""
},
{
"docid": "0d056febf8af3e97adf1ac2c9590b44d",
"text": "Lets imagine two scenarios: 1) You make 10.4k (40% of total income) yearly contributions to a savings account that earns 1% interest for 10 years. In this scenario, you put in 104k and earned 5.89k in interest, for a total of 109.9k. 2) You make the same 10.4k yearly contribution to an index fund that earns 7% on average for 10 years. In this scenario you put in the same 104k, but earned 49.7k in interest*, for a total of 153.7k. The main advantage is option 1) has more liquidity -- you can get the money out faster. Option 2) requires time to divest any stocks / bonds. So you need enough savings to get you through that divestment period. Imagine another two scenarios where you stop earning income: 1-b) You stop working and have only your 109.9k principal amount in a 1% savings account. If you withdraw 15.6k yearly for your current cost of living, you will run through your savings in 7 years. 2-b) You stop working and have only 20k (2 years of savings) in savings that earns 1% with 153.7k in stocks that earns 7%. If you withdraw your cost of living currently at 15.6k, you will run through your investments in 15 years and your savings in 2 years, for a total of 17 years. The two years of income in savings is extremely generous for how long it starts the divestment process. In summary, invest your money. It wasn't specified what currency we are talking about, but you can easily find access to an investment company no matter where you are in the world. Keep a small amount for a rainy day.",
"title": ""
},
{
"docid": "cc11da81c53308ccd53376ff6fa4bd76",
"text": "\"Edited answer, given that I didn't address the emergency fund aspect originally: None. You've said you don't feel comfortable locking it away where you wouldn't be able to get to it in an emergency. If you don't like locking it away, the answer to \"\"How much money should I lock up in my savings account?\"\" is none. On a more personal note, the interest rates on bonds are just awful. Over five years, you can do better.\"",
"title": ""
}
] |
[
{
"docid": "299853db8bcf407fd6521d9673dc0cde",
"text": "One strategy to consider is a well-diversified index fund of equities. These have historically averaged 7-8% real growth. So withdrawing 3% or 4% yearly under that growth should allow you to withdraw 30+ years with little risk of drawing down all your capital. As a bonus you're savings target would come down from $10 million to $2.5 million to a little under $3.5 million.",
"title": ""
},
{
"docid": "b3a7ea7a18655ce93d4b616d9b56a7dc",
"text": "To store $1 milion in a bank with full FDIC insurance currently requires 4 separate bank accounts, each at 250k. It's not that difficult, particularly if you are married and your spouse can have 2 in his/her name. (This is dependent on the FDIC limit; they raised it to 250k after the 2008 crash).",
"title": ""
},
{
"docid": "330bf78226ad31ceed4dba2a3dbe9b5e",
"text": "\"It's also worth thinking about minor \"\"emergencies\"\" when the location of your cash may be more important than the amount. I keep a baggie of change and small bills in my glovebox for meters and tolls. I keep a ten dollar bill in my armband when I go out for a jog or bike. Those little stashes have saved me more than once. Zombie apocalypse money? I just have a couple hundred at home.\"",
"title": ""
},
{
"docid": "8842588d3e802c2eb6546e29acd274c5",
"text": "but then they make suggestions such as paying extra each month on your mortgage. How else does one pay off his mortgage early other than by paying extra each month? The principal and interest are fixed, no matter how much money you throw at them. The interest rate is fixed. The total interest paid varies depending on how much extra you pay towards the principal. You'll pay the same amount every month regardless. That's factually incorrect. just put the extra money into savings At 1.2%, if you're smart enough to put it in an on-line savings account. until you have enough to pay off the mortgage Which costs you 3.5%. This way, the money is locked up in your home. Who says that all of your money must be locked up in your home? (I'm sure that there are financial advisors who recommend that you throw every single spare dime into extra mortgage payments, but they're rare.) Am I missing something? Yes: the mathematical sense to see that a 3.5% loan costs more than than 1.2% savings earns you",
"title": ""
},
{
"docid": "ec199cf207762c464059adad4d27fd60",
"text": "Withdraw your savings as cash and stuff them into your mattress? Less flippantly, would the fees for a safe deposit box at a bank big enough to hold CHF 250'000 be less than the negative interest rate that you'd be penalized with if you kept your money in a normal account?",
"title": ""
},
{
"docid": "aca4fb3b0682042c936dbfe844e5052f",
"text": "Well you have three main options in my opinion. For cash, or any assets you can convert to cash, you could purchase bonds with a maturity date close to what you are looking to lock your funds up for. While you could sell these on a secondary market, admittedly - however you have a justification you can provide to yourself as to why you cannot sell them. Fixed term deposits often have poor interest rates, but if you ask to withdraw your money early you often forfeit all of the interest you would have gained. While your money would not be locked up, it keeps it further out of your reach, just like bonds. Every step further away from your bank account the funds get, the less likely you are to surrender to giving away money that is rightfully yours. It comes with the added advantage of typically high-returns. Trust funds can be set up with anyone as the beneficiary, and provide legal barriers so long as the beneficiary isn't also the executor. While it can be expensive to do so, you could hire a lawyer who specialises in estate law to set up a trust fund you are the beneficiary of, which has stipulations as to how and when assets can be released. I didn't include this as one of the main three, because it doesn't allow you to specify exactly when funds are released to you, but in many countries (including the US) you have special tax advantaged retirement accounts, where funds are locked away until you retire. However, it is unfortunate you even need to think about this. Another thing to consider is that if people start pressuring you for money, you should cut them out of your life.",
"title": ""
},
{
"docid": "ad33a976edb517e8395a66c4212ed499",
"text": "First of all, you should absolutely put money into savings until you have at least a 6 month cushion, and preferably longer. It doesn't matter if you get 0% interest in your savings and have a high interest rate mortgage, the cushion is still more important. Once you have a nice emergency fund, you can then consider the question of whether to pay more towards the mortgage if the numbers make sense. However, in my opinion, it's not just a straight comparison of interest rates. In other words, if your savings account gives you 1% and your mortgage is 5%, that's still not an automatic win for the mortgage. The reason is that by putting the money into your mortgage, you're locking it up and can't access it. To me, money in the hand is worth a lot more than money that's yours on paper but not easily accessible. I don't know the math well enough, but you don't really need the math. Just keep in mind that you have to weight the present value of putting that money into savings vs the future value of putting it into your mortgage and paying less interest at some point in the future. Do the math and see how much you will save by paying the mortgage down faster, but also keep in mind that future money is worth less than present money. A LOT less if you suddenly have an emergency or decide on a major purchase and need the money, but then have to jump through hoops to get to it. To me, you need to save a considerable amount by paying down the mortgage, and also understand that your money is getting locked away, for it to make sense.",
"title": ""
},
{
"docid": "44714eb2b7b27e40ad6de9cdbbec0533",
"text": "\"I'll try to give you some clues on how to find an answer to your question, rather than answering directly the question asked. Why not answer it directly? Well, I can, but it won't help you (or anyone else) much in two months when the rates change again. Generally, you won't find such in brick-and-mortar banks. You can save some time and only look at online banks. Examples: ING Direct (CapitalOne), CapitalOne, Amex FSB, E*Trade, Ally, etc. There are plenty. Go to their web sites, look for promotions, and compare. Sometimes you can find coupons/promotions which will yield more than the actual savings rate. For example, ING frequently have a $50 promotion for opening a new account. You need to understand that rates change frequently, and the highest rate account today may become barely average in a week. There are plenty of sites that offer various levels of comparison information. One of the most comprehensive ones (IMHO) is Bankrate.com. Another place to look is MoneyRates.com. These sites provide various comparisons, and you can also find some promotions advertised there. There are more similar sites. Also, search the Internet and you can find various blog posts with additional promotions – frequently banks give \"\"referral bonuses\"\" to provide incentive for clients to promote the banks. Do some due diligence on the results that appear promising. Not much. You won't find any savings account that would keep the value (purchasing power) of your money over the long term. Keeping money in savings accounts is a sure way to lose value because the inflation rate is much higher than even high-yield savings accounts. But, savings accounts are safe (insured by FDIC/NCUA up to the limit), and very convenient to keep short term savings – such as an emergency fund – that you cannot afford to lose to investments. Sometimes you'll get slightly better rates by locking up your money in a Certificate of Deposit (CD), but not significantly higher when the CD is short-term.\"",
"title": ""
},
{
"docid": "11e2ca802f70e201ecfa2a6f0e81f2f6",
"text": "> if you leave like 5k at all times in your account the fee is waived Easier said than done. In the US, more than 20% of adults have zero savings whatsoever, and 62% have less than $1,000 in savings. Pretty tough for most folks to have $5,000 just sitting around in order to prevent a $15 monthly fee.",
"title": ""
},
{
"docid": "9c806ddf329c98ccf57a67bdaa8d97fa",
"text": "It's hard to be disciplined when the money is right there to be spent. So what you should do is have two bank accounts. One for savings and one for spending. Figure out how much you need to spend per week and have your pay automatically deposit that much into the spending account and divert the rest into these accounts. Never touch your savings account unless it is an emergency or whatever. In fact, if you really want, you should put it as a termed deposit which you can't touch. As the only thing you see is your spending balance, you'll be forced to get used to living within your means. After a while, you're going to forget that you have that savings account at all.",
"title": ""
},
{
"docid": "df4f61b877d8a4b2a47ea5f22cfe2168",
"text": "\"Let's divide all bank accounts into savings and checking. The main difference is that checking is easy to get money from; savings is hard to get money from. Because of this, the federal Reserve requires that banks keep more money on hand to cover transactions in checking accounts. Here is a related question from a banking customer regarding a recent notice on their bank statement: Deposit Reclassification. It seems that the bank was moving the customer's money between hidden sub accounts to make it look like the checking account was really a savings account and thus \"\"reduce the amount of funds we are required to keep on deposit at the Federal Reserve Bank.\"\" If they didn't have to transfer the money many times the bank could keep less cash on hand. But once they did 5 hidden transactions the rest of the money in the hidden savings account would be moved by the bank. The 6 transaction limit is done to not allow you to treat savings like checking. Here is a relevant quote from the Federal Reserve Savings Deposits Savings deposits generally have no specified maturity period. They may be interest-bearing, with interest computed or paid daily, weekly, quarterly, or on any other basis. The two most significant features of savings deposits are the ‘‘reservation of right’’ requirement and the restrictions on the number of ‘‘convenient’’ transfers or withdrawals that may be made per month (or per statement cycle of at least four weeks) from the account. In order to classify an account as a ‘‘savings deposit,’’ the institution must in its account agreement with the customer reserve the right at any time to require seven days’ advance written notice of an intended withdrawal. In practice, this right is never exercised, but the institution must nevertheless reserve that right in the account agreement. In addition, for an account to be classified as a ‘‘savings deposit,’’ the depositor may make no more than six ‘‘convenient’’ transfers or withdrawals per month from the account. ‘‘Convenient’’ transfers and withdrawals, for purposes of this limit, include preauthorized, automatic transfers (including but not limited to transfers from the savings deposit for overdraft protection or for direct bill payments) and transfers and withdrawals initiated by telephone, facsimile, or computer, and transfers made by check, debit card, or other similar order made by the depositor and payable to third parties. Other, less-convenient types of transfers, such as withdrawals or transfers made in person at the bank, by mail, or by using an ATM, do not count toward the six-per-month limit and do not affect the account’s status as a savings account. Also, a withdrawal request initiated by telephone does not count toward the transfer limit when the withdrawal is disbursed via check mailed to the depositor. Examiners should be particularly wary of a bank’s practices for handling telephone transfers. As noted, an unlimited number of telephone-initiated withdrawals are allowed so long as a check for the withdrawn funds is mailed to the depositor. Otherwise, the limit is six telephone transfers per month. The limit applies to telephonic transfers to move savings deposit funds to another type of deposit account and to make payments to third parties.\"",
"title": ""
},
{
"docid": "fbcc31b3b194bb4a06218bfa4438d6f3",
"text": "The stock market at large has about a 4.5% long-term real-real (inflation-fees-etc-adjusted) rate of return. Yes: even in light of the recent crashes. That means your money invested in stocks doubles every 16 years. So savings when you're 25 and right out of college are worth double what savings are worth when you're 41, and four times what they're worth when you're 57. You're probably going to be making more money when you're 41, but are you really going to be making two times as much? (In real terms?) And at 57, will you be making four times as much? And if you haven't been saving at all in your life, do you think you're going to be able to start, and make the sacrifices in your lifestyle that you may need? And will you save enough in 10 years to live for another 20-30 years after retirement? And what if the economy tanks (again) and your company goes under and you're out of a job when you turn 58? Having tons of money at retirement isn't the only worthy goal you can pursue with your money (ask anyone who saves money to send kids to college), but having some money at retirement is a rather important goal, and you're much more at risk of saving too little than you are of saving too much. In the US, most retirement planners suggest 10-15% as a good savings rate. Coincidentally, the standard US 401(k) plan provides a tax-deferred vehicle for you to put away up to 15% of your income for retirement. If you can save 15% from the age of 20-something onward, you probably will be at least as well-off when you retire as you are during the rest of your life. That means you can spend the rest on things which are meaningful to you. (Well, you should also keep around some cash in case of emergencies or sudden unemployment, and it's never a good idea to waste money, but your responsibilities to your future have at least been satisfied.) And in the UK you get tax relief on your pension contribution at your income tax rate and most employers will match your contributions.",
"title": ""
},
{
"docid": "94ea24f9daf0be1aa8cc556f394a7c9f",
"text": "\"Don't mind the percentages. They are highly misleading. First, \"\"saving\"\" is making available for future use. It might be \"\"hoarding\"\", \"\"investing\"\" or a combination thereof. It might be for a specific use (a car, a college education, retirement, etc.), or for a non-specific use (for an emergency, for when you decide to spend some of those savings, or just for lack of a compelling use as of the moment). In first case, whatever you save should be available by the date you intend to use it. In second case, it might be prudent to have savings (and investments, see below) of various liquidity (cash you have at hand, bank account you can draw next day, mutual fund account you can draw in a month, maybe something you can only cash in a year etc.). You will see that the actual percentages you \"\"save\"\" fluctuate enormously throughout your life, varying with the progress of your career, changes of marital status and family cmposition, etc., etc. What you should really do is to come up with a rough plan of how you expect, from right now and to the end of your life at whatever age, have enough money for whatever level of comfort you plan for each period of your life, allowing for some specified level of perturbations. Then you just execute that plan or change it as you go.\"",
"title": ""
},
{
"docid": "8a8a67ea7ce494e435405a0f4a50e3b6",
"text": "Yes, and there are several ways, the safest is a high-yield savings account which will return about 1% yearly, so $35 per month. That's not extremely much, but better than nothing (you probably get almost zero interest on a regular checking account).",
"title": ""
},
{
"docid": "e07c617f1278b936ca41ad293ffd4b98",
"text": "Based on your question, I am going to assume your criterion are: Based on these, I believe you'd be interested in a different savings account, a CD, or money market account. Savings account can get you up to 1.3% and money market accounts can get up to 1.5%. CDs can get you a little more, but they're a little trickier. For example, a 5 year CD could get up to 2%. However, now you're money is locked away for the next few years, so this is not a good option if this money is your emergency fund or you want to use it soon. Also, if interest rates increase then your money market and savings accounts' interest rates will increase but your CD's interest rate misses out. Conversely, if interest rates drop, you're still locked into a higher rate.",
"title": ""
}
] |
fiqa
|
d834c1c4bdc00b19b52efaf78128cea3
|
What forces cause a company to write down goodwill?
|
[
{
"docid": "7a01acf95a353dcd5c011f4163d3d225",
"text": "To understand the answer we first have to understand what Goodwill is. Goodwill in a companies balance sheet is an intangible asset that represents the extra value because of a strong brand name, good customer relations, good employee relations and any patents or proprietary technology. An article from The Economist explains this very well and actually talks about Time Warner directly - The goodwill, the bad and the ugly When one firm buys another, the target’s goodwill—essentially the premium paid over its book value—is added to the combined entity’s balance-sheet. Goodwill and other intangibles on the books of companies in the S&P 500 are valued at $2.6 trillion, or 10% of their total assets, according to analysts at Goldman Sachs. As the economy deteriorates and more firms trade down towards (or even below) their book value, empire-builders are having to mark down the value of assets they splashed out on in rosier times. A recently announced $25 billion goodwill charge is expected to push Time Warner into an operating loss for 2008, for instance. Michael Moran of Goldman Sachs thinks such hits could amount to $200 billion or more over the cycle. Investors have so far paid little attention to intangibles, but as write-downs proliferate they are likely to become increasingly wary of industries with a high ratio of goodwill to assets, such as health care, consumer goods and telecoms. How bad things get will depend on the beancounters. American firms used to be allowed to amortise goodwill over many years. Since 2002, when an accounting-rule change ended that practice, goodwill has had to be tested every year for impairment. In this stormy environment, with auditors keener than ever to avoid being seen to go easy on clients, companies are being told to mark down assets if there is any doubt about their value. The sanguine point out that this has no effect on cashflow, since such charges are non-cash items. Moreover, some investors take goodwill write-offs with a pinch of salt, preferring to look past such non-recurring costs and accept the higher “normalised” earnings numbers to which managers understandably cling. The largest companies are thus able to survive thumping blows that might otherwise floor them, such as the $99 billion loss that the newly formed but ill-conceived AOL Time Warner, as it then was, reported for 2002. But the impact can be all too real, as write-downs reduce overall book value and increase leverage ratios, a particular concern in these debt-averse times.",
"title": ""
}
] |
[
{
"docid": "0fabf85cd931ba89b9c27fcb7b04bb9b",
"text": "\"To my knowledge, there's no universal equation, so this could vary by individual/company. The equation I use (outside of sentiment measurement) is the below - which carries its own risks: This equations assumes two key points: Anything over 1.2 is considered oversold if those two conditions apply. The reason for the bear market is that that's the time stocks generally go on \"\"sale\"\" and if a company has a solid balance sheet, even in a downturn, while their profit may decrease some, a value over 1.2 could indicate the company is oversold. An example of this is Warren Buffett's investment in Wells Fargo in 2009 (around March) when WFC hit approximately 7-9 a share. Although the banking world was experiencing a crisis, Buffett saw that WFC still had a solid balance sheet, even with a decrease in profit. The missing logic with many investors was a decrease in profits - if you look at the per capita income figures, Americans lost some income, but not near enough to justify the stock falling 50%+ from its high when evaluating its business and balance sheet. The market quickly caught this too - within two months, WFC was almost at $30 a share. As an interesting side note on this, WFC now pays $1.20 dividend a year. A person who bought it at $7 a share is receiving a yield of 17%+ on their $7 a share investment. Still, this equation is not without its risks. A company may have a solid balance sheet, but end up borrowing more money while losing a ton of profit, which the investor finds out about ad-hoc (seen this happen several times). Suddenly, what \"\"appeared\"\" to be a good sale, turns into a person buying a penny with a dollar. This is why, to my knowledge, no universal equation applies, as if one did exist, every hedge fund, mutual fund, etc would be using it. One final note: with robotraders becoming more common, I'm not sure we'll see this type of opportunity again. 2009 offered some great deals, but a robotrader could easily be built with the above equation (or a similar one), meaning that as soon as we had that type of environment, all stocks fitting that scenario would be bought, pushing up their PEs. Some companies might be willing to take an \"\"all risk\"\" if they assess that this equation works for more than n% of companies (especially if that n% returns an m% that outweighs the loss). The only advantage that a small investor might have is that these large companies with robotraders are over-leveraged in bad investments and with a decline, they can't make the good investments until its too late. Remember, the equation ultimately assumes a person/company has free cash to use it (this was also a problem for many large investment firms in 2009 - they were over-leveraged in bad debt).\"",
"title": ""
},
{
"docid": "abddbd847efa0c61c2eeaf68bb22a483",
"text": "OK, looking at the balance sheet they have $42M in cash, but that is down from $325M in December. Meanwhile their debt has increased from $1.756B in December to $1.832B as of June so their net cash has dropped by $355M in only 6 months. It looks like they spent $329M (give or take) buying other companies in those 6 months. Otherwise their working capital (an important measure of the ability to run the business) looks OK at $230M. Looking at the income statement, they are making money: $70.6M in the last quarter on revenue of $226.7M, which is quite remarkable however they had an unusual item which increased earnings somewhat. Otherwise their earnings would have been about $39M, which is still pretty healthy. All in, the company itself looks healthy and on a bit of a buying binge, growing through acquisition. I don’t like the debt load but that is probably usual for the industry. When companies grow through acquisition they generally plan to reduce total employment because of redundancies because you sort of get economies of scale. This usually factors into the decision to buy the company: you increase revenues through the purchase and reduce costs by eliminating employees. This is typically how they “sell” an acquisition to investors. If I was to guess (and it would only be a guess) this company has a team which looks at the employees of the company it just bought and decides where to downsize. It may not downsize from the newly acquired company but from its own existing employees for a variety of reasons. So most likely that is what you were a victim of: it wasn’t because the company was struggling, or because you were necessarily not a good employee. It is a process, albeit sometimes unfair, and you were a victim of it. The layoff decisions are not always prudent and it can be hard to understand why a particular group was cut instead of another one. Management doesn’t always make the right call. The broadcast industry has been going through consolidation (companies buying companies) for some time now. Most likely management is hoping to “bulk up” to make it harder for another company to buy it and/or to get a better price when it is bought. So in summary, most likely they are doing this for reasons of greed, ie, they’ll make more money with fewer employees. Sorry about your situation.",
"title": ""
},
{
"docid": "fe6bc779bbc88c442ac003d44cff045a",
"text": "You guys seem to have forgotten the most important part of this equation ... i work for a bank and I can tell u this as a painful fact ... every business is governed by its paperwork ... articles bylaws operating agreements amendments and minutes .. if a companys paperwork says that the 51% owner can fire everyone and move to Alaska and that paperwork is proper (signed and binding) it is with minimal excavation law... case in point every company is different .. and it is formed and governed by its paperwork.",
"title": ""
},
{
"docid": "2a8a9a1bbaef5f80d1d041669c1399c3",
"text": "\"Can anyone explain why the analyst is writing off goodwill, please? I would have thought that the HP brand would be worth something for some years to come, that some section of the market will continue saying \"\"well, it's an HP laptop, it must be decent quality\"\" and \"\"you can rely on HP printers\"\" for the foreseeable future. Or is that something else?\"",
"title": ""
},
{
"docid": "d7757af949d34fb59fec0397d70582f1",
"text": "\"The difficulty is that you are thinking of a day as a natural unit of time. For some securities the inventory decisions are less than a minute, for others, it can be months. You could ask a similar question of \"\"why would a dealer hold cash?\"\" They are profit maximizing firms and, subject to a chosen risk level, will accept deals that are sufficiently profitable. Consider a stock that averages 1,000 shares per day, but for which there is an order for 10,000 shares. At a sufficient discount, the dealer would be crazy not to carry the order. You are also assuming all orders are idiosyncratic. Dividend reinvestment plans (DRIP) trigger planned purchases on a fixed day, usually by averaging them over a period such as 10 days. The dealer slowly accumulates a position leading up to the date whenever it appears a good discount is available and fills the DRIP orders out of their own account. The dealer tries to be careful not to disturb the market leading up to the date and allows the volume request to shift prices upward and then fills them.\"",
"title": ""
},
{
"docid": "e86e3e5d05fe804123b83e08af271ecb",
"text": "If this is a publicly traded company, I'd be thinking the shareholders should take a long hard look at this. This is a man who hates his employees more than he likes money. A spite-based decision is obviously going to be inferior to a money-based decision. And shareholders want money.",
"title": ""
},
{
"docid": "6f35493317b0fa9767a0827ede4a4505",
"text": "I appreciate it. I didn't operate under selling the asset year five but other than that I followed this example. I appreciate the help. These assignments are just poorly laid out. Financial management also plays on different calculation interactions so it is difficult for me to easily identify the intent at times. Thanks again.",
"title": ""
},
{
"docid": "4c3533a0299064bf878acac048095187",
"text": "The primary drivers of cash flow in a software firm is the productivity and skill of your employees. How is that reflected in a balance sheet? Well, take a company like Adobe or Salesforce, or even Microsoft. What would you be able to tell about each from their balance sheets? You can look at their cash level, and what else would matter?",
"title": ""
},
{
"docid": "8d2807c840985b9088a4bab68077ea99",
"text": "\"I heard today while listening to an accounting podcast that a balance sheet... can be used to determine if a company has enough money to pay its employees. The \"\"money\"\" that you're looking at is specifically cash on the balance sheet. The cash flows document mentioned is just a more-finance-related document that explains how we ended at cash on the balance sheet. ...even looking for a job This is critical, that i don't believe many people look at when searching for a job. Using the ratios listed below can (and many others), one can determine if the business they are applying for will be around in the next five years. Can someone provide me a pair of examples (one good)? My favorite example of a high cash company is Nintendo. Rolling at 570 Billion USD IN CASH ALONE is astonishing. Using the ratios we can see how well they are doing. Can someone provide me a pair of examples (one bad)? Tesla is a good example of the later on being cash poor. Walk me though how to understand such a document? *Note: This question is highly complex and will take months of reading to fully comprehend the components that make up the financial statements. I would recommend that this question be posted completely separate.\"",
"title": ""
},
{
"docid": "2b3c158f5defdeaf2d702e47a703246d",
"text": "Well it would appear that you had a wash sale that canceled out a loss position. Without seeing the entire report, I couldn't tell you exactly what was happening or how you triggered § 1091. But just from the excerpted images, it appears as though your purchase of stock was layered into multiple tranches - perhaps you acquired more of the stock in the 61-day period than you sold (possibly because of a prior holding). If in the 61-day period around the sale of stock (30 days before and 30 days after), you also acquire the same stock (including by contract or option), then it washes out your loss. If you held your stock for a while, then in a 61-day period bought more, and sold some, then any loss would be washed out by the acquisition. Of course it is also a wash sale if your purchase of the stock follows your sale, rather than precedes it. Your disallowed loss goes into the basis of your stock holding, so will be meaningful when you do have a true economic sale of that stock. From IRS Pub 550: A wash sale occurs when you sell or trade stock or securities at a loss and within 30 days before or after the sale you: Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract or option to buy substantially identical stock or securities, or Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA. If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale. Looking at your excerpted account images, we can see a number of positions sold at a loss (sale proceeds less than basis) but each one is adjusted to a zero loss. I suspect the fuller picture of your account history and portfolio will show a more complicated and longer history with this particular stock. That is likely the source of the wash sale disallowed loss notations. You might be able to confirm that all the added numbers are appearing in your current basis in this stock (or were reflected upon your final exit from the stock).",
"title": ""
},
{
"docid": "17fa3756f29015c0cd0ca5a37ed40fd6",
"text": "The reason is because there's basically no incentive for anyone to not be unrealistically optimistic (aka lie). The management wants to show its being active so they aren't replaced. The IB trying to sell a company wants to make it look as good as possible. The bank providing a loan for the acquisition needs to make it look good for their risk committee, so they won't try to sour down the claims in the CIM too much. The acquired company would rather make more money than less. The only person who loses is the shareholder. It's an agency problem.",
"title": ""
},
{
"docid": "009fcc2fa640129a3c1b7c43fbab0ea5",
"text": "\"As you pointed out in reference to cost-cutting, fiduciary lawsuits come out when things go wrong. When directors successfully increase stock value, everyone including shareholders is happy. I'm not sure exactly where the best place is to look for such cases, but here's what my google-fu yielded: * [Example 1](http://www.nytimes.com/1993/11/25/business/the-media-business-excerpts-from-ruling-in-paramount-case.html): Paramount is sold to Viacom at a lower price than QVC's offer, shareholders sue. Paramount claims they were looking out for long-term but shareholders sued them for screwing them out of maximal share value. * [Example 2](http://www.professorbainbridge.com/professorbainbridgecom/2012/05/case-law-on-the-fiduciary-duty-of-directors-to-maximize-the-wealth-of-corporate-shareholders.html): Dodge v. Ford Motor Co, Ford had a majority share in his company and wanted to stop paying dividends to shareholders so he could expand his business. At trial Ford \"\"testified to his belief that the company made too much money and had an obligation to benefit the public and the firm’s workers and customers.\"\" The court disagreed, as his motor company was set up for profit, not charity. Ford was ordered to resume paying dividends. Interestingly I found many more lawsuits where corporations sacrificed long-term for short-term. It seems once incorporated this is where the internal incentives and pressures lead many managers, lawsuits are merely one of these pressures.\"",
"title": ""
},
{
"docid": "69ecd756d26ab41775af6aef6f9aa581",
"text": "P/E is the number of years it would take for the company to earn its share price. You take share price divided by annual earnings per share. You can take the current reported quarterly earnings per share times 4, you can take the sum of the past four actual quarters earnings per share or you can take some projected earnings per share. It has little to do with a company's actual finances apart from the earnings per share. It doesn't say much about the health of a company's balance sheet, and is definitely not an indicator for bankruptcy. It's mostly a measure of the market's assumptions of the company's ability to grow earnings or maintain it's current earnings growth. A share price of $40 trading for a P/E ratio of 10 means it will take the company 10 years to earn $40 per share, it means there's current annual earnings per share of $4. A different company may also be earning $4 per share but trade at 100 times earnings for a share price of $400. By this measure alone neither company is more or less healthy than the other. One just commands more faith in the future growth from the market. To circle back to your question regarding a negative P/E, a negative P/E ratio means the company is reporting negative earnings (running at a loss). Again, this may or may not indicate an imminent bankruptcy. Increasing balance sheet debt with decreasing revenue and or earnings and or balance sheet assets will be a better way to assess bankruptcy risk.",
"title": ""
},
{
"docid": "36a2251f0e3038728874ef6f3cf0ad31",
"text": "My grandfather owned a small business, and I asked him that very question. His answer was that year-end closeout is very time-consuming, both before and after EOY (end of year), and that they didn't want to do all that around Christmas and New Year.",
"title": ""
},
{
"docid": "9e9c9cec3c9de303788378a493ed49f9",
"text": "The 10-K language is very specific. And as someone that has worked w/ securities attorneys to write these things, I know it is worded like that for a reason. Regardless, to have that risk factor in there and not disclose executives leaving is really shoddy disclosure.",
"title": ""
}
] |
fiqa
|
99e28db8f7fe285c0c7e0fc02deeb946
|
Do large market players using HFT make it unsafe for individual investors to be in the stock market?
|
[
{
"docid": "3816bdadaff52d8404cf2217ab792410",
"text": "There's a lot of hype about HFT. It involves computers doing things that people don't really understand and making a bunch of rich guys a bunch of money, and there was a crisis and so we hate rich wall street guys this year, and so it's a hot-button issue. Meh. There's some reason for concern about the safety of the markets, but I think there's also a lot more of people trying to sell you a newspaper. Remember that while HFT may mean there are a lot of trades, the buying and the selling add up to the same thing. Meanwhile, people who buy stock to hold on to it for significant periods of time will still affect the quantity of stock out there on the market, applying pressure to the price, buying and selling at the prices that they think the security is worth. As a result, it's unlikely that high-frequency trading moves the stock price very far from the price that the rest of the market would determine for very long; if it did, the lower-frequency traders could take advantage of it, buying if it's too low and selling if it's too high. How long do you plan to hold a stock? If you're trying to do day-trading, you might have some trouble; these people are competing with you to do the same thing, and have significant resources at their disposal. If you're holding onto your stock for years on end (like you probably should be doing with most stock) then a trivial premium or discount on the price probably isn't going to be a big deal for you.",
"title": ""
},
{
"docid": "1479b4eb0af174904498d34db9675862",
"text": "\"I don't think that HFT is a game-changer for retail investors. It does mean that amateur daytraders need to pack it up and go home, because the HFT guys are smarter, faster and have more money than you. I'm no Warren Buffet, but I've done better in the market over the last 4 years than I ever have, and I've been actively investing since 1995. You need to do your research and understand what you're investing in. Barring outliers like the \"\"Flash Crash\"\", nothing has changed. You have a great opportunity to buy quality companies with long track records of generous dividends right now for the \"\"safe\"\" part of your portfolio. You have great value stock opportunities. You have great opportunities to take risks on good companies the will benefit from economic recovery. What has changed is that the \"\"set it and forget it\"\" advice that people blindly followed from magazines doesn't work anymore. If you expect to park your money in Index funds and don't manage your money, you're going to lose. Remember that saying \"\"Buy low, sell high\"\"? You buy low when everyone is freaked out and you hear Gold commercials 24x7 on the radio.\"",
"title": ""
},
{
"docid": "e450299e0cbede429bd9a9f93b8bee39",
"text": "Obviously there are good answers about the alternatives to the stock market in the referenced question. HFT has been debated heavily over the past couple of years, and the Flash crash of May 6, 2010, has spurred regulators to rein in heavy automated trading. HFT takes advantage of churn and split second reactions to changing market trends, news and rumors. It is not wise for individual investors to fight the big boys in these games and you will likely lose money in day trading as a result. HFT's defender's may be right when they claim that it makes the market more liquid for you to get the listed price for a security, but the article points out that their actions more closely resemble the currently illegal practice of front-running than a negotiated trade where both parties feel that they've received a fair value. There are many factors including supply and demand which affect stock prices more than volume does. While market makers are generating the majority of volume with their HFT practices, volume is merely the number of shares bought and sold in a day. Volume shows how many shares people are interested in trading, not the actual underlying value of the security and its long term prospects. Extra volume doesn't affect most long term investments, so your long term investments aren't in any extra danger due to HFT. That said, the stock market is a risky place whether panicked people or poorly written programs are trading out of control. Most people are better off investing rather than merely trading. Long term investors don't need to get the absolute lowest price or the highest sell. They move into and out of positions based on overall value and long term prospects. They're diversified so bad apples like Enron, etc. won't destroy their portfolio. Investors long term view allows them to ignore the effects of churn, while working like the tortoise to win the race while the hare eventually gets swallowed by a bad bet. There are a lot of worrying and stressful uncertainties in the global economy. If it's a question of wisdom, focus on sound investments and work politically (as a citizen and shareholder) to fix problems you see in the system.",
"title": ""
},
{
"docid": "35d6242a9c18d05aa1c2988f791bd14e",
"text": "In some senses, any answer to this question is going to be opinion based - nobody outside of HFT firms really know what they do, as they tend to be highly secretive due to the competitive nature of the activity they're engaged in. What's more, people working at HFT firms are bound by confidentiality agreements, so even those in the industry have no idea how other firms operate. And finally, there tend to be very, very few people at each firm who have any kind of overall picture of how things work. The hardware and software that is used to implement HFT is 'modular', and a developer will work on a single component, having no idea how it fits into a bigger machine (a programmer, for instance, might right routines to perform a function for variable 'k', but have absolutely no idea for what 'k' stands!) Keeping this in mind and returning to the question . . . The one thing that is well known about HFT is that it is done at incredibly high speeds, making very small profits many thousands of times per day. Activities are typically associated with market making and 'scalping' which profits from or within the bid-ask spread. Where does all this leave us? At worst, the average investor might get clipped for a few cents per round trip in a stock. Given that investing buy its very nature involves long holding periods and (hopefully) large gains, the dangers associated with the activities of HFT are negligible for the average trader, and can be considered no more than a slight markup in execution costs. A whole other area not really touched upon in the answers above is the endemic instability that HFT can bring to entire financial markets. HFT is associated with the provision of liquidity, and yet this liquidity can vanish very suddenly at times of market stress as the HFT remove themselves from the market; the possibility of lack of liquidity is probably the biggest market-wide danger that may arise from HFT operations.",
"title": ""
}
] |
[
{
"docid": "daff22609d39d7ef7c465090f1d9b402",
"text": "\"Are you talking long-term institutional or retail investors? Long-term *retail* investors look for *orderly markets*, the antithesis of HFT business models, which have a direct correlation between market volatility and profits. To a lesser extent, some \"\"dumb money\"\"/\"\"muppet\"\" institutionals do as well. HFT firms tout they supply liquidity into markets, when in fact the opposite is true. Yes, HFTs supply liquidity, *but only when the liquidity's benefits runs in their direction*. That is, they are applying the part of the liquidity definition that mentions \"\"high trading activity\"\", and conveniently ignoring the part that simultaneously requires \"\"*easily* buying *or* selling an asset\"\". If HFT's are the new exchange floor, then they need to be formalized as such, *and become bound to market maker responsibilities*. If they are actually supplying liquidity, like real Designated Market Makers in the NYSE for example, they become responsible to supply a specified liquidity for specified ticker symbols in exchange for their informational advantage on those tickers. The indisputable fact is that HFT cannot exist at their current profit levels without the information advantage they gain with preferential access to tick-by-tick data unavailable to investors who cannot afford the exchange fees ($1M per exchange 10 years ago, more now). Restrict the entire market, including HFTs, to only second-by-second price data without the tick-by-tick depth, and they won't do so well. Don't get me wrong, I'm not knocking HFTs *per se*; I think they are a marvelous development, so long as they really do \"\"supply liquidity\"\". Right now, they aren't doing so, and especially in an orderly manner. If you want retail investors to keep out of the water as they are doing now, by all means let HFT (and regulatory capture, and a whole host of other financial service industry ills) run as they are. There are arguments to be made about \"\"only let the professionals play the market\"\", where there is no role for retail and anyone who doesn't know how to play the long-term investment game needs to get out of the kitchen. But if you are making such an argument, come out and say so.\"",
"title": ""
},
{
"docid": "3bce49c9f14e16724303feccaa0b44cf",
"text": "I disagree strongly with the other two answers posted thus far. HFT are not just liquidity providers (in fact that claim is completely bogus, considering liquidity evaporates whenever the market is falling). HFT are not just scalping for pennies, they are also trading based on trends and news releases. So you end up having imperfect algorithms, not humans, deciding the price of almost every security being traded. These algorithms data mine for news releases or they look for and make correlations, even when none exist. The result is that every asset traded using HFT is mispriced. This happens in a variety of ways. Algos will react to the same news event if it has multiple sources (Ive seen stocks soar when week old news was re-released), algos will react to fake news posted on Twitter, and algos will correlate S&P to other indexes such as VIX or currencies. About 2 years ago the S&P was strongly correlated with EURJPY. In other words, the American stock market was completely dependent on the exchange rate of two currencies on completely different continents. In other words, no one knows the true value of stocks anymore because the free market hasnt existed in over 5 years.",
"title": ""
},
{
"docid": "7332bdb9d8afee47b06d1b4655871170",
"text": "FFTs target people who make frequent, large transactions. It would primarily affect people like day traders, high frequency traders. If you're doing either of those things with your 401(k), I think you have other problems. Oh, it'll also affect people transferring extremely large amounts of money (like billions), which again, if you have in your 401(k), you have other problems.",
"title": ""
},
{
"docid": "6840ddecbf02e8c564ec38036cce7563",
"text": "You can execute block trades on the options market and get exercised for shares to create a very large position in Energy Transfer Partners LP without moving the stock market. You can then place limit sell orders, after selling directly into the market and keep an overhang of low priced shares (the technical analysis traders won't know what you specifically are doing, and will call this 'resistance'). If you hit nice even numbers (multiples of 5, multiples of 10) with your sell orders, you can exacerbate selling as many market participants will have their own stop loss orders at those numbers, causing other people to sell at lower and lower prices automatically, and simultaneously keep your massive ask in effect. If your position is bigger than the demand then you can keep a stock lower. The secondary market doesn't inherently affect a company in any way. But many companies have borrowed against the price of their shares, and if you get the share price low enough they can get suddenly margin called and be unable to service their existing debt. You will also lose a lot of money doing this, so you can also buy puts along the way or attempt to execute a collar to lower your own losses. The collar strategy is nice because it is unlikely that other traders and analysts will notice what you are doing, since there are calls, puts and share orders involved in creating it. One person may notice the block trade for the calls initially, but nobody will notice it is part of a larger strategy with multiple legs. With the share position, you may also be able to vote on some things, but that solely depends on the conditions of the shares.",
"title": ""
},
{
"docid": "a3b07a4b217c94d673981374e4e7ced8",
"text": "This can be done, you can be prosecuted for some forms of it, in any case there are more riskless ways of doing what you suggested. First, buying call options from market makers results in market makers buying shares at the same delta as the call option. (100 SHARES X DELTA = How many shares MM's bought). You can time this with the volume and depth of the shares market to get a bigger resulting move caused by your options purchase to get bigger quote changes in your option. So on expiration day you can be trade near at the money options back and forth between being out the money and in the money. You would exit the position into liquidity at a profit. The risk here is that you can be sitting on a big options position, where the commissions costs get really big, but you can spread this out amongst several options contracts. Second, you can again take advantage of market maker inefficiencies by getting your primary position (whether in the share market or options market) placed, and then your other position being a very large buy order a few levels below the best bid. Many market makers and algorithms will jump in front of your, they think they are being smart, but it will raise the best bid and likely make a few higher prints for the mark, raising the price of your call option. And eventually remove your large buy order. Again, you exit into liquidity. This is called spoofing. There have been some regulatory actions against people in doing this in the last few years. As for consequences, you need to put things into perspective. US capital market regulators have the most nuanced regulations and enforcement actions of worldwide capital market regulators, and even then they get criticized for being unable or unwilling to curb these practices. With that perspective American laws are basically a blueprint on what to do in 100 other country's stock exchanges, where the legislature has never gotten around to defining the same laws, the securities regulator is even more underfunded and toothless, and the markets more inefficient. Not advice, just reality.",
"title": ""
},
{
"docid": "13ecea7d2cec3c6c0b9e80e181a53a71",
"text": "HFT is a controversial issue and there are smart people with very different opinions on it. You sound like your confidence in your own opinion is not matched with a deep knowledge of market structure. Also, front running has a technical meaning, and what you are referring to as front running is something different.",
"title": ""
},
{
"docid": "941aef807b75234d032142cb464d03de",
"text": "\"Not really. High frequency traders affect mainly short term investors. If everyone invested long-term and traded infrequently, there would be no high frequency trading. For a long term investor, you by at X, hold for several years, and sell at Y. At worst, high frequency trading may affect \"\"X\"\" and \"\"Y\"\" by a few pennies (and the changes may cancel out). For a long term trader that doesn't amount to a \"\"hill of beans\"\" It is other frequent traders that will feel the loss of those \"\"pennies.\"\"\"",
"title": ""
},
{
"docid": "879c0735767dce73815b86de9e6871b6",
"text": "\"This is a classic correlation does not imply causation situation. There are (at least) three issues at play in this question: If you are swing- or day-trading then the first and second issues can definitely affect your trading. A higher-price, higher-volume stock will have smaller (percentage) volatility fluctuations within a very small period of time. However, in general, and especially when holding any position for any period of time during which unknowns can become known (such as Netflix's customer-loss announcement) it is a mistake to feel \"\"safe\"\" based on price alone. When considering longer-term investments (even weeks or months), and if you were to compare penny stocks with blue chip stocks, you still might find more \"\"stability\"\" in the higher value stocks. This is a correlation alone — in other words, a stable, reliable stock probably has a (relatively) high price but a high price does not mean it's reliable. As Joe said, the stock of any company that is exposed to significant risks can drop (or rise) by large amounts suddenly, and it is common for blue-chip stocks to move significantly in a period of months as changes in the market or the company itself manifest themselves. The last thing to remember when you are looking at raw dollar amounts is to remember to look at shares outstanding. Netflix has a price of $79 to Ford's $12; yet Ford has a larger market cap because there are nearly 4 billion shares compared to Netflix's 52m.\"",
"title": ""
},
{
"docid": "e8592693ad8075012e587f766af2775a",
"text": "\"In fact, it's quite the opposite. If someone is willing to sell some stock as low as $30/share, and someone else is willing to pay $31/share, one of those individuals is going to get a good deal - unless HFT acts as the middle-man and snags the extra dollar. In which case the individuals get the worst price they would accept and someone with fast collocated computers gets to skim some profits (while adding no value, the order could have happened without the so called \"\"liquidity\"\" that HFT claims to add). It's not exactly that simple, but that's the basic effect. It's an unnecessary middleman that skims profits away from individuals on both sides. I would like to see a return to \"\"investing\"\" back to the meaning of the word, instead of gambling on daily or short-term fluctuations. I wouldn't mind a long-term holding requirement (3 months?) for every purchase, and a daily exchange-calculated set price (calculated by actual orders placed) that everyone who buys/sells a particular stock on a given day pays. Yes, my ideas would destroy an entire industry. I'm ok with that because it would encourage people to *really* invest in companies.\"",
"title": ""
},
{
"docid": "32f15a8afc23a2b007d6f89f30eef936",
"text": "\"Right, as I stated I agree that it will cause greater variance from the true intrinsic value for individual equities. To take this example to an extreme, traders can throw darts at a board of ticker symbols, purchase them, and still diversify away most firm specific risk. You're correct in stating that such a strategy will eventually cause systematic market failures if everyone does it, but the herd goes where they can make the most profit, and right now that is with ETFs. When fund managers prove they have foresight enough to exploit any systematic failures that this causes, or can start beating ETF returns, the herd will flock back to them. I only meant to point out the reasoning behind why this is happening, not advocating one over the other, and also to point out that Paul Singer shouldn't whine. To re-purpose an old saying, \"\"Don't get mad, get even (by making your investors rich).\"\"\"",
"title": ""
},
{
"docid": "3a71be0c4fad79ee79b2a3bf10b56110",
"text": "\"What do you mean by \"\"handful\"\" and \"\"VERY well-funded\"\"? There are a plenty of HFT shops out there that do just fine. But what zenwarrior said before about the effect of fund size is especially true for HFT, since market capacity is usually the limiting factor when making trades.\"",
"title": ""
},
{
"docid": "661faa4d48f96d63ec1a4467fefc9842",
"text": "The catch is that you're doing a form of leveraged investing. In other words, you're gambling on the stock market using money that you've borrowed. While it's not as dangerous as say, getting money from a loan shark to play blackjack in Vegas, there is always the chance that markets can collapse and your investment's value will drop rapidly. The amount of risk really depends on what specific investments you choose and how diversified they are - if you buy only Canadian stocks then you're at risk of losing a lot if something happened to our economy. But if your Canadian equities only amount to 3.6% of your total (which is Canada's share of the world market), and you're holding stocks in many different countries then the diversification will reduce your overall risk. The reason I mention that is because many people using the Smith Maneuver are only buying Canadian high-yield dividend stocks, so that they can use the dividends to accelerate the Smith Maneuver process (use the dividends to pay down the mortgage, then borrow more and invest it). They prefer Canadian equities because of preferential tax treatment of the dividend income (in non-registered accounts). But if something happened to those Canadian companies, they stand to lose much of the investment value and suddenly they have the extra debt (the amount borrowed from a HELOC, or from a re-advanceable mortgage) without enough value in the investments to offset it. This could mean that they will not be able to pay off the mortgage by the time they retire!",
"title": ""
},
{
"docid": "7d7022a861bd1e99017015e50ae64583",
"text": "The typical structure of an HFT group is very small and flat. A few dozen people (maybe). The firm's capital is at risk, so the principals are usually very involved in what everyone is doing. I haven't seen any of these guys take up the title CEO.",
"title": ""
},
{
"docid": "4fc19dd318f11e0953684c776cace4a4",
"text": "\"I can address what it means to \"\"pick off\"\" all those trades... As quantycuenta & littleadv have said, it is absolutely true that professionals \"\"prey\"\" on less-sophisticated market participants. They aren't in the market for charity's sake. If you're not familiar with the definition of the word \"\"arbitrage\"\", look it up. One possible strategy that can be employed with HFT machinery in order to arbitrage successfully in the stock market is to 'intercept' orders that are placed on various exchanges. In order to do this, an HFT organization watches all the transactions at once to find opportunities to buy low and sell high. A good explanation of it is described here in this NY Times article; I'll paraphrase what that article lays out. Stocks are traded through multiple exchanges The first key point to understand is that stocks listed on one exchange (i.e. the NYSE) can be sold on multiple exchanges. That's where the actual \"\"I would like to sell 100 shares of Ford stock\"\" is matched with \"\"I would like to buy 100 shares of Ford stock.\"\" There are multiple clearinghouses on the various exchanges. Your order gets presented to one exchange at a Time An ideal market maker would like to look at the order books for a given stock, say Ford, and see that in exchange A there's a sell order for 100 shares of F at $15.85, and in exchange B there's a buy order for 100 shares of F at $15.90. Arbitrage Market maker buys from A, sells in B, and pockets $0.05 * 100... $5. It's not much, but it was relatively risk free. Also, scale this up to the scale of the US' multiple stock exchanges, and there are lots of opportunities to make $5 every second. Computers are (of course) faster than people To tie it in completely with your question about 'picking off trades', HFT rigs can be set up and programmed to go faster than an average retail investor's order. Let's say you execute the trade to buy 100 shares @ $15.85 as a retail investor. The HFT rigs see your order starting to make the rounds of the different exchanges that your brokerage works through, and go out in front in a matter of milliseconds, finding the orders that are less than $15.85 and less than or equal to 100 shares. They execute a transaction, buy them up, sell to you, and pocket the difference. You have been \"\"picked off\"\". It's admittedly not the only way to use HFT equipment to make money, but it's definitely one way to do it.\"",
"title": ""
},
{
"docid": "02cf1973bc8bfdb5930a3f0b20037ecd",
"text": "By exploiting institutional investors, HFT does hurt small investors. People with pension, mutual, and index funds get smaller returns. Endowment funds are also going to get hurt which hurts hospitals, schools, charities, and other institutions that work for the public good. I agree with you though. At this point we would likely be just arguing semantics.",
"title": ""
}
] |
fiqa
|
d27eaa02862f5292b0fc713e469c4e9b
|
Formula to determine readiness to retire based on age, networth and annual expense
|
[
{
"docid": "a8136e0b36283542987257724559274e",
"text": "\"The standard interpretation of \"\"can I afford to retire\"\" is \"\"can I live on just the income from my savings, never touching the principal.\"\" To estimate that, you need to make reasonable guesses about the return you expect, the rate of inflation, your real costs -- remember to allow for medical emergencies, major house repairs, and the like when determining you average needs, not to mention taxes if this isn't all tax-sheltered! -- and then build in a safety factor. You said liquid assets, and that's correct; you don't want to be forced into a reverse mortgage by anything short of a disaster. An old rule of thumb was that -- properly invested -- you could expect about 4% real return after subtracting inflation. That may or may not still be correct, but it makes an easy starting point. If we take your number of $50k/year (today's dollars) and assume you've included all the tax and contingency amounts, that means your nest egg needs to be 50k/.04, or $1,250,000. (I'm figuring I need at least $1.8M liquid assets to retire.) The $1.5M you gave would, under this set of assumptions, allow drawing up to $60k/year, which gives you some hope that your holdings would mot just maintain themselves but grow, giving you additional buffer against emergencies later. Having said that: some folks have suggested that, given what the market is currently doing, it might be wiser to assume smaller average returns. Or you may make different assumptions about inflation, or want a larger emergency buffer. That's all judgement calls, based on your best guesses about the economy in general and your investments in particular. A good financial advisor (not a broker) will have access to better tools for exploring this, using techniques like monte-carlo simulation to try to estimate both best and worst cases, and can thus give you a somewhat more reliable answer than this rule-of-thumb approach. But that's still probabilities, not promises. Another way to test it: Find out how much an insurance company would want as the price of an open-ended inflation-adjusted $50k-a-year annuity. Making these estimates is their business; if they can't make a good guess, nobody can. Admittedly they're also factoring the odds of your dying early into the mix, but on the other hand they're also planning on making a profit from the deal, so their number might be a reasonable one for \"\"self-insuring\"\" too. Or might not. Or you might decide that it's worth buying an annuity for part or all of this, paying them to absorb the risk. In the end, \"\"ya pays yer money and takes yer cherce.\"\"\"",
"title": ""
}
] |
[
{
"docid": "ce932128386e9ac1e3bdbe0c347a0ad7",
"text": "If annualized rate of return is what you are looking for, using a tool would make it a lot easier. In the post I've also explained how to use the spreadsheet. Hope this helps.",
"title": ""
},
{
"docid": "441c9c7dbaf65942463e75068c6c32b4",
"text": "I'll offer another answer, using different figures. Let's assume 6% is the rate of return you can expect. You are age 25, and plan to retire at age 65. If you have $0 and want $1M at retirement, you will need to put away $524.20/month, or $6,290.40/year, which is 15% of $41,936. So $41,936 is what you'd need to make per year in order to get to your target. You can calculate your own figures with a financial calculator: 480 months as your term (or, adjust this to your time horizon in months), .486755% as your interest (or, take your assumed interest rate + 1 to the 1/12th power and subtract 1 to convert to a monthly interest rate), 0 as your PV, and $1M as your FV; then solve for PMT.",
"title": ""
},
{
"docid": "bd1c2de074d2347fc982182af0792e6e",
"text": "\"It depends what you mean. Finance Independence and Retirement Early (FI/RE) are two overlapping ideas. If you plan to retire early and spend the same amount of money every year (adjusted for inflation), then you need to save twenty-times your yearly spending to satisfy the 4% Safe Withdrawal rule of thumb. Carefully notice I say \"\"yearly spending\"\" and not income. I'm unaware how it is in Pakistan, but in America, people who retire in their sixties tend to reduce their spending by 30%. This is for a host of reasons like not eating out as much, not driving to work, paid off mortgages, and their children being adults now. In this type of profile, a person needs to save 17.5x yearly spending. This numbers presume a person will only use their built assets as an income source. Any programs like a government pension acting as a safety net. If you factor those in, the estimates above become smaller.\"",
"title": ""
},
{
"docid": "1dbb5cae6181f36ed255b92b5c7e7977",
"text": "You should also update your Net Worth Statement as well as an inventory of all your assets. Unfortunately these are extremely time consuming, but in the event that you pass away your loved ones will know all of your finances and it will be easier for them in a very difficult time. The Net Worth Statement compiles just that, your net worth. The net worth is compiled by subtracting your liabilities from you assets. Assets include things such as cash, money in accounts, all estimated value of your household items, any life insurance, bonds, mutual bonds, and retirement money. The liabilities include amounts such as your mortgage, second mortgage, car loans, unsecured loans, credit cards, student loans, and life insurance loans. This statement is a great way to track year to year how you are doing on your finances and if you are where you need to be in order to retire when you would like. The Inventory is also very important. This is used in the event that you have a fire or some sort of disaster that requires you to give a statement of any items you had in your home. This is a very difficult thing to go through, and having this statement ready to hand over only makes thing easier. There are a couple ways to do this. Some people take pictures of everything they have in their house and make notes of prices and values, some people take a video of the whole house, and some people write down item by item on the computer or on a piece of paper. Whatever way you would like to do it is fine, what works for one person does not necessarily work for the other.",
"title": ""
},
{
"docid": "c19bb8874dcaba8f6d3b4abbcf1dfde0",
"text": "You can take a queue from any sales opportunity and position it in ways that will still appeal to someone who intends to continue working perpetually. Here are some of the points I would make: 401k matching funds are free money that you will have access to in ~20 years whether you retire or not. Long-term savings that grow in the stock market turn into residual income that will add to your standard of living whether you retire or not. There are tax advantages to deferring income if you are in a high tax bracket now. You will have flexibility to withdraw that money in future years where you might have lower earnings. (For example, in a future year, you could take a sabbatical trip to Europe for a few months without pay and draw on your savings during that time that you are not making money.) Even if you don't invest in a 401k, you and max out HSA accounts if you are eligible, and position that as money for medical expenses. If you never have medical reasons to spend that money, you can still withdraw at retirement age like a 401k or IRA. (Though it gets taxed as income if not used for qualified medical purposes at retirement time.) With an unwilling partner, it's difficult to make a lot of progress, but if you have matching funds from your employer, do make sure that you are getting at least those for yourself. Ultimately if he doesn't want to save for himself, you should for yourself. There are no guarantees in life. If he dies or leaves, you must be prepared to take care of your own needs.",
"title": ""
},
{
"docid": "cd51568044da756f3d4c0a41df77506d",
"text": "\"Not to state the obvious, but whenever an investment is being made, the \"\"nuts and bolts\"\" is your return on investment. Analyzing the rate of return on an investment is the primary factor in any decision. Ideally, once the actual mechanics of investment and side \"\"benefits\"\" are factored out, the goal is to be able to analyze the pure financial return. Usually the biggest problem faced in analyzing various investments is comparing the Present Value of an investment to a series of payments that may be made or received in the future. When considering the purchase of a large equity, for example, you might be looking at what series of payments are required to purchase the asset. You can also reverse this and ask, \"\"What amount of money is equivalent to this series of payments?\"\" Ultimately, the Present Value of an Annuity is the way to make these comparisons equal. Fundamentally, the Present Value of an annuity is an amount of money that should, in theory, be equivalent to a series of payments. There is, for example, technically no difference between $1064.94 today and $100 a month for a year, at an interest rate of 1% per month. Grant you, most people would be happier with the money now, but that is what interest does - it compensates you for waiting on your money. You can fire up a spreadsheet and calculate the Present Value as long as you have the monthly payment, interest rate, and number of periods. Alternatively, you can calculate any one of those missing four variables - and the key is usually to understand what that rate would be in order to compare the investments. Finally, the taxable implication is really just an adjustment to the rate of return. Imagine the following three scenarios: (Obviously the rates are fictional - the goal is to show they are the same). Scenarios 1 & 2 are really just two sides of the same coin. Using the Future Value formula in Excel = FV(0.5%, 12, -100), you get $1233.56. In scenario 1, you would have $1233.56 in your bank account. In scenario 2, your bank would have $1233.56 from you, and you would have $100 less debt per month. They are equivalent transactions. Scenario 3 is really just a variation on scenario 2, localized to the United States. Because the interest is tax deductible, however, the rate of 6% isn't really accurate. Assuming you had a 25% tax bracket, you'd actually be getting back one quarter of your interest. Put another way, 7.5% mortgage interest costs you as much as 6% credit card debt. This is how you compare apples and organges - just turn everything into an annuity or a lump sum, using Present Value calculations. Finally, quick rule of thumb - if you owe taxes in both Canada and the US, your Canadian taxes are probably higher than your American ones. As such, any tax incentives will be concomitantly higher. If you only can only use Canadian tax incentives, then look to those incentives, other things being equal.\"",
"title": ""
},
{
"docid": "cb3ecfb14beec853e9a1bf84bf19d800",
"text": "If you set a savings amount now and leave it totally fixed you're likely to massively undershoot or overshoot. What is more likely is that you will adjust either your savings or your retirement expectations as things go along. If it turns out you have $10M (2010 dollars) at age 50 perhaps you'll retire early, and if you have $10k perhaps you'll buckle down and work much longer or save much more. So I think what you are looking for is an assurance that if you budget to save x% of your salary over n years, and you get an after-inflation after-tax return of y% pa, you will eventually be able to retire on an income equivalent to z% of your working income. It's pretty easy to calculate that through a future-value formula. For instance, one set of values that works is saving 20% of income, 5% real return, 30 years = final income of 66% of working income. Or save half your income and within 14 years you can retire and keep spending the amount you were previously spending. Resist the temptation to crank up the assumed return until you get the value you want. I think it would be great hubris to try to make this very precise. Yes, probably you will get raises, of course there are taxes to take into account (probably higher while you're saving), inflation and returns will vary from year to year, et. You can guess at them. But they'll change, and there are bigger things that are unpredictable: your personal life, your health, the economic future of your career or industry. I reckon this simple formula is about as good as you will get.",
"title": ""
},
{
"docid": "03e58b338037cb9b34f764a6061a51ca",
"text": "You want the net expense of the surcharge minus the rewards to be no more than the interest that you would pay otherwise. Where t is the compounding period for the rate D expressed as a fraction of the overall period for D. So if D is an annual rate (not the APR, the simple rate), it would be expressed as something like 1/365 if compounded daily. That is the number of years in the compounding period. If a monthly rate or weekly compounding, that would change. And p is the number of such time periods in the grace period. So if the grace period were one month, this might be 30. Other variables are as used in the question, all expressed as percentages (which is why I'm dividing by 100). The D rate should be the simple rate, like 6% not the APR of 6.24% or whatever. Note that I'm saying <=. When equal, there is no financial advantage or disadvantage. You could choose either method for the same cost. Now, one method may be more annoying to implement, in which case you might add a fee for it on one side or the other of the equation. Or simply change the less than or equal to be just less than. I may be missing something that you should consider but I don't know. The problem is generic enough that pertinent details might be hidden. But hopefully this at least gives you a framework under which to consider it.",
"title": ""
},
{
"docid": "e2f74d5da16c8fedf4baa825e11f13d7",
"text": "According to my reading, the Trinity study says you can withdraw 4% a year for 30 years without exhausting your nest egg, not necessarily that it won't shrink. In most cases, your nest egg will indeed grow. But unfortunately you can't plan to leave no estate while simultaneously preparing for worst-case scenarios in case you happen to pick a bad year to stop working. You can run simulations based on historical data on sites like cFIREsim. And once you're retired, you could potentially increase your spending if simulations show that you're likely to leave behind a large estate. You also probably want to look into things like charitable remainder trusts.",
"title": ""
},
{
"docid": "b0aa776a9b3efd7a2ab769f190a63fce",
"text": "It's important to have both long term goals and milestones along the way. In an article I wrote about saving 15% of one's income, I offered the following table: This table shows savings starting at age 20 (young, I know, so shift 2 years out) and ending at 60 with 18-1/2 year's of income saved due to investment returns. The 18-1/2 results in 74% of one's income replaced at retirement if we follow the 4% rule. One can adjust this number, assuming Social Security will replace 30%, and that spending will go down in retirement, you might need to save less than this shows. What's important is that as a starting point, it shows 2X income saved by age 30. Perhaps 1X is more reasonable. You are at just over .5X and proposing to spend nearly half of that on a single purchase. Financial independence means to somehow create an income you can live on without the need to work. There are many ways to do it, but it usually starts with a high saving rate. Your numbers suggest a good income now, but maybe this is only recently, else you'd have over $200K in the bank. I suggest you read all you can about investments and the types of retirement accounts, including 401(k) (if you have that available to you), IRA, and Roth IRA. The details you offer don't allow me to get much more specific than this.",
"title": ""
},
{
"docid": "617ff2128972845335f0183e4689c6af",
"text": "Pete, 25 years of inflation looks like 100% to me with back of napkin math. $220K will feel like $110K. In today's dollars, can you live on $110K? (Plus whatever Social Security you'll get)? My concern from what you wrote, if I'm reading it correctly, is that you have this great income, but relatively low savings until now. From the recent question Building financial independence I offered a guide to savings as it compares to income. Even shifted 5 years for a later start, and scaled for a 70-75% replacement ratio, you should be at 2X (or $440K) by now. That's not a criticism, but an observation that you've been spending at a nice clip so far. The result is less saving, of course, but also a need for a higher replacement ratio. Last, a 10% return for the next 25 years may be optimistic. I'm not forecasting doom or gloom, just a more reasonable rate of return, and wouldn't plan to see higher than 7-8% for purposes of planning. If I am wrong, (and if so, we can both laugh all the way to the bank) you can always scale back savings in 10-15 years. Or retire earlier. Note: Pete's question asks about a 40 year old working till 65, but the comment below has him 48 and planning to work until 62. 14 years of $45K deposits total less than $700K. Even at 10%, it wouldn't grow to much more than $2M, let alone $5M.",
"title": ""
},
{
"docid": "592918b1cf6d66a9a86a98c63e2ebbf6",
"text": "\"Another approach would be more personalized, which is to measure the risk of missing your goals, rather than measuring the risk of an investment in some abstract sense. Financial planners do this for example with Monte Carlo simulation software (see http://en.wikipedia.org/wiki/Monte_Carlo_method). They would put in a goal such as not running out of money before you die, with assumptions such as the longest you might live and how much you'll withdraw every year. You'd also assume an asset allocation. The Monte Carlo simulation then generates random market movements over the time period, considering historical behavior of your asset allocation, and each run of the simulation would either succeed (you are able to support yourself until death) or fail (you run out of money). The risk measure is the percentage of simulation runs that fail. You can do this to plan saving for retirement in addition to planning withdrawals; then your goal would be to have X amount of money in real after-inflation dollars, perhaps, and success is if you end up with it, and failure is if you don't. The great thing about this risk measure is that it's relevant and personal; \"\"10% chance of being impoverished at age 85,\"\" \"\"20% chance of having to work an extra decade because you don't have enough at 65,\"\" these kinds of answers. Which is a lot easier to act on than \"\"the variance is 10\"\" or \"\"the beta is 1.5\"\" - would you rather know your plan has a 90% chance of success, or know that you have a variance of 10? Both numbers are probably just guesses, but at least the \"\"chance of success\"\" measure is actionable and relevant. Some tangential thoughts FWIW:\"",
"title": ""
},
{
"docid": "3f7bfbd56d669e0399eb055e331c64dd",
"text": "Set your xirr formula to a very tall column, leaving lots of empty rows for future additions. In column C, instead of hardcoding the value, use a formula that tests if it's the current bottom entry, like this: =IF(ISBLANK(A7),-C6, C6) If the next row has no date entered (yet), then this is the latest value, and make it negative. Now, to digress a bit, there are several ways to measure returns. I feel XIRR is good for individual positions, like holding a stock, maybe buying more via DRIP, etc. For the whole portfolio it stinks. XIRR is greatly affected by timing of cash flows. Steady deposits and no withdrawals dramatically skew the return lower. And the opposite is true for steady withdrawals. I prefer to use TWRR (aka TWIRR). Time Weighted Rate of Return. The word 'time' is confusing, because it's the opposite. TWRR is agnostic to timing of cashflows. I have a sample Excel spreadsheet that you're welcome to steal from: http://moosiefinance.com/static/models/spreadsheets.html (it's the top entry in the list). Some people prefer XIRR. TWRR allows an apples-to-apples comparison with indexes and funds. Imagine twin brothers. They both invest in the exact same ideas, but the amount of cash deployed into these ideas is different, solely because one brother gets his salary bonus annually, in January, and the other brother gets no bonus, but has a higher bi-weekly salary to compensate. With TWRR, their percent returns will be identical. With XIRR they will be very different. TWRR separates out investing acumen from the happenstance timing of when you get your money to deposit, and when you retire, when you choose to take withdrawals. Something to think about, if you like. You might find this website interesting, too: http://www.dailyvest.com/",
"title": ""
},
{
"docid": "5c5700d815d1ffe9510d788c7d2f1a85",
"text": "Yes, assuming that your cash flow is constantly of size 5 and initial investment is 100, the following applies: IRR of 5% over 3 years: Value of CashFlows: 4.7619 + 4.5351 + 4.3192 = 13.6162 NPV: 100 - 13.6162 = 86.3838 Continuous compounding: 86.3838 * (1.05^3) = 100",
"title": ""
},
{
"docid": "f968ac77c114449dadf53ee74f7830b8",
"text": "You can't get there from here. This isn't the right data. Consider the following five-year history: 2%, 16%, 32%, 14%, 1%. That would give a 13% average annual return. Now compare to -37%, 26%, 15%, 2%, 16%. That would give a 4% average annual return. Notice anything about those numbers? Two of them are in both series. This isn't an accident. The first set of five numbers are actual stock market returns from the last five years while the latter five start three years earlier. The critical thing is that five years of returns aren't enough. You'd need to know not just how you can handle a bull market but how you do in a bear market as well. Because there will be bear markets. Also consider whether average annual returns are what you want. Consider what actually happens in the second set of numbers: But if you had had a steady 4% return, you would have had a total return of 21%, not the 8% that would have really happened. The point being that calculating from averages gives misleading results. This gets even worse if you remove money from your principal for living expenses every year. The usual way to compensate for that is to do a 70% stock/30% bond mix (or 75%/25%) with five years of expenses in cash-equivalent savings. With cash-equivalents, you won't even keep up with inflation. The stock/bond mix might give you a 7% return after inflation. So the five years of expenses are more and more problematic as your nest egg shrinks. It's better to live off the interest if you can. You don't know how long you'll live or how the market will do. From there, it's just about how much risk you want to take. A current nest egg of twenty times expenses might be enough, but thirty times would be better. Since the 1970s, the stock market hasn't had a long bad patch relative to inflation. Maybe you could squeak through with ten. But if the 2020s are like the 1970s, you'd be in trouble.",
"title": ""
}
] |
fiqa
|
f9bfa5d892dfb41f8e7dfb2799180eec
|
Is a fixed-price natural gas or electricity contract likely to save money?
|
[
{
"docid": "6caeee28e88fa3a9cd3c721fa8fe9df8",
"text": "In my area, the fixed prices are based on an average. My gas company will look at my previous months (six months if I remember correctly) payments and give me an average based on that amount. Then I am contracted for a year based on that average. If I lower my costs, I'm under contract and will not see the savings but if I go over for some reason, I will save money there. It really depends on how your utility companies work so I would check with them, look at your previous billing cycles and determine if the plan will possibly save you money. Of course some things can't be planned for such as the economic downturn like someone else mentioned.",
"title": ""
},
{
"docid": "2b35780cda789898ec37a6d9718bbd5f",
"text": "I can only speak to natural gas but I imagine the answer for electricity is the same. In general, yes, it is better to lock into a fixed price contract as in the long run, natural gas prices increase over time. However, if you locked (signed a fixed price contract) in prior to the economic downturn, most likely you were better off not doing so but the key is long-term. http://en.wikipedia.org/wiki/Natural_gas_prices However, do your research as fixed priced contracts vary considerably from company to company. http://www.energyshop.com/ I think it's a good time to sign a fixed-term contract right now as I don't see prices coming down much further with global economies are now recovering from the downturn. HTH",
"title": ""
},
{
"docid": "1d43ec87c2efba1b4b46326580734644",
"text": "\"I have some numbers to share that may help. I've been tracking my home's natural gas consumption in a spreadsheet for years. Much of that time I'd only been interested in the quantity used – to measure my home's efficiency after certain upgrades – but in 2006 I also started tracking the \"\"Gas Supply Charge\"\" costs from my local utility, Enbridge, in Ontario, Canada. My numbers are for the gas commodity only (i.e. excluding delivery and customer charges.) I've never been on a fixed-price contract, so the numbers are supposed to be reflective of market rates. However, the numbers do differ from real \"\"spot prices\"\" because Enbridge estimates gas costs up-front and then applies a \"\"gas cost adjustment\"\" at later dates if their estimate was wrong. Natural gas cost per cubic meter for Chris's home http://img686.imageshack.us/img686/6406/naturalgascosts3priorye.png Since 2006, natural gas prices have been generally falling. The last cost I have on file, from my November 2009 bill, is 12.9 cents per cubic meter – being ~20 cents gas supply rate, less gas cost adjustment of ~7 cents. My average cost over that nearly 4 year period, January 2006 through November 2009, was 38.4 cents per cubic meter. Considering the current 5-year fixed rate I found is about 29 cents per cubic meter, there is a substantial premium to locking in when compared to current market rates. However, one can see that during the last 4 years, market prices did substantially exceed that rate for quite some time. Furthermore, when I last looked at those 5-year fixed rates perhaps a year or more ago, I couldn't find a company charging less than 39 cents per cubic meter. So, contract rates have fallen as well. Consequently, if we are at a natural gas price low and the economy is to recover, I tend to agree with Cart's answer and suggest it could be a good time to consider a fixed-rate contract. But, do your own due diligence and read the fine print if you go for it. UPDATE: In the interest of full disclosure, shortly after I did my own research above, I signed up for my first ever fixed-rate natural gas contract. :-)\"",
"title": ""
},
{
"docid": "65f94da30a427513f22bf182ec06cc63",
"text": "\"The answer to this question will vary considerably by state and how utilities are regulated in your area. In New York, ESCOs (Energy Supply Companies) are almost always a ripoff for consumers versus the old-style regulated utility (in NY the utility supply markups are tightly regulated, but ESCOs are less regulated). You also need to really understand the marketplace rules for \"\"locking in\"\" a price. If you can lock in the July price for natural gas for a year, that rocks. There are other factors as well. But even then its a real bet, since weather and supply factors can have a dramatic effect on gas prices in the winter. IMO, the best bet is to run with the market rates and bank the efficiency improvements that you build into your home over time. Some utilities offer \"\"budget plans\"\" that smooth out your payments without interest -- I'd recommend that route if predictable bills are your goal.\"",
"title": ""
},
{
"docid": "ceb7d010ff8aba426f67c1921cd9e779",
"text": "I would argue: Because the company only offers you this if it can make money from it. What you are basically doing is betting against the company.",
"title": ""
}
] |
[
{
"docid": "6d247b072578c57f4a301eeeaf357a4b",
"text": "It's not mentioned in the article, but the state will invariably pay for infrastructure upgrades and maintenance around a project like this. The only way this pays off is if the tax revenue generated is enough to pay for any additional expenditure by the state. And the fact that Foxconn has a track record of not living up to its promises is what prevents this from being a no-brainer. We'll need to revisit the topic in 15 years when this deal has reached its conclusion to know if the gamble was worth it. The thing that is working to Foxconn's advantage here is that there were several states competing for this.",
"title": ""
},
{
"docid": "64bc39d668df90dfd1d51e53c0200cf6",
"text": "The real benefit to the environment will come as the grid is powered by more renwables. Tesla will charge when renwables are generating, store power in its big battery, and feed energy back to the grid during times of high demand or when renewable sources are down",
"title": ""
},
{
"docid": "6ab5057a6bbe10ed483b0dd26d3db538",
"text": "Are you assuming that net metering will continue forever? Eventually that will have to stop and you'll only receive the market generation rate (the price before all the markups in the submission's graph) for power exported to the grid which is unlikely to net you much profit.",
"title": ""
},
{
"docid": "84eb661ad5e87c2c1813d26e8f203a7e",
"text": "They're trying to, but ratepayers and state governments are fighting back, especially in progressive states. The big issue is the degree to which you can bank your summer power surplus to offset your winter deficit. You'd think that since you're generating power for the grid in summer you'd get equal credit for that to use in winter when the sun shines less, but power companies do their best to prevent this, so state governments have to mandate it.",
"title": ""
},
{
"docid": "5d18cc2b8115f7be369cef789d203106",
"text": "\"This is the best tl;dr I could make, [original](https://qz.com/1017457/there-is-a-point-at-which-it-will-make-economic-sense-to-defect-from-the-electrical-grid/) reduced by 79%. (I'm a bot) ***** > A new study by the consulting firm McKinsey modeled two scenarios: one in which homeowners leave the electrical grid entirely, and one in which they obtain most of their power through solar and battery storage but keep a backup connection to the grid. > As daily needs for many are supplied instead by solar and batteries, McKinsey predicts the electrical grid will be repurposed as an enormous, sophisticated backup. > Solar panels and battery prices are dropping fast-lithium-ion batteries have fallen from $1,000 to $230 per kilowatt-hour since 2010-as massive new solar and battery factories come online in China and the US. By 2020, Greentech Media projects, homes and businesses will have more battery storage for energy than utilities themselves. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6kchib/there_is_a_point_at_which_it_will_make_economic/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~155595 tl;drs so far.\"\") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr \"\"PM's and comments are monitored, constructive feedback is welcome.\"\") | *Top* *keywords*: **grid**^#1 **battery**^#2 **utility**^#3 **solar**^#4 **McKinsey**^#5\"",
"title": ""
},
{
"docid": "8a469385f7fa771b60b35a6ca66f7831",
"text": "The key is measuring. Like any project you need to evaluate a baseline, make a change, then re-evaluate. Otherwise you are blindly spending money to save, or worse, being manipulated by advertising. Like Chris W. Rea said before me, using a tool like a Kill-A-Watt to measure the effectiveness of what you are about to do is the most important step. For example, if you have an incandescent light bulb in a back part of your basement that you never turn on, it doesn't make much sense to replace that bulb with a $9 LED to save money. If you have an empty freezer in your basement, turn that thing off. Measure your power usage, then you can know for sure what is the most effective action. If you have a family like mine, the best of intentions still leave lights on all day or tvs on a screensaver all night. Invest in simple automation like motion sensing outlets or light switches to automatically turn off power. (It is my full time job to go around a turn off lights, and I want to retire) The biggest payback that I know of is insulation and caulking of your home to make the energy you do use more efficient. If you don't have enough insulation, that is a great place to start. Here is a calculator to estimate the payback of adding insulation. The US government has a cool website with a bunch of tips for saving energy.",
"title": ""
},
{
"docid": "b66b61ad11cadb30ca1d30f219290326",
"text": "UNG United States Natural Gas Fund Natural Gas USO United States Oil Fund West Texas Intermediate Crude Oil UGA United States Gasoline Fund Gasoline DBO PowerShares DB Oil Fund West Texas Intermediate Crude Oil UHN United States Heating Oil Fund Heating Oil I believe these are as close as you'd get. I'd avoid the double return flavors as they do not track well at all. Update - I understand James' issue. An unmanaged single commodity ETF (for which it's impractical to take delivery and store) is always going to lag the spot price rise over time. And therefore, the claims of the ETF issuer aside, these products will almost certain fail over time. As shown above, When my underlying asset rises 50%, and I see 24% return, I'm not happy. Gold doesn't have this effect as the ETF GLD just buys gold, you can't really do that with oil.",
"title": ""
},
{
"docid": "2f7c0fca2c76b98c7fd5ae754ab3ce50",
"text": "Well, you could get long kw/hr to effectively lock in your high rate, but not suffer from anymore shocks. You could also (and this is what I would do) get short and activate change through a legal pursuit. So, get short your light bill via kilowatt hour swaps, and hedge your downside with some longer-dated swaptions. I'm looking at the implied vol for these swaptions on my bloomberg -- it's looking surprisingly cheap. As far as position sizing, we're looking at some notionals of about $200/month. A pretty large sum. Look into getting leverage through total return swaps or repo financing. Does that help?",
"title": ""
},
{
"docid": "a9f6015acf220676c78c716f3c0cc596",
"text": "Last I checked, all business expenses in regards to * Office Supplies * Stationary * Phone service * Marketing are all tax deductible....so how does cutting those costs save money when you'll get that money back via the corporate tax code?",
"title": ""
},
{
"docid": "5a02fa5e98be35dd643239b46c53a8f5",
"text": "It's not like we have a lot of options. We have to stop climate change. Natural gas will be increasingly important, and yes it's a fossil fuel, but not nearly as bad as coal or a oil. Before looking for dealers look at Germany. If only they didn't substitute nuclear with renewables but substituted coal and oil with renewables, they'd have eliminated most fossil fuels.",
"title": ""
},
{
"docid": "b691d2a88102987a7892005486283bea",
"text": ">companies supplying the electricity For the most part, the transaction costs make trying to play EON, RWE, EDF, et al on the short term basis useless. Those companies are all so big and hedged that almost any pricing scenario isn't going to materially impact them. This isn't PGAE circa 2000.",
"title": ""
},
{
"docid": "46bf08c29e31aff2e14a975f99c6519c",
"text": "They will be metering their own electric , so yes that's a plus. And yes I looked at it the same way, free money. I wonder if uploaded a imugr link to the drawings of where they are placing the equipment would help people with determining the benefit.",
"title": ""
},
{
"docid": "e9cf9dd3dcd45697a09d165c0c5ed726",
"text": "Power Options is one such example of what you seek, not cheap, but one good trade will recover a year's fee. There's a lot you can do with the stock price alone as most options pricing will follow Black Scholes. Keep in mind, this is a niche, these questions, while interesting to me, generate little response here.",
"title": ""
},
{
"docid": "bc318b71525376c0e18cccb46902d65b",
"text": "Thanks for that great explanation. I figured you were referring to FAFSA but wanted to be sure. I'm just having my first so i'm trying to plan for the future but I probably won't be paying for college either, it seems like trade schools may be the better deal nowadays.",
"title": ""
},
{
"docid": "1f22df4ad20c173484ea9d80aa08c158",
"text": "Could you perhaps expand on your reasoning behind wanting to take a loan in the first place? Why would you even consider taking a loan for as much as £7,500 (or even much less) if you aren't planning on buying / investing in anything in particular, and you're not in a bad financial situation? If your account never drops below a hundred or two pounds, why would you need to loan money? Just get yourself a credit card, for those times when you might find yourself without money for a short while. But really, it sounds to me like you should be able to set aside a small sum of money every month and create your own savings buffer to cover these situations.",
"title": ""
}
] |
fiqa
|
5de777311920efea0d49a6f82d5a5d52
|
How are bonds affected by the Federal Funds Rate?
|
[
{
"docid": "020d22d766952e6008bf848df7c060d2",
"text": "\"I'll answer your question, but first a comment about your intended strategy. Buying government bonds in a retirement account is probably not a good idea. Government bonds (generally) are tax advantaged themselves, so they offer a lower interest rate than other types of bonds. At no tax or reduced tax, many people will accept the lower interest rate because their effective return may be similar or better depending, for example, on their own marginal tax rate. In a tax-advantaged retirement account, however, you'll be getting the lower interest without any additional benefit because that account itself is already tax-advantaged. (Buying bonds generally may be a good idea or not - I won't comment on that - but choose a different category of bonds.) For the general question about the relationship between the Fed rate and the bond rate, they are positively correlated. There's not direct causal relationship in the sense that the Fed is not setting the bond rate directly, but other interest bearing investment options are tied to the Fed rate and many of those interest-bearing options compete for the same investor dollars as the bonds that you're reviewing. That's at a whole market level. Individual bonds, however, may not be so tightly coupled since the creditworthiness of the issuing entity matters a lot too, so it could be that \"\"bond rates\"\" generally are going up but some specific bonds are going down based on something happening with the issuer, just like the stock market might be generally going up even as specific stocks are dropping. Also keep in mind that many bonds trade as securities on a secondary market much like stocks. So I've talked about the bond rate. The price of the bonds themselves on the secondary market generally move opposite to the rate. The reason is that, for example, if you buy a bond at less than face value, you're getting an effective interest rate that's higher because you get the same sized incremental payments of interest but put less money into the investment. And vice versa.\"",
"title": ""
},
{
"docid": "6e4bbd3e7d72c51119d1690928f018d4",
"text": "\"The federal funds rate is one of the risk-free short-term rates in the economy. We often think of fixed income securities as paying this rate plus some premia associated with risk. For a treasury security, we can think this way: (interest rate) = (fed funds rate) + (term premium) The term premium is a bit extra the bond pays because if you hold a long term bond, you are exposed to interest rate risk, which is the risk that rates will generally rise after you buy, making your bond worth less. The relation is more complex if people have expectations of future rate moves, but this is the general idea. Anyway, generally speaking, longer term bonds are exposed to more interest rate risk, so they pay more, on average. For a corporate bond, we think this way: (interest rate) = (fed funds rate) + (term premium) + (default premium) where the default premium is some extra that the bond must pay to compensate the holder for default risk, which is the risk that the bond defaults or loses value as the company's prospects fall. You can see that corporate and government bonds are affected the same way (approximately, this is all hand-waving) by changes in the fed funds rate. Now, that all refers to the rates on new bonds. After a bond is issued, its value falls if rates rise because new bonds are relatively more attractive. Its value rises if rates on new bonds falls. So if there is an unexpected rise in the fed funds rate and you are holding a bond, you will be sad, especially if it is a long term bond (doesn't matter if it's corporate or government). Ask yourself, though, whether an increase in fed funds will be unexpected at this point. If the increase was expected, it will already be priced in. Are you more of an expert than the folks on wall-street at predicting interest rate changes? If not, it might not make sense to make decisions based on your belief about where rates are going. Just saying. Brick points out that treasuries are tax advantaged. That is, you don't have to pay state income tax on them (but you do pay federal). If you live in a state where this is true, this may matter to you a little bit. They also pay unnaturally little because they are convenient for use as a cash substitute in transactions and margining (\"\"convenience yield\"\"). In general, treasuries just don't pay much. Young folk like you tend to buy corporate bonds instead, so they can make money on the default and term premia.\"",
"title": ""
}
] |
[
{
"docid": "94f4b3bad0673cfc2d66983ab898f89d",
"text": "What you said is technically correct. But the implication OP might get from that statement is wrong. If the Fed buys bonds and nominal yields go down (Sometimes they might even go up if it meant the market expected the Fed's actions to cause more inflation), inflation expectations don't go down unless real yields as measured by TIPs stay still.",
"title": ""
},
{
"docid": "aefe743b20c09ba211183e7b92a884ed",
"text": "Increasing rates from .75% to 1% is an attempt to control debt. The new 1% rate drives down demand for bonds based on the old .75% rate and drives down demand for stocks who have decrease profit because they pay more interest on debt. This is the federal reserves primary tool controling inflation. 1% is what the banks pay to borrow money, they base their lending rates on this 1% figure. If a person can guarantee a .75% return on money borrowed at 1%, they will opt to save and instead lend their money out at 1%.",
"title": ""
},
{
"docid": "233ea902448875e6343af9b6290c5305",
"text": "Investopedia has this note where you'd want the contrapositive point: The interest rate, commonly bandied about by the media, has a wide and varied impact upon the economy. When it is raised, the general effect is a lessening of the amount of money in circulation, which works to keep inflation low. It also makes borrowing money more expensive, which affects how consumers and businesses spend their money; this increases expenses for companies, lowering earnings somewhat for those with debt to pay. Finally, it tends to make the stock market a slightly less attractive place to investment. As for evidence, I'd question that anyone could really take out all the other possible economic influences to prove a direct co-relation between the Federal Funds rate and the stock market returns. For example, of the dozens of indices that are stock related, which ones would you want that evidence: Total market, large-cap, small-cap, value stocks, growth stocks, industrials, tech, utilities, REITs, etc. This is without considering other possible investment choices such as direct Real Estate holdings, compared to REITs that is, precious metals and collectibles that could also be used.",
"title": ""
},
{
"docid": "15259aee6b70c7887800c657f4024033",
"text": "I see that you're invested in a couple bond funds. You do not want to be invested in bonds when the Fed raises rates. When rates climb, the value of bond investments decline, and vice-versa. So that means you should sell bonds before a rate hike, and buy them before a rate drop.",
"title": ""
},
{
"docid": "48f0b8daf92c94325fe3993451500c40",
"text": "The United States Federal Reserve has decided that interest rates should be low. (They think it may help the economy. The details matter little here though.) It will enforce this low rate by buying Treasury bonds at this very low interest rate. (Bonds are future money, so this means they pay a lot of money up front, for very little interest in the future. The Fed will pay more than anyone who offers less money up front, so they can set the price as long as they're willing to buy.) At the end of the day, Treasury bonds pay nearly no interest. Since there's little money to be made with Treasuries, people who want better-than-zero returns will bid up the current-price of any other bonds or similar loan-like instruments to get what whatever rate of return that they can. There's really no more than one price for money; you can think of the price of those bonds as basically (Treasury rate + some modifier based on the risk) percent. I realize thinking about bond prices is weird and different than other prices (you're measuring future-money using present-money and it's easy to be confused) and assure you it ultimately makes sense :) Anyway. Your savings account money has to compete with everyone else willing to lend money to banks. Everyone-else lends money for peanuts, so you get peanuts on your savings account too. Your banking is probably worth more to your bank on account of your check-card payment processing fees (collected from the merchant) than from the money they make lending out your savings (notice how many places have promotional rates if you make your direct deposits or use your check card to make a purchase N times a month). In Europe, it's similar, except you've got a different central bank. If Europe's bank operated radically differently for an extended period of time, you'd expect to see a difference in the exchange rates which would ultimately make the returns from investing in those currencies pretty similar as well. Such a change may show up domestically as inflation in the country with the loose-money policy, and internationally as weakness against other currencies. There's really only one price for money around the entire world. Any difference boils down to a difference in (perceived) risk.",
"title": ""
},
{
"docid": "b45d931f0cfba1a028cae1a5bc8f4399",
"text": "Fundamentally interest rates reflect the time preference people place on money and the things money can buy. If I have a high time preference then I prefer money in my hand versus money promised to me at some date in the future. Thus, I will only loan my money to someone if they offer me an incentive which would be an amount of money to be received in the future that is larger than the amount of money I’m giving the debtor in the present (i.e. the interest rate). Many factors go into my time preference determination. My demand for cash (i.e. my cash balance), the credit rating of the borrower, the length of the loan, and my expectation of the change in currency value are just a few of the factors that affect what interest rate I will loan money. The first loan I make will have a lower interest rate than the last loan, ceteris paribus. This is because my supply of cash diminishes with each loan which makes my remaining cash more valuable and a higher interest rate will be needed to entice me to make additional loans. This is the theory behind why interest rates will rise when QE3 or QEinfinity ever stops. QE is where the Federal Reserve cartel prints new money to purchase bonds from cartel banks. If QE slows or ends the supply of money will stop increasing which will make cash more valuable and higher interest rates will be needed to entice creditors to loan money. Note that increasing the stock of money does not necessarily result in lower interest rates. As stated earlier, the change in value of the currency also affects the interest rate lenders are willing to accept. If the Federal Reserve cartel deposited $1 million everyday into every US citizen’s bank account it wouldn’t take long before lenders demanded very high interest rates as compensation for the decrease in the value of the currency. Does the Federal Reserve cartel affect interest rates? Yes, in two ways. First, as mentioned before, it prints new money that is loaned to the government. It either purchases the bonds directly or purchases the bonds from cartel banks which give them cash to purchase more government bonds. This keeps demand high for government bonds which lowers the yield on government bonds (yields move inverse to the price of the bond). The Federal Reserve cartel also can provide an unlimited amount of funds at the Federal Funds rate to the cartel member banks. Banks can borrow at this rate and then proceed to make loans at a higher rate and pocket the difference. Remember, however, that the Federal Reserve cartel is not the only market participant. Other bond holders, such as foreign governments and pension funds, buy and sell US bonds. At some point they could demand higher rates. The Federal Reserve cartel, which currently holds close to 17% of US public debt, could attempt to keep rates low by printing new money to buy all existing US bonds to prevent the yield on bonds from going up. At that point, however, holding US dollars becomes very dangerous as it is apparent the Federal Reserve cartel is just a money printing machine for the US government. That’s when most people begin to dump dollars en masse.",
"title": ""
},
{
"docid": "d9ff22fad222bb44d548c34d3f973584",
"text": "Yes, the interest rate on a Treasury does change as market rates change, through changes in the price. But once you purchase the instrument, the rate you get is locked in. The cashflows on a treasury are fixed. So if the market rate increase, the present value of those future cashflows decreases, so the price of the treasury decreases. If you buy the bond after this happens, you would pay a lower price for the same fixed cashflows, hence you will receive a higher rate. Note that once you purchase the treasury instrument, your returns are locked in and guaranteed, as others have mentioned. Also note that you should distinguish between Treasury Bills and Treasury Bonds, which you seem to use interchangeably. Straight from the horse's mouth, http://www.treasurydirect.gov/indiv/products/products.htm: Treasury Bills are short term securities with maturity up to a year, Treasury Notes are medium term securities with maturity between 1 and 10 years, and Treasury Bonds are anything over 10 years.",
"title": ""
},
{
"docid": "fa30e29f8506005c072899b81da89854",
"text": "Let's say today you buy the bond issued by StateX at 18$. Let's say tommorow morning the TV says that StateX is going towards default (if it happens it won't give you back not even the 18$ you invested). You (and others that bought the same bond like you) will get scared and try to sell the bond, but a potential buyer won't buy it for 18$ anymore they will risk maximum couple of bucks, therefor the price of your bond tomorrow is worth 2$ and not 18 anymore. Bond prices (even zero coupon ones) do fluctuate like shares, but with less turbolence (i.e. on the same period of time, ups and downs are smaller in percentage compared to shares) EDIT: Geo asked in the comment below what happens to the bond the FED rises the interest. It' very similar to what I explained above. Let's say today you buy the bond just issued by US treasury at 50$. Today the FED rewards money at 2%, and the bond you bought promised you a reward of 2% per year for 10 years (even if it's zero coupon, it will give you almost the same reward of one with coupons, the only difference is that it will give you all the money back at once, that is when the bond expires). Let's say tommorow morning the TV says that FED decided to rise the interest rates, and now on it lends money rewarding a wonderful 4% to investors. US treasury will also have to issue bonds at 4%. You can obviously keep your bond until expiration (and unless US goes default you will get back all your money until the last cent), but if you decide to sell your bond, you will find out that people won't be willing to pay 50$ anymore because on the market they can now buy the same type of bond (for the same period of time, 10 years) that give them 4% per year and not a poor 2% like yours. So people will be willing to pay maximum 40$ for your bond or less.",
"title": ""
},
{
"docid": "160c44a324bab3abc239fa3ebc2a53bf",
"text": "Yes, the Fed has made a point of buying up longer-term bonds to push down rates on that part of the curve. That's not an indication that they're having problems selling Treasuries, in fact far from it. But apparently there's no demand for Treasuries and Bloomberg is just making up lies to help get Obama reelected? >Investors are plowing into Treasuries (USB2YBC) at a record pace as the supply of the world’s safest securities dwindles, ensuring yields will stay low regardless of whether the Federal Reserve undertakes more stimulus to fight unemployment. Buyers bid $3.19 for each dollar of the $538 billion in notes and bonds sold this year, the most since the government began releasing the data in 1992 and on pace to beat the high of $3.04 in 2011. The net amount of Treasuries available will decline by 30 percent once proceeds from maturing securities are reinvested, according to data from CRT Capital Group LLC. http://www.bloomberg.com/news/2012-04-09/record-treasury-demand-keeps-yields-low-as-supply-shrinks.html",
"title": ""
},
{
"docid": "25fd54e7984e8a5af60b1f25acdb4347",
"text": "Look at this question here. In my answer there, I put a link to an Investopedia article about the bond prices. Keep in mind that speculating over a short term period is pretty dangerous, even with the Treasury notes, and the prices may be affected temporary but greatly by the ordeals like the latest Republican shenanigans in Washington.",
"title": ""
},
{
"docid": "387c129acc390a3c1a392d09e73a8b0f",
"text": "\"Of course Goldman Sacs sells the bonds to the fed without charging a commission. They are well known for their compassionate altruism. Just kidding! Of course they charge. The Federal Reserve Act specifies that the Federal Reserve buy and sell Treasury securities only in the \"\"open market.\"\" The Federal Reserve conducts its purchases through \"\"Primary Dealers\"\" - usually Goldman Sacs-these btw are older securities. The new ones such as the fed has been gobbling up lately are sold at auction. This supposedly supports the central banks independence in conducting monetary policy but still doesn't seem right. But then the fact that we have a central bank at all instead of the U.S. Treasury printing the money, doesn't seem quite right either now does it?\"",
"title": ""
},
{
"docid": "478cdde040cedfb6e01af7f6e8296744",
"text": "I looked into the investopedia one (all their videos are mazing), but that detail just was not clear to me, it also makes be wonder, if a country issues bonds to finance itself, what happens at maturity when literally millions of them need to be paid? The income needs to have grown to that level or it defaults? Wouldn't all the countries default if that was the case, or are bonds being issued to being able to pay maturity of older bonds already? (I'm freaking myself out by realizing this)",
"title": ""
},
{
"docid": "ececac6321b8ffaeba94cd84491d095d",
"text": "Public Securities Association Standard Prepayment Model is what the acronym psa stands for. My understanding is that it allows for adjustments in monthly pre-payment amounts, which will then affect the yield of the bond. Not really sure what the most important bond measure would be... but if I had to guess I'd say its the mechanical bond price/ bond yield relationship. Yields go down, prices go up and vice versa.",
"title": ""
},
{
"docid": "c480cc34018d4f6ac8d9e295e42efa98",
"text": "It is different this time. But I think the risk of asset prices rising is almost as equal as them falling. QE caused asset price inflation, but QE was only to calm/support the market. They're probably not going to stuff that QE money back into the central bank for a very long time either. Maybe, they'll just keep rolling over the bonds out to maturity, while relying on deficits to inflate away the assets at the Fed. https://youtu.be/o8LAUQwv77Q My bet is the main risks going forward are political risks, and continued modest inflation among things not measured by CPI.",
"title": ""
},
{
"docid": "bb27312cdf3703a383fa28960ac1908a",
"text": "This directly relates to the ideas behind the yield curve. For a detailed explanation of the yield curve, see the linked answer that Joe and I wrote; in short, the yield curve is a plot of the yield on Treasury securities against their maturities. If short-term Treasuries are paying higher yields than long-term debt, the yield curve has a negative slope. There are a lot of factors that could cause the yield curve to become negatively sloped, or at least less steep, but in this case, oil prices and the effective federal funds rate may have played a significant role. I'll quote from the section of the linked answer that describes the effect of oil prices first: a rise in oil prices may increase expectations of short-term inflation, so investors demand higher interest rates on short-term debt. Because long-term inflation expectations are governed more by fundamental macroeconomic factors than short-term swings in commodity prices, long-term expectations may not rise nearly as much as short term expectations, which leads to a yield curve that is becoming less steep or even negatively sloped. As the graph shows, oil prices increased dramatically, so this increase may have increased expectations of short-term inflation expectations substantially. The other answer describes an easing of monetary policy, e.g. a decrease in the effective federal funds rate (FFR), as a factor that could increase the slope of the yield curve. However, a tightening of monetary policy, e.g. an increase in the FFR, could decrease the slope of the yield curve because a higher FFR leads investors to demand a higher rate of return on shorter-term securities. Longer-term Treasuries aren't as affected by short-term monetary policy, so when short-term yields increase more than long-term yields, the yield curve becomes less steep and/or negatively sloped. The second graph shows the effective federal funds rate for the period in question, and once again, the increase is significant. Finally, look at a graph of inflation for the relevant period. Intuitively, the steady increase in inflation from 1975 onward may have increased investors expectations of short-term inflation, therefore increasing short-term yields more than long-term yields (as described above and in the other answer). These reasons aren't set in stone, and just looking at graphs isn't a substitute for an actual analysis of the data, but logically, it seems plausible that the positive shock to oil prices, increases in the effective federal funds rate, and increases in inflation and expectations of inflation contributed at least partially to the inversion of the yield curve. Keep in mind that these factors are all interconnected as well, so the situation is certainly more complex. If you approve of this answer, be sure to vote up the other answer about the yield curve too.",
"title": ""
}
] |
fiqa
|
700385f0bbcebee9a683678174df01b9
|
Ways to save for child's college education where one need not commit to set contributions? [duplicate]
|
[
{
"docid": "bd2b50466c2fb48a74a03351450603f0",
"text": "529 plans. They accumulate earnings over time and by the time your child goes to college you will be able to withdraw funds for college TAX FREE. The best part about 529s is that there are several different options you can choose from, and you aren't limited to the plans sponsored by your state, you can use whichever plan works best for you. For example, I live in South Carolina and use Utah's Educational Savings Plan because it has no minimum amount to open one up and it has low fees. Hope this helped. Good luck with your search!",
"title": ""
},
{
"docid": "0eaf00f256cf298387ca5d1c2a154aa4",
"text": "\"In my opinion, whichever plan or commodity system you use is just supplemental to a very simple thing: go to your bank's online account, set up a regular transfer (monthly in my case, maybe weekly for you depending on when you get your salary in your country/state) to a savings' account in your kid's name with a decent rate, and just watch it grow. Then adjust to salary fluctuations if needed. Also, prefer a tax-free savings account. Been working fine for me for my oldest who's now 4 yo. Started by saving only a little each month and increased as our financial pressure eased up a bit. For his sister, I already set up a similar thing and I will \"\"equalize\"\" both accounts with additional payments over time (Hmm, actually, maybe that's not fair and they just need to be \"\"equalized\"\" in that they both have the same amount for a given age... but that's another question). Another option, which I set up for my oldest but not for his sister was a child trust fund with an initial payment. We moved countries and I don't find a plan that I find similarly attractive here, and the other one is locked until 18 yo. But, as with all portfolios, it comes with a risk. Note that I don't live in the U.S. in the land of crazy college fees. Though I've studied myself in countries where fees were already a drag (and I'm being polite) for various fields (IT and music studies, anyone?), I have to say when I see fees for the big league universities and colleges in the U.S. I am kind of shocked. Doable, but good luck with that and with your loans.\"",
"title": ""
},
{
"docid": "576cccc84488349299efa67fd9a2de45",
"text": "529 is good. Though, I would avoid other kinds of investments in kids names and or setting up accounts that are too complex or difficult to use as college costs will come in may aspects starting application fees and travel expenses when looking for college as well as housing and allowance spending.",
"title": ""
},
{
"docid": "f3e50dd861f531211ef5db6eeca1998b",
"text": "Since this post was migrated from Parenting, my reply was in the context where it appeared to be misrepresenting facts to make a point. I've edited it to be more concise to my main point. In my opinion, the best way to save for your childs future is to get rid of as much of your own debt as possible. Starting today. For the average American, a car is 6-10%. Most people have at least a couple credit cards, ranging from 10-25% (no crap). College loans can be all over the map (5-15%) as can be signature (8-15%) or secured bank loans (4-8%). Try to stop living within your credit and live within your means. Yeah it will suck to not go to movies or shop for cute things at Kohl's, but only today. First, incur no more debt. Then, the easiest way I found to pay things off is to use your tax returns and reduce your cable service (both potentially $Ks per year) to pay off a big debt like a car or student loan. You just gave yourself an immediate raise of whatever your payment is. If you think long term (we're talking about long-term savings for a childs college) there are things you can do to pay off debt and save money without having to take up a 2nd job... but you have to think in terms of years, not months. Is this kind of thing pie in the sky? Yes and no, but it takes a plan and diligence. For example, we have no TV service (internet only service redirected an additional $100/mo to the wifes lone credit card) and we used '12 taxes to pay off the last 4k on the car. We did the same thing on our van last year. It takes willpower to not cheat, but that's only really necessary for the first year-ish... well before that point you'll be used to the Atkins Diet on your wallet and will have no desire to cheat. It doesn't really hurt your quality of life (do you really NEED 5 HBO channels?) and it sets everyone up for success down the line. The moral of the story is that by paying down your debt today, you're taking steps to reduce long haul expenditures. A stable household economy is a tremendous foundation for raising children and can set you up to be more able to deal with the costs of higher ed.",
"title": ""
}
] |
[
{
"docid": "39efca8110c7d497f195cadf2e5cc2fe",
"text": "I think you have a good start understanding the ESA. $2k limit per child per year. The other choice is a 529 account which has a much higher limit. You can deposit up to 5 years worth of gifting per child, or $65k per child from you and another $65k from your wife. Sounds great, right? The downside is the 529 typically has fewer investment options, and doesn't allow for individual stocks. The S&P fund in my 529 costs me nearly 1% per year, in the ESA, .1%. the ESA has to be used by age 30, the 529 can be held indefinitely.",
"title": ""
},
{
"docid": "10ac79d2ac6be5c20574e7d20547be22",
"text": "\"You have a few correlated questions here: Yes you can. There are only a few investment strategies that require a minimum contribution and those aren't ones that would get a blanket recommendation anyway. Investing in bonds or stocks is perfectly possible with limited funds. You're never too young to start. The power of interest means that the more time you give your money to grow, the larger your eventual gains will be (provided your investment is beating inflation). If your financial situation allows it, it makes sense to invest money you don't need immediately, which brings us to: This is the one you have to look at most. You're young but have a nice chunk of cash in a savings account. That money won't grow much and you could be losing purchasing power to inflation but on the other hand that money also isn't at risk. While there are dozens of investment options1 the two main ones to look at are: bonds: these are fixed income, which means they're fairly safe, but the downside is that you need to lock up your money for a long time to get a better interest rate than a savings account index funds that track the market: these are basically another form of stock where each share represents fractions of shares of other companies that are tracked on an index such as the S&P 500 or Nasdaq. These are much riskier and more volatile, which is why you should look at this as a long-term investment as well because given enough time these are expected to trend upwards. Look into index funds further to understand why. But this isn't so much about what you should invest in, but more about the fact that an investment, almost by definition, means putting money away for a long period of time. So the real question remains: how much can you afford to put away? For that you need to look at your individual situation and your plans for the future. Do you need that money to pay for expenses in the coming years? Do you want to save it up for college? Do you want to invest and leave it untouched to inspire you to keep saving? Do you want to save for retirement? (I'm not sure if you can start saving via IRAs and the like at your age but it's worth looking into.) Or do you want to spend it on a dream holiday or a car? There are arguments to be made for every one of those. Most people will tell you to keep such a \"\"low\"\" sum in a savings account as an emergency fund but that also depends on whether you have a safety net (i.e. parents) and how reliable they are. Most people will also tell you that your long-term money should be in the stock market in the form of a balanced portfolio of index funds. But I won't tell you what to do since you need to look at your own options and decide for yourself what makes sense for you. You're off to a great start if you're thinking about this at your age and I'd encourage you to take that interest further and look into educating yourself on the investments options and funds that are available to you and decide on a financial plan. Involving your parents in that is sensible, not in the least because your post-high school plans will be the most important variable in said plan. To recap my first point and answer your main question, if you've decided that you want to invest and you've established a specific budget, the size of that investment budget should not factor into what you invest it in. 1 - For the record: penny stocks are not an investment. They're an expensive form of gambling.\"",
"title": ""
},
{
"docid": "d457ed23d4d188203fae9f08792b9a22",
"text": "\"This is an old question, but a new product has popped up that provides an alternative answer. There is a website called stockpile.com that allows you to purchase \"\"stock gift certificates\"\" for others. These come in both electronic and traditional physical form. This meets my question's original criteria of a gift giver paying for stock without having any of the recipient's personal information and thus maintaining the gift's surprise. I should note a few things about this service: Despite these limitations I wanted to post it here so others were aware of it as an option. If no other alternative will work and this is what it takes to get a parent interested in teaching their child to invest, then it's well worth the costs.\"",
"title": ""
},
{
"docid": "fcf00c058fb795ee2b66e94a51bb9c79",
"text": "\"According to the FAFSA info here, they will count your nonretirement assets when figuring the EFC. The old Motley Fool forum question I mentioned in my comment suggests asking the school for a \"\"special circumstances adjustment to your FAFSA\"\". I don't know much about it, but googling finds many pages about it at different colleges. This would seem to be something you need to do individually with whatever school(s) your son winds up considering. Also, it is up to the school whether to have mercy on you and accept your request. Other than that, you should establish whatever retirement accounts you can and immediately begin contributing as much as possible. Given that the decision is likely to be complicated by your foreign income, you should seek professional advice from an accountant versed in such matters.\"",
"title": ""
},
{
"docid": "d9cb6f639cc02d9fa95f1f7e8dd31186",
"text": "Probably the biggest tax-deferment available to US workers is through employee-sponsored investment plans like the 401k. If you meet the income limits, you could also use a Traditional IRA if you do not have a 401k at work. But keep in mind that you are really just deferring taxes here. The US Government will eventually get their due. :) One way which you may find interesting is by using 529 plans, or other college investment plans, to save for your child's (or your) college expenses. Generally, contributions up to a certain amount are deductible on your state taxes, and are exempt from Federal and State taxes when used for qualifying education expenses. The state deduction can lower your taxes and help you save for college for your children, if that is a desire of yours.",
"title": ""
},
{
"docid": "5dcea2a043b2b89f705cdb34fec89fe2",
"text": "\"As soon as you specify FDIC you immediately eliminate what most people would call investing. The word you use in the title \"\"Parking\"\" is really appropriate. You want to preserve the value. Therefore bank or credit union deposits into either a high yield account or a Certificate of Deposit are the way to go. Because you are not planning on a lot of transactions you should also look at some of the online only banks, of course only those with FDIC coverage. The money may need to be available over the next 2-5 years to cover college tuition If needing it for college tuition is a high probability you could consider putting some of the money in your state's 529 plan. Many states give you a tax deduction for contributions. You need to check how much is the maximum you can contribute in a year. There may be a maximum for your state. Also gift tax provisions have to be considered. You will also want to understand what is the amount you will need to cover tuition and other eligible expenses. There is a big difference between living at home and going to a state school, and going out of state. The good news is that if you have gains and you use the money for permissible expenses, the gains are tax free. Most states have a plan that becomes more conservative as the child gets closer to college, therefore the chance of losses will be low. The plan is trying to avoid having a large drop in value just a the kid hits their late teens, exactly what you are looking for.\"",
"title": ""
},
{
"docid": "bb1a6886a0414d71c3b50c1163c6222c",
"text": "I think you have already outlined for yourself most of the pros and cons of each method of giving. It sounds to me like you have some desire to control how the money is spent, or at least reserve the right not to give it to a child who will waste it (according to your definition). If you set up an UTMA/UGMA account, or just give the money directly each year as a birthday gift, you are surrendering control of the money. It's a gift and is no longer yours to direct. If you set up a 529, you at least restrict the money to a particular, useful purpose. Moreover, if you retain ownership of the 529, you can take the money back, albeit with a tax penalty to yourself. If you do hold a 529 in your name, but for a child's benefit, there are a couple of things to consider with respect to future financial aid (this is from recent experience--my in-laws have 529s for our children, both of whom are currently in college). A 529 not owned by the student or the student's parent is not reported as an asset (of the child or the parent) on the Free Application for Federal Student Aid (FAFSA). However, once such a 529 is used to pay college expenses, the amount of those payments does get reported on the following year's FAFSA, and counts as untaxed income for the purposes of figuring the Expected Family Contribution (EFC). Untaxed income is assessed towards the EFC at 50%. In contrast, parental assets are assessed at around 7%, if I recall correctly, and student assets at around 35%. Student-owned 529s are assessed at the rate of parental assets, which is an advantage. If the amount you will set aside is less than the cost of one year of college, you can avoid the disadvantage of the untaxed income assessment by just using the entire 529 for the final year of school, since there will be no FAFSA for the following year. It occurs to me that there is one other way you can give to them that you did not mention, and may make you more comfortable in terms of encouraging some positive behavior. Namely, save the money in a self-owned account, then, when they are old enough to get a job that provides a W-2 showing declared, earned income, you can use the savings to fund a Traditional or Roth IRA for them, up to the limit allowed each year, until the money you set aside is exhausted. The Roth is a better long-term savings vehicle, but the Traditional would carry bigger penalties for early withdrawal and would therefore be less tempting to draw on.",
"title": ""
},
{
"docid": "d5fccfee4794940e96ad9d71100be6ab",
"text": "\"Several student loans are backed by government guarantee and this will allow you to get attractive rates. This may require them to consolidate the three classes of loans separately. Many commercial banks offer consolidation services, one example is Wachovia discussed at https://www.wellsfargo.com/student/private-loan-consolidation/ Other methods of \"\"consolidation\"\" are of course anything that pays off the original loan. If available, using a parent's home equity line of credit to pay of the loans and then paying back the parents can save money. An additional benefit of HELOC-style loans is that they are very flexible in their payment terms. For example you may pay $25 per year to keep the account open and then only be required to make interest payments. Links: https://origin.bankrate.com/finance/college-finance/faqs-on-student-loan-consolidation-1.aspx\"",
"title": ""
},
{
"docid": "c8a1f6e41f6870de191a8e56f1d19176",
"text": "You are faced with a dilemma. If you use a 529 plan to fund your education, the short timeline of a few years will limit your returns that are tax free. Most people who use a 529 plan either purchase years of tuition via lump sum, when the child is young; or they put aside money on a regular basis that will grow tax deferred/tax free. Some states do give a tax break when the contribution is made by a state taxpayer into a plan run by the state. The long term plans generally use a risk profile that starts off heavily weighted in stock when the child is young, and becomes more fixed income as the child reaches their high school years. The idea is to protect the fund from big losses when there is no time to recover. If you choose the plan with the least risk the issue is that the amount of gains that are being protected from federal tax is small. If you pick a more aggressive plan the risk is that the losses could be larger than the state tax savings. Look at some of the other tax breaks for tuition to see if you qualify Credits An education credit helps with the cost of higher education by reducing the amount of tax owed on your tax return. If the credit reduces your tax to less than zero, you may get a refund. There are two education credits available: the American Opportunity Tax Credit and the Lifetime Learning Credit. Who Can Claim an Education Credit? There are additional rules for each credit, but you must meet all three of the following for either credit: If you’re eligible to claim the lifetime learning credit and are also eligible to claim the American opportunity credit for the same student in the same year, you can choose to claim either credit, but not both. You can't claim the AOTC if you were a nonresident alien for any part of the tax year unless you elect to be treated as a resident alien for federal tax purposes. For more information about AOTC and foreign students, visit American Opportunity Tax Credit - Information for Foreign Students. Deductions Tuition and Fees Deduction You may be able to deduct qualified education expenses paid during the year for yourself, your spouse or your dependent. You cannot claim this deduction if your filing status is married filing separately or if another person can claim an exemption for you as a dependent on his or her tax return. The qualified expenses must be for higher education. The tuition and fees deduction can reduce the amount of your income subject to tax by up to $4,000. This deduction, reported on Form 8917, Tuition and Fees Deduction, is taken as an adjustment to income. This means you can claim this deduction even if you do not itemize deductions on Schedule A (Form 1040). This deduction may be beneficial to you if, for example, you cannot take the lifetime learning credit because your income is too high. You may be able to take one of the education credits for your education expenses instead of a tuition and fees deduction. You can choose the one that will give you the lower tax.",
"title": ""
},
{
"docid": "902175a618268269d197835f4027f20c",
"text": "\"Under current US tax code, you can receive $14K from an unlimited number of people with no tax consequence to them. Yes, the burden is on the giver. There's an exception to most rules. If I gift you a large sum and don't fill out the required paperwork, paying the tax due, the IRS can go after the recipient for their cut. \"\"Follow the money\"\" is still going to be applied. Even if over $14K, a tax isn't always due. Form 709 is required, and will allow a credit against one's lifetime gifting, currently $5.34M. In effect, the current limits mean that 99%+ of us will never worry about this limit, just file the paperwork. Last, the 529 College Savings accounts permit a 5 year look ahead, i.e. a parent can deposit $70K to jump start her child's account. Then no gift for next 4 years.\"",
"title": ""
},
{
"docid": "c79894c7fa372a0fc8b279eaf727db50",
"text": "\"In my opinion, you can't save too much for retirement. An extra $3120/yr invested at 8% for 30 years would give you $353K more at retirement. If your \"\"good amount in my 401k\"\" is a hint that you don't want us to go in that direction, then how about saving for the child's college education? 15 years' savings, again at 8% will return $85K, which feels like a low number even in today's dollars, 15 years of college inflation and it won't be much at all. Not sure why there's guilt around spending it. If one has no debt, good retirement savings level, and no pressing need to save for something else, enjoying one's money is an earned reward. Even so, if you want a riskless 'investment' just prepay the mortgage. You'll see an effective return of the mortgage rate, 4%(?) or so, vs the .001% banks are paying. Of course, this creates a monthly windfall once the mortgage is paid off, but it buys you time to make this ultimate decision. In the end, I'd respond that similar to Who can truly afford luxury cars?, one should produce a budget. I don't mean a set of constraints to limit spending in certain categories, but rather, a look back at where the money went last year and even the year before that. What will emerge are the things that are normal, the utility bills, tax bill, mortgage, etc, as well as the discretionary spending. If all your current saving is on track, the investment may be in experiences, not financial products.\"",
"title": ""
},
{
"docid": "98308db7064246b27f37cdf304800bf8",
"text": "There are two types of 529 programs. One where you put money aside each month. The one offered by your state may give you a tax break on you deposits. You can pick the one from any state, if you like their options better. During the next 18 years the focus the investment changes from risky to less risky to no risk. This happens automatically. The money can be used for tuition, room, board, books, fees. The 2nd type of 529 is also offered by a state but it is geared for a big lump sum payment when the child is young. This will cover full tuition and fees (not room and board, or books) at a state school. The deal is not as great if they child wants to go out of state, or you move, or they want to go to a private school. You don't lose everything, but you will have to make up the shortfall at the last minute. There are provisions for scholarship money. If you kid goes to West Point you haven't wasted the money in the 529. The money in either plan is ignored while calculating financial aid. Other options such as the Coverdell Education Savings account also exist. But they don't have the options and state tax breaks. Accounts in the child's name can impact the amount of financial aid offered, plus they could decide to spend the money on a car. The automatic investment shift for most of the state 529 plans does cover your question of how much risk to take. There are also ways to transfer the money to other siblings if one decides not to go to college. Keep in mind that the funds don't have to be spent as soon as they turn 18, they can wait a few years before enrolling in college.",
"title": ""
},
{
"docid": "2e808270f61e48530726c53dae641c17",
"text": "One big advantage that the 529 plan has is that most operate like a target date fund. As the child approaches college age the investment becomes more conservative. While you can do this by changing the mix of investments, you can't do it without capital gains taxes. Many of the issues you are concerned about are addressed: they are usable by other family members, they don't hurt financial aid offers, they address scholarships, they can be used for books or room and board. Many states also give you a tax break in the year of the contribution.",
"title": ""
},
{
"docid": "7e23806abc4aac758bb9c06fc926f314",
"text": "begin having them take community college courses while they are still in high school - this should be a better use of time than AP courses. if they continue and get an associates degree the credits should be transferrable anywhere take the associates degree to a state school and have them finish just their two years (4 semesters) at the state school. that should be an non-stressful and affordable approach that will give them a time/age-based advantage over their peers. so instead of playing with financial aid and retirement plan rules, this sort of goal can help you save, without creating inconsequential and unnecessary expectations for yourself or your family",
"title": ""
},
{
"docid": "f91f4a2c1fefc9609804c9797e792abd",
"text": "The British didn't choose to stay away, they were forced out (as was Sweden) by their fucked up policies and being unable to defend their peg against the (trading only at the time) euro currency. They lost a fuckload in the process and when it became apparent that those that understand market arbitrage wouldn't let up (what killed Mexico/Argentia Peso as well), they backed out.",
"title": ""
}
] |
fiqa
|
f6a6c6a54bca7a2cdb8661119ad25003
|
Variations of Dual momentum
|
[
{
"docid": "0e67e45b5854d2f1613136954e4faf30",
"text": "\"There's a few layers to the Momentum Theory discussed in that book. But speaking in general terms I can answer the following: Kind of. Assuming you understand that historically the Nasdaq has seen a little more volatility than the S&P. And, more importantly, that it tends to track the tech sector more than the general economy. Thus the pitfall is that it is heavily weighted towards (and often tracks) the performance of a few stocks including: Apple, Google (Alphabet), Microsoft, Amazon, Intel and Amgen. It could be argued this is counter intuitive to the general strategy you are trying to employ. This could be tougher to justify. The reason it is potentially not a great idea has less to do with the fact that gold has factors other than just risk on/off and inflation that affect its price (even though it does!); but more to do with the fact that it is harder to own gold and move in and out of positions efficiently than it is a bond index fund. For example, consider buying physical gold. To do so you have to spend some time evaluating the purchase, you are usually paying a slight premium above the spot price to purchase it, and you should usually also have some form of security or insurance for it. So, it has additional costs. Possibly worth it as part of a long-term investment strategy; if you believe gold will appreciate over a decade. But not so much if you are holding it for as little as a few weeks and constantly moving in and out of the position over the year. The same is true to some extent of investing in gold in the form of an ETF. At least a portion of \"\"their gold\"\" comes from paper or futures contracts which must be rolled every month. This creates a slight inefficiency. While possibly not a deal breaker, it would not be as attractive to someone trading on momentum versus fundamentals in my opinion. In the end though, I think all strategies are adaptable. And if you feel gold will be the big mover this year, and want to use it as your risk hedge, who am I or anyone else to tell you that you shouldn't.\"",
"title": ""
}
] |
[
{
"docid": "2aa481ffa2d33951bfdbbab1ebf2c7cb",
"text": "Not really. You can have two bonds that have identical duration but vastly different convexity. Pensions and insurance portfolio managers are most common buyers as they're trying to deal with liability matching and high convexity allows them to create a barbell around their projected liabilities.",
"title": ""
},
{
"docid": "b486f52ac222a212ce347c49cee3f862",
"text": "\"This is the best tl;dr I could make, [original](http://cep.lse.ac.uk/pubs/download/dp1503.pdf) reduced by 99%. (I'm a bot) ***** > Alternative risk outcomes All risk outcomes capture ex-post risk realizations rather than ex- ante risks. > 4.8 1.2 1.6 Figure 2: Positive Correlation Tests - Dynamics t+1 t+2 t+3 t+4 t+5 t+6 Displacement Probability in Year t+k t+7 t+8 Notes: Risk realization in t + 1 may fail to fully capture the unemployment risk faced by an individual as she is making her coverage choice at time t, which justifies using risk realizations for that individual further into the future. > 05 Individual-level model &beta;OLS =.082 &beta;2SLS =.245 0.05.1.15 Firm Displacement Risk in t.2 Notes: The Figure uses cross-sectional variation in displacement risk across firms as a risk shifter to estimate how UI coverage choices react to variation in risk that is not driven by individual moral hazard. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/76t73y/lse_riskbased_selection_in_unemployment_insurance/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~229382 tl;drs so far.\"\") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr \"\"PM's and comments are monitored, constructive feedback is welcome.\"\") | *Top* *keywords*: **risk**^#1 **coverage**^#2 **individual**^#3 **work**^#4 **selection**^#5\"",
"title": ""
},
{
"docid": "1fec42beb84e2821dd90cd035446ea8d",
"text": "Something like cost = a × avg_spreadb + c × volatilityd × (order_size/avg_volume)e. Different brokers have different formulas, and different trading patterns will have different coefficients.",
"title": ""
},
{
"docid": "69e661b4e1154b9542f9d63bc5d62bbb",
"text": "So I did some queries on Google Scholar, and the term of art academics seem to use is target date fund. I notice divided opinions among academics on the matter. W. Pfau gave a nice set of citations of papers with which he disagrees, so I'll start with them. In 1969, Paul Sameulson published the paper Lifetime Portfolio Selection By Dynamic Stochaistic Programming, which found that there's no mathematical foundation for an age based risk tolerance. There seems to be a fundamental quibble relating to present value of future wages; if they are stable and uncorrelated with the market, one analysis suggests the optimal lifecycle investment should start at roughly 300 percent of your portfolio in stocks (via crazy borrowing). Other people point out that if your wages are correlated with stock returns, allocations to stock as low as 20 percent might be optimal. So theory isn't helping much. Perhaps with the advent of computers we can find some kind of empirical data. Robert Shiller authored a study on lifecycle funds when they were proposed for personal Social Security accounts. Lifecycle strategies fare poorly in his historical simulation: Moreover, with these life cycle portfolios, relatively little is contributed when the allocation to stocks is high, since earnings are relatively low in the younger years. Workers contribute only a little to stocks, and do not enjoy a strong effect of compounding, since the proceeds of the early investments are taken out of the stock market as time goes on. Basu and Drew follow up on that assertion with a set of lifecycle strategies and their contrarian counterparts: whereas a the lifecycle plan starts high stock exposure and trails off near retirement, the contrarian ones will invest in bonds and cash early in life and move to stocks after a few years. They show that contrarian strategies have higher average returns, even at the low 25th percentile of returns. It's only at the bottom 5 or 10 percent where this is reversed. One problem with these empirical studies is isolating the effect of the glide path from rebalancing. It could be that a simple fixed allocation works plenty fine, and that selling winners and doubling down on losers is the fundamental driver of returns. Schleef and Eisinger compare lifecycle strategy with a number of fixed asset allocation schemes in Monte Carlo simulations and conclude that a 70% equity, 30% long term corp bonds does as well as all of the lifecycle funds. Finally, the earlier W Pfau paper offers a Monte Carlo simulation similar to Schleef and Eisinger, and runs final portfolio values through a utility function designed to calculate diminishing returns to more money. This seems like a good point, as the risk of your portfolio isn't all or nothing, but your first dollar is more valuable than your millionth. Pfau finds that for some risk-aversion coefficients, lifecycles offer greater utility than portfolios with fixed allocations. And Pfau does note that applying their strategies to the historical record makes a strong recommendation for 100 percent stocks in all but 5 years from 1940-2011. So maybe the best retirement allocation is good old low cost S&P index funds!",
"title": ""
},
{
"docid": "5a471ff2224383dc5a4b1d140d6501ee",
"text": "The methodology for divisor changes is based on splits and composition changes. Dividends are ignored by the index. Side note - this is why, in my opinion, that any discussion of the Dow's change over a long term becomes meaningless. Ignoring even a 2% per year dividend has a significant impact over many decades. The divisor can be found at http://wsj.com/mdc/public/page/2_3022-djiahourly.html",
"title": ""
},
{
"docid": "61a0389e9614cc542b0d2148ce23e79e",
"text": "Here is a list of threads in other subreddits about the same content: * [An alternative entrepreneur principle. | The Dismal Science](https://www.reddit.com/r/Economics/comments/79fl0a/an_alternative_entrepreneur_principle_the_dismal/) on /r/Economics with 1 karma (created at 2017-10-29 17:13:29 by /u/The_man_who_sold) ---- ^^I ^^am ^^a ^^bot ^^[FAQ](https://www.reddit.com/r/DuplicatesBot/wiki/index)-[Code](https://github.com/PokestarFan/DuplicateBot)-[Bugs](https://www.reddit.com/r/DuplicatesBot/comments/6ypgmx/bugs_and_problems/)-[Suggestions](https://www.reddit.com/r/DuplicatesBot/comments/6ypg85/suggestion_for_duplicatesbot/)-[Block](https://www.reddit.com/r/DuplicatesBot/wiki/index#wiki_block_bot_from_tagging_on_your_posts) ^^Now ^^you ^^can ^^remove ^^the ^^comment ^^by ^^replying ^^delete!",
"title": ""
},
{
"docid": "fbef7be29da184e019befb83c4726298",
"text": "If we assume constant volatility, gamma increases as the stock gets closer to the strike price. Thus, delta is increasing at a faster rate as the stock reaches closer to ITM because gamma is the derivative of delta. As the stock gets deeper ITM, the gamma will slow down as delta reaches 1 or -1 (depends if a call or a put). Thus, the value of the option will change depending upon the level of the delta. I am ignoring volatility and time for this description. See this diagram from Investopedia: Gamma",
"title": ""
},
{
"docid": "f93ae4aa6cff425d08d6816d9cb7ee3f",
"text": "I understand that ITM have little time value, so they will have small time decay(theta), but why OTM has a lesser theta than ATM? The Time value represents uncertainty. That uncertainty decreases the farther away from ATM you get (in either direction). At-the-money, there is roughly a 50% chance that the option expires worthless. As you get deeper in-the-money, the change that is expires worthless decreases, so there is less uncertainty (there is more certainty that the option will pay off). As you go deeper OTM, the probability that the option expires worthless increases, so there is also less uncertainty. At the TTM decreases, the uncertainty (theta) decreases as well, since there is less time for the option to cross the strike from either direction. Similarly, as volatility decreases, theta decreases, since low-volatility stocks have a less change of crossing the strike.",
"title": ""
},
{
"docid": "a039e10d0c4d9d7534162540396437ee",
"text": "\"1. (a) \"\"Stephen Kinzer: The True Flag of American Empire #051\"\" by Guadalajara Geopolitics Institute, published on 14 June 2017: http://guadalajarageopolitics.com/2017/06/14/stephen-kinzer-true-flag-american-empire-051/ YouTube link: https://www.youtube.com/watch?v=qXSMHR-sN1s SoundCloud link: https://soundcloud.com/guadalajara-geopolitics/stephen-kinzer-the-true-flag-of-american-empire-051 Stephen Kinzer: http://stephenkinzer.com (b) Read https://www.reddit.com/r/worldpolitics/comments/6feg5x/putin_interview_did_russia_interfere_in_the/dihhtkq (c) \"\"The CIA's Holy War: No espionage operation or covert action was deemed too extreme by a CIA that saw only friends or enemies\"\" by Stephen Kinzer, published in the June 2016 issue of American History: http://watson.brown.edu/news/2016/cias-holy-war-written-stephen-kinzer PDF: [http://watson.brown.edu/files/watson/imce/news/2016/CIA's Holy Cold War Kinzer.pdf](http://watson.brown.edu/files/watson/imce/news/2016/CIA%27s%20Holy%20Cold%20War%20Kinzer.pdf) American History magazine: http://www.historynet.com/magazines/american-history-magazine (d) \"\"Covert Action: A Systems Approach\"\" by Kristen N. Wood, published December 2014: http://calhoun.nps.edu/bitstream/handle/10945/44692/14Dec_Wood_Kristen.pdf Source: http://hdl.handle.net/10945/44692 2. Read https://www.reddit.com/r/worldpolitics/comments/5b9bza/the_political_system_of_the_usa_is_characterised/d9mq22q Source: #1 at https://www.reddit.com/r/worldpolitics/comments/5bpc5x/an_update_for_my_readers_by_peter_levenda/d9q9006 Via: #26 at https://www.reddit.com/r/Missing411/comments/41oph0/supernatural_abductions_in_japanese_folklore_by/cz3we2z 3. \"\"Jasun Horsley, host of The Liminalist podcast, interviews Peter Levenda about 'The Individuation Chamber' (The Liminalist #11.5), published on 22 April 2015 -- their discussion includes 'Americanism and homogeneity, 'Star Trek' and colonialism, psychology disguised as politics, weaponizing Islam, Eisenhower and Dulles, the sorcerer's apprentice'\"\": #4a at https://www.reddit.com/r/worldpolitics/comments/5bpc5x/an_update_for_my_readers_by_peter_levenda/ddlcuvl Weaponizing religion (religion as a weapon), nuclear power/atomic power, atomic/nuclear bomb explosion: Start at 40:20 (40 minutes and 20 seconds) Source + Much More: #7c at https://www.reddit.com/r/worldpolitics/comments/5bpc5x/an_update_for_my_readers_by_peter_levenda/dfmc7kj Via: https://www.reddit.com/r/worldpolitics/comments/5bpc5x/an_update_for_my_readers_by_peter_levenda/d9q9006 Via: #26 at https://www.reddit.com/r/Missing411/comments/41oph0/supernatural_abductions_in_japanese_folklore_by/cz3we2z 4. Visit (a) https://www.reddit.com/r/worldpolitics/comments/6iho4e/a_house_armed_services_panel_intends_to_create_a/dj6bhas (b) https://www.reddit.com/r/worldpolitics/comments/6hfhh0/take_a_globe_spin_it_and_point_with_a_finger_to/dixva87 (c) https://www.reddit.com/r/worldpolitics/comments/6feg5x/putin_interview_did_russia_interfere_in_the/dihhtkq\"",
"title": ""
},
{
"docid": "8f10343a8acf5d0ed5592b93d1a308df",
"text": "It's ok if you haven't fleshed out the ideas yet. It's partially why I'm asking questions. Something you said seemed incorrect and it's better to verify than assume. I'll check out Friedman's video when I have time, though I've read up on him a bit and find some of his theories hold up and some don't. Can't be specific ATM though.",
"title": ""
},
{
"docid": "0044b61fb390a15d42caa49119414285",
"text": "I have had similar thoughts regarding alternative diversifiers for the reasons you mention, but for the most part they don't exist. Gold is often mentioned, but outside of 1972-1974 when the US went off the gold standard, it hasn't been very effective in the diversification role. Cash can help a little, but it also fails to effectively protect you in a bear market, as measured by portfolio drawdowns as well as std dev, relative to gov't bonds. There are alternative assets, reverse ETFs, etc which can fulfill a specific short term defensive role in your portfolio, but which can be very dangerous and are especially poor as a long term solution; while some people claim to use them for effective results, I haven't seen anything verifiable. I don't recommend them. Gov't bonds really do have a negative correlation to equities during periods in which equities underperform (timing is often slightly delayed), and that makes them more valuable than any other asset class as a diversifier. If you are concerned about rate increases, avoid LT gov't bond funds. Intermediate will work, but will take a few hits... short term bonds will be the safest. Personally I'm in Intermediates (30%), and willing to take the modest hit, in exchange for the overall portfolio protection they provide against an equity downturn. If the hit concerns you, Tips may provide some long term help, assuming inflation rises along with rates to some degree. I personally think Tips give up too much return when equity performance is strong, but it's a modest concern - Tips may suit you better than any other option. In general, I'm less concerned with a single asset class than with the long term performance of my total portfolio.",
"title": ""
},
{
"docid": "e445a0592214b800d5a666495d7d54d3",
"text": "It's called correlation. I found this: http://www.forexrazor.com/en-us/school/tabid/426/ID/437424/currency-pair-correlations it looks a good place to start Similar types of political economies will correlate together, opposite types won't. Also there are geographic correlations (climate, language etc)",
"title": ""
},
{
"docid": "9079ee498ba4f1d27f37c3bc2a997928",
"text": "Someone already mentioned that this is a risk-reversal, but as an aside, in the vol market (delta-hedged options) this is a fundamental skew trade. (buying calls, selling puts or vice versa). Initially vega neutral, the greek that this trade largely isolates is vanna (dvega/dspot or ddelta/dvol).",
"title": ""
},
{
"docid": "fdc4bec833f6668910eaae4a1fc0b2ba",
"text": "VXX VZX XVIZ and there are plenty others correlated to market volatility if you want the wildest hedge, use VXX, it is also the most liquid",
"title": ""
},
{
"docid": "5b9bddfbc13053744ab668020e549954",
"text": "Yes that is the case for the public company approach, but I was referring to the transaction approach: Firm A and Firm B both have $100 in EBITDA. Firm A has $50 in cash, Firm B has $100 in cash. Firm A sells for $500, Firm B sells for $600. If we didn't subtract cash before calculating the multiple: Firm A: 5x Firm B: 6x If we DO subtract cash before calculating the multiple: Firm A: 4.5x Firm B: 5x So yea, subtracting cash does skew the multiple.",
"title": ""
}
] |
fiqa
|
8b46131ef342fd328a867154596ef7cf
|
TOCOM oil in USD
|
[
{
"docid": "b696977ed0be24dcb70a0a0d1312c22f",
"text": "TOCOM Crude is a cash-settled blend of Oman and Dubai crude oil, both quoted in USD. The daily settlement price is mark to market, but the final settlement price is based on reported prices from Dubai and Oman (or calculated in some cases with a known procedure), averaged and then converted to Yen using monthly average exchange rates as published by a reference bank (see Detailed Rules) You're trying to go all the way back and unfuddle quotes into a blend of USD-quoted oils. The correct procedure here would be to go with the Oman and Dubai prices in the first place (unless you're trying to arbitrage the TOCOM market). As to why they do it this way? It's a service. TOCOM takes on all the challenges to provide customers with a steady and consistent way of trading cash-oil. For physical oil, all you'd have to do is buy the blend on Dubai's and Oman's spot market. You trust TOCOM's price finding process, i.e. there will be no discrepancies between your TOCOM cash-oil and the Middle East physical oil. Edit: As to why Japan isn't buying WTI directly: There's a considerable cost of carry. WTI delivery location is Cushing, OK; there are pipelines but it's still a logistics act to get the oil to a port on the West Coast and then have it shipped to Japan. Dubai's delivery is at Jebel Ali (Persian Gulf), Omani crude can be shipped straight from Mina Al Fahal. Not only is it a shorter trip but also there are more shipping companies specialised in oil deliveries to the Asian hotspots. Why they pay in USD? Persian oil is highly sought after in nearly all of Asia's economies but there's little other exported goods from there. So naturally the market for currency crosses (AEDJPY, OMRJPY, AEDINR, OMRINR, etc.) is not that liquid. At least not as liquid as to make buying Persian oil a smooth deal. Anyway, both Dubai and Oman chose to follow Western practice to quote their contracts in USD and (maybe because of liquidity concerns) also to accept USD for payment only.",
"title": ""
}
] |
[
{
"docid": "10f1f5163224b18743d6c5c8c3dbfd22",
"text": "December, 7, 2011 ( 01:50 pm) :- Bullion are sparked at the late or and session of MCX & Comex. USA investors are not worried about the coming events because European leaders signals that IMF providing help for European countries who are facing financial crisis. Crude oil momentum also range bound whole day, a rising tension on the Iran exports resistance will trigger oil prices will at new high. Silver have strong resistance at $ 33.20 above this level it's trend bullish under this its trend totally down. Gold have strong resistance at $ 1742 above this trend totally bullish side & unless its in down trend.",
"title": ""
},
{
"docid": "949551126783dc387e3ca4d8f8389f3b",
"text": "What you want is the distribution yield, which is 2.65. You can see the yield on FT as well, which is listed as 2.64. The difference between the 2 values is likely to be due to different dates of updates. http://funds.ft.com/uk/Tearsheet/Summary?s=CORP:LSE:USD",
"title": ""
},
{
"docid": "19d03eebdf58ccc4e40479277b793021",
"text": "> Arguably, the dollar today is essentially backed by oil i.e. as economists say the 'petrodollar'. This isn't really true. The exchange rate between USD and a barrel of oil floats with the market whereas it was fixed with gold. Also by the nature of the way oil is consumed it doesn't make sense to think of it this way - gold retains state when used whereas oil is burnt up never to be seen again.",
"title": ""
},
{
"docid": "ca9c6e53f61bc171128389984cb3c149",
"text": "I think this could be a even bigger problem for us since dollar is not just the international curreny for oil but for like mostly everything. This trend could be pushed by china and russia for other stuff to which is terrible for US.",
"title": ""
},
{
"docid": "a52d39b622243a43eaec2c65193312cc",
"text": "This is no big deal, IMO. The only real advantage is that I can think of is that if oil is priced in your currency then you're not subject to foreign currency fluctuations dictating your energy costs. In the short term USD has been falling. If this trend continues and oil switches to yuan, then our energy will become more expensive.",
"title": ""
},
{
"docid": "80e061f28281f79fcdea24712b43a2ab",
"text": "\"US is the major oil consumer, and produces only about half as much - so the lower the prices, the better for it. As for the oil industry in the US - it will never fail since government just prints more money to prop it up regardless of its real economic effectiveness: it needs it to defang OPEC from being able to pull off another 1974 Oil Embargo. Hell, Gore even invented the \"\"global warming\"\" just for that purpose!\"",
"title": ""
},
{
"docid": "b2d42137aed0a277db3fba7aab67fa1b",
"text": "EFA must be bought and sold in US dollars. XIN allows people to buy and sell EFA in Canadian dollars without exposing their investment to unpredictable swings in the USD/CAD ratio. This is what's known as a currency-hedged instrument. Now, why the chart sums up to over 100% is anyone's guess. Presumably it's the result of a couple hundred rounding errors from all the components. If you view their most recent report, it also sums up to over 100%, but at least the EFA component is (sensibly) under 100%. P.S. I'm not seeing where it says there's only one holding. There's the primary holding, plus over 100 other cash holdings to effect the currency-hedging.",
"title": ""
},
{
"docid": "76f805fba133d2272947714245b4c446",
"text": "As the value of a currency declines, commodities, priced in that currency, will rise. The two best commodities to see a change in would be oil and gold.",
"title": ""
},
{
"docid": "bac039338b7d35deb88310614fc1cdde",
"text": "Swaps form backstop to a shit load of int'l trade. Liquidity of currency is a huge factor in being a govt reserve currency, which USD currently has the VAST majority of holdings. This agreement is a shove against USE dominance in trade settlements, which is negative. Also challenges us general capital markets dominance a bit",
"title": ""
},
{
"docid": "7ba990649e6c9220ec937aa97e31bcd2",
"text": "\"No. Suppose you have 100 Canadian dollars and the exchange rate is 2 CAD = 1 USD. You use your 100 CAD to purchase 50 USD (in your bank account that is in USD). Some time later the Canadian dollar grows stronger, so that now 1 CAD = 1 USD. If you now withdraw your 50 USD and get Canadian dollars, you will receive 50 CAD. You have lost half your money. If you want to make money on currency exchange rates (which is a risky plan), you should buy the currency that is cheap (i.e., \"\"weak\"\"). If, say, oil is very cheap, you don't make money by selling oil; you buy it and sell it later when the price goes up. Likewise, if the Canadian dollar isn't worth much and the US dollar is, you should buy Canadian dollars, not US dollars, hoping to sell them later when the exchange rate is more favorable. See also this similar question.\"",
"title": ""
},
{
"docid": "b9b01c730b07238a85a5411cde684828",
"text": "\"That oil is traded in USD makes for extra demand and thus a stronger dollar with more purchasing power. It's not really economics that are the issue though - many might argue a weakened dollar might help the US economy (cheaper exports). The real issue is power. These gold backed securities make it so that certain countries can get around US sanctions. Not to mention that controlling the currency that oil is traded in means the US can devalue their currency to gain an advantage in the event of a shortage. Also, because petroleum is traded in dollars, this means treasury bonds are a natural place to store wealth for oil producers. High demand for these bonds makes it cheap for the US government to borrow and easier to make interest payments thus making T-Bonds a \"\"safe\"\" asset.\"",
"title": ""
},
{
"docid": "317721c16afa000cc9c084a0484496f7",
"text": "You can buy the exchange traded fund ETFS WTI Crude Oil (CRUD), amongst other ETFS products. http://funds.ft.com/uk/Tearsheet/Summary?s=CRUD:LSE:USD Note these funds do not 'jump' when the crude oil futures contracts are in contango (e.g. June contract is priced higher than May) and the futures roll-over, as they do monthly. When this happens the EFTS continues with no movement. Currently May is $52.85 and June is $54.15 (so in contango). LSE:CRUD is $13.40 and if the crude oil futures rolled-over it would carry straight on at that value. For this reason one should be cautious buying and holding LSE:CRUD longterm.",
"title": ""
},
{
"docid": "0f18cbce1637a4bb01a6725d1a3c5b52",
"text": "China does not use dollar for their largest oil buy, Russia, Iran. They also have yuan swap agreement with their large trading partners like Korea, japan, EU. Basically, the only trade that will be critically affected will be north america and latin america. China's critical trade in Eurasia are all in non dollar already. China has built, its own international payment system, central bank swap agreements, SWIFT alternative, largest commodity market, and various free trade agreements and zones. 20% of US import is chinese goods, mainly consumer product and electrical machines. So that will be interesting. https://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_China",
"title": ""
},
{
"docid": "4f8847ee03e084d76b067e940cd6d7e1",
"text": "\"It's standard to price oil in US$. That means that if the US$ gets stronger, the prices of oil drops even if its \"\"intrinsic value\"\" remains constant. Same thing happens for other commodities, such as gold. Think of the oil price in barrels/$. If the denominator (value of the $) goes up, then the ratio tends to go down.\"",
"title": ""
},
{
"docid": "11ae7e9ec09f2cb9a371d6f336c3dd6a",
"text": "Then, is it possible to deposit rubles at the same ATM to get USD in my account at the same rate? No this is not possible. Generally deposits into accounts outside country and not offered.",
"title": ""
}
] |
fiqa
|
b06ea41d5083ceaca9f7f5e31baaa5a0
|
Why are U.S. Treasury interest rates are so low vs. other nearly risk-free rates?
|
[
{
"docid": "4bc4149facdd396eff188dbc9a9af5be",
"text": "As I'm sure you are reading in Hull's classic, the basic valuation of bonds depends on the chance of entity defaulting on those bonds. Let's start with just looking at the US. The United States has a big advantage over corporations in issuing debt as it also prints the same currency that the debt is denominated in. This makes it much easier not to default on your debt as you can always print more money to pay it. Printing too much currency would cause inflation lowering the value of debt, but this would also lower the value of US corporate debt as well. So you can think of even the highest rated corporate bonds as having the same rate as government debt plus a little extra due to the additional default risk of the corporation. The situation with other AA rated governments is more complicated. Most of those governments have debt denominated in their local currency as well so it may seem like they should all have similar rates. However, some governments have higher and some actually have lower rates than the United States. Now, as above, some of the difference is due to the possible need of printing too much currency to cover the debt in crisis and now that we have more than one country to invest in the extra risk of international money flowing out of the country's bonds. However, the bigger difference between AA governments rates depends more on money flow, central banks and regulation. Bonds are still mostly freely traded instruments that respond to supply and demand, but this supply and demand is heavily influenced by governments. Central banks buy up large portions of the debt raising demand and lowering rates. Regulators force banks to hold a certain amount of treasuries perhaps inflating demand. Finally, to answer your question the United States has some interesting advantages partially just due to its long history of stability, controlled inflation and large economy making treasuries valuable as one of the lowest risk investments. So its rates are generally on the low end, but government manipulation can still mean that it is not necessarily the lowest.",
"title": ""
}
] |
[
{
"docid": "c3ad742e1267bbc34a7d060d900beae9",
"text": "\"True, absolutely safe are only death and taxes. Apparently [US treasuries](https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield) yield far less than 3,5-4%, but I guess that's as \"\"100% safe\"\" as it gets. However, best I could find while talking to various banks was a reverse convertible bond that yields 3,5% per year, tax excluded. Worst case scenario: 1) I got all my money back and gained 3,5% for one year. 2) after a few years, I find myself with pretty valuable shares and still cashed in the yearly 3,5%. I was wondering if I got lucky with that, or if there are better things out there and if yes, where I should look. Honestly, in the age of negative interests, I'm more than happy to get enough interest to counter inflation.\"",
"title": ""
},
{
"docid": "d9ff22fad222bb44d548c34d3f973584",
"text": "Yes, the interest rate on a Treasury does change as market rates change, through changes in the price. But once you purchase the instrument, the rate you get is locked in. The cashflows on a treasury are fixed. So if the market rate increase, the present value of those future cashflows decreases, so the price of the treasury decreases. If you buy the bond after this happens, you would pay a lower price for the same fixed cashflows, hence you will receive a higher rate. Note that once you purchase the treasury instrument, your returns are locked in and guaranteed, as others have mentioned. Also note that you should distinguish between Treasury Bills and Treasury Bonds, which you seem to use interchangeably. Straight from the horse's mouth, http://www.treasurydirect.gov/indiv/products/products.htm: Treasury Bills are short term securities with maturity up to a year, Treasury Notes are medium term securities with maturity between 1 and 10 years, and Treasury Bonds are anything over 10 years.",
"title": ""
},
{
"docid": "8581237521e013efb99dba1ca0c48598",
"text": "Because giving someone a loan and paying them to take it isn't a loan anymore. I'll grant you, some of the treasury bill auctions did slip below 0% -- people paid in slightly more than what the bill would pay out. In as much as this was done by actual investors (and not afore-mentioned helicopter Ben Bernanke keeping the printing presses running hot all night), it was major accounts fearful of the euro disintegrating and banks crashing, and so on, and needing a safe spot to stick their cash for a couple months. Where the Fed is concerned, that interest rate he's referring to is lending they do to banks. So, how much would you take if you ran a bank and the Fed offered to pay you to take their money? A billion? A trillion? As much as you could cram in your vaults, shove in your pockets, and stuff down your favorite teller's blouse? Yea, me too.",
"title": ""
},
{
"docid": "33580f0327e95b794853dd6c811a609b",
"text": "Generally, if you watch for the detail in the fine print, and stay away from non-FDIC insured investments, there is little difference, so yes, pick the highest you can get. The offered interest rate is influenced by what the banks are trying to accomplish, and how their current and desired customer base thinks. Some banks have customer bases with very conservative behavior, which will stick with them because they trust them no matter what, so a low interest rate is good enough. The disadvantage for the bank is that such customers prefer brick-and-mortar contact, which is expensive for the bank. Or maybe the bank has already more cash than they need, and has no good way to invest it. Other banks might need more cash flow to be able to get stronger in the mortgage market, and their way of getting that is to offer higher interest rates, so new customers come and invest new money (which the bank in turn can then mortgage out). They also may offer higher rates for online handling only. Overall, there are many different ways to make money as a bank, and they diversify into different niches with other focuses, and that comes with offering quite different interest rates.",
"title": ""
},
{
"docid": "cfdc52a2cfc44ce0064278373b4b6621",
"text": "\"If you invest in a foreign bank you are subject to their financial rules and regulations. If you put your money with their CD it will be converted to UAH (grivna) and you will be paid back in UAH, which introduces the exchange rate risk. FDIC is not the only reason why a CD in a US bank pays a lower interest, but it could be seen as a contributing factor. It all comes down to risk and what the bank is willing to pay for your money, when a bank issues a CD they are entering the debt market and competing against other banks, governments, or anyone looking for money. If the yield from lending to one bank is the same as the yield of another, the logical choice would be whichever loan is less risky. So in order for the riskier bank to receive loans they must entice investors by offering a greater rate of return. In addition, if a bank isn't looking for loans they might be less inclined to pay for them. - See \"\"What is the “Bernanke Twist” and “Operation Twist”? What exactly does it do?\"\" If your looking to invest in the CD's of foreign banks I would suggest doing research on their regulations. Especially if and how your money is protected in the event the bank goes bust.\"",
"title": ""
},
{
"docid": "e6d9456ced95d82d4b55a30dcd8ae546",
"text": "Russia has become more risky as an investment, thus investors, basically the market, wants to be paid more for investing in or owning those bonds. As yields go up, prices go down. So right now you can buy a low priced Russian bond with a high yield because the market views the risk involved as higher than risks involved in other similar securities.",
"title": ""
},
{
"docid": "d3bae8e3b801de953c6ba778740f8d5c",
"text": "\"you want more information on what? The general bond market? This article is getting at something different, but the first several pages are general background info on the corporate bond market. http://home.business.utah.edu/hank.bessembinder/publications/transparencyandbondmarket.pdf If you are trying to relate somehow the issue of federal debt ( a la treasuries) to corporate debt you will find that you are jumping to a lot of conclusions. Debt is not exactly currency, only the promise of repayment at a certain date in the future. The only reason that U.S. treasuries ( and those of certain other highly rated countries ) is interchangeable is because they are both very liquid and have very low risk. There is very little similarity to this in the corporate bond market. Companies are no where near to the risk level of a government (for one they can't print their own money) and when a corporation goes bankrupt it's bondholder are usually s.o.l (recovery rates hover at around 50% of the notional debt amount). This is why investors demand a premium to hold corporate debt. Now consider even the best of companies, (take IBM ) the spread between the interest the government must pay on a treasury bond and that which IBM must pay on a similar bond is still relatively large. But beyond that you run into a liquidity issue. Currency only works because it is highly liquid. If you take the article about Greece you posted above, you can see the problem generated by lack of liquidity. People have to both have currency and be willing to accept currency for trade to occur. Corporate bond are notoriously illiquid because people are unwilling to take on the risk involved with holding the debt (there are other reasons, but I'm abstracting from them). This is the other reason treasuries can be used as \"\"currency\"\" there is always someone willing to take your treasury in trade (for the most part because there is almost zero risk involved). You would always be much more willing to hold a treasury than an equivalent IBM bond. Now take that idea down to a smaller level. Who would want to buy the bonds issued by the mom and pop down the street? Even if someone did buy them who would in turn take these bonds in trade? Practically speaking: no one would. They have no way to identify the riskiness of the bond and have no assurance that there would be anyone willing to trade for it in the future. If you read the whole post by the redditor from your first link this is precisely why government backed currency came about, and why the scenario that I think you are positing is very unlikely.\"",
"title": ""
},
{
"docid": "e5416a1c34543f185d3e43efc655ef62",
"text": "As Sean pointed out they usually mean LIBOR or the FFR (or for other countries the equivalent risk free rate of interest). I will just like to add on to what everyone has said here and will like to explain how various interest rates you mentioned work out when the risk free rate moves: For brevity, let's denote the risk free rate by Rf, the savings account interest rate as Rs, a mortgage interest rate as Rmort, and a term deposit rate with the bank as Rterm. Savings account interest rate: When a central bank revises the overnight lending rate (or the prime rate, repo rate etc.), in some countries banks are not obliged to increase the savings account interest rate. Usually a downward revision will force them to lower it (because they net they will be paying out = Rf - Rs). On the other hand, if Rf goes up and if one of the banks increases the Rs then other banks may be forced to do so too under competitive pressure. In some countries the central bank has the authority to revise Rs without revising the overnight lending rate. Term deposits with the bank (or certificates of deposit): Usually movements in these rates are more in sync with Rf than Rs is. The chief difference is that savings account offer more liquidity than term deposits and hence banks can offer lower rates and still get deposits under them --consider the higher interest rate offered by the term deposit as a liquidity risk premium. Generally, interest rates paid by instruments of similar risk profile that offer similar liquidity will move in parallel (otherwise there can be arbitrage). Sometimes these rates can move to anticipate a future change in Rf. Mortgage loan rates or other interests that you pay to the bank: If the risk free rate goes up, banks will increase these rates to keep the net interest they earn over risk free (= Δr = Rmort - Rf) the same. If Rf drops and if banks are not obliged to decrease loan rates then they will only do so if one of the banks does it first. P.S:- Wherever I have said they will do so when one of the banks does it first, I am not referring to a recursion but merely to the competitive market theory. Under such a theory, the first one to cut down the profit margin usually has a strong business incentive to do so (e.g., gain market share, or eliminate competition by lowering profit margins etc.). Others are forced to follow the trend.",
"title": ""
},
{
"docid": "c5f637de23473422719e110e6896e210",
"text": "You're mixing up two different concepts: low-risk and recession-proof. I'll assume I don't need to explain risk: there is always risk, regardless what form you keep your assets in. With bonds, the interest rate is supposed to reflect the risk. If a company offers bonds with too low an interest rate for the risk level, few people will buy them. While if a company offers bonds with too high an interest rate for the level of risk, they are gypping themselves. So a bond is a slightly more transparent investment from a risk assessment perspective, but that doesn't mean the risk is necessarily low: if you buy a bond with a 20% effective annual yield, that means there is quite a high risk that the underlying company will fold (unless inflation is in the double-digit range as well, in which case a 20% yield is not that much). Whereas with a stock, no parameter directly tells you anything about the risk. Recession-proof is not the same thing as low-risk. Recession-proof refers to investing in (or holding debt for) industries that perform better in a recession. http://www.investopedia.com/articles/stocks/08/industries-thrive-on-recession.asp.",
"title": ""
},
{
"docid": "1f73dc803fba81d5dfb602b8038cccdb",
"text": "It can be zero or negative given the current market conditions. Any money parked with treasury bonds is 100% risk free. So if I have a large amount of USD, and need a safe place to keep, then in today's environment even the banks (large as well) are at risk. So if I park my money with some large bank and that bank goes bankrupt, my money is gone for good. After a long drawn bankruptcy procedure, I may get back all of it or some of it. Even if the bank does not go bankrupt, it may face liquidity crises and I may not be able to withdraw when I want. Hence it's safer to keep it in Treasury bonds even though I may not gain any interest, or even lose a small amount of money. At least it will be very safe. Today there are very few options for large investors (typically governments and institutional investors.) The Euro is facing uncertainty. The Yuan is still regulated. There is not enough gold to buy (or to store it.) Hence this leads towards the USD. The very fact that USD is safe in today's environment is reflected in the Treasury rates.",
"title": ""
},
{
"docid": "731bd197a7cbfbb1f1d38f9348447847",
"text": "\"Its because of the economic uncertainty in the world. They are the \"\"risk-free\"\" investment as it is an almost guaranteed return if you exclude inflation and US gov't defaulting. A lot of people are afraid to invest elsewhere given the current economic climate. The yield on bonds is also low due to government intervention. Quantitative easing 1 and 2 and operation twist has forced yield this low, as that is what the government wants.\"",
"title": ""
},
{
"docid": "b605a216befe7244a88edea45dbd0315",
"text": "\"Let's talk interest rates on your junk bonds. Even after all that the US has been through (and is still going through), the United States dollar is widely regarded as one of the safest safe havens for your money. As such it serves as a de facto baseline against which all other investments can be measured, the bar everyone has to pass: if you could earn 4% on a 5-year US Treasury bond, or earn 4% on anything else over the next 5 years, you pick the Treasury bond. In many ways this means that the interest rate on a Treasury bond is the closest single measure we have to the price of money all by itself. If someone is loaning you money, they could be loaning it to the Treasury instead; they are losing out by making this loan to you, and must charge you at least this rate just to break even. But most people/governments/countries aren't as credit-worthy as the US Treasury. A few are (the US treasury isn't magical, after all, just really good at what it does), but generally they are not. There is a possibility when loaning money to these entities that you will not get your money back. That is risk. All entities have some risk (even the US treasury!), and some have more than others; \"\"junk bonds\"\" have a somewhat elevated level of this risk. Now, you don't just take a risk on for free (unless you're being charitable or something, but I hope you can find better beneficiaries of charity than the average junk bond). You need to be compensated for that risk. Lenders will demand compensation commensurate with that risk - or they will just walk away without making any loans or buying any bonds because it's not worth it. The difference between the interest rate on a US Treasury bond and the interest rate on another bond, such as a junk bond, is the risk premium - the cost of carrying that risk. Therefore you can see that the interest rate on a junk bond is the price of money plus the risk premium. Now, the Federal Reserve adjusts the price of money from time to time, by buying and selling US Treasury bonds until the price is something they like. This means that one component of interest rate on a junk bond is the interest rate on the US Treasury bond, and it is effectively controlled by the Federal Reserve (through that layer of indirection). The other component of the interest rate on a junk bond is the risk premium. It's not generally possible to know in advance whether or not some company will actually default. People have to guess, and decide how comfortable they are taking that risk. This means that risk is more expensive (and interest rates are higher) when they think the companies in question are going through some hard times, and risk will also be more expensive when people decide that they can't take as many risks (perhaps they've already lost some money and need to take additional steps to protect the rest). It's definitely very hard for an individual to decide what the risk on a particular bond is. The good news is that you generally don't have to. There are a bunch of rich jerks, hedge funds, retirement funds, insurance companies, and other investment entities out there who spend all day looking at things like bonds, trying to estimate the risk. Their willingness to exploit minuscule differences between the interest rate on a bond and the real risk means that the average bond on the market will be fairly priced, according to what all those people think. Plenty of them can still be wrong, mind you (cf. mortgage-backed securities) but in the general case the price of any security reflects all the information everyone in the world has on it on average, so if you're wrong you're in good company. When you buy a nice diversified bond fund, you have access to a bunch of bonds at a pretty-standard price. So that's interest rates for you. But you asked about prices. As it turns out, they're the same thing! - just expressed slightly differently. One way or another a bond is essentially meant to be a stream of payments worth a certain amount in the end - this is why you'll hear them referred to sometimes as a \"\"fixed-income security\"\". The interest rate is essentially the difference between the price you pay now, and the value you receive later, except expressed as a rate. Technically, you could structure the bonds differently (e.g. does the bond pay little bits of interest as you go along, or just pay one big lump sum in the end?) but you can use Math to convert between these two situations, and figure out how much money is worth which when, so it doesn't really matter. Anyway. This means that rising interest rates means lower bond prices on bonds you already own (and falling interest rates means higher bond prices). So if the Federal Reserve increases interest rates, the face value of your bond funds will fall. Also, if people think that the companies issuing the bonds are too risky, the face value of those bonds will also fall. (You were probably expecting the latter effect, though.) Mind you, you will still get the same amount of future money out of them as you would otherwise: that's why they're fixed-income securities. However, a higher interest rate means \"\"I can get more money in the future for less money now\"\", and so people will be willing to pay you less for your bond in the present. This is known as interest rate risk. It is higher on longer term bonds, because those have more time to earn interest.\"",
"title": ""
},
{
"docid": "65ee8fe1e4d415e65ad72de915f56166",
"text": "I would also like to have this discussed, alongside the issue that the US has gone into some type of [recession](https://upload.wikimedia.org/wikipedia/commons/c/c0/US_Treasuries_to_Federal_Funds_Rate.png) roughly every ten year. So with the prospect of a possible recession with a close to 0% cash rate looming, what tools will the FED employ to keep Banks borrowing while maintaining inflation rates?",
"title": ""
},
{
"docid": "3ab2573cad4bde03574e290f5e8ed6ac",
"text": "\"I think this is a good question with no single right answer. For a conservative investor, possible responses to low rates would be: Probably the best response is somewhere in the middle: consider riskier investments for a part of your portfolio, but still hold on to some cash, and in any case do not expect great results in a bad economy. For a more detailed analysis, let's consider the three main asset classes of cash, bonds, and stocks, and how they might preform in a low-interest-rate environment. (By \"\"stocks\"\" I really mean mutual funds that invest in a diversified mixture of stocks, rather than individual stocks, which would be even riskier. You can use mutual funds for bonds too, although diversification is not important for government bonds.) Cash. Advantages: Safe in the short term. Available on short notice for emergencies. Disadvantages: Low returns, and possibly inflation (although you retain the flexibility to move to other investments if inflation increases.) Bonds. Advantages: Somewhat higher returns than cash. Disadvantages: Returns are still rather low, and more vulnerable to inflation. Also the market price will drop temporarily if rates rise. Stocks. Advantages: Better at preserving your purchasing power against inflation in the long term (20 years or more, say.) Returns are likely to be higher than stocks or bonds on average. Disadvantages: Price can fluctuate a lot in the short-to-medium term. Also, expected returns are still less than they would be in better economic times. Although the low rates may change the question a little, the most important thing for an investor is still to be familiar with these basic asset classes. Note that the best risk-adjusted reward might be attained by some mixture of the three.\"",
"title": ""
},
{
"docid": "020d22d766952e6008bf848df7c060d2",
"text": "\"I'll answer your question, but first a comment about your intended strategy. Buying government bonds in a retirement account is probably not a good idea. Government bonds (generally) are tax advantaged themselves, so they offer a lower interest rate than other types of bonds. At no tax or reduced tax, many people will accept the lower interest rate because their effective return may be similar or better depending, for example, on their own marginal tax rate. In a tax-advantaged retirement account, however, you'll be getting the lower interest without any additional benefit because that account itself is already tax-advantaged. (Buying bonds generally may be a good idea or not - I won't comment on that - but choose a different category of bonds.) For the general question about the relationship between the Fed rate and the bond rate, they are positively correlated. There's not direct causal relationship in the sense that the Fed is not setting the bond rate directly, but other interest bearing investment options are tied to the Fed rate and many of those interest-bearing options compete for the same investor dollars as the bonds that you're reviewing. That's at a whole market level. Individual bonds, however, may not be so tightly coupled since the creditworthiness of the issuing entity matters a lot too, so it could be that \"\"bond rates\"\" generally are going up but some specific bonds are going down based on something happening with the issuer, just like the stock market might be generally going up even as specific stocks are dropping. Also keep in mind that many bonds trade as securities on a secondary market much like stocks. So I've talked about the bond rate. The price of the bonds themselves on the secondary market generally move opposite to the rate. The reason is that, for example, if you buy a bond at less than face value, you're getting an effective interest rate that's higher because you get the same sized incremental payments of interest but put less money into the investment. And vice versa.\"",
"title": ""
}
] |
fiqa
|
722e70707b20a50cb0968d162c568d28
|
As an investing novice, what to do with my money?
|
[
{
"docid": "1523b155b7a65d32aa8df6599e2e5fd1",
"text": "I'd keep the risk inside the well-funded retirement accounts. Outside those accounts, I'd save to have a proper emergency fund, not based on today's expenses, but on expenses post house. The rest, I'd save toward the downpayment. 20% down, with a reserve for the spending that comes with a home purchase. It's my opinion that 3-5 years isn't enough to put this money at risk.",
"title": ""
},
{
"docid": "576946d9e5b614b7760a6fa9ea847863",
"text": "3-5 years is long enough of a timeframe that I'd certainly invest it, assuming you have enough (which $10k is). Even conservatively you can guess at 4-5% annual growth; if you invest reasonably conservatively (60/40 mix of stocks/bonds, with both in large ETFs or similar) you should have a good chance to gain along those lines and still be reasonably safe in case the market tanks. Of course, the market could tank at any time and wipe out 20-30% of that or even more, even if you invest conservatively - so you need to think about that risk, and decide if it's worth it or not. But, particularly if your 3-5 year time frame is reasonably flexible (i.e., if in 2019 the market tanks, you can wait the 2-3 years it may take to come back up) you should be investing. And - as usual, the normal warnings apply. Past performance is not a guarantee of future performance, we are not your investment advisors, and you may lose 100% of your investment...",
"title": ""
},
{
"docid": "8dcbe5ddda15574ace112c0a790e58a5",
"text": "A lot of people on here will likely disagree with me and this opinion. In my opinion the answer lies in your own motives and intentions. If you'd like to be more cognizant of the market, I'd just dive in and buy a few companies you like. Many people will say you shouldn't pick your own stocks, you should buy an index fund, or this ETF or this much bonds, etc. You already have retirement savings, capital allocation is important there. You're talking about an account total around 10% of your annual salary, and assuming you have sufficient liquid emergency funds; there's a lot of non-monetary benefit to being more aware of the economy and the stock market. But if you find the house you're going to buy, you may have to liquidate this account at a time that's not ideal, possibly at a loss. If all you're after is a greater return on your savings than the paltry 0.05% (or whatever) the big deposit banks are paying, then a high yield savings account is the way I'd go, or a CD ladder. Yes, the market generally goes up but it doesn't ALWAYS go up. Get your money somewhere that it's inured and you can be certain how much you'll have tomorrow. Assuming a gain, the gain you'll see will PALE in comparison to the deposits you'll make. Deposits grow accounts. Consider these scenarios if you allocate $1,000 per month to this account. 1) Assuming an investment return of 5% you're talking about $330 return in the first year (not counting commissions or possible losses). 2) Assuming a high yield savings account at 1.25% you're talking about $80 in the first year. Also remember, both of these amounts would be taxable. I'll admit in the event of 5% return you'll have about four times the gain but you're talking about a difference of ~$250 on $12,000. Over three to five years the most significant contributor to the account, by far, will be your deposits. Anyway, as I'm sure you know this is not investment advice and you may lose money etc.",
"title": ""
},
{
"docid": "841beca334136f5374c2c7e3eac18d71",
"text": "I'm normally not a fan of partitioning investment money into buckets but your case may be the clearest case for it I've seen in awhile. Your income and saving is good and you have two clearly defined goals of retirement saving and saving for a house each with very different time frames ~30 years and 3-5 years respectively. For medium term money, like saving for a house, just building up cash is not actually a bad idea. This minimizes the chance that a market crash will happen at the same time you need to withdraw the money. However, given you have the means to take more risk a generally smarter scheme would be to invest much of the money in a broad liquid bond funds with a somewhat lower percentage in stocks and then reduce the amount of stock each year as you get closer even moving some into cash. This gives reasonable positive expected return while lowering the risk of having to sell during a crisis as the time to purchase gets shorter and shorter. The retirement money should be invested for the long term as usual. A majority in low-fee index stock funds/etfs is the standard advice for good reason.",
"title": ""
}
] |
[
{
"docid": "8b473900266d99d7287e105b68cc01dd",
"text": "\"You could end up with nothing, yes. I imagine those that worked at Enron years ago if their 401(k) was all in company stock would have ended up with nothing to give an example here. However, more likely is for you to end up with less than you thought as you see other choices as being better that with the benefit of hindsight you wish you had made different choices. The strategies will vary as some people will want something similar to a \"\"set it and forget it\"\" kind of investment and there may be fund choices where a fund has a targeted retirement date some years out into the future. These can be useful for people that don't want to do a lot of research and spend time deciding amongst various choices. Other people may prefer something a bit more active. In this case, you have to determine how much work do you want to do, do you want to review fund reviews on places like Morningstar, and do periodic reviews of your investments, etc. What works best for you is for you to resolve for yourself. As for risks, here are a few possible categories: Time - How many hours a week do you want to spend on this? How much time learning this do you want to do in the beginning? While this does apply to everyone, you have to figure out for yourself how much of a cost do you want to take here. Volatility - Some investments may fluctuate in value and this can cause issues for some people as it may change more than they would like. For example, if you invest rather aggressively, there may be times where you could have a -50% return in a year and that isn't really acceptable to some people. Inflation - Similarly to those investments that vary wildly there is also the risk that with time, prices generally rise and thus there is something to be said for the purchasing power of your investment. If you want to consider this in more detail consider what $1,000,000 would have bought 30 years ago compared to now. Currency risk - Some investments may be in other currencies and thus there is a risk of how different denominations may impact a return. Fees - How much do your fund's charge in the form of annual expense ratio? Are you aware of the charges being taken to manage your money here?\"",
"title": ""
},
{
"docid": "6913ee4ec4b8cc12d1a45e16e86dc931",
"text": "\"E) Spend a small amount of that money on getting advice from a paid financial planner. (Not a broker or someone offering you \"\"free\"\" advice; their recommendations may be biased toward what makes them the most money). A good financial planner will talk to you about your plans and expectations both short and long term, and about your risk tolerance (would a drop in value panic you even if you know it's likely to recover and average out in the long run, that sort of thing), and about how much time and effort you want to put into actively managing your portfolio. From those answers, they will generate an initial proposed plan, which will be tested against simulations of the stock market to make sure it holds up. Typically they'll do about 100 passes over the plan to get a sense of its probable risk versus growth-potential versus volatility, and tweak the plan until the normal volatility is within the range you've said you're comfortable with while trying to produce the best return with the least risk. This may not be a perfect plan for you -- but at the very least it will be an excellent starting point until you decide (if you ever do decide) that you've learned enough about investing that you want to do something different with the money. It's likely to be better advice than you'll get here simply because they can and will take the time to understand your specific needs rather than offering generalities because we're trying to write something that applies to many people, all of whom have different goals and time horizons and financial intestinal fortitude. As far as a house goes: Making the mistake of thinking of a house as an investment is a large part of the mindset that caused the Great Recession. Property can be an investment (or a business) or it can be something you're living in; never make the mistake of putting it in both categories at once. The time to buy a house is when you want a house, find a house you like in a neighborhood you like, expect not to move out of it for at least five years, can afford to put at least 20% down payment, and can afford the ongoing costs. Owning your home is not more grown-up, or necessarily financially advantageous even with the tax break, or in any other way required until and unless you will enjoy owning your home. (I bought at age 50ish, because I wanted a place around the corner from some of my best friends, because I wanted better noise isolation from my neighbors, because I wanted a garden, because I wanted to do some things that almost any landlord would object to, and because I'm handy enough that I can do a lot of the routine maintenance myself and enjoy doing it -- buy a house, get a free set of hobbies if you're into that. And part of the reason I could afford this house, and the changes that I've made to it, was that renting had allowed me to put more money into investments. My only regret is that I didn't realise how dumb it was not to max out my 401(k) match until I'd been with the company for a decade ... that's free money I left on the table.)\"",
"title": ""
},
{
"docid": "1bf0ea6249344325dfb4fe3bbd68350f",
"text": "If you want to invest in stocks, bonds and mutual funds I would suggest you take a portion of your inheritance and use it to learn how to invest in this asset class wisely. Take courses on investing and trading (two different things) in paper assets and start trading on a fantasy exchange to test and hone your investment skills before risking any of your money. Personally I don't find bonds to have a meaningful rate of return and I prefer stocks that have a dividend over those that don't. Parking some of your money in an IRA is a good strategy for when you do not see opportunities to purchase cashflow-positive assets right away; this allows you to wait and deploy your capital when the opportunity presents itself and to educate yourself on what a good opportunity looks like.",
"title": ""
},
{
"docid": "2ebd49168456a4ffc4b7f3ccd5ef1f1a",
"text": "\"There's not nearly enough information here for anyone to give you good advice. Additionally, /r/personalfinance will probably be a bit more relevant and helpful for what you're asking. Aside from that, if you don't know what you're doing, stay out of currency trading and mutual funds. If you don't care about losing your money, go right ahead and play in some markets, but remember there are people paid millions of dollars/year who don't make consistent profit. What are the chances a novice with no training will perform well? My $.02, pay your debt, make a general theory about the economy a year from now (e.g. \"\"Things will be worse in Europe than they are now\"\") and then invest your money in an index fund that matches that goal (e.g. Some sort of Europe-Short investment vehicle). Reassess a year from now and don't stress about it.\"",
"title": ""
},
{
"docid": "22b3b000de1845fc6e8c7e67f098f7dc",
"text": "\"Sure. For starters, you can put it in a savings account. Don't laugh, they used to pay noticeable interest. You know, back in the olden days. You could buy an I-bond from Treasury Direct. They're a government savings bond that pays a specified amount of interest (currently 0%, I believe), plus the amount of the inflation rate (something like 3.5% currently, I believe). You don't get paid the money -- the I-bond grows in value till you sell it. You can open a discount brokerage account, and buy 1 or more shares of stock in a company you like. Discount brokerages generally have a minimum of $500 or so, but will waive that if you set the account up as an IRA. Scot Trade, for instance. (An IRA, in case you didn't know, is a type of account that's tax free but you can't touch it till you turn 59 1/2. It's meant to help you save for retirement.) Incidentally, watch out of \"\"small account\"\" fees that some brokerages might charge you. Generally they're annual or monthly charges they'd charge you to cover their costs on your account -- since they're certainly not going to make it in commissions. That IRA at Scot Trade is no-fee. Speaking of commissions, those will be a big chunk of that $100. It'll be like $7-$10 to buy that stock -- a pretty big bite. However, many of these discount brokerages also offer some mutual funds for no commission. Those mutual funds, in turn, have minimums too, but once again if your account's an IRA many will waive the minimum or set it low -- like $100.\"",
"title": ""
},
{
"docid": "252851bb2da3621d7ad059dcc0ae87fb",
"text": "\"Say you have $15,000 of capital to invest. You want to put the majority of your capital into low risk investments that will yield positive gains over the course of your working career. $5,000: Government bonds and mutual funds, split how you want. $9,500: Low risk, trusted companies with positive historical growth. If the stock market is very unfamiliar for you, I recommend Google Finance, Yahoo Finance, and Zack's to learn about smart investments you can make. You can also research the investments that hedge fund managers and top investors are making. Google \"\"Warren Buffett or Carl Icahn portfolio\"\", and this will give you an idea of stocks you can put your money into. Do not leave your money into a certain company for more than 25 years. Rebalance your portfolio and take the gains when you feel you need them. You have no idea when to take your profits now, but 5 years from now, you will be a smart and experienced investor. A safe investment strategy to start is to put your money into an ETF that mimics the S&P 500. Over the past 20 years, the S&P 500 has yielded gains of about 270%. During the financial crisis a few years back, the S&P 500 had lost over 50% of its value when it reached its low point. However, from when it hit rock bottom in 2009, it has had as high percentage gains in six years as it did in 12 years from 1995 to 2007, which about 200%. The market is very strong and will treat your money well if you invest wisely. $500: Medium - High risk Speculative Stocks There is a reason this category accounts for only approximately 3% of your portfolio. This may take some research on the weekend, but the returns that may result can be extraordinary. Speculative companies are often innovative, low priced stocks that see high volatility, gains or losses of more than 10% over a single month. The likelihood of your $500 investment being completely evaporated is very slim, but if you lose $300 here, the thousands invested in the S&P 500, low risk stocks, government bonds, and mutual funds will more than recuperate the losses. If your pick is a winner, however, expect that the $500 investment could easily double, triple, or gain even more in a single year or over the course of just a few, perhaps, 2-4 years will see a very large return. I hope this advice helps and happy investing! Sending your money to smart investments is the key to financial security, freedom, and later, a comfortable retirement. Good luck, Matt McLaughlin\"",
"title": ""
},
{
"docid": "ee2c4b844bf6867deea08781a2c05ee9",
"text": "\"Between 1 and 2 G is actually pretty decent for a High School Student. Your best bet in my opinion is to wait the next (small) stock market crash, and then invest in an index fund. A fund that tracks the SP500 or the Russel 2000 would be a good choice. By stock market crash, I'm talking about a 20% to 30% drop from the highest point. The stock market is at an all time high, but nobody knows if it's going to keep going. I would avoid penny stocks, at least until you can read their annual report and understand most of what they're claiming, especially the cash flow statement. From the few that I've looked at, penny stock companies just keep issuing stock to raise money for their money loosing operations. I'd also avoid individual stocks for now. You can setup a practice account somewhere online, and try trading. Your classmates probably brag about how much they've made, but they won't tell you how much they lost. You are not misusing your money by \"\"not doing anything with it\"\". Your classmates are gambling with it, they might as well go to a casino. Echoing what others have said, investing in yourself is your best option at this point. Try to get into the best school that you can. Anything that gives you an edge over other people in terms of experience or education is good. So try to get some leadership and team experience. , and some online classes in a field that interests you.\"",
"title": ""
},
{
"docid": "7624eb3ecdcd90198d5248bf06e3b563",
"text": "One possibility would be to invest in a crude oil ETF (or maybe technically they're an ETP), which should be easily accessible through any stock trading platform. In theory, the value of these investments is directly tied to the oil price. There's a list of such ETFs and some comments here. But see also here about some of the problems with such things in practice, and some other products aiming to avoid those issues. Personally I find the idea of putting all my savings into such a vehicle absolutely horrifying; I wouldn't contemplate having more than a small percentage of a much more well diversified portfolio invested in something like that myself, and IMHO it's a completely unsuitable investment for a novice investor. I strongly suggest you read up on topics like portfolio construction and asset allocation (nice introductory article here and here, although maybe UK oriented; US SEC has some dry info here) before proceeding further and putting your savings at risk.",
"title": ""
},
{
"docid": "c5bdd92b794541937b4f697a658e0170",
"text": "\"General advice is to keep 6 months worth of income liquid -- in your case, you might want to leave 1 year liquid since, even though your income is stable now, it is not static (i.e., you're not drawing salary from an employer). The rest of it? If you don't plan on using it for any big purchases in the next 5 or so years, invest it. If you don't, you will probably lose money in the long term due to inflation (how's that for a risk? :). There are plenty of options for the risk averse, many of which handily beat inflation, though without knowing your country of residence, it's hard to say. In all likelihood, though, you'll want to invest in index funds -- such as ETFs -- that basically track industries, rather than individual companies. This is basically free portfolio diversity -- they lose money only when an entire sector loses value. Though even with funds of this type, you still want to ensure you purchase multiple different funds that track different industries. Don't just toss all of your funds into an IT index, for example. Before buying, just look at the history of the fund and make sure it has had a general upward trajectory since 2008 (I've bought a few ETFs that remained static...not what we're looking for in an investment!). If the brokerage account you choose doesn't offer commission free trades on any of the funds you want (personally, I use Schwab and their ETF portfolio), try to \"\"buy in bulk.\"\" That way you're not spending so much on trades. There are other considerations (many indexed funds have high management costs, but if you go with ETFs, they don't, and there's the question of dividends, etc), but that is getting into the weeds as far as investing knowledge is concerned. Beyond that, just keep in mind it'll take 1-2 weeks for you to see that money if you need it, and there's obviously no guarantee it'll be there if you do need it for an emergency.\"",
"title": ""
},
{
"docid": "2234ad152a94b06edf2086f30592fe80",
"text": "I am not interested in watching stock exchange rates all day long. I just want to place it somewhere and let it grow Your intuition is spot on! To buy & hold is the sensible thing to do. There is no need to constantly monitor the stock market. To invest successfully you only need some basic pointers. People make it look like it's more complicated than it actually is for individual investors. You might find useful some wisdom pearls I wish I had learned even earlier. Stocks & Bonds are the best passive investment available. Stocks offer the best return, while bonds are reduce risk. The stock/bond allocation depends of your risk tolerance. Since you're as young as it gets, I would forget about bonds until later and go with a full stock portfolio. Banks are glorified money mausoleums; the interest you can get from them is rarely noticeable. Index investing is the best alternative. How so? Because 'you can't beat the market'. Nobody can; but people like to try and fail. So instead of trying, some fund managers simply track a market index (always successfully) while others try to beat it (consistently failing). Actively managed mutual funds have higher costs for the extra work involved. Avoid them like the plague. Look for a diversified index fund with low TER (Total Expense Ratio). These are the most important factors. Diversification will increase safety, while low costs guarantee that you get the most out of your money. Vanguard has truly good index funds, as well as Blackrock (iShares). Since you can't simply buy equity by yourself, you need a broker to buy and sell. Luckily, there are many good online brokers in Europe. What we're looking for in a broker is safety (run background checks, ask other wise individual investors that have taken time out of their schedules to read the small print) and that charges us with low fees. You probably can do this through the bank, but... well, it defeats its own purpose. US citizens have their 401(k) accounts. Very neat stuff. Check your country's law to see if you can make use of something similar to reduce the tax cost of investing. Your government will want a slice of those juicy dividends. An alternative is to buy an index fund on which dividends are not distributed, but are automatically reinvested instead. Some links for further reference: Investment 101, and why index investment rocks: However the author is based in the US, so you might find the next link useful. Investment for Europeans: Very useful to check specific information regarding European investing. Portfolio Ideas: You'll realise you don't actually need many equities, since the diversification is built-in the index funds. I hope this helps! There's not much more, but it's all condensed in a handful of blogs.",
"title": ""
},
{
"docid": "d4f9b66d1aa4508cfeffa190848a6514",
"text": "Depends what kind of expenses you intend to use this money for. If you plan to buy housing in the future (eg you're saving a deposit), then you need to ensure that the value doesn't deteriorate relative to the value of the housing you are likely to buy - so you could buy a Residential REIT, or buy some investment property. If you expect to use this money for food, then you should buy suitable assets (eg Wheat futures, etc). Link the current asset to the future expense, and you will be fine. If you buy Gold, then you are making a bet that Gold will retain its value compared to the thing you want to purchase in future. It doesn't matter what the price of Gold does in $US.",
"title": ""
},
{
"docid": "343d01b5f2726763ff0f0cd166d76d57",
"text": "\"I'm still recommending that you go to a professional. However, I'm going to talk about what you should probably expect the professional to be telling you. These are generalities. It sounds like you're going to keep working for a while. (If nothing else, it'll stave off boredom.) If that's the case, and you don't touch that $1.4 million otherwise, you're pretty much set for retirement and never need to save another penny, and you can afford to treat your girl to a nice dinner on the rest of your income. If you're going to buy expensive things, though - like California real estate and boats and fancy cars and college educations and small businesses - you can dip into that money but things will get trickier. If not, then it's a question of \"\"how do I structure my savings?\"\". A typical structure: Anywho. If you can research general principles in advance, you'll be better prepared.\"",
"title": ""
},
{
"docid": "3fd2c4aac08a0eb253bbb662aec2ca98",
"text": "\"It's a good question, but it turns into a general 'how to invest' question. You see, the cliche of \"\"invest the difference\"\" simply point to the ripoff the other two answers discuss. And it doesn't specify how to invest, only that this money should be put to work as long term investments. The best answer is to find the asset allocation appropriate for your age and risk profile. It can be as simple as a low cost S&P ETF, or as complex at a dozen assets that include Stocks, both Domestic and Foreign, REITs, Commodities, etc. It's not as if the saved funds get segregated in a special account just for this purpose, although I suppose one can do this just as others have separate funds for retirement, emergency, vacation, college, etc.\"",
"title": ""
},
{
"docid": "fedc731ab6ca2dc898e6b0f3972279a9",
"text": "\"Put it in a Vanguard fund with 80% VTI and 20% VXUS. That's what you'll let set for 10-15 years. For somebody that is totally new to investing, use \"\"play money\"\" in the stock market. It's easy for young people to get dreams of glory and blow it all on some stock tip they've seen on Twitter.\"",
"title": ""
},
{
"docid": "3c9ed0056ff789546cac2040d1a25920",
"text": "Internet sites Books Academic",
"title": ""
}
] |
fiqa
|
17aa99c2e50cf7a73463528f3d26a9b5
|
How do I bring money overseas?
|
[
{
"docid": "5985a7c041ca425986510e782c5f88bc",
"text": "\"This page from TripAdvisor may be of interest. Look at what fees are charged on your ATM cards and credit cards, and consider overpaying your credit card so you have a credit balance that you can draw on for cash \"\"advances\"\" from ATMs that will dispense in local currency. Depending on what fees your bank charges, you may get a better rate than the forex cash traders at the airport. Edit: Cards may not always have the best rate. I recently heard from a traveler who was able to use a locally but not globally dominant currency to buy cash of a major currency at a shopping mall (with competitive forex traders) at rates even better than the mid-market rates posted at xe.com and similar places; I don't think you'll have that experience going from Australia to Malaysia (but another traveler reading this might have a different pair). In my experience the card rates are slightly worse than those and the airport forex traders significantly worse.\"",
"title": ""
},
{
"docid": "b454bdd66734e04e3cd3b92bb4779f8f",
"text": "I'm an Australian who just got back from a trip to Malaysia for two weeks over the New Year, so this feels a bit like dejavu! I set up a 28 Degrees credit card (my first ever!) because of their low exchange rate and lack of fees on credit card transactions. People say it's the best card for travel and I was ready for it. However, since Malaysia is largely a cash economy (especially in the non-city areas), I found myself mostly just withdrawing money from my credit card and thus getting hit with a cash advance fee ($4) and instant application of the high interest rate (22%) on the money. Since I was there already and had no other alternatives, I made five withdrawals over the two weeks and ended up paying about $21 in fees. Not great! But last time I travelled I had a Commonwealth Bank Travel Money Card (not a great idea), and if I'd used that instead on this trip and given up fees for a higher exchange rate, I would have been charged an extra $60! Presumably my Commonwealth debit card would have been the same. This isn't even including mandatory ATM fees. If I've learned anything from this experience and these envelope calculations I'm doing now, it's these:",
"title": ""
}
] |
[
{
"docid": "5d5612af7d495b352eeb63110fcfde9a",
"text": "He can send you a check. This will move the burden of GBP->USD conversion to him (unless the GBP amount is preset, then you'll be the one to pay for conversion either way). You can then deposit the USD check in any Israeli bank (they'll charge commission for the deposit and the USD->ILS conversion). Another, and from my experience significantly cheaper, option would be to wire transfer directly to your account. If you have a USD account and he'll transfer USD out - it will be almost at no cost to you, if you don't have a USD account check with your bank how to open it, or pay for USD->ILS conversion.",
"title": ""
},
{
"docid": "4e6aa2924261e912bdbcdaa2d5fed67f",
"text": "\"First thing is that your English is pretty damn good. You should be proud. There are certainly adult native speakers, here in the US, that cannot write as well. I like your ambition, that you are looking to save money and improve yourself. I like that you want to move your funds into a more stable currency. What is really tough with your plan and situation is your salary. Here in the US banks will typically have minimum deposits that are high for you. I imagine the same is true in the EU. You may have to save up before you can deposit into an EU bank. To answer your question: Yes it is very wise to save money in different containers. My wife and I have one household savings account. Yet that is broken down by different categories (using a spreadsheet). A certain amount might be dedicated to vacation, emergency fund, or the purchase of a luxury item. We also have business and accounts and personal accounts. It goes even further. For spending we use the \"\"envelope system\"\". After our pay check is deposited, one of us goes to the bank and withdraws cash. Some goes into the grocery envelope, some in the entertainment envelope, and so on. So yes I think you have a good plan and I would really like to see a plan on how you can increase your income.\"",
"title": ""
},
{
"docid": "b107f95e9f5c4b948052d8f9812b1d38",
"text": "The Transfer of funds outside of Bangladesh is restricted. Any transfers required the permission of Bangladesh Bank [Central Bank]. So the only legal option is to apply for the permission and see if its granted. Western Union is a Money Transfer and typically is good for getting funds into Bangladesh, most expats in Bangladesh would use the service. It can unfortunately not be used other way round.",
"title": ""
},
{
"docid": "8f02485a9df69d2c5f96f91ea78db1b1",
"text": "\"I have heard that I can give 10k as a gift in cash for my aunt to take on the plane. Please don't, for her own safety. Don't know when was the last you've been to Russia, but that's not a place to walk around with $10K in cash in your pocket. For the rest, the 20k, I am not sure what is the best course of action. Would something like Western Union, Paypal or Bank Wire Transfer be the best course of action? Wire transfer would be the safest option. Would there be tax implications for me as well? Depends on where you are tax resident and where you are a citizen. Some countries have \"\"gift tax\"\", but most don't. If you're a US tax resident, then you're subject to US gift tax rules. Your gifts are taxable if they exceed $14K per year per person. So your $30K to your mom is taxable. But your $10K to your mom, $10K to your dad and $10K to your aunt is not. You cannot however control what they do with it.\"",
"title": ""
},
{
"docid": "bdeb757b60aa6f7d68a075db4b6f8edf",
"text": "Do an semi-online transfer. I had a similar situation where i had to transfer 5K USD to a commercial entity. You can request the publisher to give you their bank account details. You will need the SWIFT code of the bank( SWIFT code is a international code that each bank gets to transfer money) You will need bank account number, account name, bank address, address of the publisher. Then just walk into your bank with the above details. Note that you will have to visit a branch in your city that allows forex transfers. They will give you a set of forms to fill up. The above details will be needed to fill up these forms In addition to the above, you will be asked to fill up a purpose code maintained by RBI. This code is used by RBI to understand the reason why you are transferring the money. The bank will provide you with a sheet which will have these codes and explanation of these codes. Read through the codes and in case of any questions ask the bank officials to help Tip: If you have accounts with any private sector banks, please approach them. Public sector banks will give you tough time Hope this helps! Regards, Ravi",
"title": ""
},
{
"docid": "07a3309a18a2c1be2bdf75d191c98722",
"text": "If this is your money, and if you can - if asked - prove that you legally made it, there is no limit. You pay taxes on your income, so sending it into the world is tax free. Your citizenship is not relevant for that.",
"title": ""
},
{
"docid": "ea4890b3e7eff99fd2658e853e07baca",
"text": "\"The new information helps a little, but you're still stuck as far as doing exactly what you asked. The question that you really should be asking is \"\"How do I deposit money into my BofA checking account from Italy?\"\" If you can figure that out, then the whole part about your father's AmEx card really becomes irrelevant. He might get that money from a cash advance on his AmEx card or he might get it from somewhere else. I think there's some small chance that if you call BofA and ask the right question, they may give you an answer that will let you make this deposit. I tend to doubt it, but this would at least give you a chance. Other than that, you should probably look into some options based in Italy. For example, get the cash from your father and open a bank account in Italy. Maybe you can buy a pre-paid Visa card with the cash to use while you're there. Maybe use traveler's checks for the rest of your trip. Etc. What is available and what makes sense will still depend on a lot of details that we don't have (like how long you're staying and what type of entry visa you got when you entered Italy).\"",
"title": ""
},
{
"docid": "c11c09b85c443880b8d617752cb05e2a",
"text": "\"For some reason can't transfer it directly to his account overseas (something to do with security codes, authorized payees and expired cards). Don't become someone's financial intermediary. Find out exactly why he can't transfer the money himself, and then if you want to help him, solve that problem for him. Helping him fix his issue with his expired card, or whatever the real problem is, would be a good thing to do. Allowing him to involve you in the transaction, would be a bad thing to do. Possible problems which might be caused by becoming directly involved in the transaction: -The relative is being scammed themselves, and doesn't realize it / doesn't realize the risks, and either wants you to take the risk, or simply thinks there is no risk but needs administrative help. -The person contacting you is not the relative - perhaps they are faking that person's identity, and are using your trust to defraud you. -The person is committing some form of fraud, money laundering, or worse, and is directly trying to defraud you in order to keep their hands clean. -The transaction may be perfectly legal, but is considered taxable in one or more countries. By getting involved, you might face tax filing obligations, or even tax payment obligations. -The transaction may be perfectly legal and legitimate, but might accidentally get picked up as potential fraud by a financial monitoring system, causing the funds to be held, and your account to be flagged for further investigation, creating headaches for you until it becomes resolved. There are possibly other ways that this can go awry, but these are the biggest possibilities I can think of. The only possible 'good' outcome here is that everything goes smoothly, and it works exactly as well as if your relative's \"\"administrative problems\"\" were solved first, and the money went through his own account. Handwaving about why your account is needed and his is faulty is a big red flag. If it is truly just an administrative issue on his end, help him fix that issue instead.\"",
"title": ""
},
{
"docid": "0c2dfe34ea55af11139b3dade5f2cb38",
"text": "I assume the same criteria apply for this as your previous question. You want to physically transfer in excess of 50,000 USD multiple times a week and you want the transportation mechanism to be instant or very quick. I don't believe there is any option that won't raise serious red flags with the government entities you cross the boundaries of. Even a cheque, which a person in the comments of OP's question suggests, wouldn't be sufficient due to government regulation requiring banks to put holds on such large amounts.",
"title": ""
},
{
"docid": "c0568dee1a562b5ddf66be45c0d8fcde",
"text": "\"One option would be to physically ship the money from Israel to the US. I quickly ran the numbers for shipping different amounts of $100 bills (One pound equals 454 bills) using a popular shipping company. Here are the results: The \"\"sweet\"\" spot is $100,000. That would only cost you $76 to ship which is just 0.08% of the amount being transferred. Of course, the shipping company's website says international shipments of money are prohibited. Their website, however, let me categorize the shipment as \"\"money\"\". Strange.\"",
"title": ""
},
{
"docid": "8aa4745955d3eeaef5710f6980b26d55",
"text": "You could buy a money order with your cash, then mail the money order to Deutsche Bank Germany for deposit into your account. You could also buy a prepaid debit card (like a Visa/AMEX giftcard) with your cash. Then, open a new Paypal account and add this prepaid card. Finally, send money to yourself using the prepaid card as the funding source. You could use a money transfer service, like Western Union, to transfer the cash to a friend/family in Germany. Then ask them to deposit it for you at Deutsche Bank Germany.",
"title": ""
},
{
"docid": "481656d627aac6f23fffa2d95abc9adc",
"text": "Just tell your bank where you're going so they don't lock your account, and then take your Visa, and take enough cash to survive if something happens to your Visa account (sometimes banks lock them anyways out of idiocy). I usually take about 600 bucks cash for a week excursion (enough for food and a shack, or a mansion if you're in Asia). I figure, I'm carrying my passport which is worth thousands to criminals abroad around my neck. Why worry about carrying a little cash. As far as the Visa goes, just make sure your bank doesn't charge enormous fees for currency conversion. As far as carrying the local currency goes. I don't recommend it. Just figure out the conversion rate, and you'll save about 5% of your money from fees converting to and from. If you're going to Russia, do convert your currency first.",
"title": ""
},
{
"docid": "33da7c09e1a08fdf982f837b5ce5fe70",
"text": "Most Banks allow to make an international transfer. As the amounts is very small, there is no paperwork required. Have your dad walk into any Bank and request for a transfer. He should be knowing your Bank's SWIFT BIC, Name and Address and account number. Edit: Under the liberalised remittance scheme, any individual can transfer upto 1 million USD or eq. A CA certificate is required. Please get in touch with your bank in India for exact steps",
"title": ""
},
{
"docid": "800c5783f99b60b8c046861416bb28c6",
"text": "If you trust the other party, an international bank wire would be the quickest, easiest, and cheapest option. It is the standard way to pay for something overseas from the United States. Unfortunately, in most cases, they are not reversible. I don't believe Paypal is an option for an amount that large. Escrow companies do exist, but you would have to research those on a case by case basis to see if any fit the criteria for your transaction and the countries involved. I'll also add: If it were me, and there was no way to get references or verify the person's identity and intent to my satisfaction, then I would probably consider hopping on a plane. For that amount of money, I would verify the person and items are legitimate, in person, and then wire the money.",
"title": ""
},
{
"docid": "e445fbec7bd8b703081fde4dce9a5c7b",
"text": "Nationwide Flex Account lets you receive money internationally for free, but you have to pay to send it. It meets all your other criteria.",
"title": ""
}
] |
fiqa
|
042c06110d600f08d16908beeab1deaa
|
Value of tokens bought at an older price
|
[
{
"docid": "2c563cd84f91feb303bc9883e56d5032",
"text": "\"You will make a profit in nominal dollars (or nominal units of whatever currency you used to buy the token). Whether you'll make a profit in real dollars depends on inflation, and in practice whether it would be possible to sell your existing tokens to someone else for the new price. Suppose when the price was 50 U (50 \"\"units\"\", since you didn't specify a currency), you bought one token. Today you can either spend 52 U for a token, and get a liter of milk, or you can spend your existing token (for which you paid 50 U) and get a liter of milk. It looks like you are making a profit of 2 U by spending your token. However, whether that profit is real or illusory depends on what else you could do with the token. For instance, suppose that, since the price of a token is now 52 U, you will have no trouble finding someone who wants to buy your token from you for 52 U. If you sell your token for 52 U, you'll still only be able to buy 1 L of milk. So if you measure your wealth in milk, you have made no profit: in the past you had a token representing 1 L of milk, and today you still have a token representing 1 L of milk. Suppose now that in the past, when a token cost 50 U, a hamburger also cost 50 U. Suppose further that a hamburger now costs 52 U. So you can sell your token for 52 U, but that 52 U will still only buy you one hamburger. So, again, if you measure your wealth in hamburgers, your have made no profit. In the past, you could have sold your token and bought a hamburger; today, you can still sell your token and buy a hamburger, and you'll have nothing left over, so you have gained nothing. If, on the other hand, the price of a hamburger today is still 50 U, then you call sell your token for 52 U, buy a hamburger for 50 U, and still have 2 U left over. You have made a profit. What this all goes to show is that, in practice, the idea of \"\"profit\"\" depends on the overall economy, and whether you could exchange the currency units you have in your possession for a greater quantity of goods than you could in the past. Whether this is possible depends on the relative changes in price of various goods. In other words, if you get your money by selling Product A, and later you buy Product B, you may or may not make a profit depending on how the prices of the two products moved relative to one another. Also, in your hypothetical setup, the \"\"currency\"\" (the token) is directly linked to the value of a single good, so you can always at least get 1 L of milk for your token. Most real currency is not bound to specific goods like your milk token, so it is possible for your currency to lose value in an absolute sense. For instance, suppose you sell a book for $5. The $5 is not a \"\"book token\"\" and you cannot rely on being able to exchange it for a book in the future; in the future, all books may cost $10, and the prices of all goods may rise similarly, so your currency will actually be worth less no matter how you try to use it. This could happen with the milk token if the milkman announces that henceforth 1 L of milk will cost 2 tokens; your existing token suddenly loses half its value. In sum, it is easy to calculate whether you made a profit in currency units. What is harder is to calculate whether you made a profit in \"\"real terms\"\" (often referred to as \"\"real dollars\"\" or \"\"inflation-adjusted dollars\"\", or the equivalent in your favorite currency). The reason this is hard is because the idea of \"\"real dollars\"\" is fundamentally linked to the possibility of exchanging currency for goods (and services), and so it depends what goods you're buying. Inflation statistics published by governments and the like use a \"\"basket\"\" of goods to approximate the overall price movements in the economy as a whole.\"",
"title": ""
}
] |
[
{
"docid": "329675bf2c9692f2f78d55243aa4920e",
"text": "\"Yes, long calls, and that's a good point. Let's see... if I bought one contract at the Bid price above... $97.13 at expiry of $96.43 option = out of the money =- option price(x100) = $113 loss. $97.13 at expiry of $97.00 option = out of the money =- option price(x100) = $77 loss. $97.13 at expiry of $97.14 option = in the money by 1-cent=$1/contract profit - option price(x100) = $1-$58 = $57 loss The higher strike prices have much lower losses if they expire with the underlying stock at- or near-the-money. So, they carry \"\"gentler\"\" downside potential, and are priced much higher to reflect that \"\"controlled\"\" risk potential. That makes sense. Thanks.\"",
"title": ""
},
{
"docid": "ebb41def0224a718e83f9f53e5a8e812",
"text": "\"The textbook answer would be \"\"assets-liabilities+present discounted value of all future profit\"\". A&L is usually simple (if a company has an extra $1m in cash, it's worth $1m more; if it has an extra $1m in debt, it's worth $1m less). If a company with ~0 assets and $50k in profit has a $1m valuation, then that implies that whoever makes that valuation (wants to buy at that price) really believes one of two things - either the future profit will be significantly larger than $50k (say, it's rapidly growing); or the true worth of assets is much more - say, there's some IP/code/patents/people that have low book value but some other company would pay $1m just to get that. The point is that valuation is subjective since the key numbers in the calculations are not perfectly known by anyone who doesn't have a time machine, you can make estimates but the knowledge to make the estimates varies (some buyers/sellers have extra information), and they can be influenced by those buyers/sellers; e.g. for strategic acquisitions the value of company is significantly changed simply because someone claims they want to acquire it. And, $1m valuation for a company with $500m in profits isn't appropriate - it's appropriate only if the profits are expected to drop to zero within a couple years; a stagnant but stable company with $500m profits would be worth at least $5m and potentially much more.\"",
"title": ""
},
{
"docid": "6102ca35a6adf578632c2b0f37dadc2f",
"text": "\"Below I will try to explain two most common Binomial Option Pricing Models (BOPM) used. First of all, BOPM splits time to expiry into N equal sub-periods and assumes that in each period the underlying security price may rise or fall by a known proportion, so the value of an option in any sub-period is a function of its possible values in the following sub period. Therefore the current value of an option is found by working backwards from expiry date through sub-periods to current time. There is not enough information in the question from your textbook so we may assume that what you are asked to do is to find a value of a call option using just a Single Period BOPM. Here are two ways of doing this: First of all let's summarize your information: Current Share Price (Vs) = $70 Strike or exercise price (X) = $60 Risk-free rate (r) = 5.5% or 0.055 Time to maturity (t) = 12 months Downward movement in share price for the period (d) = $65 / $70 = 0.928571429 Upward movement in share price for the period (u) = 1/d = 1/0.928571429 = 1.076923077 \"\"u\"\" can be translated to $ multiplying by Vs => 1.076923077 * $70 = $75.38 which is the maximum probable share price in 12 months time. If you need more clarification here - the minimum and maximum future share prices are calculated from stocks past volatility which is a measure of risk. But because your textbook question does not seem to be asking this - you probably don't have to bother too much about it yet. Intrinsic Value: Just in case someone reading this is unclear - the Value of an option on maturity is the difference between the exercise (strike) price and the value of a share at the time of the option maturity. This is also called an intrinsic value. Note that American Option can be exercised prior to it's maturity in this case the intrinsic value it simply the diference between strike price and the underlying share price at the time of an exercise. But the Value of an option at period 0 (also called option price) is a price you would normally pay in order to buy it. So, say, with a strike of $60 and Share Price of $70 the intrinsic value is $10, whereas if Share Price was $50 the intrinsic value would be $0. The option price or the value of a call option in both cases would be fixed. So we also need to find intrinsic option values when price falls to the lowest probable and rises to the maximum probable (Vcd and Vcu respectively) (Vcd) = $65-$60 = $5 (remember if Strike was $70 then Vcd would be $0 because nobody would exercise an option that is out of the money) (Vcu) = $75.38-$60 = $15.38 1. Setting up a hedge ratio: h = Vs*(u-d)/(Vcu-Vcd) h = 70*(1.076923077-0.928571429)/(15.38-5) = 1 That means we have to write (sell) 1 option for each share purchased in order to hedge the risks. You can make a simple calculation to check this, but I'm not going to go into too much detail here as the equestion is not about hedging. Because this position is risk-free in equilibrium it should pay a risk-free rate (5.5%). Then, the formula to price an option (Vc) using the hedging approach is: (Vs-hVc)(e^(rt))=(Vsu-hVcu) Where (Vc) is the value of the call option, (h) is the hedge ratio, (Vs) - Current Share Price, (Vsu) - highest probable share price, (r) - risk-free rate, (t) - time in years, (Vcu) - value of a call option on maturity at the highest probable share price. Therefore solving for (Vc): (70-1*Vc)(e^(0.055*(12/12))) = (75.38-1*15.38) => (70-Vc)*1.056540615 = 60 => 70-Vc = 60/1.056540615 => Vc = 70 - (60/1.056540615) Which is similar to the formula given in your textbook, so I must assume that using 1+r would be simply a very close approximation of the formula above. Then it is easy to find that Vc = 13.2108911402 ~ $13.21 2. Risk-neutral valuation: Another way to calculate (Vc) is using a risk-neutral approach. We first introduce a variable (p) which is a risk-neutral probability of an increase in share price. p = (e^(r*t)-d)/(u-d) so in your case: p = (1.056540615-0.928571429)/(1.076923077-0.928571429) = 0.862607107 Therefore using (p) the (Vc) would be equal: Vc = [pVcu+(1-p)Vcd]/(e^(rt)) => Vc = [(0.862607107*15.38)+(0.137392893*5)]/1.056540615 => Vc = 13.2071229185 ~ $13.21 As you can see it is very close to the hedging approach. I hope this answers your questions. Also bear in mind that there is much more to the option pricing than this. The most important topics to cover are: Multi-period BOPM Accounting for Dividends Black-Scholes-Merton Option Pricing Model\"",
"title": ""
},
{
"docid": "5db2500544c713428b4b849702c8e351",
"text": "In order to see whether you can buy or sell some given quantity of a stock at the current bid price, you need a counterparty (a buyer) who is willing to buy the number of stocks you are wishing to offload. To see whether such a counterparty exists, you can look at the stock's order book, or level two feed. The order book shows all the people who have placed buy or sell orders, the price they are willing to pay, and the quantity they demand at that price. Here is the order book from earlier this morning for the British pharmaceutical company, GlaxoSmithKline PLC. Let's start by looking at the left-hand blue part of the book, beneath the yellow strip. This is called the Buy side. The book is sorted with the highest price at the top, because this is the best price that a seller can presently obtain. If several buyers bid at the same price, then the oldest entry on the book takes precedence. You can see we have five buyers each willing to pay 1543.0 p (that's 1543 British pence, or £15.43) per share. Therefore the current bid price for this instrument is 1543.0. The first buyer wants 175 shares, the next, 300, and so on. The total volume that is demanded at 1543.0p is 2435 shares. This information is summarized on the yellow strip: 5 buyers, total volume of 2435, at 1543.0. These are all buyers who want to buy right now and the exchange will make the trade happen immediately if you put in a sell order for 1543.0 p or less. If you want to sell 2435 shares or fewer, you are good to go. The important thing to note is that once you sell these bidders a total of 2435 shares, then their orders are fulfilled and they will be removed from the order book. At this point, the next bidder is promoted up the book; but his price is 1542.5, 0.5 p lower than before. Absent any further changes to the order book, the bid price will decrease to 1542.5 p. This makes sense because you are selling a lot of shares so you'd expect the market price to be depressed. This information will be disseminated to the level one feed and the level one graph of the stock price will be updated. Thus if you have more than 2435 shares to sell, you cannot expect to execute your order at the bid price in one go. Of course, the more shares you are trying to get rid of, the further down the buy side you will have to go. In reality for a highly liquid stock as this, the order book receives many amendments per second and it is unlikely that your trade would make much difference. On the right hand side of the display you can see the recent trades: these are the times the trades were done (or notified to the exchange), the price of the trade, the volume and the trade type (AT means automatic trade). GlaxoSmithKline is a highly liquid stock with many willing buyers and sellers. But some stocks are less liquid. In order to enable traders to find a counterparty at short notice, exchanges often require less liquid stocks to have market makers. A market maker places buy and sell orders simultaneously, with a spread between the two prices so that they can profit from each transaction. For instance Diurnal Group PLC has had no trades today and no quotes. It has a more complicated order book, enabling both ordinary buyers and sellers to list if they wish, but market makers are separated out at the top. Here you can see that three market makers are providing liquidity on this stock, Peel Hunt (PEEL), Numis (NUMS) and Winterflood (WINS). They have a very unpalatable spread of over 5% between their bid and offer prices. Further in each case the sum total that they are willing to trade is 3000 shares. If you have more than three thousand Dirunal Group shares to sell, you would have to wait for the market makers to come back with a new quote after you'd sold the first 3000.",
"title": ""
},
{
"docid": "96ffe6a551593b9b69ec6a68d6a2175b",
"text": "You may refer to project http://jstock.sourceforge.net. It is open source and released under GPL. It is fetching data from Yahoo! Finance, include delayed current price and historical price.",
"title": ""
},
{
"docid": "cd44af0ba38fa7d68265e7bc6603f04d",
"text": "According to Active Equity Management by Zhou and Jain: When a stock pays dividend, the adjusted price in Yahoo makes the following adjustment: Let T be the ex-dividend date (the first date that the buyers of a stock will not receive the dividend) and T-1 be the last trading day before T. All prices before T are adjusted by a multiplier (C_{T-1} - d_T)/C_{T-1}, where C_{T-1} is the close price at T-1 and d_T is the dividend per share. This, of course means that the price before T decreases.",
"title": ""
},
{
"docid": "4dd31df3c95814f4714baab5f891da74",
"text": "Yes, because most were holding it from 50-300 dollars cost pre-split, giving them a very healthy dividend yield today. The question is upside if you buy today, not upside from 5 years ago. I bought it at 300 too, but today other stocks are making me money...",
"title": ""
},
{
"docid": "5d0b360de7d5745d006ae345e6072492",
"text": "The value of the asset doesn't change just because of the exchange rate change. If a thing (valued in USD) costs USD $1 and USD $1 = CAN $1 (so the thing is also valued CAN $1) today and tomorrow CAN $1 worth USD $0.5 - the thing will continue being worth USD $1. If the thing is valued in CAN $, after the exchange rate change, the thing will be worth USD $2, but will still be valued CAN $1. What you're talking about is price quotes, not value. Price quotes will very quickly reach the value, since any deviation will be used by the traders to make profits on arbitrage. And algo-traders will make it happen much quicker than you can even notice the arbitrage existence.",
"title": ""
},
{
"docid": "7cfb787181731c3db190ce83e73934f7",
"text": "You can't. If there was a reliable way to identify an undervalued stock, then people would immediately buy it, its price would rise and it wouldn't be undervalued any more.",
"title": ""
},
{
"docid": "ebd1db8d92f3d8dc714ca36e204074bb",
"text": "\"To a certain degree \"\"the only sure thing I know is the price I paid for the stock is the fair price at the time I buy it\"\" is absolutely right, by definition, and by the law of the free and efficient market and forces of supply and demand, freedom of public information about share price sensitive information, etc, etc, etc, and you've made a good point that eludes many investors I'd say. However, in practise, the market has many participants, and they will all be arriving at a different idea of what the \"\"fair price\"\" is by way of a slightly different analysis and slightly different information. In theory they all have the same information, but unfortunately in practise there is always some disparity. When one participant feels a stock is undervalued though the last thing they want to do is say so, instead they will start buying stock. They might feel it is undervalued by 20%, but that doesn't mean they'll keep buying and buying until it gets to 20%, they might push the price up just a little, then let the price drift down again, buy some more, relax, buy some more, etc. Over time the price will rise of course because the supply will become weaker, but even if the participant is correct about the 20% the price might have only risen 7% by the time they acquire all the stock they want given their risk models, market exposure and margin guidelines, etc, and it might be more than a year later before the price has actually risen to 20%, presumably because more and more other market participants have come to the same conclusion. The opposite can obviously also happen, a participant might dump stock it feels is over valued long before it hits the values it believes in. So right away you can see that pricing might not really reflect value, or \"\"fair price\"\".\"",
"title": ""
},
{
"docid": "a02e1225d535f7294a762236a0c8f62c",
"text": "> “If the [Black-Scholes] formula is applied to extended time periods….it can produce absurd results.” > -Warren Buffett, 2008 Letter to Berkshire Hathaway Shareholders I will give your question more thought, and come back with a quantitative solution. It may be most fruitful to apply a backward-induction options pricing model with detailed scenario-based discounted cash flow valuation models supported by pro forma financial statement and investment analysis. Nonetheless, my initial reaction is inline with Warren Buffett's belief that in the long-run an assumption of the Black-Scholes options pricing model is invalid (see [here](http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.613.1657&rep=rep1&type=pdf) and [here](http://www.elon.edu/docs/e-web/academics/business/economics/faculty/kurt/OptionValuationBuffetCritique_123113.pdf)). The perceived invalid assumption is that the distribution of expected future stock prices is *not* log-normal in the long-run. This non-log-normal view is especially true for a single company stock. This invalid assumption results in over-valuation of options prices from Black-Scholes - which makes it much better to sell long-term options than to buy them if market participants are using Black-Scholes pricing models. Again, without having done the math yet, my gut tells me if the option seller is using Black-Sholes pricing for long-dated options, you would be best to avoid buying them as the prices will be inflated compared to an economic reality fair price.",
"title": ""
},
{
"docid": "f27ce88d949d7bc8765788775ccf6f2a",
"text": "The problem you're talking about can be handled the same way now until better alternatives appear. I'm simply talking about improving the existing infrastructure to carry out these trades. Instead of holding a number on charles schwab account, you hold a token which is the same as a stock certificate of ownership.",
"title": ""
},
{
"docid": "04b7de29b81964c51f8be69e5e3d5cfe",
"text": "\"I don't have a formula for anything like this, but it is important to note that the \"\"current value\"\" of any asset is really theoretical until you actually sell it. For example, let's consider a house. You can get an appraisal done on your house, where your home is inspected, and the sales of similar houses in your area are compared. However, this value is only theoretical. If you found yourself in a situation where you absolutely had to sell your house in one week, you would most likely have to settle for much less than the appraised value. The same hold true for collectibles. If I have something rare that I need cash for immediately, I can take it to a pawn shop and get cash. However, if I take my time and locate a genuinely interested collector, I can get more for it. This is comparable to someone who holds a significant percentage of shares in a publicly held corporation. If the current market value of your shares is $10 million, but you absolutely need to sell your entire stake today, you aren't going to get $10 million. But if you take your time selling a little at a time, you are more likely to get much closer to this $10 million number. A \"\"motivated seller\"\" means that the price will drop.\"",
"title": ""
},
{
"docid": "df41c539018f1fb6adcf160c270d71fe",
"text": "Many of the Bitcoin exchanges mimic stock exchanges, though they're much more rudimentary offering only simple buy/sell/cancel orders. It's fairly normal for retail stock brokerage accounts to allow other sorts of more complex orders, where once a certain criteria is met, (the price falls below some $ threshold, or has a movement greater than some %) then your order is executed. The space between the current buy order and the current sell order is the bid/ask spread, it's not really about timing. Person X will buy at $100, person Y will sell at $102. If both had a price set at $101, they would just transact. Both parties think they can do a little bit better than the current offer. The width of the bid/ask spread is not universal by any means. The current highest buy order and the current lowest sell order, are both the current price. The current quoted market price is generally the price of the last transaction, whether it's buy or sell.",
"title": ""
},
{
"docid": "42f339e971647b05cea2661ae64b1c55",
"text": "\"The answer is yes. And the reason is if today's interest rates are lower than the interest rate (coupon) at which the bond was issued. The bond's \"\"lifetime value\"\" is 100 cents on the dollar. That's the principal repayment that the investor will get on the maturity date. But suppose the bond's coupon rate is 4% while today's interest rate is 3%. Then, people who bought the bond at 100 would get 4% on their money, while everyone else was getting 3%. To compensate, a three year bond would have to rise to almost 103 so that the so-called yield to maturity\"\" would be 3%. Then there would be a \"\"capital loss\"\" (from almost 103 to 100) that would exactly offset the extra interest, that is 1% \"\"more\"\" for three years. If today's interest rates are negative (as they were from time to time in the 1930s, and in the present decade), the \"\"negative\"\" interest rates will prevent the buyer from getting the \"\"lifetime value\"\" (as defined by the OP) of principal plus interest over the original life of the bond. This happens in a \"\"flight to quality\"\" situation, where people are willing to take a (small) capital loss on Treasuries in order to prevent a large possible loss from bank failures like those that took place in 2008.\"",
"title": ""
}
] |
fiqa
|
7b6445cba921415d6fb380d648597665
|
Boyfriend is coowner of a house with his sister, he wants to sell but she doesn't
|
[
{
"docid": "9946428c121f3963f3f50f8b1aefae9b",
"text": "He needs to go see a lawyer to find out what all his options are, and the consequences of any of them. Then he needs to get help extricating himself from this situation, in whatever fashion he chooses: buyout, giveaway, what have you. This situation involves property, which involves money, so definitely get professional advice on this. Otherwise, 20 years from now, he could be hit with a bill for back taxes or what have you, if whatever he does, isn't done correctly and completely. The situation does stink, on ice. Either he's going to be the pissed-off party in this situation, or she is, or they both are...but there's money involved, and property involved, and at least one recalcitrant family member involved. Best case scenario, he writes up the story and sells the plot to Lifetime for a movie-of-the-week. (If I were in this situation, I would donate my half of the property to some charitable group, then have a lawyer send Sis a letter saying that it had been donated. Maybe even pick a charitable group aligned with Sis' interests, so that if Sis does want to try and negotiate with them to buy it out, she's giving the sales money to a group/cause that she believes in. But...then, it would No Longer Be My Problem. But that has consequences of its own, and your boyfriend needs to be aware of all of them, including any tax implications for him, before taking any such step.)",
"title": ""
},
{
"docid": "89d9ea459669caeb89bd33fb1fbaf6fc",
"text": "It seems likely that the mortgage is not in your boyfriend's name because he never would have qualified if he can't even afford utilities after paying the mortgage. It also seems unfair that his sister continues to have a 50% share of the equity if your boyfriend has been making the entire payment on the mortgage every month. What would happen if your boyfriend stopped making the payments? His sister would have no choice if the property went into foreclosure. Your boyfriend has all the leverage he needs by simply refusing to continue making the payments. Why he won't push his sister to make a deal is the real question you need to ask him. In the meantime, if he wants out, all he has to do is decide not to keep paying whether his sister feels attached or not.",
"title": ""
},
{
"docid": "b4c312ef654f61fddd993f93f158a1a6",
"text": "How did the house pass to them? Was it held in Trust? Were they both jointly listed on the deed? If no to both, then the house should have gone into probate..assuming this is going on in the US...where the probate court would reassign ownership. Until this happens the house cannot be sold and is formally owned by the estate. I agree with the former post suggesting you find an estate attorney in the area to see if this dispute can be amicably settled. Tying it up in litigation will be EXPENSIVE and take a great deal of time",
"title": ""
},
{
"docid": "d1700ce173631fa8ff7771d55e1b4c98",
"text": "Rent the property?? Is that a possible solution? Since selling the house is not an option and living in it isn't either, then perhaps renting it is the way to go? Since no explanation for the sister's motives is given, i'd speculate it is a mixture of emotional and financial concerns. Maybe mostly emotional. I imagine letting go of the one physical thing that has memories of you and your parents attached to it is very difficult. I don't think getting a lawyer or doing what's convenient for only your boyfriend is the way to go...But that's my own personal opinion. Clearly, he only has one close family member left alive. Creating permanent wounds in that relationship will cost more along the way. And quite frankly, if the house is owned 50-50, don't you need both owners to sign the deed to sell the house anyways? If renting is not an option, then maybe refinancing the mortgage to lower payments? Or Airbnb it only half the time? Or rent it out for events to help with payments? Or ask the sister for a little money...Not for half the mortgage, but at least a few hundred dollars to maintain the house and heat. If she is indeed concerned with the property, then maintaining it to prevent serious damagae is in her interests, no matter her income.",
"title": ""
},
{
"docid": "86947b27e63b44e8de27c9d930ccea82",
"text": "\"Time for a lawyer. Essentially, regardless of the situation \"\"it's not right\"\" for him to be paying the mortgage and only get half the value out of the equity in the house. All other things aside, no court I can think of would allow that. The \"\"could happens\"\" are many, but the most common include; Keep in mind that if he keeps paying the mortgage ling enough most courts will end up giving him ownership outright. Essentially, they will say he has already bought her out by paying her half of the debt. Unfortunately, any way he goes he is going to need to take action. When there is a missed mortgage payment, a bad tax year, or some other legal issue (some one is injured on the property), the last thing he is going to want is for the courts to decide the issue for him. For example, John breaks an arm while climbing a tree on the property line. John takes the owners of the property to court. \"\"He\"\" says \"\"but my sister owns half\"\" and the courts decide then and there that because he's been paying the mortgage alone he owns the house alone. Seems like a win, except now he owns the liability alone, and owns John $1,000,000 for a silly lawsuit alone. Point is this. Ownership of property comes with risks and responsibilities. \"\"He\"\" really needs to get those risks and responsibilities under control so he can mitigate them, or he could end up in a very nasty situation in the years to come.\"",
"title": ""
},
{
"docid": "233b7834ac5a15ab9d4b9fb522d80bd0",
"text": "He doesn't have to follow through on this, but he could tell this sister that he will stop making mortgage payments, which will result in foreclosure and sale at lower price than might be realized by a voluntary sale. Translation: the house will sold, sis. Do you want to maximize your share of the proceeds? And, as I said in a comment above: I hope that he is keeping careful records of mortgage an utility payments, as he might (should) be entitled to a refund from the proceeds of an eventual sale (possibly adjusted by the fair rent value of the time which he spent living there)",
"title": ""
},
{
"docid": "d412f05433805dbce869dd79e5b3525b",
"text": "\"Dear \"\"benevolent\"\" sister, The mortgage, utilities, and taxes for this home can no longer be paid and the bank will repossess it within the coming months. Thank you for your time\"",
"title": ""
},
{
"docid": "b80cd12b199c52298cec99dc26f6ee26",
"text": "\"That ain't nothing. It's really easy to get \"\"whipped up\"\" into a sense of entitlement, and forget to be grateful for what you do have. If this house doesn't exist, what would his costs of housing be elsewhere? Realistically. Would landlords rent to him? Would other bankers lend him money to buy a house? Would those costs really be any better? What about the intangible benefits like not having any landlord hassles or having a good relationship with the neighbors? It's entirely possible he has a sweet deal here, and just doesn't make enough money. If your credit rating is poor, your housing options really suck. Banks won't lend you money for a house unless you have a huge ton of upfront cash. Most landlords won't rent to you at all, because they are going to automated scoring systems to avoid accusations of racism. In this day and age, there are lots of ways to make money with a property you own. In fact, I believe very firmly in Robert Allen's doctrine: Never sell. That way you avoid the tens of thousands of dollars of overhead costs you bear with every sale. That's pure profit gone up in smoke. Keep the property forever, keep it working for you. If he doesn't know how, learn. To \"\"get bootstrapped\"\" he can put it up on AirBnB or other services. Or do \"\"housemate shares\"\". When your house is not show-condition, just be very honest and relatable about the condition. Don't oversell it, tell them exactly what they're going to get. People like honesty in the social sharing economy. And here's the important part: Don't booze away the new income, invest it back into the property to make it a better money-maker - better at AirBnB, better at housemate shares, better as a month-to-month renter. So it's too big - Is there a way to subdivide the unit to make it a better renter or AirBnB? Can he carve out an \"\"in-law unit\"\" that would be a good size for him alone? If he can keep turning the money back into the property like that, he could do alright. This is what the new sharing economy is all about. Of course, sister might show up with her hand out, wanting half the revenue since it's half her house. Tell her hell no, this pays the mortgage and you don't! She deserves nothing, yet is getting half the equity from those mortgage payments, and that's enough, doggone it! And if she wants to go to court, get a judge to tell her that. Not that he's going to sell it, but it's a huge deal. He needs to know how much of his payments on the house are turning into real equity that belongs to him. \"\"Owning it on paper\"\" doesn't mean you own it. There's a mortgage on it, which means you don't own all of it. The amount you own is the value of the house minus the mortgage owed. This is called your equity. Of course a sale also MINUS the costs of bringing the house up to mandatory code requirements, MINUS the cost of cosmetically making the house presentable. But when you actually sell, there's also the 6% Realtors' commission and other closing costs. This is where the mortgage is more than the house is worth. This is a dangerous situation. If you keep the house and keep paying the mortgage all right, that is stable, and can be cheaper than the intense disruption and credit-rating shock of a foreclosure or short sale. If sister is half owner, she'll get a credit burn also. That may be why she doesn't want to sell. And that is leverage he has over her. I imagine a \"\"Winter's bone\"\" (great movie) situation where the family is hanging on by a thread and hasn't told the bank the parents died. That could get very complex especially if the brother/sister are not creditworthy, because that means the bank would simply call the loan and force a sale. The upside is this won't result in a credit-rating burn or bankruptcy for the children, because they are not owners of the house and children do not inherit parents' debt.\"",
"title": ""
}
] |
[
{
"docid": "bcc7565023a433295ede5c7b73956620",
"text": "Can he legally break your lease if he sells the place? If not I would just keep renting. It doesn't sound like you love the house and you plan on moving or would prefer a different type of place long term. Unless you yourself plan on getting involved in being a renting it out to others in the future - just rent and move on at some point. If he can break your lease upon sale of the property then I'd be casually keeping an eye out for another place to rent if that happens.",
"title": ""
},
{
"docid": "a3296028085d2affa9301df284593e8e",
"text": "\"Sister is putting down nothing, and paying sub-market rent. It looks to me like if she is assigned anything, it's a gift. You on the other hand, have put down the full downpayment, and instead of breaking even via fair rent, are feeding the property to the tune of $645/mo. In the old days, the days of Robert Allen's \"\"no money down\"\" it was common to see shared equity deals where the investor would put up the down payment, get 1/2 the equity build up, and never pay another dime. This deal reminds me of that, only you are getting the short end of the stick. \"\"you never think something will cause discourse\"\" - I hope you meant this sarcastically. The deal you describe? No good can come of it.\"",
"title": ""
},
{
"docid": "a2fdf74a17ba25e4650efadf59e8b366",
"text": "The first and most important thing to consider is that this is a BUSINESS TRANSACTION, and needs to be treated as such. Nail down Absolutely All The Details, specifically including what happens if either of you decides it's time to move and wants to sell off your share of the property. Get at least one lawyer involved in drawing up that contract, perhaps two so there's no risk of conflict of interest. What's your recourse, or his, if the other stops making their share of the payments? Who's responsible for repairs and upkeep? If you make renovations, how does that affect the ownership percentage, and what kind of approval do you need from him first, and how do you get it, and how quickly does he have to respond? If he wants to do something to maintain his investment, such as reroofing, how does he negotiate that with you -- especially if it's something that requires access to the inside of the house? Who is the insurance paid by, or will each of you be insuring it separately? What are the tax implications? Consider EVERY possible outcome; the fact that you're friends now doesn't matter, and in fact arguments over money are one of the classic things that kill friendships. I'd be careful making this deal with a relative (though in fact I did loan my brother a sizable chunk of change to help him bridge between his old house and new house, and that's registered as a mortgage to formalize it). I'd insist on formalizing who owns what even with a spouse, since marriages don't always last. With someone who's just a co-worker and casual friend, it's business and only business, and needs to be both evaluated and contracted as such to protect both of you. If you can't make an agreement that you'd be reasonably comfortable signing with a stranger, think long and hard about whether you want to sign it at all. I'll also point out that nobody is completely safe from long-term unemployment. The odds may be low, but people do get blindsided. The wave of foreclosures during and after the recent depression is direct evidence of that.",
"title": ""
},
{
"docid": "9008113aefe4cd055d3fb9e59ff3ebc7",
"text": "With no agreement in place, the other person can go after half the equity in the house. In my opinion, wanting their down payment back seems reasonable.",
"title": ""
},
{
"docid": "fff2035f2cc2849e6eba49a486a61c8c",
"text": "\"Not sure what you are talking about. The house isn't part of a business so neither of you can deduct half of normal maintenance and repairs. It is just the cost of having a house. The only time this would be untrue is if the thing that you are buying for the house is part of a special deduction or rebate for that tax year. For instance the US has been running rebates and deductions on certain household items that reduce energy - namely insulation, windows, doors, and heating/cooling systems (much more but those are the normal things). And in actuality if your brother is using the entire house as a living quarters you should be charging him some sort of rent. The rent could be up to the current monthly market price of the home minus 50%. If it were my family I would probably charge them what I would pay for a 3% loan on the house minus 50%. Going back to the repairs... Really if these repairs are upgrades and not things caused by using the house and \"\"breaking\"\" or \"\"wearing\"\" things you should be paying half of this, as anything that contributes to the increased property value should be paid for equally if you both are expecting to take home 50% a piece once you sell it.\"",
"title": ""
},
{
"docid": "ae78b765445388e78ff43a789df3076b",
"text": "\"Disclaimer: I am a law student, not a lawyer, and don't claim to have a legal opinion one way or another. My answer is intended to provide a few potentially relevant examples from case law in order to make the point that you should be cautious (and seek proper advice if you think that caution is warranted). Nor am I claiming that the facts in these cases are the same as yours; merely that they highlight the flexible approach that the courts take in such cases, and the fact that this area of law is complicated. I don't think it is sensible to just assume that there is no way that your girlfriend could acquire property rights as a rent paying tenant if arranged on an informal basis with no evidence of the intention of the arrangement. One of the answers mentions a bill which is intended to give non-married partners more rights than they have presently. But the existence of that bill doesn't prove the absence of any existing law, it merely suggests a possible legal position that might exist in the future. A worst-case assumption should also be made here, since you're considering the possibility of what can go wrong. So let's say for the sake of the argument that you have a horrible break up and your girlfriend is willing to be dishonest about what the intentions were regarding the flat (e.g. will claim that she understood the arrangement to be that she would acquire ownership rights in exchange for paying two thirds of the monthly mortgage repayment). Grant v Edwards [1986] Ch 638 - Defendant had property in the name of himself and his brother. Claimant paid nothing towards the purchase price or towards mortgage payments, but paid various outgoings and expenses. The court found a constructive trust in favor of the claimant, who received a 50% beneficial interest in the property. Abbot v Abbot [2007] UKPC 53, [2008] 1 FLR 1451 - Defendant's mother gifted land to a couple with the intention that it be used as a matrimonial home. However it was only put into the defendant's name. The mortgage was paid from a joint account. The claimant was awarded a 50% share. Thompson v Hurst [2012] EWCA Civ 1752, [2014] 1 FLR 238 - Defendant was a council tenant. Later, she formed a relationship with the claimant. They subsequently decided to buy the house from the council, but it was done in the defendant's name. The defendant had paid all the rent while a tenant, and all the mortgage payments while an owner, as well as all utility bills. The claimant sometimes contributed towards the council tax and varying amounts towards general household expenses (housekeeping, children, etc.). During some periods he paid nothing at all, and at other times he did work around the house. Claimant awarded 10% ownership. Aspden v Elvy [2012] EWHC 1387 (Ch), [2012] 2 FCR 435 - The defendant purchased a property in her sole name 10 years after the couple had separated. The claimant helped her convert the property into a house. He did much of the manual work himself, lent his machinery, and contributed financially to the costs. He was awarded a 25% share. Leeds Building Society v York [2015] EWCA Civ 72, [2015] HLR 26 (p 532) - Miss York and Mr York had a dysfunctional and abusive relationship and lived together from 1976 until his death in 2009. In 1983 Mr York bought a house with a mortgage. He paid the monthly mortgage repayments and other outgoings. At varous times Miss York contributed her earnings towards household expenses, but the judge held that this did \"\"not amount to much\"\" over the 33 year period, albeit it had helped Mr York being able to afford the purchase in the first place. She also cooked all the family meals and cared for the daughter. She was awarded a 25% share. Conclusion: Don't make assumptions, consider posting a question on https://law.stackexchange.com/ , consider legal advice, and consider having a formal contract in place which states the exact intentions of the parties. It is a general principle of these kinds of cases that the parties need to have intended for the person lacking legal title to acquire a beneficial interest, and proof to the contrary should make such a claim likely to fail. Alternatively, decide that the risk is low and that it's not worth worrying about. But make a considered decision either way.\"",
"title": ""
},
{
"docid": "897b8449942ba103ae50e8cf868afa70",
"text": "\"I will expand on Bacon's comment. When you are married, and you acquire any kind of property, you automatically get a legal agreement. In most states that property is owned jointly and while there are exceptions that is the case most of the time. When you are unmarried, there is no such assumption of joint acquisition. While words might be said differently between the two parties, if there is nothing written down and signed then courts will almost always assume that only one party owns the property. Now unmarried people go into business all the time, but they do so by creating legally binding agreements that cover contingencies. If you two do proceed with this plan, it is necessary to create those documents with the help of a lawyer. Although expensive paying for this protection is a small price in relation to what will probably be one of the largest purchases in your lives. However, I do not recommend this. If Clayton can and wants to buy a home he should. Emma can rent from Clayton. That rent could any amount the two agree on, including zero. If the two do get married, well then Emma will end up owning any equity after that date. If they stay together until death, it is likely that she (or her heirs) will own half of it anyway. Also if this house is sold, the equity pass into larger house they buy after marriage, then that will be owned jointly. If they do break up, the break up is clean and neat. Presumably she would have paid rent anyway, so nothing is lost. Many people run into trouble having to sell at a bad time in a relationship that coincides with a weak housing market. In that case, both parties lose. So much like Bacon's advice I would not buy jointly. There is no upside, and you avoid a lot of downside. Don't play \"\"house\"\" by buying a home jointly when you are unmarried.\"",
"title": ""
},
{
"docid": "7455319de0de59050f5b59e53c48bbe1",
"text": "\"I am not a lawyer nor a tax accountant, so if such chimes in here I'll gladly defer. But my understanding is: If you're romantically involved and living together you're considered a \"\"household\"\" and thus your finances are deemed shared for tax purposes. Any money your partner gives you toward paying the bills is not considered \"\"rent\"\" but \"\"her contribution to household expenses\"\". (I don't know the genders but I'll call your partner \"\"her\"\" for convenience.) This is not income and is not taxed. On the off chance that the IRS actually investigated your arrangement, don't call any money she gives you \"\"rent\"\": call it \"\"her contribution to living expenses\"\". If you were two (or more) random people sharing a condo purely for economic reasons, i.e. you are not a family in any sense but each of you would have trouble affording a place on your own, it's common for all the room mates to share the rent or mortgage, utilities, etc, but for one person to collect all the money and write one check to the landlord, etc. Tax law does not see this as the person who writes the check collecting rent from the others, it's just a book-keeping convenience, and so there is no taxable transaction. (Of course the landlord owes taxes on the rental income, but that's not your problem.) In that case it likely would be different if one person outright owned the place and really was charging the others rent. But then he could claim deductions for all the expenses of maintaining it, including depreciation, so if it really was a case of room mates sharing expenses, the taxable income would likely be just about zero anyway. So short answer: If you really are a \"\"couple\"\", there are no taxable transactions here. If the IRS should actually question it, don't refer to it as \"\"collecting rent\"\" or any other words that imply this is a business arrangement. Describe it as a couple sharing expenses. (People sometimes have created tax problems for themselves by their choice of words in an audit.) But the chance that you would ever be audited over something like this is probably remote. I suppose that if at some point you break up, but you continue to live together for financial reasons (or whatever reasons), that could transform this into a business relationship and that would change my answer.\"",
"title": ""
},
{
"docid": "312a0b54124fbd8649a9f9aecd4b5b30",
"text": "I second (or fifth?) the answers of the other users in that this should have been foreseen and discussed prior to entering the partnership. But to offer a potential solution: If the mortgage company allows you to assume the whole mortgage (big if) you could buy the other partner out. To determine what a fair buyout would be, take the current value of the house less the remaining mortgage to get the current equity. Half that is each partner's current gain (or potentially loss), and could be considered a fair buyout. At this point the partner realizes any gains made in the last 5 years, and from now on the whole house (and any future gains or losses) will be yours. Alternatively your partner could remain a full partner (if s/he so desires) until the house sells. You would see the house as a separate business, split the cost as you have, and you would pay fair market rent each month (half of which would come back to you). A third option would be to refinance the house, with you as a sole mortgage holder. To factor in how much your partner should receive out of the transaction, you can take his/her current equity and subtract half of the costs associated with the refi. I would also recommend both of you seek out the help of a real estate lawyer at this point to help you draft an agreement. It sounds like you're still on good terms, so you could see a lawyer together; this would be helpful because they should know all the things you should look out for in a situation like this. Good luck!",
"title": ""
},
{
"docid": "cdfe549e223d987b50180c7313a44aa3",
"text": "The simplest way to handle this is for you to rent the apartment and sublet to the girlfriend and friend. I'd split the utilities evenly, one-third from each. The reason for this is that each of you contribute evenly to generating the utility bills. It's not like your income makes the water cost more for you. Utilities are driven by usage. Dividing them other than equally is likely to lead to more problems than it solves. Also, it seems unlikely that a different apartment would use significantly different water, electricity, or internet. Those are driven by the appliances rather than the size or location of the apartment. Only pay more for the utilities if you want something that they don't. For example, maybe you want HBO, etc. It would be reasonable for you to pay the entire premium if that's a luxury that they simply wouldn't buy. I'd also divide the groceries evenly if you share and share alike. If you eat separate meals, you can buy separate groceries. If the rent can't be split evenly but you could afford it alone, then you can just sign up for it. If you break up with the girlfriend and/or the friend moves out, you're still fine. You have your fancy apartment and can afford it. The bigger problem comes if you can't afford the apartment without both the girlfriend and friend contributing. If so, you should probably avoid this situation. It's fragile. Any person leaving would put you in a financially untenable position. You can look for a new tenant to replace your friend, but you can't exactly rely on getting a new move-in girlfriend on demand. Neither the girlfriend nor the friend can afford to be on the main lease. In case of emergency or tragedy, they couldn't replace you as a tenant. That's why they should sublet. Then their obligation is to you, not to the landlord. How much apartment would the girlfriend and friend get if you weren't involved? What rents would they pay? That's probably how much rent they should pay for this apartment. You want a better apartment (or a better location)? That's on you. You should only do this if you want to do it. If you want to share apartments with the girlfriend and friend, then do so. Work out something equitable. If you plan on moving in together to reduce your costs, then you don't sound like you are compatible. Obviously there are reasons to move in with the girlfriend aside from costs. Why can't the friend get his or her own place? The added rent probably won't do more than pay for the added room (you could get a one bedroom without the friend). That points to an alternative way of calculating the friend's contribution: the difference between a two bedroom and a one bedroom apartment. That's the additional cost of the bigger apartment. If the friend can't afford that, then this might not be a good idea. Make sure that you can afford the apartment if one or both of the friend and girlfriend move out. You can eventually replace the friend as the tenant but don't rely on doing the same with the girlfriend. Share utilities evenly. Possibly groceries too. The friend should pay at least the added cost of the additional bedroom. Don't expect either to pay more in the new apartment than they would pay without you. You should be the only one on the main lease; sublet to them.",
"title": ""
},
{
"docid": "471cf77dadff4da873d468a9f47e4634",
"text": "Trying to forcefully reclaim the money will ruin the relationship. In general it's bad practice to loan money to family.",
"title": ""
},
{
"docid": "28485e0d5f2e225bab5d6de3d6a31d45",
"text": "Definitely get a lawyer to write up all the details of the partnership in a formal agreement. If your ex does not want to do this, that is a bad sign. You both need to be clear about expectations and responsibilities in this partnership, and define an exit strategy in the case one of you wants out. This is the most fair to both parties. Generally, what is common is that property is split cleanly when the relationship ends. I would strongly recommend you both work towards a clean split with no joint property ownership. How this looks depends on your unique situation. To address your questions 2 and 3: You have two roles here - tenant and owner. As a 50% owner, you are running a business with a partner. That business will have assets (home), income, expenses, and profit. You basically need to run this partnership as a simple business. All the rent income (your rent and the other tenant's) should go into a separate account. The mortgage and all other housing expenses are then paid from only this account. Any excess is then profit that may be split 50/50. All expenses should be agreed upon by both of you, either by contract or by direct communication. You should see a financial professional to make sure accounting and taxes are set up properly. Under this system, your ex could do work on the house and be paid from the business income. However, they are responsible to you to provide an estimate and scope of work, just like any other contractor. If you as a joint owner agree to his price, he then could be paid out of the business income. This reduces the business cash flow for the year accordingly. You can probably see how this can get very complicated very fast. There is really no right or wrong answer on what both of you decide is fair and best. For the sake of simplicity and the least chance of a disaster, the usual and recommended action is to cleanly split all property. Good Luck!",
"title": ""
},
{
"docid": "cac3fe9a31f1e771a5370d19b23b68b5",
"text": "If the house is titled to the estate, neither of you own the house and it cannot be mortgaged. Executor of the will is supposed to provide to you and to the probate court periodic reports as to what is going on. Check them up and talk to your probate lawyer.",
"title": ""
},
{
"docid": "d5e93075e5b363f36d9be5f797b3e6b3",
"text": "In this case can the title of the home still be held by both? Yes, it is possible to have additional people on title that are not on the mortgage. Would the lender (bank) have any reservations about this since a party not on the mortgage has ownership of the property? Possibly, but there is a very simple way to avoid this. Clayton could simply purchase the home himself, and add Emma to the title after closing by recording a quitclaim deed. The lender can't stop that, and from their point of view it's actually better, since they have two people to go after in the case of default. (But despite it being better they often make it difficult to purchase Tip, when you have an attorney draft the quitclaim document, have them draft the reverse document too. (Emma relinquishing the property back to Clayton.) There is usually no extra charge for this and then you have it if you need it. For example, you may need to file the reverse forms if you want to refinance. As a side note, I agree with Grade 'Eh' Bacon's and Pete B.'s in recommending that Clayton and Emma do not do this. Once they are married the property will either be automatically jointly owned, or a spouse can be added to the title easily, and until they are married there are no pros but many cons to doing this. Reasons not to do it: As a side note, in a comment it was proposed: ...suppose Clayton loves Emma so much that he wants her name to be on the house... I understand the desire to do this from an emotional point of view, but realize this does not make sense from a financial point of view.",
"title": ""
},
{
"docid": "7ce55e9bf0dbb378da0165acec00aef8",
"text": "It's not typically possible for someone to jointly own the house, who is not also jointly liable for the mortgage. This doesn't matter however, because it is possible for two people to get a mortgage together, where only one person's income is assessed by the lender. If that person could get a mortgage of that amount on their own, then the couple should also be able to get the same mortgage. Source: My wife and I got a mortgage like this. She is self-employed, rather than meet the very high requirements for proving her self-employment income, we simply said that we only wanted my income to be taken into consideration.",
"title": ""
}
] |
fiqa
|
0894b3b0535cb5489ae3e3cfa243c138
|
Investment property information resources
|
[
{
"docid": "8ed9ef428b4cc9bb84ceb6bd5124b274",
"text": "\"I personally found the \"\"For Dummies\"\" books, on property investment, very helpful and a great primer. I found them unbiased and very informative, laying out the basic principles. Depending on your knowledge it can provide you with enough of a foundation to have an informed conversation with banks/real estates etc. Watch the markets for a while (at least 6 months) to know what prices vendors will be expecting and rents tenants will be expecting, most property magazines will also contain a suburb summary in the back. When you get closer to purchase make sure to ask your bank for the RP Data reports on the properties you are looking at, the banks will typically provide these for free. I also set out some points for myself which I made clear for myself at the beginning: This might provide a good starting point and really narrow down your research options as generic research on property investment can be overwhelming. I ended up with a 3 Bedder in western Sydney that has so far happily paid for itself. Building a good relationship with real estate agents and attending lots of open homes/auctions and talking to other investors can only help. I was once told if you attend free property investment seminars you will always learn at least one new thing (be it statistics, methodologies, finance options etc ), with that in mind always keep a level head, leave your wallet at home and don't sign up to anything. At the end of the day keep a cool head, don't stop reading and rush nothing.\"",
"title": ""
},
{
"docid": "55ecdda1e229a73cd562b64220076832",
"text": "As user14469 mentions you would have to decide what type of properties you would like to invest in. Are you after negatively geared properties that may have higher long term growth potential (usually within 15 to 20km from major cities), or after positive cash-flow properties which may have a lower long term growth potential (usually located more than 20km from major cities). With negative geared properties your rent from the property will not cover the mortgage and other costs, so you will have to supplement it through your income. The theory is that you can claim a tax deduction on your employment income from the negative gearing (benefits mainly those on higher tax brackets), and the potential long term growth of the property will make up for the negative gearing over the long term. If you are after these type of properties Michael Yardney has some books on the subject. On the other hand, positive cash-flow properties provide enough rental income to cover the mortgage and other costs. They put cash into your pockets each week. They don't have as much growth potential as more inner city properties, but if you stick to the outer regions of major cities, instead of rural towns, you will still achieve decent long term growth. If you are after these type of properties Margaret Lomas has some books on the subject. My preference is for cash-flow positive properties, and some of the areas user14469 has mentioned. I am personally invested in the Penrith and surrounding areas. With negatively geared properties you generally have to supplement the property with your own income and generally have to wait for the property price to increase so you build up equity in the property. This then allows you to refinance the additional equity so you can use it as deposits to buy other properties or to supplement your income. The problem is if you go through a period of low, stagnate or negative growth, you may have to wait quite a few years for your equity to increase substantially. With positively geared properties, you are getting a net income from the property every week so using none of your other income to supplement the property. You can thus afford to buy more properties sooner. And even if the properties go through a period of low, stagnate or negative growth you are still getting extra income each week. Over the long term these properties will also go up and you will have the benefit of both passive income and capital gains. I also agree with user14469 regarding doing at least 6 months of research in the area/s you are looking to buy. Visit open homes, attend auctions, talk to real estate agents and get to know the area. This kind of research will beat any information you get from websites, books and magazines. You will find that when a property comes onto the market you will know what it is worth and how much you can offer below asking price. Another thing to consider is when to buy. Most people are buying now in Australia because of the record low interest rates (below 5%). This is causing higher demand in the property markets and prices to rise steadily. Many people who buy during this period will be able to afford the property when interest rates are at 5%, but as the housing market and the economy heat up and interest rates start rising, they find it hard to afford the property when interest rate rise to 7%, 8% or higher. I personally prefer to buy when interest rates are on the rise and when they are near their highs. During this time no one wants to touch property with a six foot pole, but all the owners who bought when interest rates where much lower are finding it hard to keep making repayments so they put their properties on the market. There ends up being low demand and increased supply, causing prices to fall. It is very easy to find bargains and negotiate lower prices during this period. Because interest rates will be near or at their highs, the economy will be starting to slow down, so it will not be long before interest rates start dropping again. If you can afford to buy a property at 8% you will definitely be able to afford it at 6% or lower. Plus you would have bought at or near the lows of the price cycle, just before prices once again start increasing as interest rates drop. Read and learn as much as possible from others, but in the end make up your own mind on the type of properties and areas you prefer.",
"title": ""
}
] |
[
{
"docid": "f89ed67b5f0774d7905ab336c87cbb9a",
"text": "REITs can be classified as equity, mortgage, or hybrid. A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. Trades like equity but the underlying is a property ot mortgage. So you are investing in real estate but without directly dealing with it. So you wouldn't classify it as real estate. CD looks more like a bond.If you look at the terms and conditions they have many conditions as a bond i.e. callable, that is a very precious option for both the buyer and seller. Self occupied house - Yes an asset because it comes with liabilities. When you need to sell it you have to move out. You have to perform repairs to keep it in good condition. Foreign stock mutual fund - Classify it as Foreign stocks, for your own good. Investments in a foreign country aren't the same as in your own country. The foreign economy can go bust, the company may go bust and you would have limited options of recovering your money sitting at home and so on and so forth.",
"title": ""
},
{
"docid": "70011115542a3425b818a404927a4b7b",
"text": "I'm a college student and recently got an interview at an energy investing firm for a job upon graduation. I have academic and extracurricular experience in finance, but I'm not too knowledgeable on the energy sector. What are some good resources (websites, newsletters, etc.) on learning more about the energy industry? Are there any industry specific questions that are likely to come up during the interview?",
"title": ""
},
{
"docid": "ce932128386e9ac1e3bdbe0c347a0ad7",
"text": "If annualized rate of return is what you are looking for, using a tool would make it a lot easier. In the post I've also explained how to use the spreadsheet. Hope this helps.",
"title": ""
},
{
"docid": "9440b484bb97504f5e7bf8dfd994246b",
"text": "If you can get the health ratios based off of the total sales the tenant does divided by their rent plus nets. I know a quite a few big firms look at that to determine the health of the tenant. Another item would be a surrounding market overview. Occupancy rates, average rent, big clients, future developments. The information on existing competitive properties are easy to find, just type in the name of their property plus the word leasing on the end. To find future development information, the city they submit to has to approve the plans. Some cities have it set up on their website over a Google maps type of link. Edit: spelling Good luck! Edit 2: example of competition link. http://properties.brixmor.com/cre/commercial-real-estate-listings/frisco/texas/preston-ridge/overview/",
"title": ""
},
{
"docid": "47949a3d96c655c0cb45eba95c6e912e",
"text": "\"This turned out be a lot longer than I expected. So, here's the overview. Despite the presence of asset allocation calculators and what not, this is a subjective matter. Only you know how much risk you are willing to take. You seem to be aware of one rule of thumb, namely that with a longer investing horizon you can stand to take on more risk. However, how much risk you should take is subject to your own risk aversion. Honestly, the best way to answer your questions is to educate yourself about the individual topics. There are just too many variables to provide neat, concise answers to such a broad question. There are no easy ways around this. You should not blindly rely on the opinions of others, but rather use your own judgment to asses their advice. Some of the links I provide in the main text: S&P 500: Total and Inflation-Adjusted Historical Returns 10-year index fund returns The Motley Fool Risk aversion Disclaimer: These are the opinions of an enthusiastic amateur. Why should I invest 20% in domestic large cap and 10% in developing markets instead of 10% in domestic large cap and 20% in developing markets? Should I invest in REITs? Why or why not? Simply put, developing markets are very risky. Even if you have a long investment horizon, you should pace yourself and not take on too much risk. How much is \"\"too much\"\" is ultimately subjective. Specific to why 10% in developing vs 20% in large cap, it is probably because 10% seems like a reasonable amount of your total portfolio to gamble. Another way to look at this is to consider that 10% as gone, because it is invested in very risky markets. So, if you're willing to take a 20% haircut, then by all means do that. However, realize that you may be throwing 1/5 of your money out the window. Meanwhile, REITs can be quite risky as investing in the real estate market itself can be quite risky. One reason is that the assets are very much fixed in place and thus can not be liquidated in the same way as other assets. Thus, you are subject to the vicissitudes of a relatively small market. Another issue is the large capital outlays required for most commercial building projects, thus typically requiring quite a bit of credit and risk. Another way to put it: Donald Trump made his name in real estate, but it was (and still is) a very bumpy ride. Yet another way to put it: you have to build it before they will come and there is no guarantee that they will like what you built. What mutual funds or index funds should I investigate to implement these strategies? I would generally avoid actively managed mutual funds, due to the expenses. They can seriously eat into the returns. There is a reason that the most mutual funds compare themselves to the Lipper average instead of something like the S&P 500. All of those costs involved in managing a mutual fund (teams of people and trading costs) tend to weigh down on them quite heavily. As the Motley Fool expounded on years ago, if you can not do better than the S&P 500, you should save yourself the headaches and simply invest in an S&P 500 index fund. That said, depending on your skill (and luck) picking stocks (or even funds), you may very well have been able to beat the S&P 500 over the past 10 years. Of course, you may have also done a whole lot worse. This article discusses the performance of the S&P 500 over the past 60 years. As you can see, the past 10 years have been a very bumpy ride yielding in a negative return. Again, keep in mind that you could have done much worse with other investments. That site, Simple Stock Investing may be a good place to start educating yourself. I am not familiar with the site, so do not take this as an endorsement. A quick once-over of the material on the site leads me to believe that it may provide a good bit of information in readily digestible forms. The Motley Fool was a favorite site of mine in the past for the individual investor. However, they seem to have turned to the dark side, charging for much of their advice. That said, it may still be a good place to get started. You may also decide that it is worth paying for their advice. This blog post, though dated, compares some Vanguard index funds and is a light introduction into the contrarian view of investing. Simply put, this view holds that one should not be a lemming following the crowd, rather one should do the opposite of what everyone else is doing. One strong argument in favor of this view is the fact that as more people pile onto an investing strategy or into a particular market, the yields thin out and the risk of a correction (i.e. a downturn) increases. In the worst case, this leads to a bubble, which corrects itself suddenly (or \"\"pops\"\" thus the term \"\"bubble\"\") leading to quite a bit of pain for the unprepared participants. An unprepared participant is one who is not hedged properly. Basically, this means they were not invested in other markets/strategies that would increase in yield as a result of the event that caused the bubble to pop. Note that the recent housing bubble and resulting credit crunch beat quite heavily on the both the stock and bond markets. So, the easy hedge for stocks being bonds did not necessarily work out so well. This makes sense, as the housing bubble burst due to concerns over easy credit. Unfortunately, I don't have any good resources on hand that may provide starting points or discuss the various investing strategies. I must admit that I am turning my interests back to investing after a hiatus. As I stated, I used to really like the Motley Fool, but now I am somewhat suspicious of them. The main reason is the fact that as they were exploring alternatives to advertising driven revenue for their site, they promised to always have free resources available for those unwilling to pay for their advice. A cursory review of their site does show a decent amount of general investing information, so take these words with a grain of salt. (Another reason I am suspicious of them is the fact that they \"\"spammed\"\" me with lots of enticements to pay for their advice which seemed just like the type of advice they spoke against.) Anyway, time to put the soapbox away. As I do that though, I should explain the reason for this soapboxing. Simply put, investing is a risky endeavor, any way you slice it. You can never eliminate risk, you can only hope to reduce it to an acceptable level. What is acceptable is subject to your situation and to the magnitude of your risk aversion. Ultimately, it is rather subjective and you should not blindly follow someone else's opinion (professional or otherwise). Point being, use your judgment to evaluate anything you read about investing. If it sounds too good to be true, it probably is. If someone purports to have some strategy for guaranteed (steady) returns, be very suspicious of it. (Read up on the Bernard Madoff scandal.) If someone is putting on a heavy sales pitch, be weary. Be especially suspicious of anyone asking you to pay for their advice before giving you any solid understanding of their strategy. Sure, many people want to get paid for their advice in some way (in fact, I am getting \"\"paid\"\" with reputation on this site). However, if they take the sketchy approach of a slimy salesmen, they are likely making more money from selling their strategy, than they are from the advice itself. Most likely, if they were getting outsized returns from their strategy they would keep quiet about it and continue using it themselves. As stated before, the more people pile onto a strategy, the smaller the returns. The typical model for selling is to make money from the sale. When the item being sold is an intangible good, your risk as a buyer increases. You may wonder why I have written at length without much discussion of asset allocation. One reason is that I am still a relative neophyte and have a mostly high level understanding of the various strategies. While I feel confident enough in my understanding for my own purposes, I do not necessarily feel confident creating an asset allocation strategy for someone else. The more important reason is that this is a subjective matter with a lot of variables to consider. If you want a quick and simple answer, I am afraid you will be disappointed. The best approach is to educate yourself and make these decisions for yourself. Hence, my attempt to educate you as best as I can at this point in time. Personally, I suggest you do what I did. Start reading the Wall Street Journal every day. (An acceptable substitute may be the business section of the New York Times.) At first you will be overwhelmed with information, but in the long run it will pay off. Another good piece of advice is to be patient and not rush into investing. If you are in a hurry to determine how you should invest in a 401(k) or other such investment vehicle due to a desire to take advantage of an employer's matching funds, then I would place my money in an S&P 500 index fund. I would also explore placing some of that money into broad index funds from other regions of the globe. The reason for broad index funds is to provide some protection from the normal fluctuations and to reduce the risk of a sudden downturn causing you a lot pain while you determine the best approach for yourself. In this scenario, think more about capital preservation and hedging against inflation then about \"\"beating\"\" the market.\"",
"title": ""
},
{
"docid": "c517ef7ba52c41d23492de2239036a19",
"text": "Investing in property hoping that it will gain value is usually foolish; real estate increases about 3% a year in the long run. Investing in property to rent is labor-intensive; you have to deal with tenants, and also have to take care of repairs. It's essentially getting a second job. I don't know what the word pension implies in Europe; in America, it's an employer-funded retirement plan separate from personally funded retirement. I'd invest in personally funded retirement well before buying real estate to rent, and diversify my money in that retirement plan widely if I was within 10-20 years of retirement.",
"title": ""
},
{
"docid": "faafc603fc4fdc218a969f17936f5d17",
"text": "Our two rentals have yielded 8.5% over the past two years (averaged). That is net, after taxes, maintenance, management, vacancy, insurance, interest. I am only interested in cash flow - expenses / original investment. If you aren't achieving at least 4.5-5% net on your original investment you probably could invest elsewhere and earn a better return on a similar risk profile.",
"title": ""
},
{
"docid": "5a30a07893c7f5127ae40ca9d2e3ee11",
"text": "I think it would be good to familiarize yourself with the market in the subject building's area and convey that knowledge. What is a typical cap rate for the area? Comparable sales? Any new employers coming into the area that affect the local economy in a positive way?",
"title": ""
},
{
"docid": "d33cfed182d3f8615b0308ee695e4067",
"text": "As a landlord for 14 years with 10 properties, I can give a few pointers: be able and skilled enough to perform the majority of maintenance because this is your biggest expense otherwise. it will shock you how much maintenance rental units require. don't invest in real estate where the locality/state favors the tenant (e.g., New York City) in disputes. A great state is Florida where you can have someone evicted very quickly. require a minimum credit score of 620 for all tenants over 21. This seems to be the magic number that keeps most of the nightmare tenants out makes sure they have a job nearby that pays at least three times their annual rent every renewal, adjust your tenant's rent to be approximately 5% less than going rates in your area. Use Zillow as a guide. Keeping just below market rates keeps tenants from moving to cheaper options. do not rent to anyone under 30 and single. Trust me trust me trust me. you can't legally do this officially, but do it while offering another acceptable reason for rejection; there's always something you could say that's legitimate (bad credit, or chose another tenant, etc.) charge a 5% late fee starting 10 days after the rent is due. 20 days late, file for eviction to let the tenant know you mean business. Don't sink yourself too much in debt, put enough money down so that you start profitable. I made the mistake of burying myself and I haven't barely been able to breathe for the entire 14 years. It's just now finally coming into profitability. Don't get adjustable rate or balloon loans under any circumstances. Fixed 30 only. You can pay it down in 20 years and get the same benefits as if you got a fixed 20, but you will want the option of paying less some months so get the 30 and treat it like a 20. don't even try to find your own tenants. Use a realtor and take the 10% cost hit. They actually save you money because they can show your place to a lot more prospective tenants and it will be rented much sooner. Empty place = empty wallet. Also, block out the part of the realtor's agreement-to-lease where it states they keep getting the 10% every year thereafter. Most realtors will go along with this just to get the first year, but if they don't, find another realtor. buy all in the same community if you can, then you can use the same vendor list, the same lease agreement, the same realtor, the same documentation, spreadsheets, etc. Much much easier to have everything a clone. They say don't put all your eggs in one basket, but the reality is, running a bunch of properties is a lot of work, and the more similar they are, the more you can duplicate your work for free. That's worth a lot more day-to-day than the remote chance your entire community goes up in flames",
"title": ""
},
{
"docid": "ba0f6fa81e3978cf65053e7e4e9a322f",
"text": "I've been starting to invest in real estate myself, and [this site](http://www.biggerpockets.com/forums/categories) has been incredibly helpful. It was started by a professional real estate investor who wanted to create a community for helping investors of all types and experience levels. You can learn a lot just by reading the various posts, but I highly recommend creating an account and introducing yourself to the community. There are many members with a lot of experience who are happy to help newbies.",
"title": ""
},
{
"docid": "15b788b4c1659b1bb97b9e014bb2e216",
"text": "You're off to a great start. Here are the steps I would take: 1.) Pay off any high-interest debt. 2.) Keep six to twelve months in a highly liquid emergency fund. If the banks aren't safe, also consider having one or two months of cash or cash-equivalents on the premises. 3.) Rent a larger apartment, if possible, until you've saved more. The cost of the land and construction will consume a very large portion of your net worth. Given the historical political instability in that region, mentioned by the previous comments, I would hesitate to put such a large percentage of your wealth in to real estate. 4.) Get a brokerage account that's insured and well known. If you're willing to take the five percent hit to move assets offshore, then consider Vanguard. I'm not sure if they'll give you an account but they're generally acknowledged as an amazing broker in the US with low fees and amazing funds. Five percent (12,500) is worth it in my opinion. As you accumulate more wealth, you can stop moving cash overseas and keep a larger mix domestically. 5.) Invest in your business and yourself even more. As far as finding new investment opportunities, I would go through the list of all the typical major asset classes and consider the pros and cons: fixed-income, stocks, currencies, real estate / REITs, own a small business, commodities etc.,",
"title": ""
},
{
"docid": "122d68290fbabfe0f17c8406271bf9f1",
"text": "Based on what you've said I think buying a rental is risky for you. It looks like you heard that renting a house is profitable and Zillow supported that idea. Vague advice + a website designed for selling + large amounts of money = risky at the very least. That doesn't mean that rental property is super risky it just means that you haven't invested any time into learning the risks and how you can manage them. Once you learn that your risk reduces dramatically. In general though I feel that rental property has a good risk/reward ratio. If you're willing to put in the time and energy to learn the business then I'd encourage you to buy property. If you're not willing to do that then rentals will always be a crap shoot. One thing about investing in rental property is you have the ability to have more impact on your investment than you do dropping money in the stock market which is good and bad.",
"title": ""
},
{
"docid": "e3834023eee46345c1a76dc2fc03ec2f",
"text": "Here is one the links for Goldmansachs. Not to state the obvious, but most of their research is only available to their clients. http://www.goldmansachs.com/research/equity_ratings.html",
"title": ""
},
{
"docid": "b4510cf6016c180b947eab26ae6b837c",
"text": "\"Here's a very basic MySQL query I put together that does what I want for income/expense report. Basically it reports the same info as the canned income/expense report, but limits it those income/expenses associated with a particular account (rental property, in my case). My main complaint is the output \"\"report\"\" is pretty ugly. And modifying for a different rental property requires changing the code (I could pass parameters etc). Again, the main \"\"issue\"\" in my mind with GnuCash income/expense report is that there is no filter for which account (rental property) you want income/expenses for, unless you set up account tree so that each rental property has its own defined incomes and expenses (i.e. PropertyA:Expense:Utility:electric). Hopefully someone will point me to a more elegant solution that uses the report generator built into GnuCash. THanks! SELECT a2.account_type , a4.name, a3.name, a2.name, SUM(ROUND(IF(a2.account_type='EXPENSE',- s2.value_num,ABS(s2.value_num))/s2.value_denom,2)) AS amt FROM ( SELECT s1.tx_guid FROM gnucash.accounts AS a1 INNER JOIN gnucash.splits AS s1 ON s1.account_guid = a1.guid WHERE a1.name='Property A' ) AS X INNER JOIN gnucash.splits s2 ON x.tx_guid = s2.tx_guid INNER JOIN gnucash.accounts a2 ON a2.guid=s2.account_guid INNER JOIN gnucash.transactions t ON t.guid=s2.tx_guid LEFT JOIN gnucash.accounts a3 ON a3.guid = a2.parent_guid LEFT JOIN gnucash.accounts a4 ON a4.guid = a3.parent_guid WHERE a2.name <> 'Property A' # get all the accounts associated with tx in Property A account (but not the actual Property A Bank duplicate entries. AND t.post_date BETWEEN CAST('2016-01-01' AS DATE) AND CAST('2016-12-31' AS DATE) GROUP BY a2.account_type ,a4.name, a3.name, a2.name WITH ROLLUP ; And here's the output. Hopefully someone has a better suggested approach!\"",
"title": ""
},
{
"docid": "13eebc93749f883f4ed2b7a6c5550e65",
"text": "If the cash flow information is complete, the valuation can be determined with relative accuracy and precision. Assuming the monthly rent is correct, the annual revenue is $1,600 per year, $250/mo * 12 months - $1,400/year in taxes. Real estate is best valued as a perpetuity where P is the price, i is the income, and r is the rate of interest. Theoreticians would suggest that the best available rate of interest would be the risk free rate, a 30 year Treasury rate ~3.5%, but the competition can't get these rates, so it is probably unrealistic. Anways, aassuming no expenses, the value of the property is $1,600 / 0.035 at most, $45,714.29. This is the general formula, and it should definitely be adjusted for expenses and a more realistic interest rate. Now, with a better understanding of interest rates and expenses, this will predict the most likely market value; however, it should be known that whatever interest rate is applied to the formula will be the most likely rate of return received from the investment. A Graham-Buffett value investor would suggest using a valuation no less than 15% since to a value investor, there's no point in bidding unless if the profits can be above average, ~7.5%. With a 15% interest rate and no expenses, $1,600 / .15, is $10,666.67. On average, it is unlikely that a bid this low will be successful; nevertheless, if multiple bids are placed using this similar methodology, by the law of small numbers, it is likely to hit the lottery on at most one bid.",
"title": ""
}
] |
fiqa
|
db416825fe5cfae7c05bdac83bdf66b0
|
How do I know if a dividend stock is “safe” and not a “dividend yield trap”?
|
[
{
"docid": "7819f1be16408a0aa802841cbf9596c1",
"text": "\"zPesk has a great answer about dividends generally, but to answer your question specifically about yield traps, here are a few things that I look for: As with everything, if it looks too good to be true, it probably is. A 17% yield is pretty out of this world, even for a REIT. And I wouldn't bet on it holding up. Compare a company's yield to that of others in the same industry (different industries have different \"\"standards\"\" for what is considered a high or low yield) Dividends have to come from somewhere, and that somewhere is cash flow. Look at the company's financial statements. Do they have sufficient cash flow to pay the dividend? Have there been any recent changes in their cash flow situation? How are earnings holding up? Debt levels? Cash on hand? Sudden moves in stock price. A sudden drop in the stock price will cause the yield to rise. Sometimes this indicates a bargain, but if the drop is due to a real worry about the company's financial health (see #2) it's probably an indication that a dividend cut is coming. What does their dividend history look like? Do they have a consistent track record of paying out good dividends for years and years? Companies with a track record of paying dividends consistently and/or increasing their dividend regularly are likely to continue to do so.\"",
"title": ""
},
{
"docid": "51d36978ab90ed5087d9720117aba377",
"text": "Great answers. Here's my two cents: First, don't forget to look at the overall picture, not just the dividend. Study the company's income statement, balance sheet and cash flow statement for the last few years. Make sure they have good earnings potential, and are not carrying too much debt. I know it's dull, but it's better to miss an opportunity than to buy a turkey and watch the dividends and the share price tank. I went through this with BAC (Bank of America) a couple of years ago. They had a 38-year history of rising dividends when I bought them, and the yield was about 8%. Then the banking crisis happened and the dividend went from $2.56/share to $0.04, and the price fell from $40 to $5. (I stuck with it, continuing to buy at lower and lower prices, and eventually sold them all at $12 and managed to break even, but it was not a pleasant experience) Do your homework. :) Still, one of the most reliable ways to judge a company's dividend-paying ability is to look at its dividend history. Once a company has started paying a dividend there is a strong expectation from shareholders that these payments will continue, and the company's management will try very hard to maintain them. (Though sometimes this doesn't work out, e.g. BAC) You should see an uninterrupted stream of non-decreasing payments over a period of at least 5 years (this timeframe is just a rule of thumb). Well-established, profitable companies also tend to increase their dividends over time, which has the added benefit of pushing up their share price. So you're getting increasing dividends and capital gains. Next, look at the company's payout ratio over time, and the actual cost of the dividend. Can the projected earnings cover the dividend cost without going above the payout ratio? If not, then the dividend is likely to get reduced. In the case of CIM, the dividend history is short and erratic. The earnings are also all over the place, so it's hard to predict what will happen next year. The company is up to its eyeballs debt (current ratio is .2), and its earnings have dropped by 20% in the last quarter. They have lost money in two of the last three years, even though earning have jumped dramatically. This is a very young company, and in my opinion it is too early for them to be paying dividends. A very speculative stock, and you are more likely to make money from capital gains than dividends. AAE is a different story. They are profitable, and have a long dividend history, although the dividend was cut in half recently. This may be a good to buy them hoping the dividend comes back once the economy recovers. However, they are trading at over 40 times earnings, which seems expensive, considering their low profit margins. Before investing your money, invest in your education. :) Get some books on interpretation of financial staments, and learn how to read the numbers. It's sort of like looking at the codes in The Matrix, and seeing the blonde in the red dress (or whatever it was). Good luck!",
"title": ""
},
{
"docid": "71e70c6c3d426e2f03e616d2b9f7092d",
"text": "\"Let me provide a general answer, that might be helpful to others, without addressing those specific stocks. Dividends are simply corporate payouts made to the shareholders of the company. A company often decides to pay dividends because they have excess cash on hand and choose to return it to shareholders by quarterly payouts instead of stock buy backs or using the money to invest in new projects. I'm not exactly sure what you mean by \"\"dividend yield traps.\"\" If a company has declared an dividend for the upcoming quarter they will almost always pay. There are exceptions, like what happened with BP, but these exceptions are rare. Just because a company promises to pay a dividend in the approaching quarter does not mean that it will continue to pay a dividend in the future. If the company continues to pay a dividend in the future, it may be at a (significantly) different amount. Some companies are structured where nearly all of there corporate profits flow through to shareholders via dividends. These companies may have \"\"unusually\"\" high dividends, but this is simply a result of the corporate structure. Let me provide a quick example: Certain ETFs that track bonds pay a dividend as a way to pass through interest payments from the underlying bonds back to the shareholder of the ETF. There is no company that will continue to pay their dividend at the present rate with 100% certainty. Even large companies like General Electric slashed its dividend during the most recent financial crisis. So, to evaluate whether a company will keep paying a dividend you should look at the following: Update: In regards to one the first stock you mentioned, this sentence from the companies of Yahoo! finance explains the \"\"unusually\"\" dividend: The company has elected to be treated as a REIT for federal income tax purposes and would not be subject to income tax, if it distributes at least 90% of its REIT taxable income to its share holders.\"",
"title": ""
}
] |
[
{
"docid": "04d940078dcec99600dfe5f9d54d4f39",
"text": "\"In some respects the analysis for this question is similar to comparing a \"\"safe\"\" return on a government bond vs. holding the stock market. Typically, the stock market's expected return will be higher -- i.e., there's a positive equity risk premium -- vs. a government bond (assuming it's held to maturity). There's no guarantee that the stock market will outperform, although the probability of outperformance rises (some analysts argue) the longer the holding period for equities beyond, say, 10 years. That's why there's generally a positive equity risk premium, otherwise no one (or relatively few investors) would hold equities.\"",
"title": ""
},
{
"docid": "ee000eda9fda8d9a922a0c33865f3118",
"text": "There can be the question of what objective do you have for buying the stock. If you want an income stream, then high yield stocks may be a way to get dividends without having additional transactions to sell shares while others may want capital appreciation and are willing to go without dividends to get this. You do realize that both Pfizer and GlaxoSmithKline are companies that the total stock value is over $100 billion yes? Thus, neither is what I'd see as a growth stock as these are giant companies that would require rather large sales to drive earnings growth though it may be interesting to see what kind of growth is expected for these companies. In looking at current dividends, one is paying 3% and the other 5% so I'm not sure either would be what I'd see as high yield. REITs would be more likely to have high dividends given their structure if you want something to research a bit more.",
"title": ""
},
{
"docid": "90cf653a01b6f9a034dc013a6e16605f",
"text": "\"value slip below vs \"\"equal a bank savings account’s safety\"\" There is no conflict. The first author states that money market funds may lose value, precisely due to duration risk. The second author states that money market funds is as safe as a bank account. Safety (in the sense of a bond/loan/credit) mostly about default risk. For example, people can say that \"\"a 30-year U.S. Treasury Bond is safe\"\" because the United States \"\"cannot default\"\" (as said in the Constitution/Amendments) and the S&P/Moody's credit rating is the top/special. Safety is about whether it can default, ex. experience a -100% return. Safety does not directly imply Riskiness. In the example of T-Bond, it is ultra safe, but it is also ultra risky. The volatility of 30-year T-Bond could be higher than S&P 500. Back to Money Market Funds. A Money Market Fund could hold deposits with a dozen of banks, or hold short term investment grade debt. Those instruments are safe as in there is minimal risk of default. But they do carry duration risk, because the average duration of the instrument the fund holds is not 0. A money market fund must maintain a weighted average maturity (WAM) of 60 days or less and not invest more than 5% in any one issuer, except for government securities and repurchase agreements. If you have $10,000,000, a Money Market Fund is definitely safer than a savings account. 1 Savings Account at one institution with amount exceeding CDIC/FDIC terms is less safe than a Money Market Fund (which holds instruments issued by 20 different Banks). Duration Risk Your Savings account doesn't lose money as a result of interest rate change because the rate is set by the bank daily and accumulated daily (though paid monthly). The pricing of short term bond is based on market expectation of the interest rates in the future. The most likely cause of Money Market Funds losing money is unexpected change in expectation of future interest rates. The drawdown (max loss) is usually limited in terms of percentage and time through examining historical returns. The rule of thumb is that if your hold a fund for 6 months, and that fund has a weighted average time to maturity of 6 months, you might lose money during the 6 months, but you are unlikely to lose money at the end of 6 months. This is not a definitive fact. Using GSY, MINT, and SHV as an example or short duration funds, the maximum loss in the past 3 years is 0.4%, and they always recover to the previous peak within 3 months. GSY had 1.3% per year return, somewhat similar to Savings accounts in the US.\"",
"title": ""
},
{
"docid": "da634ebdbf83038cd102763f2be89b76",
"text": "\"Invest in a high quality dividend paying group of stocks. Look up \"\"stock aristocrats\"\" to find longterm quality stocks that have regularly increased their dividends for over 20'years. 10'years is a safe period of time to invest in stocks. If you had bought stocks at their hight in 2007 and kept them through the 40% decline thru 2008 and 2009 and held on to them for 10 years until 2017, you would have earned a 40 % increase from when you purchased them. That is pretty much a worst case scenerio. If you had invested in dividend paying stocks and had earned an additional 2.5% per year, you would have exceeded your 5% goal. The lifetime yearly return of the stock market is 10%. Time is the only downside, but with ten years, you are almost certainly immune.\"",
"title": ""
},
{
"docid": "1095f0add1b5b4a3491424695c2f688c",
"text": "\"> If the stock price goes down it wouldn't make sense that ABC had a higher dividend yield, so my argument was you have to make assume the stock price went down because it could have cost less for other reasons, but you don't have to assume the dividend yield which would make it a good investment. I'm not sure I understand your argument. The wording doesn't seem clear to me (\"\"you have to make assume\"\"? make assume? \"\"but you don't have to assume the dividend yield\"\" assume it what?) Dividend yield has a negative correlation with stock price. If price goes down, all else being equal, yield rises.\"",
"title": ""
},
{
"docid": "a348c5e6f999f745309304cac7ddde0f",
"text": "How do you find good quality dividend stocks? That is an easy one. Past performance has always been my key to this answer. also remember why you are investing in the first place. Do you want cash flow, security or capital growth. Also let's not forget... how much time do you want to devote to this venture. There is going to be a balance in your investing and your returns. More time in... the higher returns you get. As for finding good dividend stocks, look to the Dividend Aristocrats or the Dividend Contenders. These companies have consistently increased their payouts to their investors for years. There is a trading strategy that could escalate your returns. Dividend Capturing, simply put... You buy the stock before the ex-date and sell after date of record. Thus collecting a dividend and moving on to the next one. Warning: though this is a profitable strategy, it only works with certain stocks so do your research or find a good source.",
"title": ""
},
{
"docid": "5f5707476dff29e1c64892d4c4ab68be",
"text": "Check out the NASDAQ and NYSE websites(the exchange in which the stock is listed) for detailed information. Most of the websites which collate dividend payments generally have cash payments history only e.g. Dividata. And because a company has given stock dividends in the past doesn't guarantee such in the future, I believe you already know that.",
"title": ""
},
{
"docid": "8b31af198fa10e9b9452c1f78618b999",
"text": "I think it may be best to take everything you're asking line-by-line. Once you buy stocks on X day of the month, the chances of stocks never actually going above and beyond your point of value on the chart are close to none. This is not true. Companies can go out of business, or take a major hit and never recover. Take Volkswagen for example, in 2015 due to a scandal they were involved in, their stocks went downhill. Now their stocks are starting to rise again. The investors goal is not to wait as long as necessary to make a profit on every stock purchase, but to make the largest profit possible in the shortest time possible. Sometimes this means selling a stock before it recovers (if it ever does). I think the problem with most buyers is that they desire the most gain they can possibly have. However, that is very risky. This can be true. Every investor needs to gauge the risk they're willing to take and high-gain investments are riskier. Therefore, it's better to be winning [small/medium] amounts of money (~)100% of the time than [any] amount of money <~25%. Safer investments do tend to yield more consistent returns, but this doesn't mean that every investor should aim for low-yield investments. Again, this is driven by the investor's risk tolerance. To conclude, profitable companies' stock tends to increase over time and less aggressive investments are safer, but it is possible to lose from any stock investment.",
"title": ""
},
{
"docid": "07bfc4bf7cdff666fb929873475d0159",
"text": "Large companies whose shares I was looking at had dividends of the order of ~1-2%, such as 0.65%, or 1.2% or some such. My savings account provides me with an annual return of 4% as interest. Firstly inflation, interest increases the numeric value of your bank balance but inflation reduces what that means in real terms. From a quick google it looks like inflation in india is currently arround 6% so your savings account is losing 2% in real terms. On the other hand you would expect a stable company to maintain a similar value in real terms. So the dividend can be seen as real terms income. Secondly investors generally hope that their companies will not merely be stable but grow in value over time. Whether that hope is rational is another question. Why not just invest in options instead for higher potential profits? It's possible to make a lot of money this way. It's also possible to lose a lot of money this way. If your knowlage of money is so poor you don't even understand why people buy stocks there is no way you should be going near the more complicated financial products.",
"title": ""
},
{
"docid": "2afb7a0d58eb07bddaad0fe50b2bd669",
"text": "Is it safe to invest in a portfolio of dividend stocks yielding 7-9% with the money borrowed at 3-4% from one of these brokerages? Yes and no. It depends on your risk profile! Any investment has its risks of losing your capital, but not investing is a guaranteed risk, as you will be guaranteed to fall behind the rate of inflation. Regarding investing on margin, this can increase your gains but can also increase your loses. Regarding the stock market - when investing in stocks you should not only look at the dividend rate but also the capital gain or loss potential. Remember in regards to investing on margin, if the share price drop too much you can get a margin call no matter how much dividend you are getting. It is no use gaining 9% in dividend yield per year if you are losing 15% or more in capital each year. Also, what is the risk of the dividend rate being cut back or dividends not being paid at all in the future? These are some of the risks you should consider before investing and derive a risk management plan as part of your investment plan before you invest. No investment is totally safe or risk free, but it is less risky than not investing at all, as long as you understand the risks involved and have a risk management plan in place as part of your overall investment plan.",
"title": ""
},
{
"docid": "a13a5183fa18ad97d0487ffeb6827fd9",
"text": "\"is it worth it? You state the average yield on a stock as 2-3%, but seem to have come up with this by looking at the yield of an S&P500 index. Not every stock in that index is paying a dividend and many of them that are paying have such a low yield that a dividend investor would not even consider them. Unless you plan to buy the index itself, you are distorting the possible income by averaging in all these \"\"duds\"\". You are also assuming your income is directly proportional to the amount of yield you could buy right now. But that's a false measure because you are talking about building up your investment by contributing $2k-$3k/month. No matter what asset you choose to invest in, it's going to take some time to build up to asset(s) producing $20k/year income at that rate. Investments today will have time in market to grow in multiple ways. Given you have some time, immediate yield is not what you should be measuring dividends, or other investments, on in my opinion. Income investors usually focus on YOC (Yield On Cost), a measure of income to be received this year based on the purchase price of the asset producing that income. If you do go with dividend investing AND your investments grow the dividends themselves on a regular basis, it's not unheard of for YOC to be north of 6% in 10 years. The same can be true of rental property given that rents can rise. Achieving that with dividends has alot to do with picking the right companies, but you've said you are not opposed to working hard to invest correctly, so I assume researching and teaching yourself how to lower the risk of picking the wrong companies isn't something you'd be opposed to. I know more about dividend growth investing than I do property investing, so I can only provide an example of a dividend growth entry strategy: Many dividend growth investors have goals of not entering a new position unless the current yield is over 3%, and only then when the company has a long, consistent, track record of growing EPS and dividends at a good rate, a low debt/cashflow ratio to reduce risk of dividend cuts, and a good moat to preserve competitiveness of the company relative to its peers. (Amongst many other possible measures.) They then buy only on dips, or downtrends, where the price causes a higher yield and lower than normal P/E at the same time that they have faith that they've valued the company correctly for a 3+ year, or longer, hold time. There are those who self-report that they've managed to build up a $20k+ dividend payment portfolio in less than 10 years. Check out Dividend Growth Investor's blog for an example. There's a whole world of Dividend Growth Investing strategies and writings out there and the commenters on his blog will lead to links for many of them. I want to point out that income is not just for those who are old. Some people planned, and have achieved, the ability to retire young purely because they've built up an income portfolio that covers their expenses. Assuming you want that, the question is whether stock assets that pay dividends is the type of investment process that resonates with you, or if something else fits you better. I believe the OP says they'd prefer long hold times, with few activities once the investment decisions are made, and isn't dissuaded by significant work to identify his investments. Both real estate and stocks fit the latter, but the subtypes of dividend growth stocks and hands-off property investing (which I assume means paying for a property manager) are a better fit for the former. In my opinion, the biggest additional factor differentiating these two is liquidity concerns. Post-tax stock accounts are going to be much easier to turn into emergency cash than a real estate portfolio. Whether that's an important factor depends on personal situation though.\"",
"title": ""
},
{
"docid": "d696be3accd2d8bed9b97bb58476c7ae",
"text": "Don't be too scared of investing in the market. It has ups and downs, but over the long haul you make money in it. You can't jump in and out, just consistently add money to investments that you 1) understand and 2) trust. When I say understand, what I mean is you can follow how the money is generated, either because a company sells products, a government promises to pay back the bond, or compounding interest makes sense. You don't need to worry about the day to day details, but if you don't understand how the money is made, it isn't transparent enough and a danger could be afoot. Here are some basic rules I try (!) to follow The biggest trick is to invest what you can, and do so consistently. You can build wealth by earning more and spending less. I personally find spending less a lot easier, but earning more is pretty easy with some simple investment tools.",
"title": ""
},
{
"docid": "cb1442dc3f4f3e60bf8c5d6bcbaed8b8",
"text": "\"My gut is to say that any time there seems to be easy money to be made, the opportunity would fade as everyone jumped on it. Let me ask you - why do you think these stocks are priced to yield 7-9%? The DVY yields 3.41% as of Aug 30,'12. The high yielding stocks you discovered may very well be hidden gems. Or they may need to reduce their dividends and subsequently drop in price. No, it's not 'safe.' If the stocks you choose drop by 20%, you'd lose 40% of your money, if you made the purchase on 50% margin. There's risk with any stock purchase, one can claim no stock is safe. Either way, your proposal juices the effect to creating twice the risk. Edit - After the conversation with Victor, let me add these thoughts. The \"\"Risk-Free\"\" rate is generally defined to be the 1yr tbill (and of course the risk of Gov default is not zero). There's the S&P 500 index which has a beta of 1 and is generally viewed as a decent index for comparison. You propose to use margin, so your risk, if done with an S&P index is twice that of the 1X S&P investor. However, you won't buy S&P but stocks with such a high yield I question their safety. You don't mention the stocks, so I can't quantify my answer, but it's tbill, S&P, 2X S&P, then you.\"",
"title": ""
},
{
"docid": "d424b29f29d724e29c526bee6f6ce5bf",
"text": "The yield on Div Data is showing 20% ((3.77/Current Price)*100)) because that only accounts for last years dividend. If you look at the left column, the 52 week dividend yield is the same as google(1.6%). This is calculated taking an average of n number of years. The data is slightly off as one of those sites would have used an extra year.",
"title": ""
},
{
"docid": "d37d9a994626f347749725d7d6066a17",
"text": "With the disclaimer that I am not a technician, I'd answer yes, it does. SPY (for clarification, an ETF that reflects the S&P 500 index) has dividends, and earnings, therefore a P/E and dividend yield. It would follow that the tools technicians use, such as moving averages, support and resistance levels also apply. Keep in mind, each and every year, one can take the S&P stocks and break them up, into quintiles or deciles based on return and show that not all stock move in unison. You can break up by industry as well which is what the SPDRs aim to do, and observe the movement of those sub-groups. But, no, not all the stocks will perform the way the index is predicted to. (Note - If a technician wishes to correct any key points here, you are welcome to add a note, hopefully, my answer was not biased)",
"title": ""
}
] |
fiqa
|
32cf47ccab147cb78c1cf3b72005c626
|
What are the downsides that prevent more people from working in high-income countries, and then retiring in low-income (and cost of living) ones?
|
[
{
"docid": "ec7a96693ca65aa885de59ddd1eb7c0e",
"text": "\"There are two parts to the hack you describe. One is moving to a high-cost, high-pay country to work, and the other is moving to a low-cost, low-pay country to retire. As Dilip mentioned in a comment, the first part is not so easy in many cases. You can't just take a plane to the USA and start making big bucks immediately. In the first place, it's illegal to work without special visa permissions. Even if you manage to secure that permission (or take the risk of trying to work illegally), there's no guarantee you'll get a job, let alone a high-paying one. The same is true in most other high-paying countries. As for the second part, that takes considerable willpower as well. After spending X years getting used to a country, investing time and money, you must then have the resolve to uproot your life a second time and move to another country. For the most part, countries are expensive for a reason. Even if you in principle reject the cost-benefit tradeoffs of a particular country, it can be difficult to give up some of those benefits when the time comes (e.g., trains running on time, reliable electricity, donut shops, or whatever). You might \"\"get soft\"\" or become co-opted by the rich-country rat race and find it difficult to extricate yourself. All of these problems are compounded if, as in many cases, you happened to start a family while in the expensive country. At the least, moving would require uprooting not just you but your family. Also, quality of education is often one of the main reasons people immigrate permanently to expensive countries. Even a person who personally would prefer to retire to a cheaper country may be unwilling to transplant their children into that country's education system. (Of course, they could wait until the children are self-supporting, but that makes the wait longer, and may result in them living far away from their children, which they may not want.) As JoeTaxpayer notes, the same reasons may work on smaller levels, even within a country. In theory it's perfectly possible to power through a brief, lucrative career in Silicon Valley and then retire to Idaho, but it doesn't seem to happen as often as the plain numbers might suggest. A simple way to put it might be that the kind of person who would be happy living in a cheap environment often cannot or will not endure a lengthy \"\"tour of duty\"\" in an expensive environment. Either you like the expensive environment and stay, or you leave, not as a planned lifehack, but because you realize you don't like it.\"",
"title": ""
},
{
"docid": "37c05107be7bdf0be738b728398db828",
"text": "I was at a restaurant in NYC, 1st Avenue and 63rd street. I don't recall how the conversation started, but the woman at the next table remarked how none of her friends from the West side, 9th avenue or thereabout, would visit her. Less than 2 miles away, yet in their minds, too far. Your question isn't likely to be answered with facts, but opinion. In this case an anecdote. Human nature is such that a good number of people have a small geographic circle of comfort. Of course some do exactly as you suggest. But not the majority.",
"title": ""
},
{
"docid": "1b314bf9393bf0fc7e6c3ed56b45a664",
"text": "At retirement age, your life priorities are somewhat different, and two key items come to mind. Your social circle, community and extended family contacts are highly related with your lifespan at retirement age. Loneliness kills, literally. Long distance relocation would weaken those ties exactly at the time when you most need and want them. You are also likely to need at least occasional physical assistance at random times, so living in a spot where none your friends&family can visit at a day's notice is hard. Cheaper living locations tend to have worse healthcare. Again, this doesn't matter much for a 25 year old expat, but at an age where you likely have one or multiple chronic diseases, general frailty and a very frequent need for healthcare this is a priority. This might work if you can do it as a family. I met a retired British couple in southern India, and they had a nice system where they were living in UK during the (UK) summer, and in India for the rest of the year. However, the above concerns don't disappear - when at a later time their health deterioates and one of them dies, then it would probably be better for the widow[er] to stay in UK permanently closer to their extended family and with the local healthcare system.",
"title": ""
},
{
"docid": "4722df0f1ad238061da904d88a4b2533",
"text": "I'm currently working as an expat, and my grandparents used to work overseas but retired to Canada so you could say my family has done things completely the opposite of what you suggest. However there are a number of very good reasons that my grandparents have done things the way we have, and I think it's worth sharing the rationale there. Low-cost moving to high-cost is a no-brainer: it's not easy to do, but many people are trying nonetheless. However, even they will be likely to stay in the high-cost countries, mostly because of health care, also safety is a factor, but social factors also matter. Firstly, I think two key factors that have been overlooked are language and health care-- most low-cost countries speak different languages than high-cost countries. This isn't a problem if you're young, but it becomes prohibitive if you are older. Even if you can manage, it's inconvenient in most countries. You can't just walk down the street and do whatever you like. You either have to keep a translator handy, or restrict your activities to places where you can communicate in your native language. Your favorite sports channels (rugby, american football etc.) might not be available, because nobody there cares. Your favorite news channel, or food (even in grocery stores) might not be so readily available. All these reasons made living abroad undesirable for my grandparents, but the big deal for them was healthcare. Outside of the US, every single developed economy has socialized healthcare to a large extent. When you're young it doesn't really matter, but when you are older, it's a constant concern! There are two aspects to healthcare-- firstly, if you are a citizen in a developed country there are significant financial benefits (In the US there is also medicare/medicaid but I don't know how those work so I'm not going to talk about that) to staying in-country when you retire, even if the health care would be more expensive- it's the government that's paying! Secondly, health care in low-cost countries tends to either be cheap and poor quality (and by poor quality I mean really, really scary!) or expensive and almost as good as a developed country. Again, high-quality hospitals in low-cost countries may still save you money, but the nurses may not speak good English and the doctors may not have a great bed-side manner. In many low-cost countries, nobody calls the police because they know the cops don't care, or will never solve the problem (i.e. they will arrive hours or days after it's too late), or the cops may even be 'in on it'. So basically you try to protect yourself from the inevitable robbery,swindle,extortion,hold-up,you-name-it but sooner or later something bad will happen. With security guards and being younger, it's less of an issue, but when you're elderly, especially if you look foreign and rich, it's definitely more dangerous. Many of my friends from low-income countries try to emigrate for this reason (and/or in combination with the political climate, which is largely corrupt and full of problems). So, if you're old, why risk it? Stay somewhere safe.",
"title": ""
},
{
"docid": "842a5b351388cef8d9c9461e5cec69c1",
"text": "\"One thing not mentioned is that in so called third world countries, a lot of \"\"stuff\"\" isn't actually less expensive. Food is almost always less expensive, housing is often less expensive, but cars, fuel, computers, smartphones, electronics, brand name clothing, shoes, cosmetics, tools, art supplies, internet service, bicycles, sporting goods and many other consumer items are typically more expensive.\"",
"title": ""
},
{
"docid": "71a0aa50312ad0c82ff4b45f4b5c1a99",
"text": "\"I should think the primary reason is due why those countries have a higher standard of salary - its not what you get, but what it buys you. In a high-salary, low-exchange-rate country like Sweden, you get a lot of services that your taxes buy you. Healthcare and quality of life in a stable country is something you want when you get old (note that your viewpoint might be very different when you're a kid). Moving to a country that has less impact on your finances is often because that country has significantly fewer services to offer. So a Swedish citizen might think about moving to a 3rd world country and find that their retirement income isn't sufficient to pay for the kind of lifestyle they actually want, such countries tend to be pleasant to live in only if you are exceptionally wealthy. Now this kind of thing does happen, but only \"\"within reason\"\", there are a number of old people who retire to the coast (in the UK at least) and many people who used to work in London who retire to the south west. For them, the idea of moving doesn't seem so bad as they are moving to areas where many other people in their situation have also moved. See Florida for an example for US citizens too.\"",
"title": ""
},
{
"docid": "4aa0a0bfdbaf89180bbdcb060b549dc8",
"text": "\"Political instability and general inability of the government to control crime, economomy, or even remain in existence, would be my greatest worry. I wouldn't want my bank account to randomly disappear, criminals to come take my stuff and/or life by force because nobody is going to stop them, or a hoarde of revolutionaries appearing at my door telling me \"\"get lost, the times they are a-changin\"\". On a whim, I tried to compare instability to cost of living. I used lowest monthly disposable income as my correlation to cost of living and the Fragile State index to measure instability. I picked the 55 lowest to get the countries with $500.00 (usd) and lower in monthly income. Those countries average out to 83.42 on the Fragile State index, which would be in the \"\"Very High Warning\"\" range and includes 18 countries in the \"\"Alert\"\", \"\"High Alert\"\", or \"\"Very High Alert\"\" status. Obviously, there is some subjectivity in an attempt to measure something in as broad a term as \"\"fragile state\"\", but it illustrates it's point well enough. Sources: http://en.wikipedia.org/wiki/List_of_countries_by_Fragile_States_Index http://www.nationmaster.com/country-info/stats/Cost-of-living/Average-monthly-disposable-salary/After-tax\"",
"title": ""
},
{
"docid": "81772a0c0197ace840d55cb37d1ca0f5",
"text": "I know folks who considered retiring to another country. Their conclusion was that while base cost of living was lower, the cost of the things that they enjoy doing -- not to mention the cost of spending time with friends they didn't want to give up -- would be sufficiently higher to erase most of the advantages. Those of us who grew up in or close to cities feel much the same way about moving out to less-populated and less-expensive parts of our own country. Basically, when cost of living is high it tends to be because there are more people who want to live there and are competing for resources (and driving prices up). Low cost of living is generally tied to less-desired locations, for the same reasons. IF you can find a location that appeals to you, and if you can get the resources there which your preferred lifestyle requires, this may make sense. For a while there were a number of professional writers moving from the US to Ireland, in part because the Irish tax structure heavily favored writers and other creative artists. (Katherine Kurtz spent several years living in a renovated Irish castle.) I'm not sure how many have stayed there after the novelty wore off.",
"title": ""
},
{
"docid": "5bcb0c1de1eb32429119e19110d75852",
"text": "A lot of good answers, but there’s one more factor: ignorance. The majority haven’t considered it, or considered it and assumed it’s not an option without investigating. PLUS, the widespread myth that every other country is primitive, unhealthy, and dangerous.",
"title": ""
}
] |
[
{
"docid": "176edc9065bac5e5c2b6e0bd9ca7c1ad",
"text": "Well, if you worked in the United States you have social security, and medicare and medicaid in most cases as well. So you have a small amount of income to spend every month to cover your most basic living expenses, as well as your basic medical expenses. At least, that's the idea. In reality, it probably isn't anywhere near enough money for most to live comfortably. Also, there is a real fear that the US will have to inflate itself out of its debt to some extent in the future. This theory implies that the money retired individuals have saved or are receiving down the road could buy significantly less in the future than they expect. If you have the ability to put money away into an IRA or 401K early in your life, it will be greatly beneficial to do so. However, that is another issue I won't begin to discuss fully here. Edit since your question was restated after I typed my initial response, the final answer is: You will receive some assistance from Social Security, Medicare, and Medicaid. You will most likely need to either continue working, draw on savings such as an IRA or 401k, or will need assistance from others. If none of those are options, you would most likely end up living in poverty or worse.",
"title": ""
},
{
"docid": "97dd95216f61b7b4ca84a94b66c47844",
"text": "There are a lot of forces at play here, one of which is addressed in your second bullet point. Housing, transportation, food, and healthcare are pretty much the staple expenses of a modern day human. While these expenses all have a range from minimum required to function and luxurious all humans incur these costs. The lower rung wage earners earn an amount closer to their actual costs than higher earners. As income scales up these expenses typically also scale up with different lifestyle choices. There reaches a breaking point though where is so much excess to your income that you begin meaningfully spending on investments; you may also begin to take a meaningful portion of your compensation in securities rather than currency. In times where the economy is booming, folks who hold assets in securities rather than currency really win. In 2008 people in that highest rung really took a wealth hit (and probably an income hit).",
"title": ""
},
{
"docid": "ecc7cd7e9dfb44b948d3c910f7b8a2af",
"text": "Yup. Same reason why developers go to Mexico and build huge resorts in the poorest places. Then you get the people who live there to work for you for dirt-cheap because, what else are they going to do? If the per capita income is $10,000, a yearly salary of $20,000 is going to look awesome.",
"title": ""
},
{
"docid": "6133f6d083b06457fb1454a44b740a51",
"text": "These scenarios discuss the period to 2025. They assess the deep uncertainty that is paralysing decision-taking. They identify the roots of this as the failure of the social model on which the West has operated since the 1920s. Related and pending problems imply that this situation is not recoverable without major change: for example, pensions shortfalls are greater in real terms that entire expenditure on World War II, and health care and age support will treble that. Due to the prolonged recession, competition will impact complex industries earlier than expected. Social responses which seek job protection, the maintenance of welfare and also support in old age will tear at the social fabric of the industrial world. There are ways to meet this, implying a major change in approach, and a characteristic way in which to fail to respond to it in time, creating a dangerous and unstable world. The need for such change will alter the social and commercial environment very considerably. The absence of such change will alter it even more. The summary is available [here](http://www.chforum.org/scenario2012/paper-4-6.shtml) or at the foot of the link given in the header. The much richer paper is [here](http://www.chforum.org/scenario2012/paper-4-1.shtml). These scenarios are the latest in a series in a project that dates back to 1995. Over a hundred people participated from every continent, over a six month period. The working documents are available on the web.",
"title": ""
},
{
"docid": "adda4a9f88198cd8bcf8f5d44e0473bc",
"text": "Many examples in Europe and other countries have shown once you break that barrier people will go to extreme lengths to avoid it. So much so back in the 80s in the UK tax rates over 75% were imposed, needless to say when they reduced it to 40% they actually got more money. Ultimately it does more harm than good to the economy and means well paid jobs leave the country and go elsewhere. The exact same thing is happening right now with the French moving to London. http://www.bbc.co.uk/news/magazine-18234930",
"title": ""
},
{
"docid": "30ba162804859dd1871475d85a83ae6b",
"text": "To answer your question, Retirement Revolution may fit the bill to some extent. I'd also like to address some of the indirect assumptions that were made in your bullet points. I'm convinced that the best way to overcome this is not simply to hold down a good job with COLAs every year, max out your IRA accounts and 401(k)s, invest another 10-20% on top, and live off of the savings and whatever Social Security decides to pay you. Instead, the trick is to not retire -- to make a transition into an income-producing activity that can be done in the typical retirement years, hopefully one that is closer to one's calling (i.e., more fulfilling). This takes time, not money. If people just shut off the TV and spent the time building up a side business that has a high passive component, they'd stand a much better chance of not outliving their money.",
"title": ""
},
{
"docid": "0dac6b6e314f66c0706678876430085d",
"text": "Losing the manufacturing jobs is a necessary evil of any developed nation. Yes Germany is an exception but that is only because they specialise in expensive high quality items. This transition has happened before in every developed nation when manufacturing replaced agriculture as the main sector of income and the same is happening again. The key is that we have to adapt and accept that rather than fight it. Fighting this transition will simply slow progress. People simply have to retrain and adapt to a knew skill set. Yes it isn't easy but trying to artificially stop low paid jobs moving to places with a cheaper labour force is impossible. Companies have to remain globally competitive. I appreciate if everyone globally gets paid a descent salary this wouldn't be an issue. However, this is not the case and will not be any time soon. The reality is manufacturing of non luxury goods will hardly exist in developed nations and will be solely down by the likes of china and india. However give it another 20 years china will be in exactly the same boat losing their manufacturing jobs to a less developed nations or maybe robots by then.",
"title": ""
},
{
"docid": "12e9c8711f77b9ff7a4678592ba758ec",
"text": "if someone wants to retire, they can save up for it themselves. we're no longer the richest country in the world surrounded by a rest-of-the-world destroyed by world war II. big news. on average, people need to work to get by.",
"title": ""
},
{
"docid": "59d589d10cc8188fd72df234da857fcf",
"text": "That's not a valid counterpoint. It doesn't rub you the right way because it would require you to take responsibility for your own future and do the work yourself. It doesn't rub you the right way because it would mean that you couldn't blame anyone else if you weren't able to retire when you wanted to.",
"title": ""
},
{
"docid": "1866cd82c6f43cc68fab4d8acfb68c0f",
"text": "While it may look similar income and wealth inequality is not directly related H1 visa. After all, it provides someone from poorer region jobs. It has more to do with technology. Stopping H1B visa won't solve that issue.",
"title": ""
},
{
"docid": "828c11ab1a9dd388af11264f4d0f4c04",
"text": "The US is one of the only countries which taxes its citizens on global income. You're ignoring the high fixed costs of compliance with the US tax code, both for individuals and institutions. Compliance is so big an issue that foreign banks are turning away US customers rather than having to comply with FATCA, leaving people unable to open a bank account. Also, renunciations of citizenship are up something like 400%, and they aren't all billionaires.",
"title": ""
},
{
"docid": "f1e68de4d5af666c6ba83f415ec29fd4",
"text": "There are a host of programs in the US to help low/no-income seniors: Many states discount property taxes for the elderly as well. Not a dream retirement, but plenty of people are provided for without having prepared for retirement whether due to poor decisions or unfortunate circumstances.",
"title": ""
},
{
"docid": "efbadeeca682449b4fefe1f2e9aa63e6",
"text": "Indian workers are hard to manage. I work in Japan as a consultant managing offshore development projects. The Indian companies are not doing that well here. They cannot deliver, and the Indian companies themselves are very slow to move. They are not even landing the jobs because Indian expat execs are too slow. I have noticed that they are using development centers in the US and China as well to support global contracts. The reason is that Indian workers stay on the job for little longer than 3 mos before they move onto a better position. They are only interested in status climbing because the companies are nickeling and diming them while management charges much the same as a local Japanese integrators. On the few occasions they have tried to recruit me, even though I agreed to take a salary reduction (lehman shock) and meet their conditions, they were too wishy washy made the proposal late and never hired me. Overall way too flaky.",
"title": ""
},
{
"docid": "04ee203af8fe82883eda286baad2d378",
"text": "Because all things being equal, unless they can pay the new graduate significantly less (which they won't be able to do, if the Millenials are still hard up for work), then employers will likely defer to candidates that they deem to be more mature. Additionally, Millenials won't just sit around; they'll work independently, take courses at community college to advance their knowledge, etc. At this point, I'd be more concerned about what happens if the economy DOESN'T return...",
"title": ""
},
{
"docid": "d5b20e52a87063de073192df82373049",
"text": "Public sector and private industry retirement plans, taxation and estate planning would be the most substantial differences between the two countries. The concepts for accumulating wealth are the same, and if you are doing anything particularly lucrative with an above average amount of risk, the aforementioned differences are not very relevant, for a twenty something.",
"title": ""
}
] |
fiqa
|
41df0bab5d11a87aecdeefdd547f8a58
|
Why buy bonds in a no-arbitrage market?
|
[
{
"docid": "307191f5ae6dbc398f2cb2c30b15c1b7",
"text": "Rates are a complex field. I will assume that context wise you are talking about rates for a individual saver quantities. The two rates you are asking about are personal bank saving account and exchange traded bonds. The points you want to compare between them are. In general, a bond is what we called a fixed rate instrument. This means that for the life of the product, it will yield a fixed percentage of its face value at a regular period. Baring any extreme circumstances (such as bankruptcy), no external factors will change the payment schedule on a bond. Conversely, by placing your money into a bank, you will accrue interest rate at some value related to some published interest rate. For example, if tomorrow, the Treasury decided to try to stimulate the economy, they could slash the interest rate, this would directly affect the rate at which your savings account would accrue interest. In general, a bond has a maturity date, where the capital is finally released from the bond. Until such date, you cannot access the money directly (you can however sell the bond, but it would likely be at a discounted value). Therefore, in general, you cannot get access to the money whenever you want it. As for a saving account, normally one can access the funds instantly, if not within a few days. This seems to the reason people seem to be focusing on. For each bond, the issuer of the bond is obligated to pay you the holder of the bond fixed payments at an interval, plus the capital at the maturity. However, obligation does not mean guarantee. If the issuer, is unable to make the payments, they may go into bankruptcy to avoid paying you. There are companies setup to advise people on the likelihood of each bond issuer on their ability to honour their debts. For example Standard and Poor issues a rating which goes all the way up to AAA for bonds. Recently, many sovereign countries have lost their AAA rating from S&P. Meaning that S&P feel that the possibility of these countries going bankrupt is non-zero. Conversely, banks may also be unable to give you your money when requested. In the US, the reserve requirements means that at any one time it only holds 10% of the money it owes to its customers. This can mean that if every customer turns up to the bank to demand their money, that bank would be unable to pay. This situation is called a Bank Run. During such a situation, the bank would likely collapse and default. In many modern countries, the government put into place guarantees on the first xxx amount in saving accounts, but otherwise, your savings could be lost. There are many complex reasons to choose one instrument over another (including some I have avoided), even if at the outset, they could appear to have the same rates.",
"title": ""
},
{
"docid": "e81e513209a8bafc75b1ded70705dada",
"text": "For safety. If something catastrophic happens to your bank and your money is in there you will lose any not covered by FDIC. So if you have a very large amount of money you will store it in bonds as its much less likely that the US treasury will go bankrupt than your bank. I also literally just posted this in another thread: Certain rules and regulations penalize companies or institutions for holding cash, so they are shifting to bonds and bills. Fidelity, for example, is completely converting its $100 billion dollar cash fund to short term bills. Its estimated that over $2 trillion that is now in cash may be converted to bills, and that will obviously put upward preasure on the price of them. The treasury is trying to issue more short term debt to balance out the demand. read more here: http://www.wsj.com/articles/money-funds-clamor-for-short-term-treasurys-1445300813",
"title": ""
},
{
"docid": "d4bd9d7b067b67dad5472849802226cc",
"text": "\"If by \"\"putting money in the bank\"\" you mean regular savings or checking, then the bond locks a rate for a period of time, whereas your savings/checking rate can vary over that period. That variation might go for you or against you. Depending on your situation, you might prefer to take a determined rate to the variations. In addition, some bond types provide tax benefits (e.g. treasuries and municipal bonds) that change the effective return - You cannot just compare the interest rates. Finally, the bonds have \"\"resale\"\" value on the secondary market like stock - Depending on your outlook and strategy, you might by the bond for its value as a security rather than for the interest specifically just like you'd could buy a dividend-paying stock for its value as a security rather than for the dividend. In other words, you might think that bond values are going up, so you buy bonds with the intent of making a capital gain rather than counting on the interest returned. (The bond market does depend on the interest rate, so these are not independent factors.) I see the other answer that mentions the potential for your bank busting and you losing money beyond the FDIC insurance limit. The question doesn't specify U.S. Government bonds though, so I don't think that answer is generally good. It would be good in the case that you had a lot of money (especially an institution or foreign government) and you were specifically interested in U.S. Treasury bonds. Not so much if you invest in corporate bonds where you have no government insurance / assurance of any sort. Municipal bounds are also not backed by the U.S. (federal) government, but they may have some backing at the state level, depending on the state.\"",
"title": ""
},
{
"docid": "6e732648b31005f1d4e21e034a068d67",
"text": "There is no single 'market interest rate'; there are myriad interest rates that vary by risk profile & term. Corporate bonds are (typically) riskier than bank deposits, and therefore pay a higher effective rate when the market for that bond is in equilibrium than a bank account does. If you are willing to accept a higher risk in order gain a higher return, you might choose bonds over bank deposits. If you want an even higher return and can accept even higher risk, you might turn to stocks over bonds. If you want still higher return and can bear the still higher risk, derivatives may be more appealing than stocks.",
"title": ""
},
{
"docid": "e96efcfab2cdc6ccf5a9aaf632736584",
"text": "It is my understanding that banks pay less than the going rate on savings accounts and require that the person who takes out a loan pay more than the going rate. That is how the bank gets its money. Usually the going rate is affected by the current inflation rate (but that has not been true for the last few weeks). So that means that, typically, the money you have in the bank is, gradually, losing purchasing power as the bank typically pays you less than the inflation rate. So if you want your money to keep pace with inflation (or do a bit better) then you should buy bonds.",
"title": ""
},
{
"docid": "2aaca1bc531b6eef0e29db9a819bcf72",
"text": "Bonds can increase in price, if the demand is high and offer solid yield if the demand is low. For instance, Russian bond prices a year ago contracted big in price (ie: fell), but were paying 18% and made a solid buy. Now that the demand has risen, the price is up with the yield for those early investors the same, though newer investors are receiving less yield (about 9ish percent) and paying higher prices. I've rarely seen banks pay more variable interest than short term treasuries and the same holds true for long term CDs and long term treasuries. This isn't to say it's impossible, just rare. Also variable is different than a set term; if you buy a 10 year treasury at 18%, that means you get 18% for 10 years, even if interest rates fall four years later. Think about the people buying 30 year US treasuries during 1980-1985. Yowza. So if you have a very large amount of money you will store it in bonds as its much less likely that the US treasury will go bankrupt than your bank. Less likely? I don't know about your bank, but my bank doesn't owe $19 trillion.",
"title": ""
}
] |
[
{
"docid": "bd4931e1968953260f3368e895dd5e48",
"text": "Bonds provide protections against stock market crashes, diversity and returns as the other posters have said but the primary reason to invest in bonds is to receive relatively guaranteed income. By that I mean you receive regular payments as long as the debtor doesn't go bankrupt and stop paying. Even when this happens, bondholders are the first in line to get paid from the sale of the business's assets. This also makes them less risky. Stocks don't guarantee income and shareholders are last in line to get paid. When a stock goes to zero, you lose everything, where as a bondholder will get some face value redemption to the notes issue price and still keep all the previous income payments. In addition, you can use your bond income to buy more shares of stock and increase your gains there.",
"title": ""
},
{
"docid": "238b8ff8728c9bc18c819b8167faf591",
"text": "\"TL;DR: If your currently held bond's bid yield is smaller than another bonds' ask yield. You can swap your bond for bigger returns. Let's imagine you buy a long bond for $12000 (face value of $10000) and it has 6% coupon. The cash flows will have an internal return rate of 4.37%, this is the published \"\"ask yield\"\" in 2014 of the bond. After six years, prices have fallen, inflation and yields went up. So you can sell it for only $10000. If you would do it, the IRR will be only 2.55%, so there will be less return, than if you keep it. But if you would \"\"undo\"\" the transaction, then the future cash flows would yield 6.38%. This is the \"\"bid yield\"\" in 2020 of the bond. If you can find an offer that yields more than 6.38%, you have better returns if you sell your bond and invest that $10000 in the other bond. But as other answers pointed it out, you rarely have this opportunity as the market is very effective. (Assuming everything else is equal.)\"",
"title": ""
},
{
"docid": "c224346604b8d4e798f6453fcb10053b",
"text": "stocks represent ownership in a company. their price can go up or down depending on how much profit the company makes (or is expected to make). stocks owners are sometimes paid money by the company if the company has extra cash. these payments are called dividends. bonds represent a debt that a company owes. when you buy a bond, then the company owes that debt to you. typically, the company will pay a small amount of money on a regular basis to the bond owner, then a large lump some at some point in the future. assuming the company does not file bankrupcy, and you keep the bond until it becomes worthless, then you know exactly how much money you will get from buying a bond. because bonds have a fixed payout (assuming no bankrupcy), they tend to have lower average returns. on the other hand, while stocks have a higher average return, some stocks never return any money. in the usa, stocks and bonds can be purchased through a brokerage account. examples are etrade, tradeking, or robinhood.com. before purchasing stocks or bonds, you should probably learn a great deal more about other investment concepts such as: diversification, volatility, interest rates, inflation risk, capital gains taxes, (in the usa: ira's, 401k's, the mortgage interest deduction). at the very least, you will need to decide if you want to buy stocks inside an ira or in a regular brokerage account. you will also probably want to buy a low-expense ration etf (e.g. an index fund etf) unless you feel confident in some other choice.",
"title": ""
},
{
"docid": "020d22d766952e6008bf848df7c060d2",
"text": "\"I'll answer your question, but first a comment about your intended strategy. Buying government bonds in a retirement account is probably not a good idea. Government bonds (generally) are tax advantaged themselves, so they offer a lower interest rate than other types of bonds. At no tax or reduced tax, many people will accept the lower interest rate because their effective return may be similar or better depending, for example, on their own marginal tax rate. In a tax-advantaged retirement account, however, you'll be getting the lower interest without any additional benefit because that account itself is already tax-advantaged. (Buying bonds generally may be a good idea or not - I won't comment on that - but choose a different category of bonds.) For the general question about the relationship between the Fed rate and the bond rate, they are positively correlated. There's not direct causal relationship in the sense that the Fed is not setting the bond rate directly, but other interest bearing investment options are tied to the Fed rate and many of those interest-bearing options compete for the same investor dollars as the bonds that you're reviewing. That's at a whole market level. Individual bonds, however, may not be so tightly coupled since the creditworthiness of the issuing entity matters a lot too, so it could be that \"\"bond rates\"\" generally are going up but some specific bonds are going down based on something happening with the issuer, just like the stock market might be generally going up even as specific stocks are dropping. Also keep in mind that many bonds trade as securities on a secondary market much like stocks. So I've talked about the bond rate. The price of the bonds themselves on the secondary market generally move opposite to the rate. The reason is that, for example, if you buy a bond at less than face value, you're getting an effective interest rate that's higher because you get the same sized incremental payments of interest but put less money into the investment. And vice versa.\"",
"title": ""
},
{
"docid": "6039901bd125dde0231f61f69b5073ed",
"text": "\"Were you thinking of an annuity? They guarantee regular payments, usually after retirement. In any case, every investment has counterparty risk. Bonds guarantee payout, but the issuer could always default. This is why Treasury bonds have the lowest yields, the Treasury is the world's most trusted borrower. It's also why \"\"junk\"\" bonds have higher yields than investment grade and partially why longer duration bonds have higher yields. As mentioned, there's bank accounts, which gain interest and are insured by FDIC up to $250,000. If the bank folds, they'll be acquired by another and your account balance will simply transfer. Similar to bank accounts are money market funds. These are funds that purchase very short term \"\"paper\"\" (basically <90 day bonds). They maintain a share price of $1 and pay interest in the form of additional shares. These have the risk of \"\"breaking the buck\"\" where they need to sell assets at a loss to meet investor withdrawal demands and NAV drops below $1.00. Fortunately, that's a super rare occurance, but still definitely possible. Finally, there's one guy I've seen on TV pitching a no risk high yield investment. I can't remember the firm, but I am waiting to see them shut down for running a ponzi scheme.\"",
"title": ""
},
{
"docid": "8384d354271018c0de0dce360c7a96e0",
"text": "\"Consider the futures market. Traders buy and sell gold futures, but very few contracts, relatively speaking, result in delivery. The contracts are sold, and \"\"Open interest\"\" dwindles to near zero most months as the final date approaches. The seller buys back his short position, the buyer sells off his longs. When I own a call, and am 'winning,' say the option that cost me $1 is now worth $2, I'd rather sell that option for even $1.95 than to buy 100 shares of a $148 stock. The punchline is that very few option buyers actually hope to own the stock in the end. Just like the futures, open interest falls as expiration approaches.\"",
"title": ""
},
{
"docid": "f5980ed493aedbecbc092add2c4be4dc",
"text": "QE is artificial demand for bonds, but as always when there are more buyers than sellers the price of anything goes up. When QE ends the price of bonds will fall because everyone will know that the biggest buyer in the market is no longer there. So price of bonds will fall. And therefore the interest rate on new bonds must increase to match the total return available to buyers in the secondary market.",
"title": ""
},
{
"docid": "fa30e29f8506005c072899b81da89854",
"text": "Let's say today you buy the bond issued by StateX at 18$. Let's say tommorow morning the TV says that StateX is going towards default (if it happens it won't give you back not even the 18$ you invested). You (and others that bought the same bond like you) will get scared and try to sell the bond, but a potential buyer won't buy it for 18$ anymore they will risk maximum couple of bucks, therefor the price of your bond tomorrow is worth 2$ and not 18 anymore. Bond prices (even zero coupon ones) do fluctuate like shares, but with less turbolence (i.e. on the same period of time, ups and downs are smaller in percentage compared to shares) EDIT: Geo asked in the comment below what happens to the bond the FED rises the interest. It' very similar to what I explained above. Let's say today you buy the bond just issued by US treasury at 50$. Today the FED rewards money at 2%, and the bond you bought promised you a reward of 2% per year for 10 years (even if it's zero coupon, it will give you almost the same reward of one with coupons, the only difference is that it will give you all the money back at once, that is when the bond expires). Let's say tommorow morning the TV says that FED decided to rise the interest rates, and now on it lends money rewarding a wonderful 4% to investors. US treasury will also have to issue bonds at 4%. You can obviously keep your bond until expiration (and unless US goes default you will get back all your money until the last cent), but if you decide to sell your bond, you will find out that people won't be willing to pay 50$ anymore because on the market they can now buy the same type of bond (for the same period of time, 10 years) that give them 4% per year and not a poor 2% like yours. So people will be willing to pay maximum 40$ for your bond or less.",
"title": ""
},
{
"docid": "74ede1bfc19a1ebc6de5dec45e802bfd",
"text": "\"[...] are all bonds priced in such a way so that they all return the same amount (on average), after accounting for risk? In other words, do risk premiums ONLY compensate for the amount investors might lose? No. GE might be able to issue a bond with lower yield than, say, a company from China with no previous records of its presence in the U.S. markets. A bond price not only contains the risk of default, but also encompasses the servicability of the bond by the issuer with a specific stream of income, location of main business, any specific terms and conditions in the prospectus, e.g.callable or not, insurances against default, etc. Else for the same payoff, why would you take a higher risk? The payoff of a higher risk (not only default, but term structure, e.g. 5 years or 10 years, coupon payments) bond is more, to compensate for the extra risk it entails for the bondholder. The yield of a high risk bond will always be higher than a bond with lower risk. If you travel back in time, to 2011-2012, you would see the yields on Greek bonds were in the range of 25-30%, to reflect the high risk of a Greek default. Some hedge funds made a killing by buying Greek bonds during the eurozone crisis. If you go through the Efficient frontier theory, your argument is a counter statement to it. Same with individual bonds, or a portfolio of bonds. You always want to be compensated for the risk you take. The higher the risk, the higher the compensation, and vice versa. When investors buy the bond at this price, they are essentially buying a \"\"risk free\"\" bond [...] Logically yes, but no it isn't, and you shouldn't make that assumption.\"",
"title": ""
},
{
"docid": "7752f67b871bc3bc345990de3f5221fa",
"text": "why would anyone buy a long-term bond fund in a market like this one, where interest rates are practically bottomed out? 1) You are making the assumption that interest rates has bottom out hence there is no further possibility of it going down further , i mean who expected Lehman Brother to go bankrupt 2) Long term investors who are able to wait for the bad times of the bond market to end and in the mean time dont mind some dividend payment of 2-3%",
"title": ""
},
{
"docid": "f4dfadeeefad1c3988f5f9ae9342142f",
"text": "Why does selling a bond drive up the yield? The bond will pay back a fixed amount when it comes due. The yield is a comparison of what you pay for the bond and what will be repaid when it matures (assuming no default). Why does the yield go up if the country is economically unstable? If the country's economy is unstable, that increases the chance that they will default and not pay the full value of the bonds when they mature. People are selling them now at a loss instead of waiting for a default later for a greater loss. So if you think Greece is not going to default as it's highly likely a country would completely default, wouldn't it make sense to hold onto the bonds? Only if you also think that they will pay back the full value at maturity. It's possible that they pay some, but not all. It's also possible that they will default. It's also possible that they will get kicked out of the Euro and start printing Drachmas again, and try to pay the bonds back with those which could devalue the bonds through inflation. The market is made of lots of smart people. If they think there are reasons to worry, there probably are. That doesn't mean they can predict the future, it just means that they are pricing the risk with good information. If you are smarter than the herd, by all means, bet against them and buy the bonds now. It can indeed be lucrative if you are right, and they are wrong.",
"title": ""
},
{
"docid": "dac42c465bf5780fb4ab730b4f3be366",
"text": "There is another reason why an investor might buy negative yielding bonds: if the investor expects that bond yields will go even further negative, then they are also expecting the price of the bond to go up. They can resell the bond later at a profit. As an example, they may expect an increase in central bank bond purchases to drive yields lower and prices higher.",
"title": ""
},
{
"docid": "238acb579177dbbd1370975042f0620f",
"text": "Usually Bonds are used to raised capital when a lender doesn't want to take on sole risk of lending. If you are looking at raising anything below 10m bonds are not a option because the bank will just extend you a line of credit.",
"title": ""
},
{
"docid": "db66be504a892bc3ea02c50fdb954cbc",
"text": "\"In the quoted passage, the bonds are \"\"risky\"\" because you CAN lose money. Money markets can be insured by the FDIC, and thus are without risk in many instances. In general, there are a few categories of risks that affect bonds. These include: The most obvious general risk with long-term bonds versus short-term bonds today is that rates are historically low.\"",
"title": ""
},
{
"docid": "8af32a8a83a77bd924097fd3bf67c2b8",
"text": "Is it possible to move money from NRE to NRO account Yes you can move money from NRE to NRO without any issue. You can't do the other way round. i.e. Move money from NRO to NRE. I would like to move USD earning to NRE Yes you can further move money in NRE to NRO account Yes you can I am planning to give NRO account to HDFC Home loan for EMI processing Yes you can. Depending on your long term plan it may not be a good idea. For example if you were to sell the house you cannot move the funds into NRE and outside of India without some amount of paperwork. However if you pay the EMI via NRE account, on the sale of house, you can transfer the funds into NRE account to the extent of the loan paid and the Original downpayment [if made from NRE account]. also I can deposit money from other savings account to NRO; As an NRI, you can't hold ordinary savings account in India. This is violation of norms. Please have any/all savings account in India converted to NRO at the earliest.",
"title": ""
}
] |
fiqa
|
74eaab244336452904e5bade0649086b
|
Are the stocks of competitor companies negatively correlated?
|
[
{
"docid": "b1455abc3bce335fa208812b8e9d6e38",
"text": "Not especially. It depends on why sales have changed. If it's just consumer demand, that affects everyone in parallel rather than pushing in opposite direactions. If it's changes other than sales, that may have no effect on other companies. If it's because someone introduced the next must-have-it device and they're selling rapidly and drawing customers from the competing brands, maybe. And that's all neglecting the fact that this may already have been incorporated into the competitor's share price long ago, in anticipation of this news. Sorry, but the market just ain't simple.",
"title": ""
},
{
"docid": "c1c2620e960c66a3465df030519f8644",
"text": "\"It is important to first understand that true causation of share price may not relate to historical correlation. Just like with scientific experiments, correlation does not imply causation. But we use stock price correlation to attempt to infer causation, where it is reasonable to do so. And to do that you need to understand that prices change for many reasons; some company specific, some industry specific, some market specific. Companies in the same industry may correlate when that industry goes up or down; companies with the same market may correlate when that market goes up or down. In general, in most industries, it is reasonable to assume that competitor companies have stocks which strongly correlate (positively) with each-other to the extent that they do the same thing. For a simple example, consider three resource companies: \"\"Oil Ltd.\"\" [100% of its assets relate to Oil]; \"\"Oil and Iron Inc.\"\" [50% of its value relates to Oil, 50% to Iron]; and \"\"Iron and Copper Ltd.\"\" [50% of its value relates to Iron, 50% to Copper]. For each of these companies, there are many things which affect value, but one could naively simplify things by saying \"\"value of a resource company is defined by the expected future volume of goods mined/drilled * the expected resource price, less all fixed and variable costs\"\". So, one major thing that impacts resource companies is simply the current & projected price of those resources. This means that if the price of Oil goes up or down, it will partially affect the value of the two Oil companies above - but how much it affects each company will depend on the volume of Oil it drills, and the timeline that it expects to get that Oil. For example, maybe Oil and Iron Ltd. has no currently producing Oil rigs, but it has just made massive investments which expect to drill Oil in 2 years - and the market expects Oil prices to return to a high value in 2 years. In that case, a drop in Oil would impact Oil Inc. severely, but perhaps it wouldn't impact Oil and Iron Ltd. as much. In this case, for the particular share price movement related to the price of Oil, the two companies would not be correlated. Iron and Copper Ltd. would be unaffected by the price of Oil [this is a simplification; Oil prices impact many areas of the economy], and therefore there would be no correlation at all between this company's shares. It is also likely that competitors face similar markets. If consumer spending goes down, then perhaps the stock of most consumer product companies would go down as well. There would be outliers, because specific companies may still succeed in a falling market, but in generally, there would be a lot of correlation between two companies with the same market. In the case that you list, Sony vs Samsung, there would be some factors that correlate positively, and some that correlate negatively. A clean example would be Blackberry stock vs Apple stock - because Apple's success had specifically negative ramifications for Blackberry. And yet, other tech company competitors also succeeded in the same time period, meaning they did not correlate negatively with Apple.\"",
"title": ""
},
{
"docid": "1589a66f5ac4ed2660e146ba82cd8dbc",
"text": "\"In theory, say we had two soft drink companies, and no other existed. On Jan 1, they report they each had 50% market share for the past year. Over the next year, one company's gain is the other's loss. But over the year, for whatever reason, the market has grown 10% (all the stories of bad water helped this), and while the market share ends at 49/51, the 49 guy has improved his margins, and that stock rises by more than the other. In general, companies in the same industry will be positively correlated, and strongly so. I offer my \"\"spreadsheets are your friend\"\" advice. I took data over the last 10 years for Coke and Pepsi. Easy to pull from various sites, I tend to use Yahoo. In Excel the function CORREL with let you compare two columns of numbers for correlation. I got a .85 result, pretty high. To show how a different industry would have a lower correlation, I picked Intel. Strangely, enough, Intel and Pepsi had a .94 correlation. A coincidence, I suppose, but my point is that you can easily get data and perform your own analysis to better understand what's going on.\"",
"title": ""
}
] |
[
{
"docid": "66510e569c3a5f89618930166f832af3",
"text": "\"The correlation I heard most about in economics/finance was that stock prices and bond yields were negatively correlated; as the stock market does better, bond yields fall (company's doing well as evidenced by stocks, so it's a good credit risk, so YTM of its bonds on the market goes down). The correlation, if any, between the stock and futures market should be visible in the actual price histories. Index prices may be useful, but what's more likely is that various future prices have correlation with various companies' stocks. Where the future reflects the price of a raw material that is a significant cost of goods sold for a company, you'll see these two move inversely to each other in the short term. I think that if there is a causative relationship here, its that futures prices influence stock prices, not the other way around. The futures market generally represents the cost side of a consumer goods producer's bottom line. The stock market represents its profits. As futures go up, profit expectations go down, putting pressure on stock prices. Industries that deal in services, or in other types of goods, can still be affected because a rise in the cost of something consumers need will cause them to spend less on other things which affects margins in those other areas. So, in the short and medium term, when the futures market goes up the stock market sees a dip, and vice versa. However, companies adapt; they can put upward pressure on prices for their goods to restore their desired margins, usually by slowly increasing them to prevent sticker shock (though elasticity of demand plays a part; the more we need something no matter what it costs, the faster prices can increase). To maintain costs, they can make things cheaper using less expensive materials (more plastic, less steel). They can restructure production processes (translated: move factories offshore, or at least to \"\"right-to-work\"\" states with less union strength) to save costs elsewhere. All of these reduce costs and thus increase profits, but take time to implement. Many of these things reduce direct costs, reducing demand for the commodity and causing the futures prices to go back down. So, over the long term, these differences even out, and it's down to the things that affect the entire market (inflation, consumer/investor confidence, monetary policy).\"",
"title": ""
},
{
"docid": "50fa48a8fc3119c070df2336f45c69d6",
"text": "This depends very much on why A is making massive losses and how big they are in relation to B. If the group has a history of successfully launching profitable brands, and A is a new brand that has high expenses (production, marketing, etc.) but not yet generating much revenue, then despite the current losses it can be seen as a source of future profits. Or A might be established but currently undergoing an expensive remodelling that promises future success. Or B might simply be a huge cash cow that funds the losses of A out of petty cash.",
"title": ""
},
{
"docid": "21253916624b7918f6c3709e9a984172",
"text": "Its pretty much always a positive to have large institutional investors. Here's a few cases where I can see an argument against large institutional investors: In recent years, we've seen corporate raiders and institutional investors that tend to influence management in ways that are focused on short term gain. They'll often go for board seats and disrupt the existing management team. It can serve as a distraction and really hurt morale. Institutional investors also have rules in their prospectus that they are required to abide by. For example, some institutional investors will not hold on to stock below $5. This really affected major banking stocks, some of which ended up doing reverse stock splits to keep their share price high. Institutional investors will also setup specific funds that require a stock to be listed as part of an index (i.e. the SPY, DJIA etc.,). When a stock is removed from an index, big investors leave quickly and the share price suffers. In recent months, companies like Apple have made their share price more affordable to attract retail investors. It gives an opportunity for retail to feel even more connected to the company. I'm not sure how much this affects overall sales... Generally, a good stock should be able to attract both retail and institutional investors. If there's not a good mix, then its usually a sign that somethings amiss.",
"title": ""
},
{
"docid": "f3a59c57da20adef21327a28f4e6b7f5",
"text": "\"Sure, and I made it clear in my post that I'm willing to accept that I may be wrong. But the author does a poor job of arguing his point, his argument in the article is based on an unsubstantiated claim that a certain activity is bad. He says it \"\"impairs price performance\"\" but offers no proof that this occurs. Now granted, I haven't had a chance to look at the data either, but as myself and other posters have mentioned, this claim is quite debatable. I need a bit more material to be convinced.\"",
"title": ""
},
{
"docid": "b30bd7a9465bf07e15893e3617051654",
"text": "\"I am doing an assignment for a finance class, and I am writing a recommendation for a specific capital structure. One of the concerns brought up by the \"\"board of directors\"\" was interest coverage, so in my addressing that topic in my report, I want to compare to competitors. The interest coverage ratio under this capital structure that I'm choosing is 11.8 and the two competitors we are given information on are Company A (who has an interest coverage ratio of 6.67) and Company B (who has an interest coverage ratio of 11.25). It seems good, but my concern is that I may be missing something, as Company A is similar in size (in terms of sales) to the company I am writing a report for while Company B has ~50 times more sales than the company I am writing a report for. Advice, things to consider as I move forward?\"",
"title": ""
},
{
"docid": "6d27696136ba1887f2e334a643403052",
"text": "You question is very hard to answer as it is tough to put a value on how much bad your added investment in evil companies would cause and also how much value the charities add. However, there has been a bunch of really good work on socially responsible investing in general. This paper might be too technical for some but the conclusion section is very readable and clear. The big worry about socially responsible investing from a financial standpoint is that it will lower returns in the long run. The paper above and others show fairly clearly that as long as you only exclude a few classes of stocks and still have a fairly broad base that the expected returns are similar. The main issue though is some socially responsible funds have much higher fees. So the usual advice applies, do your research to make sure your investments are well diversified and have low fees. As long as the index is fairly broad you can consider the difference between the fees on the socially responsible index and investing in a more common index as the long run cost. Then you can balance that cost and having more money for charity against the benefits of not investing in evil companies.",
"title": ""
},
{
"docid": "3f66d5baa80fec1f570bf779849b435e",
"text": "Also keep note - some companies have a combined CEO/Chairman of the board role. While he/she would not be allowed to negotiate contracts or stock plans, some corporate governance analysts advocate for the separation of the roles to remove any opportunity for the CEO to unduly influence the board. This could be the case for dysfunctional boards. However, the alternate camps will say that the combined role has no negative effect on shareholder returns. SEC regulations require companies to disclose negotiations between the board and CEO (as well as other named executives) for contracts, employee stock plans, and related information. Sometimes reading the proxy statement to find out, for example, how many times the board meets a year, how many other boards a director serves on, and if the CEO sits on any other board (usually discouraged to serve on more than 2) will provide some insight into a well-run (or not well-run) board.",
"title": ""
},
{
"docid": "56aa3ca6fafa34bb40c1be345be4135a",
"text": "Nope, sorry. ChemChina-Syngenta are not US companies and they couldn't care less about US when it comes to long term strategy. Chem china is also in about to merge with sino chem. This will be by far the largest diversified company in the world. followed by BASF. Dow Dupont, will shrink, since they have the weakest global reach, compared to Asian and european counterpart. Bayer-Monsanso? They see the writing on the wall. Either they look for partners quickly or become irrelevant. There is no option. Either become bigger/more efficient or perish.",
"title": ""
},
{
"docid": "d52617a3b93fb720163e424395e3032a",
"text": "Absolutely. In fact, all stock purchases of more than 5% of a company's stock must be reported to the SEC, so assuming A and B are publicly traded companies in the US, the purchase would likely be a matter of public record. There are probably special cases where this could cause problems, however; any case where A's purchase of B's stock (or vice versa) runs afoul of regulation would be one such case. For example, if company A wants to own a controlling interest in company B and appoint members of its board of directors and both companies were in the same heavily-concentrated market, regulators may frown on the potential for decreased competition. Such regulations may apply to any purchase of a controlling interest in a company, though.",
"title": ""
},
{
"docid": "c13c73a337f0b416dd0e626ae4d9b7cf",
"text": "To be fair, the analyst is talking about the book value of the firm. Basically, the value of all the stuff it owns now. There are plenty of companies with negative book value that can justify a positive share price. Ford, for instance, had negative book value but positive future earnings.",
"title": ""
},
{
"docid": "957c5899a0d1a893be298c8bffe79a4d",
"text": "It's got to be a bad chunk of data on Google. Yahoo finance does not show that anomaly for 1988, nor does the chart from Home Depot's investor relations site:",
"title": ""
},
{
"docid": "9ac7c6630baa51700ec34153a9559f2b",
"text": "Okay I don't know where my disconnect was, in my mind I was viewing that as a negative for some reason haha. Thanks! That makes sense. What is your perspective on the large amount of companies buying back shares right now?",
"title": ""
},
{
"docid": "e76b027a9e1943e499ed139aa5f86886",
"text": "The top ten holdings for these funds don't overlap by even one stock. It seems to me they are targeting an index for comparison, but making no attempt to replicate a list of holdings as would, say, a true S&P index.",
"title": ""
},
{
"docid": "a44bb66c5d620fbe35cf2db31fe54c8a",
"text": "\"lol, please, calculate the correlation and let me know how close to 1 it is. And then let me know what kind of sensible economic model looks like SPX Level = const + beta * Fed Balance Sheet Level. That's a great way to just throw useful statistical inference out the fucking window. Edit: I'd also like to make it abundantly clear that this is a monumentally retarded \"\"correlation\"\" to consider in the first place. The Fed balance sheet prior to 2008 was relatively tiny and unchanging, and yet the stock market was just as volatile in prior years.\"",
"title": ""
},
{
"docid": "5f710bf3dafd6bd265175acae324ef66",
"text": "if the consolidated joint venture/sub has a negative net worth, then it is backing out the minority owner's share. if another entity is taking the hit, or responsible for a hit/liability instead of you, then it should improve your valuation. do not confuse net worth with net income. BS vs IS.",
"title": ""
}
] |
fiqa
|
d5398341b99836d89fb0c923f598596f
|
Should I invest in real estate to rent, real estate to live in, or just stocks and bonds to earn 10-15%?
|
[
{
"docid": "4d9f05f39288a85e40d0d2571f7e15c5",
"text": "\"You are in your mid 30's and have 250,000 to put aside for investments- that is a fantastic position to be in. First, let's evaluate all the options you listed. Option 1 I could buy two studio apartments in the center of a European capital city and rent out one apartment on short-term rental and live in the other. Occasionally I could Airbnb the apartment I live in to allow me to travel more (one of my life goals). To say \"\"European capital city\"\" is such a massive generalization, I would disregard this point based on that alone. Athens is a European capital city and so is Berlin but they have very different economies at this point. Let's put that aside for now. You have to beware of the following costs when using property as an investment (this list is non-exhaustive): The positive: you have someone paying the mortgage or allowing you to recoup what you paid for the apartment. But can you guarantee an ROI of 10-15% ? Far from it. If investing in real estate yielded guaranteed results, everyone would do it. This is where we go back to my initial point about \"\"European capital city\"\" being a massive generalization. Option 2 Take a loan at very low interest rate (probably 2-2.5% fixed for 15 years) and buy something a little nicer and bigger. This would be incase I decide to have a family in say, 5 years time. I would need to service the loan at up to EUR 800 / USD 1100 per month. If your life plan is taking you down the path of having a family and needed the larger space for your family, then you need the space to live in and you shouldn't be looking at it as an investment that will give you at least 10% returns. Buying property you intend to live in is as much a life choice as it is an investment. You will treat the property much different from the way something you rent out gets treated. It means you'll be in a better position when you decide to sell but don't go in to this because you think a return is guaranteed. Do it if you think it is what you need to achieve your life goals. Option 3 Buy bonds and shares. But I haven't the faintest idea about how to do that and/or manage a portfolio. If I was to go down that route how do I proceed with some confidence I won't lose all the money? Let's say you are 35 years old. The general rule is that 100 minus your age is what you should put in to equities and the rest in something more conservative. Consider this: This strategy is long term and the finer details are beyond the scope of an answer like this. You have quite some money to invest so you would get preferential treatment at many financial institutions. I want to address your point of having a goal of 10-15% return. Since you mentioned Europe, take a look at this chart for FTSE 100 (one of the more prominent indexes in Europe). You can do the math- the return is no where close to your goals. My objective in mentioning this: your goals might warrant going to much riskier markets (emerging markets). Again, it is beyond the scope of this answer.\"",
"title": ""
},
{
"docid": "de2f8020f2afe5a02fa537ebb9f85250",
"text": "\"To be completely honest, I think that a target of 10-15% is very high and if there were an easy way to attain it, everyone would do it. If you want to have such a high return, you'll always have the risk of losing the same amount of money. Option 1 I personally think that you can make the highest return if you invest in real estate, and actively manage your property(s). If you do this well with short term rental and/or Airbnb I think you can make healthy returns BUT it will cost a lot of time and effort which may diminish its appeal. Think about talking to your estate agent to find renters, or always ensuring your AirBnB place is in good nick so you get a high rating and keep getting good customers. If you're looking for \"\"passive\"\" income, I don't think this is a good choice. Also make sure you take note of karancan's point of costs. No matter what you plan for, your costs will always be higher than you think. Think about water damage, a tenant that breaks things/doesn't take care of stuff etc. Option 2 I think taking a loan is unnecessarily risky if you're in good financial shape (as it seems), unless you're gonna buy a house with a mortgage and live in it. Option 3 I think your best option is to buy bonds and shares. You can follow karancan's 100 minus your age rule, which seems very reasonable (personally I invest all my money in shares because that's how my father brought me up, but it's really a matter of taste. Both can be risky though bonds are usually safer). I think I should note that you cannot expect a return of 10% or more because, as everyone always says, if there were a way to guarantee it, everyone would do it. You say you don't have any idea how this works so I'd go to my bank and ask them. You probably have access to private banking so that should mean someone will be able to sit you down and talk you through. Also look at other banks that have better rates and/or pretend you're leaving your bank to negotiate a better deal. If I were you I'd invest in blue chips (big international companies listed on the main indeces (DAX, FTSE 100, Dow Jones)), or (passively managed) mutual funds/ETFs that track these indeces. Just remember to diversify by country and industry a bit. Note: i would not buy the vehicles/plans that my bank (no matter what they promise, and they promise a lot) suggest because if you do that then the bank always takes a cut off your money. TlDr, dont expect to make 10-15% on a passive investment and do what a lot of others do: shares and bonds. Also make sure you get a lot of peoples opinions :)\"",
"title": ""
},
{
"docid": "0835861d6f6acedf689b48ce7c979ef1",
"text": "\"Are there other options I haven't thought of? Mutual funds, stocks, bonds. To buy and sell these you don't need a lawyer, a real-estate broker and a banker. Much more flexible than owning real estate. Edit: Re Option 3: With no knowledge of investing the first thing you should do is read a few books. The second thing you should do is invest in mutual funds (and/or ETFs) that track an index, such as the FTSE graph that was posted. Index funds are the safest way to invest for those with no experience. With the substantial amount that you are considering investing it would also be wise to do it gradually. Look up \"\"dollar cost averaging.\"\"\"",
"title": ""
},
{
"docid": "eaa10cf2c07d5fc073087e68ff8db674",
"text": "That your asking is a good first step towards taking control of your future. But truly, you must seek the advice of a personal consultant that is much more in tune with your finances that anyone out here in the public will be. You can get this type of advice locally, or if you want something online, I suggest oDesk or something similar to find a large pool of people and to efficiently find the right person for suited for your situation.",
"title": ""
}
] |
[
{
"docid": "cbc8773cb5a67bbf55cba1b513b1816b",
"text": "\"Due to the zero percent interest rate on the Euro right now you won't find any investment giving you 5% which isn't equivalent to gambling. One of the few investment forms which still promises gains without unreasonable risks right now seems to be real estate, because real estate prices in German urban areas (not so in rural areas!) are growing a lot recently. One reason for that is in fact the low interest rate, because it makes it very cheap right now to take a loan and buy a home. This increased demand is driving up the prices. Note that you don't need to buy a property yourself to invest in real estate (20k in one of the larger cities of Germany will get you... maybe a cardboard box below a bridge?). You can invest your money in a real estate fund (\"\"Immobilienfond\"\"). You then don't own a specific property, you own a tiny fraction of a whole bunch of different properties. This spreads out the risk and allows you to invest exactly as much money as you want. However, most real estate funds do not allow you to sell in the first two years and require that you announce your sale one year in advance, so it's not a very liquid asset. Also, it is still a risky investment. Raising real estate prices might hint to a bubble which might burst eventually. Financial analysts have different opinions about this. But fact is, when the European Central Bank starts to take interest again, then the demand for real estate property will drop and so will the prices. When you are not sure what to do, ask your bank for investment advise. German banks are usually trustworthy in this regard.\"",
"title": ""
},
{
"docid": "754593853a3d3ca40ec2b931011429f9",
"text": "I'm surprised nobody else has suggested this yet: before you start investing in stocks or bonds, buy a house. Not just any house, but the house you want to live in 20 years from now, in a place where you want to live 20 years from now - but you also have to be savvy about which part of the country or world you buy in. I'm also assuming that you are in the USA, although my suggestion tends to apply equally anywhere in the world. Why? Simple: as long as you own a house, you won't ever have to pay rent (you do have to pay taxes and maintenance, of course). You have a guaranteed return on investment, and the best part is: because it's not money you earn but money you don't have to spend, it's tax free. Even if the house loses value over time, you still come out ahead. And if you live abroad temporarily, you can rent out the house and add the rent to your savings (although that does make various things more complicated). You only asked for options, so that is mine. I'll add some caveats. OK, now here are the caveats:",
"title": ""
},
{
"docid": "d4fd86258ec74ae357c703e1e22ab911",
"text": "Consider a single person with a net worth of N where N is between one and ten million dollars. has no source of income other than his investments How much dividends and interest do your investments return every year? At 5%, a US$10M investment returns $500K/annum. Assuming you have no tax shelters, you'd pay about $50% (fed and state) income tax. https://budgeting.thenest.com/much-income-should-spent-mortgage-10138.html A prudent income multiplier for home ownership is 3x gross income. Thus, you should be able to comfortably afford a $1.5M house. Of course, huge CC debt load, ginormous property taxes and the (full) 5 car garage needed to maintain your status with the Joneses will rapidly eat into that $500K.",
"title": ""
},
{
"docid": "f401b03c9a02d7b203368bb932406d81",
"text": "In no particular order - to help you on deciding whether to invest or not: Building Wealth One House at a Time Buy & Rent Foreclosures: 3 Million Net Worth, 22,000 Net Per Month, In 7 Years...You can too! Landlording on Auto-Pilot: A Simple, No-Brainer System for Higher Profits and Fewer Headaches and for when/if you actually decide to start: Investing in Real Estate I've read all the books above and they all have a little bit of information here and there to take out - although they have some redudency it is the good type you need to learn/know anyway. Hope this helps.",
"title": ""
},
{
"docid": "3bcc297d2ceaa81a2066b4adbf028eab",
"text": "\"Other individuals answered how owning an REIT compares to an individual real estate investment, but did not answer your second question as readily, \"\"are REITs a good option to generate passive income for awhile?\"\". The \"\"awhile\"\" part is quite important in answering this question. If your intentions are to invest for a relatively short time period (say, 7 years or less), it may be especially advantageous to invest in a REIT. The foremost advantage comes from significantly lower transaction fees (stock/ETF trades are practically/potentially free today) compared to purchasing real estate, which involves inspection+titling fees/taxes/broker fees, which in a round-trip transaction (purchase and sale) would come to ~10%. The secondary advantage to owning a REIT is they are much more liquid than a property. If you wanted to sell your investment at a given point in time, you can easily log into your brokerage and execute your transaction, while liquidating an investment property will take time on market/potentially tossing tenants/fixing up place, etc. On the other hand, illiquid investments have generally yielded higher historical returns according to past research.\"",
"title": ""
},
{
"docid": "7ba9327c8f024c08fa6c256cf3ec6196",
"text": "Which is generally the better option (financially)? Invest. If you can return 7-8% (less than the historical return of the S&P 500) on your money over the course of 25 years this will outperform purchasing personal property. If you WANT to own a house for other reason apart from the financial benefits then buy a house. Will you earn 7-8% on your money, there is a pretty good chance this is no because investors are prone to act emotionally.",
"title": ""
},
{
"docid": "cee71f9bd212d78882666c766f533116",
"text": "If you have a view on housing you can buy a real estate investment trust and use proceeds to pay rent. Downside is, depending on where you live, you'll have to pay tax on dividend income from REITs. So if you invest the same amount in a REIT as in a house you'll effectively loose some money due to the tax. You can also think of it this way: you wouldn't pay tax on the rent that you don't have to pay as a result of owning a house, but you pay tax on rent that other people pay you.",
"title": ""
},
{
"docid": "17fe244e271b26488189fb303501cb61",
"text": "I think it depends entirely on your risk tolerance. Putting money in individual stocks obviously increases your risk and potentially increases your reward. Personally (as a fairly conservative investor) I'd only invest in individual stocks if I could afford to lose the entire investment (maybe I'd end up buying Enron or Nortel). If you enjoy envesting and feel 10% is an acceptable loss I think you have your answer",
"title": ""
},
{
"docid": "f0a717cb3d03349eff74c42a58816337",
"text": "The standard advice is that stocks are all over the place, and bonds are stable. Not necessarily true. Magazines have to write for the lowest common denominator reader, so sometimes the advice given is fortune-cookie like. And like mbhunter pointed out, the advertisers influence the advice. When you read about the wonders of Index funds, and see a full page ad for Vanguard or the Nasdaq SPDR fund, you need to consider the motivation behind the advice. If I were you, I would take advantage of current market conditions and take some profits. Put as much as 20% in cash. If you're going to buy bonds, look for US Government or Municipal security bond funds for about 10% of your portfolio. You're not at an age where investment income matters, you're just looking for some safety, so look for bond funds or ETFs with low durations. Low duration protects your principal value against rate swings. The Vanguard GNMA fund is a good example. $100k is a great pot of money for building wealth, but it's a job that requires you to be active, informed and engaged. Plan on spending 4-8 hours a week researching your investments and looking for new opportunities. If you can't spend that time, think about getting a professional, fee-based advisor. Always keep cash so that you can take advantage of opportunities without creating a taxable event or make a rash decision to sell something because you're excited about a new opportunity.",
"title": ""
},
{
"docid": "252851bb2da3621d7ad059dcc0ae87fb",
"text": "\"Say you have $15,000 of capital to invest. You want to put the majority of your capital into low risk investments that will yield positive gains over the course of your working career. $5,000: Government bonds and mutual funds, split how you want. $9,500: Low risk, trusted companies with positive historical growth. If the stock market is very unfamiliar for you, I recommend Google Finance, Yahoo Finance, and Zack's to learn about smart investments you can make. You can also research the investments that hedge fund managers and top investors are making. Google \"\"Warren Buffett or Carl Icahn portfolio\"\", and this will give you an idea of stocks you can put your money into. Do not leave your money into a certain company for more than 25 years. Rebalance your portfolio and take the gains when you feel you need them. You have no idea when to take your profits now, but 5 years from now, you will be a smart and experienced investor. A safe investment strategy to start is to put your money into an ETF that mimics the S&P 500. Over the past 20 years, the S&P 500 has yielded gains of about 270%. During the financial crisis a few years back, the S&P 500 had lost over 50% of its value when it reached its low point. However, from when it hit rock bottom in 2009, it has had as high percentage gains in six years as it did in 12 years from 1995 to 2007, which about 200%. The market is very strong and will treat your money well if you invest wisely. $500: Medium - High risk Speculative Stocks There is a reason this category accounts for only approximately 3% of your portfolio. This may take some research on the weekend, but the returns that may result can be extraordinary. Speculative companies are often innovative, low priced stocks that see high volatility, gains or losses of more than 10% over a single month. The likelihood of your $500 investment being completely evaporated is very slim, but if you lose $300 here, the thousands invested in the S&P 500, low risk stocks, government bonds, and mutual funds will more than recuperate the losses. If your pick is a winner, however, expect that the $500 investment could easily double, triple, or gain even more in a single year or over the course of just a few, perhaps, 2-4 years will see a very large return. I hope this advice helps and happy investing! Sending your money to smart investments is the key to financial security, freedom, and later, a comfortable retirement. Good luck, Matt McLaughlin\"",
"title": ""
},
{
"docid": "dadd997d194fe1f6e1022dffd87f315a",
"text": "You apparently assume that pouring money into a landlord's pocket is a bad thing. Not necessarily. Whether it makes sense to purchase your own home or to live in a rental property varies based on the market prices and rents of properties. In the long term, real estate prices closely follow inflation. However, in some areas it may be possible that real estate prices have increased by more than inflation in the past, say, 10 years. This may mean that some (stupid) people assume that real estate prices continue to appreciate at this rate in the future. The price of real estates when compared to rents may become unrealistically high so that the rental yield becomes low, and the only reasonable way of obtaining money from real estate investments is price appreciation continuing. No, it will not continue forever. Furthermore, an individual real estate is a very poorly diversified investment. And a very risky investment, too: a mold problem can destroy the entire value of your investment, if you invest in only one property. Real estates are commonly said to be less risky than stocks, but this applies only to large real estate portfolios when compared with large stock portfolios. It is easier to build a large stock portfolio with a small amount of money to invest when compared to building a large real estate portfolio. Thus, I would consider this: how much return are you going to get (by not needing to pay rent, but needing to pay some minor maintenance costs) when purchasing your own home? How much does the home cost? What is the annual return on the investment? Is it larger than smaller when compared to investing the same amount of money in the stock market? As I said, an individual house is a more risky investment than a well-diversified stock portfolio. Thus, if a well-diversified stock portfolio yields 8% annually, I would demand 10% return from an individual house before considering to move my money from stocks to a house.",
"title": ""
},
{
"docid": "ef20c2eeb309e86103342ac03ce8e921",
"text": "You could look into an index fund or ETF that invests primarily in Real Estate Investment Trusts (REIT's). An REIT is any corporation, trust or association that acts as an investment agent specializing in real estate and real estate mortgages Many investment firms offer an index fund or ETF like this. For example, Vanguard and Fidelity have funds that invest primarily in real estate markets. You could also invest in a home construction ETF, like iShares' ITB, which invests in companies related to home construction. This ETF includes more companies than just REITs, so for example, Home Depot is included.",
"title": ""
},
{
"docid": "a3e7dd56fbd72e7484314c90545e4f50",
"text": "\"In financial markets, the gains you can expect to make (whether in the form of dividends or capital gains) correspond to the risks you are bearing. There are a variety of REITs but you can expect to make only as much money in them as you bear risk (meaning you can also lose a lot of money in the ones that earn a lot). In that sense they are just like other financial assets like stocks. If you are generically trying to increase your wealth by bearing risk, you can get a better risk/reward ratio in a fully diversified portfolio including stocks and bonds as well and REITs. \"\"Passive income\"\" means making money by bearing risk. REITs alone, without diversifying into other financial assets, do a poor job of generating income for the amount of risk you bear. So why are REITs not very comparable to buying a house and renting it out? Because in the latter case you are being paid not only for bearing the risk of the house depreciating but also you are being compensated for the work you do as a landlord. Moreover, because the house doesn't trade in a liquid market like REITs do, it is possible to actually get a good deal, as opposed to the fair deal you will get on a REIT. TL;DR: The \"\"passive income\"\" generated by REIT investment is more similar to generic equity/bond investment than it is to an investment in a physical home that you rent out. If what you want is to make money without doing anything besides bear risk, you should invest in a fully diversified portfolio of financial assets (equity and bonds being the primary constituents but REITs potentially being a part as well).\"",
"title": ""
},
{
"docid": "c83e47cb9631f83ce924a41ea510ae86",
"text": "\"You are suggesting that a 1% return per month is huge. There are those who suggest that one should assume (a rule of thumb here) that you should assume expenses of half the rent. 6% per year in this case. With a mortgage cost of 4.5% on a rental, you have a forecast profit of 1.5%/yr. that's $4500 on a $300K house. If you buy 20 of these, you'll have a decent income, and a frequently ringing phone. There's no free lunch, rental property can be a full time business. And very lucrative, but it's rarely a slam dunk. In response to OP's comment - First, while I do claim to know finance fairly well, I don't consider myself at 'expert' level when it comes to real estate. In the US, the ratio varies quite a bit from area to area. The 1% (rent) you observe may turn out to be great. Actual repair costs low, long term tenants, rising home prices, etc. Improve the 1.5%/yr to 2% on the 20% down, and you have a 10% return, ignoring appreciation and principal paydown. And this example of leverage is how investors seem to get such high returns. The flip side is bad luck with tenants. An eviction can mean no rent for a few months, and damage that needs fixing. A house has a number of long term replacement costs that good numbers often ignore. Roof, exterior painting, all appliances, heat, AC, etc. That's how that \"\"50% of rent to costs\"\" rule comes into play.\"",
"title": ""
},
{
"docid": "f87226ad36fb57cd8b9f6f94267f6536",
"text": "I would say that, for the most part, money should not be invested in the stock market or real estate. Mostly this money should be kept in savings: I feel like your emergency fund is light. You do not indicate what your expenses are per month, but unless you can live off of 1K/month, that is pretty low. I would bump that to about 15K, but that really depends upon your expenses. You may want to go higher when you consider your real estate investments. What happens if a water heater needs replacement? (41K left) EDIT: As stated you could reduce your expenses, in an emergency, to 2K. At the bare minimum your emergency fund should be 12K. I'd still be likely to have more as you don't have any money in sinking funds or designated savings and the real estate leaves you a bit exposed. In your shoes, I'd have 12K as a general emergency fund. Another 5K in a car fund (I don't mind driving a 5,000 car), 5k in a real estate/home repair fund, and save about 400 per month for yearly insurance and tax costs. Your first point is incorrect, you do have debt in the form of a car lease. That car needs to be replaced, and you might want to upgrade the other car. How much? Perhaps spend 12K on each and sell the existing car for 2K? (19K left). Congratulations on attempting to bootstrap a software company. What kind of cash do you anticipate needing? How about keeping 10K designated for that? (9K left) Assuming that medical school will run you about 50K per year for 4 years how do you propose to pay for it? Assuming that you put away 4K per month for 24 months and have 9K, you will come up about 95K short assuming some interests in your favor. The time frame is too short to invest it, so you are stuck with crappy bank rates.",
"title": ""
}
] |
fiqa
|
be81bc3d2c76925559417d2b1a9c17a8
|
Should I start investing in property with $10,000 deposit and $35,000 annual wage
|
[
{
"docid": "1ae3cb543558e6c150f706998416094c",
"text": "You want to buy a house for $150,000. It may be possible to do this with $10,000 and a 3.5% downpayment, but it would be a lot better to have $40,000 and make a 20% downpayment. That would give you a cushion in case house prices fall, and there are often advantages to a 20% downpayment (lower rate; less mandatory insurance). You have an income of $35,000 and expenses of $23,000 (if you are careful with the money--what if you aren't?). You should have savings of either $17,500 or $11,500 in case of emergencies. Perhaps you simply weren't mentioning that. Note that you also need at least $137 * 26 = $3562 more to cover mortgage payments, so $15,062 by the expenses standard. This is in addition to the $40,000 for downpayment and closing costs. What do you plan to do if there is a problem with the new house, e.g. you need a new roof? Or smaller expenses like a new furnace or appliance? A plumbing problem? Damages from a storm? What if the tenants' teenage child has a party and trashes the place? What if your tenants stop paying rent but refuse to move out, trashing the place while being evicted? Your emergency savings need to be able to cover those situations. You checked comps (comparable properties). Great! But notice that you are looking at a one bathroom property for $150,000 and comparing to $180,000 houses. Consider that you may not get the $235 for that house, which is cheaper. Perhaps the rent for that house will only be $195 or less, because one bathroom doesn't really support three bedrooms of people. While real estate can be part of a portfolio, balance would suggest that much more of your portfolio be in things like stocks and bonds. What are you doing for retirement? Are you maxing out any tax-advantaged options that you have available? It might be better to do that before entering the real estate market. I am a 23 year old Australian man with a degree in computer science and a steady job from home working as a web developer. I'm a bit unclear on this. What makes the job steady? Is it employment with a large company? Are you self-employed with what has been a steady flow of customers? Regardless of which it is, consider the possibility of a recession. The company can lay you off (presumably you are at the bottom of the seniority). The new customers may be reluctant to start new projects while their cash flow is restrained. And your tenants may move out. At the same time. What will you do then? A mortgage is an obligation. You have to pay it regardless. While currently flush, are you the kind of flush that can weather a major setback? I would feel a lot better about an investment like this if you had $600,000 in savings and were using this as a complementary investment to broaden your portfolio. Even if you had $60,000 in savings and would still have substantial savings after the purchase. This feels more like you are trying to maximize your purchase. Money burning a hole in your pocket and trying to escape. It would be a lot safer to stick to securities. The worst that happens there is that you lose your investment (and it's more likely that the value will be reduced but recover). With mortgages, you can lose your entire investment and then some. Yes, the price may recover, but it may do so after the bank forecloses on the mortgage.",
"title": ""
},
{
"docid": "924b595836b4404f4be44823643bf657",
"text": "In general people make a few key mistakes with property: 1) Not factoring in depreciation properly. Houses are perpetually falling down, and if you are renting them perpetually being trashed by the tenants as well - particularly in bad areas. Accurate depreciation costs can often run in the 5-20% range per year depending on the property/area. Add insurance to this as well. 2) Related to 1), they take the index price of house price rises as something they can achieve, when in reality a lot of the house price 'rise' is just everyone having to spend a lot of money keeping them standing up. No investor can actually track a house price graph due to 1) so be careful to make reasonable assumptions about actual achievable future growth. 3) Failure to price in the huge transaction costs (often 5%+ per sale) and capital gains/other taxes (depends on the exact tax structure where you are). These add up very fast if you are buying and selling at all frequently. 4) Costs in either time or fees to real estate rental agents. Having to fill, check, evict, fix and maintain rental properties is a lot more work than most people realise, and you either have to pay this in your own time or someone else’s. Again, has to be factored in. 5) Liquidity issues. Selling houses in down markets is very, very hard. They are not like stocks where they can be moved quickly. Houses can often sit on the market for years before sale if you are not prepared to take low prices. As the bank owns your house if you fail to pay the mortgage (rents collapse, loss of job etc) they can force you to fire sale it leaving you in a whole world of pain depending on the exact legal system (negative equity etc). These factors are generally correlated if you work in the same cities you are buying in so quite a lot of potential long tail risk if the regional economy collapses. 6) Finally, if you’re young they can tie you to areas where your earnings potential is limited. Renting can be immensely beneficial early on in a career as it gives you huge freedom to up sticks and leave fast when new opportunities arise. Locking yourself into 20yr+ contracts/activities when young can be hugely inhibiting to your earnings potential – particularly in fast moving jobs like software development. Without more details on the exact legal framework, area, house type etc it’s hard to give more specific advise, but in general you need a very large margin of safety with property due to all of the above, so if the numbers you’re running are coming out close, it’s probably not worth it, and you’re better of sticking with more hands off investments like stocks and bonds.",
"title": ""
},
{
"docid": "6adfc37167cca13c23799cd8c226a6d5",
"text": "I would strongly, strongly advise against it. Others here are answering the question of, having decided to invest in property, how one ought to ensure that one invests in the right property. What has not really been discussed here is the issue of diversification. There are a number of serious risks to property investment. In fact, it is one of the riskiest types of investment. You face more of almost every type of risk in property than maybe any other asset class. It is one thing to take on those risks as part of a diverse portfolio including other asset classes. It is quite another - extremely irresponsible - thing to take on those risks as your sole investment, when your portfolio is in its infancy. So no, do not invest in property when you lack any other investments. Absolutely not.",
"title": ""
},
{
"docid": "579f9a0a5a958b3a896d6f07239b2853",
"text": "\"I want to caveat that I am not an active investor in Australia, you most likely should seek out other investors in your market and ask them for advice/mentorship, but since you came here I can give you some generalized advice. When investing in real estate there are a two main rules of thumb to quickly determine if the property will be a good investment. The 50% rule and the 2% (or 1%) rule. The 50% rules says that in general 50% if the income from the property will go to expenses not including debt service. If you are bringing in $1000 a month 500 of that will go to utilities, taxes, repair, capital expenditures, advertising, lawn care, etc. That leave you with 500 to pay the mortgage and if anything is left that can be cash flow. As this is your first property and it is in \"\" a relatively bad neighbourhood\"\" you might consider bumping that up to 60% just to make sure you have padding. The 1 or 2% rules says that the monthly rent should be 1(or 2) percent of the purchase price in this case the home is bought at 150,000. If the rent is 1,500 a month it might be a good investment but if it rents for 3,000 a month it probably is a good investment. There are other factors to consider if a home meets the 2% rule it might be in a rough neighborhood which increases turnover which in general is the biggest expense in an investment property. If a property meets one or both of these rules you should take a closer look at it and with proper due diligence determine that it is a deal. These rules are just hard and fast guidelines to property analysis, they may need to be adapted to you market. For example these rules will not hold in most (all?) big cities.\"",
"title": ""
}
] |
[
{
"docid": "1cc9fda9a30d5e545deb8607f0ed6bc2",
"text": "I would suggest you to put your money in an FD for a year, and as soon as you get paid the interest, start investing that interest in a SIP(Systematic investment plan). This is your safest option but it will not give you a lot of returns. But I can guarantee that you will not lose your capital(Unless the economy fails as a whole, which is unlikely). For example: - you have 500000 rupees. If you put it in a fixed deposit for 1 year, you earn 46500 in interest(At 9% compounded quarterly). With this interest you can invest Rs.3875(46500/12) every month in an SIP for 12 months and also renew your FD, so that you can keep earning that interest.So at the end of 10 years, you will have 5 lacs in your FD and Rs. 4,18,500 in your SIP(Good funds usually make 13-16 % a year). Assuming your fund gives you 14%, you make: - 1.) 46500 at 14% for 9 years - 1,51,215 2.)8 years - 1,32,645 3.) 7 years - 1,16,355 4.) 6 years - 1,02,066 5.) 5 years - 89,531 6.) 4 years - 78,536 7.) 3 years - 68891 8.) 2 years 60,431 9.) 1 year - 53010 Total Maturity Value on SIP = Rs, 8,52,680 Principal on FD = Rs 5,00,000 Interest earned on 10th year = Rs. 46,500 Total = Rs. 13,99,180(14 lacs). Please note: - Interest rates and rate of return on funds may vary. This figure can only be assumed if these rates stay the same.:). Cheers!",
"title": ""
},
{
"docid": "c255f9fe7a02eec2d330e649199f09dc",
"text": "Unfortunately, in this market environment your goal is not very realistic. At the moment real interest rates are negative (and have been for some time). This means if you invest in something that will pay out for sure, you can expect to earn less than you lose through inflation. In other words, if you save your $50K, when you withdraw it in a few years you will be able to buy less with it then than you can now. You can invest in risky securities like stocks or mutual funds. These assets can easily generate 10% per year, but they can (and do) also generate negative returns. This means you can and likely will lose money after investing in them. There's an even better chance that you will make money, but that varies year by year. If you invest in something that expects to make 10% per year (meaning it makes that much on average), it will be extremely risky and many years it will lose money, perhaps a lot of it. That's the way risk is. Are you comfortable taking on large amounts of risk (good chances of losing a lot of your money)? You could make some kind of real investment. $50K is a little small to buy real estate, but you may be able to find something like real estate that can generate income, especially if you use it as a down payment to borrow from the bank. There is risk in being a landlord as well, of course, and a lot of work. But real investments like that are a reasonable alternative to financial markets for some people. Another possibility is to just keep it in your bank account or something else with no risk and take $5000 out per year. It will only last you 10 years that way, but if you are not too young, that will be a significant portion of your life. If you are young, you can work and add to it. Unfortunately, financial markets don't magically make people rich. If you make a lot of money in the market, it's because you took a risk and got lucky. If you make a comfortable amount with no risk, it means you invested in a market environment very different from what we see today. --------- EDIT ------------ To get an idea of what risk free investments (after inflation) earn per year at various horizons see this table at the treasury. At the time of this writing you would have to invest in a security with maturity almost 10 years in order to break even with inflation. Beating it by 10% or even 3% per year with minimal risk is a pipe dream.",
"title": ""
},
{
"docid": "c20caa866e1e2694a2da247c5e9f80a9",
"text": "A common rule of thumb is the 28/36 ratio. It's described here. In your case, with a gross (?) salary of £50,000, that means that you should spend no more than 28% of it, or £1,167 per month on housing. You may be able to swing a bit more because you have no debts and a modest amount in your savings. The 36% part comes in as the amount you can spend servicing all your debt, including mortgage. In your case, based on a gross (?) salary of £50,000, that'd be £1,500 per month. Again, that is to cover your housing costs and any additional debt you are servicing. So, you need to figure out how much you could bring in through rent to make up the rest. As at least one other person has commented, the rule of thumb is that your mortgage should be no more than 2.5 - 3 times your income. I personally think you are not a good candidate for a mortgage of the size you are discussing. That said, I no longer live in England. If you could feel fairly secure getting someone to pay you enough in rent to bring down your total mortgage and loan repayment amounts to £1,500 or so a month, you may want to consider it. Remember, though, that it may not always be easy to find renters.",
"title": ""
},
{
"docid": "72dd5b02c4594d20c11789f4b6b44525",
"text": "Financial advice from good advisers sounds a good idea. Talk to two or three before taking their advice... their services and advice are surprisingly and sometimes alarmingly diverse. Gaining money from renting out property is harder than it seems and 10% sounds very ambitious after all costs. Buying abroad especially is a challenge to make money on.. You need to be lucky, and have a strong flair to do it despite all. Bear in mind santander pay 3% on current accounts by the way. Have you ever thought about living abroad somewhere stable or cheap or downsizing. A part time job or low pressure job might top up a limited pension for long enough to find a long term solution while giving you the feeling of starting retirement. Just some thoughts... think it through carefully .. weigh the risks.. be realistic and good luck. Jonjo",
"title": ""
},
{
"docid": "55ecdda1e229a73cd562b64220076832",
"text": "As user14469 mentions you would have to decide what type of properties you would like to invest in. Are you after negatively geared properties that may have higher long term growth potential (usually within 15 to 20km from major cities), or after positive cash-flow properties which may have a lower long term growth potential (usually located more than 20km from major cities). With negative geared properties your rent from the property will not cover the mortgage and other costs, so you will have to supplement it through your income. The theory is that you can claim a tax deduction on your employment income from the negative gearing (benefits mainly those on higher tax brackets), and the potential long term growth of the property will make up for the negative gearing over the long term. If you are after these type of properties Michael Yardney has some books on the subject. On the other hand, positive cash-flow properties provide enough rental income to cover the mortgage and other costs. They put cash into your pockets each week. They don't have as much growth potential as more inner city properties, but if you stick to the outer regions of major cities, instead of rural towns, you will still achieve decent long term growth. If you are after these type of properties Margaret Lomas has some books on the subject. My preference is for cash-flow positive properties, and some of the areas user14469 has mentioned. I am personally invested in the Penrith and surrounding areas. With negatively geared properties you generally have to supplement the property with your own income and generally have to wait for the property price to increase so you build up equity in the property. This then allows you to refinance the additional equity so you can use it as deposits to buy other properties or to supplement your income. The problem is if you go through a period of low, stagnate or negative growth, you may have to wait quite a few years for your equity to increase substantially. With positively geared properties, you are getting a net income from the property every week so using none of your other income to supplement the property. You can thus afford to buy more properties sooner. And even if the properties go through a period of low, stagnate or negative growth you are still getting extra income each week. Over the long term these properties will also go up and you will have the benefit of both passive income and capital gains. I also agree with user14469 regarding doing at least 6 months of research in the area/s you are looking to buy. Visit open homes, attend auctions, talk to real estate agents and get to know the area. This kind of research will beat any information you get from websites, books and magazines. You will find that when a property comes onto the market you will know what it is worth and how much you can offer below asking price. Another thing to consider is when to buy. Most people are buying now in Australia because of the record low interest rates (below 5%). This is causing higher demand in the property markets and prices to rise steadily. Many people who buy during this period will be able to afford the property when interest rates are at 5%, but as the housing market and the economy heat up and interest rates start rising, they find it hard to afford the property when interest rate rise to 7%, 8% or higher. I personally prefer to buy when interest rates are on the rise and when they are near their highs. During this time no one wants to touch property with a six foot pole, but all the owners who bought when interest rates where much lower are finding it hard to keep making repayments so they put their properties on the market. There ends up being low demand and increased supply, causing prices to fall. It is very easy to find bargains and negotiate lower prices during this period. Because interest rates will be near or at their highs, the economy will be starting to slow down, so it will not be long before interest rates start dropping again. If you can afford to buy a property at 8% you will definitely be able to afford it at 6% or lower. Plus you would have bought at or near the lows of the price cycle, just before prices once again start increasing as interest rates drop. Read and learn as much as possible from others, but in the end make up your own mind on the type of properties and areas you prefer.",
"title": ""
},
{
"docid": "f826bafa5b768c0119ad66f18bd1b81d",
"text": "Major things to consider: If you're expecting to look at the property market: it might prove to be sensible to start doing it now, since the market is just recovering, and (IMHO warning -I'm not a professional investor, just a random guy on the internet) prices still hasn't caught up with value fundamentals. check out cash ISA's for a 24-36 month timeframe; most do a reasonable 3-4% AER, with the current inflation rate being around 4%, this will, at the very least, make sure your money doesn't loose it's purchasing power. Finally, a word of caution: SIPPs have a rather rubbish AER rates. This, by itself, wouldn't be much of a problem on a 30-40 years timeframe, but keep the (current, and historically strictly monotonically increasing) 4% inflation rate in mind: this implies the purchasing power of any money tied in these vehicles will loose it's purchasing power, in a compounding manner. Hope this helps, let me know if you have any questions.",
"title": ""
},
{
"docid": "78073fba775581c025e7fb35c48e3db3",
"text": "I don't know enough about taxes and real-state in the Netherlands to be super helpful in determining whether or not a rental property is a good investment. One thing for certain is that there's some risk in spending everything on a rental property. It's wise to have some buffer, an emergency fund of 3-6 months expenses. If things got dire, you'd still need to live somewhere until your tenant was gone, and you'd want to be able to handle any major repairs that crop up. So, even if it is a good idea to buy a rental property, you should probably wait until doing so doesn't leave you without a healthy buffer. As for owning a rental, you described a scenario where you'd get 6% income on your investment each year if there were zero expenses associated with owning the property. Are there property taxes? Is there a monthly cost to maintain the building the apartment is in? Are rental incomes taxed more heavily than other investment income? Just be aware of the full financial picture before deciding if it's a worthwhile investment.",
"title": ""
},
{
"docid": "181412d0dfd9b6ebf68ab4c0aa3b8b44",
"text": "There is no generic formula as such, but you can work it out using all known incomes and expenses and by making some educated assuption. You should generaly know your buying costs, which include the purchase price, legal fees, taxes (in Australia we have Stamp Duty, which is a large state based tax when you purchase a property). Other things to consider include estimates for any repairs and/or renovations. Also, you should look at the long term growth in your area and use this as an estimate of your potential growth over the period you wish to hold the property, and estimate the agent fees if you were to sell, and the depreciation on the building. These things, including the agent fees when selling and building depreciation, will all be added or deducted to your cost base to determine the amount of capital gain when and if you sell the property. You then need to multiply this gain by the capital gains tax rate to determine the capital gains tax you may have to pay. From all the items above you will be able to estimate the net capital gain (after all taxes) you could expect to make on the property over the period you are looking to hold it for. In regards to holding and renting the property, things you will need to consider include the rent, the long term growth of rent in your area, and all the expenses including, loan fees and interest, insurance, rates, land tax, and an estimate of the annual maintenance cost per year. Also, you would need to consider any depreciation deductions you can claim. Other things you will need to consider, is the change in these values as time goes by, and provide an estimate for these in your calculations. Any increase in the value of land will increase the amount of rates and the land tax you pay, and generally your insurance and maintenance costs will increase with time. However, your interest and mortgage repayments will reduce over time. Will your rent increases cover your increases in the expenses. From all the items above you should be able to work out an estimate of your net rental gain or loss for each year. Again do this for the number of years you are looking to hold the property for and then sum up the total to give a net profit or loss. If there is a net loss from the income, then you need to consider if the net capital gain will cover these losses and still give you a reasonable return over the period you will own the property. Below is a sample calculation showing most of the variables I have discussed.",
"title": ""
},
{
"docid": "b214c21bfffcc07a9824cab573471df1",
"text": "That is a decision you need to make, but some of the pros and cons you could consider to help your decision making include: Pros: If bought at the right time in the property cycle and in a good growth area, it can help you grow your net worth much quicker than having money in the bank earning near zero interest. You would be replacing rent payments with mortgage payments and if your mortage payments are less than your current rent you will have additional money to pay for any expenses on the property and have a similar cashflow as you do now. You will be able to deduct your interest payments on the mortgage against your income if you are in the USA, thus reducing the tax you pay. You will have the security of your own house and not have to worry about moving if the landlord wants you out after your lease expires. Cons: If bought in a bad area and at the top of the property cycle you may never make any capital gains on the property and in fact may lose money on it long term. If the mortgage payments are more than your current rent you may be paying more especially at the start of your mortgage. If you buy a house you are generally stuck in one spot, it will be harder to move to different areas or states as it can cost a lot of money and time to sell and buy elsewhere, if renting you can generally just give notice and find a new place to rent. Property maintenance costs and taxes could be a drain on your finances, especially if the mortgage repayments are more than your current rent. If your mortgage payments and property expenses are way more than your current rent, it may reduce what you could be investing in other areas to help increase your net worth.",
"title": ""
},
{
"docid": "a5e1360f3a804475b28a1f26149f104b",
"text": "Anybody that offers a bigger return than a deposit claiming 100% safe is a fraud. There is always a risk: Yes, you can gain 30% in a year, but nobody can guarantee that you'll repeat that gain the next. My own experience (and I do take risks), one year I go up, the next year I go down...",
"title": ""
},
{
"docid": "d0a4f30fe175ac4fea44cfdb318900d9",
"text": "When buying investment properties there are different levels of passive investment involved. At one end you have those that will buy an investment property and give it to a real estate agent to manage and don't want to think of it again (apart from watching the rent come in every week). At the other end there are those that will do everything themselves including knocking on the door to collect the rent. Where is the best place to be - well somewhere in the middle. The most successful property investors treat their investment properties like a business. They handle the overall management of the properties and then have a team taking care of the day-to-day nitty gritty of the properties. Regarding the brand new or 5 to 10 year old property, you are going to pay a premium for the brand new. A property that is 5 years old will be like new but without the premium. I once bought a unit which was 2 to 3 years old for less than the original buyer bought it at brand new. Also you will still get the majority of the depreciation benefits on a 5 year old property. You also should not expect too much maintenance on a 5 to 10 year old property. Another option you may want to look at is Defence Housing. They are managed by the Department of Defence and you can be guaranteed rent for 10 years or more, whether they have a tenant in the property or not. They also carry out all the maintenance on the property and restore it to original condition once their contract is over. The pitfall is that you will pay a lot more for the management of these properties (up to 15% or more). Personally, I would not go for a Defence Housing property as I consider the fees too high and would not agree with some of their terms and conditions. However, considering your emphasis on a passive investment, this may be an option for you.",
"title": ""
},
{
"docid": "47cea5f4c2bd6ef611d52e55975e7338",
"text": "I have done something similar to this myself. What you are suggesting is a sound theory and it works. The issues are (which is why it's the reason not everyone does it) : The initial cost is great, many people in their 20s or 30s cannot afford their own home, let alone buy second properties. The time to build up a portfolio is very long term and is best for a pension investment. it's often not best for diversification - you've heard not putting all your eggs in one basket? With property deposits, you need to put a lot of eggs in to make it work and this can leave you vulnerable. there can be lots of work involved. Renovating is a huge pain and cost and you've already mentioned tennants not paying! unlike a bank account or bonds/shares etc. You cannot get to your savings/investments quickly if you need to (or find an opportunity) But after considering these and deciding the plunge is worth it, I would say go for it, be a good landlord, with good quality property and you'll have a great nest egg. If you try just one and see how it goes, with population increase, in a safe (respectable) location, the value of the investment should continue to rise (which it doesn't in a bank) and you can expect a 5%+ rental return (very hard to find in cash account!) Hope it goes well!",
"title": ""
},
{
"docid": "f401b03c9a02d7b203368bb932406d81",
"text": "In no particular order - to help you on deciding whether to invest or not: Building Wealth One House at a Time Buy & Rent Foreclosures: 3 Million Net Worth, 22,000 Net Per Month, In 7 Years...You can too! Landlording on Auto-Pilot: A Simple, No-Brainer System for Higher Profits and Fewer Headaches and for when/if you actually decide to start: Investing in Real Estate I've read all the books above and they all have a little bit of information here and there to take out - although they have some redudency it is the good type you need to learn/know anyway. Hope this helps.",
"title": ""
},
{
"docid": "acbae95606e012afa793a1d678fdec38",
"text": "I'm pretty sure you are don't actually plan to put £120,000 into a zero interest account, because when you take inflation into account, in 20 years, then £120,000 won't be worth anywhere near that amount. For its value to grow you need the interest rate to exceed the rate of inflation and so paying 20% (or even 40%) tax on the interest can make the difference between whether being richer and getting poorer.",
"title": ""
},
{
"docid": "2cd11f8d10fca96e0b515190f11ccc66",
"text": "I wouldn't go into a stock market related investment if you plan on buying a house in 4-5 years, you really need to tie money up in stocks for 10 years plus to be confident of a good return. Of course, you might do well in stocks over 4-5 years but historically it's unlikely. I'd look for a safe place to save some money for the deposit, the more deposit you can get the better as this will lower your loan to valuation (LTV) and therefore you may find you get a better interest rate for your mortgage. Regards the pension, are you paying the maximum you can into the company scheme? If not then top that up as much as you can, company schemes tend to be good as they have low charges, but check the documentation about that and make sure that is the case. Failing that stakeholder pension schemes can also have very low charges, have a look at what's available.",
"title": ""
}
] |
fiqa
|
f3618d57e13e6f553b7a925bf6b0ada7
|
Recent college grad. Down payment on a house or car?
|
[
{
"docid": "ee60151939fc8a15f134d44755e021c1",
"text": "$27,000 for a car?! Please, don't do that to yourself! That sounds like a new-car price. If it is, you can kiss $4k-$5k of that price goodbye the moment you drive it off the lot. You'll pay the worst part of the depreciation on that vehicle. You can get a 4-5 year old Corolla (or similar import) for less than half that price, and if you take care of it, you can get easily another 100k miles out of it. Check out Dave Ramsey's video. (It's funny that the car payment he chooses as his example is the same one as yours: $475! ;) ) I don't buy his take on the 12% return on the stock market (which is fantasy in my book) but buying cars outright instead of borrowing or (gasp) leasing, and working your way up the food chain a bit with the bells/whistles/newness of your cars, is the way to go.",
"title": ""
},
{
"docid": "9b62649799769028e783df7241b86e9b",
"text": "\"Given the state of the economy, and the potential of a rough near future for us recent grads (i.e. on/off work), I would recommend holding off on large purchases while your life is in flux. This includes both a NEW car and purchasing a house. My short answer is: you need a reliable vehicle, so purchase a used car, from a major dealer (yes this will add a fairly high premium, but easier financing), that is 4-5 years old, or more. Barring the major dealer purchase, be sure to get a mechanic to check out a vehicle, many will offer this service for a reasonable payment. As people point out, cars these days will run for another 100k miles. You will NOT have to pay anywhere near $27,000 for this vehicle. You may need to leverage your 10k for a loan if you choose to finance, but it should not be a problem, especially as you seem to imply an established credit history. In addition to this, start saving your money for the house you would like to eventually get. We have no idea where you live, but, picking rough numbers, assuming a 2 year buy period, 20% down, and a $250,000 home, the down payment alone will require you to save ~$2,000/month starting now. Barring either of these options, max out your money to tax sheltered accounts (your Roth IRA, work 401k, or a regular IRA) asap. Obviously, do not deplete your emergency fund, if anything, increase it. 10k can be burned through in a heartbeat. Long Answer: I purchased a brand new car, right out of school, at a reasonable interest rate. Like you, I can afford this vehicle, however, if someone were to come to me today (3.5 years later) and offer me the opportunity to take it back and purchase a 4-5 year used vehicle, at a 4-5 year used car price, albeit at a much higher interest rate (since I financed), it would be about a 0.02 second decision. I like my car, but, I'd like the differential cash savings between it and a reliable used car more. $27,000 is also fairly expensive for a new vehicle, there are many, very nice vehicles, for 21-23k. I still would not consider these priced appropriate to spend your money on them, but they exist. However, you do very much need a reliable vehicle, and I think you should get one. On the home front, your $400 all inclusive rent is insanely cheap. Many people spend more than that on property tax and PMI each year, so anyone who throws the \"\"You're throwing money away!\"\" line at you is blowing smoke to justify their own home purchase. Take the money you would have spent on a mortgage, and squirrel it away. Do your own due diligence and research the home market in your area and decide for yourself if you think home prices have bottomed and will stay there, have further to go, or are going to begin to rise. That is a decision only you can make for yourself. I'd add a section about getting expenses under control, but you said you could save 50% of your takehome pay. This is an order of magnitude above the average. Good job. Try doing 50% for 4 months, then calculate your actual amount. Then try to beat it.\"",
"title": ""
},
{
"docid": "8d280f9654cc7e6f9132494b19bc1d4f",
"text": "Not long after college in my new job I bought a used car with payments, I have never done that since. I just don't like having a car payment. I have bought every car since then with cash. You should never borrow money to buy a car There are several things that come into play when buying a car. When you are shopping with cash you tend to be more conservative with your purchases look at this Study on Credit card purchases. A Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash. And McDonald's found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash. I would bet you if you had $27,000 dollars cash in your hand you wouldn't buy that car. You'd find a better deal, and or a cheaper car. When you finance it, it just doesn't seem to hurt as bad. Even though it's worse because now you are paying interest. A new car is just insanity unless you have a high net worth, at least seven figures. Your $27,000 car in 5 years will be worth about $6500. That's like striking a match to $340 dollars a month, you can't afford to lose that much money. Pay Cash If you lose your job, get hurt, or any number of things that can cost you money or reduce your income, it's no problem with a paid for car. They don't repo paid for cars. You have so much more flexibility when you don't have payments. You mention you have 10k in cash, and a $2000 a month positive cash flow. I would find a deal on a 8000 - 9000 car I would not buy from a dealer*. Sell the car you have put that money with the positive cash flow and every other dime you can get at your student loans and any other debt you have, keep renting cheap keep the college lifestyle (broke) until you are completely out of debt. Then I would save for a house. Finally I would read this Dave Ramsey book, if I would have read this at your age, I would literally be a millionaire by now, I'm 37. *Don't buy from a dealer Find a private sale car that you can get a deal on, pay less than Kelly Blue Book. Pay a little money $50 - 75 to have an automotive technician to check it out for you and get a car fax, to make sure there are no major problems. I have worked in the automotive industry for 20 + years and you rarely get a good deal from a dealer. “Everything popular is wrong.” Oscar Wilde",
"title": ""
},
{
"docid": "8f7b37b3ab5986dbffeac01e38736a33",
"text": "Don't buy the new car. Buy a $15k car with $5k down and a 3 year loan and save up the rest for your car. A $500/mo car payment is nuts unless you're making alot of money. I've been there, and it was probably the dumbest decision that I have ever made. When you buy a house, you end up with all sorts of unexpected expenses. When you buy a house AND are stuck in a $500/mo payment, that means that those unexpected expenses end up on a credit card.",
"title": ""
},
{
"docid": "d177e5bd6dc03b1ea4340348efe98d92",
"text": "\"As a car guy, I wouldn't spend 27 large on anything that wasn't \"\"special\"\" - you'll be looking at for at least the duration of the loan and for me it'll better be very special lest I get bored with it during that time. But that's just me. If you want a transport appliance - spend around $5k-$7k on a decent used vehicle, pay it off within a couple of years or less and keep throwing money at your downpayment. Now if you have any student loan debt, buy a $3k car, learn how to fix it if necessary and pay off the millstone, err, student loan ASAP.\"",
"title": ""
},
{
"docid": "4bd6b94ca104beaee378478bb89e9716",
"text": "I'd suggest buying a used car for cash, car loans are a bad idea. I bought my last car a few years ago for $8k off of craigslist, and it is still running great. Make sure you get a car checked out by a mechanic before buying (usually they'll drop it off at a mechanic you want to have take a look, or perhaps just go with you). My general rule is to not take out loans for anything which decreases in value. So a home mortgage would be fine, a car loan is not a great plan. Buy cash, and save for the next purchase. If you buy a decent used Corolla (or other small import car), you can get it for $8k, it will likely last a few years at least. That could end up costing you less than $200 per month total, or less. Much better deal in the long run.",
"title": ""
},
{
"docid": "94ec729c39a0ce1c1e813fa20155dd7e",
"text": "That sounds like way too much for a car! I suggest you get a used car that only has a few years on it and is in mint condition. Not only are they cheaper to purchase, they are also the cheapest to insure.",
"title": ""
},
{
"docid": "751399e0e631d9deba48c25b9d4e5cfa",
"text": "When I was in that boat a few years ago, I went for the car first. My thoughts: If I get the car first, I'm guaranteed to have a car that runs well. That makes it more convenient to commute to any job, or for social functions. I ended up dropping about $20k into a car (paid cash, I don't like being in debt). I chose to buy a really nice car, knowing it will last for many years to come - I'm expecting to not replace it for about 10 years from the purchase. I would urge you to consider paying in full for the car; dumping $20k+ is a lot, and there are plenty of nice cars out there in the $10-20k range that will work just fine for years to come. One benefit of paying in full is that you don't have a portion of your income tied into the car loan. The main reason I chose not to go for the house first had more to do with the difference in commitment. A home mortgage is a 30-year commitment on a large chunk of your income. With the job market and housing markets both currently working against you, it's better to wait until you have a large safety net to fall into. For example, it's always recommended to have several months worth of living expenses in savings. Compared to renting, having 6 or more months of mortgage payments + utilities + insurance + property taxes + other mandatory expenses (see: food, gas) comes out to a significant amount more that you should have saved (for me, I'm looking at a minimum of about $20k in savings just to feel comfortable; YMMV). Also, owning a house always has more maintenance costs than you will predict. Even if it's just replacing a few light bulbs at first, eventually you'll need something major: an appliance will die, your roof will spring a leak, anything (I had both of those happen in the first year, though it could be bad luck). You should make sure that you can afford the increased monthly payments while still well under your income. Once you're locked in to the house, you can still set aside a smaller chunk of your income for a new car 5-10 years down the road. But if you're current car is getting down to it's last legs, you should get that fixed up before you lock yourself in to an uncomfortable situation. Don't be in too much of a hurry to buy a house. The housing market still has a ways to go before it recovers, and there's not a whole lot to help it along. Interest rates may go up, but that will only hurt the housing market, so I don't expect it to change too much for the next several months. With a little bit of sanity, we won't have another outrageous housing bubble for many years, so houses should remain somewhat affordable (interest rates may vary). Also keep in mind that if you pay less that 20% down on the house, you may end up with some form of mortgage interest, which is just extra interest you'll owe each month.",
"title": ""
},
{
"docid": "dea0beca5d6b4d30f2d160718895470e",
"text": "I generally agree with the sentiment in many other answers that $27K is more I would personally spend on a car if I were in your position. Having said that, the following assumes you are already intent on buying that car. Even if you change your mind, I think the general ideas still apply.",
"title": ""
},
{
"docid": "9d05584f82fe96e043702213bf3c41ea",
"text": "Buy a car. Unless you definitely know you are living in the area for a good long time, avoid buying a house and get a car instead.",
"title": ""
}
] |
[
{
"docid": "e61c4eefe4e13b331a8080a779818718",
"text": "Not really money related, but: how long are you going to be staying there? Once your wife graduates, would you be potentially moving to another area, or needing to move to be closer to where she works? If so, you might want to wait until after she graduates and you know where you'll be, before putting down money on large stationary items like houses.",
"title": ""
},
{
"docid": "60107ac23bd15c65c2221bab687a1a2b",
"text": "What are your goals in life? If one of them is to appear wealthy then buying a high price import is a great place to start. You certainly have the salary for it (congratulations BTW). If one of your goals is to build wealth, then why not buy a ~5000 to ~6000 car and have a goal to zero out that student loan by the end of the year? You can still contribute to your 401k, and have a nice life style living on ~60K (sending 30 to the student loan). Edit: I graduated with a CS degree in '96 and have been working in the industry since '93. When I started, demand was like it is now, rather insane. It probably won't always be like that and I would prepare for some ups and downs in the industry. One of the things that encouraged me to lead a debt free lifestyle happened in 2008. My employer cut salaries by 5%...no big deal they said. Except they also cut support pay, bonuses, and 401K matching. When the dust cleared my salary was cut 22%, and I was lucky as others were laid off. If you are in debt a 22% pay cut hurts bad.",
"title": ""
},
{
"docid": "b56ba9b16a6dfd5a08e1b0450ed6d876",
"text": "The house next door to the one I grew up in just sold for $45k. Just because they build bigger houses doesn't mean that you have to buy one. I'm sure my parents could have bought a much bigger house. Did you ever look into community college for core classes, I had many friends in college that go about 1/3 of their credits out of the way for about 1/4 the state college. College has always been expensive, it's nothing new. And a new car is a pretty idiot investment, a good education in an indemand field not so much. I was able to graduate debt free, but after a year of college was able to land jobs at more than 2x minimum wage. Remember, few unskilled people, mostly high school age are the ones earning minimum wage, [5.2%](http://www.bls.gov/cps/minwage2011.htm).",
"title": ""
},
{
"docid": "4b1cb0ad4e652985327450bce1e0935f",
"text": "There is no correct answer. It all depends on you. If you have a fund dedicated to a purpose (house, car, daycare, vacation, etc), in my opinion you are best served by keeping it dedicated to that function in most cases. Say that you find a home that you want to by in two years. If you have good credit and appropriate debt/income ratios, your car payment will not pose a problem to getting that home. But not having enough money for a down payment will.",
"title": ""
},
{
"docid": "ee6c38fd143f2637083b440ec48fbf01",
"text": "I like Nathan's answer some, but am horribly curious as to why you have not made payments on a $3500 student loan? If you are wealthy enough to afford a new car, this should be paid off next week. IMHO. Above all else your financial goals should dictate if you buy a new car. What are they for you? If the goal is to build wealthy quickly then Nathan's advice may be to unfrugal for you. If your goal is to impress people with the car you drive and accumulate very little real wealth then purchasing or leasing a car should be a top priority. So to answer your question correctly one must understand your goals. For 2016, the average car payment is $479 per month. If you invested that in a decent growth stock mutual fund in 40 years you'll have around 2.6 million. However, you do need something to drive now. If you can cut your car expense to $200 per month, and save the other $279 you will still end up with about 1.5 million in that same 40 years. Personally I attempt to shoot for $200 ownership cost per car per month. Its a bit difficult as I drive a lot. Also I would not purchase a new car until my net worth exceeded 2 million. At that point my investments could mitigate the steep depreciation costs of owning a new car.",
"title": ""
},
{
"docid": "4577731b949a0dece0a8ed46a0bc96d8",
"text": "\"I recently moved out from my parents place, after having built up sufficient funds, and gone through these questions myself. I live near Louisville, KY which has a significant effect on my income, cost of living, and cost of housing. Factor that into your decisions. To answer your questions in order: When do I know that I'm financially stable to move out? When you have enough money set aside for all projected expenses for 3-6 months and an emergency fund of 4-10K, depending on how large a safety net you want or need. Note that part of the reason for the emergency fund is as a buffer for the things you won't realize you need until you move out, such as pots or chairs. It also covers things being more expensive than anticipated. Should I wait until both my emergency fund is at least 6 months of pay and my loans in my parents' names is paid off (to free up money)? 6 months of pay is not a good measuring stick. Use months of expenses instead. In general, student loans are a small enough cost per month that you just need to factor them into your costs. When should I factor in the newer car investment? How much should I have set aside for the car? Do the car while you are living at home. This allows you to put more than the minimum payment down each month, and you can get ahead. That looks good on your credit, and allows refinancing later for a lower minimum payment when you move out. Finally, it gives you a \"\"sense\"\" of the monthly cost while you still have leeway to adjust things. Depending on new/used status of the car, set aside around 3-5K for a down payment. That gives you a decent rate, without too much haggling trouble. Should I get an apartment for a couple years before looking for my own house? Not unless you want the flexibility of an apartment. In general, living at home is cheaper. If you intend to eventually buy property in the same area, an apartment is throwing money away. If you want to move every few years, an apartment can, depending on the lease, give you that. How much should I set aside for either investment (apartment vs house)? 10-20K for a down payment, if you live around Louisville, KY. Be very choosy about the price of your house and this gives you the best of everything. The biggest mistake you can make is trying to get into a place too \"\"early\"\". Banks pay attention to the down payment for a good reason. It indicates commitment, care, and an ability to go the distance. In general, a mortgage is 30 years. You won't pay it off for a long time, so plan for that. Is there anything else I should be doing/taking advantage of with my money during this \"\"living at home\"\" period before I finally leave the nest? If there is something you want, now's the time to get it. You can make snap purchases on furniture/motorcycles/games and not hurt yourself. Take vacations, since there is room in the budget. If you've thought about moving to a different state for work, travel there for a weekend/week and see if you even like the place. Look for deals on things you'll need when you move out. Utensils, towels, brooms, furniture, and so forth can be bought cheaply, and you can get quality, but it takes time to find these deals. Pick up activities with monthly expenses. Boxing, dancing, gym memberships, hackerspaces and so forth become much more difficult to fit into the budget later. They also give you a better credit rating for a recurring expense, and allow you to get a \"\"feel\"\" for how things like a monthly utility bill will work. Finally, get involved in various investments. A 401k is only the start, so look at penny stocks, indexed funds, ETFs or other things to diversify with. Check out local businesses, or start something on the side. Experiment, and have fun.\"",
"title": ""
},
{
"docid": "76f84e708a51517019013542f87d9de6",
"text": "On paper the whole 6 months living costs sounds (and is) great, but in real life there are a lot of things that you need to consider. For example, my first car was constantly falling apart and was an SUV that got 16MPG. I have to travel for work (about 300 miles per week) so getting a sedan that averages close to 40MPG saves me more in gas and maintenance than the monthly payment for the new car costs. When our apartment lease was up, the new monthly rent would have been $1685 per month, we got a 30 year mortgage with a monthly payment of $1372. So buying a house actually let us put aside more each month. We have just under 3 months of living expenses set aside (1 month in liquid assets, 2 months in a brokerage account) and I worry about it. I wish we had a better buffer, but in our case the house and car made more sense as an early investment compared to just squirreling away all our savings. Also, do you have any debt? Paying off debt (student loans, credit card debt, etc.) should often take top priority. Have some rainy day funds, of course, but pay down debts, and then create a personal financial plan for what works best in your situation. That would be my suggestion.",
"title": ""
},
{
"docid": "ed5fb75f53cbfb9ec38c820ec74761d4",
"text": "I'd suggest waiting until a bit after you are married. To Eagle1's point, even $23,000 is not a huge sum of money. You didn't make any mention of a desire to buy a home, but if that becomes part of the plan, I'd want every cent of liquidity I can get. I wrote Student Loans and Your First Mortgage to explain why your buying power for the house is lowered by paying that loan. In your case, $5000 is 20% of $25000. For a good 20% down purchase, I'd want those funds available. You also don't mention retirement accounts. Depending on the home purchase timing, I'd start to think about putting aside at least the $5500 per year IRA/Roth IRA maximum.",
"title": ""
},
{
"docid": "8a9db923f5454f64bb4e44d06c74908f",
"text": "\"The loan is the loan, the down payment is not part of the loan. The principle amount owed on the loan at the beginning of the loan is the amount of the loan. If your loan amount is $390,000 then that's below the \"\"jumbo\"\" classification. Your down payment is irrelevant. Lenders may want or require 20% (or any other amount) down so the loan will meet certain \"\"loan to value\"\" ratio requirements. In the case of real estate the lenders in general want a 20% down side cushion before you're \"\"upside down\"\" (owe more than the home is worth). This is not unique to homes and is common in many secured lending instruments; like cars for example.\"",
"title": ""
},
{
"docid": "fcf95360f8338c753cdf113a0bb17793",
"text": "Buy a house when you can, but keep driving your current car until it dies. In ten years' time, a house should be worth more than you paid for it, while a new car will be worth next to nothing. And research shows that buying possessions like cars doesn't actually make you happier, even though you think it will.",
"title": ""
},
{
"docid": "1d1b257f29aaef270074323d88d51d45",
"text": "The good debt/bad debt paradigm only applies if you are considering this as a pure investment situation and not factoring in: A house is something you live in and a car is something you use for transportation. These are not substitutes for each other! While you can live in your car in a pinch, you can't take your house to the shops. Looking at the car, I will simplify it to 3 options: You can now make a list of pros and cons for each one and decide the value you place on each of them. E.g. public transport will add 5h travel time per week @ $X per hour (how much you value your leisure time), an expensive car will make me feel good and I value that at $Y. For each option, put all the benefits together - this is the value of that option to you. Then put all of the costs together - this is what the option costs you. Then make a decision on which is the best value for you. Once you have decided which option is best for you then you can consider how you will fund it.",
"title": ""
},
{
"docid": "63e5c9801550ba4a55aac9ededafef9e",
"text": "As a new graduate, aside from the fact that you seem to have the extra $193/mo to pay more towards your loan, we don't know anything else. I wrote a lengthy article on this in response to a friend who had a loan, but was also pondering a home purchase in the future. Student Loans and Your First Mortgage discusses the math behind one's ability to put a downpayment on a house vs having that monthly cash to pay towards the mortgage. In your case, the question is whether, in 5 years, the $8500 would be best spent as a home down payment or to pay off the 6.8% loan. If you specifically had plans toward home ownership, the timing of that plan would affect my answer here, as I discuss in the article. The right answer to your question can only come by knowing far more of your personal situation. Meanwhile, the plan comes at a cost. Your plan will get rid of the loan in about 5 years, but if you simply double up the payments, advising the servicing company to apply the extra to principal, it would drop to just a couple month over over 4. As you read more about personal finance, you'll find a lot of different views. Some people are fixated on having zero debt, others will focus on liquidity. In the end, you need to understand each approach and decide what's right for you.",
"title": ""
},
{
"docid": "67c1f9a423ceb1f692cfb733a892d559",
"text": "From personal experience (I financed a new car from the dealer/manufacturer within weeks of graduating, still on an F1-OPT):",
"title": ""
},
{
"docid": "2bf62c09fe325de41096aaf3e8b4b8f3",
"text": "\"Does your planning include contingencies for Can you afford the late fees, insurance increases, bad credit hits and all the other downsides when this goes bad? Why does she NEED a new car on lease? Personally? I'd go for option B) Do what it takes to have her OWN a car. Why not just have her get a car that costs IN ENTIRE the $3k that would be used for a down payment on a lease? Maybe add a bit of your own money \"\"for old times sake\"\" to the pile? Or a small loan to get to where she can get a usable, dependable car? Say, a $3-5k loan in your name that she's responsible for the payments. $3-10k can get a very dependable old car. 10 great cars for 6k or less Everyone else has been burned by her - for whatever reason. No idea what the reasons are, but she seems to be unable to pay her bills. Why would this time be any different? Your name on a car + someone who can't pay bills = a bad proposition. I would LOVE to help anyone who's been important in my life. Including MY x-wife. But I wouldn't agree to this deal unless I KNEW that I could 100% cover the costs when things go bad - because at this point, odds are they will.\"",
"title": ""
},
{
"docid": "d8a17e9673fda9e7ad31cebd8b86c853",
"text": "The key to becoming wealthy as a self-employed person is the drive to be successful. A driven person, who starts their own company (or companies, should they fail), will find success. Assuming that you define success as the accumulation of wealth, then yes, self-employment is correlated with wealth. But as matt mentions in the comments, there is no casual (in the statistical sense) relationship between self-employment and wealth. While I can't say for sure, I would argue that drive is more important that the employment situation.",
"title": ""
}
] |
fiqa
|
9e6a3212c8eb117cbb33e404dc5046a1
|
Protecting savings from exceptional taxes
|
[
{
"docid": "20e4a5eb388c4491e671bc71b905befc",
"text": "\"What EU wanted to force Cyprus to do is to break the insurance contract the government has with the bank depositors. The parliament rightfully refused, and it didn't pass. In the EU, and Cyprus as part of it, all bank deposits are insured up to 100,000EUR by the government. This is similar to the US FDIC insurance. Thus, requiring the \"\"small\"\" (up to 100K) depositors to participate in the bank reorganization means that the government breaks its word to people, and effectively defaults. That is exactly what the Cyprus government wanted to avoid, the default, so I can't understand why the idea even came up. Depositors of more than 100k are not guaranteed against bank failures, and indeed - in Cyprus these depositors will get \"\"haircuts\"\". But before them, first come shareholders and bondholders who would be completely wiped out. Thus, first and foremost, those who failed (the bank owners) will be the first to pay the price. However, governments can default. This happened in many places, for example in Russia in the 90's, in Argentina in 2000's (and in fact numerous times during the last century), the US in the 1930's, and many other examples - you can see a list in Wikipedia. When government defaults on its debts, it will not pay some or all of them, and its currency may also be devaluated. For example, in Russia in 1998 the currency lost 70% of its value against the USD within months, and much of the cash at hands of the public became worthless overnight. In the US in 1933 the President issued an executive order forbidding private citizens keeping gold and silver bullions and coins, which resulted in dollar devaluation by about 30% and investors in precious metals losing large amounts of money. The executive order requiring surrender of the Treasury gold certificates is in fact the government's failure to pay on these obligations. While the US or Russia control their own currency, European countries don't and cannot devaluate the currency as they wish in order to ease their debts. Thus in Euro-zone the devaluation solutions taken by Russia and the US are not possible. Cyprus cannot devaluate its currency, and even if it could - its external debt would not likely to be denominated in it (actually, Russian debt isn't denominated in Rubles, that's why they forced restructuring of their own debt, but devaluating the currency helped raising the money from the citizens similarly to the US seizing the gold in 1930's). Thus, in case of Cyprus or other Euro-zone countries, direct taxes is the only way to raise money from the citizens. So if you're in a country that controls its own currency (such as the US, Russia, Argentina, etc) and especially if the debt is denominated in that currency (mainly the US) - you should be worried more of inflation than taxes. But if you're in the Euro-zone and your country is in troubles (which is almost any country in the zone) - you can expect taxes. How to avoid that? Deal with your elected officials and have them fix your economy, but know that you can't just \"\"erase\"\" the debt through inflation as the Americans can (and will), someone will have to pay.\"",
"title": ""
},
{
"docid": "93bd1971ca0c84f2a6edc1cea926be7d",
"text": "Don't worry. The Cyprus situation could only occur because those banks were paying interest rates well above EU market rates, and the government did not tax them at all. Even the one-time 6.75% tax discussed is comparable to e.g. Germany and the Netherlands, if you average over the last 5 years. The simple solution is to just spread your money over multiple banks, with assets at each bank staying below EUR 100.000. There are more than 100 banks large enough that they'll come under ECB supervision this year; you'd be able to squirrel away over 10 million there. (Each branch of the Dutch Rabobank is insured individually, so you could even save 14 million there alone, and they're collectively AAA-rated.) Additionally, those savings will then be backed by more than 10 governments, many of which are still AAA-rated. Once you have to worry about those limits, you should really talk to an independent advisor. Investing in AAA government bonds is also pretty safe. The examples given by littleadv all involve known risky bonds. E.g. Argentina was on a credit watch, and paying 16% interest rates.",
"title": ""
},
{
"docid": "aface92198df28c3d0d1148bbc9a3571",
"text": "Over the last few years I've read quite a bit about monetary history. I've developed two very important rules from this study: If you follow these two rules you will be able to weather almost any governmental or banking crisis.",
"title": ""
}
] |
[
{
"docid": "eb0aaf07385a614da2199677cdbf2c77",
"text": "Look into the Coverdell Education Savings Account (ESA). This is like a Roth IRA for higher education expenses. Withdrawals are tax free when used for qualified expenses. Contributions are capped at $2000/year per beneficiary (not per account) so it works well for young kids, and not so well for kids about to go to College. This program (like all tax law) are prone to changes due to action (or inaction) in the US Congress. Currently, some of the benefits are set to sunset in 2010 though they are expected to be renewed in some form by Congress this year.",
"title": ""
},
{
"docid": "29079941bcf673433726120d468485ea",
"text": "If you have multiple accounts, you have to empty them all before you can deduct any losses. Your loss is not a capital loss, its a deduction. It is calculated based on the total amount you have withdrawn from all your Roth IRA's, minus the total basis. It will be subject to the 2% AGI treshhold (i.e.: if your AGI is > 100K, none of it is deductible, and you have to itemize to get it). Bottom line - think twice. Summarizing the discussion in comments: If you have a very low AGI, I would guess that your tax liability is pretty low as well. Even if you deduct the whole $2K, and all of it is above the other deductions you have (which in turn is above the standard deduction of almost $6K), you save say $300 if you're in 15% tax bracket. That's the most savings you have. However I'm assuming something here: I'm assuming that you're itemizing your deductions already and they're above the standard deduction. This is very unlikely, with such a low income. You don't have state taxes to deduct, you probably don't spend a lot to deduct sales taxes, and I would argue that with the low AGI you probably don't own property, and if you do - you don't have a mortgage with a significant interest on it. You can be in 15% bracket with AGI between (roughly) $8K and $35K, i.e.: you cannot deduct between $160 and $750 of the $2K, so it's already less than the maximum $300. If your AGI is $8K, the deduction doesn't matter, EIC might cover all of your taxes anyway. If your AGI is $30K, you can deduct only $1400, so if you're in the 15% bracket - you saved $210. That, again, assuming it's above your other deductions, which in turn are already above the standard deduction. Highly unlikely. As I said in the comments - I do not think you can realistically save on taxes because of this loss in such a manner.",
"title": ""
},
{
"docid": "0a9e5e503ff2d51c31561721478e15c2",
"text": "You can't max out your retirement savings. There are vehicles that aren't tax-advantaged that you can fund after you've exhausted the tax-advantaged ones. Consider how much you want to put into these vehicles. There are disadvantages as well as advantages. The rules on these can change at any time and can make it harder for you to get your money out. How's your liquid (cash) emergency fund? It sounds like you're in a position to amass a good one. Don't miss this opportunity. Save like crazy while you can. Kids make this harder. Paying down your mortgage will save you interest, of course, but make sure you're not cash-poor as a result. If something happens to your income(s), the bank will still foreclose on you even if you only owe $15,000. A cash cushion buys you time.",
"title": ""
},
{
"docid": "132ecb257ac4664dc0b3037828419962",
"text": "You should definitely favor holding bonds in tax-advantaged accounts, because bonds are not tax-efficient. The reason is that more of their value comes in the form of regular, periodic distributions, rather than an increase in value as is the case with stocks or stock funds. With stocks, you can choose to realize all that appreciation when it is most advantageous for you from a tax perspective. Additionally, stock dividends often receive lower tax rates. For much more detail, see Tax-efficient fund placement.",
"title": ""
},
{
"docid": "1a827f57147977cbd2526a8de675299a",
"text": "If your regular withholding is not enough to cover your tax due, then you can withhold extra taxes to avoid owing anything the following April 15. Alternatively, you may make estimated tax payments to avoid owing anything the following year. Some taxpayers will be required to make estimated payments, typically when the tax due will be sufficiently larger than the amount of withholding. If your husband says that you owed $5,000 in April, then he wants you both to withhold $2,500 for the entire year. If all your income is shared, then that makes sense. But if your income is not entirely shared and your personal luxury expenses come from your income, then this sounds a little unfair (you are paying some of the tax on his income). If you don't share 100% of your income, then he should withhold more extra than you do (something more like $2,700 for him and $2,300 for you, depending on the details). If you share everything, then all the income and all the taxes are shared so the individual accounting matters little. Yes, if you overpay taxes, you may get a refund. Do not do this, that's just an interest-free loan to the government. Instead, put the extra money into a savings account of your choice and withdraw it whenever you want.",
"title": ""
},
{
"docid": "95e90433ef39fdd56ddc0a47483bb000",
"text": "Keep in mind that chasing after tax savings tends to not be a good way of saving money. What is a good strategy? Making sure that you take all the deductions you are entitled to. What is a bad strategy: You asked for a book recommendation. The problem is that I don't know of any books that cover all these topics. Also keep in mind that all books, blogs, articles, and yes answers to questions have a bias. Sometimes the bias can be ignored, other times it can't. Just keep looking for information on this site, and ask good specific questions about these topics.",
"title": ""
},
{
"docid": "c60dde0bae237546b457df7b10b7b21c",
"text": "Ditto @MichaelBorgwardt Just to get concrete: I just checked one bank in India and they say they are paying 4% on savings accounts. I don't know what you're getting or if 4% is typical in India, but it's at least an example. So if the bank pays interest based on average daily balance, and you left the money in the bank for a week, you'd get 4%/52 = .077%. So on Rs 95,000 that would be Rs 73. I live in the US where typical interest on a savings account today is about 1%. So an equivalent amount of money -- I think that would be about $1,500 -- would get 1/52 of 1%, or 29 cents. Don't leave the lights turned on while you do the calculations -- you'll spend more on the electricity than you make on the interest. :-) ** Addendum ** This suddenly reminds me ... I read a news story a few years ago about a man who was expecting a tax refund check from the IRS of a few hundred dollars, and when the check arrived it was for several million. Well obviously it was a mistake. But he came up with the clever idea: Deposit the check in an interest-bearing account. Promptly contact the IRS, inform them of the mistake, and ask how and where to go about returning the money. Hope that it takes at least a few days for them to figure everything out. Then keep the interest accumulated on the several-million dollars for the time that he had the money. And as he contacted them immediately about the error, they can't say he was trying to hide anything. It was a nice try, but it didn't work. They demanded he send them the interest as well as the principle.",
"title": ""
},
{
"docid": "068bed5880ce9e76d2f629508242671d",
"text": "You might want to bring this fancy new IRS rule to your employer's attention. If your employer sets it up, an After-Tax 401(k) Plan allows employees to contribute after-tax money above the $18k/year limit into a special 401(k) that allows deferral of tax on all earnings until withdrawal in retirement. Now, if you think about it, that's not all that special on its own. Since you've already paid tax on the contribution, you could imitate the above plan all by yourself by simply investing in things that generate no income until the day you sell them and then just waiting to sell them until retirement. So basically you're locking up money until retirement and getting zero benefit. But here's the cool part: the new IRS rule says you can roll over these contributions into a Roth 401(k) or Roth IRA with no extra taxes or penalties! And a Roth plan is much better, because you don't have to pay tax ever on the earnings. So you can contribute to this After-Tax plan and then immediately roll over into a Roth plan and start earning tax-free forever. Now, the article I linked above gets some important things slightly wrong. It seems to suggest that your company is not allowed to create a brand new 401(k) bucket for these special After-Tax contributions. And that means that you would have to mingle pre-tax and post-tax dollars in your existing Traditional 401(k), which would just completely destroy the usefulness of the rollover to Roth. That would make this whole thing worthless. However, I know from personal experience that this is not true. Your company can most definitely set up a separate After-Tax plan to receive all of these new contributions. Then there's no mingling of pre-tax and post-tax dollars, and you can do the rollover to Roth with the click of a button, no taxes or penalties owed. Now, this new plan still sits under the overall umbrella of your company's total retirement plan offerings. So the total amount of money that you can put into a Traditional 401(k), a Roth 401(k), and this new After-Tax 401(k) -- both your personal contributions and your company's match (if any) -- is still limited to $53k per year and still must satisfy all the non-discrimination rules for HCEs, etc. So it's not trivial to set up, and your company will almost certainly not be able to go all the way to $53k, but they could get a lot closer than they currently do.",
"title": ""
},
{
"docid": "3ed949c726920255e6c945d8db1f3e72",
"text": "\"Your #1 problem is the Government both in it's form as a taxation outfit and as a 'law and order' outfit. You'd be very surprised at how fast a bank seizes your bank account in response to a court order. Purchase 100 Mexican 50 Peso Gold (1.2 oz/ea). These coins are cheap (lowest cost to get into) and will not be reportable on sale to taxing authorities. That money is out of the banking system and legal system(s). Do not store them in a bank! You need to find a tax strategist, probably a former IRS agent / CPA type. With the rest remaining money... There's an old saying, Don't fight the Fed. As well as \"\"The trend is your friend\"\". So, the Fed wants all savers fully invested right now (near 0 interest rates). When investing, I find that if you do exactly opposite what you think is the smart thing, that's the best thing. Therefore, it follows: 1) Don't fight the Fed 2) Do opposite of smart 3) Do: Fight the Fed (and stay 100% out of the market and in cash) We're looking like Japan so could remain deflationary for decades to come. Cash is king...\"",
"title": ""
},
{
"docid": "085e2dffab276a036853dd071ebe34cc",
"text": "\"Offset against taxable gains means that the amount - $25 million in this case - can be used to reduce another sum that the company would otherwise have to pay tax on. Suppose the company had made a profit of $100 million on some other investments. At some point, they are likely to have to pay corporation tax on that amount before being able to distribute it as a cash dividend to shareholders. However if they can offset the $25 million, then they will only have to pay tax on $75 million. This is quite normal as you usually only pay tax on the aggregate of your gains and losses. If corporation tax is about 32% that would explain the claimed saving of approximately $8 million. It sounds like the Plaintiffs want the stock to be sold on the market to get that tax saving. Presumably they believe that distributing it directly would not have the same effect because of the way the tax rules work. I don't know if the Plaintiffs are right or not, but if they are the difference would probably come about due to the stock being treated as a \"\"realized loss\"\" in the case where they sell it but not in the case where they distribute it. It's also possible - though this is all very speculative - that if the loss isn't realised when they distribute it directly, then the \"\"cost basis\"\" of the shareholders would be the price the company originally paid for the stock, rather than the value at the time they receive it. That in turn could mean a tax advantage for the shareholders.\"",
"title": ""
},
{
"docid": "671a7c03188d20ca748faab01b5e0b28",
"text": "Asset protection is broad subject. In your examples it is certainly possible to have accounts that exist undisclosed from a spouse and legally inaccessible by said spouse. In the US, balances in 401k retirement accounts are exempt from forfeitures in bankruptcy. The only trick to secret stashes is that it involves you having any wealth in the first place, that you don't need to access. It is more worth it, for most people, to use all of their access to wealth to get out of debt, earn claims to property, and save for retirement. This takes up all of their earnings, making hidden wealth of any significant portion to be an impractical pipe dream. But with trust laws, corporate laws, and marriage property laws being different in practically every jurisdiction, there is plenty of flexibility to construct the form of your secret wealth. Cryptocurrency makes it much easier, at the expense of net asset value volatility.",
"title": ""
},
{
"docid": "9261b5cc8faec072e234aace913f48c3",
"text": "@BlackJack does a good answer of addressing the gains and when you are taxed on them and at what kind of rate. Money held in a brokerage account will usually be in a money-market fund, so you would own taxes on the interest it earned. There is one important consideration that must be understood for capitol Losses. This is called the Wash Sale Rule. This rule comes into affect if you sell a stock at a LOSS, and buy shares of the same stock within 30 days (before or after) the sale. A common tactic used to minimize taxes paid is to 'capture losses' when they occur, since these can be used to offset gains and lower your taxes. This is normally done by selling a stock in which you have a LOSS, and then either buying another similar stock, or waiting and buying back the stock you sold. However, if you are intending to buy back the same stock, you must not 'trigger' the Wash Sale Rule or you are forbidden to take the loss. Examples. Lets presume you own 1000 shares of a stock and it's trading 25% below where you bought it, and you want to capture the loss to use on your taxes. This can be a very important consideration if trading index ETF's if you have a loss in something like a S&P500 ETF, you would likely incur a wash sale if you sold it and bought a different S&P500 ETF from another company since they are effectively the same thing. OTOH, if you sold an S&P500 ETF and bought something like a 'viper''total stock market' ETF it should be different enough to not trigger the wash sale rule. If you are trying to minimize the taxes you pay on stocks, there are basically two rules to follow. 1) When a gain is involved, hold things at least a year before selling, if at all possible. 2) Capture losses when they occur and use to offset gains, but be sure not to trigger the wash sale rule when doing so.",
"title": ""
},
{
"docid": "17c82c8934c11cba29787c4df49b7d52",
"text": "In a comment on this answer you asked It's not clear to me why the ability to defer the gains would matter (since you never materially benefit until you actually sell) but the estate step up in basis is a great point! Could you describe a hypothetical exploitive scenario (utilizing a wash sale) in a little more detail? This sounds like you still have the same question as originally, so I'll take a stab at answering with an example. I sell some security for a $10,000 profit. I then sell another security at a $10,000 loss and immediately rebuy. So pay no taxes (without the rule). Assuming a 15% rate, that's $1500 in savings which I realize immediately. Next year, I sell that same security for a $20,000 profit over the $10,000 loss basis (so a $10,000 profit over my original purchase). I sell and buy another security to pay no taxes. In fact, I pay no taxes like this for fifty years as I live off my investments (and a pension or social security that uses up my tax deductions). Then I die. All my securities step up in basis to their current market value. So I completely evade taxes on $500,000 in profits. That's $75,000 in tax savings to make my heirs richer. And they're already getting at least $500,000 worth of securities. Especially consider the case where I sell a privately held security to a private buyer who then sells me back the same shares at the same price. Don't think that $10,000 is enough? Remember that you also get the original value. But this also scales. It could be $100,000 in gains as well, for $750,000 in tax savings over the fifty years. That's at least $5 million of securities. The effective result of this would be to make a 0% tax on capital gains for many rich people. Worse, a poorer person can't do the same thing. You need to have many investments to take advantage of this. If a relatively poor person with two $500 investments tried this, that person would lose all the benefit in trading fees. And of course such a person would run out of investments quickly. Really poor people have $0 in investments, so this is totally impractical.",
"title": ""
},
{
"docid": "bd6eecc9738b213f4a0e3ccc7411900f",
"text": "You have two different operations going on: They each have of a set of rules regarding amounts, timelines, taxes, and penalties. The excess money can't be recharacterized except during a specific window of time. I would see a tax professional to work through all the details.",
"title": ""
},
{
"docid": "a17f801749c61e70721be29bae27a51d",
"text": "There is the underpayment penalty, and of course the general risk of any balloon-style loan. While you think that you have enough self-discipline, you never know what may happen that may prevent you from having enough cash at hands to pay the accumulated tax at the end of the year. If you try to do more risky investments (trying to maximize the opportunity) you may lose some of the money, or have some other kind of emergency that may preempt the tax payment.",
"title": ""
}
] |
fiqa
|
5cc29a12bfa375a85bc9a5bf6db146ef
|
Does high frequency trading provide economic value?
|
[
{
"docid": "07cf897e53c911848657e7b6a68ecaca",
"text": "\"This is a very important question and you will find arguments from both sides, in part because it is still understudied. Ben Golub, Economics Ph.D., from Stanford answers \"\"Is high-frequency trading good for the economy?\"\" on Quoram quite well. This is an important but understudied question. There are few published academic studies on it, though several groups are working on the subject. You may be interested in the following papers: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1569067 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1361184 These document some of the phenomena that arise in high frequency trading, from a theoretical and an empirical perspective. However, a full equilibrium analysis of the unique features of high frequency trading is still missing, and until it is done, all our answers will be kind of tentative. Nevertheless, there are some obvious things one can say. Currently, high frequency traders are competing to locate physically closer and closer to exchanges, because milliseconds matter. Thus, large amounts of money are being spent to beat other market makers by tiny fractions of a second. Once many firms make these investments, the market looks like it did before in terms of competition and prices, but is a tiny bit faster. This investment is unlikely to be socially efficient: that is, the users of the market don't actually benefit from the fact that their trades are executed half a millisecond faster -- certainly not enough to cover all the investment that went into making that happen. Some people who study the issue believe that high frequency trading (HFT) actually exacerbates market volatility; some plots to this effect are found in the second paper linked above. There is certainly no widely accepted theory that says faster trading technology necessarily increases efficiency, and it is easy to think of algorithms that can make money (at least in the short run) but hurt most other investors, as well as the informational value of the market. One caution is that some of the complaining about HFT comes from those who lose when HFT gets better -- old-style market makers. They certainly have an incentive to make HFT out to be very bad. So some complaints about the predatory nature of HFT should be taken with a grain of salt. There is no strong economic consensus about the value of this activity. For what it's worth, my personal impression is that this is more bad than good. I'll post an update here as more definitive research comes out. You can also find a debate on High-frequency trading from the Economist which gives both sides of the argument. In conclusion: Regardless of how you feel about HFT it seems like it's here to stay and won't be leaving in the foreseeable future. So the debate will rage on... Additional resource you may finding interesting: Europe Begins Push To Ban HFT High Frequency Trading Discussion On CNBC Should High Frequency Trading (HFT) be banned ?\"",
"title": ""
},
{
"docid": "9202657a6d8efb57f44a9dcbda756d63",
"text": "You pointed out that HFT does not create ipods are mine minerals. Neither does human trading. HFT is a proxy for human trading. Although the computer is executing trades automatically based on an algorithm, it is still using money from a human being's account so the trading is still being done with someone's money. Fast execution of trades is desirable in exchanges. Imagine two exchanges: One only executes trades once a month, the other executes trades once a week. Which exchange would be more desirable? The exchange that trades once a week. Why? Because if I'm holding a stock that I would like to sell, I want to sell it now - not a month from now. Same reason for buying. This concept works all the way down to seconds and fractions of seconds. The issue with HFT, however, is there are cases where the market goes against the HFT algorithm and the algorithm continues to execute trades driving prices up or down by large amounts in the matter of minutes or even seconds. The exchange frequently cancels these trades which only encourages more aggressive HFT trading since HFT traders can have their losses cancelled. This is a privilege that LFTs (low frequency traders) do not receive. This is a valid criticism of HFTs. A short list of such cancelled trades: 8/26/2010: Nasdaq cancels trades of CORE stock 10/4/2010: Nasdaq cancels trades of CENX stock 10/15/2010: NYSE cancels trades of PAY stock 10/18/2010: NYSE cancels $500 million worth of SPY trades 5/18/2011: NYSE cancels 15,900 trades of BEE.PR.C 6/21/2011: Nasdaq cancels CNTY trades 12/2/2011: London Metals Exchange cancel trades of copper",
"title": ""
}
] |
[
{
"docid": "dcf6b3771ad03916adfe08e2982cd346",
"text": "\"An answer can be found in my book, \"\"A Modern Approach to Graham and Dodd Investing,\"\" p. 89 http://www.amazon.com/Modern-Approach-Graham-Investing-Finance/dp/0471584150/ref=sr_1_1?s=books&ie=UTF8&qid=1321628992&sr=1-1 \"\"If a company has no sustained cash flow over time, it has no value...If a company has positive cash flow but economic earnings are zero or less, it has a value less than book value and is a wasting asset. There is enough cash to pay interim dividends, bu the net present value of the dividend stream is less than book value.\"\" A company with a stock trading below book value is believed to be \"\"impaired,\"\" perhaps because assets are overstated. Depending on the situation, it may or may not be a bankruptcy candidate.\"",
"title": ""
},
{
"docid": "3acf275d77964f6b617beee49dcc0d64",
"text": "There are those who would suggest that due to the Efficient Market Hypothesis, stocks are always fairly valued. Consider, if non-professional posters on SE (here) had a method that worked beyond random chance, everyone seeking such a method would soon know it. If everyone used that method, it would lose its advantage. In theory, this is how stocks' values remain rational. That said, Williams %R is one such indicator. It can be seen in action on Yahoo finance - In the end, I find such indicators far less useful than the news itself. BP oil spill - Did anyone believe that such a huge oil company wouldn't recover from that disaster? It recovered by nearly doubling from its bottom after that news. A chart of NFLX (Netflix) offers a similar news disaster, and recovery. Both of these examples are not quantifiable, in my opinion, just gut reactions. A quick look at the company and answer to one question - Do I feel this company will recover? To be candid - in the 08/09 crash, I felt that way about Ford and GM. Ford returned 10X from the bottom, GM went through bankruptcy. That observation suggests another question, i.e. where is the line drawn between 'investing' and 'gambling'? My answer is that buying one stock hoping for its recovery is gambling. Being able to do this for 5-10 stocks, or one every few months, is investing.",
"title": ""
},
{
"docid": "291ef739389b414110b5d02538f9e616",
"text": "\"I think, the top three answers by Joe, Anthony and Bigh are giving you all the detail that you need on a technical sense. Although I would like to add a simple picture that underlines, that you can not really compare day trading to long-term trading and that the addictive and psychologic aspect that you mentioned can not be taken out of consideration. The long term investor is like someone buying a house for investment. You carefully look at all offers on the market. You choose by many factors, price, location, quality, environment, neighborhood and extras. After a long research, you pick your favorites and give them a closer look until you finally choose the object of desire, which will pay off in 10 years and will be a wise investment in your future. Now this sounds like a careful but smart person, who knows what he wants and has enough patience to have his earnings in the future. The short term investor is like someone running into the casino for a game of black-jack, roulette or poker. He is a person that thinks he has found the one and only formula, the philosopher's stone, the money-press and is seeking immense profits in just one night. And if it does not work, he is sure, that this was just bad coincidence and that his \"\"formula\"\" is correct and will work the next night. This person is a pure gambler and running the risk of becoming addicted. He is seeking quick and massive profits and does not give up, even though he knows, that the chances of becoming a millionaire in a casino are quite unrealistic and not better than playing in a lottery. So if you are a gamer, and the profit is less important than the \"\"fun\"\", then short term is the thing for you. If you are not necessarily seeking tons of millions, but just want to keep your risk of loss to a minimum, then long term is your way to go. So it is a question of personality, expectations and priorities. The answer why losses are bigger on high frequency signals is answered elsewhere. But I am convinced in reality it is a question of what you want and therefore very subjective. I have worked for both. I have worked for a portfolio company that has gone through periods of ups and downs, but on the long term has made a very tempting profit, which made me regret, that I did not ask for shares instead of money as payment. These people are very calm and intelligent people. They spend all their time investigating and searching for interesting objects for their portfolio and replace losers with winners. They are working for your money and investors just relax and wait. This has a very serious taste to it and I for my part would always prefer this form of investment. I have worked for an investment broker selling futures. I programmed the account management for their customers and in all those years I have only seen one customer that made the million. But tons of customers that had made huge losses. And this company was very emotional, harsh, unpersonal - employees changing day by day, top sellers coming in corvettes. All the people working there where gamblers, just like their customers. Well, it ended one day, when the police came and confiscated all computers from them, because customers have complained about their huge losses. I am glad, that I worked as a remote developer for them and got paid in money and not in options. So both worlds are so different from each other. The chances for bigger profits are higher on day trading, but so are the chances for bigger losses - so it is pure gambling. If you like gambling, split your investment: half in long term and other half in short term, that is fun and wise in one. But one thing is for sure: in over ten years, I have seen many customers loosing loads of money in options in the future markets or currencies. But I have never seen anyone making a loss in long term portfolio investment. There have been hard years, where the value dropped almost 30%, but that was caught up by the following years, so that the only risk was minimizing the profit.\"",
"title": ""
},
{
"docid": "13ecea7d2cec3c6c0b9e80e181a53a71",
"text": "HFT is a controversial issue and there are smart people with very different opinions on it. You sound like your confidence in your own opinion is not matched with a deep knowledge of market structure. Also, front running has a technical meaning, and what you are referring to as front running is something different.",
"title": ""
},
{
"docid": "f68f47fbd9b39e55236bab0b0720c9dd",
"text": "Don't like HFT? Use a stock exchange or dealer network that only allows manually entered trades. I hope readers are not convinced by this article to support the enactment of regulations that prevent people from using HFT. Maybe he's right and HFT is detrimental (which I doubt), but this is something that should be decided by the free market.",
"title": ""
},
{
"docid": "941aef807b75234d032142cb464d03de",
"text": "\"Not really. High frequency traders affect mainly short term investors. If everyone invested long-term and traded infrequently, there would be no high frequency trading. For a long term investor, you by at X, hold for several years, and sell at Y. At worst, high frequency trading may affect \"\"X\"\" and \"\"Y\"\" by a few pennies (and the changes may cancel out). For a long term trader that doesn't amount to a \"\"hill of beans\"\" It is other frequent traders that will feel the loss of those \"\"pennies.\"\"\"",
"title": ""
},
{
"docid": "c28eb69add00010b45511f54bf8ebe0e",
"text": "\"Maria, there are a few questions I think you must consider when considering this problem. Do fundamental or technical strategies provide meaningful information? Are the signals they produce actionable? In my experience, and many quantitative traders will probably say similar things, technical analysis is unlikely to provide anything meaningful. Of course you may find phenomena when looking back on data and a particular indicator, but this is often after the fact. One cannot action-ably trade these observations. On the other hand, it does seem that fundamentals can play a crucial role in the overall (typically long run) dynamics of stock movement. Here are two examples, Technical: suppose we follow stock X and buy every time the price crosses above the 30 day moving average. There is one obvious issue with this strategy - why does this signal have significance? If the method is designed arbitrarily then the answer is that it does not have significance. Moreover, much of the research supports that stocks move close to a geometric brownian motion with jumps. This supports the implication that the system is meaningless - if the probability of up or down is always close to 50/50 then why would an average based on the price be predictive? Fundamental: Suppose we buy stocks with the best P/E ratios (defined by some cutoff). This makes sense from a logical perspective and may have some long run merit. However, there is always a chance that an internal blowup or some macro event creates a large loss. A blended approach: for sake of balance perhaps we consider fundamentals as a good long-term indication of growth (what quants might call drift). We then restrict ourselves to equities in a particular index - say the S&P500. We compare the growth of these stocks vs. their P/E ratios and possibly do some regression. A natural strategy would be to sell those which have exceeded the expected return given the P/E ratio and buy those which have underperformed. Since all equities we are considering are in the same index, they are most likely somewhat correlated (especially when traded in baskets). If we sell 10 equities that are deemed \"\"too high\"\" and buy 10 which are \"\"too low\"\" we will be taking a neutral position and betting on convergence of the spread to the market average growth. We have this constructed a hedged position using a fundamental metric (and some helpful statistics). This method can be categorized as a type of index arbitrage and is done (roughly) in a similar fashion. If you dig through some data (yahoo finance is great) over the past 5 years on just the S&P500 I'm sure you'll find plenty of signals (and perhaps profitable if you calibrate with specific numbers). Sorry for the long and rambling style but I wanted to hit a few key points and show a clever methods of using fundamentals.\"",
"title": ""
},
{
"docid": "d7e580929c80c1a59673b0da603501aa",
"text": "In the short term the market is a popularity contest In the short run which in value investing time can extend even to many years, an equity is subject to the vicissitudes of the whims by every scale of panic and elation. This can be seen by examining the daily chart of any large cap equity in the US. Even such large holdings can be affected by any set of fear and greed in the market and in the subset of traders trading the equity. Quantitatively, this statement means that equities experience high variance in the short rurn. in the long term [the stock market] is a weighing machine In the long run which in value investing time can extend to even multiple decades, an equity is more or less subject only to the variance of the underlying value. This can be seen by examining the annual chart of even the smallest cap equities over decades. An equity over such time periods is almost exclusively affected by its changes in value. Quantitatively, this statement means that equities experience low variance in the long run.",
"title": ""
},
{
"docid": "e27b4d067c78c5636685afe87425080c",
"text": "No. The long-term valuation of currencies has to do with Purchasing Power Parity. The long-term valuation of stocks has to do with revenues, expenses, market sizes, growth rates, and interest rates. In the short term, currency and stock prices change for many reasons, including interest rate changes, demand for goods and services, asset price changes, political fears, and momentum investing. In any given time window, a currency or stock might be: The Relative Strength Index tries to say whether a currency or stock has recently been rising or falling; it does not inherently say anything about whether the current value is high or low.",
"title": ""
},
{
"docid": "89940e315a6cc1493916b85e348e62eb",
"text": "In my experience thanks to algorithmic trading the variation of the spread and the range of trading straight after a major data release will be as random as possible, since we live in an age that if some pattern existed at these times HFT firms would take out any opportunity within nanoseconds. Remember that some firms write algorithms to predict other algorithms, and it is at times like those that this strategy would be most effective. With regards to my own trading experience I have seen orders fill almost €400 per contract outside of the quoted range, but this is only in the most volatile market conditions. Generally speaking, event investing around numbers like these are only for top wall street firms that can use co-location servers and get a ping time to the exchange of less than 5ms. Also, after a data release the market can surge/plummet in either direction, only to recover almost instantly and take out any stops that were in its path. So generally, I would say that slippage is extremely unpredictable in these cases( because it is an advantage to HFT firms to make it so ) and stop-loss orders will only provide limited protection. There is stop-limit orders( which allow you to specify a price limit that is acceptable ) on some markets and as far as I know InteractiveBrokers provide a guaranteed stop-loss fill( For a price of course ) that could be worth looking at, personally I dont use IB. I hope this answer provides some helpful information, and generally speaking, super-short term investing is for algorithms.",
"title": ""
},
{
"docid": "daff22609d39d7ef7c465090f1d9b402",
"text": "\"Are you talking long-term institutional or retail investors? Long-term *retail* investors look for *orderly markets*, the antithesis of HFT business models, which have a direct correlation between market volatility and profits. To a lesser extent, some \"\"dumb money\"\"/\"\"muppet\"\" institutionals do as well. HFT firms tout they supply liquidity into markets, when in fact the opposite is true. Yes, HFTs supply liquidity, *but only when the liquidity's benefits runs in their direction*. That is, they are applying the part of the liquidity definition that mentions \"\"high trading activity\"\", and conveniently ignoring the part that simultaneously requires \"\"*easily* buying *or* selling an asset\"\". If HFT's are the new exchange floor, then they need to be formalized as such, *and become bound to market maker responsibilities*. If they are actually supplying liquidity, like real Designated Market Makers in the NYSE for example, they become responsible to supply a specified liquidity for specified ticker symbols in exchange for their informational advantage on those tickers. The indisputable fact is that HFT cannot exist at their current profit levels without the information advantage they gain with preferential access to tick-by-tick data unavailable to investors who cannot afford the exchange fees ($1M per exchange 10 years ago, more now). Restrict the entire market, including HFTs, to only second-by-second price data without the tick-by-tick depth, and they won't do so well. Don't get me wrong, I'm not knocking HFTs *per se*; I think they are a marvelous development, so long as they really do \"\"supply liquidity\"\". Right now, they aren't doing so, and especially in an orderly manner. If you want retail investors to keep out of the water as they are doing now, by all means let HFT (and regulatory capture, and a whole host of other financial service industry ills) run as they are. There are arguments to be made about \"\"only let the professionals play the market\"\", where there is no role for retail and anyone who doesn't know how to play the long-term investment game needs to get out of the kitchen. But if you are making such an argument, come out and say so.\"",
"title": ""
},
{
"docid": "1d9157558f778c26156143f17b8efa30",
"text": "Yes, but it must be remembered that these conditions only last for instants, and that's why only HFTs can take advantage of this. During 2/28/14's selloff from the invasion of Ukraine, many times, there were moments where there was overwhelming liquidity on the bid relative to the ask, but the price continued to drop.",
"title": ""
},
{
"docid": "27c4e69d2f392f68687ad026b2b9ae91",
"text": "The stock market's principal justification is matching investors with investment opportunities. That's only reasonably feasible with long-term investments. High frequency traders are not interested in investments, they are interested in buying cheap and selling expensive. Holding reasonably robust shares for longer binds their capital which is one reason the faster-paced business of dealing with options is popular instead. So their main manner of operation is leeching off actually occuring investments by letting the investors pay more than the recipients of the investments receive. By now, the majority of stock market business is indirect and tries guessing where the money goes rather than where the business goes. For one thing, this leads to the stock market's evaluations being largely inflated over the actual underlying committed deals happening. And as the commitment to an investment becomes rare, the market becomes more volatile and instable: it's money running in circles. Fast trading is about running in front of where the money goes, anticipating the market. But if there is no actual market to anticipate, only people running before the imagination of other people running before money, the net payout converges to zero as the ratio of serious actual investments in tangible targets declines. By and large, high frequency trading converges to a Ponzi scheme, and you try being among the winners of such a scheme. But there are a whole lot of people competing here, and essentially the net payoff is close to zero due to the large volumes in circulation as opposed to what ends up in actual tangible investments. It's a completely different game with different rules riding on the original idea of a stock market. So you have to figure out what your money should be doing according to your plans.",
"title": ""
},
{
"docid": "50451e2cbef427cc3c98fa671d73052a",
"text": "> Stock markets are supposed to be about investment and providing capital to companies for operations and research. High frequency trading is only about gaming the market and nothing else. Arguments that this provides more capital or liquidity don't make any sense because the speed of trading is such that listed companies cannot take advantage and only high frequency traders are served. I used to feel this way about derivatives but a commentator on reddit disabused me of that notion - http://www.reddit.com/r/Entrepreneur/comments/11bqnk/what_you_wont_see_on_the_front_page_of_reddit_the/c6lnqow If the only function of the stock market is investment and provide capital to companies, why have a secondary market at all?",
"title": ""
},
{
"docid": "f01516ef052e1c21bf289ad223b08b6a",
"text": "> I no longer have the fantasy belief that I can do better managing my money than professional investors The pension fund probably lost about as much as your investments did, but they still had to pay out as if they were meeting their targets. I understand you weren't really offered a choice between a higher salary or a pension, so my observation is academic, but to me it just seems strange to believe that a company can pay you a fixed sum of money 30 years in the future. Maybe it's just a generational thing but the whole idea of investing (figuratively) your entire future in a single company doesn't make sense to me. I actually think it's good in the long run that we're moving away from the work at one company your entire life model. Companies shouldn't be in the business of providing retirement benefits any more than they should healthcare plans, IMO.",
"title": ""
}
] |
fiqa
|
209521d60a20c2c0a3eb0692619577c6
|
The Asset Allocation Paradox
|
[
{
"docid": "5356ba20ab62d86c8a3508d557ea4cbb",
"text": "Asset Allocation serves many purposes, not just mitigating risk via a diversification of asset classes, but also allowing you to take a level of risk that is appropriate for a given investor at a given time by how much is allocated to which asset classes. A younger investor with a longer timeframe, may wish to take a lot more risk, investing heavily in equities, and perhaps managed funds that are of the 'aggressive growth' variety, seeking better than market returns. Someone a little older may wish to pull back a bit, especially after a bull market has brought them substantial gains, and begin to 'take money off the table' perhaps by starting to establish some fixed income positions, or pulling back to slightly less risky index, 'value' or 'balanced' funds. An investor who is near or in retirement will generally want even less risk, going to a much more balanced approach with half or more of their investments in fixed income, and the remainder often in income producing 'blue chip' type stocks, or 'income funds'. This allows them to protect a good amount of their wealth from potential loss at a time when they have to be able to depend on it for a majority of their income. An institution such as Yale has very different concerns, and may always be in a more aggressive 'long term' mode since 'retirement' is not a factor for them. They are willing to invest mostly in very aggressive ways, using diversification to protect them from one of those choices 'tanking' but still overall taking a pretty high level of risk, much more so than might be appropriate for an individual who will generally need to seek safety and to preserve gains as they get older. For example look at the PDF that @JLDugger linked, and observe the overall risk level that Yale is taking, and in addition observe the large allocations they make to things like private equity with a 27%+ risk level compared to their very small amount of fixed income with a 10% risk level. Yale has a very long time horizon and invests in a way that is atypical of the needs and concerns of an individual investor. They also have as you pointed out, the economy of scale (with something like #17B in assets?) to afford to hire proven experts, and their own internal PHD level experts to watch over the whole thing, all of which very few individual investors have. For either class of investor, diversification, is a means to mitigate risk by not having all your eggs in one basket. Via having multiple different investments (such as picking multiple individual stocks, or aggressive funds with different approaches, or just an index fund to get multiple stocks) you are protected from being wiped out as might happen if a single choice might fail. For example imagine what would have happened if you had in 2005 put all your money into a single stock with a company that had been showing record profits such as Lehman Brothers, and left it there until 2008 when the stock tanked. or even faster collapses such as Enron, etc that all 'looked great' up until shortly after they failed utterly. Being allocated across multiple asset classes provides some diversification all on it's own, but you can also be diversified within a class. Yale uses the diversification across several asset classes to have lower risk than being invested in a single asset class such as private equity. But their allocation places much more of their funds in high risk classes and much less of their funds in the lowest risk classes such as fixed income.",
"title": ""
},
{
"docid": "846d367583fbcb6cd2fabd6e2d9345f9",
"text": "\"I recommend you take a look at this lecture (really, the whole series is enlightening), from Swenson. He identifies 3 sources of returns: diversification, timing and selection. He appears to discard timing and selection as impossible. A student kinda calls him out on this. Diversification reduces risk, not increase returns. It turns out they did time the market, by shorting .com's before the bubble, and real estate just before the downturn. In 1990, Yale started a \"\"Absolute Return\"\" unit and allocated like 15 percent to it, mostly by selling US equities, that specializes in these sorts of hedging moves. As for why you might employ managers for specific areas, consider that the expense ratio Wall Street charges you or me still represent a very nice salary when applied to the billions in Yale's portfolio. So they hire internally to reduce expenses, and I'm sure they're kept busy. They also need people to sell off assets to maintain ratios, and figuring out which ones to sell might take specialized knowledge. Finally, in some areas, you functionally cannot invest without management. For example, Yale has a substantial allocation in private equity, and by definition that doesn't trade on the open market. The other thing you should consider is that for all its diversification, Yale lost 25 percent of their portfolio in 2009. For a technique that's supposed to reduce volatility, they seem to have a large range of returns over the past five years.\"",
"title": ""
}
] |
[
{
"docid": "ef0e9ae89d9c52b31c87383d6b21d9af",
"text": "Financial advisers like to ask lots of questions and get nitty-gritty about investment objectives, but for the most part this is not well-founded in financial theory. Investment objectives really boils down to one big question and an addendum. The big question is how much risk you are willing to tolerate. This determines your expected return and most characteristics of your portfolio. The addendum is what assets you already have (background risk). Your portfolio should contain things that hedge that risk and not load up on it. If you expect to have a fixed income, some extra inflation protection is warranted. If you have a lot of real estate investing, your portfolio should avoid real estate. If you work for Google, you should avoid it in your portfolio or perhaps even short it. Given risk tolerance and background risk, financial theory suggests that there is a single best portfolio for you, which is diversified across all available assets in a market-cap-weighted fashion.",
"title": ""
},
{
"docid": "ea037e297eea30bc449f3febfb1d4090",
"text": "\"When you have multiple assets available and a risk-free asset (cash or borrowing) you will always end up blending them if you have a reasonable objective function. However, you seem to have constrained yourself to 100% investment. Combine that with the fact that you are considering only two assets and you can easily have a solution where only one asset is desired in the portfolio. The fact that you describe the US fund as \"\"dominating\"\" the forign fund indicates that this may be the case for you. Ordinarily diversification benefits the overall portfolio even if one asset \"\"dominates\"\" another but it may not in your special case. Notice that these funds are both already highly diversified, so all you are getting is cross-border diversification by getting more than one. That may be why you are getting the solution you are. I've seen a lot of suggested allocations that have weights similar to what you are using. Finding an optimal portfolio given a vector of expected returns and a covariance matrix is very easy, with some reliable results. Fancy models get pretty much the same kinds of answers as simple ones. However, getting a good covariance matrix is hard and getting a good expected return vector is all but impossible. Unfortunately portfolio results are very sensitive to these inputs. For that reason, most of us use portfolio theory to guide our intuition, but seldom do the math for our own portfolio. In any model you use, your weak link is the expected return and covariance. More sophisticated models don't usually help produce a more reasonable result. For that reason, your original strategy (80-20) sounds pretty good to me. Not sure why you are not diversifying outside of equities, but I suppose you have your reasons.\"",
"title": ""
},
{
"docid": "01ca7a270f24ca65876327fe39ebc516",
"text": "\"John Bensin's answer covers the math, but I like the plain-English examples of the theory from William Bernstein's fine book, The Intelligent Asset Allocator. At the author's web site, you can find the complete chapter 1 and chapter 2, though not chapter 3, which is the one with the \"\"multiple coin toss\"\" portfolio example I want to highlight. I'll summarize Bernstein's multiple coin toss example here with some excerpts from the book. (Another top user, @JoeTaxpayer, has also written about the coin flip on his blog, also mentioning Bernstein's book.) Bernstein begins Chapter 1 by describing an offer from a fictitious \"\"Uncle Fred\"\": Imagine that you work for your rich but eccentric Uncle Fred. [...] he decides to let you in on the company pension plan. [...] you must pick ahead of time one of two investment choices for the duration of your employment: Certificates of deposit with a 3% annualized rate of return, or, A most peculiar option: At the end of each year Uncle Fred flips a coin. Heads you receive a 30% investment return for that year, tails a minus 10% (loss) for the year. This will be hereafter referred to as \"\"Uncle Fred’s coin toss,\"\" or simply, the \"\"coin toss.\"\" In effect, choosing option 2 results in a higher expected return than option 1, but it is certainly riskier, having a high standard deviation and being especially prone to a series of bad tosses. Chapters 1 and 2 continue to expand on the idea of risk, and take a look at various assets/markets over time. Chapter 3 then begins by introducing the multiple coin toss example: Time passes. You have spent several more years in the employ of your Uncle Fred, and have truly grown to dread the annual coin-toss sessions. [...] He makes you another offer. At the end of each year, he will divide your pension account into two equal parts and conduct a separate coin toss for each half [...] there are four possible outcomes [...]: [...] Being handy with numbers, you calculate that your annualized return for this two-coin-toss sequence is 9.08%, which is nearly a full percentage point higher than your previous expected return of 8.17% with only one coin toss. Even more amazingly, you realize that your risk has been reduced — with the addition of two returns at the mean of 10%, your calculated standard deviation is now only 14.14%, as opposed to 20% for the single coin toss. [...] Dividing your portfolio between assets with uncorrelated results increases return while decreasing risk. [...] If the second coin toss were perfectly inversely correlated with the first and always gave the opposite result [hence, outcomes 1 and 4 above never occurring], then our return would always be 10%. In this case, we would have a 10% annualized long-term return with zero risk! I hope that summarizes the example well. Of course, in the real world, one of the tricks to building a good portfolio is finding assets that aren't well-correlated, and if you're interested in more on the subject I suggest you check out his books (including The Four Pillars of Investing) and read more about Modern Portfolio Theory (MPT).\"",
"title": ""
},
{
"docid": "04fc25149b5028e4a34d26e562cedb73",
"text": "\"I have a similar situation -- five different accounts between me and my wife. Just as you and @Alex B describe, I maintain my asset allocation across the combination of all accounts. I also maintain a spreadsheet to track the targets, deviations from the targets, amounts required to get back in balance, and overall performance. I (mostly) don't use mutual funds. I have selected, for each category, 1 or 2 ETFs. Choosing index ETFs with low expense ratios and a brokerage with cheap or free trades keeps expenses low. (My broker offers free ETF trades if you buy off their list as long as you aren't short-term trading; this is great for rebalancing for free 2 or 3 times a year.) Using ETFs also solves the minimum balance problem -- but watch out for commissions. If you pay $10 to buy $500 worth of an ETF, that's an immediate 2% loss; trade a couple of times a year and that ETF has to gain 5% just to break even. One issue that comes up is managing cash and avoiding transaction fees. Say your IRA has all the growth stock funds and your Roth has the bonds. Stocks do well and bonds do poorly, so you sell off some stocks, which creates a bunch of cash in your IRA. Now you want to buy some bonds but you don't have enough cash in your Roth, so you buy the bonds in your IRA. Not a problem at first but if you don't manage it you can end up with small amounts of various funds spread across all of your accounts. If you're not careful you can end up paying two commissions (in two different accounts) to sell off / purchase enough of a category to get back to your targets. Another problem I had is that only one account (401k) is receiving deposits on a regular basis, and that's all going into an S&P 500 index fund. This makes it so that my allocation is off by a fair amount every quarter or so -- too much in large cap equities, not enough of everything else. My solution to this going forward is to \"\"over-rebalance\"\" a couple of times a year: sell enough SPY from my other accounts so that I'm under-allocated in large caps by the amount I expect to add to my 401k over the next 3 months. (So that in six months at my next rebalancing I'm only 3 months over-allocated to large caps -- plus or minus whatever gains/losses there are.)\"",
"title": ""
},
{
"docid": "740de5afea45123d65bdc09bc1208f1b",
"text": "\"Yes, the \"\"based on\"\" claim appears to be true – but the Nobel laureate did not personally design that specific investment portfolio ;-) It looks like the Gone Fishin' Portfolio is made up of a selection of low-fee stock and bond index funds, diversified by geography and market-capitalization, and regularly rebalanced. Excerpt from another article, dated 2003: The Gone Fishin’ Portfolio [circa 2003] Vanguard Total Stock Market Index (VTSMX) – 15% Vanguard Small-Cap Index (NAESX) – 15% Vanguard European Stock Index (VEURX) – 10% Vanguard Pacific Stock Index (VPACX) – 10% Vanguard Emerging Markets Index (VEIEX) – 10% Vanguard Short-term Bond Index (VFSTX) – 10% Vanguard High-Yield Corporates Fund (VWEHX) – 10% Vanguard Inflation-Protected Securities Fund (VIPSX) – 10% Vanguard REIT Index (VGSIX) – 5% Vanguard Precious Metals Fund (VGPMX) – 5% That does appear to me to be an example of a portfolio based on Modern Portfolio Theory (MPT), \"\"which tries to maximize portfolio expected return for a given amount of portfolio risk\"\" (per Wikipedia). MPT was introduced by Harry Markowitz, who did go on to share the 1990 Nobel Memorial Prize in Economic Sciences. (Note: That is the economics equivalent of the original Nobel Prize.) You'll find more information at NobelPrize.org - The Prize in Economics 1990 - Press Release. Finally, for what it's worth, it isn't rocket science to build a similar portfolio. While I don't want to knock the Gone Fishin' Portfolio (I like most of its parts), there are many similar portfolios out there based on the same concepts. For instance, I'm reminded of a similar (though simpler) portfolio called the Couch Potato Portfolio, made popular by MoneySense magazine up here in Canada. p.s. This other question about asset allocation is related and informative.\"",
"title": ""
},
{
"docid": "8f5425400aa00739f218859eaffbd248",
"text": "\"The argument you are making here is similar to the problem I have with the stronger forms of the efficient market hypothesis. That is if the market already has incorporated all of the information about the correct prices, then there's no reason to question any prices and then the prices never change. However, the mechanism through which the market incorporates this information is via the actors buying an selling based on what they see as the market being incorrect. The most basic concept of this problem (I think) starts with the idea that every investor is passive and they simply buy the market as one basket. So every paycheck, the index fund buys some more stock in the market in a completely static way. This means the demand for each stock is the same. No one is paying attention to the actual companies' performance so a poor performer's stock price never moves. The same for the high performer. The only thing moving prices is demand but that's always up at a more or less constant rate. This is a topic that has a lot of discussion lately in financial circles. Here are two articles about this topic but I'm not convinced the author is completely serious hence the \"\"worst-case scenario\"\" title. These are interesting reads but again, take this with a grain of salt. You should follow the links in the articles because they give a more nuanced understanding of each potential issue. One thing that's important is that the reality is nothing like what I outline above. One of the links in these articles that is interesting is the one that talks about how we now have more indexes than stocks on the US markets. The writer points to this as a problem in the first article, but think for a moment why that is. There are many different types of strategies that active managers follow in how they determine what goes in a fund based on different stock metrics. If a stocks P/E ratio drops below a critical level, for example, a number of indexes are going to sell it. Some might buy it. It's up to the investors (you and me) to pick which of these strategies we believe in. Another thing to consider is that active managers are losing their clients to the passive funds. They have a vested interest in attacking passive management.\"",
"title": ""
},
{
"docid": "3ff6f273e82d001cb5990f389e723ced",
"text": "\"The reason that UltraLong funds and the like are bad isn't because of the leverage ratio. It's because they're compounded daily, and the product of all the doubled daily returns is not mathematically equivalent to the double the long-term return. I'd consider providing big fancy equations using uppercase pi as the 'product of elements in a sequence' operator and other calculus fanciness, but that would be overkill, I don't think I can do TeX here, and I don't know the relevant TeX anyway. Anyway. From the economics theory perspective, the ideal leverage ratio is 1X - that is, unlevered, straight investment. Consider: Using leverage costs money. You know that, surely. If someone could borrow money at N% and invest at an expected N+X%, where X > 0, then they would. They would borrow all the money they could and buy all the S&P500 they could. But when they bought all that S&P500, they'd eventually run out of people who were willing to sell it for that cheap. That would mean the excess return would be smaller. Eventually you'd get to a point where the excess return is... zero? .... well, no, empirically, we can see that it's definitely not zero, and that in the real world that stocks do return more than bonds. Why? Because stocks are riskier than bonds. The difference in expected return between an index like the S&P500 and a US Treasury bond is due to the relative riskiness of the S&P500, which isn't guaranteed by the US Government to return your principal. Any money that you make off of leverage comes from assuming some sort of a risk. Now, assuming risk can be a profitable thing to do, but there are also a lot of people out there with higher risk tolerance than you, like insurance companies and billionaires, so the market isn't exactly short of people willing to take risks, and you shouldn't expect the returns of \"\"assuming risk\"\" in the general case to be qualitatively awesome. Now, it's true that investing in an unlevered fashion is risky also. But that's not an excuse to go leveraged anyway; it's a reason to hold back. In fact, regular stocks are sufficiently risky that most people probably shouldn't be holding a 100% stock portfolio. They should be tempering that risk with bonds, instead, and increasing the size of their bond holdings over time. The appropriate time to use leverage is when you have information which limits your risk. You have done research, and have reason to believe that you understand the future of an individual stock/index better than the rest of the stock market does. You calculate that the potential for achieving returns with leverage outweighs the risks. Then you dump your money into the leveraged position. (In exchange for this, the market receives information about anticipated future returns of this instrument, because of the price movement which occurs as a result of someone putting his money where his mouth is.) If you're just looking to dump money into broad market indicies in a leveraged fashion, you're doing it wrong. There is no free money. (Ed. Which is not to say there's not money. There's lots of money. But if you go looking for the free kind, you won't find it, and may end up with money that you thought was free but was actually quite expensive.) Edit. Okay, so you don't like my answer. I'm not surprised. I'm giving you a real answer instead of a \"\"make free money\"\" answer. Okay. Here's your \"\"how to make free money\"\" answer. Assume you are using a constant leverage ratio over the length of time you've invested your money, and you don't get to just jump into and out of the market (that's market-timing, not leverage) so you have to stay invested. You're going to have a scenario which falls into one of these categories: The S&P500 historically rises over time. The average rate of return probably exceeds the average interest rate. So the ideal leverage ratio is infinite. Of course, this is a stupid answer in real life because you can't pull that off. Your risk tolerance is too low and you will have trouble finding a lender willing to lend you unsecured money, and you'll probably lose all your money in a crash sooner or later. Ultimately it's a stupid answer because you're asking the wrong question. You should probably ask a better question: \"\"when I use leverage to gain additional exposure to risk, am I being properly compensated for assuming that risk?\"\"\"",
"title": ""
},
{
"docid": "70591461ef9fce7e7b32b7b259bf14f6",
"text": "The quant aspect '''''. This is the kind of math I was wondering if it existed, but now it sounds like it is much more complex in reality then optimizing by evaluating different cost of capital. Thank you for sharing",
"title": ""
},
{
"docid": "a8ae0bc20cdc126b60553272d13fc94a",
"text": "\"In economics, there is a notion called the Sunk Cost Fallacy. In a nutshell, the sunk cost fallacy says that human beings tend to prefer to \"\"throw good money after bad\"\" because of a strong loss aversion. That, coupled with how we frame an issue, makes it very tempting to say, \"\"if I just add these funds, I'll recoup my loss plus...\"\" In reality, the best best is to ignore sunk costs. (I know, far easier said than done, but bear with me a second.) How much you've invested is really irrelevant. The only question worth asking is this: \"\"Would I invest this money in the asset today?\"\" Put it this way - any money you spend on \"\"rescuing\"\" this upside mortgage is an investment that trades ready funds for a little more equity. Knowing that the mortgage is $100K in excess of the value, why buy that asset? If you could do a HARP, different story - but as you say, you can't. As such, buying into that investment is not the best use of your funds. You are throwing good money after bad. Invest your money where it will earn the best rate of return - not where your heart lead you.\"",
"title": ""
},
{
"docid": "f3b46a3bcf094f4b1063d750d505eb04",
"text": "From Vanguard's Best practices for portfolio rebalancing:",
"title": ""
},
{
"docid": "379fd084a7b1339e70292490902c9a36",
"text": "I don't see a contrast. It's really hard to predict which mutual funds will do well in the future. Predicting that ones which have done well recently will continue to do well works slightly better than chance. The WSJ article and Morningstar agree on all the objective facts, they just spin them differently.",
"title": ""
},
{
"docid": "dfe7cdcbff23350b408f12110c75cf4c",
"text": "Funds can't limit themselves to a small number of stocks without also limiting themselves to a small amount of total investment. I think 25 companies is too small to be practical from their point of view.",
"title": ""
},
{
"docid": "fe9921a7843fe5fe58cfc9155f83a271",
"text": "\"Modern portfolio theory dramatically underestimates the risk of the recommended assets. This is because so few underlying assets are in the recommended part of the curve. As investors identify such assets, large amounts of money are invested in them. This temporarily reduces measured risk, and temporarily increases measured return. Sooner or later, \"\"the trade\"\" becomes \"\"crowded\"\". Eventually, large amounts of money try to \"\"exit the trade\"\" (into cash or the next discovered asset). And so the measurable risk suddenly rises, and the measured return drops. In other words, modern portfolio theory causes bubbles, and causes those bubbles to pop. Some other strategies to consider:\"",
"title": ""
},
{
"docid": "44fa918fa226a914a48c0e624bff32a8",
"text": "The commenters who referred you to the prisoner's dilemma are exactly correct, but I wanted to give a more detailed explanation because I find game theory quite interesting. The prisoner's dilemma is a classic scenario in game theory where even though it's in the best interests of two or more players to cooperate, they fail to do so. Wikipedia has a simple example using prisoners, but I'll use a simple example using Fidel and Charles, who are fund managers at Fidelity and Charles Schwab, respectively. To make the table shorter, I abbreviated a bit: INC = increase fees, KEEP=keep fees the same, DEC=decrease fees. Here is the dilemma itself, in the table that shows the resulting market shares if each fund manager follows the course of action in question. While this example isn't mathematically rigorous because I completely fabricated the numbers, it makes a good example. The most profitable course of action would be both fund managers agreeing to increase their fees, which would keep their market shares the same but increase their profits as they earn more fees. However, this won't happen for several reasons. Because economies of scale exist in the market for investment funds, it's reasonable to assume in a simple example that as funds grow larger, their costs decrease, so even though a fund manager decreases his fees (betraying the other players), this decrease won't be enough to reduce their profits. In fact, the increased market share resulting from such a decrease may well dominate the decreased fees and lead to higher profits. The prisoner's dilemma is highly applicable to markets such as these because they exist as oligopolies, i.e. markets where a relatively small number of established sellers possess considerable market power. If you actually wanted to model the market for donor-advised funds using game theory, you need to take a few more things into account. Obviously there are more than two firms. It's probably a valid assumption that the market is an oligopoly with significant economies of scale, but I haven't researched this extensively. There is more than one time period, so some form of the iterated prisoner's dilemma is needed. The market for donor-advised funds is also complicated by the fact that these are philanthropic funds. This may introduce tax implications or the problem of goodwill and institutional opinion of these funds. Although both funds increasing their fees may increase their profits in theory, institutional investors may look on this as a pure profit-seeking and take their funds elsewhere. For example, they may choose to invest in smaller funds with higher fees but better reputations. While reputation is important for any company, it might make more of a difference when the fund/investment vehicle is philanthropic in nature. I am by no means an expert on game theory, so I'm sure there are other nuances to the situation that I'm unaware of.",
"title": ""
},
{
"docid": "4bcf742236b389607116bcb989ce60fa",
"text": "absolutely $SPY ETF is the way to go if your point of comparison is the S&P and you want to do low maintenance.",
"title": ""
}
] |
fiqa
|
5223b34614533466fb83c7fac0b0c495
|
Accepting high volatility for high long-term returns
|
[
{
"docid": "073cb8a7fb44788cd73b350958d3e45c",
"text": "\"This is basically what financial advisers have been saying for years...that you should invest in higher risk securities when you are young and lower risk securities when you get older. However, despite the fact that this is taken as truth by so many financial professionals, financial economists have been unable to formulate a coherent theory that supports it. By changing the preferences of their theoretical investors, they can get solutions like putting all your investments in a super safe asset until you get to a minimum survival level for retirement and then investing aggressively and many other solutions. But for none of the typically assumed preferences does investing aggressively when young and becoming more conservative as you near retirement seem to be the solution. I'm not saying there can be no such preferences, but the difficulty in finding them makes me think maybe this idea is not actually correct. Couple of problems with your intuition that you should think about: It's not clear that things \"\"average out\"\" over time. If you lose a bunch of money in some asset, there's no reason to think that by holding that asset for a while you will make back what you lost--prices are not cyclical. Moreover, doesn't your intuition implicitly suggest that you should transition out of risky securities as you get older...perhaps after having lost money? You can invest in safe assets (or even better, the tangency portfolio from your graph) and then lever up if you do want higher risk/return. You don't need to change your allocation to risky assets (and it is suboptimal to do so--you want to move along the CAL, not the curve). The riskiness of your portfolio should generally coincide (negatively) with your risk-aversion. When you are older and more certain about your life expectancy and your assets, are you exposed to more or less risks? In many cases, less risks. This means you would choose a more risky portfolio (because you are more sure you will have enough to live on until death even if your portfolio takes a dive). Your actual portfolio consists both of your investments and your human capital (the present value of your time and skills). When you are young, the value of this capital changes significantly with market performance so you already have background risk. Buying risky securities adds to that risk. When you are old, your human capital is worth little, so your overall portfolio becomes less risky. You might want to compensate by increasing the risk of your investments. EDIT: Note that this point may depend on how risky your human capital is (how likely it is that your wage or job prospects will change with the economy). Overall the answer to your question is not definitively known, but there is theoretical evidence that investing in risky securities when young isn't optimal. Having said that, most people do seem to invest in riskier securities when young and safer when they are older. I suspect this is because with life experience people become less optimistic as they get older, not because it is optimal to do so. But I can't be sure.\"",
"title": ""
},
{
"docid": "cc3b53420f83deaefdcd21bacc9b616d",
"text": "Modern portfolio theory has a strong theoretical background and its conclusions on the risk/return trade-off have a lot of good supporting evidence. However, the conclusions it draws need to be used very carefully when thinking about retirement investing. If you were really just trying to just pick the one investment that you would guess would make you the most money in the future then yes, given no other information, the riskiest asset would be the best one. However, for most people the goal retirement investing is to be as sure as possible to retire comfortably. If you were to just invest in a single, very risky asset you may have the highest expected return, but the risk involved would mean there might be a good chance you money may not be there when you need it. Instead, a broad diversified basket of riskier and safer assets leaning more toward the riskier investments when younger and the safer assets when you get closer to retirement tends to be a better fit with most people's retirement goals. This tends to give (on average) more return when you are young and can better deal with the risk, but dials back the risk later in life when your investment portfolio is a majority of your wealth and you can least afford any major swings. This combines the lessons of MPT (diversity, risk/return trade-off) in a clearer way with common goals of retirement. Caveat: Your retirement goals and risk-tolerance may be very different from other peoples'. It is often good to talk to (fee-only) financial planner.",
"title": ""
},
{
"docid": "fe9921a7843fe5fe58cfc9155f83a271",
"text": "\"Modern portfolio theory dramatically underestimates the risk of the recommended assets. This is because so few underlying assets are in the recommended part of the curve. As investors identify such assets, large amounts of money are invested in them. This temporarily reduces measured risk, and temporarily increases measured return. Sooner or later, \"\"the trade\"\" becomes \"\"crowded\"\". Eventually, large amounts of money try to \"\"exit the trade\"\" (into cash or the next discovered asset). And so the measurable risk suddenly rises, and the measured return drops. In other words, modern portfolio theory causes bubbles, and causes those bubbles to pop. Some other strategies to consider:\"",
"title": ""
}
] |
[
{
"docid": "67f1c7c53edae7785bd1600b725bbafc",
"text": "When volatility is higher, the option is more likely to end up in-the-money. Moreover, when it ends up in-the-money, it is likely to be over the strike price by a greater amount. Consider a call option. With high volatility, moves in the stock price are big - both up moves and down moves. If the stock moves up by a lot, the call option holder will benefit greatly. On the other hand, when the stock moves down, below a certain point the option holder does not care how big a down move the stock has. His downside is limited. Hence, the value of the option is increased by high volatility. I know everyone who searches this is looking for this answer. Bump so people are able to get this concept instead of looking all over the web for it.",
"title": ""
},
{
"docid": "c49bd44e7d3b0a7175b32dfd136e5cd2",
"text": "\"Let me see if I can restate your question: are speculative investments more volatile (subject to greater spikes and drops in pricing) than are more long-term investments which are defined by the predictability of their dividend returns? The short answer is: yes. However, where it gets complicated is in deciding whether something is a speculative investment. Take your example of housing. People who buy a house as an investment either choose to rent it out (so receive \"\"rent\"\" as \"\"dividend\"\") or live in it (foregoing dividends). Either way, the scale of the investment is large and this is often the only direct investment that people manage themselves. For this reason houses are bound up in the sentimental value people attach to a home, the difficulty of uprooting and moving elsewhere in search of cheaper housing or better employment, or the sunk cost of debt that can't be recovered by a fire-sale. Such inertia can lead to sudden sell-offs as critical inflection points are reached (such as hoped-for economic improvements fail to materialise and cash needs become critical). At different levels that is true of just about every investment. Driving price-volatility is the ease of sale and the trade-offs involved. A share that offers regular and dependable dividends, even if its absolute value falls, is going to be hung on to more frequently than those shares that suffer a similar decline but only offer a capital gain. For the latter, the race is on to sell before the drop neutralises any remaining capital gain the investor may have experienced. A house with a good tenant or a share with stable dividends will be kept in preference for the quick cash-return of selling an asset that offers no such ongoing returns. This would result, visually, in more eratic curves for \"\"speculative\"\" shares while more stable shares are characterised by periods of stability interspersed with moments of mania. But I have to take your query further, since you provide graphical evidence to support your thesis. Your charts combine varying time-scales, different sample rates and different scales (one of which is even a log scale). It becomes impossible to draw any sort of meaningful micro-comparison unless they're all presented using exactly the same criteria.\"",
"title": ""
},
{
"docid": "3a16e38607c9d834e9d46ff63df423c5",
"text": "No I get that. But if you don’t want risk, then buy bonds. Long term an S&P Index has very low risk. On the other hand, actively managed funds have fees that take out a ton of the gain that could be had. I don’t have time to look for the study but I read recently that 97% of actively managed funds were outperformed by S&P Indexes after fees. Now I don’t know about you but I think the risk of not picking a top 3% fund is probably higher than the safe return of index’s.",
"title": ""
},
{
"docid": "d1791a006cbced74f19d94ae64a7dc2e",
"text": "Since near-term at-the-money (ATM) options are generally the most liquid, the listed implied vol for a stock is usually pretty close to the nearest ATM volatility, but there's not a set convention that I'm aware of. Also note that for most stocks, vol skew (the difference in vol between away-from-the-money and at-the-money options) is relatively small, correct me if I'm wrong, IV is the markets assessment that the stock is about 70% likely (1 Standard Deviation) to move (in either direction) by that percent over the next year. Not exactly. It's an annualized standard deviation of the anticipated movements over the time period of the option that it's implied from. Implied vol for near-term options can be higher or lower than longer-term options, depending on if the market believes that there will be more uncertainty in the short-term. Also, it's the bounds of the expected movement in that time period. so if a stock is at $100 with an implied vol of 30% for 1-year term options, then the market thinks that the stock will be somewhere between $70 and $130 after 1 year. If you look at the implied vol for a 6-month term option, half of that vol is the range of expected movement in 6 months.",
"title": ""
},
{
"docid": "3f9e5de579b5f93a6f62a45d4bce105d",
"text": "\"You should establish a strategy -- eg a specific mix of investments/funds which has the long-term tradeofv of risk, returns, and diversification you want -- and stick to that strategy, rebalancing periodically to maintain your strategic ratios betwedn those investments. Yes, that means you will somettimes sell things that have been doing well and buy others that have been doing less well -- but that's to be expected; it's exactly what happens when you \"\"buy low, sell high\"\".\"",
"title": ""
},
{
"docid": "e3cc2326e8fa93452b5c41bfe54f0584",
"text": "Right now, the unrealized appreciation of Vanguard Tax-Managed Small-Cap Fund Admiral Shares is 28.4% of NAV. As long as the fund delivers decent returns over the long term, is there anything stopping this amount from ballooning to, say, 90% fifty years hence? I'd have a heck of a time imagining how this grows to that high a number realistically. The inflows and outflows of the fund are a bigger question along with what kinds of changes are there to capital gains that may make the fund try to hold onto the stocks longer and minimize the tax burden. If this happens, won't new investors be scared away by the prospect of owing taxes on these gains? For example, a financial crisis or a superior new investment technology could lead investors to dump their shares of tax-managed index funds, triggering enormous capital-gains distributions. And if new investors are scared away, won't the fund be forced to sell its assets to cover redemptions (even if there is no disruptive event), leading to larger capital-gains distributions than in the past? Possibly but you have more than a few assumptions in this to my mind that I wonder how well are you estimating the probability of this happening. Finally, do ETFs avoid this problem (assuming it is a problem)? Yes, ETFs have creation and redemption units that allow for in-kind transactions and thus there isn't a selling of the stock. However, if one wants to pull out various unlikely scenarios then there is the potential of the market being shut down for an extended period of time that would prevent one from selling shares of the ETF that may or may not be as applicable as open-end fund shares. I would however suggest researching if there are hybrid funds that mix open-end fund shares with ETF shares which could be an alternative here.",
"title": ""
},
{
"docid": "a22dc88fd01f8f0f81bf8091d8020c80",
"text": "Can't totally agree with that. Volatility trading is just one trading type of many. In my opinion it doesn't depend on whether you are a professional trader or not. As you might have heard, retail traders are said to create 'noise' on the market, mainly due to the fact that they aren't professional in their majority. So, I would assume, if an average retail trader decided to trade volatility he would create as much noise as if would have been betting on stock directions. Basically, most types of trading would require a considerable amount of effort spent on fundamental analysis of the underlying be it volatility or directional trading. Arbitrage trading would be an exception here, I guess. However, volatility trading relies more on trader's subjective expectations about future deviations, whereas trading stock directions requires deeper research of the underlying. Is it a drawback or an advantage? I.d.k. On the other hand-side volatility trading strategies cover both upward and downward movements, but you can set similar hedging strategies when going short or long on stocks, isn't it? To summarise, I think it is a matter of preference. Imagine yourself going long on S&P500 since 2009. Do you think there are many volatility traders who have outperformed that?",
"title": ""
},
{
"docid": "ed5e9ea4c94d16c474d6154a73443ab5",
"text": "Ok, so disregarding passivity, could you help me through a simplified example? Say I only had two assets, SPY and TLT, with a respective weight of 35 and 65% and I want want to leverage this to 4x. Additionally, say daily return covar is: * B/B .004% * B/S -.004% * S/S .02% Now, if I read correctly, I should buy ATM calls xxx days in the future. Which may look like: Ticker, S, K, Option Price, Delta, Lambda * TLT $126.04 $126.00 $4.35 0.50 14.5 * SPY $134.91 $134.00 $6.26 0.55 11.8 ^ This example is pretty close but some assets are far off. I feel like I'm on the wrong track so I'll stop here. I just want to lever up my risk-parity. Margin rates are too high and I'm docked by Reg-T.",
"title": ""
},
{
"docid": "1b807557ba137c1143736dc37981715b",
"text": "I think your premise is slightly flawed. Every investment can add or reduce risk, depending on how it's used. If your ordering above is intended to represent the probability you will lose your principal, then it's roughly right, with caveats. If you buy a long-term government bond and interest rates increase while you're holding it, its value will decrease on the secondary markets. If you need/want to sell it before maturity, you may not recover your principal, and if you hold it, you will probably be subject to erosion of value due to inflation (inflation and interest rates are correlated). Over the short-term, the stock market can be very volatile, and you can suffer large paper losses. But over the long-term (decades), the stock market has beaten inflation. But this is true in aggregate, so, if you want to decrease equity risk, you need to invest in a very diversified portfolio (index mutual funds) and hold the portfolio for a long time. With a strategy like this, the stock market is not that risky over time. Derivatives, if used for their original purpose, can actually reduce volatility (and therefore risk) by reducing both the upside and downside of your other investments. For example, if you sell covered calls on your equity investments, you get an income stream as long as the underlying equities have a value that stays below the strike price. The cost to you is that you are forced to sell the equity at the strike price if its value increases above that. The person on the other side of that transaction loses the price of the call if the equity price doesn't go up, but gets a benefit if it does. In the commodity markets, Southwest Airlines used derivatives (options to buy at a fixed price in the future) on fuel to hedge against increases in fuel prices for years. This way, they added predictability to their cost structure and were able to beat the competition when fuel prices rose. Even had fuel prices dropped to zero, their exposure was limited to the pre-negotiated price of the fuel, which they'd already planned for. On the other hand, if you start doing things like selling uncovered calls, you expose yourself to potentially infinite losses, since there are no caps on how high the price of a stock can go. So it's not possible to say that derivatives as a class of investment are risky per se, because they can be used to reduce risk. I would take hedge funds, as a class, out of your list. You can't generally invest in those unless you have quite a lot of money, and they use strategies that vary widely, many of which are quite risky.",
"title": ""
},
{
"docid": "5ec6f6d74a9946f9c7b7f8f7132d8642",
"text": "I guess I wasn't clear. I want to modestly leverage (3-4x) my portfolio using options. I believe long deep-in-the-money calls would be the best way to do this? (Let me know if not.) It's important to me that the covariance matrix from the equity portfolio scales up but doesn't fundamentally change. (I liken it to systemic change as opposed to idiosyncratic change.) This is what I was thinking: * For the same expiry date, find each positions lowest lambda. * Match all option to the the highest of the lowest lambda. * Adjust number of contracts to compensate for higher leverage. I don't think this will work because if I matched the lowest lambda of options on bond etfs to my equity options they would be out-of-the-money. By the way, thanks for your time.",
"title": ""
},
{
"docid": "1aa8e87a1881bf344bdfee7c4c4e4eb5",
"text": "For a time period as short as a matter of months, commercial paper or bonds about to mature are the highest returning investments, as defined by Benjamin Graham: An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative. There are no well-known methods that can be applied to cryptocurrencies or forex for such short time periods to promise safety of principal. The problem is that with $1,500, it will be impossible to buy any worthy credit directly and hold to maturity; besides, the need for liquidity eats up the return, risk-adjusted. The only alternative is a bond ETF which has a high probability of getting crushed as interest rates continue to rise, so that fails the above criteria. The only alternative for investment now is a short term deposit with a bank. For speculation, anything goes... The best strategy is to take the money and continue to build up a financial structure: saving for risk-adjusted and time-discounted future annual cash flows. After the average unemployment cycle is funded, approximately six or so years, then long-term investments should be accumulated, internationally diversified equities.",
"title": ""
},
{
"docid": "99a35d8a21693b605106176989414fed",
"text": "This is Rob Bennett, the fellow who developed the Valuation-Informed Indexing strategy and the fellow who is discussed in the comment above. The facts stated in that comment are accurate -- I went to a zero stock allocation in the Summer of 1996 because of my belief in Robert Shiller's research showing that valuations affect long-term returns. The conclusion stated, that I have said that I do not myself follow the strategy, is of course silly. If I believe in it, why wouldn't I follow it? It's true that this is a long-term strategy. That's by design. I see that as a benefit, not a bad thing. It's certainly true that VII presumes that the Efficient Market Theory is invalid. If I thought that the market were efficient, I would endorse Buy-and-Hold. All of the conventional investing advice of recent decades follows logically from a belief in the Efficient Market Theory. The only problem I have with that advice is that Shiller's research discredits the Efficient Market Theory. There is no one stock allocation that everyone following a VII strategy should adopt any more than there is any one stock allocation that everyone following a Buy-and-Hold strategy should adopt. My personal circumstances have called for a zero stock allocation. But I generally recommend that the typical middle-class investor go with a 20 percent stock allocation even at times when stock prices are insanely high. You have to make adjustments for your personal financial circumstances. It is certainly fair to say that it is strange that stock prices have remained insanely high for so long. What people are missing is that we have never before had claims that Buy-and-Hold strategies are supported by academic research. Those claims caused the biggest bull market in history and it will take some time for the widespread belief in such claims to diminish. We are in the process of seeing that happen today. The good news is that, once there is a consensus that Buy-and-Hold can never work, we will likely have the greatest period of economic growth in U.S. history. The power of academic research has been used to support Buy-and-Hold for decades now because of the widespread belief that the market is efficient. Turn that around and investors will possess a stronger belief in the need to practice long-term market timing than they have ever possessed before. In that sort of environment, both bull markets and bear markets become logical impossibilities. Emotional extremes in one direction beget emotional extremes in the other direction. The stock market has been more emotional in the past 16 years than it has ever been in any earlier time (this is evidenced by the wild P/E10 numbers that have applied for that entire time-period). Now that we are seeing the losses that follow from investing in highly emotional ways, we may see rational strategies becoming exceptionally popular for an exceptionally long period of time. I certainly hope so! The comment above that this will not work for individual stocks is correct. This works only for those investing in indexes. The academic research shows that there has never yet in 140 years of data been a time when Valuation-Informed Indexing has not provided far higher long-term returns at greatly diminished risk. But VII is not a strategy designed for stock pickers. There is no reason to believe that it would work for stock pickers. Thanks much for giving this new investing strategy some thought and consideration and for inviting comments that help investors to understand both points of view about it. Rob",
"title": ""
},
{
"docid": "3d1babfc30d5ff74831c9c3ab4156b3c",
"text": "\"If you want to make a profit from long term trading (whatever \"\"long term\"\" means for you), the best strategy is to let the good performers in your portfolio run, and cull the bad ones. Of course that strategy is hard to follow, unless you have the perfect foresight to know exactly how long your best performing investments will continue to outperform the market, but markets don't always follow the assumption that perfect information is available to all participants, and hence \"\"momentum\"\" has a real-world effect on prices, whether or not some theorists have chosen to ignore it. But a fixed strategy of \"\"daily rebalancing\"\" does exactly the opposite of the above - it continuously reduces the holdings of good performers and increases the holdings of bad. If this type of rebalancing is done more frequently than the constituents of benchmark index are adjusted, it is very likely to underperform the index in the long term. Other issues in a \"\"real world\"\" market are the impact of increased dealing costs on smaller parcels of securities, and the buy/sell spreads incurred in the daily rebalancing trades. If the market is up and down 1% on alternate days with no long tern trend, quite likely the fund will be repeatedly buying and selling small parcels of the same stocks to do its daily balancing.\"",
"title": ""
},
{
"docid": "9fc75c244e6640325c4d982543c01e93",
"text": "If you are going to be a long term investor you are only going to buy and hold. You will not sell. Thus future price is not relevant. Only dividend payout is relevant. Divide the dividend by the price you paid to get the yeald. Edit: once again the sitesite will not allow me to add a comment, so I have to edit a previous post... What you call 'active investor' is not really investing, it is speculating. When you try to 'buy low, sell high' you have, at best, a 50-50 chance of picking the low. You then pay a commission on that buy. After you buy then you have a 50-50 chance, at best, of picking the high. You also have to pay the commission on the sell. 50% times 50% is 25%.So you have, at best a 25% chance of buying low and selling high. You are churning your account which makes money for the broker whether you make money or not. If, instead, you buy and hold a dividend paying security then the going price is irrelevant. You paid for the security once and do not have to pay for it again. Meanwhile the dividends roll in forever. 'Buy low, sell high' is a fools game. Warren Buffet does not do it, he buys and holds.",
"title": ""
},
{
"docid": "d262fd91fe48c9dd57b1c42114c26ab5",
"text": "With the netural position delta strategy under high IV returns short vega,there is a possibility to profit from a decline in IV. Of course, if volatility rises higher, the position will lose money. It is therefore best to establish short vega delta-neutral positions when implied volatility is at levels that are in the 90th percentile ranking.",
"title": ""
}
] |
fiqa
|
2248ef6792731d4b65d36f21d49292ac
|
Should I invest in my house, when it's in my wife's name?
|
[
{
"docid": "4b00d105170bc88586f0b766974b7dbe",
"text": "The best answer to this question will depend on you and your wife. What is 'fair' for some may not be 'fair' for others. Some couples split expenses 50:50. Some split proportionately based on income. Some pool everything together. What works best for you will depend on your relative incomes, your financial goals, living standards, and most importantly, your personal beliefs. Here is a great question with various viewpoints: How to organize bank accounts with wife. It doesn't touch heavily on home ownership / pre-nuptial agreements, but might be a good starting point to getting you to think about your options. Consider providing another loan to your wife for additional investments in the home. It seems you are both comfortable with the realities of the pre-nuptial agreement; one of those realities seems to be that in the event of divorce you would lose access to the house. Loaning money has the benefit of allowing for the improvements to be done immediately, while clearly delineating what you have spent on the home from what she has spent on the home. However, this may not be 'fair', depending on how you both define the term. Have you discussed how expenses and savings would be split between you? Since there is no mortgage on the house, she has effectively contributed her pre-marital assets towards paying substantially all of your housing costs. It may be 'fair' for you to contribute to housing costs by at least splitting maintenance 50:50, or it may not be. Hopefully you talked about finances before you got married, and if not, now would be the best time to start. I personally would hate to have an 'uneasy' feeling about a relationship because I failed to openly communicate about finances.",
"title": ""
},
{
"docid": "a41d142cd350fe9e91d6300c38723bd1",
"text": "Have you talked with her about this? On the one hand you have a point. Given the prenuptial agreements why should you invest in something that you can never have interest in. However, you also live in the property. You did not go into the arrangements but presumably you should be contributing to the upkeep of the home as otherwise you would live there for free. Additionally you did not mention it but it sounds like the prenuptial does not cover your assets. In the event of divorce she, presumably, would own half of your 400K. Correct? The key here is a conversation. What is right for the two of you? While some might be very uncomfortable with the situation, as is, you two seem to be okay with it. Go from there, build on it. Come up with something that is equitable for both parties and your heirs.",
"title": ""
},
{
"docid": "fcde0c9bc541fa6e39fe1e997dadcc4c",
"text": "If you are concerned about it being inequitable due to the prenuptial agreement, discuss the idea of amending the prenuptial agreement to give you some consideration for your investments in the house. Prenuptial agreements often get amended over the course of a marriage. How do you proceed? It has to start with discussion. It's not an unreasonable concern given your legal separation of assets, so broach the subject and go from there. Perhaps you'll find there's a good reason for you to invest in the property even without having interest in it, who knows.",
"title": ""
},
{
"docid": "583cffbcbec14df4b5a6fb12db7fbfff",
"text": "\"The prenup complicates things. The traditional vow of a marriage is \"\"What's mine is yours, what's yours is mine\"\". With such a traditional marriage it doesn't matter too much which partner's name something is in, in the event of a divorce the assets of the couple would be considered as a whole and then split. But you have a prenup which is presumably intended to change this traditional arrangement (and may or may not actually be enforceable). I think you are as such right to be wary. I think your only way forward long term is to amend the prenup and/or the legal status of the house to recognize it as a shared asset that you will both be contributing to and that it's value should be split in some way in the event of a divorce. In exchange you should probably be contributing some or all of the cash pile you have from selling your house to the common pot. Another loan may seem like a good option in the short term but in the long term the appreciation on a house is likely to be worth more than any interest on the loan (assuming you are using an interest rate comparable to commercial mortgage deals), plus any interest may well end up being taxable.\"",
"title": ""
},
{
"docid": "f0e42866e18ab51395e88ba021614b7d",
"text": "I'm not going to speculate on the nature of your relationship with your wife, but the fact that you are worried about what would happen in the event of a divorce is a bit concerning. Presumably you married her with the intent of staying together forever, so what's the big deal if you spend 50k upgrading the house you live in, assuming you won't get divorced? Now, if you really are worried about something happening in the future, you might want to seek legal advice about the content of the prenup. I am guessing if the 400k were your assets before marriage, you have full claim to that amount in the event of a divorce*. If you document the loan, or make some agreement, I would think you would have claim to at least some of the house's appreciation due to the renovations if they were made with your money*. *obligatgory IANAL",
"title": ""
},
{
"docid": "5fb65a985b04ebc0e224cab352a24540",
"text": "\"It is my opinion that part of having a successful long-term relationship is being committed to the other person's success and well-being. This commitment is a form of investment in and of itself. The returns are typically non-monetary, so it's important to understand what money actually is. Money is a token people exchange for favors. If I go to a deli and ask for a sandwich. I give them tokens for the favor of having received a sandwich. The people at the deli then exchange those tokens for other favors, and that's the entire economy: people doing favors for other people in exchange for tokens that represent more favors. Sometimes being invested in your spouse is giving them a back rub when they've had a hard day. The investment pays off when you have a hard day and they give you a back rub. Sometimes being invested in your spouse is taking them to a masseuse for a professional massage. The investment pays off when they get two tickets to that thing you love. At the small scale it's easy to mostly ignore minor monetary discrepancies. At the large scale (which I think £50k is plenty large enough given your listed net worth) it becomes harder to tell if the opportunity cost will be worth making that investment. It pretty much comes down to: Will the quality-of-life improvements from that investment be better than the quality-of-life improvements you receive from investing that money elsewhere? As far as answering your actual question of: How should I proceed? There isn't a one-size fits all answer to this. It comes down to decisions you have to make, such as: * in theory it's easy to say that everyone should be able to trust their spouse, but in practice there are a lot of people who are very bad at handling money. It can be worthwhile in some instances to keep your spouse at an arms length from your finances for their own good, such as if your spouse has a gambling addiction. With all of that said, it sounds like you're living in a £1.5m house rent-free. How much of an opportunity cost is that to your wife? Has she been freely investing in your well-being with no explicit expectation of being repaid? This can be your chance to provide a return on her investment. If it were me, I'd make the investment in my spouse, and consider it \"\"rent\"\" while enjoying the improvements to my quality of life that come with it.\"",
"title": ""
}
] |
[
{
"docid": "c10ace4aedb72bf50cc35dc0869e866d",
"text": "\"I'm not an attorney or a tax advisor. The following is NOT to be considered advice, just general information. In the US, \"\"putting your name on the deed\"\" would mean making you a co-owner. Absent any other legal agreement between you (e.g. a contract stating each of you owns 50% of the house), both of you would then be considered to own 100% of the house, jointly and severally: In addition, the IRS would almost certainly interpret the creation of your ownership interest as a gift from your partner to you, making them liable for gift tax. The gift tax could be postponed by filing a gift tax return, which would reduce partner's lifetime combined gift/estate tax exemption. And if you sought to get rid of your ownership interest by giving it to your partner, it would again be a taxable gift, with the tax (or loss of estate tax exemption) accruing to you. However, it is likely that this is all moot because of the mortgage on the house. Any change to the deed would have to be approved by the mortgage holder and (if so approved) executed by a title company/registered closing agent or similar (depending on the laws of your state). In my similar case, the mortgage holder refused to add or remove any names from the deed unless I refinanced (at a higher rate, naturally) making the new partners jointly liable for the mortgage. We also had to pay an additional title fee to change the deed.\"",
"title": ""
},
{
"docid": "6f1757e12b8309837d76e792e3845e77",
"text": "\"I don't believe it makes a difference at the federal level -- if you file taxes jointly, gains, losses, and dividends appear on the joint tax account. If you file separately, I assume the tax implications only appear on the owner's tax return. Then the benefits might outweigh the costs, but only if you correctly predict market behavior and the behavior of your positions. For example, lets say you lose 30k in the market in one year, and your spouse makes 30k. If you're filing jointly, the loss washes out the gain, and you have no net taxes on the investment. If you're filing separately, you can claim 3k in loss (the remaining 27k in loss is banked to future tax years), but your spouse pays taxes on 30k in gain. Where things get more interesting is at the state level. I live in a \"\"community property state,\"\" where it doesn't matter whether you have separate accounts or not. If I use \"\"community money\"\" to purchase a stock and make a million bucks, that million bucks is shared by the two of us, whether the account is in my name our in our name. income during the marriage is considered community property. However property you bring into the marriage is not. And inheritances are not community property -- until co-mingled. Not sure how it works in other states. I grew up in what's called an \"\"equitable property state.\"\"\"",
"title": ""
},
{
"docid": "488a2e2da0765eb148803ded8cdeccfb",
"text": "Like @littleadv, I don't consider a mortgage on a primary residence to be a low-risk investment. It is an asset, but one that can be rather illiquid, depending on the nature of the real estate market in your area. There are enough additional costs associated with home-ownership (down-payment, insurance, repairs) relative to more traditional investments to argue against a primary residence being an investment. Your question didn't indicate when and where you bought your home, the type of home (single-family, townhouse, or condo) the nature of your mortgage (fixed-rate or adjustable rate), or your interest rate, but since you're in your mid-20s, I'm guessing you bought after the crash. If that's the case, your odds of making a profit if/when you sell your home are higher than they would be if you bought in the 2006/2007 time-frame. This is no guarantee of course. Given the amount of housing stock still available, housing prices could still fall further. While it is possible to lose money in all sorts of investments, the illiquid nature of real estate makes it a lot more difficult to limit your losses by selling. If preserving principal is your objective, money market funds and treasury inflation protected securities are better choices than your home. The diversification your financial advisor is suggesting is a way to manage risk. Not all investments perform the same way in a given economic climate. When stocks increase in value, bonds tend to decrease (and vice versa). Too much money in a single investment means you could be wiped out in a downturn.",
"title": ""
},
{
"docid": "2368a6a6d2c21902782f59fdc6929bff",
"text": "It's not your money. What does your wife think of this? You know, the withdrawal is subject to full tax at your marginal rate as well as a 10% penalty. That's quite a price to pay, don't do it.",
"title": ""
},
{
"docid": "419c9242f195bf26a718bf4e307dc73d",
"text": "You are thinking about this very well. With option one, you need to think about the 5 D's in the contract. What happens when one partner becomes disinterested, divorced (break up), does drugs (something illegal), dies or does not agree with decisions. One complication if you buy jointly, and decide to break up/move, on will the other partner be able to refinance? If not the leaving person will probably not be able to finance a new home as the banks are rarely willing to assume multiple mortgage risks for one person. (High income/large down payment not with standing.) I prefer the one person rents option to option one. The trouble with that is that it sounds like you are in better position to be the owner, and she has a higher emotional need to own. If she is really interested in building equity I would recommend a 15 year or shorter mortgage. Building equity in a 30 year is not realistic.",
"title": ""
},
{
"docid": "4fd9b92c9d79afce35eef887de01bad3",
"text": "Before doing anything else: you want a lawyer involved right from the beginning, to make sure that something reasonable happens with the house if one of you dies or leaves. Seriously, you'll both be safer and happier if it's all explicit. How much you should put on the house is not the right question. Houses don't sell instantly, and while you can access some of their stored value by borrowing against them that too can take some time to arrange. You need to have enough operating capital for normal finances, plus an emergency reserve to cover unexpectedly being out of work or sudden medical expenses. There are suggestions for how much that should be in answers to other questions. After that, the question is whether you should really be buying a house at all. It isn't always a better option than renting and (again as discussed in answers to other questions) there are ongoing costs in time and upkeep and taxes and insurance. If you're just thinking about the financials, it may be better to continue to rent and to invest the savings in the market. The time to buy a house is when you have the money and a reliable income, plan not to move for at least five years, really want the advantages of more elbow room and the freedom to alter the place to suit your needs (which will absorb more money)... As far as how much to put down vs. finance: you really want a down payment of at least 20%. Anything less than that, and the bank will insist you pay for mortgage insurance, which is a significant expense. Whether you want to pay more than that out of your savings depends on how low an interest rate you can get (this is a good time in that regard) versus how much return you are getting on your investments, combined with how long you want the mortgage to run and how large a mortgage payment you're comfortable committing to. If you've got a good investment plan in progress and can get a mortgage which charges a lower interest rate than your investments can reasonably be expected to pay you, putting less down and taking a larger mortgage is one of the safer forms of leveraged investing... IF you're comfortable with that. If the larger mortgage hanging over you is going to make you uncomfortable, this might not be a good answer for you. It's a judgement call. I waited until i'd been in out of school about 25 years before I was ready to buy a house. Since i'd been careful with my money over that time, I had enough in investments that I could have bought the house for cash. Or I could have gone the other way and financed 80% of it for maximum leverage. I decided that what I was comfortable with was financing 50%. You'll have to work thru the numbers and decide what you are comfortable with. But I say again, if buying shared property you need a lawyer involved. It may be absolutely the right thing to do ... but you want to make sure everything is fully spelled out... and you'll also want appropriate terms written into your wills. (Being married would carry some automatic assumptions about joint ownership and survivor rights... but even then it's safer to make it all explicit.) Edit: Yes, making a larger down payment may let you negotiate a lower interest rate on the loan. You'll have to find out what each bank is willing to offer you, or work with a mortgage broker who can explore those options for you.",
"title": ""
},
{
"docid": "aa381432a94c74fa8cc9b5ffd9ec4751",
"text": "Owning a stock via a fund and selling it short simultaneously should have the same net financial effect as not owning the stock. This should work both for your personal finances as well as the impact of (not) owning the shares has on the stock's price. To use an extreme example, suppose there are 4 million outstanding shares of Evil Oil Company. Suppose a group of concerned index fund investors owns 25% of the stock and sells short the same amount. They've borrowed someone else's 25% of the company and sold it to a third party. It should have the same effect as selling their own shares of the company, which they can't otherwise do. Now when 25% of the company's stock becomes available for purchase at market price, what happens to the stock? It falls, of course. Regarding how it affects your own finances, suppose the stock price rises and the investors have to return the shares to the lender. They buy 1 million shares at market price, pushing the stock price up, give them back, and then sell another million shares short, subsequently pushing the stock price back down. If enough people do this to effect the share price of a stock or asset class, the managers at the companies might be forced into behaving in a way that satisfies the investors. In your case, perhaps the company could issue a press release and fire the employee that tried to extort money from your wife's estate in order to win your investment business back. Okay, well maybe that's a stretch.",
"title": ""
},
{
"docid": "518790024d1d008884adf628880d51c1",
"text": "I personally think that you should do whatever you believe works best. I am not married but when I get married I would also want to do what you are doing with having a joint account for certain things but also still having seperate accounts. I find this is a good approach so that neither of you is dependent finanically on the other one. Also, if you want to buy a present for your wife you would do it with your own money and not the joint account money. I hope my answer helps.",
"title": ""
},
{
"docid": "ae20a73a57469e8a6781b4deec5cc182",
"text": "You're being too hard on yourself. You've managed to save quite a bit, which is more than most people ever do. You're in a wonderful position, actually -- you have savings and time! You don't mention how long you want/need to continue working, but I'll assume 20 years or so? You don't have to invest it all at once. Like Pete B says, index funds (just read what Mr. Buffett said in recent news: he'd tell his widow to invest in the S&P 500 Index and not Berkshire Hathaway!) should be a decent percentage. You can also pick a target fund from any of the major investment firms (fees are higher than an Index, but it will take care of any asset allocation decisions). Put some in each. Also look at retirement accounts to take advantage of tax-deferred or tax-free growth, but that's another question and country-specific. In any case, don't even blink when the market goes down. And it will go down. If you're still working, earning, and saving, it'll just be another opportunity to buy more at lower prices. As for the house, no reason you can't invest and save for a house. Invest some for the long term and set aside the rest for the house in 1-5 years. If you don't think you'll ever really buy the house, though, invest the majority of it for the long-term: I have a feeling from the tone of your question that you tend to put off the big financial decisions. So if you won't really buy the house, just admit it to yourself now!",
"title": ""
},
{
"docid": "98b07a3bada1706a14716f012eaff827",
"text": "\"Accounting for this properly is not a trivial matter, and you would be wise to pay a little extra to talk with a lawyer and/or CPA to ensure the precise wording. How best to structure such an arrangement will depend upon your particular jurisdiction, as this is not a federal matter - you need someone licensed to advise in your particular state at least. The law of real estate co-ownership (as defined on a deed) is not sufficient for the task you are asking of it - you need something more sophisticated. Family Partnership (we'll call it FP) is created (LLC, LLP, whatever). We'll say April + A-Husband gets 50%, and Sister gets 50% equity (how you should handle ownership with your husband is outside the scope of this answer, but you should probably talk it over with a lawyer and this will depend on your state!). A loan is taken out to buy the property, in this case with all partners personally guaranteeing the loan equally, but the loan is really being taken out by FP. The mortgage should probably show 100% ownership by FP, not by any of you individually - you will only be guaranteeing the loan, and your ownership is purely through the partnership. You and your husband put $20,000 into the partnership. The FP now lists a $20,000 liability to you, and a $20,000 asset in cash. FP buys the $320,000 house (increase assets) with a $300,000 mortgage (liability) and $20,000 cash (decrease assets). Equity in the partnership is $0 right now. The ownership at present is clear. You own 50% of $0, and your sister owns 50% of $0. Where'd your money go?! Simple - it's a liability of the partnership, so you and your husband are together owed $20,000 by the partnership before any equity exists. Everything balances nicely at this point. Note that you should account for paying closing costs the same as you considered the down payment - that money should be paid back to you before any is doled out as investment profit! Now, how do you handle mortgage payments? This actually isn't as hard as it sounds, thanks to the nature of a partnership and proper business accounting. With a good foundation the rest of the building proceeds quite cleanly. On month 1 your sister pays $1400 into the partnership, while you pay $645 into the partnership. FP will record an increase in assets (cash) of $1800, an increase in liability to your sister of $1400, and an increase in liability to you of $645. FP will then record a decrease in cash assets of $1800 to pay the mortgage, with a matching increase in cost account for the mortgage. No net change in equity, but your individual contributions are still preserved. Let's say that now after only 1 month you decide to sell the property - someone makes an offer you just can't refuse of $350,000 dollars (we'll pretend all the closing costs disappeared in buying and selling, but it should be clear how to account for those as I mention earlier). Now what happens? FP gets an increase in cash assets of $350,000, decreases the house asset ($320,000 - original purchase price), and pays off the mortgage - for simplicity let's pretend it's still $300,000 somehow. Now there's $50,000 in cash left in the partnership - who's money is it? By accounting for the house this way, the answer is easily determined. First all investments are paid back - so you get back $20,000 for the down payment, $645 for your mortgage payments so far, and your sister gets back $1400 for her mortgage payment. There is now $27,995 left, and by being equal partners you get to split it - 13,977 to you and your husband and the same amount to your sister (I'm keeping the extra dollar for my advice to talk to a lawyer/CPA). What About Getting To Live There? The fact is that your sister is getting a little something extra out of the deal - she get's the live there! How do you account for that? Well, you might just be calling it a gift. The problem is you aren't in any way, shape, or form putting that in writing, assigning it a value, nothing. Also, what do you do if you want to sell/cash out or at least get rid of the mortgage, as it will be showing up as a debt on your credit report and will effect your ability to secure financing of your own in the future if you decide to buy a house for your husband and yourself? Now this is the kind of stuff where families get in trouble. You are mixing personal lives and business arrangements, and some things are not written down (like the right to occupy the property) and this can really get messy. Would evicting your sister to sell the house before you all go bankrupt on a bad deal make future family gatherings tense? I'm betting it might. There should be a carefully worded lease probably from the partnership to your sister. That would help protect you from extra court costs in trying to determine who has the rights to occupy the property, especially if it's also written up as part of the partnership agreement...but now you are building the potential for eviction proceedings against your sister right into an investment deal? Ugh, what a potential nightmare! And done right, there should probably be some dollar value assigned to the right to live there and use the property. Unless you just want to really gift that to your sister, but this can be a kind of invisible and poorly quantified gift - and those don't usually work very well psychologically. And it also means she's going to be getting an awfully larger benefit from this \"\"investment\"\" than you and your husband - do you think that might cause animosity over dozens and dozens of writing out the check to pay for the property while not realizing any direct benefit while you pay to keep up your own living circumstances too? In short, you need a legal structure that can properly account for the fact that you are starting out in-equal contributors to your scheme, and ongoing contributions will be different over time too. What if she falls on hard times and you make a few of the mortgage payments? What if she wants to redo the bathroom and insists on paying for the whole thing herself or with her own loan, etc? With a properly documented partnership - or equivalent such business entity - these questions are easily resolved. They can be equitably handled by a court in event of family squabble, divorce, death, bankruptcy, emergency liquidation, early sale, refinance - you name it. No percentage of simple co-ownership recorded on a deed can do any of this for you. No math can provide you the proper protection that a properly organized business entity can. I would thus strongly advise you, your husband, and your sister to spend the comparatively tiny amount of extra money to get advice from a real estate/investment lawyer/CPA to get you set up right. Keep all receipts and you can pay a book keeper or the accountant to do end of the year taxes, and answer questions that will come up like how to properly account for things like depreciation on taxes. Your intuition that you should make sure things are formally written up in times when everyone is on good terms is extremely wise, so please follow it up with in-person paid consultation from an expert. And no matter what, this deal as presently structured has a really large built-in potential for heartache as you have three partners AND one of the partners is also renting the property partially from themselves while putting no money down? This has a great potential to be a train wreck, so please do look into what would happen if these went wrong into some more detail and write up in advance - in a legally binding way - what all parties rights and responsibilities are.\"",
"title": ""
},
{
"docid": "919c215dc649a8d23306318f5a6a9451",
"text": "Many partnership agreements include a shotgun clause: one person sets a price, the other can either buy at that price or sell at it. It's rather brutal. You can make offers that you know are less than the company is worth if you're sure the other person will have to take that money from you, say if you know they can't run the company without you. He has asked for $X to be bought out, and failing that he would like to keep owning his half and send his wife (who may very well be competent, but who among other things has a very ill husband to deal with) to take his place. If he can occasionally contribute to the overall vision, and she can do the day to day, then keeping things as they are may be the smart move. But if that's not possible, it doesn't mean you have to buy him out for twice what you think it's worth. In the absence of a partnership agreement, it's going to be hard to know what to do. But one approach might be to pretend there is a shotgun clause. Ask him, if he thinks half the company is worth $X, if he's willing to buy you out for that price and have his wife run it without you. He is likely to blurt out that it isn't worth that and she can't do that. And at that point, you'll actually be negotiating.",
"title": ""
},
{
"docid": "f22e594c021241f4b17a7979fa3d07c4",
"text": "The equity you have is an asset. Locked away until you sell, and sometimes pledged as a loan if you wish. The idea that it's dead money is nonsense, it's a pretty illiquid asset that has the potential for growth (at the rate of inflation or slightly higher, long term) and provides you an annual dividend in the form of free rent. In this country, most people who own homes have a disproportionate amount of their wealth in their house. This is more a testament to the poor saving rate than anything else. For me, a high equity position means that I can sell my home and buy a lesser sized house for cash. I am older and my own goal (with the mrs) is to have the house paid and college for the kid fully funded before we think of retiring. For others, it's cash they can use to rent after they retire. I hope that helped, there's nothing magic about this, just a lot of opinions.",
"title": ""
},
{
"docid": "92f2653684d88975ae329e1a54900c99",
"text": "I think your best course of action depends on the likely outcome of the divorce proceedings. The alimony/child support payments are controlled externally. I don't like to plan around things that I have no control over. In your shoes, I would probably avoid buying until things are settled down.",
"title": ""
},
{
"docid": "5de97a1bc0bbdec7f2e311fbfba9d0bd",
"text": "\"Be careful that pride is not getting in the way of making a good decision. As it stands now what difference does it make to have 200K worth of debt and a 200K house or 225K of debt and a 250K house? Sure you would have a 25K higher net worth, but is that really important? Some may even argue that such an increase is not real as equity in primary residence might not be a good indication of wealth. While there is nothing wrong with sitting down with a banker, most are likely to see your scheme as dubious. Home improvements rarely have a 100% ROI and almost never have a 200% ROI, I'd say you'd be pretty lucky to get a 65% ROI. That is not to say they will deny you. The banks are in the business of lending money, and have the goal of taking as much of your hard earned paycheck as possible. They are always looking to \"\"sheer the sheep\"\". Why not take a more systematic approach to improving your home? Save up and pay cash as these don't seem to cause significant discomfort. With that size budget and some elbow grease you can probably get these all done in three years. So in three years you'll have about 192K in debt and a home worth 250K or more.\"",
"title": ""
},
{
"docid": "3becf428add18f59ba38d20807e3f7d7",
"text": "Shop around for Gym January is a great time to look because that's when most people join and the gyms are competing for your business. Also, look beyond the monthly dues. Many gyms will give free personal training sessions when you sign up - a necessity if you are serious about getting in shape! My gym offered a one time fee for 3 years. It cost around $600 which comes out to under $17 a month. Not bad for a new modern state of the art gym.",
"title": ""
}
] |
fiqa
|
263c7006ee85c4a97796dd5cc1b47a34
|
Is it possible for the average person to profit on the stock market?
|
[
{
"docid": "bb28cf4e4e06bf5115246d92fa92e80b",
"text": "\"There's a huge difference between \"\"can an anverage person make a profit on the stock market\"\" and \"\"can an average person get rich off the stock market\"\". It is certainly possible for an average person to profit, but of course you are unlikely to profit as much as the big Wall Street guys. An S&P 500 index fund, for instance, would be a pretty good way to profit. People with high-powered tools may make a lot of money picking individual stocks, and may even make some choices that help them when the market is down, but it's difficult to see how they could consistently make money over the long term without the S&P 500 also going up. The same applies, to varying extents, to various other index funds, ETFs, and mutual funds. I agree with littleadv that there is no single \"\"right\"\" thing for everyone to do. My personal take is that index funds are a good bet, and I've seen a lot of people take that view on personal finance blogs, etc. (for whatever that's worth). One advantage of index funds that track major indexes (like the S&P 500) is that because they are and are perceived as macro-indicators of the overall economic situation, at least you're in the same boat as many other people. On one level, that means that if you lose money a lot of other investors are also losing money, and when large numbers of people start losing money, that makes governments take action, etc., to turn things around. On another level, the S&P 500 is a lot of big companies; if it goes down, some of those big companies are losing value, and they will use their big-company resources to gain value, and if they succeed, the index goes up again and you benefit. In other words, index funds (and large mutual funds, ETFs, etc.) make investing less about what day-trading wonks focus on, which is trying to make a \"\"hot choice\"\" for a large gain. They make it more about hitching your wagon to an extremely large star that is powered by all the resources of extremely large companies, so that when those companies increase their value, you gain. The bigger the pool of people whose fortunes rise and fall with your own, the more you become part of an investment portfolio that is (I can't resist saying it) \"\"too big to fail\"\". That isn't to say that the S&P 500 can't lose value from time to time, but rather that if it does go down big and hard and stay there, you probably have bigger problems than losing money in the stock market (e.g., the US economy is collapsing and you should begin stockpiling bullets and canned food).\"",
"title": ""
},
{
"docid": "f010325a3fe156fe86ddd14c85278e5e",
"text": "\"Of course. \"\"Best\"\" is a subjective term. However relying on the resources of the larger institutions by pooling with them will definitely reduce your own burden with regards to the research and keeping track. So yes, investing in mutual funds and ETFs is a very sound strategy. It would be better to diversify, and not to invest all your money in one fund, or in one industry/area. That said, there are more than enough individuals who do their own research and stock picking and invest, with various degrees of success, in individual securities. Some also employe more advanced strategies such as leveraging, options, futures, margins, etc. These advance strategies come at a greater risk, but may bring a greater rewards as well. So the answer to the question in the subject line is YES. For all the rest - there's no one right or wrong answer, it depends greatly on your abilities, time, risk tolerance, cash available to invest, etc etc.\"",
"title": ""
},
{
"docid": "958bc50fb642ea1196eccc7d99737758",
"text": "Given that hedge funds and trading firms employ scores of highly intelligent analysts, programmers, and managers to game the market, what shot does the average person have at successful investing in the stock market? Good question and the existing answers provide valuable insight. I will add one major ingredient to successful investing: emotion. The analysts and experts that Goldman Sachs, Morgan Stanley or the best hedge funds employ may have some of the most advanced analytical skills in the world, but knowing and doing still greatly differ. Consider how many of these same companies and funds thought real estate was a great buy before the housing bubble. Why? FOMO (fear of missing out; what some people call greed). One of my friends purchased Macy's and Las Vegas Sands in 2009 at around $5 for M and $2 for LVS. He never graduated high school, so we might (foolishly) refer to him as below average because he's not as educated as those individuals at Goldman Sachs, Morgan Stanley, etc. Today M sits around $40 a share and LVS at around $70. Those returns in five years. The difference? Emotion. He holds little attachment to money (lives on very little) and thus had the freedom to take a chance, which to him didn't feel like a chance. In a nutshell, his emotions were in the right place and he studied a little bit about investing (read two article) and took action. Most of the people who I know, which easily had quintuple his wealth and made significantly more than he did, didn't take a chance (even on an index fund) because of their fear of loss. I mean everyone knows to buy low, right? But how many actually do? So knowing what to do is great; just be sure you have the courage to act on what you know.",
"title": ""
},
{
"docid": "cfb8eb76f144b9bc12d00e547c5e16c9",
"text": "\"I'd refer you to Is it true that 90% of investors lose their money? The answer there is \"\"no, not true,\"\" and much of the discussion applies to this question. The stock market rises over time. Even after adjusting for inflation, a positive return. Those who try to beat the market, choosing individual stocks, on average, lag the market quite a bit. Even in a year of great returns, as is this year ('13 is up nearly 25% as measured by the S&P) there are stocks that are up, and stocks that are down. Simply look at a dozen stock funds and see the variety of returns. I don't even look anymore, because I'm sure that of 12, 2 or three will be ahead, 3-4 well behind, and the rest clustered near 25. Still, if you wish to embark on individual stock purchases, I recommend starting when you can invest in 20 different stocks, spread over different industries, and be willing to commit time to follow them, so each year you might be selling 3-5 and replacing with stocks you prefer. It's the ETF I recommend for most, along with a buy and hold strategy, buying in over time will show decent returns over the long run, and the ETF strategy will keep costs low.\"",
"title": ""
},
{
"docid": "d3c3966b5e38b2427a3327868d0fcfa7",
"text": "Below is a list of rules that will help you to decide what types of products you should be investing in:",
"title": ""
}
] |
[
{
"docid": "3df74b1e4403aecc1a7f0ac1bc084481",
"text": "I read about the 90-90-90 rule aka 90% of the people lose 90% of the money in 90 days. Anything that happens in 90 days or less is speculation (effectively gambling), not investment. And the 90-90-90 thing sounds around right for inexperienced amateurs going up against professionals in that space. I don't know anyone who actually made significant amount money by investing in stocks or other financial products except those appearing in TVs. Lots and lots and lots of people do. I heard that people who actually encourage common people to invest in stocks are stock brokers and fund managers who actually gain by the fact that more people invest. No. It's true that lots of people will give you advice to by specific stocks or financial instruments that will earn them comission or fees, but the basic idea of investing in the stock market is very sound; ultimately, it's based on the ability of companies to create value and pay dividends. Could you please give some valid reasons to invest in stocks or other financial market. Thank you. Well, what else can you do with your money? Put it in an interest-bearing bank account? Effectively, you'll still be investing in the stock market, the bank is just taking most of the returns in exchange for guaranteeing that you'll never lose money even temporarily.",
"title": ""
},
{
"docid": "7cdda4d3caa04e644bcc253415266fa0",
"text": "Yes under certain circumstances! Educate yourself first. Consider algorithmic trading when you code your strategies and implement your ideas - a bit easier for psychology. And let the computer to trade for you. Start with demo account without taking personal risk. Only after a year of experience try small amount of cash like you said 100$. Avoid trade when big news events are released. Stick to strategy, use money management, stop loss, write results in the journal... learn & improve... be careful it is very hard journey.",
"title": ""
},
{
"docid": "ac33ea50dc277176327736a8f2fae978",
"text": "\"I think this is possible under very special conditions. The important part of the description here is probably retired and rich. The answers so far apply to people with \"\"normal\"\" incomes - both in the sense of \"\"not rich\"\" and in the sense of \"\"earned income.\"\" If you sit at the top tax bracket and get most of your income through things like dividends, then you might be able to win multiple ways with the strategy described. First you get the tax deduction on the mortgage interest, which everyone has properly noted is not by itself a winning game - You spend more than you save. BUT... There are other factors, especially for the rich and those whose income is mostly passive: I'm not motivated enough on the hypothetical situation to come up with a detailed example, but I think it's possible that this could work out. In any case, the current answers using \"\"normal sized\"\" incomes and middle tax brackets don't necessarily give the insight that you might hope if the tax payer really is unusually wealthy and retired.\"",
"title": ""
},
{
"docid": "ea31ddc06a51ed2dd31734c86942e590",
"text": "I remember like 20 years ago someone did an experiment where Peter Lynch, elementary school kids, and an ape, all picked stocks in a situation similar to this. The result was almost the same, with the elementary school kids coming out slightly better Picking correct stocks is a craps shoot, as the market is an emotional entity, and in the short run, even educated guesses don't give an edge. People like Peter Lynch eventually win of course because of discipline, long term goals, and knowledge of tools like derivatives",
"title": ""
},
{
"docid": "1113a65ceab6020675408bde08a986cd",
"text": "\"This probably won't be a popular answer due to the many number of disadvantaged market participants out there but: Yes, it is possible to distort the markets for securities this way. But it is more useful to understand how this works for any market (since it is illegal in securities markets where company shares are involves). Since you asked about the company Apple, you should be aware this is a form of market manipulation and is illegal... when dealing with securities. In any supply and demand market this is possible especially during periods when other market participants are not prevalent. Now the way to do this usually involves having multiple accounts you control, where you are acting as multiple market participants with different brokers etc. The most crafty ways to do with involve shell companies w/ brokerage accounts but this is usually to mask illegal behavior In the securities markets where there are consequences for manipulating the shares of securities. In other markets this is not necessary because there is no authority prohibiting this kind of trading behavior. Account B buys from Account A, account A buys from Account B, etc. The biggest issue is getting all of the accounts capitalized initially. The third issue is then actually being able to make a profit from doing this at all. Because eventually one of your accounts will have all of the shares or whatever, and there would still be no way to sell them because there are no other market participants to sell to, since you were the only one moving the price. Therefore this kind of market manipulation is coupled with \"\"promotions\"\" to attract liquidity to a financial product. (NOTE the mere fact of a promotion does not mean that illegal trading behavior is occurring, but it does usually mean that someone else is selling into the liquidity) Another way to make this kind of trading behavior profitable is via the derivatives market. Options contracts are priced solely by the trading price of the underlying asset, so even if your multiple account trading could only at best break even when you sell your final holdings (basically resetting the price to where it was because you started distorting it), this is fine because your real trade is in the options market. Lets say Apple was trading at $200 , the options contract at the $200 strike is a call trading at $1 with no intrinsic value. You can buy to open several thousand of the $200 strike without distorting the shares market at all, then in the shares market you bid up Apple to $210, now your options contract is trading at $11 with $10 of intrinsic value, so you just made 1000% gain and are able to sell to close those call options. Then you unwind the rest of your trade and sell your $210 apple shares, probably for $200 or $198 or less (because there are few market participants that actually valued the shares for that high, the real bidders are at $200 and lower). This is hardly a discreet thing to do, so like I mentioned before, this is illegal in markets where actual company shares are involved and should not be attempted in stock markets but other markets won't have the same prohibitions, this is a general inefficiency in capital markets in general and certain derivatives pricing formulas. It is important to understand these things if you plan to participate in markets that claim to be fair. There is nothing novel about this sort of thing, and it is just a problem of allocating enough capital to do so.\"",
"title": ""
},
{
"docid": "f6f3af904870fa87141b1519e22bcd73",
"text": "Sure.. its possible, its exactly what activist investors do (with institutional money - e.g. pension funds, family foundations). Crowdsourcing probably implies an average <$100 donation per contributor in your mind however, so you'd need a lot of contributors (as opposed to an institution writing a $1B check out of the box) As a benchmark, you can start agitating even without owning shares, but it probably lends credibility to have a few percentage points. As of today, GS's market cap is $46B, JPM's market cap is $122B, BAML's market cap is $77B... so you'd need at least $1B of capital to buy a percentage point or two. At $100 per ticket. that's 10M individual donors.",
"title": ""
},
{
"docid": "1c007d2f764ed54de2b635b1ceb950c4",
"text": "\"(Leaving aside the question of why should you try and convince him...) I don't know about a very convincing \"\"tl;dr\"\" online resource, but two books in particular convinced me that active management is generally foolish, but staying out of the markets is also foolish. They are: The Intelligent Asset Allocator: How to Build Your Portfolio to Maximize Returns and Minimize Risk by William Bernstein, and A Random Walk Down Wall Street: The Time Tested-Strategy for Successful Investing by Burton G. Malkiel Berstein's book really drives home the fact that adding some amount of a risky asset class to a portfolio can actually reduce overall portfolio risk. Some folks won a Nobel Prize for coming up with this modern portfolio theory stuff. If your friend is truly risk-averse, he can't afford not to diversify. The single asset class he's focusing on certainly has risks, most likely inflation / purchasing power risk ... and that risk that could be reduced by including some percentage of other assets to compensate, even small amounts. Perhaps the issue is one of psychology? Many people can't stomach the ups-and-downs of the stock market. Bernstein's also-excellent follow-up book, The Four Pillars of Investing: Lessons for Building a Winning Portfolio, specifically addresses psychology as one of the pillars.\"",
"title": ""
},
{
"docid": "ef4b0cff3e13cb4f5bf4142ca6be722e",
"text": "\"I'm going to take a very crude view of this: Suppose that you have an event that would cost $100,000 if it occurred. If there's a 10% chance that it'll happen to you and the insurance costs less than $10,000, you'll make a profit \"\"on average.\"\" This is, of course, assuming that you could afford a $100,000 loss. If you can't, the actual loss could be much higher (or different). For example, if you couldn't afford surgery because you didn't have health insurance, it could be a lot more \"\"costly\"\" in a way that could be difficult to compare to the $100,000. Obviously, this is a very simplistic view of things. For example, making more than you paid on the premium typically isn't the only reason you'd buy insurance (even if you're high net worth). Just wanted to throw this out there for what it's worth though.\"",
"title": ""
},
{
"docid": "8bd6dba8603aef66808526c01453503b",
"text": "How can you correlate a company stock's performance with overall market performance. No you can't. There is no simple magic formulae that will result in profits. There are quite a few statistical algorithms that specialists have built, that work most of the times. But they are incorrect most of the times as well.",
"title": ""
},
{
"docid": "e5394b50bb1808b2c811f7e934f56908",
"text": "Well lets see... JP Morgan Chase, for example, has a market cap of $118 billion. The U.S. labor force is about 158 million people. So if every working american kicked in about 400 bucks, you'd have enough money to buy a a controlling stake in JPM. Goldman Sachs has a market cap of $44 billion. You could buy a controlling stake in Goldman if every working american threw in about 150 bucks. Of course you'd have to purchase the stock at a large premium if you're trying to gain a controlling stake.",
"title": ""
},
{
"docid": "fd619dbf12a5842646b8f3a2a387df3e",
"text": "\"The stock market is not a zero-sum game. Some parts are (forex, some option trading), but plain old stock trading is not zero sum. That is to say, if you were to invest \"\"at random\"\", you would on average make money. That's because the market as a whole makes money - it goes up over time (6-10% annually, averaged over time). That's because you're not just gambling when you buy a stock; you're actually contributing money to a company (directly or indirectly), which it uses to fund activities that (on average) make money. When you buy Caterpillar stock, you're indirectly funding Caterpillar building tractors, which they then sell for a profit, and thus your stock appreciates in value. While not every company makes a profit, and thus not every stock appreciates in true value, the average one does. To some extent, buying index funds is pretty close to \"\"investing at random\"\". It has a far lower risk quotient, of course, since you're not buying a few stocks at random but instead are buying all stocks in an index; but buying stocks from the S&P 500 at random would on average give the same return as VOO (with way more volatility). So for one, you definitely could do worse than 50/50; if you simply sold the market short (sold random stocks short), you would lose money over time on average, above and beyond the transaction cost, since the market will go up over time on average. Secondly, there is the consideration of limited and unlimited gains or losses. Some trades, specifically some option trades, have limited potential gains, and unlimited potential losses. Take for example, a simple call option. If you sell a naked call option - meaning you sell a call option but don't own the stock - for $100, at a strike price of $20, for 100 shares, you make money as long as the price of that stock is under $21. You have a potential to make $100, because that's what you sold it for; if the price is under $20, it's not exercised, and you just get that $100, free. But, on the other hand, if the stock goes up, you could potentially be out any amount of money. If the stock trades at $24, you're out $400-100 = $300, right? (Plus transaction costs.) But what if it trades at $60? Or $100? Or $10000? You're still out 100 * that amount, so in the latter case, $1 million. It's not likely to trade at that point, but it could. If you were to trade \"\"at random\"\", you'd probably run into one of those types of situations. That's because there are lots of potential trades out there that nobody expects anyone to take - but that doesn't mean that people wouldn't be happy to take your money if you offered it to them. That's the reason your 16.66 vs 83.33 argument is faulty: you're absolutely right that if there were a consistently losing line, that the consistently winning line would exist, but that requires someone that is willing to take the losing line. Trades require two actors, one on each side; if you're willing to be the patsy, there's always someone happy to take advantage of you, but you might not get a patsy.\"",
"title": ""
},
{
"docid": "7383dd763f68e1302c984a493b88e7fe",
"text": "I don't believe the decision is decided by age or wealth. You only stock pick when a) you enjoy the process because it takes time and if you consider it 'work' then the cost will probably not be offset by higher returns. b) you must have the time to spend trading, monitoring, choosing, etc. c) you must have the skills/experience to 'bring something to the table' that you think gives you an edge over everyone else. If you don't then you will be the patsy that others make a profit off.",
"title": ""
},
{
"docid": "6e9ebc57e4df203c6ab584cc9e5ec0ed",
"text": "\"First of all, the annual returns are an average, there are probably some years where their return was several thousand percent, this can make a decade of 2% a year become an average of 20% . Second of all, accredited investors are allowed to do many things that the majority of the population cannot do. Although this is mostly tied to net worth, less than 3% of the US population is registered as accredited investors. Accredited Investors are allowed to participate in private offerings of securities that do not have to be registered with the SEC, although theoretically riskier, these can have greater returns. Indeed a lot of companies that go public these days only do so after the majority of the growth potential is done. For example, a company like Facebook in the 90s would have gone public when it was a million dollar company, instead Facebook went public when it was already a 100 billion dollar company. The people that were privileged enough to be ALLOWED to invest in Facebook while it was private, experienced 10000% returns, public stock market investors from Facebook's IPO have experienced a nearly 100% return, in comparison. Third, there are even more rules that are simply different between the \"\"underclass\"\" and the \"\"upperclass\"\". Especially when it comes to leverage, the rules on margin in the stock market and options markets are simply different between classes of investors. The more capital you have, the less you actually have to use to open a trade. Imagine a situation where a retail investor can invest in a stock by only putting down 25% of the value of the stock's shares. Someone with the net worth of an accredited investor could put down 5% of the value of the shares. So if the stock goes up, the person that already has money would earn a greater percentage than the peon thats actually investing to earn money at all. Fourth, Warren Buffett's fund and George Soros' funds aren't just in stocks. George Soros' claim to fame was taking big bets in the foreign exchange market. The leverage in that market is much greater than one can experience in the stock market. Fifth, Options. Anyone can open an options contract, but getting someone else to be on the other side of it is harder. Someone with clout can negotiate a 10 year options contract for pretty cheap and gain greatly if their stock or other asset appreciates in value much greater. There are cultural limitations that prompt some people to make a distinction between investing and gambling, but others are not bound by those limitations and can take any kind of bet they like.\"",
"title": ""
},
{
"docid": "9825521e8c224412f832211f9404e01c",
"text": "> The stock market measures individual companies' ups and downs, right? Not precisely, no. If anything it measures... 1. Information 2. Risk and Riskiness 3. Market Sentiment > Perhaps it could even gain over my life. One would assume that this would be a relatively flat graph, with little if any trend, and occasional spikes upwards and downwards. It'd also be subject to caps and floors, unlike the market which is only floored (at 0). > I don't know if anyone could come up with a kind of standardised measurement we could use to do this. It'd be impossible. Happiness is subjective *and* relative. Getting a million bucks might make me happy, but Bill Gates bored. Having a child can be conflicting intensely. The death of a loved one could be both sad and a relief.",
"title": ""
},
{
"docid": "2a0647d77fef4096af105b3852b291cd",
"text": "\"You can hold a wide variety of investments in your TFSA account, including stocks such as SLF. But if the stocks are being purchased via a company stock purchase plan, they are typically deposited in a regular margin account with a brokerage firm (a few companies may issue physical stock certificates but that is very rare these days). That account would not be a TFSA but you can perform what's called an \"\"in-kind\"\" transfer to move them into a TFSA that you open with either the same brokerage firm, or a different one. There will be a fee for the transfer - check with the brokerage that currently holds the stock to find out how costly that will be. Assuming the stock gained in value while you held it outside the TFSA, this transfer will result in capital gains tax that you'll have to pay when you file your taxes for the year in which the transfer occurs. The tax would be calculated by taking the value at time of transfer, minus the purchase price (or the market value at time of purchase, if your plan allowed you to buy it at a discounted price; the discounted amount will be automatically taxed by your employer). 50% of the capital gain is added to your annual income when calculating taxes owed. Normally when you sell a stock that has lost value, you can actually get a \"\"capital loss\"\" deduction that is used to offset gains that you made in other stocks, or redeemed against capital gains tax paid in previous years, or carried forward to apply against gains in future years. However, if the stock decreased in value and you transfer it, you are not eligible to claim a capital loss. I'm not sure why you said \"\"TFSA for a family member\"\", as you cannot directly contribute to someone else's TFSA account. You can give them a gift of money or stocks, which they can deposit in their TFSA account, but that involves that extra step of gifting, and the money/stocks become their property to do with as they please. Now that I've (hopefully) answered all your questions, let me offer you some advice, as someone who also participates in an employee stock purchase plan. Holding stock in the company that you work for is a bad idea. The reason is simple: if something terrible happens to the company, their stock will plummet and at the same time they may be forced to lay off many employees. So just at the time when you lose your job and might want to sell your stock, suddenly the value of your stocks has gone way down! So you really should sell your company shares at least once a year, and then use that money to invest in your TFSA account. You also don't want to put all your eggs in one basket - you should be spreading your investment among many companies, or better yet, buy index mutual funds or ETFs which hold all the companies in a certain index. There's lots of good info about index investing available at Canadian Couch Potato. The types of investments recommended there are all possible to purchase inside a TFSA account, to shelter the growth from being taxed. EDIT: Here is an article from MoneySense that talks about transferring stocks into a TFSA. It also mentions the importance of having a diversified portfolio!\"",
"title": ""
}
] |
fiqa
|
e5546400a617d146b92d37dd82e41f15
|
What is the risk-neutral probability?
|
[
{
"docid": "cccddce7245c2fc6e6ab69142941c94c",
"text": "\"You have actually asked several questions, so I think what I'll do is give you an intuition about risk-neutral pricing to get you started. Then I think the answer to many of your questions will become clear. Physical Probability There is some probability of every event out there actually occurring, including the price of a stock going up. That's what we call the physical probability. It's very intuitive, but not directly useful for finding the price of something because price is not the weighted average of future outcomes. For example, if you have a stock that is highly correlated with the market and has 50% chance of being worth $20 dollars tomorrow and a 50% chance of being worth $10, it's value today is not $15. It will be worth less, because it's a risky stock and must earn a premium. When you are dealing with physical probabilities, if you want to compute value you have to take the probability-weighted average of all the prices it could have tomorrow and then add in some kind of compensation for risk, which may be hard to compute. Risk-Neutral Probability Finance theory has shown that instead of computing values this way, we can embed risk-compensation into our probabilities. That is, we can create a new set up \"\"probabilities\"\" by adjusting the probability of good market outcomes downward and increasing the probability of bad market outcomes. This may sound crazy because these probabilities are no longer physical, but it has the desirable property that we then use this set of probabilities to price of every asset out there: all of them (equity, options, bonds, savings accounts, etc.). We call these adjusted probabilities that risk-neutral probabilities. When I say price I mean that you can multiply every outcome by its risk-neutral probability and discount at the risk-free rate to find its correct price. To be clear, we have changed the probability of the market going up and down, not our probability of a particular stock moving independent of the market. Because moves that are independent of the market do not affect prices, we don't have to adjust the probabilities of them happening in order to get risk-neutral probabilities. Anyway, the best way to think of risk-neutral probabilities is as a set of bogus probabilities that consistently give the correct price of every asset in the economy without having to add a risk premium. If we just take the risk-neutral probability-weighted average of all outcomes and discount at the risk-free rate, we get the price. Very handy if you have them. Risk-Neutral Pricing We can't get risk-neutral probabilities from research about how likely a stock is to actually go up or down. That would be the physical probability. Instead, we can figure out the risk-neutral probabilities from prices. If a stock has only two possible prices tomorrow, U and D, and the risk-neutral probability of U is q, then Price = [ Uq + D(1-q) ] / e^(rt) The exponential there is just discounting by the risk-free rate. This is the beginning of the equations you have mentioned. The main thing to remember is that q is not the physical probability, it's the risk-neutral one. I can't emphasize that enough. If you have prespecified what U and D can be, then there is only one unknown in that equation: q. That means you can look at the stock price and solve for the risk neutral probability of the stock going up. The reason this is useful is that you can same risk-neutral probability to price the associated option. In the case of the option you don't know its price today (yet) but you do know how much money it will be worth if the stock moves up or down. Use those values and the risk-neutral probability you computed from the stock to compute the option's price. That's what's going on here. To remember: the same risk-neutral probability measure prices everything out there. That is, if you choose an asset, multiply each possibly outcome by its risk-neutral probability, and discount at the risk-free rate, you get its price. In general we use prices of things we know to infer things about the risk-neutral probability measure in order to get prices we do not know.\"",
"title": ""
}
] |
[
{
"docid": "a82bece8a7b6c04dce89b387fe72c88e",
"text": "To get the probability of hitting a target price you need a little more math and an assumption about the expected return of your stock. First let's examine the parts of this expression. IV is the implied volatility of the option. That means it's the volatility of the underlying that is associated with the observed option price. As a practical matter, volatility is the standard deviation of returns, expressed in annualized terms. So if the monthly standard deviation is Y, then Y*SQRT(12) is the volatility. From the above you can see that IV*SQRT(DaysToExpire/356) de-annualizes the volatility to get back to a standard deviation. So you get an estimate of the expected standard deviation of the return between now and expiration. If you multiply this by the stock price, then you get what you have called X, which is the standard deviation of the dollars gained or lost between now and expiration. Denote the price change by A (so that the standard deviation of A is X). Note that we seek the expression for the probability of hitting a target level, Q, so mathematically we want 1 - Pr( A < Q - StockPrice) We do 1 minus the probability of being below this threshold because cumulative distribution functions always find the probability of being BELOW a threshold, not above. If you are using excel and assuming a mean of zero for returns, the probability of hitting or exceeding Q at expiration, then, is That's your answer for the probability of exceeding Q. Accuracy is in the eye of the beholder. You'd have to specify a criterion by which to judge it to know the answer. I'm sure more sophisticated methods exist that are more unbiased and have less error, but I think it's a fine first approximation.",
"title": ""
},
{
"docid": "53119f50382b91202397bc9c9433a5eb",
"text": "This doesn't make sense in an economic context. For justice to provide sufficient deterrent, it needs to be rational to avoid a crime. If your probability of being caught is comparatively lower, the punishment needs to be higher in order to remain a deterrent. Basically, P(get caught) * Punitive Cost > Profit",
"title": ""
},
{
"docid": "351f89bd9a41b943744b8ce95e967cdb",
"text": "Excellent, very sharp. No it will not be vega neutral exactly! If you think about it, what does a higher vol imply? That the delta of the option is higher than under BS model. Therefore, the vega should also be greater (simplistic explanation but generally accurate). So no, if you trade a 25-delta risky in equal size per leg, the vega will not be neutral. But, in reality, that is a very small portion of your risk. It plays a part, but in general the vanna position dominates by many many multiples. What do you do that you asked such a question, if you don't mind?",
"title": ""
},
{
"docid": "93ac5c7e87fbf813b47b44d966bcd307",
"text": "\"Yes, and the math that tells you when is called the Kelly Criterion. The Kelly Criterion is on its face about how much you should bet on a positive-sum game. Imagine you have a game where you flip a coin, and if heads you are given 3 times your bet, and if tails you lose your bet. Naively you'd think \"\"great, I should play, and bet every dollar I have!\"\" -- after all, it has a 50% average return on investment. You get back on average 1.5$ for every dollar you bet, so every dollar you don't bet is a 0.5$ loss. But if you do this and you play every day for 10 years, you'll almost always end up bankrupt. Funny that. On the other hand, if you bet nothing, you are losing out on a great investment. So under certain assumptions, you neither want to bet everything, nor do you want to bet nothing (assuming you can repeat the bet almost indefinitely). The question then becomes, what percentage of your bankroll should you bet? Kelly Criterion answers this question. The typical Kelly Criterion case is where we are making a bet with positive returns, not an insurance against loss; but with a bit of mathematical trickery, we can use it to determine how much you should spend on insuring against loss. An \"\"easy\"\" way to undertand the Kelly Criterion is that you want to maximize the logarithm of your worth in a given period. Such a maximization results in the largest long-term value in some sense. Let us give it a try in an insurance case. Suppose you have a 1 million dollar asset. It has a 1% chance per year of being destroyed by some random event (flood, fire, taxes, pitchforks). You can buy insurance against this for 2% of its value per year. It even covers pitchforks. On its face this looks like a bad deal. Your expected loss is only 1%, but the cost to hide the loss is 2%? If this is your only asset, then the loss makes your net worth 0. The log of zero is negative infinity. Under Kelly, any insurance (no matter how inefficient) is worth it. This is a bit of an extreme case, and we'll cover why it doesn't apply even when it seems like it does elsewhere. Now suppose you have 1 million dollars in other assets. In the insured case, we always end the year with 1.98 million dollars, regardless of if the disaster happens. In the non-insured case, 99% of the time we have 2 million dollars, and 1% of the time we have 1 million dollars. We want to maximize the expected log value of our worth. We have log(2 million - 20,000) (the insured case) vs 1% * log(1 million) + 99% * log(2 million). Or 13.7953 vs 14.49. The Kelly Criterion says insurance is worth it; note that you could \"\"afford\"\" to replace your home, but because it makes up so much of your net worth, Kelly says the \"\"hit it too painful\"\" and you should just pay for insurance. Now suppose you are worth 1 billion. We have log(1 billion - 20k) on the insured side, and 1%*log(999 million) + 99% * log(1 billion) on the uninsured side. The logs of each side are 21.42 vs 20.72. (Note that the base of the logarithm doesn't matter; so long as you use the same base on each side). According to Kelly, we have found a case where insurance isn't worth it. The Kelly Criterion roughly tells you \"\"if I took this bet every (period of time), would I be on average richer after (many repeats of this bet) than if I didn't take this bet?\"\" When the answer is \"\"no\"\", it implies self-insurance is more efficient than using external insurance. The answer is going to be sensitive to the profit margin of the insurance product you are buying, and the size of the asset relative to your total wealth. Now, the Kelly Criterion can easily be misapplied. Being worth financially zero in current assets can easily ignore non-financial assets (like your ability to work, or friends, or whatever). And it presumes repeat to infinity, and people tend not to live that long. But it is a good starting spot. Note that the option of bankruptcy can easily make insurance not \"\"worth it\"\" for people far poorer; this is one of the reasons why banks insist you have insurance on your proprety. You can use Kelly to calculate how much insurance you should purchase at a given profit margin for the insurance company given your net worth and the risk involved. This can be used in Finance to work out how much you should hedge your bets in an investment as well; in effect, it quantifies how having money makes it easier to make money.\"",
"title": ""
},
{
"docid": "ad95ac2efa8c6f348e8f9de9c1bdc83f",
"text": "Risk and return always go hand by hand.* Risk is a measure of expected return volatility. The best investment at this stage is a good, easy to understand but thorough book on finance. *Applies to efficient markets only.",
"title": ""
},
{
"docid": "52711cc145662d771c2d381f9909a103",
"text": "A number of ways exist to calculate the chances of a particular outcome. Options, for example, use current price, cost of money, and volatility among other factors to price the chance of an underlying asset reaching a certain price in a certain timeframe. A graphical forecast simply puts these calculations into a visual format. That said, it appears the image you offer shows the prediction as it existed in the past along with how the stock has done since. A disclaimer - The odds of a fair die being rolled to a given number are 1 in 6. It's a fact. With stocks, on the other hand, models try to simulate real life and many factors can't be accounted for.",
"title": ""
},
{
"docid": "1507aaef499b0cce4fb9076b9116d3d3",
"text": "How about looking into the market price of risk? Ive always wanted to know if risk is or should be priced the same across markets/asset classes/etc. Eh? Let me know what you figure out. Edit: I just realized you people probably consider it to be the Sharpe ratio. That's not what I meant. I meant in the sense of option pricing.",
"title": ""
},
{
"docid": "bf07ec9e09b72c3b44f4c116f1caed05",
"text": "Someone entering a casino with $15 could employ a very simple strategy and have a better-than-90% chance of walking out with $16. Unfortunately, the person would have a non-trivial chance (about one in 14) of walking out with $0. If after losing $15 the person withdrew $240 from the bank and tried to win $16, the person would have a better-than-90% chance of succeeding and ending up ahead (holding the original $15, plus the additional $240, plus $1) but would have at that point about a one in 14 chance from that point of losing the $240 along with the original $15. Measured from the starting point, you'd have about a 199 out of 200 chance of gaining $1, and a one out of 200 chance of losing $240. Market-timing bets are like that. You can arrange things so you have a significant chance of making a small profit, but at the risk of a large downside. If you haven't firmly decided exactly how much downside you are willing to accept, it's very easy to simultaneously believe you don't have much money at risk, but that you'll be able to win back anything you lose. The only way you can hope to win back anything you lose is by bringing a lot more money to the table, which will of course greatly increase your downside risk. The probability of making money for the person willing to accept $15 of downside risk to earn $1 is about 93%. The probability of making money for the person willing to accept $255 worth of risk is about 99.5%. It's easy to see that there are ways of playing which have a 99.5% chance of winning, and that there are ways of playing that only have a 15:1 downside risk. Unfortunately, the ways of playing that have the smaller risk don't have anything near a 99.9% chance of winning, and those that have a better chance of winning have a much larger downside risk.",
"title": ""
},
{
"docid": "770018f155276945e734c862080a7847",
"text": "\"A subsidy is a benefit. While you're right most of the time it is a crude \"\"transfer of wealth by the US government\"\" the formal intent of a subsidy is to assist so as to confer an advantage or mitigate a disadvantage. If as you say \"\"discounting the risk premium\"\" actively by the US government so as to confer, in the words of Ueda and Di Mauro, a \"\"funding cost advantage [to] SIFIs [of] around 60bp in 2007 and 80bp in 2009\"\" is not a subsidy, then what is it?\"",
"title": ""
},
{
"docid": "a8322b4c03d89bd5951593ec8cc1b48a",
"text": "I would say binomial tree, except your last sentence, > The probabilities of the various outcomes are unknown. causes issues with that. You could do a scenario analysis in which you compare values using different %chances of up vs. down.",
"title": ""
},
{
"docid": "c6d90f991f80e65e67aa8585a99deacf",
"text": "\"This is the best tl;dr I could make, [original](https://www.richmondfed.org/-/media/richmondfedorg/publications/research/working_papers/2017/pdf/wp17-12.pdf) reduced by 98%. (I'm a bot) ***** > 7 3 Local Dynamics The local dynamics of the simple search and matching model have been studied by Krause and Lubik. > In the previous literature, for example Mendes and Mendes and Bhattacharya and Bunzel, the backward dynamics are defined via the map g by rearranging to isolate &theta;t : \u0010 \u00111/&xi; &theta;t = a&theta;t+1 c&theta;t+1 + d = g. 11 Under risk aversion, the dynamics depend on the time path of output yt. > 4.2 Stability Properties We now study the dynamics of the backward map zt = f. We first establish the properties of the function f. We then study the stability properties of the steady state, where we distinguish between two broad areas of dynamics in the backward map, namely stable and unstable. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/788alk/fed_global_dynamics_in_a_search_and_matching/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~233564 tl;drs so far.\"\") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr \"\"PM's and comments are monitored, constructive feedback is welcome.\"\") | *Top* *keywords*: **dynamic**^#1 **model**^#2 **0.1**^#3 **1**^#4 **map**^#5\"",
"title": ""
},
{
"docid": "d62b517174738aa290ba762275cecc45",
"text": "if I have a asset A with expected return of 100% and risk(measured by standard deviation) 1%, and asset B with expected return of 1% and risk 100%, would it be rational to put asset B into the portfolio ? No, because Modern Portfolio Theory would say that if there is another asset (B2) with the same (or higher) return but less risk (which you already have in asset A), you should invest in that. If those are the only two assets you can choose from, you would invest completely in Asset A. The point of diversification is that, so long as two assets aren't perfectly positively correlated (meaning that if one moves up the other always moves up), then losses in one asset will sometimes be offset by gains in another, reducing the overall risk.",
"title": ""
},
{
"docid": "7da3ed09c146ab37ff05f628df76df15",
"text": "Can you give more detail on the problem? If you can model it with a one step binomial tree, then the price is favourable as long as the chance to multiply is P(S^1 = 10 S^0 ) > 0.1. If you don't know the probabilities, then the usual go-to is to determine what probability space is that would lead to an expected profit (plus an error, and a cushion for risk aversion if the bet is sufficiently large).",
"title": ""
},
{
"docid": "59ee99fc3853372dbb802b2e295679f8",
"text": "Dummy example to explain this. Suppose your portfolio contained just two securities; a thirty year US government bond and a Tesla stock. Both of those position are currently valued at $1mm. The Tesla position however is very volatile with its daily volatility being about 5% (based on the standard deviation of its daily return) whole there bond's daily volatility is 1%. Then the Tesla position is 5/6 of your risk while being only 1/2 of the portfolio. Now if in month the Tesla stock tanks to half is values then. Then it's risk is half as much as before and so it's total contribution to risk has gone down.",
"title": ""
},
{
"docid": "fef760738b2b90f87c049bb8f0a1675f",
"text": "Consider the black-scholes-merton result. Notice that the expected value of the bond is its present value, discounted from the expiration date. The same is not applied to the price of the stock. The further in the future you go, the less value the bond carries because it's being discounted into oblivion. Now, looking at d1, as time tends towards infinity, so does d1. N(d1) is a probability. The higher d1, the higher the probability and vice versa, so as time increases, the probability for S trends to 100% while K is discounted away. Note that the math doesn't yet fully model reality, as extremely long dated options such as the European puts Buffett wrote were traded at ~1/2 the value the model said he should've. He still had to take a GAAP loss: http://www.berkshirehathaway.com/letters/2008ltr.pdf",
"title": ""
}
] |
fiqa
|
0bd5400342aa9e422d62001eff9ef283
|
Prices go up and salary doesn't: where goes delta?
|
[
{
"docid": "fcb7db1a6c827df2536e19a202f8f991",
"text": "\"Where goes the Delta? To the sea, of course. Your question is very valid and for once, I think most of the answers are too involved into mechanical details and are badly missing the big picture. At the risk of over simplifying things, let me try to describe the situation in broad strokes: Inflation: the volume of money grows faster than production (including services). Deflation: production increase faster than the volume of money. Imagine an economy with 10 products and $10. 1 product = $1. In an inflationary scenario, money available increase: $20 for 10 products. 1 product = $2. In a deflationary scenario, money available decrease: $5 for 10 products. 1 product = $0.5. So far, it's pretty textbook. Now onto the stuff that you don't usually read in textbooks: Time. Say 10 people are attending an auction, each with $10 bucks. 10 items are for sale. $100 and 10 items. Item price is $10. Now, if just before opening the bidding, you go around and give each person $40, every one has $50. Each product sells for $50. That's the picture people have of inflation. Prices have increased, but everybody has more money, so it comes down to the same thing. Now, let's bring this example closer to reality: You have to distribute $400, so the total amount of money is $500, which means that the normal price of each item should be $50. Now, imagine that instead of giving money to everyone at the same time, you started by giving $40 to 1 guy who was hanging out in front. The auction starts. While you go around distributing the money, the first guy manages to buy 2 items at $10 each. Now, there is $480 in the market, and only 8 items, making each item $60 on average. The next guy to get money manages to snap 2 items at $15. 6 items left and $450 in play. Each item now costs $75....and keep increasing in price as things move along. People who get the money early buy items under their real value, and people who get paid at the end pick up the tab, because by then, there are only a few items left. Back to reality, while inflation means that wages eventually increase (and they do), actual purchasing decrease for most people due to this simple trick. Employees are pretty much at the end of the chain. Income tax Another major source of \"\"signal loss\"\" is income tax. It works by brackets, as you certainly know. Simplifying again because I am lazy: Take a guy who earns $100. Pays no taxes. Can buy 100 products at $1 each. Now, put in some inflation... He earns $500. He pays $50 in taxes and can buy 90 products at $5 each. By the time he earns $10,000, he can only buy 50 products on account of income tax. So this is another area where you are bleeding purchasing power, and why income tax, which was originally presented as a tax for the ultra-rich is now a fact of life for most people (except the ultra-rich, of course). Money as debt Next stop: Money itself. Money is created as debt in our society. At the risk of over-simplifying things again, let's say Bank A has $1000 in assets. In the fractional reserve system (our current system), Bank A can lend out many times over that amount. Let's say $9,000, for a total of $10,000 (much more in reality). And of course, it lends that money at interest. When bank A has made $10,000 available through 10% interest loans, the total amount of money has increased by $10,000, but when the loans are paid back, $11,000 must be paid to the bank, so the net result of the operation is that $1,000 get taken out of the market. This system explains why almost all companies and governments have huge debts, and why most of the world's large companies belong to financial institutions of some kind, and why most of the world's wealth rest in very very few hands. To fully answer your question and provide details and references and names, one would have to write a book or 5. There is a lot more than can be said on the subject, and of course, all the examples given here are extremely simplified, but I think they illustrate the key issues pretty well. Bottom-line is that our system is designed that way. Our economic system is rigged and the delta bleeds out on automatic.\"",
"title": ""
},
{
"docid": "2740fb3fb253ef1a93365882d51669df",
"text": "Purchasing commodities (whose prices are increasing rapidly), improving corporate profitability, buying imports (the US dollar is weaker than it was, so the price of everything imported has gone up), paying down corporate debt, etc.",
"title": ""
},
{
"docid": "31bde56d88360f6b81c9690a0ede9fe8",
"text": "One of the byproducts of free trade is that there is now a global labor market. So companies routinely review their operations and think strategically about where the company is going. Standard options are: Because the disincentives that once existed in the past are gone (the need for humans to do work, tariffs, regulation, poor infrastructure in the developing world), the available supply of labor is greater and demand lower -- thus wages are falling in real terms. Think in the simplest terms in an office environment. In 1980 to make photocopies, you needed a Xerox machine that required a technician on site every couple of weeks to make adjustments, change toner, etc. There was probably a local rep you called to schedule break/fix serivce. Now technology has replaced that copy machine with a cheap multi-function device that requires no maintenance and any technical support is delivered by a person sitting in a Indian call center. So to answer your question, the incremental money from rising prices goes to a number a places. Alot of it goes to oil producers and other commodity producers. Much of it consists of indirect costs that fulfill other mandated services -- when you buy something, buried in that cost are things like health insurance, prescription drugs and school taxes.",
"title": ""
},
{
"docid": "b58a17c07773d726555b5e59b03903ed",
"text": "\"Salaries normally shouldn't fluctuate with inflation and deflation... Inflation prevents consumers from spending (prices get too high), ultimately taking money out of circulation. This causes the market to go in to deflation (or at least deflate back to normal). That's when people begin to spend again, and start the cycle all over again. Now... Imagine if salaries increased with inflation... Inflation would never end. Everyone could keep affording the high prices. A Starbucks coffee would eventually cost $150, but the \"\"middle-class\"\" would all be millionaires. Your \"\"small-change\"\" would consist of a wad of useless bills, and the government would have to continually print out more money just to keep up. NOTE: This is not a direct answer to \"\"where goes delta?\"\", but would more be directed to the part \"\"Prices go up and salary doesn't\"\".\"",
"title": ""
},
{
"docid": "04981ace31d06259a6ce292baf8a6279",
"text": "I expected a word or two on the price elasticity of demand here :) Andrey, Your question needs slight revision in its current form. Rising prices actually do not mean increased profitability for a company. The quantity they sell also pays a huge part and actually is correlated to the price at which they sell the goods (and other factors such as the price at which their competitor sells the goods etc., but we will ignore it for simplicity). The net profit of sales for any firm is equal to (Qty x Sale Price) - COGS - SG&A - taxes - other expenses where, COGS means cost of goods sold SG&A means sales, general and admin costs (e.g., cleaning the inventory storage area daily so that the goods stay fresh etc.) other expenses include any miscellaneous other costs that the firm incurs to make the sale. Now, if everything in that equation remains same (COGS, SG&A, taxes, and other expenditures), rising prices will only translate into a higher profit if the quantity does not fall by the same margin. Prices may also rise simply as a response to risking COGS, SG&A or other expenditures --the latter may be observed in inflationary environments. In such a case, the supplying firm can end up losing its profit margin if the quantity falls by more than the price rise.",
"title": ""
}
] |
[
{
"docid": "2affc10785332c9954c413bcfa677e8f",
"text": "\"To add to MrChrister's answer: Canada also has a Consumer Price Index (CPI) used to measure inflation that is distinct and separate from that maintained by the United States. There are differences in inflation between the U.S. and Canada because our currencies are different, and there may be different items in the \"\"basket\"\" of goods that constitutes the index. You can find current information on the Canadian CPI at Statistics Canada, here: Latest release from the Consumer Price Index. Also, the Bank of Canada – our central bank – maintains a free online Inflation Calculator. The BoC's inflation calculator is handy because you can enter a dollar amount for a past date and it will figure out what that would be in today's dollars. For instance, $100 in 1970 dollars had the same purchasing power (under the CPI) as $561.76 in 2009 dollars! And you're right – if you get a salary increase that is less than the rate of inflation, then in theory you have lost purchasing power. So, anybody really looking for a raise ought to make an effort to get more than the increase in CPI. Of course, some employers are counting on you not knowing that, because any increase that's less than CPI is effectively a salary decrease; which could mean more profit for them, if they are able to increase their prices / revenues at inflation or better. Finally, consider that salary & wage increases also contribute to inflation! Perhaps you've heard of the wage/price inflation spiral. If you haven't, there's more on that here and here.\"",
"title": ""
},
{
"docid": "65249dc846a82a10509e3d93e81b8325",
"text": "\"Is there ever any ambiguity on what that that exact strike is in delta space, or does everyone back it out from the pricing model the same way? I ask, because in my product nearly everyone runs a heavier delta to the put (the severity of that varies). So on trades that are \"\"tied up\"\", everyone participating on it can have slightly different deltas that they are modeling\"",
"title": ""
},
{
"docid": "80c583af794eda201b0de82fc49db9b6",
"text": "Actually it has been disproven that minimum wage leads to higher earnings for companies. You are without a doubt wrong on that fact. Because money has fluctuating value, more money does not necessarily lead to higher purchasing power. This is pretty well known by most monetary theorist. It's actually pretty ridiculous to believe otherwise. But hey, if you want to be wrong be my guest.",
"title": ""
},
{
"docid": "fca905748df3570644b395fc9ae8fbc7",
"text": "\"This is pretty meaningless and somewhat misleading. They measured price increases mostly on things that were produced elsewhere and would not be expected to see price increases (e.g. gas). Most retail prices are not heavily impacted by local labor prices. For many goods, local retail labor costs would constitute less than 5% of the total cost. Plus, local retailers still have to compete with online retailers, as well as retailers outside the city limits, so they can't dramatically hike prices and be competitive. If the min wage increases did impact prices, it's more likely that local retailers would see their margins shrink and some of them would go out of business as a result. On the things that are produced locally, such as food from a restaurant, they found significant price increases. There's also been significant evidence showing that restaurant job creation lagged behind in Seattle versus the rest of Washington state. http://www.aei.org/publication/some-early-results-from-seattles-radical-experiment-with-a-15-an-hour-minimum-wage-fewer-jobs-fewer-hours/ https://www.aei.org/publication/minimum-wage-effect-seattle-area-restaurant-jobs-have-fallen-900-this-year-vs-6200-food-jobs-in-rest-of-state/ They also seem to have forgotten to mention substitution effects for labor; such as restaurants using more technology to eliminate labor. Overall, the articles reads like yet another \"\"rose colored classes\"\" spin on one of the most detrimental economic policies in the US. It's almost silly watching people try to find reasons how \"\"increasing the price of labor\"\" and \"\"destroying contractual freedom for unskilled laborers\"\" creates magical free lunches.\"",
"title": ""
},
{
"docid": "9f6afef6b64a4f1725e6c9221de1d9be",
"text": "Yep, I often think that baby boomers don't understand that there's inflation and that the salary they had years ago might not be good enough.. Sure, median income has decreased in the last decade, but it's no excuse for paying engineers 45K because they'll jump ship as soon as they put their resume on Monster and get offer of 60-80k.",
"title": ""
},
{
"docid": "cd80bd4bbb567bb4dd7ffaf39b6d6e0b",
"text": "Usually when a stock is up-trending or down-trending the price does not go up or down in a straight line. In an uptrend the price may go up over a couple of days then it could go down the next day or two, but the general direction would be up over the medium term. The opposite for a downtrend. So if the stock has been generally going up over the last few weeks, it may take a breather for a week or two before prices continue up again. This breather is called a retracement in the uptrend. The Fibonacci levels are possible amounts by which the price might retract before it continues on its way up again. By the way 50% is not actually a Fibonacci Retracement level but it is a common retracement level which is usually used in combination with the Fibonacci Retracement levels.",
"title": ""
},
{
"docid": "abde78073282f0ab99adf09574459065",
"text": "This sort of thinking is one of the problems with economics. It's way too simplistic, and unrepresentative of how a company works. No company increases the price of a product because they hired a more expensive employee, unless said employee is dead weight. It might be a process engineer, that right now costs the company a bit more, but 12 months down the line will improve production efficiency by at least the value of his salary. And if they improve it more, by say 200% of their salary? Product price stays the same, he gets a pat on his back from the boss, and the company increases it's profits. And what usually happens when you nickel-and-dime your employees? They lose engagement and interest, or worst, they hire a shit employee for a shit salary and get little to no benefit from hiring.",
"title": ""
},
{
"docid": "2d5a638a8b9faa5ee29777fb9df9a222",
"text": "\"Your first article is all about analyzing the effect of minimum wage on employment by looking at rents. Their analysis \"\"assumes peoples' utility functions in a particular city depend on wages plus amenities less the cost of rent available in that city\"\" Basically if wages go up (due to a minimum wage hike for example) the city is more desirable to live in and people would lay more to live there. That is not at all the mechanism you were talking about and would not apply for a national raise in minimum wage. Why should I read the rest of your links when you didn't even read the first one?\"",
"title": ""
},
{
"docid": "0789f2f54cd1d242c521474bc9a7efa3",
"text": "The history of the last 100 years has demonstrated that inflation need not be a straight-line advance in price across the board. New technology has delivered productivity gains which have in many cases compensated for inflation. Keep in mind that price changes may be inflationary, but may not attributable to inflation. For example, the massive swing upward in gasoline prices had more to do with the market, specifically Chinese demand for gas than inflation. But increased fuel costs trickle into the prices of other commodities that we need to buy as well!",
"title": ""
},
{
"docid": "4f315abdca6c8233805b0f9339ee1385",
"text": "I think it's important to be clear what is being studied here. It's the effect of a more dramatic increase in the min wage than we've seen before. There are many studies which show no negative effect at all on employment in situations where gradual increases in the min wage happen. Just like there are several well known studies that compare similar cities with different minimum wages that show no negative affect on employment in the city with the higher wage. But in none of those situations was the wage ever increased quite like it was in Seattle, so that's the new thing to study here. So again, the study is clearly *not* trying to say that raising the minimum wage has a negative effect on employment. Rather it's looking at just this particular significant increase. For me, this really is an indictment on the unwillingness of congress to gradually raise the minimum wage over time using some sort of sensible inflationary benchmark. Had they been gradually inflating the wage over time to coincide with normal inflation, we could see a $12 min wage already that had no appreciable effect on employment. So is the solution a sudden correction to get to the wage up to a liveable standard in one, perhaps slightly painful to employment swoop? Or is it to go more gradually, meaning that you'll still remain decades behind inflation growth?",
"title": ""
},
{
"docid": "371e8f2e82be060229ed7fa33316d364",
"text": "The mechanism of supply and demand is imperfect. Producers don't know exactly how many purchasers/consumers for a good there are. Some goods, by their nature, are in short supply, and some are plentiful. The process of price discovery is one where (in a nominally free market) producers and purchasers make offers and counter-offers to assess what the price should be. As they do this the historical price changes, usually floating around some long-term average. As it goes up, we experience inflation. As it goes down, deflation. However, there isn't a fixed supply of producers and purchasers, so as new ones arrive and old ones leave, this too has an impact on supply and prices. Money (either in electronic or physical form) needs to be available to reflect the transactions and underpin the economy. Most central banks (at least in more established economies) aim for inflation of 2-4% by controlling the availability of money and the cost of borrowing new money. There are numerous ways they can do this (printing, issuing bonds, etc.). The reason one wants some degree of inflation is because employees will never accept a pay cut even when one would significantly improve the overall economy. Companies often decrease their prices in order to match lower demand, but employees don't usually accept decreased wages for decreased labour demand. A nominal degree of overall money inflation therefore solves this problem. Employees who get a below-inflation wage increase are actually getting a wage cut. Supply and demand must be matched and some inflation is the inevitable consequence of this.",
"title": ""
},
{
"docid": "f73c5e2421b687b44ad0d6913311ff7a",
"text": "As an expansion on the correct answer: Consider a really boring economy. Nothing changes; wages and prices stay constant for years at a time. Every month the Consumer Price Index stays at 0%. Then, something catastrophic happens, say on July 31, 2000. A cheap local source for a vital resource runs out, and it must be obtained from a higher cost source. Floods cut internal road networks, resulting in higher transportation costs. Whatever. The new situation is permanent. As a result, the next month, August, 2000, prices go up 5%. That is, 5% higher than the previous month, July, 2000, and 5% higher than a year previously, August 1999. There is a lot of consternation, and politicians each promise that they and only they can wrestle inflation to the ground. But, when the figures for September, 2000 come out, inflation stays the same. Prices are the same as in August, 2000, and 5% higher than in September, 1999. This goes on for months. Nothing changes, prices stay the same, and the inflation rate, year over year, stays at 5%. Finally, the figures for August, 2001 come out. Wonder of wonders; prices are the same as in August, 2000, and inflation drops to zero. And the politicians all take the credit. Short version: inflation year over year changes either because of what in now included in the month just past, or what is now excluded from a year ago.",
"title": ""
},
{
"docid": "63b7637214edacc81cb96fc946aaab97",
"text": "FYI...prices don't always go up. Inflation is a monetary phenomenon. I'm simplifying greatly here: if more money is printed (or the money supply increases through fractional reserve banking) and it is chasing the same amount of goods then prices will go up. Conversely, if money is held constant and the economy becomes more productive, producing more goods, then a constant amount of money is chasing an increasing amount of goods and prices go down. After the Civil War the greenback went back to being on a gold standard in 1879. After 1879 greenbacks could be redeemed for gold. Gold restricts money growth since it is difficult to obtain. Here are the price and wage indexes from 1869 - 1889 (from here): Notice from 1879 to 1889 that wholesale and consumer prices fall but wages start to increase. Imagine your salary staying the same (or even increasing) but the prices of items falling. Still don't think inflation is a monetary phenomenon? Here is a CPI chart from 1800 to 2007: Notice how the curve starts to go drastically up around 1970. What happen then? The US dollar went off the gold-exchange standard and the US dollar became a purely fiat currency backed by nothing but government decree which allows the Federal Reserve to print money ad nauseum.",
"title": ""
},
{
"docid": "d262fd91fe48c9dd57b1c42114c26ab5",
"text": "With the netural position delta strategy under high IV returns short vega,there is a possibility to profit from a decline in IV. Of course, if volatility rises higher, the position will lose money. It is therefore best to establish short vega delta-neutral positions when implied volatility is at levels that are in the 90th percentile ranking.",
"title": ""
},
{
"docid": "281b87ce29ace56b33b832593ffd7a81",
"text": "Avoiding tobacco, etc is fairly standard for a fund claiming ethical investing, though it varies. The hard one on your list is loans. You might want to check out Islamic mutual funds. Charging interest is against Sharia law. For example: http://www.saturna.com/amana/index.shtml From their about page: Our Funds favor companies with low price-to-earnings multiples, strong balance sheets, and proven businesses. They follow a value-oriented approach consistent with Islamic finance principles. Generally, these principles require that investors avoid interest and investments in businesses such as liquor, pornography, gambling, and banks. The Funds avoid bonds and other conventional fixed-income securities. So, it looks like it's got your list covered. (Not a recommendation, btw. I know nothing about Amana's performance.) Edit: A little more detail of their philosophy from Amana's growth fund page: Generally, Islamic principles require that investors share in profit and loss, that they receive no usury or interest, and that they do not invest in a business that is prohibited by Islamic principles. Some of the businesses not permitted are liquor, wine, casinos, pornography, insurance, gambling, pork processing, and interest-based banks or finance associations. The Growth Fund does not make any investments that pay interest. In accordance with Islamic principles, the Fund shall not purchase conventional bonds, debentures, or other interest-paying obligations of indebtedness. Islamic principles discourage speculation, and the Fund tends to hold investments for several years.",
"title": ""
}
] |
fiqa
|
3516417e8492fab7becbb9b5e40af2ea
|
Retirement Options for Income
|
[
{
"docid": "9c3f83e175a8cc33986f6538defbd934",
"text": "\"I can think of one major income source you didn't mention, dividends. Rather than withdrawing from your pension pot, you can roll it over to a SIPP, invest it in quality dividend growth stocks, then (depending on your pension size) withdraw only the dividends to live on. The goal here is that you buy quality dividend growth stocks. This will mean you rarely have to sell your investments, and can weather the ups and downs of the market in relative comfort, while using the dividends as your income to live off of. The growth aspect comes into play when considering keeping up with inflation, or simply growing your income. In effect, companies grow the size of their dividend payments and you use that to beat the effects of inflation. Meanwhile, you do get the benefit of principle growth in the companies you've invested in. I don't know the history of the UK stock market, but the US market has averaged over 7% total return (including dividends) over the long term. A typical dividend payout is not much better than your annuity option though -- 3% to 4% is probably achievable. Although, looking at the list of UK Dividend Champion list (companies that have grown their dividend for 25 years continuous), some of them have higher yields than that right now. Though that might be a warning sign... BTW, given all the legal changes around buy-to-lets recently (increases stamp duty on purchase, reduction in mortgage interest deduction, increased paperwork burden due to \"\"right to rent\"\" laws, etc.) you want to check this carefully to make sure you're safe on forecasting your return.\"",
"title": ""
},
{
"docid": "47d0174bbb4750ed16c6be1e7aa8e18d",
"text": "If you withdraw all (or most) of your pension 25% is tax free but the rest is treated as income upon which you will pay income tax at the usual UK rates. Withdrawing a lump sum to buy property is therefore unlikely to be 10% per annum as you'll spend years making up lost ground on the initial capital investment. If your pension is a self invested personal pension (a SIPP) you could buy property within the pension wrapper itself which would avoid the income tax hit. if you don't have a SIPP you may be able to convert your pension to a SIPP but you would be wise to seek professional advice about that. The UK government is also introducing an additional 3% stamp duty on properties which are not your first home so this may further impact your returns. This would apply whether you withdraw your pension as cash or buy the property within a SIPP. One other alternative to an annuity in the UK is called drawdown where you keep the money invested in your pension as it is now and withdraw an annual income. This means your tax bill is reduced as you get to use your annual allowance each year and will also pay less higher rate tax. The government provides more details on its website.",
"title": ""
},
{
"docid": "38209351c883c0ccdec99ec8f3586956",
"text": "\"I agree that you should CONSIDER a shares based dividend income SIPP, however unless you've done self executed trading before, enough to understand and be comfortable with it and know what you're getting into, I would strongly suggest that as you are now near retirement, you have to appreciate that as well as the usual risks associated with markets and their constituent stocks and shares going down as well as up, there is an additional risk that you will achieve sub optimal performance because you are new to the game. I took up self executed trading in 2008 (oh yes, what a great time to learn) and whilst I might have chosen a better time to get into it, and despite being quite successful over all, I have to say it's the hardest thing I've ever done! The biggest reason it'll be hard is emotionally, because this pension pot is all the money you've got to live off until you die right? So, even though you may choose safe quality stocks, when the world economy goes wrong it goes wrong, and your pension pot will still plummet, somewhat at least. Unless you \"\"beat the market\"\", something you should not expect to do if you haven't done it before, taking the rather abysmal FTSE100 as a benchmark (all quality stocks, right? LOL) from last Aprils highs to this months lows, and projecting that performance forwards to the end of March, assuming you get reasonable dividends and draw out £1000 per month, your pot could be worth £164K after one year. Where as with normal / stable / long term market performance (i.e. no horrible devaluation of the market) it could be worth £198K! Going forwards from those 2 hypothetical positions, assuming total market stability for the rest of your life and the same reasonable dividend payouts, this one year of devaluation at the start of your pensions life is enough to reduce the time your pension pot can afford to pay out £1000 per month from 36 years to 24 years. Even if every year after that devaluation is an extra 1% higher return it could still only improve to 30 years. Normally of course, any stocks and shares investment is a long term investment and long term the income should be good, but pensions usually diversify into less and less risky investments as they get close to maturity, holding a certain amount of cash and bonds as well, so in my view a SIPP with stocks and shares should be AT MOST just a part of your strategy, and if you can't watch your pension pot payout term shrink from 26 years to 24 years hold your nerve, then maybe a SIPP with stocks and shares should be a smaller part! When you're dependent on your SIPP for income a market crash could cause you to make bad decisions and lose even more income. All that said now, even with all the new taxes and loss of tax deductible costs, etc, I think your property idea might not be a bad one. It's just diversification at the end of the day, and that's rarely a bad thing. I really DON'T think you should consider it to be a magic bullet though, it's not impossible to get a 10% yield from a property, but usually you won't. I assume you've never done buy to let before, so I would encourage you to set up a spread sheet and model it carefully. If you are realistic then you should find that you have to find really REALLY exceptional properties to get that sort of return, and you won't find them all the time. When you do your spread sheet, make sure you take into account all the one off buying costs, build a ledger effectively, so that you can plot all your costs, income and on going balance, and then see what payouts your model can afford over a reasonable number of years (say 10). Take the sum of those payouts and compare them against the sum you put in to find the whole thing. You must include budget for periodic minor and less frequent larger renovations (your tenants WON'T respect your property like you would, I promise you), land lord insurance (don't omit it unless you maintain capability to access a decent reserve (at least 10-20K say, I mean it, it's happened to me, it cost me 10K once to fix up a place after the damage and negligence of a tenant, and it definitely could have been worse) but I don't really recommend you insuring yourself like this, and taking on the inherent risk), budget for plumber and electrician call out, or for appropriate schemes which include boiler maintenance, etc (basically more insurance). Also consider estate agent fees, which will be either finders fees and/or 10% management fees if you don't manage them yourself. If you manage it yourself, fine, but consider the possibility that at some point someone might have to do that for you... either temporarily or permanently. Budget for a couple of months of vacancy every couple of years is probably prudent. Don't forget you have to pay utilities and council tax when its vacant. For leaseholds don't forget ground rent. You can get a better return on investment by taking out a mortgage (because you make money out of the underlying ROI and the mortgage APR) (this is usually the only way you can approach 10% yield) but don't forget to include the cost of mortgage fees, valuation fees, legal fees, etc, every 2 years (or however long)... and repeat your model to make sure it is viable when interest rates go up a few percent.\"",
"title": ""
}
] |
[
{
"docid": "7b6a14735718b5db9645179bf66da501",
"text": "\"There is a basic difference between saving for voluntary retirement (i.e. choosing to do things other than work even though you could still work) and the need to save for later in life in general. Regardless of how much you like your job, a time will eventually come when you are no longer able to work, and you will need an alternate source of income to live from at that point. Unfortuately, this is also the time when most people generally have the highest medical bills as well, and may need other services such as long-term nursing home care. So even if you plan to work as long as possible, a retirement fund is an excellent way to plan for these needs as it is tax-advantaged and many companies offer matching contributions. I would simply recommend that you see \"\"retirement accounts\"\" as a good way to accomplish your goals - you don't have to use them to create a \"\"typical\"\" retirement. Once you've taken advantages of the match and tax subsidies, you may also wish to consider saving for an annuity. Fees can be high, so you will need to do your homework (generally, you want to wait and buy an immediate annuity), but this is another way to turn savings into guaranteed income once you need to stop working. Best of luck!\"",
"title": ""
},
{
"docid": "20f1eb0b7b0447afe91dcda52c1035e0",
"text": "By not saving some of your income you put yourself at risk of the following: If you are comfortable taking on those risks, then continue what you are doing (I'm not being sarcastic here...some people are perfectly comfortable taking on these risks). I plan on working until I die so I am not as concerned with saving for retirement but I do save some money for temporary job loss situations. Saving money presents its own set of issues (e.g. Where should I put the money?, Should I invest the money?, What type of investments?). If you have no interest in researching answers to these type of questions then I would suggest what others have already suggested: have part of your paycheck automatically siphoned into an account that can only be accessed by a trusted family member.",
"title": ""
},
{
"docid": "a448d95f22d848cd9953392e69d8a3c6",
"text": "If you exceed the income limit for deducting a traditional IRA (which is very low if you are covered by a 401(k) ), then your IRA options are basically limited to a Roth IRA. The Cramer person probably meant to compare 401(k) and IRA from the same pre-/post-tax-ness, so i.e. Traditional 401(k) vs. Traditional IRA, or Roth 401(k) vs. Roth IRA. Comparing a Roth investment against a Traditional investment goes into a whole other topic that only confuses what is being discussed here. So if deducting a traditional IRA is ruled out, then I don't think Cramer's advice can be as simply applied regarding a Traditional 401(k). (However, by that logic, and since most people on 401(k) have Traditional 401(k), and if you are covered by a 401(k) then you cannot deduct a Traditional IRA unless you are super low income, that would mean Cramer's advice is not applicable in most situations. So I don't really know what to think here.)",
"title": ""
},
{
"docid": "24636a04a95c3c08276dbab00b3e20a9",
"text": "Yes, quite easily, in fact. You left a lot of numbers out, so lets start with some assumptions. If you are at the median of middle income families in the US that might mean $70,000/year. 15% of that is an investment of $875 per month. If you invest that amount monthly and assume a 6% return, then you will have a million dollars at approximately 57 years old. 6% is a very conservative number, and as Ben Miller points out, the S&P 500 has historically returned closer to 11%. If you assumed an aggressive 9% return, and continued with that $875/month for 40 years until you turn 65, that becomes $4 million. Start with a much more conservative $9/hr for $18,720 per year (40 hours * 52 weeks, no overtime). If that person saved 14% of his/her income or about $219 per month from 25 to 65 years old with the same 9%, they would still achieve $1 million for retirement. Is it much harder for a poor person? Certainly, but hopefully these numbers illustrate that it is better to save and invest even a small amount if that's all that can be done. High income earners have the most to gain if they save and the most to lose if they don't. Let's just assume an even $100,000/year salary and modest 401(k) match of 3%. Even married filing jointly a good portion of that salary is going to be taxed at the 25% rate. If single you'll be hitting the 28% income tax rate. If you can max out the $18,000 (2017) contribution limit and get an additional $3,000 from an employer match (for a total monthly contribution of $1750) 40 years of contributions would become $8.2 million with the 9% rate of return. If you withdrew that money at 4% per year you would have a residual income of $300k throughout your retirement.",
"title": ""
},
{
"docid": "2a4b58782ce98a91cf8fa116d088a391",
"text": "\"I'd suggest you avoid the Roth for now and use pretax accounts to get the greatest return. I'd deposit to the 401(k), enough to get as much match as permitted, then use a traditional IRA. You should understand how tax brackets work, and aim to use pre-tax to the extent it helps you avoid the 25% rate. If any incremental deposit would be 15% money, use Roth for that. Most discussions of the pre-tax / post tax decision talk about 2 rates. That at the time of deposit and time of withdrawal. There are decades in between that shouldn't be ignored. If you have any life change, a marriage, child, home purchase, etc, there's a chance your marginal bracket drops back down to 15%. That's the time to convert to Roth, just enough to \"\"top off\"\" the 15% bracket. Last, I wouldn't count on that pension, there's too much time until you retire to count on that income. Few people stay at one job long enough to collect on the promise of a pension that takes 30+ years to earn, and even if you did, there's the real chance the company cancels the plan long before you retire.\"",
"title": ""
},
{
"docid": "20ec0911ab39c1fa1e63136f80b996c9",
"text": "If your employer offers a 401k retirement plan then you can contribute a portion of your salary to your retirement and that will lower your effective income to remain in the 15% bracket (although as others have pointed out, only the dollars that exceed the 15% bracket will be taxed at the higher rate anyway). AND if your employer offers any kind of 401k matching contribution, that's effectively a pay-raise or 100% return on investment (depending on how you prefer to look at it).",
"title": ""
},
{
"docid": "5b740b898731a15a46298c807c24c05d",
"text": "\"I'll add 2 observations regarding current answers. Jack nailed it - a 401(k) match beats all. But choose the right flavor account. You are currently in the 15% bracket (i.e. your marginal tax rate, the rate paid on the last taxed $100, and next taxed $100.) You should focus on Roth. Roth 401(k) (and if any company match, that goes into a traditional pretax 401(k). But if they permit conversions to the Roth side, do it) You have a long time before retirement to earn your way into the next tax bracket, 25%. As your income rises, use the deductible IRA/ 401(k) to take out money pretax that would otherwise be taxed at 25%. One day, you'll be so far into the 25% bracket, you'll benefit by 100% traditional. But why waste the opportunity to deposit to Roth money that's taxed at just 15%? To clarify the above, this is the single rate table for 2015: For this discussion, I am talking taxable income, the line on the tax return designating this number. If that line is $37,450 or less, you are in the 15% bracket and I recommend Roth. Say it's $40,000. In hindsight on should put $2,550 in a pretax account (Traditional 401(k) or IRA) to bring it down to the $37,450. In other words, try to keep the 15% bracket full, but not push into 25%. Last, after enough raises, say you at $60,000 taxable. That, to me is \"\"far into the 25% bracket.\"\" $20,000 or 1/3 of income into the 401(k) and IRA and you're still in the 25% bracket. One can plan to a point, and then use the IRA flavors to get it dead on in April of the following year. To Ben's point regarding paying off the Student Loan faster - A $33K income for a single person, about to have the new expense of rent, is not a huge income. I'll concede that there's a sleep factor, the long tern benefit of being debt free, and won't argue the long term market return vs the rate on the loan. But here we have the probability that OP is not investing at all. It may take $2000/yr to his 401(k) capture the match (my 401 had a dollar for dollar match up to first 6% of income). This $45K, after killing the card, may be his only source for the extra money to replace what he deposits to his 401(k). And also serve as his emergency fund along the way.\"",
"title": ""
},
{
"docid": "54b561dd3d3abc1fbe047ea8d373a47f",
"text": "Yes, you can have both. You'll need business income to contribute to a SEP IRA though.",
"title": ""
},
{
"docid": "e3933fbac5eaa1df4c0b1e86f9e77bde",
"text": "\"My understanding is that credit card companies are allowed to accept retirement income as part of the income that would qualify you for credit. The Consumer Finance Protection Bureau issued a final rule amendment to Regulation Z (the regulations around Truth in Lending Act) in 2013 in response to some of the tightening of credit that resulted from the Credit CARD Act of 2009. The final rule allows for credit issuers to \"\"consider income and assets to which such consumers have a reasonable expectation of access.\"\" (Page 1) On page 75, it outlines some examples: Other sources of income include interest or dividends, retirement benefits, public assistance, alimony, child support, and separate maintenance payments.... Current or reasonably expected income also includes income that is being deposited regularly into an account on which the consumer is an accountholder (e.g., an individual deposit account or joint account). Assets include, for example, savings accounts and investments. Fannie Mae explicitly mentions IRA distributions in its Documentation Requirements on mortgage applications. For them, they require that the income be \"\"expected to continue for at least three years after the date of the mortgage application.\"\" Lenders can reject or lower your credit limit for just about any reason that they want, but it seems appropriate for you to include your retirement distributions in your income for credit applications.\"",
"title": ""
},
{
"docid": "fb78091094c61cbf35643c978ba23f06",
"text": "I am in the process of writing an article about how to maximize one's Social Security benefits, or at least, how to start the analysis. This chart, from my friends at the Social Security office shows the advantage of waiting to take your benefit. In your case, you are getting $1525 at age 62. Now, if you wait 4 years, the benefit jumps to $2033 or $508/mo more. You would get no benefit for 4 years and draw down savings by $73,200, but would get $6,096/yr more from 64 on. Put it off until 70, and you'd have $2684/mo. At some point, your husband should apply for a spousal benefit (age 66 for him is what I suggest) and collect that for 4 years before moving to his own benefit if it's higher than that. Keep in mind, your generous pensions are likely to push you into having your social security benefit taxed, and my plan, above will give you time to draw down the 401(k) to help avoid or at least reduce this.",
"title": ""
},
{
"docid": "f968ac77c114449dadf53ee74f7830b8",
"text": "You can't get there from here. This isn't the right data. Consider the following five-year history: 2%, 16%, 32%, 14%, 1%. That would give a 13% average annual return. Now compare to -37%, 26%, 15%, 2%, 16%. That would give a 4% average annual return. Notice anything about those numbers? Two of them are in both series. This isn't an accident. The first set of five numbers are actual stock market returns from the last five years while the latter five start three years earlier. The critical thing is that five years of returns aren't enough. You'd need to know not just how you can handle a bull market but how you do in a bear market as well. Because there will be bear markets. Also consider whether average annual returns are what you want. Consider what actually happens in the second set of numbers: But if you had had a steady 4% return, you would have had a total return of 21%, not the 8% that would have really happened. The point being that calculating from averages gives misleading results. This gets even worse if you remove money from your principal for living expenses every year. The usual way to compensate for that is to do a 70% stock/30% bond mix (or 75%/25%) with five years of expenses in cash-equivalent savings. With cash-equivalents, you won't even keep up with inflation. The stock/bond mix might give you a 7% return after inflation. So the five years of expenses are more and more problematic as your nest egg shrinks. It's better to live off the interest if you can. You don't know how long you'll live or how the market will do. From there, it's just about how much risk you want to take. A current nest egg of twenty times expenses might be enough, but thirty times would be better. Since the 1970s, the stock market hasn't had a long bad patch relative to inflation. Maybe you could squeak through with ten. But if the 2020s are like the 1970s, you'd be in trouble.",
"title": ""
},
{
"docid": "a5962b3b7eac619b9f8797580b9e859f",
"text": "The 20x number is drawn directly from the assumption that it should be easy to get more than 4% average return on investment. After lots of historical studies, Monte Carlo simulations, and the like there was a consensus that saving more didn't significantly increase the odds of achieving at least the desired yearly income sustainably. (That's the same calculations the insurance firms use as the starting point for writing annuities.) There are also some assumptions about inflation and its interaction with the market built into this rule-of-thumb. Note that this is 20x what you want as post-retirement income, not necessarily 20x your current income. I have a moderately frugal lifestyle, And my budget confirms that my actual spending -- even in years when I allow myself a splurge -- is well below my current income, with the excess going into the investments. To sustain my lifestyle, I need that lower number plus any taxes that'll be due on it plus whatever I want to allocate as average emergency reserve... and theoretically I should be able to base the 20x on that lower number. When I run estimates (Quicken has a tool for this, so does my credit union, I presume others are widely available), they tend to confirm this. I'm still using the higher number for planning, though. I don't feel any need to retire early (though I have issues with my current manager), and I have no objection at all to being able to afford better toys on occasion. Or to leaving a legacy to friends, relatives, and/or charity. But it's nice to know exactly when I could punt the day job if I wanted to.",
"title": ""
},
{
"docid": "810eceab7edb6216ea4133d029874089",
"text": "\"I humbly disagree with #2. the use of Roth or pre-tax IRA depends on your circumstance. With no match in the 401(k), I'd start with an IRA. If you have more than $5k to put in, then some 401(k) would be needed. Edit - to add detail on Roth decision. I was invited to write a guest article \"\"Roth IRAs and your retirement income\"\" some time ago. In it, I discuss the large amount of pretax savings it takes to generate the income to put you in a high bracket in retirement. This analysis leads me to believe the risk of paying tax now only to find tHat you are in a lower bracket upon retiring is far greater than the opposite. I think if there were any generalization (I hate rules of thumb, they are utterly pick-apartable) to be made, it's that if you are in the 15% bracket or lower, go Roth. As your income puts you into 25%, go pretax. I believe this would apply to the bulk of investors, 80%+.\"",
"title": ""
},
{
"docid": "4b24c9a7d92256bd10cb736a31dce103",
"text": "I'm concerned about your extreme focus on Roth. In today's dollars it would take nearly $2 million to produce enough of an annual withdrawal to fill the 15% bracket. If you are able to fund both 401(k)s and 2 IRAs (total $43K) you're clearly in the 25% bracket or higher. If you retire 100% with Roth savings, and little to no pretax money, you miss the opportunity to receive withdrawals at zero(1), 10, and 15% brackets. Missing this isn't much better than having too much pretax and being in a higher bracket at retirement. One factor often overlooked is that few people manage a working life with no gaps. During times when income is lower for whatever reason, it's a great time to convert a bit to Roth. (1)by zero bracket, I mean the combined standard deduction and exemptions. For two people this is currently (for 2017) $20,800 total. And it goes up a bit most years.",
"title": ""
},
{
"docid": "416ef7846826a6105c8771f921f2ad33",
"text": "\"You don't state a long term goal for your finances in your message, but I'm going to assume you want to retire early, and retire well. :-) any other ideas I'm missing out on? A fairly common way to reach financial independence is to build one or more passive income streams. The money returned by stock investing (capital gains and dividends) is just one such type of stream. Some others include owning rental properties, being a passive owner of a business, and producing goods that earn long-term royalties instead of just an immediate exchange of time & effort for cash. Of these, rental property is probably one of the most well-known and easiest to learn about, so I'd suggest you start with that as a second type of investment if you feel you need to diversify from stock ownership. Especially given your association with the military, it is likely there is a nearby supply of private housing that isn't too expensive (so easier to get started with) and has a high rental demand (so less risk in many ways.) Also, with our continued current low rate environment, now is the time to lock-in long term mortgage rates. Doing so will reap huge benefits as rates and rents will presumably rise from here (though that isn't guaranteed.) Regarding the idea of being a passive business owner, keep in mind that this doesn't necessarily mean starting a business yourself. Instead, you might look to become a partner by investing money with an existing or startup business, or even buying an existing business or franchise. Sometimes, perfectly good business can be transferred for surprisingly little down with the right deal structure. If you're creative in any way, producing goods to earn long-term royalties might be a useful path to go down. Writing books, articles, etc. is just one example of this. There are other opportunities depending on your interests and skill, but remember, the focus ought to be on passive royalties rather than trading time and effort for immediate money. You only have so many hours in a year. Would you rather spend 100 hours to earn $100 every year for 20 years, or have to spend 100 hours per year for 20 years to earn that same $100 every year? .... All that being said, while you're way ahead of the game for the average person of your age ($30k cash, $20k stocks, unknown TSP balance, low expenses,) I'm not sure I'd recommend trying to diversify quite yet. For one thing, I think you need to keep some amount of your $30k as cash to cover emergency situations. Typically people would say 6 months living expenses for covering employment gaps, but as you are in the military I don't think it's as likely you'll lose your job! So instead, I'd approach it as \"\"How much of this cash do I need over the next 5 years?\"\" That is, sum up $X for the car, $Y for fun & travel, $Z for emergencies, etc. Keep that amount as cash for now. Beyond that, I'd put the balance in your brokerage and get it working hard for you now. (I don't think an average of a 3% div yield is too hard to achieve even when picking a safe, conservative portfolio. Though you do run the risk of capital losses if invested.) Once your total portfolio (TSP + brokerage) is $100k* or more, then consider pulling the trigger on a second passive income stream by splitting off some of your brokerage balance. Until then, keep learning what you can about stock investing and also start the learning process on additional streams. Always keep an eye out for any opportunistic ways to kick additional streams off early if you can find a low cost entry. (*) The $100k number is admittedly a rough guess pulled from the air. I just think splitting your efforts and money prior to this will limit your opportunities to get a good start on any additional streams. Yes, you could do it earlier, but probably only with increased risk (lower capital means less opportunities to pick from, lower knowledge levels -- both stock investing and property rental) also increase risk of making bad choices.\"",
"title": ""
}
] |
fiqa
|
5fdc98d9226f1e7a90b598b1669a46c8
|
What does “Yield Curve” mean?
|
[
{
"docid": "8ad5f8bd548127edc2bc57ee3372271b",
"text": "\"Great question! A Yield Curve is a plot of the yields for different maturities of debt. This can be for any debt, but the most common used when discussing yield curves is the debt of the Federal Government. The yield curve is observed by its slope. A curve with a positive slope (up and to the right) or a steepening curve, i.e. one that's becoming more positively sloped or less negatively sloped, may indicate several different situations. The Kansas City Federal Reserve has a nice paper that summarizes various economic theories about the yield curve, and even though it's a bit dated, the theories are still valid. I'll summarize the major points here. A positively sloped yield curve can indicate expectations of inflation in the future. The longer a security has before it matures, the more opportunities it has to be affected by changes in inflation, so if investors expect inflation to occur in the future, they may demand higher yields on longer-term securities to compensate them for the additional inflationary risk. A steepening yield curve may indicate that investors are increasing their expectations of future inflation. A positively sloped yield curve may also reflect expectations of deprecation in the dollar. The publication linked before states that depreciation of the dollar may have increased the perceived risk of future exchange rate changes and discouraged purchases of long-term Treasury securities by Japanese and other foreign investors, forcing the yields on these securities higher. Supply shocks, e.g. decreases in oil prices that lead to decreased production, may cause the yield curve to steepen because they affect short-term inflation expectations significantly more than long-term inflation. For example, a decrease in oil prices may decrease short-term inflation expectations, so short-term nominal interest rates decline. Investors usually assume that long-term inflation is governed more by fundamental macroeconomic factors than short-term factors like commodity price swings, so this price shock may lead short-term yields to decrease but leave long-term relatively unaffected, thus steepening the yield curve. Even if inflation expectations remain unchanged, the yield curve can still change. The supply of and demand for money affects the \"\"required real rate,\"\" i.e. the price of credit, loans, etc. The supply comes from private savings, money coming from abroad, and growth in the money supply, while demand comes from private investors and the government. The paper summarizes the effects on real rates by saying Lower private saving, declines in the real money supply, and reduced capital inflows decrease the supply of funds and raise the required real rate. A larger government deficit and stronger private investment raise the required real rate by increasing the demand for funds. The upward pressure on future real interest rates contributes to the yield curve's positive slope, and a steepening yield curve could indicate an increasing government deficit, declines in private savings, or reduced capital coming in from abroad (for example, because of a recession in Europe that reduces their demand for US imports). an easing of monetary policy when is economy is already producing near its capacity ... would initially expand the real money supply, lowering required short-term real interest rates. With long-term real interest rates unchanged, the yield curve would steepen. Lower interest rates in turn would stimulate domestic spending, putting upward pressure on prices. This upward price pressure would probably increase expected inflation, and as the first bullet point describes, this can cause long-term nominal interest rates to rise. The combination of the decline in short-term rates and the rise in long-term rates steepens the yield curve. Similarly, an inverted yield curve or a positively sloped yield curve that is becoming less steep may indicate the reverse of some or all of the above situations. For example, a rise in oil prices may increase expectations of short-term inflation, so investors demand higher interest rates on short-term debt. Because long-term inflation expectations are governed more by fundamental macroeconomic factors than short-term swings in commodity prices, long-term expectations may not rise nearly as much as short term expectations, which leads to a yield curve that is becoming less steep or even negatively sloped. Forecasting based on the curve slope is not an exact science, just one of many indicators used. Note - Yield Curve was not yet defined here and was key to my answer for What is the \"\"Bernanke Twist\"\" and \"\"Operation Twist\"\"? What exactly does it do? So I took the liberty of ask/answer.\"",
"title": ""
},
{
"docid": "2a0324b0cdfebc89bc0461b5ea87187f",
"text": "Yield is the term used to describe how much income the bond will generate if the bond was purchased at a particular moment in time. If I pay $100 for a one year, $100 par value bond that pays 5% interest then the bond yields 5% since I will receive $5 from a $100 investment if I held the bond to maturity. If I pay $90 for the same one year bond then the bond yields 17% since I will receive $15 from a $90 investment if I held the bond to maturity. There are many factors that affect what yield creditors will accept: It is the last bullet that ultimately determines yield. The other factors feed into the creditor’s desire to hold money today versus receiving money in the future. I desire money in my hand more than a promise to receive money in the future. In order to entice me to lend my money someone must offer me an incentive. Thus, they must offer me more money in the future in order for me to part with money I have. A yield curve is a snapshot of the yields for different loan durations. The x-axis is the amount of time left on the bond while the y-axis is the yield. The most cited yield curve is the US treasury curve which displays the yields for loans to the US government. The yield curve changes while bonds are being traded thus it is always a snapshot of a particular moment in time. Short term loans typically have less yield than longer term loans since there is less uncertainty about the near future. Yield curves will flatten or slightly invert when creditors desire to keep their money instead of loaning it out. This can occur because of a sudden disruption in the market that causes uncertainty about the future which leads to an increase in the demand for cash on hand. The US government yield curve should be looked at with some reservation however since there is a very large creditor to the US government that has the ability to loan the government an unlimited amount of funds.",
"title": ""
}
] |
[
{
"docid": "a87286cb3d08b943e91444698796d93f",
"text": "The SEC 30-Day Yield you're seeing is a standardized yield calculation set out by the Securities & Exchange Commission. It can be useful for comparing bond funds, but it doesn't guarantee what you'll actually earn from a fund. IMPORTANT: The SEC 30-day yield represents a bond fund's returns from the previous 30 days expressed as an annual percentage of the current fund price — yes, an annual percentage. In other words, don't expect 1.81% return on your money every 30 days! Such a return is too-good-to-be-true return in today's low rate environment. 1.81% per year? More reasonable. Even then, the 1.81% you see is merely an estimate, one based on assumptions, of what you might expect to earn if you keep your money in place for the next year. The estimate is based on the assumptions that: These aren't reliable assumptions. BIV's price does fluctuate. You are not promised to get your principal back with a bond fund. Only an individual bond promises your principal back, and only at maturity. So, earning $181 on $10,000 invested for a full year while taking on interest-rate and other risks might not be worth the trouble of putting your money in a brokerage account. You'll need to transfer the money in and out, and there are potential trading fees to take into account. (How much to buy/sell units?) An FDIC-insured high interest savings account makes more sense.",
"title": ""
},
{
"docid": "2967b77ae227b3ece809a193dbd635fa",
"text": "\"The most fundamental observation of bond pricing is this: Bond price is inversely proportional to bond yields When bond yields rise, the price of the bond falls. When bond yields fall, the price of the bond rises. Higher rates are \"\"bad\"\" for bonds. If a selloff occurs in the Russian government bond space (i.e. prices are going down), the yield on that bond is going to increase as a consequence.\"",
"title": ""
},
{
"docid": "4b7f04d94c8e7840ef8cb467b3b6f302",
"text": "\"When \"\"people say\"\", each person is referring to whatever he/she is looking at. Interest rates tend to move roughly the same, but often there is a bias regarding long vs. short term. In the US right now, short term interest rates are very low but there is a lot of chatter saying they will rise in the future. The differential between long term rates and short term rates is high compared to historical norms, suggesting that the market believes this chatter. You can also look at the differences in rates between different quality levels. If the economy is improving, the difference in rate for lower rated debt vs. higher rated debt decreases as people think the chance of businesses failing is decreasing. Right now, any interest rate you look at is well below long term historical averages, so asserting that interest rates are low is quite safe.\"",
"title": ""
},
{
"docid": "a94b5eecca6ba3b05164821c00dcc103",
"text": "\"https://www.fool.com/investing/general/2013/07/30/2-types-of-risk-2-types-of-bubbles.aspx (mirror): The Wall Street Journal reviews: What Mr. Bernstein calls \"\"shallow risk\"\" is a temporary drop in an asset's market price; decades ago, the great investment analyst Benjamin Graham referred to such an interim decline as \"\"quotational loss.\"\" \"\"Deep risk,\"\" on the other hand, is an irretrievable real loss of capital, meaning that after inflation you won't recover for decades -- if ever. So quotational loss = loss not explained by change of actual value of a firm.\"",
"title": ""
},
{
"docid": "b692f4e4eeeb8f983144d9d77026b05b",
"text": "\"Like all financial investments, the value of a bond is the present value of expected future cash flows. The Yield to Maturity is the annualized return you get on your initial investment, which is equivalent to the discount rate you'd use to discount future cash flows. So if you discount all future cashflows at 6% annually*, you can calculate the price of the bond: So the price of a $1,000 bond (which is how bond prices are typically quoted) would be $1,097.12. The current yield is just the current coupon payment divided by the current price, which is 70/1,097.12 or 6.38% Question 3 makes no sense, since the yield to maturity would be the same if you bought the bond at market price Question 4 talks about a \"\"sale\"\" date which makes me think that it assumes you sold the bond on the coupon date, but you'd have to know the sale price to calculate the rate of return.\"",
"title": ""
},
{
"docid": "2b49a84cc6307004df52a8092a033866",
"text": "\"You are asking multiple questions here, pieces of which may have been addressed in other questions. A bond (I'm using US Government bonds in this example, and making the 'zero risk of default' assumption) will be priced based on today's interest rate. This is true whether it's a 10% bond with 10 years left (say rates were 10% on the 30 yr bond 20 years ago) a 2% bond with 10 years, or a new 3% 10 year bond. The rate I use above is the 'coupon' rate, i.e. the amount the bond will pay each year in interest. What's the same for each bond is called the \"\"Yield to Maturity.\"\" The price adjusts, by the market, so the return over the next ten years is the same. A bond fund simply contains a mix of bonds, but in aggregate, has a yield as well as a duration, the time-and-interest-weighted maturity. When rates rise, the bond fund will drop in value based on this factor (duration). Does this begin to answer your question?\"",
"title": ""
},
{
"docid": "69ac5ff91f14b449464ffc5a50c2545a",
"text": "\"Is there more on where Dalio gets his definitions for the short-term debt cycle (5-8 years or so) and \"\"deleveraging\"\" and the long-term debt cycle (75-100 years)? (or his evidence that separates the two)? At one point 18:10, he says the difference is that in a deleveraging, interest rates hit 0 and can no longer go lower, but I don't know if that works as a definition per se. There are other things that central banks do when interest rates hit 0, like buy up assets (which he does mention and include in the \"\"print money\"\" category of things that can be done during a deleveraging). And one of the deleveragings he cites, England in the 1950s, according to Wikipedia was due to difficulty in transitioning out from war production, and according to [this excel file](http://www.bankofengland.co.uk/statistics/Documents/rates/baserate.xls) from the Bank of England on historical rates, it doesn't say interest rates went to 0 at that time (unless Dalio is referring to another point in history when he cites 1950s England). 20:30 His definition of a depression is when debt restructuring or defaults happen. Interesting. What I learned was that there isn't really a hard and fast definition for recessions and depressions (e.g. a recession is two quarters of negative growth in a row and a depression is just a reeeaallly bad/long recession). And I don't think I recall encountering in the past an attempt to define what a \"\"deleveraging\"\" event of an economy is. 24:30 Is debt reduction and redistribution of wealth deflationary? I think it depends on how much the debt reduction or redistribution hurts the spending of the lender or wealthy versus how much it helps the spending of the borrower or the poor. Both are actually similarly \"\"giving some from the haves to the have nots,\"\" and especially redistribution of wealth is similar to fiscal spending, which is mentioned 25:30 as a valid inflationary way to try to help the economy. 26:00 Are deflationary methods (say, austerity) needed to balance out the inflationary methods (central bank buying assets and fiscal spending)? Aren't central bank (interest rates, quantitative easing) and the government (fiscal policy) still the main things that move inflation or deflation? I would think that debt reduction and redistribution of wealth are good when needed, but I wouldn't think you would do those things *mainly* for their (supposed, see above for my doubts) deflationary effects. Still, a very interesting video and one of the best presented videos on a difficult subject.\"",
"title": ""
},
{
"docid": "9419a87ad91b67ff8b186bc3e8ba3e11",
"text": "Your question asked about a specific time the yield curve flattened or inverted. There are other times when the yield curve inverted or flattened. You also imply in your question that investors were flocking to long term bonds which lowered their yields. I don't believe this is the case. I believe investors were fleeing from short term bonds causing the yields on short term bonds to rise to meet those of long term bonds. The chart below shows the history of yields on US bonds over time. The shaded areas are where the yield curve flattened or inverted. Notice that after 1982 it is the short term yields that rise sharply to meet or cross the yields on longer term bonds. The yields on longer term bonds move little compared to the movement in yields on the short term bonds. Thus it is investors moving out of short term bonds that cause the yield curve to flatten or invert. These investors are not moving into longer term bonds since the yields on the longer term bonds do not move much at all at these times. In fact, in 2006 the longer term bond market was only 25% of the total US public debt while short term bonds made up 75%. It would take less money to move the yields on longer term bonds than it would on short term bonds yet the longer term yields did not move near as much as short term yields. So why are investors or banks moving out of short term bonds causing their yields to rise? I believe this happens for one of two reasons: they are moving into higher yielding investments or they need to raise cash to cover bad investments. Charts and more information here.",
"title": ""
},
{
"docid": "099a0afe44a9775482bc038a44439a33",
"text": "\"Beyond the yield/price relationship, a good intuitive way to understand it is just this: these people control a substantial amount of money that could be essentially loaned to governments. If they feel a particular policy is likely to lead to inflation or default, they may decide not to loan that country any more money. All else being equal, with a smaller supply of possible borrowers, the country will have to pay higher interest to fund a particular amount of debt. Furthermore they may loudly publicly announce that they will no longer lend to that country, in which case other participants may be persuaded that they too should no longer lend at the going rate. What's more, this is somewhat self-fulfilling: as rates go up, the country will spend more money servicing its debt, and will in fact become a worse risk. So I think the thing that gives them their \"\"vigilante\"\" nature is that governments worry they will round up a posse and things will run away. As far as actual incentives, I would welcome more information but I think the main bond vigilante case is that they are basically long on the country but want it to tighten up its policy so their existing holdings don't decline.\"",
"title": ""
},
{
"docid": "325ef8ebd7d05c2444b8ed63b93414b1",
"text": "\"Those are the \"\"right\"\" yields. They are historically (but not \"\"nonsensically\"\") low. Those yields are reflective of the sluggish U.S. and global economic activity of the past decade. If global growth were higher, the yields would be higher. The period most nearly comparable to the past 10 years in U.S. and world history was the depressed 1930s. (I am the author of this 2004 book that predicted a stock market crash (which occurred in 2008), and the modern 1930s, but I was wrong in my assumption that the modern 1930s would involve another depression rather than 'slow growth.')\"",
"title": ""
},
{
"docid": "a67a9aa56c7f5ce0cb27dd013d0dc2a8",
"text": "Mortgage rates tend to track the yield on the 10-year Treasury note. The CBOE Interest Rate 10-Year T-Note, TNX, is a security directly related to this rate. Divide the CBOE price of TNX by 10 to get the yield. One can also track the 10Y T-Note yield at yahoo finance using ticker symbol (^TNX). One can also track the 10Y T-Note yield at yahoo finance using ticker symbol (^TNX).",
"title": ""
},
{
"docid": "0fa34b85c96df77350bbe15dc4f87d3f",
"text": "It refers to the risk free rate of a particular country. Because all other rates are usually pegged to the risk free rate. In US,it is the 30 day treasury rate. In England, it is the LIBOR In Canada, it is the overnight rate at which banks lend money to each other. All of these come under the category of risk free rate.",
"title": ""
},
{
"docid": "37b135e4dca1a8ccbea2e58b9507de8c",
"text": "No, it means what it says. Prices change, hence price of the derivative can go down even if the price of the underlying doesn't change (e.g. theta decay in options).",
"title": ""
},
{
"docid": "3c54acf90c8b30c09d6c9550bc7ab692",
"text": "Usually the market. I'm a company issuing a 5-year bond with 5% coupon payments. It goes on the market to whoever is willing to pay the most for it. The prices that those investors pay implies what the required yield is. For instance, if they're willing to pay exactly face value for the bond, then that shows they have a required return of (in this case) 5%. Paying more or less for the bond implies a require rate less than or greater than 5%, with the exact amounts derivable with basic algebra. The same principle can be applied to any other asset.",
"title": ""
},
{
"docid": "b2e48515aa9d61db8cdfc0c509211815",
"text": "\"he is saying that \"\"QE\"\" meaning \"\"quantitative easing\"\" meaning \"\"the theory that the government flooded the markets with money, artificially driving up the price of stocks\"\" meant that hedge funds, which HEDGE, and benefit from an up-and-down market, couldn't win in a market where it just kept going up. It's basically a conspiracy theory bears have been pushing for years \"\"QE artificially inflated the market, it's gonna crash!\"\"\"",
"title": ""
}
] |
fiqa
|
aa2293b67cd33de5f913481d609fc3e6
|
How do banks lose money on foreclosures?
|
[
{
"docid": "f4aa10b157076a2d41f8f8ec9de3d2c1",
"text": "\"The \"\"just accounting\"\" is how money market works these days. Lets look at this simplified example: The bank creates an asset - loan in the amount of X, secured by a house worth 1.25*X (assuming 20% downpayment). The bank also creates a liability in the amount of X to its depositors, because the money lent was the money first deposited into the bank by someone else (or borrowed by the bank from the Federal Reserve(*), which is, again, a liability). That liability is not secured. Now the person defaults on the loan in the amount of X, but at that time the prices dropped, and the house is now worth 0.8*X. The bank forecloses, sells the house, recovers 80% of the loan, and removes the asset of the loan, creating an asset of cash in the value of 0.8*X. But the liability in the amount of X didn't go anywhere. Bank still has to repay the X amount of money back to its depositors/Feds. The difference? 20% of X in our scenario - that's the bank's loss. (*) Federal Reserve is the US equivalent of a central bank.\"",
"title": ""
},
{
"docid": "6de8275802733d88deb52209a02a4bd5",
"text": "\"Someone has to hand out cash to the seller. Even if no physical money changes hands (and I've bought a house; I can tell you a LOT of money changes hands at closing in at least the form of a personal check), and regardless of exactly how the bank accounts for the actual disbursement of the loan, the net result is that the buyer has cash that they give the seller, and are now in debt to the bank for least that amount (but, they now have a house). Now, the bank probably didn't have that money just sitting in its vault. Money sitting in a vault is money that is not making more money for the bank; therefore most banks keep only fractionally more than the percentage of deposit balances that they are required to keep by the Feds. There are also restrictions on what depositors' money can be spent on, and loans are not one of them; the model of taking in money in savings accounts and then loaning it out is what caused the savings and loan collapse in the 80s. So, to get the money, it turns to investors; the bank sells bonds, putting itself in debt to bond holders, then takes that money and loans it out at a higher rate, covering the interest on the bond and making itself a tidy profit for its own shareholders. Banks lose money on defaults in two ways. First, they lose all future interest payments that would have been made on the loan. Technically, this isn't \"\"revenue\"\" until the interest is calculated for each month and \"\"accrues\"\" on the loan; therefore, it doesn't show on the balance sheet one way or the other. However, the holders of those bonds will expect a return, and the banks no longer have the mortgage payment to cover the coupon payments that they themselves have to pay bondholders, creating cash flow problems. The second, and far more real and damaging, way that banks lose money on a foreclosure is the loss of collateral value. A bank virtually never offers an unsecured \"\"signature loan\"\" for a house (certainly not at the advertised 3-4% interest rates). They want something to back up the loan, so if you disappear off the face of the earth they have a clear claim to something that can help them recover their money. Usually, that's the house itself; if you default, they get the house from you and sell it to recover their money. Now, a major cause of foreclosure is economic downturn, like the one we had in 2009 and are still recovering from. When the economy goes in the crapper, a lot of things we generally consider \"\"stores of value\"\" lose that value, because the value of the whatzit (any whatzit, really) is based on what someone else would pay to have it. When fewer people are looking to buy that whatzit, demand drops, bringing prices with it. Homes and real estate are one of the real big-ticket items subject to this loss of value; when the average Joe doesn't know whether he'll have a job tomorrow, he doesn't go house-hunting. This average Joe may even be looking to sell an extra parcel of land or an income property for cash, increasing supply, further decreasing prices. Economic downturn can often increase crime and decrease local government spending on upkeep of public lands (as well as homeowners' upkeep of their own property). By the \"\"broken window\"\" effect, this makes the neighborhood even less desirable in a vicious cycle. What made this current recession a double-whammy for mortgage lenders is that it was caused, in large part, by a housing bubble; cheap money for houses made housing prices balloon rapidly, and then when the money became more expensive (such as in sub-prime ARMs), a lot of those loans, which should never have been signed off on by either side, went belly-up. Between the loss of home value (a lot of which will likely turn out to be permanent; that's the problem with a bubble, things never recover to their peak) and the adjustment of interest rates on mortgages to terms that will actually pay off the loan, many homeowners found themselves so far underwater (and sinking fast) that the best financial move for them was to walk away from the whole thing and try again in seven years. Now the bank's in a quandary. They have this loan they'll never see repaid in cash, and they have this home that's worth maybe 75% of the mortgage's outstanding balance (if they're lucky; some homes in extremely \"\"distressed\"\" areas like Detroit are currently trading for 30-40% of what they sold for just before the bubble burst). Multiply that by, say, 100,000 distressed homes with similar declines in value, and you're talking about tens of billions of dollars in losses. On top of that, the guarantor (basically the bank's insurance company against these types of losses) is now in financial trouble themselves, because they took on so many contracts for debt that turned out to be bad (AIG, Fannie/Freddie); they may very well declare bankruptcy and leave the bank holding the bag. Even if the guarantor remains solvent (as they did thanks to generous taxpayer bailouts), the bank's swap contract with the guarantor usually requires them to sell the house, thus realizing the loss between what they paid and what they finally got back, before the guarantor will pay out. But nobody's buying houses anymore, because prices are on their way down; the only people who'd buy a house now versus a year from now (or two or three years) are the people who have no choice, and if you have no choice you're probably in a financial situation that would mean you'd never be approved for the loan anyway. In order to get rid of them, the bank has to sell them at auction for pennies on the dollar. That further increases the supply of cheap homes and further drives down prices, making even the nicer homes the bank's willing to keep on the books worth less (there's a reason these distresed homes were called \"\"toxic assets\"\"; they're poisonous to the banks whether they keep or sell them). Meanwhile, all this price depression is now affecting the people who did everything right; even people who bought their homes years before the bubble even formed are watching years of equity-building go down the crapper. That's to say nothing of the people with prime credit who bought at just the wrong time, when the bubble was at its peak. Even without an adjusting ARM to contend with, these guys are still facing the fact that they paid top dollar for a house that likely will not be worth its purchase price again in their lifetime. Even with a fixed mortgage rate, they'll be underwater, effectively losing their entire payment to the bank as if it were rent, for much longer than it would take to have this entire mess completely behind them if they just walked away from the whole thing, moved back into an apartment and waited it out. So, these guys decide on a \"\"strategic default\"\"; give the bank the house (which doesn't cover the outstanding balance of course) and if they sue, file bankruptcy. That really makes the banks nervous; if people who did everything right are considering the hell of foreclosure and bankruptcy to be preferable to their current state of affairs, the bank's main threat keeping people in their homes is hollow. That makes them very reluctant to sign new mortgages, because the risk of default is now much less certain. Now people who do want houses in this market can't buy them, further reducing demand, further decreasing prices... You get the idea. That's the housing collapse in a nutshell, and what banks and our free market have been working through for the past five years, with only the glimmer of a turnaround picking up home sales.\"",
"title": ""
}
] |
[
{
"docid": "32e935b4339ffb2917c8b86d2b58f554",
"text": "\"During the actual decline, there's very little money to be made and a lot to lose. When housing prices tank, everybody loses; the banks are exposed to higher risk of mortgage defaults, insurers start having to pay out more for \"\"gas leaks\"\" claiming over-leveraged homes, realtors starve because their commissions go down (even as foreclosures put more homes on the market) and people faced with financial uncertainty will stay put in their current homes instead of moving elsewhere. And homebuilders and contractors go broke because nobody wants to spend cash on a new home or major reno that looks like a losing investment. There can be some bright spots. Smaller hardware stores will make money as people do relatively small DIY projects to improve the condition of their current home. The larger stores get this business too, but it tends to be more than offset by the loss of contractor business (FAR more lucrative, and something the ACEs and True-Values don't really get in on). Of course the \"\"grave-robbers\"\" do well; gold buyers, auctioneers, pawn shops, repo firms; these guys eat well when other people are defaulting on loans or have to sell their stuff for fast cash. Most of these businesses are not publicly traded. One thing that was seen was increased revenues at discount retailers like Wal-Mart, Dollar General etc. When things are bad, people in the middle class who had avoided these stores for image or morality reasons learn to swallow their pride and buy discount store brands for half the price of national brand names. That lessens the blow felt by the discount retailers as overall consumer spending decreases; the pie shrinks, but the discount retailers get a bigger slice of the mandatory spending on food, clothing, etc (and the higher-level retailers get it in the shorts). When the pie starts to grow again as consumer spending picks back up, the discount retailers retain their percentage for a while, as the fickle middle class can afford to buy more from the discount retailer but can't yet afford to take their business back to the shopping mall stores. This produces a flatter, \"\"offset\"\" price graph for discount retailers through the business cycle; they don't lose as early or as much as everyone else in a major downturn, and they turn it around sooner while everyone else may still be on the way down, but as everything gets better for everyone on the upswing it's less great for the discount guys, as they start losing customers and their dollars to competitors with better stuff, even as the ones they keep spend more. This doesn't generally manifest as a true negative correlation, but it can be a good hedge. The number one money-making investment in a tanking economy is gold. When things go down the crapper, everyone wants gold, so if you see the train wreck coming far enough in advance, you can make a big move to gold and really make some money off that investment. For instance, when the first whispers about ARM adjustments and mass defaults reached the public consciousness in mid-2005, gold bullion jumped from about $400 to over $700 in a nine-month period. It cooled off again in 06-07 but only to about $600/oz, and then in late 07 it steadily climbed to peak at $1000/oz; even if you got in late, an investment of $1000 in July '07 in \"\"bulk\"\" gold would have netted you $650 in one year; that's a 65% APY. Then the economy hit bottom and a lot of investors ditched gold for investments they thought would pull back out of their holes quickly; For just a little while in '08 gold was down to $700 again. Then came all the government reports; unemployment not budging, home prices still declining, a lot of banks still hiding just how bad their position was. If you had seen that it was going to be bad, bad, bad, like a lot of now-billionaire hedge fund investors did, a $1000 investment in gold in July 05, and then cashing out at the tops of the peaks and buying back in at the major troughs, would be worth almost $4000 today. That's a 400% return over 7 years, or an annual average yield of 57%. There simply hasn't been anything like that in the last 7 years.\"",
"title": ""
},
{
"docid": "690b591bb9ac43bf175f9ab597744115",
"text": "Banks have huge amounts of foreclosure or pending foreclosure properties on their books that they haven't even listed for sale yet. The ratio is something like 6 to 1. The amount of inventory held on the books, but off the market is larger than the entire MLS market. In a competitive market, a smart bank would try to dump their property now before the other banks do. But instead, all the banks are holding their properties off the market and trickling them out at a slow rate. Collusion?",
"title": ""
},
{
"docid": "a5d1e46007a73134f5a59e6f5781bd63",
"text": "To supplement existing answers: the appraised value does not necessarily represent the net amount the bank could actually recover with a foreclosure. Let's look at it from the point of view of the bank. Suppose the property appraises at $200,000 and they do what you want: loan you $200,000 with the property as collateral. Now suppose a short time later, you quit paying the mortgage and they have to foreclose. Can the bank get their $200,000 back? An appraisal is only an estimate; nobody can predict perfectly how much a property will sell for. Maybe the appraiser missed something significant, and the property will only fetch $180,000. Even if the appraisal was accurate when it was made, property values may have dropped in the meantime. Maybe a sudden economic crisis is driving real estate prices down across the board. Maybe interest rates have spiked. Maybe the county has changed the zoning regulations to locate a toxic waste dump next door to the property. In any of these cases, the property may again fetch well under $200,000. Maybe the condition of the property has changed. Perhaps you trashed the place and it will take $30,000 to clean it up. (People have a tendency to do things like that when they get foreclosed.) If the bank wants to get full market value for the property, they will incur the usual costs of selling a property: paying a real estate agent's commission, painting, renting furniture to stage the property, and so on. This will eat into the net amount they actually get from the sale. It may take some time (perhaps months) for a property to sell at its full market value. During this time, the bank is out $200,000. That's money they would rather be loaning out at interest to someone else, so this represents lost income. Foreclosing a mortgage is a fairly complicated procedure. The bank has to pay its staff, including lawyers, for a significant number of hours to get the foreclosure done. There will be court filing fees and so on. If you refuse to leave, they may have to get the sheriff to evict you; that has a fee as well. If you fight the foreclosure, that racks up even more legal fees. This too eats into the net proceeds from the sale. So if the bank loans you the full $200,000, they stand a pretty significant risk of not getting all of it back, after expenses. You can understand that risk may not be worth the interest they would get from you on the extra $40,000. On the other hand, if they loan you only 80% of the property's appraised value ($160,000), they effectively shift that risk onto you. Should you default on the loan, and they foreclose, all they have to do is sell the property for $160,000 or a little bit more. That shouldn't be too hard, even if it is not freshly painted or a bit trashed. They probably don't need to hire a real estate agent: just hold a quick auction, maybe first calling up a few investors who might be interested in flipping it. If it happens to sell for more than the outstanding principal of the loan, plus the bank's costs, then they will pay you the difference; but they have no incentive to make that happen, and every incentive to just get it sold quick. So any difference between the property's true value and the actual sale price now represents a loss to you first, not to the bank. So you can see why the bank would rather not loan you the full value of the property. 80% is a somewhat arbitrary figure but it cuts their risk by a lot.",
"title": ""
},
{
"docid": "1cb916d0e43a50f25c6741433bb8358f",
"text": "\"Can it be so that these low-interest rates cause investors to take greater risk to get a decent return? With interest rates being as low as they are, there is little to no risk in banking; especially after Dodd-Frank. \"\"Risk\"\" is just a fancy word for \"\"Will I make money in the near/ long future.\"\" No one knows what the actual risk is (unless you can see into the future.) But there are ways to mitigate it. So, arguably, the best way to make money is the stock market, not in banking. There is a great misallocation of resources which at some point will show itself and cause tremendous losses, even maybe cause a new financial crisis? A financial crisis is backed on a believed-to-be strong investment that goes belly-up. \"\"Tremendous Losses\"\" is a rather grand term with no merit. Banks are not purposely keeping interest rates low to cause a financial crisis. As the central banks have kept interest rates extremely low for a decade, even negative, this affects how much we save and borrow. The biggest point here is to know one thing: bonds. Bonds affect all things from municipalities, construction, to pensions. If interest rates increased currently, the current rate of bonds would drop vastly and actually cause a financial crisis (in the U.S.) due to millions of older persons relying on bonds as sources of income.\"",
"title": ""
},
{
"docid": "c1b7910c61fff560df444892317f451c",
"text": "\"If banks really controlled house prices, then why do banks now own a shitload of houses that are no longer being paid for? So many that they can't sell them now because that would drive prices down even more, and they'd lose more. Sigh... go ahead and continue to blame \"\"them\"\" for everything. It's easier that way, because then you will never have to take responsibility for any of your mistakes.\"",
"title": ""
},
{
"docid": "9976b46a505265ecde11fd4c7e9925a7",
"text": "Foreclosure is at a high level the bank declaring that the debtor cannot pay their promissory note (their debt). This is shortly followed by default, which is the removal of debtors rights to the property. After the debtor has defaulted, he either chooses to voluntarily remove himself and his belongings from the property, or is forcibly evicted. In the US eviction is carried out by local law enforcement, such as the sheriff's office. The bank is now the sole owner of the property, and proceeds to sell it, in an attempt to recoup their investment. If the bank cannot recoup their investment by selling the house, the rest may be converted to unsecured debt against the debtor. If the bank chooses to forgive the remaining debt, the debtor may have a tax liability for cancellation of debt. Also the debtor may also be liable for any appreciation the house did before it was sold, but this likely to be nontaxable if the house in question is the debtor's primary residence. They also send the credit bureaus the notice of foreclosure, which is how your credit score is hurt. Private Mortgage Insurance or Lenders Mortgage Insurance will pay the lender some amount back to cover their losses. See Also:",
"title": ""
},
{
"docid": "d46a7d2f95353b06f0e2dabc034064ac",
"text": "\"the \"\"consumer relief\"\" only affects people who have mortgages. so people who lost everything don't have mortgages any more and are unaffected by this \"\"consumer relief\"\" the \"\"relief\"\" is not limited to individuals directly harmed by the bank. recipients are chosen by the bank, for the bank's maximum profit extraction.\"",
"title": ""
},
{
"docid": "464c9b92963363ecd1df7012855d3cf6",
"text": "If the homeowner knows the situation is hopeless, and the end result will be the loss of the home, jumping to the end result can be helpful. It is quicker, they don't spend as much time fighting a losing battle. Deed in Lieu of foreclosure is not so great for the borrower if the bank goes after them for the rest of the money owed. There can also be tax implications if the debt is forgiven. Though these issues also exist when the drawn out foreclosure option is done. For the bank. The longer the process the more the house deteriorates. The borrower may stop maintenance and may even vandalize the house. Getting their lock on the door quickly is important to them. They protect it, clean it, and prep it for sale right away. They also save on lawyer fees. They know that the moment they start the foreclosure process all money from the borrower stops, this can save thousands in carrying costs. One issue will be how the accounting losses will be divided among the servicing company, and the investors. If the servicing company will make more money from the longer process they may not push for the quick settlement. If the opposite is true, they will be quickly on board. For the new buyer, the issue with either foreclosure is that the longer process can result in greater hidden and visible damage. The heat pump may work, but the disgruntled homeowner stopped changing the filters the last six months. They may have also removed and damaged things on the way out. Other than that I don't see a big difference. Because the bank had lower costs involved in the foreclosure they might settle for a lower purchase price, but that might be hard to know.",
"title": ""
},
{
"docid": "5c6a870d896ba0f0ddafe2dbe1357b2f",
"text": "Banks don't want to manage property. They despise the fact that they have all of these foreclosures that they can't sell. They just want to loan you the money at X% and collect the fees and interest. The value of a reverse mortgage to the lender is that it's a collateralized loan against a property. When the owner exits the property, it's attached to the property and must be paid back before the property is sold. They carefully consider the age of the recipient, equity in the property, etc. when they decide how much to pay the owner so that the chances of the loan going underwater are minimized.",
"title": ""
},
{
"docid": "033cc75052b075d066d1a2b1420dfe42",
"text": "\"This will happen automatically when you open an interest-bearing account with a bank. You didn't think that banks just kept all that cash in a vault somewhere, did you? That's not the way modern banking works. Today (and for a long, long time) banks will keep only a small fraction of their deposits on hand (called the \"\"reserve\"\") to fund daily withdrawals and other operations. The rest they routinely lend out to other customers, which is how they pay for their operations (someone has to pay all those tellers, branch managers, loan officers) and pay interest on your deposits, as well as a profit for their owners (it's not a charity service). The fees charged for loan origination, as well as the difference between the loan interest rate and the deposit rate, make up the profit. Banks rarely hold their own loans. Instead, they will sell the loans in portfolios to investors, sometimes retaining servicing rights (they continue to collect the payments and pass them on) and sometimes not (the payments are now due to someone else). This allows them to make more loans. Banks may sometimes not have enough capital on hand. In this case, they can make inter-bank loans to meet their short-term needs. In some cases, they'll take those loans from a government central bank. In the US, this is \"\"The Fed\"\", or the Federal Reserve Bank. In the US, back around the late 1920's, and again in the 1980's some banks experienced a \"\"run\"\", or a situation where people lost confidence in the bank and wanted to withdraw their money. This caused the bank to have insufficient funds to support the withdrawals, so not everyone got their money. People panicked, and others wanted to take their money out, which caused the situation to snowball. This is how many banks failed. (In the '80s, it was savings-and-loans that failed - still a kind of \"\"bank\"\".) Today, we have the FDIC (Federal Deposit Insurance Corporation) to protect depositors. In the crashes in the early 2000's, many banks closed up one night and opened the next in a conservatorship, and then were literally doing business as a new bank without depositors (necessarily) even knowing. This protected the consumers. The bank (as a company) and its owners were not protected.\"",
"title": ""
},
{
"docid": "b20dde4b533b9447acdebeffe1611f43",
"text": "According to the article this is not actually a fine, they are just buying back the mortgages they sold in the first place. One has to wonder if they are buying them back at the same price that they sold them or if it's a discount. E.g. They sold you a lemon for $1000, offer to buy it back for $10? Other questions: If they are buying them back then are they now going to start foreclosing like criminals like BoA did?",
"title": ""
},
{
"docid": "18a79eb08dc3d53a6c2c3ed6f6d25b4b",
"text": "\"Banks make less profit when \"\"long\"\" rates are low compared to \"\"short\"\" rates. Banks lend for long term purposes like five year business loans or 30 year mortgages. They get their funds from (mostly) \"\"short term\"\" deposits, which can be emptied in days. Banks make money on the difference between 5 and 30 year rates, and short term rates. It is the difference, and not the absolute level of rates, that determines their profitability. A bank that pays 1% on CDs, and lends at 3% will make money. During the 1970s, short rates kept rising,and banks were stuck with 30 year loans at 7% from the early part of the decade, when short rates rose to double digits around 1980, and they lost money.\"",
"title": ""
},
{
"docid": "7c3c9107673fd5927e3e38d0ef07c60d",
"text": "It was both. CDOs also contributed. Unfortunately, when the bankers kept packing up their loans they lost track of the risk as did the financial institutions offering instruments to deleverage that risk. So when the subprime borrowers began to fail the institutions started getting hit with risk that they hadn't prepared for. Flippers and home owners who used their homes as ATMs then saw their home values crash and it all fell apart. We are seeing some of this again with owners getting more HELOCs but the real concern is with car loans, credit card and student loan debt.",
"title": ""
},
{
"docid": "c65e180a03ca3811c59fe7efaec2ad2f",
"text": "\"When a house is sold at a foreclosure auction, the selling bank usually does not provide the guarantees that a normal house seller provides. Furthermore, the previous owner may have neglected the property, and/or spitefully damaged the property. Bank-owned properties are often neglected and/or vandalized. Banks are usually too short-sighted to properly market the real estate they own, and do a poor job of making it easy to buy the property. Thus, foreclosure sales usually happen at a price that is significantly below the \"\"fair market value\"\" of sales between competent households. It is common for a house that is worth $ 125,000 (even in a depressed market) to sell for only $ 100,000 in a short sale or foreclosure. It is possible that this property sold for an even larger discount. It is also possible that the tax assessor is (inadvertently) comparing a run-down property with well-maintained properties that have extra expensive features, without fully adjusting for the properties' conditions and features. In the latter scenario, the property owner can ask the tax assessor to re-consider the assessment. Usually this request is called an \"\"appeal\"\".\"",
"title": ""
},
{
"docid": "b19c0e2592607bf404db322381f746c5",
"text": "I agree with the others that the ROTH is probably better. See this list of benefit/cost comparison (as opposed to rule differences)http://en.wikipedia.org/w/index.php?title=Comparison_of_401%28k%29_and_IRA_accounts&oldid=582368417",
"title": ""
}
] |
fiqa
|
440423c928bf9f74eb3b666a02d9d6b2
|
Is diversification better
|
[
{
"docid": "db73a1b5b50cf731eb237e3122d18353",
"text": "\"There are probably 3-4 questions here. Diversification - A good index, a low cost S&P fund or ETF can serve you very well. If you add an extended market index or just go with \"\"Total market\"\", that might be it for your stock allocation. I've seen people with 5 funds, and it didn't take much analysis to see the overlap was so significant, that the extra 4 funds added little, and 2 of the 5 would have been it. If you diversify by buying more ETFs or funds, be sure to see what they contain. If you can go back in time, buy Apple, Google, Amazon, etc, and don't sell them. Individual stocks are fun to pick, but unless you put in your homework, are tough to succeed at. You need to be right at the buy side, and again to know if, and when, to sell. I bought Apple, for example, long ago, pre-last few splits. But, using responsible a approach, I sold a bit each time it doubled. Has I kept it all through the splits, I'd have $1M+ instead of the current $200K or so of stock. Can you tell which companies now have that kind of potential for the future? The S&P has been just about double digit over 60 years. The average managed fund will lag the S&P over time, many will be combined with other funds or just close. Even with huge survivor bias, managed funds can't beat the index over time, on average. Aside from a small portion of stocks I've picked, I'm happy to get S&P less .02% in my 401(k). In aggregate, people actually do far worse due to horrific timing and some odd thing, called emotions.\"",
"title": ""
},
{
"docid": "0c8c18e08c9bce38d5731ba6c59f07bc",
"text": "\"Diversification tends to protect you from big losses. But it also tends to \"\"protect\"\" you from big gains. In any industry, some companies provide good products and services and prosper while others have problems and fail. (Or maybe the winners are just lucky or they paid off the right politicians, whatever, not the point here.) If you put all your money in one stock and they do well, you could make a bundle. But if you pick a loser, you could lose your entire investment. If you buy a little stock in each of many companies, then some will go up and some will go down, and your returns will be an average of how everyone in the industry is doing. Suppose I offered to bet you a large sum of money that if I roll a die, it will come up 6. You might be reluctant to take that bet, because you can't predict what number will come up on one roll of a die. But suppose I offered to bet you a large sum of money that a die will come up 6, 100 times in a row. You might well take that bet, because the chance that it will turn up 6 time after time after time is very low. You reduce risk by spreading your bets. Anyone who's bought stock has surely had times when he said, \"\"Oh man! If only I'd bought X ten years ago I'd be a millionaire now!\"\" But quite a few have also said, \"\"If only I'd sold X ten years ago I wouldn't have lost all this money!\"\" I recently bought a stock a stock that within a few months rose to 10 times what I paid for it ... and then a few months later the company went bankrupt and the stock was worth nothing. I knew the company was on a roller coaster when I bought the stock, I was gambling that they'd pull through and I'd make money. I guessed wrong. Fortunately I gambled an amount that I was willing to lose.\"",
"title": ""
},
{
"docid": "e2a054405fb83d902a7776b9cb3ec8a2",
"text": "\"Diversification is the only real free lunch in finance (reduction in risk without any reduction in expected returns), so clearly every good answer to your question will be \"\"yes.\"\" Diversification is good.\"\" Let's talk about many details your question solicits. Many funds are already pretty diversified. If you buy a mutual fund, you are generally already getting a large portion of the gains from diversification. There is a very large difference between the unnecessary risk in your portfolio if you only hold a couple of stocks and if you hold a mutual fund. Should you be diversified across mutual funds as well? It depends on what your funds are. Many funds, such as target-date funds, are intended to be your sole investment. If you have funds covering every major asset class, then there may not be any additional benefit to buying other funds. You probably could not have picked your \"\"favorite fund\"\" early on. As humans, we have cognitive biases that make us think we knew things early on that we did not. I'm sure at some point at the very beginning you had a positive feeling toward that fund. Today you regret not acting on it and putting all your money there. But the number of such feelings is very large and if you acted on all those, you would do a lot of crazy and harmful things. You didn't know early on which fund would do well. You could just as well have had a good feeling about a fund that subsequently did much worse than your diversified portfolio did. The advice you have had about your portfolio probably isn't based on sound finance theory. You say you have always kept your investments in line with your age. This implies that you believe the guidelines given you by your broker or financial advisor are based in finance theory. Generally speaking, they are not. They are rules of thumb that seemed good to someone but are not rigorously proven either in theory or empirics. For example the notion that you should slowly shift your investments from speculative to conservative as you age is not based on sound finance theory. It just seems good to the people who give advice on such things. Nothing particularly wrong with it, I guess, but it's not remotely on par with the general concept of being well-diversified. The latter is extremely well established and verified, both in theory and in practice. Don't confuse the concept of diversification with the specific advice you have received from your advisor. A fund averaging very good returns is not an anomaly--at least going forward it will not be. There are many thousand funds and a large distribution in their historical performance. Just by random chance, some funds will have a truly outstanding track record. Perhaps the manager really was skilled. However, very careful empirical testing has shown the following: (1) You, me, and people whose profession it is to select outperforming mutual funds are unable to reliably detect which ones will outperform, except in hindsight (2) A fund that has outperformed, even over a long horizon, is not more likely to outperform in the future. No one is stopping you from putting all your money in that fund. Depending on its investment objective, you may even have decent diversification if you do so. However, please be aware that if you move your money based on historical outperformance, you will be acting on the same cognitive bias that makes gamblers believe they are on a \"\"hot streak\"\" and \"\"can't lose.\"\" They can, and so can you. ======== Edit to answer a more specific line of questions =========== One of your questions is whether it makes sense to buy a number of mutual funds as part of your diversification strategy. This is a slightly more subtle question and I will indicate where there is uncertainty in my answer. Diversifying across asset classes. Most of the gains from diversification are available in a single fund. There is a lot of idiosyncratic risk in one or two stocks and much less in a collection of hundreds of stocks, which is what any mutual fund will hold. Still,you will probably want at least a couple of funds in your portfolio. I will list them from most important to least and I will assume the bulk of your portfolio is in a total US equity fund (or S&P500-style fund) so that you are almost completely diversified already. Risky Bonds. These are corporate, municipal, sovereign debt, and long-term treasury debt funds. There is almost certainly a good deal to be gained by having a portion of your portfolio in bonds, and normally a total market fund will not include bond exposure. Bonds fund returns are closely related to interest rate and inflation changes. They are also exposed to some market risk but it's more efficient to get that from equity. The bond market is very large, so if you did market weights you would have more in bonds than in equity. Normally people do not do this, though. Instead you can get the exposure to interest rates by holding a lesser amount in longer-term bonds, rather than more in shorter-term bonds. I don't believe in shifting your weights toward nor away from this type of bond (as opposed to equity) as you age so if you are getting that advice, know that it is not well-founded in theory. Whatever your relative weight in risky bonds when you are young is should also be your weight when you are older. International. There are probably some gains from having some exposure to international markets, although these have decreased over time as economies have become more integrated. If we followed market weights, you would actually put half your equity weight in an international fund. Because international funds are taxed differently (gains are always taxed at the short-term capital gains rate) and because they have higher management fees, most people make only a small investment to international funds, if any at all. Emerging markets International funds often ignore emerging markets in order to maintain liquidity and low fees. You can get some exposure to these markets through emerging markets funds. However, the value of public equity in emerging markets is small when compared with that of developed markets, so according to finance theory, your investment in them should be small as well. That's a theoretical, not an empirical result. Emerging market funds charge high fees as well, so this one is kind of up to your taste. I can't say whether it will work out in the future. Real estate. You may want to get exposure to real estate by buying a real-estate fund (REIT). Though, if you own a house you are already exposed to the real estate market, perhaps more than you want to be. REITs often invest in commercial real estate, which is a little different from the residential market. Small Cap. Although total market funds invest in all capitalization levels, the market is so skewed toward large firms that many total market funds don't have any significant small cap exposure. It's common for individuals to hold a small cap fund to compensate for this, but it's not actually required by investment theory. In principle, the most diversified portfolio should be market-cap weighted, so small cap should have negligible weight in your portfolio. Many people hold small cap because historically it has outperformed large cap firms of equal risk, but this trend is uncertain. Many researchers feel that the small cap \"\"premium\"\" may have been a short-term artifact in the data. Given these facts and the fact that small-cap funds charge higher fees, it may make sense to pass on this asset class. Depends on your opinion and beliefs. Value (or Growth) Funds. Half the market can be classed as \"\"value\"\", while the other half is \"\"growth.\"\" Your total market fund should have equal representation in both so there is no diversification reason to buy a special value or growth fund. Historically, value funds have outperformed over long horizons and many researchers think this will continue, but it's not exactly mandated by the theory. If you choose to skew your portfolio by buying one of these, it should be a value fund. Sector funds. There is, in general, no diversification reason to buy funds that invest in a particular sector. If you are trying to hedge your income (like trying to avoid investing in the tech sector because you work in that sector) or your costs (buying energy because you buy use a disproportionate amount of energy) I could imagine you buying one of these funds. Risk-free bonds. Funds specializing in short-term treasuries or short-term high-quality bonds of other types are basically a substitute for a savings account, CD, money market fund, or other cash equivalent. Use as appropriate but there is little diversification here per se. In short, there is some value in diversifying across asset classes, and it is open to opinion how much you should do. Less well-justified is diversifying across managers within the same asset class. There's very little if any advantage to doing that.\"",
"title": ""
}
] |
[
{
"docid": "d27453d9a8051fc9c96ed1dfb6f78f07",
"text": "Another disadvantage is the inability to value commodities in an accounting sense. In contrast with stocks, bonds and real estate, commodities don't generate cash flows and so any valuation methodology is by definition speculative. But as rhaskett notes, there are diversification advantages. The returns for gold, for instance, tend to exhibit low/negative correlation with the performance of stocks. The question is whether the diversification advantage, which is the primary reason to hold commodities in a multi-asset class portfolio through time, overcomes the disadvantages? The answer... maybe.",
"title": ""
},
{
"docid": "d6bf11b0627d73cbea9659cfedae9210",
"text": "\"The calculation and theory are explained in the other answers, but it should be pointed out that the video is the equivalent of watching a magic trick. The secret is: \"\"Stock A and B are perfectly negatively correlated.\"\" The video glasses over that fact that without that fact the risk doesn't drop to zero. The rule is that true diversification does decrease risk. That is why you are advised to spread year investments across small-cap, large-cap, bonds, international, commodities, real estate. Getting two S&P 500 indexes isn't diversification. Your mix of investments will still have risk, because return and risk are backward calculations, not a guarantee of future performance. Changes that were not anticipated will change future performance. What kind of changes: technology, outsourcing, currency, political, scandal.\"",
"title": ""
},
{
"docid": "77b663645ab63f4452a4e793fee32034",
"text": "The question is not whether CFA charterholders are better investment managers but rather whether starting (or having completed) your CFA will land you a better job. It's been my experience that it does, which is why so many people pursue it",
"title": ""
},
{
"docid": "846d367583fbcb6cd2fabd6e2d9345f9",
"text": "\"I recommend you take a look at this lecture (really, the whole series is enlightening), from Swenson. He identifies 3 sources of returns: diversification, timing and selection. He appears to discard timing and selection as impossible. A student kinda calls him out on this. Diversification reduces risk, not increase returns. It turns out they did time the market, by shorting .com's before the bubble, and real estate just before the downturn. In 1990, Yale started a \"\"Absolute Return\"\" unit and allocated like 15 percent to it, mostly by selling US equities, that specializes in these sorts of hedging moves. As for why you might employ managers for specific areas, consider that the expense ratio Wall Street charges you or me still represent a very nice salary when applied to the billions in Yale's portfolio. So they hire internally to reduce expenses, and I'm sure they're kept busy. They also need people to sell off assets to maintain ratios, and figuring out which ones to sell might take specialized knowledge. Finally, in some areas, you functionally cannot invest without management. For example, Yale has a substantial allocation in private equity, and by definition that doesn't trade on the open market. The other thing you should consider is that for all its diversification, Yale lost 25 percent of their portfolio in 2009. For a technique that's supposed to reduce volatility, they seem to have a large range of returns over the past five years.\"",
"title": ""
},
{
"docid": "5356ba20ab62d86c8a3508d557ea4cbb",
"text": "Asset Allocation serves many purposes, not just mitigating risk via a diversification of asset classes, but also allowing you to take a level of risk that is appropriate for a given investor at a given time by how much is allocated to which asset classes. A younger investor with a longer timeframe, may wish to take a lot more risk, investing heavily in equities, and perhaps managed funds that are of the 'aggressive growth' variety, seeking better than market returns. Someone a little older may wish to pull back a bit, especially after a bull market has brought them substantial gains, and begin to 'take money off the table' perhaps by starting to establish some fixed income positions, or pulling back to slightly less risky index, 'value' or 'balanced' funds. An investor who is near or in retirement will generally want even less risk, going to a much more balanced approach with half or more of their investments in fixed income, and the remainder often in income producing 'blue chip' type stocks, or 'income funds'. This allows them to protect a good amount of their wealth from potential loss at a time when they have to be able to depend on it for a majority of their income. An institution such as Yale has very different concerns, and may always be in a more aggressive 'long term' mode since 'retirement' is not a factor for them. They are willing to invest mostly in very aggressive ways, using diversification to protect them from one of those choices 'tanking' but still overall taking a pretty high level of risk, much more so than might be appropriate for an individual who will generally need to seek safety and to preserve gains as they get older. For example look at the PDF that @JLDugger linked, and observe the overall risk level that Yale is taking, and in addition observe the large allocations they make to things like private equity with a 27%+ risk level compared to their very small amount of fixed income with a 10% risk level. Yale has a very long time horizon and invests in a way that is atypical of the needs and concerns of an individual investor. They also have as you pointed out, the economy of scale (with something like #17B in assets?) to afford to hire proven experts, and their own internal PHD level experts to watch over the whole thing, all of which very few individual investors have. For either class of investor, diversification, is a means to mitigate risk by not having all your eggs in one basket. Via having multiple different investments (such as picking multiple individual stocks, or aggressive funds with different approaches, or just an index fund to get multiple stocks) you are protected from being wiped out as might happen if a single choice might fail. For example imagine what would have happened if you had in 2005 put all your money into a single stock with a company that had been showing record profits such as Lehman Brothers, and left it there until 2008 when the stock tanked. or even faster collapses such as Enron, etc that all 'looked great' up until shortly after they failed utterly. Being allocated across multiple asset classes provides some diversification all on it's own, but you can also be diversified within a class. Yale uses the diversification across several asset classes to have lower risk than being invested in a single asset class such as private equity. But their allocation places much more of their funds in high risk classes and much less of their funds in the lowest risk classes such as fixed income.",
"title": ""
},
{
"docid": "30fe1f5527b4099b5136e2ba5d9789d9",
"text": "\"Diversification is spreading your investments around so that one point of risk doesn't sink your whole portfolio. The effect of having a diversified portfolio is that you've always got something that's going up (though, the corollary is that you've also always got something going down... winning overall comes by picking investments worth investing in (not to state the obvious or anything :-) )) It's worth looking at the different types of risk you can mitigate with diversification: Company risk This is the risk that the company you bought actually sucks. For instance, you thought gold was going to go up, and so you bought a gold miner. Say there are only two -- ABC and XYZ. You buy XYZ. Then the CEO reveals their gold mine is played out, and the stock goes splat. You're wiped out. But gold does go up, and ABC does gangbusters, especially now they've got no competition. If you'd bought both XYZ and ABC, you would have diversified your company risk, and you would have been much better off. Say you invested $10K, $5K in each. XYZ goes to zero, and you lose that $5K. ABC goes up 120%, and is now worth $11K. So despite XYZ bankrupting, you're up 10% on your overall position. Sector risk You can categorize stocks by what \"\"sector\"\" they're in. We've already talked about one: gold miners. But there are many more, like utilities, bio-tech, transportation, banks, etc. Stocks in a sector will tend to move together, so you can be right about the company, but if the sector is out of favor, it's going to have a hard time going up. Lets extend the above example. What if you were wrong about gold going up? Then XYZ would still be bankrupt, and ABC would be making less money so they went down as well; say, 20%. At that point, you've only got $4K left. But say that besides gold, you also thought that banks were cheap. So, you split your investment between the gold miners and a couple of banks -- lets call them LMN and OP -- for $2500 each in XYZ, ABC, LMN, and OP. Say you were wrong about gold, but right about banks; LMN goes up 15%, and OP goes up 40%. At that point, your portfolio looks like this: XYZ start $2500 -100% end $0 ABC start $2500 +120% end $5500 LMN start $2500 +15% end $2875 OP start $2500 +40% end $3500 For a portfolio total of: $11,875, or a total gain of 18.75%. See how that works? Region/Country/Currency risk So, now what if everything's been going up in the USA, and everything seems so overpriced? Well, odds are, some area of the world is not over-bought. Like Brazil or England. So, you can buy some Brazilian or English companies, and diversify away from the USA. That way, if the market tanks here, those foreign companies aren't caught in it, and could still go up. This is the same idea as the sector risk, except it's location based, instead of business type based. There is an additional twist to this -- currencies. The Brits use the pound, and the Brazilians use the real. Most small investors don't think about this much, but the value of currencies, including our dollar, fluctuates. If the dollar has been strong, and the pound weak (as it has been, lately), then what happens if that changes? Say you own a British bank, and the dollar weakens and the pound strengthens. Even if that bank doesn't move at all, you would still make a gain. Example: You buy British bank BBB for 40 pounds a share, when each pound costs $1.20. Say after a while, BBB is still 40 pounds/share, but the dollar weakened and the pound strengthened, such that each pound is now worth $1.50. You could sell BBB, and because of the currency exchange once you've got it converted back to dollars you'd have a 25% gain. Market cap risk Sometimes big companies do well, sometimes it's small companies. The small caps are riskier but higher returning. When you think about it, small and mid cap stocks have much more \"\"room to run\"\" than large caps do. It's much easier to double a company worth $1 billion than it is to double a company worth $100 billion. Investment types Stocks aren't the only thing you can invest in. There's also bonds, convertible bonds, CDs, preferred stocks, options and futures. It can get pretty complicated, especially the last two. But each of these investment behaves differently; and again the idea is to have something going up all the time. The classical mix is stocks and bonds. The idea here is that when times are good, the stocks go up; when times are bad, the bonds go up (because they're safer, so more people want them), but mostly they're there to providing steady income and help keep your portfolio from cratering along with the stocks. Currently, this may not work out so well; stocks and bonds have been moving in sync for several years, and with interest rates so low they don't provide much income. So what does this mean to you? I'm going make some assumptions here based on your post. You said single index, self-managed, and don't lower overall risk (and return). I'm going to assume you're a small investor, young, you invest in ETFs, and the single index is the S&P 500 index ETF -- SPY. S&P 500 is, roughly, the 500 biggest companies in the USA. Further, it's weighted -- how much of each stock is in the index -- such that the bigger the company is, the bigger a percentage of the index it is. If slickcharts is right, the top 5 companies combined are already 11% of the index! (Apple, Microsoft, Exxon, Amazon, and Johnson & Johnson). The smallest, News Corp, is a measly 0.008% of the index. In other words, if all you're invested in is SPY, you're invested in a handfull of giant american companies, and a little bit of other stuff besides. To diversify: Company risk and sector risk aren't really relevant to you, since you want broad market ETFs; they've already got that covered. The first thing I would do is add some smaller companies -- get some ETFs for mid cap, and small cap value (not small cap growth; it sucks for structural reasons). Examples are IWR for mid-cap and VBR for small-cap value. After you've done that, and are comfortable with what you have, it may be time to branch out internationally. You can get ETFs for regions (such as the EU - check out IEV), or countries (like Japan - see EWJ). But you'd probably want to start with one that's \"\"all major countries that aren't the USA\"\" - check out EFA. In any case, don't go too crazy with it. As index investing goes, the S&P 500 is not a bad way to go. Feed in anything else a little bit at a time, and take the time to really understand what it is you're investing in. So for example, using the ETFs I mentioned, add in 10% each IWR and VBR. Then after you're comfortable, maybe add 10% EFA, and raise IWR to 20%. What the ultimate percentages are, of course, is something you have to decide for yourself. Or, you could just chuck it all and buy a single Target Date Retirement fund from, say, Vanguard or T. Rowe Price and just not worry about it.\"",
"title": ""
},
{
"docid": "504c08e32f4e3ff825c97a72198693ce",
"text": "\"It depends on what you're talking about. If this is for your retirement accounts, like IRAs, then ABSOLUTELY NOT! In your retirement accounts you should be broadly diversified - not just between stocks, but also other markets like bonds. Target retirement funds and solid conservative or moderate allocation funds are the best 'quick-and-dirty' recommendation for those accounts. Since it's for the long haul, you want to be managing risk, not chasing returns. Returns will happen over the 40 or so years they have to grow. Now, if you're talking about a taxable stock account, and you've gotten past PF questions like \"\"am I saving enough for retirement\"\", and \"\"have I paid off my debt\"\", then the question becomes a little more murky. First, yes, you should be diversified. The bulk of how a stock's movement will be in keeping with how its sector moves; so even a really great stock can get creamed if its sector is going down. Diversification between several sectors will help balance that. However, you will have some advantage in this sector. Knowing which products are good, which products everybody in the industry is excited about, is a huge advantage over other investors. It'll help you pick the ones that go up more when the sector goes up, and down less when the sector goes down. That, over time and investments, really adds up. Just remember that a good company and a good stock investment are not the same thing. A great company can have a sky-high valuation -- and if you buy it at that price, you can sit there and watch your investment sink even as the company is growing and doing great things. Have patience, know which companies are good and which are bad, and wait for the price to come to you. One final note: it also depends on what spot you are in. If you're a young guy looking looking to invest his first few thousand in the market, then go for it. On the other hand, if you're older, and we're talking about a couple hundred grand you've got saved up, then it's a whole different ball of wax. It that spot, you're back to managing risk, and need to build a solid portfolio, at a measured pace.\"",
"title": ""
},
{
"docid": "e1b1556891c640ff506cac3ad191e843",
"text": "Investopedia has a nice article on this here The Key benefit looks like better returns with lower capital. The disadvantage is few brokers offering that can be trusted. Potentially lower return due to margins / spreads. Higher leverage and can become an issue.",
"title": ""
},
{
"docid": "eddf10b9b6dae95cbbd0441684ab2b0a",
"text": "Diversification is an important aspect of precious metals investing. Therefore I would suggest diversifying in a number of different ways:",
"title": ""
},
{
"docid": "f010325a3fe156fe86ddd14c85278e5e",
"text": "\"Of course. \"\"Best\"\" is a subjective term. However relying on the resources of the larger institutions by pooling with them will definitely reduce your own burden with regards to the research and keeping track. So yes, investing in mutual funds and ETFs is a very sound strategy. It would be better to diversify, and not to invest all your money in one fund, or in one industry/area. That said, there are more than enough individuals who do their own research and stock picking and invest, with various degrees of success, in individual securities. Some also employe more advanced strategies such as leveraging, options, futures, margins, etc. These advance strategies come at a greater risk, but may bring a greater rewards as well. So the answer to the question in the subject line is YES. For all the rest - there's no one right or wrong answer, it depends greatly on your abilities, time, risk tolerance, cash available to invest, etc etc.\"",
"title": ""
},
{
"docid": "1bea3acc878bbc52ef38fcc73324835a",
"text": "\"An asset allocation formula is useful because it provides a way to manage risk. Rebalancing preserves your asset allocation. The investment risk of a well-diversified portfolio (with a few ETFs or mutual funds in there to get a wide range of stocks, bonds, and international exposure) is mostly proportional to the asset class distribution. If you started out with half-stocks and half-bonds, and stocks surged 100% over the past few years while bonds have stayed flat, then you may be left with (say) 66% stocks and 33% bonds. Your portfolio is now more vulnerable to future stock market drops (the risk associated with stocks). (Most asset allocation recommendations are a little more specific than a stock/bond split, but I'm sure you can get the idea.) Rebalancing can be profitable because it's a formulaic way to enforce you to \"\"buy low, sell high\"\". Massive recessions notwithstanding, usually not everything in your portfolio will rise and fall at the same time, and some are actually negatively correlated (that's one idea behind diversification, anyway). If your stocks have surged, chances are that bonds are cheaper. This doesn't always work (repeatedly transferring money from bonds into stocks while the market was falling in 2008-2009 could have lost you even more money). Also, if you rebalance frequently, you might incur expenses from the trading (depending on what sort of financial instrument you're holding). It may be more effective to simply channel new money into the sector that you're light on, and limit the major rebalancing of the portfolio so that it's just an occasional thing. Talk to your financial adviser. :)\"",
"title": ""
},
{
"docid": "d5bdbdb32837ac6a5c8af9408ecf14be",
"text": "Diversifying your portfolio between asset A and asset B only reduces the portfolio risk if asset A and asset B are not correlated. If they have either a low correlation or a negative correlation to each other, then you benefit from combining them in a portfolio in terms of risk reduction. The standard deviation of returns will be lower in a portfolio of low or uncorrelated assets. If on the other hand you combine two correlated assets into a portfolio you are doubling down on the same assumption, which means you are not reducing your risk. You are also wasting capital because now you have allocated capital to 2 separate trades / investments yet they have shown a high tendency of moving together. Here is an article that discusses this further: Why Diversify your Stock Portfolio",
"title": ""
},
{
"docid": "934ef0bc0a19ea24509fa1f5c7af0b94",
"text": "In my original question, I was wondering if there was a mathematical convention to help in deciding on whether an equity offering OR debt offering would be a better choice. I should have clarified better in the question, I used Vs. which may have made it unclear.",
"title": ""
},
{
"docid": "f66b45bbd4eac23510e19e9dbe422029",
"text": "Pro: - Faces less redemption pressure and hence the Fund Manager can focus more on long term gains rather than immediate gains. - Works well in emerging markets. - Less churn out in case the market falls sharply, there by making more money in long run. Cons: - No additional money to invest/take advantage of market situation. - Less liquid for investor as he is locked in for a period.",
"title": ""
},
{
"docid": "6f5601bc847b9b759754505aebe97c44",
"text": "Unfortunately I believe there is not a good answer to this because it's not a well posed problem. It sounds like you are looking for a theoretically sound criteria to decide whether to sell or hold. Such a criteria would take the form of calculating the cost of continuing to hold a stock and comparing it to the transactions cost of replacing it in your portfolio. However, your criteria for stock selection doesn't take this form. You appear to have some ad hoc rules defining whether you want the stock in your portfolio that provide no way to calculate a cost of having something in your portfolio you don't want or failing to have something you do want. Criteria for optimally rebalancing a portfolio can't really be more quantitative than the rules that define the portfolio.",
"title": ""
}
] |
fiqa
|
f3a74b8d506ffd6e1a5244a4eaef9bef
|
Moving from Google Finance to Yahoo Finance
|
[
{
"docid": "f1e2b2fb775eb50ea82359cd6eda94ad",
"text": "Perhaps you should use your own tracking software, such as GnuCash, Quicken, Mint, or even Excel. The latter would work given you say you're manually putting in your transactions. There's lots of pre-done spreadsheets for tracking investments if you look around. I'm hoping that a web search gets you help on migrating transaction data, but I've yet to run into any tools to do the export and import beyond a manual effort. Then again, I haven't checked for this lately. Not sure about your other questions, but I'd recommend you edit the question to only contain what you're asking about in the subject.",
"title": ""
}
] |
[
{
"docid": "fe41bd844ccdd880ae9b1f59abe82487",
"text": "\"Google Finance certainly has data for Tokyo Stock Exchange (called TYO on Google) listings. You could create a \"\"portfolio\"\" consisting of the stocks you care about and then visit it once per day (or write a script to do so).\"",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "e50fbda863f078d02e1be7577f198d04",
"text": "http://www.euroinvestor.com/exchanges/nasdaq/macromedia-inc/41408/history will work as DumbCoder states, but didn't contain LEHMQ (Lehman Brother's holding company). You can use Yahoo for companies that have declared bankruptcy, such as Lehman Brothers: http://finance.yahoo.com/q/hp?s=LEHMQ&a=08&b=01&c=2008&d=08&e=30&f=2008&g=d but you have to know the symbol of the holding company.",
"title": ""
},
{
"docid": "14a425ef8cb11db564bada29217d8e6f",
"text": "First - Google's snapshot - Then - Yahoo - I took these snapshots because they will not exist on line after the market opens, and without this context, your question won't make sense. With the two snapshots you can see, Yahoo shows the after hours trades and not just the official market close for the day. The amount it's down is exactly tracked from the close shown on Google. Now you know.",
"title": ""
},
{
"docid": "42a3839e68b1f3ff5b97da306e838cce",
"text": "\"There are several reasons to pay for data instead of using Yahoo Finance, although these reasons don't necessarily apply to you if you're only planning to use the data for personal use. Yahoo will throttle you if you attempt to download too much data in a short time period. You can opt to use the Yahoo Query Language (YQL), which does provide another interface to their financial data apart from simply downloading the CSV files. Although the rate limit is higher for YQL, you may still run into it. An API that a paid data provider exposes will likely have higher thresholds. Although the reliability varies throughout the site, Yahoo Finance isn't considered the most reliable of sources. You can't beat free, of course, but at least for research purposes, the Center for Research in Security Prices (CRSP) at UChicago and Wharton is considered the gold standard. On the commercial side, data providers like eSignal, Bloomberg, Reuters also enjoy widespread popularity. Although both the output from YQL and Yahoo's current CSV output are fairly standard, they won't necessarily remain that way. A commercial API is basically a contract with the data provider that they won't change the format without significant prior notice, but it's reasonable to assume that if Yahoo wanted to, they could make minor changes to the format and break many commercial applications. A change in Yahoo's format would likely break many sites or applications too, but their terms of use do state that Yahoo \"\"may change, suspend, or discontinue any aspect of the Yahoo! Finance Modules at any time, including the availability of any Yahoo! Finance Modules. Yahoo! may also impose limits on certain features and services or restrict your access to parts or all of the Yahoo! Finance Modules or the Yahoo! Web site without notice or liability.\"\" If you're designing a commercial application, a paid provider will probably provide technical support for their API. According to Yahoo Finance's license terms, you can't use the data in a commercial application unless you specifically use their \"\"badges\"\" (whatever those are). See here. In this post, a Yahoo employee states: The Finance TOS is fairly specific. Redistribution of data is only allowed if you are using the badges the team has created. Otherwise, you can use YQL or whatever method to obtain data for personal use. The license itself states that you may not: sell, lease, or sublicense the Yahoo! Finance Modules or access thereto or derive income from the use or provision of the Yahoo! Finance Modules, whether for direct commercial or monetary gain or otherwise, without Yahoo!'s prior, express, written permission In short, for personal use, Yahoo Finance is more than adequate. For research or commercial purposes, a data provider is a better option. Furthermore, many commercial applications require more data than Yahoo provides, e.g. tick-by-tick data for equities, derivatives, futures, data on mergers, etc., which a paid data source will likely provide. Yahoo is also known for inaccuracies in its financial statements; I can't find any examples at the moment, but I had a professor who enjoyed pointing out flaws in the 10K's that he had come across. I've always assumed this is because the data were manually entered, although I would assume EDGAR has some method for automatic retrieval. If you want data that are guaranteed to be accurate, or at least have a support contract associated with them so you know who to bother if it isn't, you'll need to pay for it.\"",
"title": ""
},
{
"docid": "a6cbcbd8b3cddff05df38d1e7b8f0339",
"text": "I won't be able to model stock prices using this information. The pros aren't likely to use Google as much. Even the casual investor is likely to have his own habits. For example, I've come to like how Yahoo permits me to set up a portfolio and follow the stocks I want. And the information that interests me is there, laid out nicely, price, history, insider trades, news etc. But your effort probably still has some discovery value, as it will help you understand when interest in a company suddenly swells above normal. Nothing wrong with a good project like that. Just don't expect to extract too much market-beating success from it. The pros will eat your lunch, take your money, and not even say thanks. Welcome to Money.SE.",
"title": ""
},
{
"docid": "a70f3bb1503144ad1c52173d8d7638ba",
"text": "I can't give you a detailed answer because I'm away from the computer where I use kMyMoney, but IIRC to add investments you have to create new transactions on the 'brokerage account' linked to your investment account.",
"title": ""
},
{
"docid": "8f399907f2221e4bdc9aefb8c11cf52c",
"text": "This is from Google Finance right now.",
"title": ""
},
{
"docid": "3bf4513d6e76ed2e63e58c4b9760adbe",
"text": "On NASDAQ the ^ is used to denote other securities and / to denote warrents for the underlying company. Yahoo maybe using some other designators for same.",
"title": ""
},
{
"docid": "f9c64c3b2016141277efdf4e834774e1",
"text": "Google Finance gives you this information.",
"title": ""
},
{
"docid": "9f726f42e288957f12902d0dad5d50bf",
"text": "\"There is probably a better way, but you can do the following: (1) Right click on the right pointing arrow next to the \"\"1-20 of xx rows\"\" message at the bottom right of the table, and select \"\"Copy link location\"\" (2) Paste that into the location (3) At the end of the pasted text there is a \"\"&output=json\"\", delete that and everything after it. (4) hit enter What you get is a page that displays the set of securities returned by and in a very similar display to the \"\"stock screener\"\" without the UI elements to change your selections. You can bookmark this page.\"",
"title": ""
},
{
"docid": "420f4726f5eff4d17dbcf18d85d62d3b",
"text": "Google Finance and Yahoo Finance have been transitioning their API (data interface) over the last 3 months. They are currently unreliable. If you're just interested in historical price data, I would recommend either Quandl or Tiingo (I am not affiliated with either, but I use them as data sources). Both have the same historical data (open, close, high, low, dividends, etc.) on a daily closing for thousands of Ticker symbols. Each service requires you to register and get a unique token. For basic historical data, there is no charge. I've been using both for many months and the data quality has been excellent and API (at least for python) is very easy! If you have an inclination for python software development, you can read about the drama with Google and Yahoo finance at the pandas-datareader group at https://github.com/pydata/pandas-datareader.",
"title": ""
},
{
"docid": "7f3e8cac96486db24344d65596d6fff2",
"text": "Yahoo Finance has this now, the ticker is CL=F.",
"title": ""
},
{
"docid": "1ca4aa43255f1b1f575ff0e602651839",
"text": "\"Remember that in most news outlets journalists do not get to pick the titles of their articles. That's up to the editor. So even though the article was primarily about ETFs, the reporter made the mistake of including some tangential references to mutual funds. The editor then saw that the article talked about ETFs and mutual funds and -- knowing even less about the subject matter than the reporter, but recognizing that more readers' eyeballs would be attracted to a headline about mutual funds than to a headline about ETFs -- went with the \"\"shocking\"\" headline about the former. In any case, as you already pointed out, ETFs need to know their value throughout the day, as do the investors in that ETF. Even momentary outages of price sources can be disastrous. Although mutual funds do not generally make transactions throughout the day, and fund investors are not typically interested in the fund's NAV more than once per day, the fund managers don't just sit around all day doing nothing and then press a couple buttons before the market closes. They do watch their NAV very closely during the day and think very carefully about which buttons to press at the end of the day. If their source of stock price data goes offline, then they're impacted almost as severely as -- if less visibly than -- an ETF. Asking Yahoo for prices seems straightforward, but (1) you get what you pay for, and (2) these fund companies are built on massive automated infrastructures that expect to receive their data from a certain source in a certain way at a certain time. (And they pay a lot of money in order to be able to expect that.) It would be quite difficult to just feed in manual data, although in the end I suspect some of these companies did just that. Either they fell back to a secondary data supplier, or they manually constructed datasets for their programs to consume.\"",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
}
] |
fiqa
|
8064c0cf1e065c4d9e38d6aefea31043
|
Search index futures in Yahoo Finance or Google Finance
|
[
{
"docid": "3befa06aff1f9bdd4c44321420a6f7d0",
"text": "Options - yes we can :) Options tickers on Yahoo! Finance will be displayed as per new options symbology announced by OCC. The basic parts of new option symbol are: Root symbol + Expiration Year(yy)+ Expiration Month(mm)+ Expiration Day(dd) + Call/Put Indicator (C or P) + Strike price Ex.: AAPL January 19 2013, Put 615 would be AAPL130119P00615000 http://finance.yahoo.com/q?s=AAPL130119P00615000&ql=1 Futures - yes as well (: Ex.: 6A.M12.E would be 6AM12.CME using Yahoo Finance symbology. (simple as that, try it out) Get your major futures symbols from here: http://quotes.ino.com/exchanges/exchange.html?e=CME",
"title": ""
},
{
"docid": "46c454ebb51dfb286d3b5ce34a957a29",
"text": "Neither site offers index futures or options pricing. Your best best is likely to get the quote from a broker who supports trading those vehicles. Free sites usually limit themselves to stocks and sometimes to options chains -- the exception is Reuters where just about any security for which you have the reuters formatted trading symbol can be quoted.",
"title": ""
},
{
"docid": "41d3a9dacac7a4016af8e209ec7fe579",
"text": "Yahoo finance does in fact have futures quotes. But I've found them difficult to search for because you also have to know the expiration codes for the contract to find them. S&P 500 Emini quote for June 2012",
"title": ""
}
] |
[
{
"docid": "a5c9706bacdfd6d5292d408675b78aaf",
"text": "remember that IV is literally the volatility that would be present to equate to the latest price of a particular option contract, assuming the Black-Scholes-Merton model. Yahoo's free finance service lists the IV for all the options that it tracks.",
"title": ""
},
{
"docid": "ae1d9140fa353b223f504333df2c180b",
"text": "For whatever reason, I don't believe they offer it. Yahoo does. A google for google finance VIX turns up people asking the question, but no quote on google.",
"title": ""
},
{
"docid": "3dbac35d169c0bc22c6eedb5fc973372",
"text": "\"http://www.attaincapital.com/alternative-investment-education/managed-futures-newsletter/investment-research-analysis/423 http://www.cta-info.com/cta_stats.htm I just googled \"\"managed futures stats\"\". I'm not 100% sure what your goal is, but I wouldn't look to filter out trades. You're better off grading returns and variance within the returns. http://www.autumngold.com/ Poke around the \"\"top traders\"\" section and compare the returns with the drawdown of the traders. You'll see the \"\"lucky\"\" traders, but you'll also see the high risk guys and low risk guys.\"",
"title": ""
},
{
"docid": "43b5e2eff2438cb0614ae2ecf7afe2da",
"text": "Yes, Alpha Vantage. As MasticatedTesticle points out, it is worth asking where it originally comes from, but it looked to me like a solid source for, in particular, intraday trading data. Additionally, Yahoo finance is done on R (zoo, PerformanceAnalytics libraries don't work anymore as far as I can tell). The numbers look right to me tho, let me know if things are off.",
"title": ""
},
{
"docid": "41a9c5dece5b937bc3e51cd4f09197e1",
"text": "I have been trading Forex and Futures as an independant Trader for almost 3 Years now, and unfortunately i have to agree with pizzlepaps statement that if you have to ask you probably should not be doing it at all. There is a bunch of information out there on futures trading but then again im wondering which futures exactly you want to trade? Are we talking about ES contracts? Dax Contracts? Dow Contracts? Crude Contracts? I mean im going to be honest here i really would like to be of help here but quite frankly i dont know how based on your question, so for now stay away from the futures market until you have done some heavy reading and defined your goals.",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "f9c64c3b2016141277efdf4e834774e1",
"text": "Google Finance gives you this information.",
"title": ""
},
{
"docid": "5bfedbdd63f74534043d2d59fcef16b4",
"text": "Like others have said, mutual funds don't have an intraday NAV, but their ETF equivalents do. Use something like Yahoo Finance and search for the ETF.IV. For example VOO.IV. This will give you not the ETF price (which may be at a premium or discount), but the value of the underlying securities updated every 15 seconds.",
"title": ""
},
{
"docid": "048350598b1c91960caaa3b12a127807",
"text": "Exactly, the way you phrase the question makes it too vague to explain. Futures are very complicated instruments, and you should not be going after futures contracts if you are not educated in exactly how they work. I recommend getting a text on [derivative markets](http://books.google.com/books?id=6fNJGQAACAAJ&dq=Fundamentals%20of%20Derivative%20Markets%20McDonald&source=gbs_book_other_versions) and learn all the ropes before jumping in at all.",
"title": ""
},
{
"docid": "057082b5885da5dc1df7c391596501ef",
"text": "I have been looking into CMEs trading tool. I might just play around with futures on it. You make a good point on that though. I am reading Hull's book on options, futures and derivatives, and so far so good. Only thing I would want to test is options on futures, which is missing :( .",
"title": ""
},
{
"docid": "3ef78ef6158d72eee37c26979b86a54f",
"text": "December, 2, 2011 (03:00pm) :- Nifty Futures up by ( 1.57%) on the strong global crisis. Steps look by USA, Chinese, & European central banks are praised by every investors. Bharat Petroleum up by (7.12%) on the strong crude oil cues in Nynex. Nifty looks a strong support at 4930 & up 100 points on the strong European opening FTSE trading at 5564 up by 75 points, DAX and CAC trading at 3180 up by 50 points. Nifty futures have strong support levels at 4930 & then 4850 & resistance at 5140 & then 530.0 levels.",
"title": ""
},
{
"docid": "4547c62620c5e2a6fb9f620f2a1210cc",
"text": "This would be a nice Raspberry Pi project for Mathematica, which comes bundled free on the Raspbian OS. You can program it up and leave it running. It's not expensive and doesn't use much power. A program to monitor stock prices or volume could be written as simply as :- This checks the volume of trades of Oct 2014 US crude oil futures every 30 seconds and sends an email if the volume jumps by more than 100. The financial data in this example is curated from Yahoo. If specific data is not available or not updated frequently enough, if you can find an alternative online data source it's usually possible read the data in. For example, this is apparently real-time data :- {Crude Oil, 92.79, -0.67, -0.71%} After leaving the above program running while writing this the volume of trades has risen like so :- Edit I just set this running on a Raspberry Pi. I had to use gmail for the email setup as described in this post: Configuring Mathematica to send email from a notebook. Anyway, it's working. Hope I don't get inundated with emails. ;-)",
"title": ""
},
{
"docid": "0ffb9b8fe0358113ea8722c118c083f0",
"text": "I will be messaging you on [**2017-09-21 23:47:45 UTC**](http://www.wolframalpha.com/input/?i=2017-09-21 23:47:45 UTC To Local Time) to remind you of [**this link.**](https://www.reddit.com/r/finance/comments/6oqga3/a_mystery_trader_just_made_a_massive_bet_that_the/dkjog1s) [**52 OTHERS CLICKED THIS LINK**](http://np.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=[https://www.reddit.com/r/finance/comments/6oqga3/a_mystery_trader_just_made_a_massive_bet_that_the/dkjog1s]%0A%0ARemindMe! 2 months) to send a PM to also be reminded and to reduce spam. ^(Parent commenter can ) [^(delete this message to hide from others.)](http://np.reddit.com/message/compose/?to=RemindMeBot&subject=Delete Comment&message=Delete! dkjog91) _____ |[^(FAQs)](http://np.reddit.com/r/RemindMeBot/comments/24duzp/remindmebot_info/)|[^(Custom)](http://np.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=[LINK INSIDE SQUARE BRACKETS else default to FAQs]%0A%0ANOTE: Don't forget to add the time options after the command.%0A%0ARemindMe!)|[^(Your Reminders)](http://np.reddit.com/message/compose/?to=RemindMeBot&subject=List Of Reminders&message=MyReminders!)|[^(Feedback)](http://np.reddit.com/message/compose/?to=RemindMeBotWrangler&subject=Feedback)|[^(Code)](https://github.com/SIlver--/remindmebot-reddit)|[^(Browser Extensions)](https://np.reddit.com/r/RemindMeBot/comments/4kldad/remindmebot_extensions/) |-|-|-|-|-|-|",
"title": ""
},
{
"docid": "3cbc214faddb2d0d98baf6b90d4f198b",
"text": "You find a broker who handles futures accounts. Search on the word Forex and you'll find a number of companies happy to take your money. I trust you understand how futures work, the contract values, margin requirements, etc? You just don't have an account yet, right?",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
}
] |
fiqa
|
c441e93b1a26ee7fb216353c4bb3f337
|
New car cash vs finance
|
[
{
"docid": "5493c7944b022ecf3075500fc2deeafc",
"text": "Yes, maybe. Sometimes the mother company (that makes the car) covers a bit of the loss that comes from the super-offer loan, so the dealer loses a bit less. But generally, you are right. you should be able to talk them into some rebate that gets you around the given number, depending on how good you are a negotiator (and how urgently they need to sell a car)",
"title": ""
},
{
"docid": "bcd026c79da30d4424b9df38978406a4",
"text": "\"The question is about the dealer, right? The dealer isn't providing this financing to you, Alfa is, and they're paying the dealer that same \"\"On the Road\"\" price when you finance the purchase. So the dealer gets the same amount either way. The financing, through Alfa, means your payments go to Alfa. And they're willing to give you 3,000 towards purchase of the car at the dealer in order to motivate those who can afford payments but not full cash for the car. They end up selling more cars this way, keeping the factories busy and employees and stockholders happy along the way. At least, that's how it's supposed to work out.\"",
"title": ""
}
] |
[
{
"docid": "b31d9b98a4891e6facb0202448d55049",
"text": "\"New car loans, used car loans, and refinances have different rates because they have different risks associated with them, different levels of ability to recoup losses if there is a default, and different customer profiles. (I'm assuming third party lender for all of these questions, not financing the dealer arranges, as that has other considerations built into it.) A new car loan is both safer to some extent (as the car is a \"\"known\"\" risk, having no risk of damage/etc. prior to purchase), but also harder to recoup losses (because new cars immediately devalue significantly, while used cars keep more of their value). Thus the APRs are a little different; in general for the same amount a new car will be a bit lower APR, but of course used car loans are typically lower amounts. Refinance is also different; customer profile wise, the customer who is refinancing in these times is likely someone who is a higher risk (as why are they asking for a loan when they're mostly paid off their car?). Otherwise it's fairly similar to a used car, though probably a bit newer than the average used car.\"",
"title": ""
},
{
"docid": "55bcedf9148ed62eafa72d0c3547db05",
"text": "\"The mix how how you present this feels contradictory. You would pull a 'major' portion from the emergency fund (EF), but at the same time, you'll replace it in a month. The first bit scares me, this is not the purpose of that fund, and the issue is the aspect of money that's psychological. Money is a habit, if you justify this use of the EF now, it gets progressively easier for this purchase or that, and the fund loses its intended purpose. If the second half is accurate, that your income would replace that money in a month, i'd say the fund wasn't fully funded to its proper level, 6-9 months of all expenses to get you though issues as bad as a job loss. The great thing I see in your question is what's missing. You're not looking to buy a car with a loan. That puts you in a good situation, and should push those answering to cut you some slack on the one month \"\"bridge loan\"\" from your own savings. Edit - OP add 2 key points, His EF is 3 years expenses (wow, kudos to him!), but he's living like a student (i.e. with parents, which keeps his costs low). If this latter observation seems judgmental, I'll re-edit. The finances of everyone would be far better off if we adopted multigenerational living. The young could save as Fahad is doing, and when parents retire, they can know they are cared for. In the US, I'd say \"\"when you move out, your expenses will go up drastically,\"\" but in this case, that may not happen, or not soon. This is my observation the world is a big place and our answers need to fit the OP's situation, not assume our own standards apply to all. Buy the better car. You saved. You earned it.\"",
"title": ""
},
{
"docid": "0ef7667232ab7ff56a77be06213e42c5",
"text": "\"Yes, he can retract the offer - it was a cash-only offer, and if you're financing, it's no longer \"\"cash\"\". Unless, of course, you get the financing through your local bank / credit union, and they hand you a check (like on a personal loan). Then it's still cash. However, the salesman can still retract the offer unless it's in writing because you haven't signed anything yet. The price of financing will always be higher because the dealer doesn't get all their money today. Also, if you finance, you are not paying just the cost of the vehicle, you are paying interest, so your final cost will be higher (unless you were one of the lucky souls who got 0% financing atop employee pricing, and therefore are actually saving money by having a payment).\"",
"title": ""
},
{
"docid": "b90152e12b9beda4523a34625545dbca",
"text": "\"Your son is in the right. But he broke the \"\"unwritten\"\" rules, which is why the car dealer is upset. Basically, cars are sold in the United States at a breakeven price. The car company makes ALL its money on the financing. If everyone bought \"\"all cash,\"\" the car companies would not be profitable. No one expected anyone, least of all your son, a \"\"young person,\"\" to pay \"\"all cash.\"\" When he did, they lost all the profit on the deal. On the other hand, they signed a contract, your son met all the FORMAL requirements, and if there was an \"\"understanding\"\" (an assumption, actually), that the car was supposed to be financed, your son was not part of it. Good for him. And if necessary, you should be prepared to back him up on court.\"",
"title": ""
},
{
"docid": "230bf99815c0f1b4b3d8aea5c08f2c0f",
"text": "The car dealership doesn't care where you get the cash; they care about it becoming their money immediately and with no risk or complications. Any loan or other arrangements you make to raise the cash is Your Problem, not theirs, unless you arrange the loan through them.",
"title": ""
},
{
"docid": "833192fa2624bd4fca23f6210fe60398",
"text": "It is almost never going to be more economical to buy a new car versus repairing your current car. If you want a new car, that is justification enough.",
"title": ""
},
{
"docid": "1c42f580bbe721965a6f98e30226dc44",
"text": "The other answers have offered some great advice, but here is an alternative that hasn't been mentioned yet. I'm assuming that you have an adequately-sized emergency fund in savings, and that your cars are your only non-mortgage debt. Since you still have car debt, you probably don't have anything saved for buying a new car when your current cars are at the end-of-life. Consider paying off your car loans early, then begin saving for your next car. Having cash in the bank for a car is very freeing, and it changes your mindset when it comes time to purchase a car, as it is easy to waste a lot of money on something that depreciates rapidly when you aren't paying for it immediately. This approach might be counterintuitive if your car loan interest rate is less than your mortgage rate, but you will probably need another car before you need another house, and paying cash for a car is worth doing.",
"title": ""
},
{
"docid": "1d799c3133fcb24c4d751bc73e760e3d",
"text": "\"Lachlan has $600 cash and a car worth $500. That's $1,100. The new car is priced at $21,800. Lachlan needs a loan for $20,700. However, the finance company insists that the buyer must pay a 10% deposit, which is $2,180. Lachlan only has $1,100, so no loan. The car dealer wants to make a sale, so suggests some tricks. The car dealer could buy Lachlan's old banger for $1,500 instead of $500, and sell the new car for $22,800 instead of $21,800. Doesn't make a difference to the dealer, he gets the same amount of cash. Now Lachlan has $600 cash and $1,500 for his car or $2,100 in total. He needs 10% of $22,800 as deposit which is $2,280. That's not quite there but you see how the principle works. Lachlan is about $200 short. So the dealer adds $1,200 to both car prices. Lachlan has $600 cash and a car \"\"worth\"\" $1,700, total $2,300. The new car is sold for $23,000 requiring a $2,300 deposit which works out exactly. How could we have found the right amount without guessing? Lachlan had $1,100. The new car costs $21,800. The dealer increases both prices by x dollars. Lachlan has now $1,100 + x deposit. The car now costs $21,800 + x. The deposit should be 10%, so $1,100 + x = 10% of ($21,800 + x) = $2,180 + 0.1 x. $1,100 + x = $2,180 + 0.1 x : Subtract $1,100 x = $1,080 + 0.1 x : Subtract 0.1 x 0.9 x = $1,080 : Divide by 0.9 x = $1,080 / 0.9 = $1,200 The dealer inflates the cost of the new car and the value of the old car by $1,200. Now that's the theory. In practice I don't know how the finance company feels about this, and if they would be happy if they found out.\"",
"title": ""
},
{
"docid": "11692d59ac54be45ba7425bb06463446",
"text": "The only reason to lend the money in this scenario is cashflow. But considering you buy a $15000 car, your lifestyle is not super luxurious, so $15000 spare cash is enough.",
"title": ""
},
{
"docid": "8d280f9654cc7e6f9132494b19bc1d4f",
"text": "Not long after college in my new job I bought a used car with payments, I have never done that since. I just don't like having a car payment. I have bought every car since then with cash. You should never borrow money to buy a car There are several things that come into play when buying a car. When you are shopping with cash you tend to be more conservative with your purchases look at this Study on Credit card purchases. A Dunn & Bradstreet study found that people spend 12-18% more when using credit cards than when using cash. And McDonald's found that the average transaction rose from $4.50 to $7.00 when customers used plastic instead of cash. I would bet you if you had $27,000 dollars cash in your hand you wouldn't buy that car. You'd find a better deal, and or a cheaper car. When you finance it, it just doesn't seem to hurt as bad. Even though it's worse because now you are paying interest. A new car is just insanity unless you have a high net worth, at least seven figures. Your $27,000 car in 5 years will be worth about $6500. That's like striking a match to $340 dollars a month, you can't afford to lose that much money. Pay Cash If you lose your job, get hurt, or any number of things that can cost you money or reduce your income, it's no problem with a paid for car. They don't repo paid for cars. You have so much more flexibility when you don't have payments. You mention you have 10k in cash, and a $2000 a month positive cash flow. I would find a deal on a 8000 - 9000 car I would not buy from a dealer*. Sell the car you have put that money with the positive cash flow and every other dime you can get at your student loans and any other debt you have, keep renting cheap keep the college lifestyle (broke) until you are completely out of debt. Then I would save for a house. Finally I would read this Dave Ramsey book, if I would have read this at your age, I would literally be a millionaire by now, I'm 37. *Don't buy from a dealer Find a private sale car that you can get a deal on, pay less than Kelly Blue Book. Pay a little money $50 - 75 to have an automotive technician to check it out for you and get a car fax, to make sure there are no major problems. I have worked in the automotive industry for 20 + years and you rarely get a good deal from a dealer. “Everything popular is wrong.” Oscar Wilde",
"title": ""
},
{
"docid": "2a4e4589e77150edb6090a7c725d0b86",
"text": "I am going to give advice that is slightly differently based on my own experiences. First, regarding the financing, I have found that the dealers do in fact have access to the best interest rates, but only after negotiating with a better financing offer from a bank. When I bought my current car, the dealer was offering somewhere around 3.3%, which I knew was way above the current industry standard and I knew I had good credit. So, like I did with my previous car and my wife's car, I went to local and national banks, came back with deals around 2.5 or 2.6%. When I told the dealer, they were able to offer 2.19%. So it's ok to go with the dealer's financing, just never take them at face value. Whatever they offer you and no matter how much they insist it's the best deal, never believe it! They can do better! With my first car, I had little credit history, similar to your situation, and interest rates were much higher then, like 6 - 8%. The dealer offered me 10%. I almost walked out the door laughing. I went to my own bank and they offered me 8%, which was still high, but better than 10%. Suddenly, the dealer could do 7.5% with a 0.25% discount if I auto-pay through my checking account. Down-payment wise, there is nothing wrong with a 35% down payment. When I purchased my current car, I put 50% down. All else being equal, the more cash down, the better off you'll be. The only issue is to weigh that down payment and interest rate against the cost of other debts you may have. If you have a 7% student loan and the car loan is only 3%, you're better off paying the minimum on the car and using your cash to pay down your student loan. Unless your student loan balance is significantly more than the 8k you need to finance (like a 20k or 30k loan). Also remember that a car is a depreciating asset. I pay off cars as fast as I can. They are terrible debt to have. A home can rise in value, offsetting a mortgage. Your education keeps you employed and employable and will certainly not make you dumber, so that is a win. But a car? You pay $15k for a car that will be worth $14k the next day and $10k a year from now. It's easy to get underwater with a car loan if the down payment is small, interest rate high, and the car loses value quickly. To make sure I answer your questions: Do you guys think it's a good idea to put that much down on the car? If you can afford it and it will not interfere with repayment of much higher interest debts, then yes. A car loan is a major liability, so if you can minimize the debt, you'll be better off. What interest rate is reasonable based on my credit score? I am not a banker, loan officer, or dealer, so I cannot answer this with much credibility. But given today's market, 2.5 - 4% seems reasonable. Do you think I'll get approved? Probably, but only one way to find out!",
"title": ""
},
{
"docid": "ac5e3eceb0f3f7efed7542521895e212",
"text": "I have gotten a letter of credit from my credit union stating the maximum amount I can finance. Of course I don't show the dealer the letter until after we have finalized the deal. I Then return in 3 business days with a cashiers check for the purchase price. In one case since the letter was for an amount greater then the purchase price I was able drive the car off the lot without having to make a deposit. In another case they insisted on a $100 deposit before I drove the car off the lot. I have also had them insist on me applying for their in-house loan, which was cancelled when I returned with the cashiers check. The procedure was similar regardless If I was getting a loan from the credit union, or paying for the car without the use of a loan. The letter didn't say how much was loan, and how much was my money. Unless you know the exact amount, including all taxes and fees,in advance you can't get a check in advance. If you are using a loan the bank/credit Union will want the car title in their name.",
"title": ""
},
{
"docid": "83f722d2f398117aafd522e4bfb3384e",
"text": "I think you are making this more complicated that it has to be. In the end you will end up with a car that you paid X, and is worth Y. Your numbers are a bit hard to follow. Hopefully I got this right. I am no accountant, this is how I would figure the deal: The payments made are irrelevant. The downpayment is irrelevant as it is still a reduction in net worth. Your current car has a asset value of <29,500>. That should make anyone pause a bit. In order to get into this new car you will have to finance the shortfall on the current car (29,500), the price of the vehicle (45,300), the immediate depreciation (say 7,000). In the end you will have a car worth 38K and owe 82K. So you will have a asset value of <44,000>. Obviously a much worse situation. To do this car deal it would cost the person 14,500 of net worth the day the deal was done. As time marched on, it would be more as the reduction in debt is unlikely to keep up with the depreciation. Additionally the new car purchase screen shows a payment of $609/month if you bought the car with zero down. Except you don't have zero down, you have -29,500 down. Making the car payment higher, I estamate 1005/month with 3.5%@84 months. So rather than having a hit to your cash flow of $567 for 69 more months, you would have a payment of about $1000 for 84 months if you could obtain the interest rate of 3.5%. Those are the two things I would focus on is the reduction in net worth and the cash flow liability. I understand you are trying to get a feel for things, but there are two things that make this very unrealistic. The first is financing. It is unlikely that financing could be obtained with this deal and if it could this would be considered a sub-prime loan. However, perhaps a relative could finance the deal. Secondly, there is no way even a moderately financially responsible spouse would approve this deal. That is provided there were not sigificant assets, like a few million. If that is the case why not just write a check?",
"title": ""
},
{
"docid": "fbe3c32df23d6bab65850a0504a96d0d",
"text": "Very generally speaking if you have a loan, in which something is used as collateral, the leader will likely require you to insure that collateral. In your case that would be a car. Yes certainly a lender will require you to insure the vehicle that they finance (Toyota or otherwise). Of course, if you purchase a vehicle for cash (which is advisable anyway), then the insurance option is somewhat yours. Some states may require that a certain amount of coverage is carried on a registered vehicle. However, you may be able to drop the collision, rental car, and other options from your policy saving you some money. So you buy a new car for cash ($25K or so) and store the thing. What happens if the car suffers damage during storage? Are you willing to save a few dollars to have the loss of an asset? You will have to insure the thing in some way and I bet if you buy the proper policy the amount save will be very minimal. Sure you could drop the road side assistance, rental car, and some other options, during your storage time but that probably will not amount to a lot of money.",
"title": ""
},
{
"docid": "bf8e57c340cfe4475615371f4ab62bad",
"text": "\"as a used dealer in subprime sales, finance has to be higher than cash because every finance deal has a lender that takes a percentage \"\"discount\"\" on every deal financed. if you notice a dealer is hesitant to give a price before knowing if cash or finance, because every bit of a cash deal's profit will be taken by a finance company in order to finance the deal and then there's no deal. you might be approved but if you're not willing to pay more for a finance deal, the deal isn't happening if I have $5000 in a car, you want to buy it for $6000 and the finance lender wants to take $1200 as a \"\"buy-fee\"\" leaving me $4800 in the end.\"",
"title": ""
}
] |
fiqa
|
39678ac3f402927358285f32b4868a93
|
Why does Google Finance show the NASDAQ Composite way up but Yahoo! Finance shows it slightly down?
|
[
{
"docid": "14a425ef8cb11db564bada29217d8e6f",
"text": "First - Google's snapshot - Then - Yahoo - I took these snapshots because they will not exist on line after the market opens, and without this context, your question won't make sense. With the two snapshots you can see, Yahoo shows the after hours trades and not just the official market close for the day. The amount it's down is exactly tracked from the close shown on Google. Now you know.",
"title": ""
}
] |
[
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "402212bfb569a8f87f74352254c9928e",
"text": "Yahoo's primary business isn't providing mutual fund performance data. They aim to be convenient, but often leave something to be desired in terms of completeness. Try Morningstar instead. Their mission is investment research. Here's a link to Morningstar's data for the fund you specified. If you scroll down, you'll see:",
"title": ""
},
{
"docid": "fc995ec5e7c0691a5351985999c81cc2",
"text": "For stock splits, let's say stock XYZ closed at 100 on February 5. Then on February 6, it undergoes a 2-for-1 split and closes the day at 51. In Yahoo's historical prices for XYZ, you will see that it closed at 51 on Feb 6, but all of the closing prices for the previous days will be divided by 2. So for Feb 5, it will say the closing price was 50 instead of 100. For dividends, let's say stock ABC closed at 200 on December 18. Then on December 19, the stock increases in price by $2 but it pays out a $1 dividend. In Yahoo's historical prices for XYZ, you will see that it closed at 200 on Dec 18 and 201 on Dec 19. Yahoo adjusts the closing price for Dec 19 to factor in the dividend.",
"title": ""
},
{
"docid": "43b5e2eff2438cb0614ae2ecf7afe2da",
"text": "Yes, Alpha Vantage. As MasticatedTesticle points out, it is worth asking where it originally comes from, but it looked to me like a solid source for, in particular, intraday trading data. Additionally, Yahoo finance is done on R (zoo, PerformanceAnalytics libraries don't work anymore as far as I can tell). The numbers look right to me tho, let me know if things are off.",
"title": ""
},
{
"docid": "1ca4aa43255f1b1f575ff0e602651839",
"text": "\"Remember that in most news outlets journalists do not get to pick the titles of their articles. That's up to the editor. So even though the article was primarily about ETFs, the reporter made the mistake of including some tangential references to mutual funds. The editor then saw that the article talked about ETFs and mutual funds and -- knowing even less about the subject matter than the reporter, but recognizing that more readers' eyeballs would be attracted to a headline about mutual funds than to a headline about ETFs -- went with the \"\"shocking\"\" headline about the former. In any case, as you already pointed out, ETFs need to know their value throughout the day, as do the investors in that ETF. Even momentary outages of price sources can be disastrous. Although mutual funds do not generally make transactions throughout the day, and fund investors are not typically interested in the fund's NAV more than once per day, the fund managers don't just sit around all day doing nothing and then press a couple buttons before the market closes. They do watch their NAV very closely during the day and think very carefully about which buttons to press at the end of the day. If their source of stock price data goes offline, then they're impacted almost as severely as -- if less visibly than -- an ETF. Asking Yahoo for prices seems straightforward, but (1) you get what you pay for, and (2) these fund companies are built on massive automated infrastructures that expect to receive their data from a certain source in a certain way at a certain time. (And they pay a lot of money in order to be able to expect that.) It would be quite difficult to just feed in manual data, although in the end I suspect some of these companies did just that. Either they fell back to a secondary data supplier, or they manually constructed datasets for their programs to consume.\"",
"title": ""
},
{
"docid": "7d027612ddcd870c80169012f36ef6d5",
"text": "In general, the short answer is to use SEDAR, the Canadian database that compiles financial statements for Canadian companies. The financial statements for Pacific Rubiales Energy Corp can be found here. The long answer is that the data might be missing because in Canada, each province has their own agency to regulate securities. Yahoo might not compile information from such a wide array of sources. If other countries also have a decentralized system, Yahoo might not take the time to compile financial information from all these sources. There are a myriad of other reasons that could cause this too, however. This is why SEDAR is useful; it 's the Canadian equivalent of the SEC's EDGAR database, and it maintains a sizeable database of financial statements.",
"title": ""
},
{
"docid": "e4a90d1ebbcee62fce3683b0de21ecd4",
"text": "I'm a big believer in pulling the quarterly and or annual statements and deriving your own analysis. The automated parsing systems at Google, Yahoo, and others are a good starting point and they'll let you generally compare various metrics of different companies or market segments. With that in mind, there are any number of reasons Google's scripts could have broken out or combined a couple of cash flow line items. If you're digging this deep in the weeds on this company you should pull the SEC filings and build out your own data.",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "47e1b1d01bb31194a38b0bdea0b8fbe0",
"text": "\"The charts on nasdaq.com are log based, if you look closely you can see that the spacing between evenly incremented prices is tighter at the top of the chart and wider at the bottom. It's easiest to see on a stock with a wide price range using candlestick where you can clearly see the grid. I'm also not seeing the \"\"absurdism\"\" you indicate when I look at google finance with the settings ticked to use log on the price axis. I see what I'd expect which is basically a given vertical differential on the price axis representing the same percentage change in price no matter where it is located. For example if I look at GOOG from the earliest date they have (Aug 20 2004) to a nice high point (dec 7 2007) I see a cart where the gap from the the bottom of the chart (seems to be right around 100) to the 200 point, (a 100% increase) is the same as from 200 to 400 (a 100% increase) is the same as 400 to 800 (a 100# increase) That's exactly what I expect from a 'log' chart on a financial site, each relative move up or down of the same distance, represents the same relative change in value. So I'm having difficulty understanding what your complaint is. (note: I'm using chrome, which is the browser I'd expect to work best with any google website. results with other browsers could of course vary) If you want to do some other wacky math with the axis then I humbly suggest that something like Excel is your friend. Goto the charts at nasdaq.com get the chart displaying the period you care about, click the chart to display the unlying data, there will be an option to download the data. cram it into excel and go wild as you want with charting it out. e.g. note that step 2 links to client side javascript, so you will need javascript enabled, if you are running something like noscript, disable it for this site. Also since the data opens in a new window, you may also need to enabled 'popups' for the site. (and yes, I sometimes get an annoying news alert advert popup and have to close it when the chart first appears.. oh well it pays the rent and nasdaq is not charging you so for access so such is the price for a free site. )\"",
"title": ""
},
{
"docid": "d424b29f29d724e29c526bee6f6ce5bf",
"text": "The yield on Div Data is showing 20% ((3.77/Current Price)*100)) because that only accounts for last years dividend. If you look at the left column, the 52 week dividend yield is the same as google(1.6%). This is calculated taking an average of n number of years. The data is slightly off as one of those sites would have used an extra year.",
"title": ""
},
{
"docid": "752bb99d8cc3124e1fcb2118204503bf",
"text": "\"Why there is this huge difference? I am not able to reconcile Yahoo's answer of 5.75%, even using their definition for ROA of: Return on Assets Formula: Earnings from Continuing Operations / Average Total Equity This ratio shows percentage of Returns to Total Assets of the company. This is a useful measure in analyzing how well a company uses its assets to produce earnings. I suspect the \"\"Average Total Equity\"\" in their formula is a typo, but using either measure I cannot come up with 5.75% for any 12-month period. I can, however, match MarketWatch's answer by looking at the 2016 fiscal year totals and using a \"\"traditional\"\" formula of Net Income / Average Total Assets: I'm NOT saying that MatketWatch is right and Yahoo is wrong - MW is using fiscal year totals while Yahoo is using trailing 12-month numbers, and Yahoo uses \"\"Earnings from Continuing Operations\"\", but even using that number (which Yahoo calculates) I am not able to reconcile the 5.75% they give.\"",
"title": ""
},
{
"docid": "ae1d9140fa353b223f504333df2c180b",
"text": "For whatever reason, I don't believe they offer it. Yahoo does. A google for google finance VIX turns up people asking the question, but no quote on google.",
"title": ""
},
{
"docid": "835aea544af9ee19eb114bf793e8f425",
"text": "\"I keep spreadsheets that verify each $ distribution versus the rate times number of shares owned. For mutual funds, I would use Yahoo's historical data, but sometimes shows up late (a few days, a week?) and it isn't always quite accurate enough. A while back I discovered that MSN had excellent data when using their market price chart with dividends \"\"turned on,\"\" HOWEVER very recently they have revamped their site and the trusty URLs I have previously used no longer work AND after considerable browsing, I can no longer find this level of detail anywhere on their site !=( Happily, the note above led me to the Google business site, and it looks like I am \"\"back in business\"\"... THANKS!\"",
"title": ""
},
{
"docid": "a6cf13ea4d096712e382bab3746657bf",
"text": "\"BestInvest is a UK site looking at that URL, base on the \"\"co.uk\"\" ending. Yahoo! Finance that you use is a US-based site unless you add something else to the URL. UK & Ireland Yahoo! Finance is different from where you were as there is something to be said for where are you looking. If I was looking for a quarter dollar there are Canadian and American coins that meet this so there is something to be said for a higher level of categorization being done. \"\"EUN.L\"\" would likely denote the \"\"London\"\" exchange as tickers are exchange-specific you do realize, right?\"",
"title": ""
},
{
"docid": "d9f08fc15393c1e8664baf7badbf7311",
"text": "It looks like GOOG did not have a pre-market trade until 7:14 am ET, so Google Finance was still reporting the last trade it had, which was in the after-hours session yesterday. FB, on the other hand, was trading like crazy after-hours yesterday and pre-market today as it had an earnings report yesterday.",
"title": ""
}
] |
fiqa
|
c17902bc2b61814edda5c038171c9f6b
|
Google Finance Cash Flow Statement
|
[
{
"docid": "e4a90d1ebbcee62fce3683b0de21ecd4",
"text": "I'm a big believer in pulling the quarterly and or annual statements and deriving your own analysis. The automated parsing systems at Google, Yahoo, and others are a good starting point and they'll let you generally compare various metrics of different companies or market segments. With that in mind, there are any number of reasons Google's scripts could have broken out or combined a couple of cash flow line items. If you're digging this deep in the weeds on this company you should pull the SEC filings and build out your own data.",
"title": ""
}
] |
[
{
"docid": "8ad8c31cf38ded9ae11e02d78b881164",
"text": "\"Thank you for the in-depth, detailed explanation; it's refreshing to see a concise, non verbose explanation on reddit. I have a couple of questions, if that's alright. Firstly, concerning mezzanine investors. Based on my understanding from Google, these people invest after a venture has been partially financed (can I use venture like that in a financial context, or does it refer specifically to venture capital?) so they would receive a smaller return, yes? Is mezzanine investing particularly profitable? It sounds like you'd need a wide portfolio. Secondly, why is dilution so important further down the road? Is it to do with valuation? Finally, at what point would a company aim to meet an IPO? Is it case specific, or is there a general understanding of the \"\"best time\"\"? Thank you so much for answering my questions.\"",
"title": ""
},
{
"docid": "9b5e65391762cad073c42a9fac453c4d",
"text": "The issue I run into with that is that it does nothing to change the cash flows over the five years because it doesn't change any of the numbers across the board. This course has the worst worded assignments I have ever seen and I appreciate your assistance.",
"title": ""
},
{
"docid": "efde1ab1a9035da2874810c95db67d9e",
"text": "\"I think you're on the right track. Your #2 journal entry is incorrect. It should be (I usually put the debit entry on top, but I followed your formatting) I'm assuming your employer uses an accountable reimbursement plan (reimbursing you when you turn in your payment bill/receipts). This is not salary. Reimbursements under the accountable plan in the US are not taxed as income. If you think about it though, \"\"phone expense\"\" isn't really your phone expense. So, instead of #1 entry, you could make an account receivable, or other current asset account, maybe call it Reimbursables - cellphone, and debit this account, and credit your cash account. When you receive the $30 back, you will reverse the entries on the day of payment. If you do it this way, you should be able to see a list of receivables outstanding (I'm not too familiar with GNUCash but I'm sure it has this type of report).\"",
"title": ""
},
{
"docid": "3daa8dfcc2bb62b6a3a6ee4291dda11f",
"text": "Google Finance portfolios take into account splits and cash deposits/withdrawals.",
"title": ""
},
{
"docid": "9764ba3afd9210806de741e49eaf845a",
"text": "\"Google Docs spreadsheets have a function for filling in stock and fund prices. You can use that data to graph (fund1 / fund2) over some time period. Syntax: =GoogleFinance(\"\"symbol\"\", \"\"attribute\"\", \"\"start_date\"\", \"\"num_days|end_date\"\", \"\"interval\"\") where: This analysis won’t include dividends or distributions. Yahoo provides adjusted data, if you want to include that.\"",
"title": ""
},
{
"docid": "dd8db8786f838db8585c79d79d3e10c8",
"text": "I have a discounted cash flow that's monthly. My annualized discount rate is 8%. 1)What is the formula to turn the annualized rate into a monthly rate? 2)What is the formula to find out the NPV of monthly cash flows? For example, if I get $1000, $2000, and $3000 in months 1, 2, and 3, how do I calculate how much each of those are equal to as a present value if the annual discount rate is 8%?",
"title": ""
},
{
"docid": "b75f0705566b077e94ec8e033f33d09e",
"text": "Inflows to the US equity market can come from a variety of sources; for instance: You were paid a year-end bonus and decided to invest it in US equities instead of foreign equities, bonds, savings or debt reduction. You sold foreign equities, bonds, or other non-US equities and decided to invest in US equities. You decided a better use of cash in a savings account, CD or money market fund, was to invest in US equities. If for every buyer, there's a seller, doesn't that also mean that there were $25B in outflows in the same time period? Not necessarily. Generally, the mentions we see of inflows and outflows are net; that is, the gross investment in US equities, minus gross sales of US equities equals net inflows or outflows. The mere fact that I sold my position in, say, Caterpillar, doesn't mean that I had to re-invest in US equities. I may have bought a bond or a CD or a house. Because of fluctuations in existing stocks market value, bankruptcies and new issues, US equities never are and never will be a zero-sum game.",
"title": ""
},
{
"docid": "f140602b8d3a82ed0ca20c229cbe9769",
"text": "\"Their interest expense was $17M. Where you see $5.14/sh in Key Statistics, any daily interest received is more than canceled out by the expense paid at the same time. I understand your concern, but this company is not \"\"sitting on cash\"\" as are Apple, Google, etc. Short term rates are well below 1%, 1yr tbill looks like about .2%. So strictly speaking, each share might have 1 cent interest you need to concern yourself with. Disclaimer to other readers - This has nothing to do with taxes. OP is asking about a specific part of the company cash flow. His worst case is $1 per 100 shares.\"",
"title": ""
},
{
"docid": "e3ddaf7271004c475e64b50bd5c65277",
"text": "\"This formula is not calculating \"\"Earnings\"\". Instead, it is calculating \"\"Free Cash Flow from Operations\"\". As the original poster notes, the \"\"Earnings\"\" calculation subtracted out depreciation and amortization. The \"\"Free Cash Flow from Operations\"\" adds these values back, but for two different reasons:\"",
"title": ""
},
{
"docid": "242876aa631d68d5e2aa0e20a00e08bf",
"text": "\"I was wondering how \"\"future cash flows of the asset\"\" are predicted? Are they also predicted using fundamental and/or technical analysis? There are a many ways to forecast the future cash flows of assets. For example, for companies: It seems like calculating expected/required rate using CAPM does not belong to either fundamental or technical analysis, does it? I would qualify the CAPM as quantitative analysis because it's mathematics and statistics. It's not really fundamental since its does not relies on economical data (except the prices). And as for technical analysis, the term is often used as a synonym for graphical analysis or chartism, but quantitative analysis can also be referred as technical analysis. the present value of future cash flows [...] (called intrinsic price/value, if I am correct?) Yes you are correct. I wonder when deciding whether an asset is over/fair/under-valued, ususally what kind of price is compared to what other kind of price? If it's only to compare with the price, usually, the Net asset value (which is the book value), the Discount Cash flows (the intrinsic value) and the price of comparable companies and the CAPM are used in comparison to current market price of the asset that you are studying. Why is it in the quote to compare the first two kinds of prices, instead of comparing the current real price on the markets to any of the other three kinds? Actually the last line of the quote says that the comparison is done on the observed price which is the market price (the other prices can't really be observed). But, think that the part: an asset is correctly priced when its estimated price is the same as the present value of future cash flows of the asset means that, since the CAPM gives you an expected rate of return, by using this rate to compute the present value of future cash flows of the asset, you should have the same predicted price. I wrote this post explaining some valuation strategies. Maybe you can find some more information by reading it.\"",
"title": ""
},
{
"docid": "d1dbe7bda5a57a5d62c4680327a932c6",
"text": "It is difficult to reconcile historical balance sheets with historical cash flow statements because there are adjustments that are not always clearly disclosed. Practitioners consider activity on historical cash flow statements but generally don't invest time reconciling historical accounts, instead focusing on balancing projected balance sheets / cash flow statements. If you had non-public internal books, you could reconcile the figures (presuming they are accurate). In regards to Mike Haskel's comment, there's also a section pertaining to operating capital, not just effects on net income.",
"title": ""
},
{
"docid": "79f1a5f67ed8cd607f935dae6a14f53f",
"text": "Not quite the usual DCF or valuation question, but more FP&A: any ideas how to bridge cash forecast to financial forecast? To clarify, financial forecast is mostly done on an accrual basis whereas cash is outflows and inflows. Trying to figure out how to have better visibility into cash discrepancies",
"title": ""
},
{
"docid": "1ebc364846535cd64021290e9b7af494",
"text": "You could create your own spreadsheet of Cash Flows and use the XIRR function in Excel: The formula is:",
"title": ""
},
{
"docid": "0b055c497ebf3938a1c1d306b56febe6",
"text": "It is. The outstanding value is the net cash flow, but it will always be higher than cash outflow due to a constant growth rate/expected return. I was slightly confused when my manager told me to find the IRR before and after cash inflows (the whole life of the investment). Especially as IRR after cash inflows is higher than the former.",
"title": ""
},
{
"docid": "1754c182047fa24bb9978d4df8af2c42",
"text": "Cash flow is needed for expansion, either to increase manufacturing capacity or to expand the workforce. Other times companies use it to purchase other companies. Microsoft and Google have both used their cash or stocks to purchase companies. Examples by Google include YouTube, Keyhole (Google Earth), and now part of Motorola to expand into Phones. If you are investing for the future, you don't want a lot of dividends. They do bring tax issues. That is not a big problem if you are investing in an IRA or 401K. It is an issue if the non-tax-defered mutual fund distributes those dividends via the 1099, forcing you to address it on your taxes each year. Some investors do like dividends, but they are looking for their investments to generate cash. Who would require it? Would it be an SEC requirement? Even more government paperwork for companies.",
"title": ""
}
] |
fiqa
|
34620286e894e548ad64f1b452992c5b
|
Yahoo finance vs SEC filings fundamentals
|
[
{
"docid": "2e985fd0802a5664343a1f2e720c11ad",
"text": "\"Sure, Yahoo Finance makes mistakes from time to time. That's the nature of free data. However, I think the issue here is that yahoo is aggregating several line items into one. Like maybe reporting cash equivalents plus total investment securities minus loans as \"\"cash equivalents.\"\" This aggregation is done by a computer program somewhere and may or may not be appropriate for a particular purpose and firm. For this reason, if you are trying to do top quality research, it's always better to go to the original SEC filings, if you can. Then you will know for sure which items you are looking at. The only mistakes will be the ones made by the accountants at the firm in question. If there's a reason you prefer to use yahoo, like if it's easier for your code to scrape, then spend a little time comparing to the SEC filing to ensure you know where the numbers really come from before using it.\"",
"title": ""
}
] |
[
{
"docid": "7978a163ea6fbead1bd037bcc1a14902",
"text": "I also searched for some time before discovering Market Archive, which AFAIK is the most affordable option that basically gives you a massive multi-GB dump of data. I needed sufficient data to build a model and didn't want to work through an API or have to hand-pick the securities to train from. After trying to do this on my own by scraping Yahoo and using the various known tools, I decided my time was better spent not dealing with rate-limiting issues and parsing quirks and whatnot, so I just subscribed to Market Archive (they update the data daily).",
"title": ""
},
{
"docid": "793747651d0125a3ed9bc1db898787a9",
"text": "Well, it also discusses other traditional valuation techniques such as the economic profit model and it has a chapter on real option valuation. But I would not label those exotic valuation methods. However, I would say that the CFA challenge is much about standard valuation methods due to the limited page limit and considering that there should properly also be an analysis of the external and internal environment to determine the future prospects of the given company.",
"title": ""
},
{
"docid": "f34126938100d1ea659c4147bd5c1df9",
"text": "\"The SEC requires a certain format when submitting filings, which generally does not line up with how documents are typeset for printing. Rather than typeset the entire document again, it's just sort of accepted that the format in EDGAR will suck. Typesetters actually call the process \"\"EDGARizing.\"\" (I'm not making this up, I used to work in the department at a mutual fund company that put together the financial reports for the funds.) My guess is it's a relic from legacy systems at the SEC that can't handle newer formats like PDF.\"",
"title": ""
},
{
"docid": "5b4bcb6123a3389992ed76936b0d2204",
"text": "You will need to merge CRSP with the Compustat Annual Fundamentals database, since CRSP only contains stock price/return data, whereas Compustat has data on total assets and other accounting variables. What software are you using? It's usually very easy to filter the data after loading it into your software.",
"title": ""
},
{
"docid": "b622bc6d4c5c0e320f76c82c2ef0411a",
"text": "\"SEC filings do not contain this information, generally. You can find intangible assets on balance sheets, but not as detailed as writing down every asset separately, only aggregated at some level (may be as detailed as specifying \"\"patents\"\" as a separate line, although even that I wouldn't count on). Companies may hold different rights to different patents in different countries, patents are being granted and expired constantly, and unless this is a pharma industry or a startup - each single patent doesn't have a critical bearing on the company performance.\"",
"title": ""
},
{
"docid": "9764ba3afd9210806de741e49eaf845a",
"text": "\"Google Docs spreadsheets have a function for filling in stock and fund prices. You can use that data to graph (fund1 / fund2) over some time period. Syntax: =GoogleFinance(\"\"symbol\"\", \"\"attribute\"\", \"\"start_date\"\", \"\"num_days|end_date\"\", \"\"interval\"\") where: This analysis won’t include dividends or distributions. Yahoo provides adjusted data, if you want to include that.\"",
"title": ""
},
{
"docid": "756e78426f383d7d85ced0fe4ffce165",
"text": "The 15% Alibaba stake was invested in way before Mayer's came on board. It's worth $51.75B right now. Yahoo Japan is an autonomous company, that Yahoo has a 36% stake in, spun off well before Mayer's came on board and that stake is conservatively worth$10B. Yahoo market cap is only $49B right now. If anything, Marissa Mayers tenure just killed off the core value of Yahoo itself to the level that it's a liability and it's asset portfolio is the only thing holding it aloft.",
"title": ""
},
{
"docid": "2b91ea9ba00641d019c71d2986da2f19",
"text": "the financial information is generally filed via SEDAR (Canada) or SEC (US) before the conference call with the investment community. This can take before either before the market opens or after the market closes. The information is generally distribute to the various newswire service and company website at the same time the filing is made with SEDAR/SEC.",
"title": ""
},
{
"docid": "c139204ef8db6cebd5386f5e6f653212",
"text": "You'd have to buy that information. Quoting from this page, Commercial Historical Data Higher resolution and more complete datasets are generally not available for free. Below is a list of vendors which have passed our quality screening (in total, we screened over a dozen vendors). To qualify, the vendor must aggregate data from all US national/regional exchanges as only complete datasets are suitable for research use. The last point is especially important as there are many vendors who just get data from a couple sources and is missing important information such as dark pool trades. They offer some alternatives for free data: Daily Resolution Data 1) Yahoo! Finance– Daily resolution data, with split/dividend adjustments can be downloaded from here. The download procedure can be automated using this tool. Note, Yahoo quite frequently has errors in its database and does not contain data for delisted symbols. 2) QuantQuote Free Data– QuantQuote offers free daily resolution data for the S&P500 at this web page under the Free Data tab. The data accounts for symbol changes, splits, and dividends, and is largely free of the errors found in the Yahoo data. Note, only 500 symbols are available unlike Yahoo which provides all listed symbols. And they list recommendations about who to buy the data from.",
"title": ""
},
{
"docid": "a55c561f1b764a53cd32c5d652555a73",
"text": "This is correct. The most rapidly expanding areas in finance resemble computer science more than they resemble traditional finance. The compliance and legal side of things, however, is only getting more and more complicated. At my firm, the compliance personnel outnumber the traders three to one.",
"title": ""
},
{
"docid": "432563b151d2e6afcfa8c7f9f577f54b",
"text": "I use and recommend barchart.com. Again you have to register but it's free. Although it's a US system it has a full listing of UK stocks and ETFs under International > London. The big advantage of barchart.com is that you can do advanced technical screening with Stochastics and RS, new highs and lows, moving averages etc. You're not stuck with just fundamentals, which in my opinion belong to a previous era. Even if you don't share that opinion you'd still find barchart.com useful for UK stocks.",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "9d77881dc3d8a425eeea4703c169e0b3",
"text": "\"First, don't use Yahoo's mangling of the XBRL data to do financial analysis. Get it from the horse's mouth: http://www.sec.gov/edgar/searchedgar/companysearch.html Search for Facebook, select the latest 10-Q, and look at the income statement on pg. 6 (helpfully linked in the table of contents). This is what humans do. When you do this, you see that Yahoo omitted FB's (admittedly trivial) interest expense. I've seen much worse errors. If you're trying to scrape Yahoo... well do what you must. You'll do better getting the XBRL data straight from EDGAR and mangling it yourself, but there's a learning curve, and if you're trying to compare lots of companies there's a problem of mapping everybody to a common chart of accounts. Second, assuming you're not using FCF as a valuation metric (which has got some problems)... you don't want to exclude interest expense from the calculation of free cash flow. This becomes significant for heavily indebted firms. You might as well just start from net income and adjust from there... which, as it happens, is exactly the approach taken by the normal \"\"indirect\"\" form of the statement of cash flows. That's what this statement is for. Essentially you want to take cash flow from operations and subtract capital expenditures (from the cash flow from investments section). It's not an encouraging sign that Yahoo's lines on the cash flow statement don't sum to the totals. As far as definitions go... working capital is not assets - liabilities, it is current assets - current liabilities. Furthermore, you want to calculate changes in working capital, i.e. the difference in net current assets from the previous quarter. What you're doing here is subtracting the company's accumulated equity capital from a single quarter's operating results, which is why you're getting an insane result that in no way resembles what appears in the statement of cash flows. Also you seem to be using the numbers for the wrong quarter - 2014q4 instead of 2015q3. I can't figure out where you're getting your depreciation number from, but the statement of cash flows shows they booked $486M in depreciation for 2015q3; your number is high. FB doesn't have negative FCF.\"",
"title": ""
},
{
"docid": "2417b02e66123869fd899f08d512aae3",
"text": "Option tiers are broker specific, according mostly to their business model and presumably within the bounds of FINRA Rule 2111 (Suitability). The tier system can be as complex as E*Trade or as simple as none with Interactive Brokers. The suitability is determined presumably by compliance presumably by the legal history of the rule. The exact reasoning is political, effected by the relevant party composition of the legislature and executive. The full legal history will have the judiciary's interpretations of legislation and policy. Cash and margin rules are dictated primarily by the Federal Reserve and more precisely by FINRA and the SEC. This is the only distinction made by IB.",
"title": ""
},
{
"docid": "8313daf3ed3b50a118993059f1fd633f",
"text": "\"Although is not online, I use a standalone version from http://jstock.sourceforge.net It got drag-n-drop boxes, to let me design my own indicators. However, it only contain technical analysis information, not fundamental analysis information. It does come with tutorial http://jstock.sourceforge.net/help_stock_indicator_editor.html#indicator-example, on how to to build an indicator, to screen \"\"Stock which Its Price Hits Their 14 Days Maximum\"\"\"",
"title": ""
}
] |
fiqa
|
57de9c2e2e2bb2fe8d9f84bf9cecf656
|
Finance the land on a non-financeable house?
|
[
{
"docid": "782c618d2c4d91bfd53884f278be5636",
"text": "Some lenders will make loans for vacant land, others will not. You have to discuss with local bank what are your plan for the land: live in the old mobile home; install a new mobile home; build a new house; Sell it to a developer; use it for camping... Is the property part of a development with other mobile homes? If so there may be complications regarding the use and rights of the property. Some local jurisdictions also want to eliminate mobile homes, so they may put limitations on the housing options.",
"title": ""
}
] |
[
{
"docid": "e6dc7770bf9cfddeb08a32ff783991cc",
"text": "Insurance you purchase is paid to you. However, even if the home is destroyed, you still owe all the money to the bank, and you no longer have the house as part of the land's value to guarantee the loan. So depending on how much the land is still worth versus how much you owe -- and exactly what the terms of the loan are -- you may need to use some or all of that money to repay enough of the loan to bring it back within the bank's policies. Read the terms of the loan -- consider asking a lawyer to clarify it for you if necessary; having a lawyer review that kind of major contract is always wise anyway. –",
"title": ""
},
{
"docid": "e34733e8209beceff2f237e0e73fdc3c",
"text": "\"The Answer is yes according to multiple online sources and my local bank. This approach is a common technique to building your own home. You finance the land, build the simplest possible dwelling (say a garage with 1 bathroom/bedroom), refi into a mortgage and get cash back and then build your \"\"real house\"\" or add on, etc. This eliminates the banks demands that come with a \"\"construction loan\"\" and saves you 10s of thousands in the process (fees, contractors, scheduling, design, etc)\"",
"title": ""
},
{
"docid": "e8c1fadc1acf3f0837888d5de85b18a2",
"text": "\"No no no no!!!! Do not spend 25k on a damn slab of concrete when you don't even own the land! You are not \"\"truly\"\" the owner unless you legally own the land. I don't care what country your talking about. If you like I'll come over to your place, mix and pour some concrete on the floor, and you can pay me 5 euro. Deal? Buy the smallest parcel of land you can find. Own the land. Pour some concrete on it and viola!!!\"",
"title": ""
},
{
"docid": "476f4752e0df9c8705abf1d9084b0471",
"text": "You need a mixture of real estate, funds, and cash in the bank. Putting all your eggs in one basket is never wise. I would also stay away from land-banking period... Like you had mentioned, scam after scam after scam... Here in Tokyo, Royal Siam Trust (White Sands Beach?) is the token land-banking scam... funny enough it was hosted by the OP...",
"title": ""
},
{
"docid": "819946382517061214fcfcea1453525c",
"text": "You're right. That's a large part of what I talked about in my post, I just didn't call it that. The other provision of Title III (aka CROWDFUND Act) is that all the equity has to be purchased through a brokerage or funding portal. I mentioned those in another post in this thread.",
"title": ""
},
{
"docid": "d1f4b4fa488a4712895fd0f96f48d5f0",
"text": "It depends on the bank - In some cases(mine included :) ) the bank allowed for this but Emma had to sign on a document waiving the rights for the house in case the bank needs to liquidate assets in to recover their mortgage in case of delays or non-payment of dues in time. This had to be signed after taking independent legal advice from a legal adviser.",
"title": ""
},
{
"docid": "58d0d217c99d6926134267f306746b27",
"text": "Check your mortgage paper work. Most mortgages have clauses requiring you to maintain the property, keep it in good repair, and to prevent spoilage. The property is the mortgagee's security for the loan, so it's reasonable that they have a voice in keeping the property in good shape. You can tell them to pound sand, and then they can call the loan due in full.",
"title": ""
},
{
"docid": "bc51b36b9bf082a42f9d53d5552018d3",
"text": "They're probably talking about flipping houses. The conventional wisdom when flipping is to purchase the property with a mortgage or other loan on day-0. Do the work to rehabilitate it. Get it listed for re-sale promptly (this step has varying strategies) with a profitable price but one that will make it move. Have the house sold on or before the first payment would be due. This is anywhere from 30 to 60 days. The flipper then never has to make a payment on the mortgage or loan, the costs of rehabilitating the home are recovered promptly (potentially before any loan, credit card payments, or invoices are due), and there is a profit. This also assumes that either a 100% loan or some other mechanism is used to address closing costs and fees. This model fits the premise of the infomercial in that you make money investing in real estate but never have to tie up any of your own money in the process.",
"title": ""
},
{
"docid": "b67ed38c1456b3055eecd16463a8927b",
"text": "\"The whole story of \"\"Pamela Shea\"\" is so light on facts that it makes it hard for me to see what happened to her as example of a problem, let alone a tragedy. What kind of weird house purchase involves the forfeiture of the down payment in the event you can't get financing? Yes, there is money you commit when you make an offer on a house that is non-refundable, but it's less than 1% of the value - it's not the \"\"down payment\"\". And if the life savings of a woman with a \"\"six-figure income\"\" are less than 1% of the cost of the home she's buying, then I'd say she's not ready to buy a home, or she needs to look at less expensive property.\"",
"title": ""
},
{
"docid": "8731ee298da7607a7efbd8933a6864d5",
"text": "There are a few ways to get money from property, but I'm not sure any would work for you: 1) Firstly you could sell it. Selling the building might require enough repairs that the building is habitable; if the repair costs are too high, you might not be able to recover costs from selling. For a particularly old and unkempt building, this is more likely to be the case. In extreme scenarios, you may earn more net profit by demolishing a decrepit building, and simply selling the land. Make sure you aren't setting your price too high if you are desperate to sell; dropping your price might make the headache of upkeep go away, and might be better for you financially in the long run. 2) You could rent it - but if it is so uninhabitable you can't sell it, then this is unlikely without repairs (and it seems you don't want to do this anyway). 3) If your building is in an area where the zoning laws are not strict, you may be able to apply for a permit to have it zoned for commercial use - and either run a business out of it, or rent it to someone else to do so. Again, this would be dependent on repairs if the building is uninhabitable, and also would require the building to well-situated for a business. 4) You could take out a mortgage on the building. Of course, this has two big caveats: (a) the bank would need to assess the building for value [and it seems not to be worth much in your case]; and (b) this provides only temporary cash, which you would need to pay back to the bank over time. In some cases, if you had a solid plan, you might be able to take a mortgage out against the value of the land, and use the cash from the mortgage to do some repairs, so that it would be in good shape for selling.",
"title": ""
},
{
"docid": "049447e698bc3a74b9f5938b8d8f921e",
"text": "No. As long as you live in the house for 3 years, it's yours to keep. Financing has nothing to do with that.",
"title": ""
},
{
"docid": "8604c06699e97cc1cb620fd3f660efac",
"text": "I don't know any clever way to do what you're describing. And, in a sense, you can see why there might not be one. A mortgage isn't just a magical way to reduce your housing expenses; it's a tradeoff in which you agree to a long-term commitment in exchange for fixed costs (or at least costs with a prearranged structure) over that long term. If you're unwilling to accept the obligation of paying for and maintaining the property over a long period, you can't really expect to reap the benefits of lowered costs. Part of the reason people say buying is better is because people often do live in the same place for a long time, in which case, if they rent, they might miss out on savings they could have had if they bought instead. If you're not going to live in the same place for a long time, buying may not actually be better for you.",
"title": ""
},
{
"docid": "2b3b2e5062878bf61abca53309a877dc",
"text": "Obviously you're missing that there is no house on the land so the cost comparison between a house and land isn't terribly valid. The land might not have connections to the municipal sewage/power/electrical and may need zoning changes and permits for those connections. You're missing that you don't know how to design and build a house so you'll need to hire people for those tasks; then live through the process, headaches, and probable budget overruns. Edit: You're also missing that lending for speculative land development is significantly different from lending for a single family home.",
"title": ""
},
{
"docid": "d98a1a97eb6179caef1f1e5c9c6958c7",
"text": "\"Not at all impossible. What you need is Fundamental Analysis and Relationship with your investment. If you are just buying shares - not sure you can have those. I will provide examples from my personal experience: My mother has barely high school education. When she saw house and land prices in Bulgaria, she thought it's impossibly cheap. We lived on rent in Israel, our horrible apartment was worth $1M and it was horrible. We could never imagine buying it because we were middle class at best. My mother insisted that we all sell whatever we have and buy land and houses in Bulgaria. One house, for example, went from $20k to EUR150k between 2001 and 2007. But we knew Bulgaria, we knew how to buy, we knew lawyers, we knew builders. The company I currently work for. When I joined, share prices were around 240 (2006). They are now (2015) at 1500. I didn't buy because I was repaying mortgage (at 5%). I am very sorry I didn't. Everybody knew 240 is not a real share price for our company - an established (+30 years) software company with piles of cash. We were not a hot startup, outsiders didn't invest. Many developers and finance people WHO WORK IN THE COMPANY made a fortune. Again: relationship, knowledge! I bought a house in the UK in 2012 - everyone knew house prices were about to go up. I was lucky I had a friend who was a surveyor, he told me: \"\"buy now or lose money\"\". I bought a little house for 200k, it is now worth 260k. Not double, but pretty good money! My point is: take your investment personally. Don't just dump money into something. Once you are an insider, your risk will be almost mitigated and you could buy where you see an opportunity and sell when you feel you are near the maximal real worth of your investment. It's not hard to analyse, it's hard to make a commitment.\"",
"title": ""
},
{
"docid": "9eba7b4b42d5fbc2ded2082e426640d5",
"text": "\"That is called \"\"substitution of collateral.\"\" And yes, it can be done, but only with consent of the lender. The \"\"best case\"\" for this kind of maneuver is if the second house is larger and more valuable than the first. Another possibility is that you have two mortgages on the first house and none on the second, and you want to move the second mortgage on the first house to the second one, effectively making it a \"\"first\"\" mortgage. In these instances, the lender has a clear incentive to allow a substitution of collateral, because the second one is actually better than the first one. The potential problem in your case, is if the second house were more expensive than the first house, you could not use the sale proceeds of the first house as to buy the second house without borrowing additional money. In that case, a possible solution would be to go back to the lender on your first house for a larger mortgage, with the proceeds of that mortgage being used to retire the earlier mortgage. Depending on your credit, payment record, etc. they might be willing to do this.\"",
"title": ""
}
] |
fiqa
|
47cb75370d000b1733674f27d7965ba7
|
Yahoo Finance shows incorrect data
|
[
{
"docid": "f8a6da48d236e45fd1ced72bdf8bdfaa",
"text": "Yes, I see the same problem. Google's version seems to be correct, however.",
"title": ""
}
] |
[
{
"docid": "39e680ba097f0ffc975fb39a29e5dcd0",
"text": "Check the answers to this Stackoverflow question https://stackoverflow.com/questions/754593/source-of-historical-stock-data a number of potential sources are listed",
"title": ""
},
{
"docid": "709a4d0c86b01d7d74b2f0bb9baa8cbd",
"text": "This was an interesting little article, thanks for sharing it. However I'm a bit perplexed by part of the analysis. The authors give some fairly substantial hints that the value they are providing is *not* the standard deviation, but most of the respondents miss these hints. The answers for the annualized rate also suggest that many of the respondents knew how to compute this, given the standard deviation. The authors then go on to say that basically all of the respondents gave the correct mathematical definition of the standard deviation. Then they go on to say that, > Whatever reason there was for their error, it did not result from ignorance of the concept. But this strikes me as both disingenuous and incorrect. On the contrary the most likely explanation would seem to be that most of them were not aware of the concept of 'mean absolute deviation', probably because they had either never learned it, or never had occasion to apply it. I agree that people - even highly trained people - tend to be very bad at intuiting probability - just look up the Monty Hall Problem for a primer on that. But I strongly disagree with the notion that this paper provides any evidence of this tendency, as there seems to be a much stronger case for ignorance. This alternative is further supported by the authors' assertion that, > debriefings with respondents revealed that they rarely had an immediate understanding of the error when it was pointed out to them. again, suggesting ignorance as the most - not least - likely culprit. I also found it odd that they asked the respondents specifically about the standard deviation definition, but not about the mean absolute deviation, despite the fact that the latter is almost certainly more obscure. To that last bit, I just went through the textbooks I have on hand, and this concept is not mentioned in either of the undergraduate statistics/probability textbooks I own, nor in the one undergraduate finance textbook I have. I'm in machine learning and compsci, not finance, but it is mentioned in just one of the four graduate-level texts I have on applied statistics and probability - once on one page in a textbook on Bayesian statistics. And the wikipedia page is terrible. In short, while this is an interesting little experiment and write-up, I think the analysis and conclusions are inappropriate and not supported by the evidence the authors provide. That doesn't mean that their conclusions are incorrect, just that I disagree with the notion that this paper corroborates them. ...This response ended up being way long...",
"title": ""
},
{
"docid": "a5c828411013510f191bb0f58be880db",
"text": "I'm not 100% familiar with the index they're using to measure hedge fund performance, but based on the name alone, comparing market returns to *market neutral* hedge fund returns seems a bit disingenuous. That doesn't mean the article is wrong, and they have a point about the democratization of data, but still.",
"title": ""
},
{
"docid": "a386bedbf0f63f354370e49ebbe1d777",
"text": "I still can't understand why there is a price discrepancancy. There isn't. It's the same stock and price differences between such major exchanges will always be minimal. I think you simply haven't paid attention to the date range. It seems Google finance only has data for FRA:BMW reaching back to 2011, so if you try to look at the development of your investment since 2009, you're not getting comparable data.",
"title": ""
},
{
"docid": "8874c2e14077c87317b65163a01e3d35",
"text": "\"The graphing tools within Yahoo offer a decent level of adjustment. You can easily choose start and end years, and 2 or more symbols to compare. I caution you. From Jan 1980 through Dec 2011, the S&P would have grown $1 to $29.02, (See Moneychimp) but, the index went up from 107.94 to 1257.60, growing a dollar to only $11.65. The index, and therefore the charts, do not include dividends. So long term analysis will yield false results if this isn't accounted for. EDIT - From the type of question this is, I'd suggest you might be interested in a book titled \"\"Stock Market Logic.\"\" If memory serves me, it offered up patterns like you suggest, seasonal, relations to Presidential cycle, etc. I don't judge these approaches, I just recall this book exists from seeing it about 20 years back.\"",
"title": ""
},
{
"docid": "ee38ff2600bbead5ea7a8544ebc0d198",
"text": "Nanex just doesn't have the data. Some guy at CNBC, knowing that this stuff is great fodder for pageviews, *particularly* when there is a mysterious unnamed firm (its much too boring when there is an actual firm named, and the reason turns out to be something mundane like a slow market data feed), scooped it up and packaged it into a fear mongering story, and here we are.",
"title": ""
},
{
"docid": "7f3e8cac96486db24344d65596d6fff2",
"text": "Yahoo Finance has this now, the ticker is CL=F.",
"title": ""
},
{
"docid": "835aea544af9ee19eb114bf793e8f425",
"text": "\"I keep spreadsheets that verify each $ distribution versus the rate times number of shares owned. For mutual funds, I would use Yahoo's historical data, but sometimes shows up late (a few days, a week?) and it isn't always quite accurate enough. A while back I discovered that MSN had excellent data when using their market price chart with dividends \"\"turned on,\"\" HOWEVER very recently they have revamped their site and the trusty URLs I have previously used no longer work AND after considerable browsing, I can no longer find this level of detail anywhere on their site !=( Happily, the note above led me to the Google business site, and it looks like I am \"\"back in business\"\"... THANKS!\"",
"title": ""
},
{
"docid": "548619a630faece1dba4884501db7316",
"text": "I should have been clearer but my point was that the NYSE seems to be blaming third party vendors for reporting invalid test data but their own website reported the same data so it seems like there might be another issue. Edit: Found the full comment. It seems that NASDAQ distributed the test data and other parties including the NYSE incorrectly displayed it. I can (barely) understand some third parties incorrectly reporting this data but it seems really bizarre that NYSE wouldn't know how to handle this.",
"title": ""
},
{
"docid": "cfdcf87be6e809e7333c87c9c4f85f30",
"text": "Because that is not at all what you said. Very simple. PS. You can always use more data. You never have perfect or enough data. So you point is akin to water is wet... it is not like you discussed why the data we have is not appropriate",
"title": ""
},
{
"docid": "7978a163ea6fbead1bd037bcc1a14902",
"text": "I also searched for some time before discovering Market Archive, which AFAIK is the most affordable option that basically gives you a massive multi-GB dump of data. I needed sufficient data to build a model and didn't want to work through an API or have to hand-pick the securities to train from. After trying to do this on my own by scraping Yahoo and using the various known tools, I decided my time was better spent not dealing with rate-limiting issues and parsing quirks and whatnot, so I just subscribed to Market Archive (they update the data daily).",
"title": ""
},
{
"docid": "d304e33e18f5f22766283a4d16a7ca8b",
"text": "http://finance.yahoo.com/q/hp?s=EDV+Historical+Prices shows this which matches Vanguard: Mar 24, 2014 0.769 Dividend Your download link doesn't specify dates which makes me wonder if it is a cumulative distribution or something else as one can wonder how did you ensure that the URL is specifying to list only the most recent distribution and not something else. For example, try this URL which specifies date information in the a,b,c,d,e,f parameters: http://real-chart.finance.yahoo.com/table.csv?s=EDV&a=00&b=29&c=2014&d=05&e=16&f=2014&g=v&ignore=.csv",
"title": ""
},
{
"docid": "90551d5a7418b1256a4f05b3fd51e286",
"text": "\"Whoops, responded to the wrong person. Reposting for you in case you didn't see it. Here's a source for the $3.7 trillion number. http://www.bloomberg.com/news/2011-12-08/u-s-municipal-bond-market-28-larger-than-estimated-federal-reserve-says.html It's not 'incorrect data'. EDIT: Furthermore, in order to know the \"\"extent\"\" of the crime (your own admission) we NEED to know the size of the entire market otherwise you can't have any perspective or determine extent. So there's no reason it shouldn't be mentioned in the article.\"",
"title": ""
},
{
"docid": "585b766e40ed365454c58e2a2f88b19e",
"text": "This was not the point of confusion. I said that the dy increased and that this means the investment is performing fairly well being that we don't know the stage the company is in or anything about the health of the economy. He said with the given information the investment is performing poorly. This is where we disagreed.",
"title": ""
},
{
"docid": "ec71eaa74d95a27d599d989b6c92d992",
"text": "There is most likely an error in the WSJ's data. Yahoo! Finance reports the P/E on the Russell 2000 to be 15 as of 8/31/11 and S&P 500 P/E to be 13 (about the same as WSJ). Good catch, though! E-mail WSJ, perhaps they will be grateful.",
"title": ""
}
] |
fiqa
|
d3b8ff7cefa5a5291641ff407eed863f
|
Finance options for a new furnace.
|
[
{
"docid": "6441b2846cb858fac0043e741626b0d1",
"text": "You walk into the finance company with a written quote from the supplier for the equipment you want to buy. You then fill out forms and sign a promissory note. The finance company then writes out a check to the supplier for the amount of the quoted equipment. Usually you need to provide at least 3 things: They will require you to provide your social security number and sign a document allowing them to check your credit history which they will look up using the social security number. Note that banks will generally give better rates on a personal loan than a finance company. People usually only use finance companies when their credit is so bad that a bank will not loan them money. Heating and cooling companies that provide equipment will often loan the money to buy that equipment. As a point of advice, it is generally poor financial management to take out personal loans and may indicate a person that is wasting money or be in financial difficulties. For personal loan items (furniture, cars, clothing, jewelry, etc) you are far better off saving money to buy the item, not borrowing beyond your means. If you need a new furnace and it is an emergency, for example, if it were winter (which it is not) and your furnace could not be repaired, then that might justifiable. But borrowing money at a high rate to just upgrade a furnace or get a luxury like AC is unwise.",
"title": ""
}
] |
[
{
"docid": "dfbd71984ce3632baec4675987b94844",
"text": "what do you mean by abnormal amount of risk on day to day operations? and upfront ill more than likely need quite a bit of capital. as far as partnership I'd be the sole owner for now. unless I find a better option along the way. also thank you for all your help.",
"title": ""
},
{
"docid": "7bc709e0c92e4abf2f119a1a3f385d46",
"text": "You can go to the required company's website and check out their investor section. Here is an example from GE and Apple.",
"title": ""
},
{
"docid": "f09139630d79fcf3de3541ad61eb8b70",
"text": "If you're looking for a purely financial answer (ignoring the social/environmental aspects) there are a few different ways you can look at it. For these types of improvements the simplest is a payback calculation. How long would it take you to recoup the initial costs? For example, if the entire installation cost $5,000 (including any tax credits), and you save $100 per month (I'm making both numbers up), you'll pay back your investment in 50 months, or about 4 years. (Note that if you borrow money to do the improvement, then your payback period is longer because you're reducing the amount that you're saving each month by paying interest.) If you're deciding between different uses for the money (like investing, or paying down other debt) then you can look at the return that you're getting. Using the same example, you are spending $5,000 and getting $100 per month back, for a 24% annual return ($1,200 / $5,000), which is better than you can get on almost anything but a 401(k) match (meaning don't stop your 401(k) contributions to do this either). The decision on whether or wait or not then becomes - will the price drop faster than the amount of savings you will realize. So if you will save $100 per month in your electric bill, is the price of the complete installation going down by more than $100 each month? If not, you'd be better off buying now and start paying back the investment sooner.",
"title": ""
},
{
"docid": "43d91d123b12ab2a842cb27998906545",
"text": "Dealhoud, You are on the right path but this is actually an Equivalent annual cost problem. You have to take it a step further and divide the NPV by the Annuity factor. You need to calculate the annuity factor and divide the investment by that amount. Annuity Factor = (1-(1/(1+r)^n )) /r We know the annual cost of the the current forklift = $5K. We need to figure out the Equivalent annual cost of the new forklift. Investment / Annuity Factor + annual Cost = EAC. Therefore $20K / (1 - (1/(1.04^10 )) / 0.04 = $2,465.82 + annual Maintenance = $4,465.82 therefore it makes sense to replace the old machine.",
"title": ""
},
{
"docid": "50532dba417e7878dd4042a85918e8ac",
"text": "Look into commodities futures & options. Unfortunately, they are not trivial instruments.",
"title": ""
},
{
"docid": "94ddf1032cb45bb5c777b866ae873592",
"text": "\"I found your post while searching for this same exact problem. Found the answer on a different forum about a different topic, but what you want is a Cash Flow report. Go to Reports>Income & Expenses>Cash Flow - then in Options, select the asset accounts you'd like to run the report for (\"\"Calle's Checking\"\" or whatever) and the time period. It will show you a list of all the accounts (expense and others) with transactions effecting that asset. You can probably refine this further to show only expenses, but I found it useful to have all of it listed. Not the prettiest report, but it'll get your there.\"",
"title": ""
},
{
"docid": "381563a5ff5f8c8db9c154df4fd540d0",
"text": "Run the numbers in advance. Understand what are the current rates for an additional 2nd mortgage, what are the rates for a brand new mortgage that will cover the additional funds. Understand what they are for another lender. Estimate the amount of paperwork involved in each option (new first, new 2nd, and new lender). Ask the what are the options they can offer you. Because you have estimated the costs in money and time for the different options, you can evaluate the offer they make. What they offer you can range from everything you want to nothing you would accept. What they offer will depend on several factors: Do they care to keep you as a customer?; Do they expect you to walk away?; are they trying to get rid of mortgages like the one you have?; Can they make more money with the plan they are offering you? You will be interested in the upfront costs, the monthly costs, and the amount of time required for the process to be completed.",
"title": ""
},
{
"docid": "ae1d9140fa353b223f504333df2c180b",
"text": "For whatever reason, I don't believe they offer it. Yahoo does. A google for google finance VIX turns up people asking the question, but no quote on google.",
"title": ""
},
{
"docid": "f942f83af50827f1778ff784b6e6f832",
"text": "You can also use ICS<GO> on Bloomberg and choose the right category (many subcategories, probably you'll start on home builders or something like that). If that doesn't work, press F1 twice and ask it to an analyst. I'm sure they have this info.",
"title": ""
},
{
"docid": "931efdb6af74a7feffd7a87fd30575f2",
"text": "Inflation is not applicable in the said example. You are better off paying 300 every month as the balance when invested will return you income.",
"title": ""
},
{
"docid": "4d2dca01d9cfa77aa73046505321e972",
"text": "\"I see two important things missing from your ongoing costs: maintenance and equipment. I also don't see the one-time costs of buying and moving. Maintenance involves doing some boring math like \"\"roofs go every 20 years or so and a new roof would cost $20k, so I need $1000 a year in the roof fund. Furnaces go every 20 years and cost $5k, so I need $250 a year in the furnace fund.\"\" etc etc. Use your own local numbers for both how long things last and how much they cost to replace. One rule of thumb is a percentage of the house (not house and land) price each year keeping in mind that while roof, furnace, carpet, stove, toilets etc all need to get replaced eventually, not everything does - the walls for example cost a lot to build but don't wear out - and not all at a 20 year pace. Some is more often, some is less often. I've heard 5% but think that's too high. Try 3% maybe? So if you paid $200,000 for a $100,000 house sitting on $100,000 of land, you put $3000 a year or about $250 a month into a repair fund. Then ignore it until something needs to be repaired. When that happens, fund the repair from the savings. If you're lucky, there will always be enough in there. If the house is kind of old and on its last legs, you might need to start with a 10 or 20k infusion into that repair fund. Equipment means a lawnmower and trimmer, a snow shovel, tools for fixing things (screwdriver, hammer, glue, pliers, that sort of thing.) Maybe tools for gardening or other hobbies that house-owners are likely to have. You might need to prune back some trees or bushes if nothing else. Eventually you get tools for your tools such as a doo-dad for sharpening your lawnmower. Well, lots of doo-dads for sharpening lots of things. One time expenses include moving, new curtains, appliances if they don't come with the house, possibly new furniture if you would otherwise have a lot of empty rooms, paint and painting equipment, and your housewarming party. There are also closing costs associated with buying a house, and you might need to give deposits for some of your utilities, or pay to have something (eg internet) installed. Be sure to research these since you have to pay them right when you have the least money, as you move in.\"",
"title": ""
},
{
"docid": "fbbf17c08d1c70f87858bd019e6db31c",
"text": "If they don't spoil, you can still get some marginal benefit if buying in bulk means you avoid the need for a trip to the shops to get a replacement. If the item is a commodity that you will use eventually you are unlikely to lose out as the prices tend to remain fairly stable. There's also the inconvenience factor, I like to have plenty of some items so I'm not caught short, consider how important your furnace is in mid winter, or the inconvenience of running out of an item right when you need it.",
"title": ""
},
{
"docid": "8a577accc4d151f7a1e3550a1b212d49",
"text": "Vehicles (plural, because I'd be filling multiple roles, and also because I'd really prefer to have spare parts). Self-sufficient farm with machine shop, heavy-duty fabric production/sewing capacity. Hunting/camping gear. That kind of thing. I have about $600 in student loan debt remaining, which should be gone in the next year. No car loan (own my truck outright), don't own a house, carry 0 balance on my credit card. I suspect I'm a bit older than you (28) and I'm finding increasingly that I'm feeling financially strained by both current needs and projected needs. Moreso future than current, as a matter of fact, though I am unemployed right now. No matter how I look at it, barring some exceptional luck, there's no good way to obtain what I feel is needed to ensure that I can retire in safety. The current system basically forces you to take on nigh-crippling debt and hope like hell you can remain employed almost constantly through the most productive years of your life so that you may retire with some degree of security. 75K would make me feel a lot closer, but it only really deals with the immediate concerns and gives me room to hope to rectify the future ones in the next decade. If it were a completely foolproof 75K with no chance of vanishing, it'd go a lot further -- but still wouldn't alleviate my worries entirely.",
"title": ""
},
{
"docid": "83634132effd6fa98942c23cc8c36e2d",
"text": "The way you ask this is interesting, it implies (quite correctly) that for many, an annual bill for house insurance, property tax, etc, can turn into an emergency. My answer to the true emergency is a breakage that can't be foreseen (although you have to know the furnace isn't going to last forever) or a medical bill that's not covered (our dental is limited and the Mrs root canal can be $1000 out of pocket)",
"title": ""
},
{
"docid": "563370102cb9f40dac98d141693dfb3a",
"text": "For now we can pay off our debt in United States dollars. If we lose our reserve currency status, we would have to pay it off with a different currency. If we continued printing money we would be debasing our currency against the new reserve currency, which would mean that after we took on too much debt we wouldn't really be able to pay our creditors back after exchanging our devalued currency for the new one on the international markets. We are lucky enough not to have to worry about this now. But I think OP was referring to all countries in these situations. Other countries don't have the luxury of just printing out massive amounts of money to pay off their debts. That is why I am saying that America has a very disillusioned view of reality when it comes to deficit spending. We wouldn't have that any more if the UN followed through with its suggestion to create a global reserve currency or reverted back to the gold standard (I don't think the second option is nearly as realistic but we never know).",
"title": ""
}
] |
fiqa
|
85aa4050451799ffa885d5af2ad397c4
|
Do query services like Google Finance and Yahoo Finance go back to correct busted and adjusted trades?
|
[
{
"docid": "764f0915779b6649c2953dc26dd52d87",
"text": "No. Busts are very infrequent, and if an equity were illiquid enough to be affected, the bust cost would be enormous. For a liquid equity, the amount of busted volume is insignificant except during a flash crash or flash spike. Then it would be reasonable to redownload.",
"title": ""
}
] |
[
{
"docid": "b81c09b50251d6d8eced07aaaa835e6e",
"text": "Well, kind of XD. I usually just look through Business Week for the ADRs that are on the OTC market. I don't do anything major, but why I love them is that they have a greater reach than just ADRs on the NYSE or NASDAQ. Like for instance, if I wanted to own Thai or European stocks, many of the larger, more reputable firms are listed on the OTC market. Having said that, most other sites don't have earnings reports laid out for you. Business Week does. The only fancy thing I am interested in are options and options on futures, and Bar Chart is good for the latter.",
"title": ""
},
{
"docid": "fd1c51438c9aaf8e14aa77f9887fc3c7",
"text": "This is just a shot in the dark but it could be intermarket data. If the stock is interlisted and traded on another market exchange that day then the Yahoo Finance data feed might have picked up the data from another market. You'd have to ask Yahoo to explain and they'd have to check their data.",
"title": ""
},
{
"docid": "2d1291a1a105a0100afd5f469018f5f6",
"text": "\"Okay, so you don't know what other options are available, understood. No need to be a dick. In other industries, deals and transactions are invalidated, reversed, refunded or other measures taken all the time when they're based on invalid information. Hence, why I was asking what options there are for these situations. I know that if I saw CSCO go down 40% and the info scanned on official sources that I would dump a ton of money into buying it up if I had it available. I mean, hell, it's Cisco Systems who practically owns the internet. They'll be back up from that hit and fairly quickly. To find out that was all just because some over-worked programmer put a comma where there should have been a period would have me on the warpath if trend was actually the other way. With the amount of money that flows through such a system, there has to be some kind of process for dealing with these things. If you don't know, then no worries. There's no need to jump on me for asking a question when a simple \"\"I don't know\"\" would suffice.\"",
"title": ""
},
{
"docid": "2203128e094a95e27e80cf38a2ef57c7",
"text": "\"Often these types of trades fall into two different categories. An error by broker or exchange. Exchange clearing out part of their books incorrectly is an example. Most exchanges make firms reopen their positions for after market hours. There may have been an issue doing so or exchange could incorrectly cancel positions. I was in the direct feed industry for years and this was a big issue. At the same time the broker can issue a no limit buy on accident (or has software that is prospecting and said software has a bug or written poorly). unscrupulous parties looking to feign an upswing or downswing in market. Let's say you hold 500k shares in a stock that sells for $11. You could possibly buy 100 shares for $13. Trust me you will find a seller. Then you are hoping that people see that trade as a \"\"norm\"\" and trade from there, allowing you to rake in $1M for spending an extra $200 - NOTE this is not normal and an extreme example. This was so common in the early days of NASDAQ after hours that they discontinued using the after hours trades as part of historical information that they keep like daily/yearly high or closing price. The liquidity allows for manipulation. It isn't seen as much now since this has been done a million times but it does still happen.\"",
"title": ""
},
{
"docid": "a386bedbf0f63f354370e49ebbe1d777",
"text": "I still can't understand why there is a price discrepancancy. There isn't. It's the same stock and price differences between such major exchanges will always be minimal. I think you simply haven't paid attention to the date range. It seems Google finance only has data for FRA:BMW reaching back to 2011, so if you try to look at the development of your investment since 2009, you're not getting comparable data.",
"title": ""
},
{
"docid": "548619a630faece1dba4884501db7316",
"text": "I should have been clearer but my point was that the NYSE seems to be blaming third party vendors for reporting invalid test data but their own website reported the same data so it seems like there might be another issue. Edit: Found the full comment. It seems that NASDAQ distributed the test data and other parties including the NYSE incorrectly displayed it. I can (barely) understand some third parties incorrectly reporting this data but it seems really bizarre that NYSE wouldn't know how to handle this.",
"title": ""
},
{
"docid": "5b30e2b65f080a8773403290f397874f",
"text": "The yahoo finance API is no longer which broke the Finance:Quote perl module. The Finance:Quote developers have been quick to fix things and have produced several new versions in the last week or two. The short of it is that you need to update Finance:Quote, then obtain an AlphaVantage free key and tell Gnucash to use AlphaVantage as it's source for online quotes by editing your securities in the Price Editor.",
"title": ""
},
{
"docid": "9799afb70efd4be307d2728b08ac21ec",
"text": "There usually would be a SEC investigation if this kind of behavior is noticed. One thing that bothers me about this article is that, in the midst of all the fear mongering, the author doesn't mention that quote stuffing is designed to screw over *other HFT algorithms* and doesn't have any real impact on investors. Firms doing HFT frequently report this stuff to the SEC; for all we know, Goldman already did.",
"title": ""
},
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
},
{
"docid": "4f0896b4114a3e414cf3926afd207f86",
"text": "\"I'm not sure which article you are referring to- if you are talking about the convergex article.... it literally describes what they did in the article. Tradeworx and software company thesys(both founded by manoj narang) provide data to the sec and function as market makes- they are highly respected and handle over 5% of us equity by volume. Their \"\"head people\"\" is manoj narang. I don't think he \"\"bailed out\"\". As you can read [here](https://research-doc.credit-suisse.com/docView?sourceid=em&document_id=x569866&serialid=lZPbU6l0cgAqB%2B1gg4uZFLk14dBwhfSb9lZ3%2BdmPHV4%3D) they are willing 53% of the trades they place everyday and have He has stated in an interview he wants to explore options trading. They were debunking myths because of the regulators wanted answers and at the time hft was not understood very well. Narang also testified at a senate committee[video here](https://youtu.be/NG47K41Q7KA)\"",
"title": ""
},
{
"docid": "14a425ef8cb11db564bada29217d8e6f",
"text": "First - Google's snapshot - Then - Yahoo - I took these snapshots because they will not exist on line after the market opens, and without this context, your question won't make sense. With the two snapshots you can see, Yahoo shows the after hours trades and not just the official market close for the day. The amount it's down is exactly tracked from the close shown on Google. Now you know.",
"title": ""
},
{
"docid": "3b97c12e43ff897b685f9465d1f85e67",
"text": "I had the same problem and was looking for a software that would give me easy access to historical financial statements of a company, preferably in a chart. So that I could easily compare earnings per share or other data between competitors. Have a look at Stockdance this might be what you are looking for. Reuters Terminal is way out of my league (price and complexity) and Yahoo and Google Finance just don't offer the features I want, especially on financials. Stockdance offers a sort of stock selection check list on which you can define your own criterion’s. Hence it makes no investment suggestions but let's you implement your own investing strategy.",
"title": ""
},
{
"docid": "d9f08fc15393c1e8664baf7badbf7311",
"text": "It looks like GOOG did not have a pre-market trade until 7:14 am ET, so Google Finance was still reporting the last trade it had, which was in the after-hours session yesterday. FB, on the other hand, was trading like crazy after-hours yesterday and pre-market today as it had an earnings report yesterday.",
"title": ""
},
{
"docid": "f1243fc98957804c8335db02cb4de088",
"text": "No. Like Keshlam said, unless you have a crystal ball there is no sure thing. However based on the things you said in your question, you could be better off doing some back testing. With your findings, you can then set up trades in your favor but again it's not 100%. You may also want to check out quant finance stackexhange.",
"title": ""
}
] |
fiqa
|
aa7219c0f97675ebad4bb2496976d912
|
Why does Yahoo Finance list the 10y T note (TNX) at 1/10 of CBOE and Google Finance?
|
[
{
"docid": "cd32495b2fc65a7b03e82757110cf866",
"text": "\"The CBOE states, in an investor's guide to Interest Rate Options: The Options’ Underlying Values Underlying values for the option contracts are 10 times the underlying Treasury yields (rates)— 13-week T-bill yield (for IRX), 5-year T-note yield (for FVX), 10-year T-note yield (for TNX) and 30-year T-bond yield (for TYX). The Yahoo! rate listed is the actual Treasury yield; the Google Finance and CBOE rates reflect the 10 times value. I don't think there's a specific advantage to \"\"being contrary\"\", more likely it's a mistake, or just different.\"",
"title": ""
}
] |
[
{
"docid": "9c86a630ecf155dcaf2bee7e2e0a1963",
"text": "\"I mean, I'd say \"\"no shit\"\". The model is easy to reproduce (see the inverse model proposed by CHX and the new NYSE American), and people don't have a real incentive to trade there. IEX's main selling point to the buy side was the reduced price impact order router, which ultimately went away when they became an exchange. Listings could be interesting, but I can't see why any company that doesn't have some sort of statement to make would want to list there versus the big two, or BATS. Hell, even BATS, a much more established market, has had a hard time drawing listings. I'm glad they've seen a small bump in market share in the last few months, but I can't see them becoming one of the big three players any time soon (especially after having shat all over the industry during their launch period). Side note: The UTP SIP (and soon the CTA SIP) are both **much** faster than when IEX went live. Turns out inside updates via the SIP are received faster than the prop market data feed, and faster than updates received over an order entry connection. Under these circumstances the street knows a trade occurred before the participants in the trade. This information asymmetry often results in market makers getting run the hell over, and makes them less likely to quote at the inside on your market.\"",
"title": ""
},
{
"docid": "a11010563c94f613133d44194ae7dfae",
"text": "The official source for the Dow Jones P/E is Dow Jones. Unfortunately, the P/E is behind a pay-wall and not included in the free registration. The easiest (but only approximate) solution is to track against an equivalent ETF. Here's a list of popular indexes with an equivalent ETF. Source",
"title": ""
},
{
"docid": "464177eb11eecd60e4df20aec0b705d4",
"text": "A few days ago they launched Fannie Mae Guaranteed Multifamily Structures (link) but who knows? It's a penny stock now. Google Finance is pretty good at marking news right on the chart for a particular stock. That's how I tracked that piece of news down. Can't say that it precipitated a lot of people buying the stock, but Google Finance isn't a bad place to start looking.",
"title": ""
},
{
"docid": "d6614c80a1bfd3d9994c53dd2e02b2ba",
"text": "Try Google Finance Screener ; you will be able to filter for NASDAQ and NYSE exchanges.",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
},
{
"docid": "26263c06cc76b461c3899c9387a36d3d",
"text": "http://www.pacificrubiales.com/investor-relations/reports.html does have financial reports on their website for the example you list. There is the potential for some data to not be easily imported into a format that Yahoo! Finance uses would be my guess for why some data may be missing though an alternative explanation for some companies would be that they may not have been around for a long enough time period to report this information,e.g. if the company is a spin-off of an existing company.",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "593f6298656a2b96117729003a4e30dd",
"text": "You bought 1 share of Google at $67.05 while it has a current trading price of $1204.11. Now, if you bought a widget for under $70 and it currently sells for over $1200 that is quite the increase, no? Be careful of what prices you enter into a portfolio tool as some people may be able to use options to have a strike price different than the current trading price by a sizable difference. Take the gain of $1122.06 on an initial cost of $82.05 for seeing where the 1367% is coming. User error on the portfolio will lead to misleading statistics I think as you meant to put in something else, right?",
"title": ""
},
{
"docid": "ee38ff2600bbead5ea7a8544ebc0d198",
"text": "Nanex just doesn't have the data. Some guy at CNBC, knowing that this stuff is great fodder for pageviews, *particularly* when there is a mysterious unnamed firm (its much too boring when there is an actual firm named, and the reason turns out to be something mundane like a slow market data feed), scooped it up and packaged it into a fear mongering story, and here we are.",
"title": ""
},
{
"docid": "f057ba558284c21dbce37c95a845abb6",
"text": "Sheegan has a great explanation of how the TBA market contributes to mortgage rates. The 30 Year Mortgage rates are closely tied to the 10-Year Treasury. One can track this rate at many stock quoting sites using symbol TNX.",
"title": ""
},
{
"docid": "3a66a5e43fcafe49252adcf58e4aacba",
"text": "I will assume that you are not asking in the context of high frequency trading, as this is Personal Finance Stack Exchange. It is completely acceptable to trade odd lots for retail brokerage customers. The odd lot description that you provided in your link, from Interactive Brokers is correct. But even in that context, it says, regarding the acceptability of odd lots to stock exchanges: The exception is that odd lots can be routed to NYSE/ARCA/AMEX, but only as part of a basket order or as a market-on-close (MOC) order. Google GOOG is traded on the NASDAQ. Everything on the NASDAQ is electronic, and always has been. You will have no problem selling or buying less than 100 shares of Google. There is also an issue of higher commissions with odd lots: While trading commissions for odd lots may still be higher than for standard lots on a percentage basis, the popularity of online trading platforms and the consequent plunge in brokerage commissions means that it is no longer as difficult or expensive for investors to dispose of odd lots as it used to be in the past. Notice what it says about online trading making it easier, not more difficult, to trade odd lots.",
"title": ""
},
{
"docid": "2d4ea113bce589e1648c170a6a81c74a",
"text": "Traditionally, the Dow Jones Industrial Average (DJIA) was only comprised of stocks that were traded on the New York Stock exchange. Neither Apple (AAPL) nor Google (GOOG) are traded on the New York Stock Exchange but instead are traded on NASDAQ. All NASDAQ tickers are four characters long and all NYSE tickers are only three or less characters long (e.g. IBM or T (AT&T)). However in 1999, MSFT became the first NASDAQ stock to be included in the DJIA. Given that AAPL now has the largest market capitalization of any company in U.S. history, I think it is likely if they retain that position, that they would eventually be let into the DOW club too, perhaps, ironically, even supplanting Microsoft.",
"title": ""
},
{
"docid": "957c5899a0d1a893be298c8bffe79a4d",
"text": "It's got to be a bad chunk of data on Google. Yahoo finance does not show that anomaly for 1988, nor does the chart from Home Depot's investor relations site:",
"title": ""
},
{
"docid": "a26da9e8aaa057b993b4972726e78b83",
"text": "For each class A share (GOOGL) there's a class C share (GOOG), hence the missing half in your calculation. The almost comes from the slightly higher market price of the class A shares (due to them having voting powers) over class C (which have no voting powers). There's also class B share which is owned by the founders (Larry, Sergei, Eric and perhaps some to Stanford University and others) and differs from class A by the voting power. These are not publicly traded.",
"title": ""
},
{
"docid": "c9e93eacddd5b462e5df20e20436b1f6",
"text": "\"I'm familiar with and have traded U.S.-listed LEAPS and I've always used the CBOE quotes page you linked to. So, I too was surprised I couldn't find 3M (MMM) LEAPS quotes at that page, even after checking the \"\"List all options, LEAPS, Credit Options & Weeklys if avail.\"\" radio button. Used to work! Fortunately, I was able to get access to the full chain of option quotes from the CBOE's other quotes page: Go to the \"\"Quotes & Data\"\" menu, then select Delayed Quotes - NEW! Here's how: I think the new interface is terrible: it's too many steps to get to the information desired. I preferred the all-in-one table of the Delayed Quotes Classic page, the one you linked to. As to why that classic page isn't yielding the full chain, I can only suggest it is a recently introduced bug (software defect). I certainly was able to get LEAPS quotes from that page before. On Yahoo! Finance option quotes: I don't know why their chain is incomplete – I can't see the logic, for instance, as to why MMM Jan 2012 60 calls are missing. I thought at first it may be lack of volume or open interest, but nope. Anyway, I don't trust Yahoo! to provide accurate, reliable quotes anyway, having seen too many errors and missing data in particular in the feed of Canadian stocks, which I also trade. I rely on the exchange's quotes, and my broker's real-time quotes. I check Yahoo! only for convenience sake, and when it actually matters I go to the other more reliable sources. For what it's worth, though, you can also get full chain option quotes at NASDAQ. See here for the 3M (MMM) example then click on the \"\"Jan 12\"\" link near the top. However, I would consider CBOE's quotes more definitive, since they are the options exchange.\"",
"title": ""
}
] |
fiqa
|
d46f6914ca4716ae7a80e04b12f8e69a
|
How do finance professionals procounce “CECL”?
|
[
{
"docid": "061e7f8c0908cf07f2829824c7c6e243",
"text": "\"According to the following links, it is commonly pronounced \"\"Cecil\"\". https://kaufmanrossin.com/blog/bank-ready-meet-cecil/ The proposed model introduces the concept of shifting from an incurred loss model to the current expected credit loss model commonly referred to as CECL (pronounced “Cecil”). http://www.gonzobanker.com/2016/02/cecl-the-blind-leading-the-blurry/ [...] and its name is CECL (Current Estimated Credit Losses, pronounced like the name “Cecil”). The name Cecil means “blind,” which is ironic, because FASB’s upcoming guidance will push FIs to clarify the future performance of their loan portfolios by using models to predict CECL of all loan portfolios. https://www.linkedin.com/pulse/operational-financial-impact-cecl-banks-nikhil-deshmukh Termed as Current Expected Credit Loss (CECL, or Cecil, as some call it), [...]\"",
"title": ""
}
] |
[
{
"docid": "7f9e3a993c0abf7fca0c5873bb9a45c1",
"text": "Yes it's a very specialized profession. Like extremely specialized. I've read in the WSJ a number of times that finance is unsurprisingly moving in a more intellectual direction, so i feel having this license in the long run may really pay off. Thank you for your two cents. I especially like the Board of Directors bit. I really don't know if that is a good reason to dedicate my life to becoming an actuary.",
"title": ""
},
{
"docid": "9f0aa52447ab80bd79438d8d2ebd4366",
"text": "I work in financial tech, and we've been working on regulatory projects non stop since the middle of last year. Not a single feature enhancement for traders has been implemented despite very high demand. The other (smaller) wing of the tech division has been working on electronic trading. As regulation and position transparency ramp up, voice spreads will fall and desks will have to rely on volume driven by electronic trading to make up revenue. The people driving this will be technology, and not the traders. So: if you want to get in on the finances money, brush up on your programming skills: C++, Java, python are the bare minimum.",
"title": ""
},
{
"docid": "8753871fa539a3cd8957b1bd8db5b58e",
"text": "So, you don't necessarily have to have your job be your life to work in finance. That's good to know, and makes sense, since surely there aren't enough Type A's to populate an entire, large, industry. Man, I don't understand how one could work 100 hours a week for more than maybe one week. It would seem like basic needs such as sleep would become difficult with that level of work.",
"title": ""
},
{
"docid": "bac26e6289d4d3b07230a31701149d43",
"text": "I think that MFin is best suited for more technical roles in banks (I assume when you say IB you mean sell/buy side M&A), HF, AM, and PM roles. I don't view PE, CF, or IB as technically challenging as most of the analysis is done on the areas outside of finance.",
"title": ""
},
{
"docid": "4d71ed4a3c2a4630d8ee5190254fae36",
"text": "\"Background: I live and work in a small city (250k) and want to work somewhere much larger (New York, London, Chicago, Sydney). Ideal job is something quantitative and related to programming/analytics in finance, though I have passed the CFA Level III Exam to show my interest in the field and currently work as a systems and database analyst (job title is \"\"Senior financial analyst\"\".) I have a Master's in mathematical finance but my work mostly relates to personal side projects. Questions: Short of packing up and moving, what is an effective way to network with people from these larger cities? Is there demand for quants and junior quants, or is there too much supply? Will I need to get a PhD to be relevant? Can I transfer my background or skills into another area of finance first to get the networking contacts?\"",
"title": ""
},
{
"docid": "6315b769b8a2a8cbad2ddccfdd115de1",
"text": "What is the best way to learn SQL for use in finance, namely FP&A? I've watched videos on YouTube but most of them focus on syntax. I do know that SQL is used in some type of DBMS like IBM / Oracle / Microsoft Excel. So, when job applications list SQL experience (like for FP&A Analyst positions), what DBMS are they referring to? Oracle? Microsoft Excel? Does it matter? If I learn the syntax, is that enough? I have searched for resources but again, they seem to be focusing on the syntax. https://www.reddit.com/r/SQL/wiki/index Can someone who works in FP&A please explain or recommend a MOOC or other sources that will show me how to use SQL just like you do on the job? Thanks.",
"title": ""
},
{
"docid": "2b91ea9ba00641d019c71d2986da2f19",
"text": "the financial information is generally filed via SEDAR (Canada) or SEC (US) before the conference call with the investment community. This can take before either before the market opens or after the market closes. The information is generally distribute to the various newswire service and company website at the same time the filing is made with SEDAR/SEC.",
"title": ""
},
{
"docid": "fdb0d925b58ea2b1b9af8fe85c545a4c",
"text": "E&P can be valid throug Net Present Value methods, on a field-by-field basis. As no field is ever-lasting, and there Are not an unlimited number of fields, perpetuity-formulaes Are shitty. FCFF on a per-field basis with WC and Capex, with a definite lifetime. Thank you for the compliment.",
"title": ""
},
{
"docid": "ca1e0012af250bc79f95ce5ee61324ad",
"text": "When you do finance problems the first thing you need to think about is how the interest is accrued. Is it monthly semi annually or yearly? Once you understand the period of time on the interest and payments it’ll help you understand these problems more. Also a good thing to memorize is converting from EAR to APR. and APR to EAR. You’ll use that a lot. Good luck!",
"title": ""
},
{
"docid": "89384df345b80235245368c544acceb1",
"text": "\"Try to appear interesting to the guy. Don't try and discuss finance, your views on current finance events, or anything of that nature. Listen a lot to what s/he has to say and - when you hear something that you know a lot about - talk about that, in your most articulate and interesting tone. The reason I say \"\"don't talk about finance\"\" is that - given your level of education and work experience - there's likely nothing you know that s/he doesn't, and it's even more likely that you're going to talk about something that you don't truly understand on a functional level. What's likely to happen in this case is that you're probably going to be forgotten as just another person who talks about entry-level finance. To reiterate: Just make sure you come off as interesting (\"\"memorable\"\"), and relaxed/easy going. It might help if you network over a drink or two...\"",
"title": ""
},
{
"docid": "0700971fbc357b77224692f5644dac4a",
"text": "The person you're talking to is probably someone in the company. They need to convey the message to their bank. So you need to explain it to them as if they were 3 year old kids. You may be used to SWIFT transactions because that's how you always get paid, but unless the UK firm regularly employes Russian freelancers, this is probably the first time ever they have heard of it. Similarly, someone in the local branch of their community bank has probably never heard of it before either. In Europe they use IBANs and SWIFTs are rather uncommon. Be patient, explain the issue and the solution in as many words as you can, and suggest them putting you on speaker at the bank so that you could talk directly to the person executing the transaction. If you do the same on your side and let the bankers talk directly to each other - that would probably be ideal.",
"title": ""
},
{
"docid": "8aab733e55ada36c6c0e039c24d391e5",
"text": "\"I'm with you here, I can't imagine who in IB would be \"\"financial modeling\"\" with Excel. Matlab, R, or even more general purpose languages like C are much more common. Even things like cookie-cutter monte carlo simulations or many-step binomial trees are a pain with excel.\"",
"title": ""
},
{
"docid": "8b2553ca379034c58a9b65547529cb50",
"text": "\"Amount is the closest single word. \"\"Amount in dollars\"\" would be the easiest way to specify information you are requesting. \"\"Amount and currency\"\" if you ware in an area using multiple currencies. An accountant might be able to give you a more technical term, but it would be accountancy jargon. Amount due, credit amount, debit amount, amount deposited, amount credited, amount withdrawn, or amount included. If you're writing instructions and want to specify that the person following the instructions needs to indicate the currency, you'll probably have to simply state that requirement. Based on US centric thinking, inside the US, money is dollars, dollars is money. For US citizens outside the country, we would always tack on the currency. 100 dollars, or 100 Euro. There is a segment of Americans who do not understand geography, and that other countries exist, and that they use different currencies, might not realize that other countries have currencies named dollars, and that USD means US Dollars. So for U.S. citizens, be specific and clear. Bottom line, if this is written for US residents, and they need to specify the currency, you need to explicitly require them to \"\"List the amount and currency.\"\"\"",
"title": ""
},
{
"docid": "48b8c97f3504a8f579cdae8344d47681",
"text": "\"According to Wikipedia: In the finance industry, something done on a secular basis is done on a long-term basis, not a temporary or cyclical one, with a time frame of \"\"10–50 years or more\"\" Source\"",
"title": ""
},
{
"docid": "5e773d0aa02456d51473a32d0d58d4c3",
"text": "I think you can solve the problem of different wordings by having a lookup with a table of all the different ways companies spell the same words that returns a standard format that you use. That way you only need to update the table every time you come across a new company and you wont have to type it out all the time.",
"title": ""
}
] |
fiqa
|
44b6ea31f7ad2fac97b968561cf31b37
|
How is yahoo finance P/E Ratio TTM calculated?
|
[
{
"docid": "829e686278a4a68bc87296349e46fb35",
"text": "The correct p/e for bp.l is 5.80. Bp.l is on the London stock exchange and prices are in local currency. The share price of 493 is reported in pence (not dollars). The EPS is reported in pounds. Using .85 pounds = 85 pence, you calculate the EPS as follows: 493.40/85 = 5.80 PE Yahoo totally screwed up. They converted the .85 pounds into US dollars ($1.34) but didn't convert the 493 pence. By using the 493 as dollars, they got 493.9/1.34 = 368 pe! Notice that Yahoo reports the American Depository Shares (symbol 'BP') with an EPS of $8.06. That correctly reflects that there are 6 shares of BP.l per ADS (1.34 * 6 = 8.04). But why is the share price listed at $46.69? Well... 493 GBp (pence) = 4.93 pounds 4.93 pounds = 7.73 USD 7.73 USD * 6 shares per ADS = 46.38 USD",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
}
] |
[
{
"docid": "6bc624692d06ad64e7f32232c19638f6",
"text": "Your observation is mostly right, that 1 is a the number around which this varies. You are actually referencing PEG, P/E to Growth ratio, which is a common benchmark to use to evaluate a stock. The article I link to provides more discussion.",
"title": ""
},
{
"docid": "5e7a7044a927ec8ab40b5f4398ddd8cb",
"text": "Generally speaking. 1. Take the position size / average daily volume. 2. Multiply that number by 10 or whatever 1/whatever % of volume you think you can execute, ( you can at best acct for 10 percent of traded volume on a day). 3. You now have days until liquidation (x) 4. Take the days until liquidation sample the return over time x. I.e. if days until liquidation is 10, you would sample 10 day returns. 5. Calculate the distribution characteristics of this window (mean, var, skew, kurt) and calculate VaR based on some confidence. You can now have a liquidity risk expected loss and a VaR. If position is on margin don't forget to add the interest cost. Note: Instead of taking 10 day return, you can take the 10 day VWAP and calculate return between Open and 10 day vwap.",
"title": ""
},
{
"docid": "3befa06aff1f9bdd4c44321420a6f7d0",
"text": "Options - yes we can :) Options tickers on Yahoo! Finance will be displayed as per new options symbology announced by OCC. The basic parts of new option symbol are: Root symbol + Expiration Year(yy)+ Expiration Month(mm)+ Expiration Day(dd) + Call/Put Indicator (C or P) + Strike price Ex.: AAPL January 19 2013, Put 615 would be AAPL130119P00615000 http://finance.yahoo.com/q?s=AAPL130119P00615000&ql=1 Futures - yes as well (: Ex.: 6A.M12.E would be 6AM12.CME using Yahoo Finance symbology. (simple as that, try it out) Get your major futures symbols from here: http://quotes.ino.com/exchanges/exchange.html?e=CME",
"title": ""
},
{
"docid": "ee11814d8241b9c20bfa447f2388a983",
"text": "I have asked myself this exact same question many times. The analysis would be simple if you invested all your money in a single day, but I did not and therefore I would need to convert your cash transactions into Index fund buys/sells. I got tired of trying to do this using Yahoo's data and excel so I built a website in my spare time. I humbly suggest you try my website out in the hopes that it helps you perform this computation: http://www.amibeatingthemarket.com/",
"title": ""
},
{
"docid": "5c90ee4ba274fd55bd125b0bc0623285",
"text": "On closer look, it appears that Google Finance relies on the last released 10-k statement (filing date 10/30/2013), but outstanding shares as of last 10-Q statement. Using these forms, you get ($37,037M / 5.989B ) = $6.18 EPS. I think this is good to note, as you can manually calculate a more up to date EPS value than what the majority of investors out there are relying on.",
"title": ""
},
{
"docid": "0fabf85cd931ba89b9c27fcb7b04bb9b",
"text": "\"To my knowledge, there's no universal equation, so this could vary by individual/company. The equation I use (outside of sentiment measurement) is the below - which carries its own risks: This equations assumes two key points: Anything over 1.2 is considered oversold if those two conditions apply. The reason for the bear market is that that's the time stocks generally go on \"\"sale\"\" and if a company has a solid balance sheet, even in a downturn, while their profit may decrease some, a value over 1.2 could indicate the company is oversold. An example of this is Warren Buffett's investment in Wells Fargo in 2009 (around March) when WFC hit approximately 7-9 a share. Although the banking world was experiencing a crisis, Buffett saw that WFC still had a solid balance sheet, even with a decrease in profit. The missing logic with many investors was a decrease in profits - if you look at the per capita income figures, Americans lost some income, but not near enough to justify the stock falling 50%+ from its high when evaluating its business and balance sheet. The market quickly caught this too - within two months, WFC was almost at $30 a share. As an interesting side note on this, WFC now pays $1.20 dividend a year. A person who bought it at $7 a share is receiving a yield of 17%+ on their $7 a share investment. Still, this equation is not without its risks. A company may have a solid balance sheet, but end up borrowing more money while losing a ton of profit, which the investor finds out about ad-hoc (seen this happen several times). Suddenly, what \"\"appeared\"\" to be a good sale, turns into a person buying a penny with a dollar. This is why, to my knowledge, no universal equation applies, as if one did exist, every hedge fund, mutual fund, etc would be using it. One final note: with robotraders becoming more common, I'm not sure we'll see this type of opportunity again. 2009 offered some great deals, but a robotrader could easily be built with the above equation (or a similar one), meaning that as soon as we had that type of environment, all stocks fitting that scenario would be bought, pushing up their PEs. Some companies might be willing to take an \"\"all risk\"\" if they assess that this equation works for more than n% of companies (especially if that n% returns an m% that outweighs the loss). The only advantage that a small investor might have is that these large companies with robotraders are over-leveraged in bad investments and with a decline, they can't make the good investments until its too late. Remember, the equation ultimately assumes a person/company has free cash to use it (this was also a problem for many large investment firms in 2009 - they were over-leveraged in bad debt).\"",
"title": ""
},
{
"docid": "a0d96161e8f3b899c36c596612638ed2",
"text": "The dividend is for a quarter of the year, three months. 80 cents is 3.9% of $20.51. Presumably the Div/yield changes as the stock price changes. On Yahoo, they specify that the yield is based on a particular stated date. So it's only the exact number if the stock trades at the price on that date.",
"title": ""
},
{
"docid": "43b5e2eff2438cb0614ae2ecf7afe2da",
"text": "Yes, Alpha Vantage. As MasticatedTesticle points out, it is worth asking where it originally comes from, but it looked to me like a solid source for, in particular, intraday trading data. Additionally, Yahoo finance is done on R (zoo, PerformanceAnalytics libraries don't work anymore as far as I can tell). The numbers look right to me tho, let me know if things are off.",
"title": ""
},
{
"docid": "3451c2779bca4a3422a1edf0de832b52",
"text": "At this time, Google Finance doesn't support historical return or dividend data, only share prices. The attributes for mutual funds such as return52 are only available as real-time data, not historical. Yahoo also does not appear to offer market return data including dividends. For example, the S&P 500 index does not account for dividends--the S&P ^SPXTR index does, but is unavailable through Yahoo Finance.",
"title": ""
},
{
"docid": "306e4dbc38dd9989c1d6bd8e12f8a6bc",
"text": "\"What you need to do is go to yahoo finance and look at different stock's P/E ratios. You'll quickly see that the stocks can be sorted by this number. It would be an interesting exercise to get an idea of why P/E isn't a fixed number, how certain industries cluster around a certain number, but even this isn't precise. But, it will give you an idea as to why your question has no answer. \"\"Annual earnings are $1. What is the share price?\"\" \"\"Question has no answer\"\"\"",
"title": ""
},
{
"docid": "d298f15e936007876cd081e40c7107c7",
"text": "I think what's screwing up my calculation is the (reL), return on equity levereged figure. The beta for KORS apparently is -0.58, so when I use the formula reL = rf + (ßL)(rm - rf), I get -0.0048 as my reL. Am I doing my beta wrong? Am I supposed to use a different figure for my beta? ALSO, further in the process, when using the formula for WACC, my E/(D+E) is essentially 1.0 because market value of equity for KORS is 7bill and its market value of debt is only like 147 million. edit: I'm beginning to believe that my beta of -0.58 is not rightly used. It's what yahoo told me, but other sources are saying that the beta of KORS is more like -0.01 or close to 0. Yes? edit 2: Using -0.01 beta, I get a rdWACC of 2.2%. Now this seems more plausible. I did some research on negative betas and found out that they basically don't really exist aside from gold. So Yahoo must be giving me a weird beta figure. Other websites are all giving me -0.01, so I believe that is correct.",
"title": ""
},
{
"docid": "f93ae4aa6cff425d08d6816d9cb7ee3f",
"text": "I understand that ITM have little time value, so they will have small time decay(theta), but why OTM has a lesser theta than ATM? The Time value represents uncertainty. That uncertainty decreases the farther away from ATM you get (in either direction). At-the-money, there is roughly a 50% chance that the option expires worthless. As you get deeper in-the-money, the change that is expires worthless decreases, so there is less uncertainty (there is more certainty that the option will pay off). As you go deeper OTM, the probability that the option expires worthless increases, so there is also less uncertainty. At the TTM decreases, the uncertainty (theta) decreases as well, since there is less time for the option to cross the strike from either direction. Similarly, as volatility decreases, theta decreases, since low-volatility stocks have a less change of crossing the strike.",
"title": ""
},
{
"docid": "8b16542ff6aa0d91ed303490a3691bc1",
"text": "You could use the Gordon growth model implied expected return: P = D/(r-g) --> r = D/P (forward dividend yield) + g (expected dividend growth). But obviously there is no such thing as a good market return proxy.",
"title": ""
},
{
"docid": "2737555cec11157babb0aff5bd578d75",
"text": "\"the \"\"how\"\" all depends on your level of computer savvy. Are you an Excel spreadsheet user or can you write in programming languages such as python? Either approach have math functions that make the calculation of ROI and Volatility trivial. If you're a python coder, then look up \"\"pandas\"\" (http://pandas.pydata.org/) - it handles a lot of the book-keeping and downloading of end of day equities data. With a dozen lines of code, you can compute ROI and volatility.\"",
"title": ""
},
{
"docid": "f0af13625a8bea1d18a009d4c8ad44a5",
"text": "There are many ways to calculate the return, and every way will give you a different results in terms of a percentage-value. One way to always get something meaningful - count the cash. You had 977 (+ 31) and in the end you have 1.370, which means you have earned 363 dollars. But what is your return in terms of percentage? One way to look at it, is by pretending that it is a fund in which you invest 1 dollar. What is the fund worth in the beginning and in the end? The tricky part in your example is, you injected new capital into the equation. Initially you invested 977 dollars which later, in the second period became worth 1.473. You then sold off 200 shares for 950 dollars. Remember your portfolio is still worth 1.473, split between 950 in cash and 523 in Shares. So far so good - still easy to calculate return (1.473 / 977 -1 = 50.8% return). Now you buy share for 981 dollars, but you only had 950 in cash? We now need to consider 2 scenarios. Either you (or someone else) injected 31 dollars into the fund - or you actually had the 31 dollars in the fund to begin with. If you already had the cash in the fund to begin with, your initial investment is 1.008 and not 977 (977 in shares and 31 in cash). In the end the value of the fund is 1.370, which means your return is 1.370 / 1.007 = 36%. Consider if the 31 dollars was paid in to the fund by someone other than you. You will then need to recalculate how much you each own of the fund. Just before the injection, the fund was worth 950 in cash and 387 in stock (310 - 200 = 110 x 3.54) = 1.339 dollars - then 31 dollars are injected, bringing the value of the fund up to 1.370. The ownership of the fund is split with 1.339 / 1.370 = 97.8% of the value for the old capital and 2.2% for the new capital. If the value of the fund was to change from here, you could calculate the return for each investor individually by applying their share of the funds value respective to their investment. Because the value of the fund has not changed since the last period (bullet 3), the return on the original investment is (977 / 1.339 - 1 = 37.2%) and the return on the new capital is (31 / 31 = 0%). If you (and not someone else) injected the 31 dollar into the fund, you will need to calculate the weight of each share of capital in each period and get the average return for each period to get to a total return. In this specific case you will still get 37.2% return - but it gets even more comlex for each time you inject new capital.",
"title": ""
}
] |
fiqa
|
ee0bac727d64b9d17466f1ef2016e013
|
Personal finance management: precise or approximately?
|
[
{
"docid": "b9b2c1bc7a5f523ec9cf5c6bc72ecf44",
"text": "If you are off by coins, how can you be sure that you only made a typo and didn't miss a transaction? To start off, I would strongly you find a way to be precise. It doesn't matter so much in the accounting, but the habit of doing a thorough job will pay off in other dividends down the line. Basically, do the pennies now. Tryout some free online software to save the headache of data entry. But........ Since my primary goal is to get you to do the budgeting, and if you really hate the coins, just be consistent in how you fudge the debits and the credits. Always round down to the nearest whole in income, and always round up on expenses. You won't overspend this way, and your back account should have a little bit of padding because you will assume less money in and more money out. Honestly, I do tracking in both Quicken and Mint.com, so the transaction size is no big deal to me. If I did it all in Excel, I would round to whole notes. You didn't tag your question with a country, so I don't know if or similar is available to you.",
"title": ""
},
{
"docid": "bbc830aab6f767674a4253f0588992bc",
"text": "\"Here is what we do. We use YNAB to do our budgeting and track our expenses. Anything that gets paid electronically is tracked to the penny. It really needs to be, because you want your transaction records to match your bank's transaction records. However, for cash spending, we only count the paper money, not the coins. Here is how it works: If I want a Coke out of a vending machine for 75 cents, and I put a dollar bill in and get a quarter back as change, I record that as a $1.00 expense. If, instead, I put 3 quarters in to get the Coke, I don't record that expense at all. Spending coins is \"\"free money.\"\" We do this mainly because it is just easier to keep track of. I can quickly count the cash in my wallet and verify that it matches the amount that YNAB thinks I have in my wallet, and I don't need to worry about the coins. Coins that are in my car to pay for parking meters or coins in the dish on my dresser don't need to be counted. This works for us mainly because we don't do a whole lot of cash spending, so the amount we are off just doesn't add up to a significant portion of our spending. And, again, bank balances are exact to the penny.\"",
"title": ""
}
] |
[
{
"docid": "97ec84ecff7b22fecfb6849e1dc8fa5a",
"text": "\"There is a saying in business: what gets measured gets done. Track every expense you make. Later, look over what you have learned. If 5% of your total budget is going to something frivolous, maybe you could halve it? If 1% or 0.1% is going to that frivolous expense, there's not much to be gained even by eliminating it. If you spend $200/mo on coffees, dropping those will help. If you spend $10/mo on coffees, you need to look elsewhere for your big savings. Have a target: I want to put $X into savings each month. Therefore I can only spend $Y. What do you have to change about last month's spending patterns to get down to $Y? Where are the easy targets for you? They will be different than the easy targets for me. What absolutely cannot change for you? Once you know the costs of what you're doing, you will know where it's possible to save, and where it's \"\"worth it\"\" to economize.\"",
"title": ""
},
{
"docid": "a0c4b887ba92031b06f7fba792b62fcf",
"text": "Wow I honestly hope this is your first ever finance class. Anyway this isn't even finance, the only thing here finance related are the terms. It's really an algebra problem. Which is 1,312,500/x = 2 soooo find X. X = 656250 so 131,250 in notes payable. If you don't know what to do know to find the quick ratio, then change majors",
"title": ""
},
{
"docid": "dff0902175f068b2fc59f801e6972199",
"text": "As has been said before, going from nothing to something is an infinite percent increase! It is not 100%. Maybe you had a dollar and now have $101 that is a 10000% increase! Quite remarkable. I often work with symmetrized percent changes like: spc = 100 * (y2-y1)/(0.5 * (y1+y2)) Where I compute the percent with respect to the average. First this is more stable as often measurements can have noise, the average is more reliable. Second advantage is also that this is symmetric. So going from 95 to 105 is a 10 % increase while going from 105 to 95 a 10% decrease. Of course you need to explain what you show.",
"title": ""
},
{
"docid": "305f86774618127594c649a2d814137d",
"text": "Your calculations are correct. It is likely that the bank's software has a rounding error. In effect, either your bank is overstating your interest by eight cents per month, or your bank is insisting that you prepay your principal by eight cents per month. If the bank's ongoing interest calculations are correct, your final payment will be slightly smaller (because of the prepaid principal, and because of compound interest on those prepayments). I have performed similar calculations for my mortgages over the years, and except upon early payoff in the middle of the month, I have always matched my banks' calculations to the penny. Ironically, this means that my banks' formulas are a bit weird: After making these adjustments, even my calculations for the mid-month payoff matched to the penny.",
"title": ""
},
{
"docid": "92ee9cadaa14d9d89f6ca7d5aaa4a99e",
"text": "\"There are some assumptions which can be made in terms of the flexibility you have - I will start with the least flexible assumption and then move to more flexible assumptions. If you must put down a number 1, your go-to for this(\"\"Change the start period to 1\"\"), is pretty good, and it's used frequently for other divide-by-zero calculations like kda in a video game. The problem I have with '1' is that it doesn't allow you to handle various scales. Some problems are dealt with in thousands, some in fractions, and some in hundreds of millions. Therefore, you should change the start period to the smallest significantly measurable number you could reasonably have. Here, that would take your example 0 and 896 and give you an increase of 89,500%. It's not a great result, but it's the best you can hope for if you have to put down a number, and it allows you to keep some of the \"\"meaning in the change.\"\" If you absolutely must put something This is the assumption that most answers have taken - you can put down a symbol, a number with a notation, empty space, etc, but there is going to be a label somewhere called 'Growth' that will exist. I generally agree with what I've seen, particularly the answers from Benjamin Cuninghma and Nath. For the sake of preservation - those answers can be summarized as putting 'N/A' or '-', possibly with a footnote and asterisk. If you can avoid the measurement entirely The root of your question is \"\"What do my manager and investors expect to see?\"\" I think it's valuable to dig even further to \"\"What do my manager and investors really want to know?\"\". They want to know the state of their investment. Growth is often a good measurement of that state, but in cases where you are starting from zero or negative, it just doesn't tell you the right information. In these situations, you should avoid % growth, and instead talk in absolute terms which mention the time frame or starting state. For example:\"",
"title": ""
},
{
"docid": "f7189f7907d27222a59722b0d8241f95",
"text": "What are your goals? Managing your finances is not the same for everyone. For example, do you want a more hands-off approach to finance or more hands-on? Are you looking at investments as well or just saving money? Those types of questions.",
"title": ""
},
{
"docid": "8d18fa696e0bd83c3e0b1fb2f6158b1c",
"text": "\"Yes if and only if you properly use P/Y and C/Y. For your familiarity, I recommend also trying it with I = 7.56% / 12, and P/Y and C/Y = 1. I like to think of P/Y and C/Y as \"\"per period\"\" and prefer to divide the interest rate by the number of periods per year, but so long as you keep everything coherent in the solver, you will get the correct answer with both approaches.\"",
"title": ""
},
{
"docid": "14ed5124328bf2a44d41d3edbd172b03",
"text": "I would question whether your stated goal (of strictly controlling your expenses) is really the problem you should be tackling. In my opinion, unless you're under financial hardship where you can barely make ends meet, you're much better off using a budget as a high-level, descriptive tool rather than a low-level, prescriptive tool. This is what I would do in your situation: After the first few months, you can start to think about high-level changes that you can make to your spending habits to get the most bang for your buck. I wouldn't worry about the little expenses, unless they're really adding up to a sizable chunk of your total expenses. Instead, I would look at things like: eating out too often, buying too many movies, too many impulse buys over $100, etc. Identifying patterns like that will help you make lifestyle changes that will allow you to spend less money without having to micromanage every single expense. I have tried the micromanaged approach in the past, and it simply doesn't work for me. There's too much overhead, and eventually I start to feel that it's just not worth it. Think about it - is it really worth the extra time and energy required to worry about where every dollar goes all month long just to save an additional hundred bucks over what you can do with this passive approach? I think that by focusing on the big picture, you can get within a couple percentage points of the same amount of savings as if you had micro-managed your expenses, but with much less work and mental strain. Let's put some numbers on this and see what the hourly returns are with each approach, always being optimistic about the micromanaged approach and conservative on the passive approach. Let's assume you earn $50,000/year. Let's also assume that if you micromanage all of your expenses, you could manage to save $5000/year beyond what you do now. And let's say that with the passive approach, you can get within 20 percentage points instead of the 2 I stated earlier, for a savings of $4000/year. Now what will your hourly returns look like? The following are based on how I would personally use both systems, so your numbers may vary a bit. Micromanaged Budgeting Savings = $5000 per year = $416.67 per month Time spent = 15-30 minutes per day = 7.5 - 15 hours per month Hourly return = $27.78 - $55.56 Passive Budgeting Savings = $4000 per year = $333.33 per month Time spent = 1 - 2 hours per month Hourly return = $166.67 - $333.33 So clearly the passive approach gives a substantially higher hourly return, even though it gives a lower absolute return. Maybe more importantly though, if passive budgeting opens up an extra 10 hours a month, you could potentially put those hours into your job and make an extra (10 hours * $25/hour) = $250 a month, or $3000 per year, assuming no extra pay for overtime. So that means that the passive budgeting approach would actually allow you to save ($4000 + $3000 * .75) = $6250 per year, compared to the $5000 you would save by micromanaging. If you're in a situation where you can't put those hours into more work and you really need that extra $83.34 per month to help make ends meet, then by all means micromanage your expenses and try to save as much as possible. But if either of the previous conditions are not true for you, you're much better off, in my opinion, using a passive budget.",
"title": ""
},
{
"docid": "3787ce52da94e544036b6fada6b1e3a2",
"text": "\"I argued for a 15% rule of thumb here: Saving for retirement: How much is enough? Though if you'll let me, I'd refine the argument to: use a rule of thumb to set your minimum savings, then use Monte Carlo to stress-test and look at any special circumstances, and make a case to save more. You're right that the rule of thumb bakes in tons of assumptions (great list btw). A typical 15%-works scenario could include: If any of those big assumptions don't apply to you (or you don't want to rely on them) you'd have to re-evaluate. It sounds like you're assuming 4-5% investment returns? As you say that's probably the big difference, 4-5% is lower than most would assume. 6-7% (real return) is maybe a middle-of-the-road assumption and 8% is maybe an unrealistic one. Many of the assumptions you list (such as married/kids, cost of living, spouse's income, paying for college) can maybe be bundled up into one assumption (percentage of income you will spend). Set a percentage budget and as you go along, stay within your means by sacrificing as required. Also smooth out income across layoffs and things by having an emergency fund. By staying on-budget as you go you can remove some of the unpredictability. The reason I think the rule of thumb is still good, despite the assumptions, is that I don't think a \"\"more accurate\"\" number based on a lot of unpredictable guesses is really better; and it may even be harmful if you use it to justify saving less, or even if you use it to save far too much. See also http://en.wikipedia.org/wiki/Precision_bias Many (most?) important assumptions are not predictable: investment returns, health care inflation, personal health, lifestyle creep (changing spending needs/desires), irrational investment behavior. I agree with you that for many scenarios and people, 15% will not be enough, though it's a whole lot more than most save already. In particular, low investment returns over your time horizon will make 15% insufficient, and some argue that low investment returns over the coming 30 years are likely. Without a doubt, 20% or more is safer than 15%. Do consider that \"\"saving enough\"\" is not a binary thing. If you save only 15% and it turns out that doesn't completely replace your income, it's not like you're out on the street; you might have to retire a few years later, or downsize your house, or something, but perhaps that isn't a catastrophe. There's a very personal question about how much to sacrifice now for less risk of sacrifice in the future. Maybe I'd better qualify \"\"not a binary thing\"\": some savings rates (certainly, anything less than 10%), make major sacrifices pretty likely... so in that sense there is a binary distinction between \"\"plausible plan\"\" and \"\"denial.\"\" Also, precise assumptions and calculations get a lot more useful as you approach retirement age. You can pretty much answer the question \"\"is it reasonable to retire right now?\"\" or \"\"could I retire in 5 years?\"\" (though with a retirement that could last 30 years, plenty of unknowns will remain even then). I think at age 20 or 30 though, just saving 15% (20% if you're conservative), and not spending too much time on a speculative analysis would be a sound decision. That's why I like the rule of thumb. Analysis paralysis (saving nothing or near-nothing) is the real danger early in one's career. Any plausible percentage is fine as long as you save. As your life unfolds and you see what happens, you can refine and correct, adjusting your savings rate, moving your retirement age around, spending a little less or more. The important thing earlier in life is to just get in the right ballpark.\"",
"title": ""
},
{
"docid": "b5ce0e715bbecbe660d6f410a6281b97",
"text": "There is a way to get a reasonable estimate of what you still owe, and then the way to get the exact value. When the loan started they should have given you amortization table that laid out each payment including the principal, interest and balance for each payment. If there are any other fees included in the payment those also should have been detailed. Determine how may payments you have maid: did you make the first payment on day one, or the start of the next month? Was the last payment the 24th, or the next one? The table will then tell you what you owe after your most recent payment. To get the exact value call the lender. The amount grows between payment due to the interest that is accumulating. They will need to know when the payment will arrive so they can give you the correct value. To calculate how much you will save do the following calculation: payment = monthly payment for principal and interest paymentsmade =Number of payments made = 24 paymentsremaining = Number of payments remaining = 60 - paymentsmade = 60-24 = 36 instantpayoff = number from loan company savings = (payment * paymentsremaining ) - instantpayoff",
"title": ""
},
{
"docid": "2edd5ed1295a57e68363c29b87c694a0",
"text": "\"If the wording is \"\"within 10 days\"\" then its 10 days. Calendar days. Otherwise they would put \"\"10 business days\"\", for example. Usually, if you need to do something within 10 days from today, the first day to count is today. I would expect \"\"within\"\" to mean that you can fund in any of the days up to the 10th. But that's me, trying to read English as English. Why don't you call the bank and ask them?\"",
"title": ""
},
{
"docid": "2a8aa234932951e462e9c75416d5fab0",
"text": "If you want to keep any consistent standard, you need to knuckle down and make those transaction entries. Honestly, this is a lot faster doing in bulk than doing day-by-day. But change how you account so it isn't annoying. I minimize my bookable transactions. For instance I deposit all income whole (for tracking) but stop tracking when the money is converted to cash or gift card money - I log adding $50 to a McDonalds gift card, but not the individual meals. I only use cash for the myriad small things I do not want to track - fast food, parking meters, etc. Anything big or that I want to track goes on a credit card. Then it's easy to reconcile credit cards to accounting system. (Cathy) Ryan's Law: if it wasn't written down, it didn't happen.",
"title": ""
},
{
"docid": "d6a9e0f25e6a651144af61739899b4ea",
"text": "Here's a link with comparison of various online and offline PF software: http://personalfinancesoftwarereviews.com/compare-personal-finance-software/",
"title": ""
},
{
"docid": "74d4bfbdf3433ccd954e40aaeab66d86",
"text": "\"VaR is statistical, so you can set the confidence interval to 5%, 1%, 0.01%, etc. VaR is the same thing as standard deviation applied over a specific time frame, its just a matter how you come up with it. For example the 95% VaR is something like 1.65 standard deviations of the returns. as you increase the number of std dev (Z score), you're confidence interval widens and you capture more of the outliers. if you set it to 99.99%, you can envision the return distributions for all but the .01%. choose between the 2? VaR is more practical on a day to day, but shortfall is better for extreme events, like 2008 when lehman collapsed or the russian debt crisis when yields blew out. VaR has a lot of caveats about it, in that it considers everything \"\"under normal market conditions\"\". reality is, under normal market conditions, you're less concerned about risk. you want to know expectations when things go really wrong. VaR is best used as part of a risk management package, in conjunction with stress tests, duration/ DV01, liquidity analysis, etc, but its sort of leaves a lot of holes as a standalone. from a reporting and regulatory standpoint, VaR is generally accepted, and many firms reporting one day VaR in their financials (JPM, Goldman). tracking error tends to be company specific. from what i've seen, its mostly funds who have to manage to a benchmark, like a pension or FoF with a specific mandate, so they can't have too much deviation from that. you'll see this with beta too, but its the same idea. capital adequacy is slightly different from market risk. your PB or whoever will asses your portfolio holdings and apply a haircut to them based on risk and liquidity. for example you'll get close to 100% margin credit for stocks, but only a fraction of that applied to your account for a CDO^2 since liquidity is non-existent.\"",
"title": ""
},
{
"docid": "54e895568f5dc3e2daba17c3fa50540e",
"text": "\"The other answers are good, I would just like to add certain points, taking this question together with the previous ones you have asked here. How can a person measure how much to spend on food, car, bills or rent from his salary? Is there a formula to keep in check? Basically, it may well be that your best option would be to move to a smaller apartment or worse location to bring down rent, possibly forget about your own study in the worst case, sell the car and use public transportation, eat as many meals as possible at home, bring boxed lunch from home to work, if this applies, etc -- whatever makes a saving and sense to you. Regarding food, this is the point where it is usually possible to save a very significant amount, if you are prepared to make food at home. Unless you are already doing it, look around for articles such as \"\"living on 20 pounds a week\"\" or so, maybe they will give you ideas you can use (eg. How to eat on 10 pounds a week: shopping list and recipes) -- where you are shopping is crucial here as similar items can differ in price significantly between different chains. If the electricity bill is significant and you are at home a lot, you could try to bring it down by changing all bulbs in your home to LED ones, unless it has already been done. Yes, they can cost 2-3 more than eg. halogen ones, but they use 5-10x less electricity. Forget credit cards, if possible. Use debit cards so you know the money you spend does not get you into more debt. One question you asked here was about exchange rates -- if you work with different currencies a lot, there are several companies such as Revolut or N26, which offer accounts with debit cards that use near FX rates --- in my experiencee I could save around 10-15% on currency conversion EUR/GBP, using Revolut, compared to my local bank rate, for example. I find myself looking at my account every single day and get tensed and sad because almost whenever the money (pay) comes in I freak out that after everything there is nothing for us to enjoy or save. Well, yes. That is nearly the definition of too much debt. The point about going to the extremes of reducing expenses I outlined above, is that the more you can reduce your expenses while struggling with debt, the faster you'll get out of it. It might be hard to adapt, but it will be better, if you can calculate how long it will take to get you back on feet and know that, eg. \"\"in 6 months I can start to think of savings and carefully upgrading my lifestyle back\"\". In turn, the smaller the reduction of expenses, the more prolonged the process -- you might be looking at 2-3 years of insecure/constantly frustrating/risking more debt lifestyle, instead of 6 months of severely reduced one. Alternatively, if things go too bleak, you might consider declaring bankrupcy -- although I am not sure how feasible it is in the UK.\"",
"title": ""
}
] |
fiqa
|
75a1b414d12c0c8ce02330d73f81b915
|
Is there any “Personal” Finance app that allows 2 administrators?
|
[
{
"docid": "b94f220f1c1d6cb0122ab502a91a8596",
"text": "We use YNAB to handle our household budget - their latest version allows cloud sync between Android/iOS devices and various desktop installs. I have the budget folder shared with my wife's Dropbox account so we both an view the budget, enter spending, and make changes.",
"title": ""
},
{
"docid": "1b8aec839c09dcb7999a5de7634ce90b",
"text": "\"We use mint for just that. We have a \"\"shared\"\" account. We each have the mobile app and share the same pin for the application (not our phones -- you can set a pin in the settings on the application). Thus we each share a login to the site, where we have setup all of our accounts. In the \"\"Your Profile\"\" link at the top of the page, you may select the Email & Alerts option. From here you may add a second e-mail account. This way if you go over a budget or have a bill upcoming each of you will get a notification. We have setup budgeting through the web site, and either of us can modify the budget via logging in.\"",
"title": ""
},
{
"docid": "f6e28aca217b83085a5143051ab9e18f",
"text": "The best solution I've been able to find for this is MoneyWiz, where both are logged into the same sync account.",
"title": ""
}
] |
[
{
"docid": "e7ecc10268766997672000064e46af68",
"text": "\"Not knowing anything about your situation or what makes it so complex, I would have to agree with the other commenters. If your accountant screws up your business goes under, but at least your personal finances are safe from that and you'll recover (unless all your wealth is tied up in your business). If your virtual assistant uses your personal information to take all your money, ruin your credit, or any number of other things, you're going to spend a loooong time trying to get things \"\"back to normal\"\". If the few hours per month spent managing your finances is starting to add up, I might suggest looking into other ways to automate and manage them. For instance, are all of your bills (or as many as you can) e-bills that can be issued electronically to your bank? Have you set up online bill pay with your bank, so that you can automatically pay all the bills when they arrive? Have you tried using any number of online services (Mint, Thrive, your bank's \"\"virtual wallet/portfolio\"\") to help with budget, expense tracking, etc.? Again, I don't know your exact situation, but hopefully some of these suggestions help. Once I started automating my savings and a lot of my bill paying, it gave me a lot of peace of mind.\"",
"title": ""
},
{
"docid": "90444e54339405ab045d9a427e75f038",
"text": "You can look into getting a business credit card. When I had my Chase business credit card, I could add authorized users to the main account and set a spending limit on each card.",
"title": ""
},
{
"docid": "a5a8f00d13d6121c63e2703247e507dc",
"text": "\"Bookkeeping and double-entry accounting is really designed for tracking the finances of a single entity. It sounds like you're trying to use it to keep multiple entities' information, which may somewhat work but isn't really going to be the easiest to understand. Here's a few approaches: In this approach, the books are entirely from your perspective. So, if you're holding onto money that \"\"really\"\" belongs to your kids, then what you've done is you're taking a loan from them. This means that you should record it as a liability on your books. If you received $300, of which $100 was actually yours, $100 belongs to Kid #1 (and thus is a loan from him), and $100 belongs to Kid #2 (and thus is a loan from her), you'd record it just that way. Note that you only received $100 of income, since that's the only money that's \"\"yours\"\", and the other $200 you're only holding on behalf of your kids. When you give the money to your kids or spend it on their behalf, then you debit the liability accordingly and credit the Petty Cash or other account you spent it from. If you wanted to do this in excruciating detail, then your kids could each have their own set of books, in which they would see a transfer from their own Income:Garage Sale account into their Assets:Held by Parents account. For this, you just apportion each of your asset accounts into subaccounts tracking how much money each of you has in it. This lets you treat the whole family as one single entity, sharing in the income, expenses, etc. It lets you see the whole pool of money as being the family's, but also lets you track internally some value of assets for each person. Whenever you spend money you need to record which subaccount it came from, and it could be more challenging if you actually need to record income or expenses separately per person (for some sort of tax reasons, say) unless you also break up each Income and Expense account per person as well. (In which case, it may be easier just to have each person keep their entirely separate set of books.) I don't see a whole lot of advantages, but I'll mention it because you suggested using equity accounts. Equity is designed for tracking how much \"\"capital\"\" each \"\"investor\"\" contributes to the entity, and for tracking a household it can be hard for that to make a lot of sense, though I suppose it can be done. From a math perspective, Equity is treated exactly like Liabilities in the accounting equation, so you could end up using it a lot like in my Approach #1, where Equity represents how much you owe each of the kids. But in that case, I'd find it simpler to just go ahead and treat them as Liabilities. But if it makes you feel better to just use the word Equity rather than Liability, to represent that the kids are \"\"investing\"\" in the household or the like, go right ahead. If you're going to look at the books from your perspective and the kids as investing in it, the transaction would look like this: And it's really all handled in the same way an Approach #1. If on the other hand, you really want the books to represent \"\"the family\"\", then you'd need to have the family's books really look more like a partnership. This is getting a bit out of my league, but I'd imagine it'd be something like this: That is to say, the family make the sale, and has the money, and the \"\"shareholders\"\" could see it as such, but don't have any obvious direct claim to the money since there hasn't been a distribution to them yet. Any assets would just be assumed to be split three ways, if it's an equal partnership. Then, when being spent, the entity would have an Expense transaction of \"\"Dividend\"\" or the like, where it distributes the money to the shareholders so that they could do something with it. Alternatively, you'd just have the capital be contributed, And then any \"\"income\"\" would have to be handled on the individual books of the \"\"investors\"\" involved, as it would represent that they make the money, and then contributed it to the \"\"family books\"\". This approach seems much more complicated than I'd want to do myself, though.\"",
"title": ""
},
{
"docid": "90b0557ba3649538e4ef1b972e18f484",
"text": "Mint.com is a fantastic free personal finance software that can assist you with managing your money, planning budgets and setting financial goals. I've found the features to be more than adequate with keeping me informed of my financial situation. The advantage with Mint over Microsoft Money is that all of your debit/credit transactions are automatically imported and categorized (imperfectly but good enough). Mint is capable of handling bank accounts, credit card accounts, loans, and assets (such as cars, houses, etc). The downsides are:",
"title": ""
},
{
"docid": "ed212fdfbc12e3eee785a6b795226751",
"text": "A desktop application that has the same features (although as already stated, nothing will be identical but if you are looking for functionality then certainly there will be) and pretty simple to use was Microsoft Money, however, Microsoft stopped supporting it with newer versions and while the existing versions will work, I still use mine, there will be no future updates. I like the interface, its simple to use and has all the features you want. They abandoned it in favor of Intuit's Quicken but personally I am not a fan of the Quicken interface. They still had a more extensive and probably too much for the average user application called Office Accounting, but they abandoned future updates and supports on that in favor of Intuit's Quickbooks. Again, I am not a fan of the interface but they are very feature rich including invoicing and payroll, again overkill for the average user. They still have the Small Business Accounting in the form of Microsoft Dynamics, but that is utterly overkill for personal use. I generally don't trust online or cloud based accounting solutions like Mint or even Quicken online because I don't trust my information security to some third party without knowing how they are securing it and what will happen to me if/when they are leaked due to breach. So I like to keep everything local to myself and that's a good move for you, you should do that. It seems at the moment the market standard without much competition is Quicken for personal use and Quickbooks for small business. I would recommend you start with Quicken and if your needs increase in the future, you can easily transfer into Quickbooks to scale up as they are fully compatible with each other. Check it out here and compare their products to see what works best for your needs.",
"title": ""
},
{
"docid": "8018eefd837fd80fcc3c6bd9a4cb2eb5",
"text": "\"JoeTaxpayer's answer mentions using a third \"\"house\"\" account. In my comment on his answer, I mentioned that you could simply use a bookkeeping account to track this instead of the overhead of an extra real bank account. Here's the detail of what I think will work for you. If you use a tool like gnucash (probably also possible in quicken, or if you use paper tracking, etc), create an account called \"\"Shared Expenses\"\". Create two sub accounts under that called \"\"his\"\" and \"\"hers\"\". (I'm assuming you'll have your other accounts tracked in the software as well.) I haven't fully tested this approach, so you may have to tweak it a little bit to get exactly what you want. When she pays the rent, record two transactions: When you pay the electric bill, record two transactions: Then you can see at a glance whether the balances on \"\"his\"\" and \"\"hers\"\" match.\"",
"title": ""
},
{
"docid": "5685b1ded2c93079cd5e6b11fdc85535",
"text": "I found that an application already exists which does virtually everything I want to do with a reasonable interface. Its called My Personal Index. It has allowed me to look at my asset allocation all in one place. I'll have to enter: The features which solve my problems above include: Note - This is related to an earlier post I made regarding dollar cost averaging and determining rate of returns. (I finally got off my duff and did something about it)",
"title": ""
},
{
"docid": "e398e303fb3180307362ca764a3a80b9",
"text": "\"As your financial situation becomes more complex, it becomes increasingly more difficult to keep track of everything with a simple spreadsheet. It is much easier to work with software that is specifically designed for personal finances. A good program will allow you to keep track of as many accounts as you want. A great program will completely separate the different account balances (location of the money) from the budget category balances (purpose of the money). Let me explain: When you set up the software, you will enter in all of your different bank accounts with their balances. Perhaps you have three savings accounts and two checking accounts. It doesn't matter. When you are done entering those, the software will total them up, and the next job you have is assigning this money into different budget categories: your spending plan. For example, you might put some of it into a grocery category, some into an entertainment category, some will be assigned to pay your next car insurance bill, and some will be an emergency fund. (These categories are completely customizable, and your budget can be as broad or as detailed as you wish.) When you deposit your paycheck, you assign that new income into budget categories as well. It doesn't matter at this point which accounts your money are located in; the only thing that matters is that you own this money and you have access to it. Now, you might want to use a certain account for a certain budget category, but you are not required to do so. (For example, your grocery category money will probably be in your checking account, since you will be spending from it regularly. Your emergency fund will hopefully be in an account that earns a little higher interest.) Once you take this approach, you might find you don't need as many bank accounts as you thought you did, because the software does the job of separating your money into different \"\"accounts\"\" for different purposes. I've written before about the different categories of personal finance software. YNAB, Mvelopes, and EveryDollar are three examples of software that will take this approach of separating the concepts of the bank account and the budget category.\"",
"title": ""
},
{
"docid": "b274dcbeca8aaf4a0d475b7e2101809b",
"text": "Mint has worked fairly well for tracking budgets and expenses, but I use GnuCash to plug in the holes. It offers MSFT$ like registers; the ability to track cash expenses, assets, and liabilities; and the option to track individual investment transactions. I also use GnuCash reports for my taxes since it gives a clearer picture of my finances than Mint does.",
"title": ""
},
{
"docid": "500aba91d79281094dbadba775df5b7a",
"text": "I'm using iBank on my Mac here and that definitely supports different currencies and is also supposed to be able to track investments (I haven't used it to track investments yet, hence the 'supposed to' caveat).",
"title": ""
},
{
"docid": "f7c21c567f8858dae9181f8fb9ab5db7",
"text": "My wife and I do this. We have one account for income and one for expenditures (and around 7 others for dedicated savings.) Doing this we are forcing ourselves to keep track of all expenditures as we have to manually transfer funds from one to the other, we try to do this periodically (every Wednesday) and then keep the expenditures within what is actually on the account. It is a really good way to keep track of everything. Bear in mind that our bank provides a fast handy smartphone app where we both can check our account as well as transfer funds in less than 10 seconds. (Fingerprint authentication, instant funds transfer as well as zero fees for transfers.) Right now we have a credit card each attached to the expenditures account, but earlier we only had a debit card each and no credit cards. Meaning that when the weekly funds ran out we where simply not able to pay. We did this to mimic living only on cash and when the cash runs out you simply have to stop buying stuff. And at the same time we could accrue quite a bit of savings. I would definitely recommend this if you have problems with over expenditures.",
"title": ""
},
{
"docid": "fad2f2893d5c2be6029ac8d3af9dc96a",
"text": "For any android device you can try: Daily Expense Manager - to track your expenses and a host of other apps to suit your specific needs.",
"title": ""
},
{
"docid": "b571809824f8d4516f9f62c50bb3d418",
"text": "\"I use the (gratis, libre) command-line program ledger for my personal accounts. It handles funds across accounts gracefully, through a feature called \"\"Virtual Accounts\"\". A transaction can add or subtract money from a virtual account, which need not balance with all the other entries in the transaction. Then it's just a matter of setting up reports to include or exclude these accounts.\"",
"title": ""
},
{
"docid": "afae3b9d38616f166679f52fff990a33",
"text": "I use GnuCash which I really like. However, I've never used any other personal finance software so I can't really compare. Before GnuCash, I used an Excel spreadsheet which works fine for very basic finances. Pros Cons",
"title": ""
},
{
"docid": "6227665539adcf4ff59654255a8cf00c",
"text": "\"You Need A Budget is a nice budgeting tool that works on the desktop. It is more focused on manual entry and budgeting over auto-downloading and categorizing. It does support downloading transactions from banks and then importing the transaction files. You mentioned having \"\"trust issues\"\" with a bank and this would be safe as you don't enter your credentials into the app. It also has a mobile app that works well. Not exactly what you are looking for, but it would work in India and be safe if you have an untrustworthy bank and it would allow you to import transactions.\"",
"title": ""
}
] |
fiqa
|
d79a343d0b7266b63c3ae58687370f7f
|
Car finance (loan) insurance requirements (store car)
|
[
{
"docid": "ebabd902716bbf0983b8ae1099f85512",
"text": "\"Okay, definitive answer for this particular company (Toyota Finance) is (somewhat surprisingly, and glad I asked) it must be fully insured at all times, including liability, even if being stored. I asked at a dealership and they answered \"\"just fire and theft (of course)\"\" but I ended up calling their finance department and the answer was the opposite. So there you go. Thanks for the answers (and for trying to talk me out of wasting money).\"",
"title": ""
},
{
"docid": "fbe3c32df23d6bab65850a0504a96d0d",
"text": "Very generally speaking if you have a loan, in which something is used as collateral, the leader will likely require you to insure that collateral. In your case that would be a car. Yes certainly a lender will require you to insure the vehicle that they finance (Toyota or otherwise). Of course, if you purchase a vehicle for cash (which is advisable anyway), then the insurance option is somewhat yours. Some states may require that a certain amount of coverage is carried on a registered vehicle. However, you may be able to drop the collision, rental car, and other options from your policy saving you some money. So you buy a new car for cash ($25K or so) and store the thing. What happens if the car suffers damage during storage? Are you willing to save a few dollars to have the loss of an asset? You will have to insure the thing in some way and I bet if you buy the proper policy the amount save will be very minimal. Sure you could drop the road side assistance, rental car, and some other options, during your storage time but that probably will not amount to a lot of money.",
"title": ""
}
] |
[
{
"docid": "0e9eec0415e239f7e4adcd09bd0376bc",
"text": "It's to legally allow you to buy/ sell securities on behalf of others and to give advice. Different tests allow different things. 66 is for the basics: stocks and bonds etc. I believe 31 is for insurance or something. I'm not too sure the specifics I'm probably wrong about which test is which though.",
"title": ""
},
{
"docid": "e7949ba4d3c415a4fd358bc2b44ce02d",
"text": "I've had many home loans, and all have been sold to a big bank. They have certain rules about how much insurance you need to have, but I've never had one buy insurance on my behalf - they always send letters telling me I need to increase the insurance. They do say that if I don't get enough insurance, they will do it for me, but this has never been necessary.",
"title": ""
},
{
"docid": "1cee712904c22253683819c081aae7fc",
"text": "I've been an F&I Manager at a new car dealership for over ten years, and I can tell you this with absolute certainty, your deal is final. There is no legal obligation for you whatsoever. I see this post is a few weeks old so I am sure by now you already know this to be true, but for future reference in case someone in a similar situation comes across this thread, they too will know. This is a completely different situation to the ones referenced earlier in the comments on being called by the dealer to return the vehicle due to the bank not buying the loan. That only pertains to customers who finance, the dealer is protected there because on isolated occasions, which the dealer hates as much as the customer, trust me, you are approved on contingency that the financing bank will approve your loan. That is an educated guess the finance manager makes based on credit history and past experience with the bank, which he is usually correct on. However there are times, especially late afternoon on Fridays when banks are preparing to close for the weekend the loan officer may not be able to approve you before closing time, in which case the dealer allows you to take the vehicle home until business is back up and running the following Monday. He does this mostly to give you sense of ownership, so you don't go down the street to the next dealership and go home in one of their vehicles. However, there are those few instances for whatever reason the bank decides your credit just isn't strong enough for the rate agreed upon, so the dealer will try everything he can to either change to a different lender, or sell the loan at a higher rate which he has to get you to agree upon. If neither of those two things work, he will request that you return the car. Between the time you sign and the moment a lender agrees to purchase your contract the dealer is the lien holder, and has legal rights to repossession, in all 50 states. Not to mention you will sign a contingency contract before leaving that states you are not yet the owner of the car, probably not in so many simple words though, but it will certainly be in there before they let you take a car before the finalizing contract is signed. Now as far as the situation of the OP, you purchased your car for cash, all documents signed, the car is yours, plain and simple. It doesn't matter what state you are in, if he's cashed the check, whatever. The buyer and seller both signed all documents stating a free and clear transaction. Your business is done in the eyes of the law. Most likely the salesman or finance manager who signed paperwork with you, noticed the error and was hoping to recoup the losses from a young novice buyer. Regardless of the situation, it is extremely unprofessional, and clearly shows that this person is very inexperienced and reflects poorly on management as well for not doing a better job of training their employees. When I started out, I found myself in somewhat similar situations, both times I offered to pay the difference of my mistake, or deduct it from my part of the sale. The General Manager didn't take me up on my offer. He just told me we all make mistakes and to just learn from it. Had I been so unprofessional to call the customer and try to renegotiate terms, I would have without a doubt been fired on the spot.",
"title": ""
},
{
"docid": "c0fe33895155584f1300c18b4cf9ef9f",
"text": "Presumably you need a car to get to work, so let's start with the assumption that you need to buy something to replace the car you just lost. The biggest difficulty to overcome in buying a car is the concept of the monthly payment. Dealers will play games with all of the numbers to massage a monthly payment that the buyer can swallow, but this usually doesn't end up giving the customer the best deal. The 18 month term is not normal for a lease, typically you'll see 24 or 36 months. You are focusing on another goal of paying your student loans by then which would free up much more money for other wants (like a car) but at what cost? The big difficulty of personal finance is the mental mind game of delaying gratification for greater long-term benefit. You are focusing on paying your student loans now so that you can be free of that debt and have more flexibility for the future. Good. You're tempted to spend another $5400 (assuming no down-payment or other surprise fees) to drive a car for 18 months. That doesn't sound any wiser than $5,000 for an unreliable used car that gave you more problems than you bargained for. Presumably you got some percentage of that money back from the insurance company when the car was totaled, but even if not, the real lesson should be finding a car that you can afford up-front, but also one that you can still use when the loan is paid off (like your education--that investment will keep giving even when the loans are a distant memory). My advice would be to look for a car that has about 30k miles on it and pay for it as quickly as possible, then drive it at least for 70-120k more miles before replacing it. You may wish for a newer car, especially in 3 or 4 more years when it starts to show its age, but you'll also thank yourself when you can buy a newer better car with cash and break out of the monthly payment game that dealers try to push on you. You might even enjoy negotiating with car salesmen when you see through their manipulations and simply work for the best cash price you can get.",
"title": ""
},
{
"docid": "af295f15e39fc8e4b5ebc9f7ec6da0b5",
"text": "Some things you missed in your analysis: How will financing change your insurance costs? I.e. what is the difference between the insurance that you would buy for yourself and what they require? Note that it is possible that your insurance preferences are more stringent than the financing company's. If so, this isn't a big deal. But what's important is to consider if that's true. Because if you'd prefer to drive with only the legal minimum insurance and they insist that you have full coverage with no more than a $1000 deductible, that's a significant difference. Remember that you don't have $22.5k for six years. You have an average of $10.5k (($22.5k + -$1500)/2) for six years. Because you make payments ($24k) throughout. So you start with $22.5k and subtract $333.33 a month until you reach -$1500. That neglects both investment gains and potential losses. It's not the $333 payment that will freak out mortgage companies. It's the $24k debt. But that's offset by your $22.5k in assets at the beginning. And the car of course counts as an asset, albeit at lower than its sale value. I.e. from the bank's perspective, paying $22.5k for a car out of savings is almost as bad as borrowing $24k for a car. Both reduce your net worth. Watch out for hidden fees. In particular, 0% interest can often change into higher interest under certain circumstances. If we assume a 7% return for the six years, that's about $1400 the first year and less each year after. Perhaps $4500 over six years. But you aren't going to get a 7% return if you keep $24,000 in a bank account in case you have to pay off the loan. Instead, you'll get more like 1%, less than inflation. Even five year Certificates of Deposit are only about 2%, right around inflation (1.9% for previous twelve months). You can't keep the $24,000 in a securities account and be sure that it will be there when you need it. If the market crashes tomorrow, your $24,000 might be worth $12,000 instead. You'd have to throw in extra money from elsewhere. Instead of making $4500 at the cost of $1500, you'd have paid $25,500 for $12,000. Not a good deal. So for your plan to work, that $24,000 needs to be in an account that won't fall in value. You either need to compromise on the idea of a separate account that is always there when you need it, or you have to accept rather low returns. Personally, I would prefer not to have the debt and not to pay extra on the insurance. But that's me. The potential investment returns are not worth it to me. If you give up the separate account, you can make a few thousand dollars more. But your risk is higher.",
"title": ""
},
{
"docid": "7ba1aa8230b37c2401e3c92abe036ee2",
"text": "\"Your arrangements with the bank are irrelevant. Whoever is named on the title of the vehicle owns it. If she is the \"\"primary\"\", then I assume her name is on the title, therefore she owns the car. If you drive off with the car and it is titled in her name, she can report it stolen and have you arrested for grand theft auto unless you have a dated and signed permission in writing from her to use the car. Point #2: If a car loan was involved, then you didn't \"\"purchase\"\" the car, the bank did. If you want to gain ownership of the car, then you need to have her name removed from the title and have yours put in its place. Since the bank has possession of the title, this will require the cooperation of both your girlfriend and the bank.\"",
"title": ""
},
{
"docid": "c21c4e1bc21be4e992b6f0f8809550c5",
"text": "Apart from legal requirements to have insurance, e.g. 3rd party car that other answers have covered well. We can think of all insurance as protecting our “usable” income, as we can use cashflow to pay the costs of a loan to replace whatever we decided not to insure. So for example, if I don’t insure my house contents, I can replace them on my credit card if needed. Therefore we are paying for insurance out of our income, so as to protect our income, knowing that the cost of the protection is on average more than the benefit we get from it. But we all know that having an income of $50K is less than double the value of having an income of $25K. (E.g. being able to eat and remain warm is more important to us then being able to go on anther holiday.) This is way when someone has a higher income; it requires more money to effect their actions. Loss aversion is another factor; we are people not logistical machines.",
"title": ""
},
{
"docid": "eeed7031edc659241184a958b5404ae3",
"text": "\"Auto loans are secured agains the car. \"\"Signature\"\" loans, from a bank that knows and trusts you, are typically unsecured. Unsecured loans other than informal ones or these are fairly rare. Most lenders don't want to take the additional risk, or balance that risk with a high enough interest rate to make the unsecured loan unattractive.\"",
"title": ""
},
{
"docid": "0d1e91dd9b70da76f6ad1b4bb1a86ab0",
"text": "Personally I solve this by saving enough liquid capital (aka checking and savings) to cover pretty much everything for six months. But this is a bad habit. A better approach is to use budget tracking software to make virtual savings accounts and place payments every paycheck into them, in step with your budget. The biggest challenge you'll likely face is the initial implementation; if you're saving up for a semi-annual car insurance premium and you've got two months left, that's gonna make things difficult. In the best case scenario you already have a savings account, which you reapportion among your various lumpy expenses. This does mean you need to plan when it is you will actually buy that shiny new Macbook Pro, and stick to it for a number of months. Much more difficult than buying on credit. Especially since these retailers hate dealing in cash.",
"title": ""
},
{
"docid": "7421f097b776fb34d00007b3fe10bb32",
"text": "I haven't looked at that warranty in detail, but generally speaking this should help. What is GAP insurance? In the case of a total loss/write off gap insurance covers the outstanding finance after your regular insurance pay out. The two won't match up usually because of the depreciation right after you buy the car. For example, if you take out $20,000 finance and buy a car, then write it off after six months, your insurance company may only value it at $16,000 but it's unlikely you will have cleared $4,000 from your finance. Gap insurance will pay out the difference and settle the debt. Will Chrysler change the engine, if it comes to bhore? Yes, unless they identify misuse or deliberate damage. For instance, if you do 1000 miles and the engine explodes, it's a mechanical fault that the warranty would cover. If they open up the engine/look at diagnostics and find it's been thrashed to within an inch of it's life, they may claim it was your driving which has destroyed the engine and you would have to prove it was an underlying fault and would have blown either way. Will car dents be covered with this bumper to bumper insurance? Not likely, as I mentioned in the last point, if it's your fault it wouldn't be covered. I think you may be confusing the terms insurance and warranty at this point. Insurance would cover your dents but a warranty only covers the manufacturer's faults, even in the case of extended warranties. What does basic mean in terms of warranty? Sounds obvious, but whatever Chrysler want it to mean! There's no legal definition of 'basic' so you would need to check the documents thoroughly or ask them to explain exactly what is and isn't covered. If they're reluctant, it's probably because 'basic' covers very little...",
"title": ""
},
{
"docid": "277d4423be680399e5c346d4177ce244",
"text": "In the UK at least, dealers definitely want you to take finance. They get benefits from the bank (which are not insubstantial) for doing this; these benefits translate directly to increased commission and internal rewards for the individual salesman. It's conceivable that the salesman will be less inclined to put himself out for you in any way by sweetening your deal as much as you'd like, if he's not going to get incentives out of it. Indeed, since he's taking a hit on his commission from you paying in cash, it's in his best interests to perhaps be firmer with you during price negotiation. So, will the salesman be frustrated with you if you choose to pay in cash? Yes, absolutely, though this may manifest in different ways. In some cases the dealer will offer to pay off the finance for you allowing you to pay directly in cash while the dealer still gets the bank referral reward, so that everyone wins. This is a behind-the-scenes secret in the industry which is not made public for obvious reasons (it's arguably verging on fraud). If the salesman likes you and trusts you then you may be able to get such an arrangement. If this does not seem likely to occur, I would not go out of my way to disclose that I am planning to pay with cash. That being said, you'll usually be asked very early on whether you are seeking to pay cash or credit (the salesman wants to know for the reasons outlined above) and there is little use lying about it when you're shortly going to have to come clean anyway.",
"title": ""
},
{
"docid": "879a2f9d08d157b5b6885499455c88a8",
"text": "Generally, banks will report your loan to at least one (if not all three) credit bureaus - although that is not required by law. The interest you're paying, in addition to your insurance isn't justifiable for building credit. I would recommend paying the car off and then perhaps applying for a secure credit card if you are worried about being rejected. Of course, since you have very little credit, applying for an unsecured card and getting rejected won't hurt you in the long run. If you are rejected, you can always go for a secured credit card the second time. As I mentioned in my comments, it's better to show 6 months of on-time payments than to have no payment history at all. So if your goal is to secure an apartment near campus, I'm sure you're already a step ahead of the other students.",
"title": ""
},
{
"docid": "1913ec64a4d2a98e9c9970f4e2773f84",
"text": "Most people buy insurance because it is legally required to own a car or to have a mortgage. People want to own homes and to have personal transportation enough that they are willing to pay for required insurance costs. There are a lot of great explanations here as to why insurance is important and I don't want to detract from those at all. However, if we're being honest, most people are not sophisticated enough to measure and hedge their various financial risks. They just want to own an home and to drive a car.",
"title": ""
},
{
"docid": "b10a6a9f11ddd5e980624a5df4c0c0f8",
"text": "Car dealers as well as boat dealers, RV dealers, maybe farm vehicle dealers and other asset types make deals with banks and finance companies to they can make loans to buyers. They may be paying the interest to the finance companies so they can offer a 0% loan to the retail customer for all or part of the loan term. Neither the finance company nor the dealer wants to make such loans to people who are likely to default. Such customers will not be offered this kind of financing. But remember too that these loans are secured by the asset - the car - which is also insured. But the dealer or the finance company holds that asset as collateral that they can seize to repay the loan. So the finance company gets paid off and the dealer keeps the profit he made selling the car. So these loans are designed to ensure the dealer nor the finance company looses much. These are called asset finance loans because there is always an asset (the car) to use as collateral.",
"title": ""
},
{
"docid": "dfa2ffd7e6e3892c85d2adf7481d1bdf",
"text": "\"I am trying to set up a formula that will find interest-rate behind first pencil sheets at car dealerships. I am not a car finance expert so I need someone who is intimate with how these loans really work. The points of data I get at first pencil are: 1) Amount Financed 2) Period 3) Monthly Payment The data I need to extrapolate: 1) Rate in percentile so that I can compare to my bank's offer. I have tried this and many other stock \"\"find rate\"\" formulas with no accurate results: R=(A/P^(1/n)-1)n\"",
"title": ""
}
] |
fiqa
|
0a1910ec63d3e673caed23af43e1877d
|
Google Finance gain value incorrect because of currency fluctuation
|
[
{
"docid": "6626c4f142e3832bfc708cd93472796d",
"text": "You can easily build a Google Sheet spreadsheet to track what you want as Sheet has a 'googlefinance()' function to look-up the same prices and data you can enter and track in a Google Finance portfolio, except you can use it in ways you want. For example, you can track your purchase price at a fixed exchange rate, track the current market value as the product of the stock's price times the floating exchange rate, and then record your realized profit and loss using another fixed exchange rate. You don't have to record the rates either, as googlefinance() func is able to lookup prices as of a particular date. You can access Google Sheet through a web browser or Android app.",
"title": ""
}
] |
[
{
"docid": "c83ab56176a53cc349d933f86728f74c",
"text": "\"I use Google Finance too. The only thing I have problem with is dividend info which it wouldn't automatically add to my portfolio. At the same time, I think that's a lot to ask for a free web site tool. So when dividend comes, I manually \"\"deposit\"\" the dividend payment by updating the cash amount. If the dividend comes in share form, I do a BUY at price 0 for that particular stock. If you only have 5 stocks, this additional effort is not bad at all. I also use the Hong Kong version of it so perhaps there maybe an implementation difference across country versions. Hope this helps. CF\"",
"title": ""
},
{
"docid": "505ca7e221596c6b8fd0ab08c320d875",
"text": "Your assumption that funds sold in GBP trade in GBP is incorrect. In general funds purchase their constituent stocks in the fund currency which may be different to the subscription currency. Where the subscription currency is different from the fund currency subscriptions are converted into the fund currency before the extra money is used to increase holdings. An ETF, on the other hand, does not take subscriptions directly but by creation (and redemption) of shares. The principle is the same however; monies received from creation of ETF shares are converted into the fund currency and then used to buy stock. This ensures that only one currency transaction is done. In your specific example the fund currency will be USD so your purchase of the shares (assuming there are no sellers and creation occurs) will be converted from GBP to USD and held in that currency in the fund. The fund then trades entirely in USD to avoid currency risk. When you want to sell your exposure (supposing redemption occurs) enough holdings required to redeem your money are sold to get cash in USD and then converted to GBP before paying you. This means that trading activity where there is no need to convert to GBP (or any other currency) does not incur currency conversion costs. In practice funds will always have some cash (or cash equivalents) on hand to pay out redemptions and will have an idea of the number and size of redemptions each calendar period so will use futures and swaps to mitigate FX risk. Where the same firm has two funds traded in different currencies with the same objectives it is likely that one is a wrapper for the other such that one simply converts the currency and buys the other currency denominated ETF. As these are exchange traded funds with a price in GBP the amount you pay for the ETF or gain on selling it is the price given and you will not have to consider currency exchange as that should be done internally as explained above. However, there can be a (temporary) arbitrage opportunity if the price in GBP does not reflect the price in USD and the exchange rate put together.",
"title": ""
},
{
"docid": "d9f08fc15393c1e8664baf7badbf7311",
"text": "It looks like GOOG did not have a pre-market trade until 7:14 am ET, so Google Finance was still reporting the last trade it had, which was in the after-hours session yesterday. FB, on the other hand, was trading like crazy after-hours yesterday and pre-market today as it had an earnings report yesterday.",
"title": ""
},
{
"docid": "a0f9c638a7c7fec5710781b49a98dfc8",
"text": "The math is wrong. $16m grows to $72b over 44 years at 21% return (exact return is (72000/16)^(1/44) - 1 = 0.21067). At one percentage point lower return, i.e. 20%, $16m grows to $50b (16m x 1.21^44 = 49.985b). In that case you would have paid about 30 percent of your gain in fees. Still a lot, but not severe. Even the calculation of percent fees is wrong in the article!",
"title": ""
},
{
"docid": "8f399907f2221e4bdc9aefb8c11cf52c",
"text": "This is from Google Finance right now.",
"title": ""
},
{
"docid": "5d0b360de7d5745d006ae345e6072492",
"text": "The value of the asset doesn't change just because of the exchange rate change. If a thing (valued in USD) costs USD $1 and USD $1 = CAN $1 (so the thing is also valued CAN $1) today and tomorrow CAN $1 worth USD $0.5 - the thing will continue being worth USD $1. If the thing is valued in CAN $, after the exchange rate change, the thing will be worth USD $2, but will still be valued CAN $1. What you're talking about is price quotes, not value. Price quotes will very quickly reach the value, since any deviation will be used by the traders to make profits on arbitrage. And algo-traders will make it happen much quicker than you can even notice the arbitrage existence.",
"title": ""
},
{
"docid": "125865bceb315212e78e50f6a3ccd6f5",
"text": "The cause of incomplete/inaccurate financial data's appearing on free sites is that it is both complicated and expensive to obtain and parse these data. Even within a single country, different pieces of financial data are handled by different authorities. In the US, for example, there is one generally recognized authority for stock prices and volumes (CQS), but a completely different authority for corporate earnings data (SEC). For futures and options data the only authority is each individual exchange. Each of these sources might have a vastly different interface to their data; some may have websites, others may have FTPs, others may have TCP datastreams to which you must subscribe, etc. Now throw in the rest of the world and all their exchanges and regulatory agencies, and you can see how it's a difficult job to gather all this information, parse it on a daily (or more frequent) basis, and check it all for errors. There are some companies (e.g. Bloomberg) whose entire business model is to do the above. They spend tens of millions of dollars per year to support the infrastructure and manpower required to keep such a complex system working, and they charge their consumers a pretty penny in return. Do Google/Yahoo pay for Bloomberg data access just to display information that we then consume for free? Maybe. Maybe they pay for some less expensive reduced data set. Or a data set that is less rigorously checked for errors. Even if they pay for the best data available, there's no guarantee that a company's last earnings report didn't have a glitch in it, or that Bloomberg's latest download from the Canadian Agency for Corporate Dividends and Moose Census-Taking didn't get cut off in the middle, or that the folks at Yahoo built a robust system that can handle a particular file's not arriving on time. Bloomberg has dozens or even hundreds of employees focused on just this one task; Yahoo probably has 5. Moral: If you really need the best available data you must go to the source(s), or you must pay a provider to whom you can then complain when something is wrong. With free data you get what you pay for.",
"title": ""
},
{
"docid": "593f6298656a2b96117729003a4e30dd",
"text": "You bought 1 share of Google at $67.05 while it has a current trading price of $1204.11. Now, if you bought a widget for under $70 and it currently sells for over $1200 that is quite the increase, no? Be careful of what prices you enter into a portfolio tool as some people may be able to use options to have a strike price different than the current trading price by a sizable difference. Take the gain of $1122.06 on an initial cost of $82.05 for seeing where the 1367% is coming. User error on the portfolio will lead to misleading statistics I think as you meant to put in something else, right?",
"title": ""
},
{
"docid": "a6cf13ea4d096712e382bab3746657bf",
"text": "\"BestInvest is a UK site looking at that URL, base on the \"\"co.uk\"\" ending. Yahoo! Finance that you use is a US-based site unless you add something else to the URL. UK & Ireland Yahoo! Finance is different from where you were as there is something to be said for where are you looking. If I was looking for a quarter dollar there are Canadian and American coins that meet this so there is something to be said for a higher level of categorization being done. \"\"EUN.L\"\" would likely denote the \"\"London\"\" exchange as tickers are exchange-specific you do realize, right?\"",
"title": ""
},
{
"docid": "2e23c82ab6bb3ab7a9a80b14ade2e0cd",
"text": "There's a concept called interest rate parity, which sort of says that you cannot profit on the difference in interest rates. This difference accounts for the predicted movement in exchange rates as well, along with the stability of the currencies.",
"title": ""
},
{
"docid": "6d9657c607586b37a6adb1bcd2413064",
"text": "Returns reported by mutual funds to shareholders, google, etc. are computed after all the funds' costs, including Therefore the returns you see on google finance are the returns you would actually have gotten.",
"title": ""
},
{
"docid": "bc6e266b59ecc292bde5266b4226db53",
"text": "\"The solution I've come up with is to keep income in CAD, and Accounts Receivable in USD. Every time I post an invoice it prompts for the exchange rate. I don't know if this is \"\"correct\"\" but it seems to be preserving all of the information about the transactions and it makes sense to me. I'm a programmer, not an accountant though so I'd still appreciate an answer from someone more familiar with this topic.\"",
"title": ""
},
{
"docid": "5c90ee4ba274fd55bd125b0bc0623285",
"text": "On closer look, it appears that Google Finance relies on the last released 10-k statement (filing date 10/30/2013), but outstanding shares as of last 10-Q statement. Using these forms, you get ($37,037M / 5.989B ) = $6.18 EPS. I think this is good to note, as you can manually calculate a more up to date EPS value than what the majority of investors out there are relying on.",
"title": ""
},
{
"docid": "93ed9100864a8c4146441b8c7bc0dab5",
"text": "Now, is there any clever way to combine FOREX transactions so that you receive the US interest on $100K instead of the $2K you deposited as margin? Yes, absolutely. But think about it -- why would the interest rates be different? Imagine you're making two loans, one for 10,000 USD and one for 10,000 CHF, and you're going to charge a different interest rate on the two loans. Why would you do that? There is really only one reason -- you would charge more interest for the currency that you think is less likely to hold its value such that the expected value of the money you are repaid is the same. In other words, currencies pay a higher interest when their value is expected to go down and currencies pay a lower interest when their value is expected to go up. So yes, you could do this. But the profits you make in interest would have to equal the expected loss you would take in the devaluation of the currency. People will only offer you these interest rates if they think the loss will exceed the profit. Unless you know better than them, you will take a loss.",
"title": ""
},
{
"docid": "2c91dbcb174171eab32c85abaddec8f3",
"text": "\"What most of these answers here seem to be missing is that a stock \"\"price\"\" is not exactly what we typically expect a price to be--for example, when we go in to the supermarket and see that the price of a gallon of milk is $2.00, we know that when we go to the cash register that is exactly how much we will pay. This is not, however, the case for stocks. For stocks, when most people talk about the price or quote, they are really referring to the last price at which that stock traded--which unlike for a gallon of milk at the supermarket, is no guarantee of what the next stock price will be. Relatively speaking, most stocks are extremely liquid, so they will react to any information which the \"\"market\"\" believes has a bearing on the value of their underlying asset almost (if not) immediately. As an extreme example, if allegations of accounting fraud for a particular company whose stock is trading at $40 come out mid-session, there will not be a gradual decline in the price ($40 -> $39.99 -> $39.97, etc.)-- instead, the price will jump from $40 to say, $20. In the time between the the $40 trade and the $20 trade, even though we may say the price of the stock was $40, that quote was actually a terrible estimate of the stock's current (post-fraud announcement) price. Considering that the \"\"price\"\" of a stock typically does not remain constant even in the span of a few seconds to a few minutes, it should not be hard to believe that this price will not remain constant over the 17.5 hour period from the previous day's close to the current day's open. Don't forget that as Americans go to bed, the Asian markets are just opening, and by the time US markets have opened, it is already past 2PM in London. In addition to the information (and therefore new knowledge) gained from these foreign markets' movements, macro factors can also play an important part in a security's price-- perhaps the ECB makes a morning statement that is interpreted as negative news for the markets or a foreign government before the US markets open. Stock prices on the NYSE, NASDAQ, etc. won't be able to react until 9:30, but the $40 price of the last trade of a broad market ETF at 4PM yesterday probably isn't looking so hot at 6:30 this morning... don't forget either that most individual stocks are correlated with the movement of the broader market, so even news that is not specific to a given security will in all likelihood still have an impact on that security's price. The above are only a few of many examples of things that can impact a stock's valuation between close and open: all sorts of geopolitical events, announcements from large, multi-national companies, macroeconomic stats such as unemployment rates, etc. announced in foreign countries can all play a role in affecting a security's price overnight. As an aside, one of the answers mentioned after hours trading as a reason--in actuality this typically has very little (if any) impact on the next day's prices and is often referred to as \"\"amateur hour\"\", due to the fact that trading during this time typically consists of small-time investors. Prices in AH are very poor predictors of a stock's price at open.\"",
"title": ""
}
] |
fiqa
|
f1d1bec5bc754f6bb18f7f5f6d343f14
|
Specifically, what does the Google Finance average volume indicate?
|
[
{
"docid": "e231de6f5c1fe41d56d47d4a08108166",
"text": "I hovered over the label for trading volume and the following message popped up: Volume / average volume Volume is the number of shares traded on the latest trading day. The average volume is measured over 30 days.",
"title": ""
}
] |
[
{
"docid": "5b00300f2a333c26c62eefd7a6367917",
"text": "When you look at the charts in Google Finance, they put the news on the right hand side. The time stamp for each news item is indicated with a letter in the chart. This often shows what news the market is reacting to. In your example: Clicking on the letter F leads to this Reuters story: http://www.reuters.com/article/2011/02/04/usa-housing-s-idUSWAT01486120110204",
"title": ""
},
{
"docid": "85f152040d50f0973d1afa6b3af5da2d",
"text": "Price, whether related to a stock or ETF, has little to do with anything. The fund or company has a total value and the value is distributed among the number of units or shares. Vanguard's S&P ETF has a unit price of $196 and Schwab's S&P mutual fund has a unit price of $35, it's essentially just a matter of the fund's total assets divided by number of units outstanding. Vanguard's VOO has assets of about $250 billion and Schwab's SWPPX has assets of about $25 billion. Additionally, Apple has a share price of $100, Google has a share price of $800, that doesn't mean Google is more valuable than Apple. Apple's market capitalization is about $630 billion while Google's is about $560 billion. Or on the extreme a single share of Berkshire's Class A stock is $216,000, and Berkshire's market cap is just $360 billion. It's all just a matter of value divided by shares/units.",
"title": ""
},
{
"docid": "909417d8d10021a49861245cd34381e3",
"text": "\"Not to detract from the other answers at all (which are each excellent and useful in their own right), but here's my interpretation of the ideas: Equity is the answer to the question \"\"Where is the value of the company coming from?\"\" This might include owner stakes, shareholder stock investments, or outside investments. In the current moment, it can also be defined as \"\"Equity = X + Current Income - Current Expenses\"\" (I'll come back to X). This fits into the standard accounting model of \"\"Assets - Liabilities = Value (Equity)\"\", where Assets includes not only bank accounts, but also warehouse inventory, raw materials, etc.; Liabilities are debts, loans, shortfalls in inventory, etc. Both are abstract categories, whereas Income and Expense are hard dollar amounts. At the end of the year when the books balance, they should all equal out. Equity up until this point has been an abstract concept, and it's not an account in the traditional (gnucash) sense. However, it's common practice for businesses to close the books once a year, and to consolidate outstanding balances. When this happens, Equity ceases to be abstract and becomes a hard value: \"\"How much is the company worth at this moment?\"\", which has a definite, numeric value. When the books are opened fresh for a new business year, the Current Income and Current Expense amounts are zeroed out. In this situation, in order for the big equation to equal out: Assets - Liabilities = X + Income - Expeneses the previous net value of the company must be accounted for. This is where X comes in, the starting (previous year's) equity. This allows the Assets and Liabilities to be non-zero, while the (current) Income and Expenses are both still zeroed out. The account which represents X in gnucash is called \"\"Equity\"\", and encompasses not only initial investments, but also the net increase & decreases from previous years. While the name would more accurately be called \"\"Starting Equity\"\", the only problem caused by the naming convention is the confusion of the concept Equity (X + Income - Expenses) with the account X, named \"\"Equity\"\".\"",
"title": ""
},
{
"docid": "957c5899a0d1a893be298c8bffe79a4d",
"text": "It's got to be a bad chunk of data on Google. Yahoo finance does not show that anomaly for 1988, nor does the chart from Home Depot's investor relations site:",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "8f399907f2221e4bdc9aefb8c11cf52c",
"text": "This is from Google Finance right now.",
"title": ""
},
{
"docid": "7c7e2492482cabf5a89816370180c36c",
"text": "The only recommendation I have is to try the stock screener from Google Finance : https://www.google.com/finance?ei=oJz9VenXD8OxmAHR263YBg#stockscreener",
"title": ""
},
{
"docid": "5af9686e550690d467ae3b41d118daf3",
"text": "I get CapIQ and Bloomberg, and I definitely prefer Bloomberg just because of the completeness of information. There's nowhere else that you can get a full financial statement breakdown and then seconds later have a debt distribution schedule and then with another couple keystrokes get a complete credit ratings history and have that only be scratching the surface of the info available. CapIQ is sometimes better than Bloomberg for street consensus estimates going out more than a year or two but I don't find myself using it that much.",
"title": ""
},
{
"docid": "a60cdd7569bda934edfc2d24ddf50a4a",
"text": "What is the average daily volume traded? It looks like this stock may have a liquidity problem. If that is the case I would not buy this stock at all as you may have the same problem when you try to sell it. Generally try to stay away from illiquid stocks, if your order size is more than 10% of the average daily volume traded, then don't buy it. I usually stay away from stocks with an average daily volume of less than 100,000.",
"title": ""
},
{
"docid": "fb60f1c81d5d9f3a858a3dbb56eb72af",
"text": "Alphabet has about 40% on shore or 60%. I know it is 60/40 but forget which way. So way, way more than they really need. What Apple does is borrow against the offshore money when needed, Apple now has over $90b in debt and Google less than $4b. So Google would not have any problem.",
"title": ""
},
{
"docid": "5c90ee4ba274fd55bd125b0bc0623285",
"text": "On closer look, it appears that Google Finance relies on the last released 10-k statement (filing date 10/30/2013), but outstanding shares as of last 10-Q statement. Using these forms, you get ($37,037M / 5.989B ) = $6.18 EPS. I think this is good to note, as you can manually calculate a more up to date EPS value than what the majority of investors out there are relying on.",
"title": ""
},
{
"docid": "7a4af6d5d949050b38d46a09f9238888",
"text": "And the kind folk at Yahoo Finance came to the same conclusion. Keep in mind, book value for a company is like looking at my book value, all assets and liabilities, which is certainly important, but it ignores my earnings. BAC (Bank of America) has a book value of $20, but trades at $8. Some High Tech companies have negative book values, but are turning an ongoing profit, and trade for real money.",
"title": ""
},
{
"docid": "8399543fe9b611cc89a88cecf78f9c74",
"text": "It's been awhile since my last finance course, so school me here: What is the market cap of a company actually supposed to represent? I get that it's the stock price X the # of shares, but what is that actually representing? Revenues? PV of all future revenues? PV of future cash flows? In any case, good write up. Valuation of tech stocks is quite the gambit, and you've done a good job of dissecting it for a layman.",
"title": ""
},
{
"docid": "593f6298656a2b96117729003a4e30dd",
"text": "You bought 1 share of Google at $67.05 while it has a current trading price of $1204.11. Now, if you bought a widget for under $70 and it currently sells for over $1200 that is quite the increase, no? Be careful of what prices you enter into a portfolio tool as some people may be able to use options to have a strike price different than the current trading price by a sizable difference. Take the gain of $1122.06 on an initial cost of $82.05 for seeing where the 1367% is coming. User error on the portfolio will lead to misleading statistics I think as you meant to put in something else, right?",
"title": ""
},
{
"docid": "7a20efbbbed8b0fbcf9f7f16b49f52e5",
"text": "Part A solution: Assume no turnover in A.: Average Balance * Annual Interest - Average Balance * Annual Cost of funds + Annual Fee = Profit from A Profit From A = Average Balance * Interest Rate - Cost of Funds * Average Balance + Annual Fee So for B here is the sneaky thing, the Average Balance is 1/12 of the Volume... That makes it really simple... Volume * InterChange - Average Balance * Cost of Funds + Annual Fee = Profit From A Volume = 12 x Average Balance So: 12 x Average Balance * Interchange (0.015) - Average Balance * Cost of Funds (0.04) + Annual Fee (Say 50)= Profit From A (260) 0.18* Average Balance - 0.04 * Average Balance = 210 Average Balance = 210/.14 Annual turnover = 12* Average Balance Come @ me bro :p",
"title": ""
}
] |
fiqa
|
4a4829b9a22ccacad2f7378464186619
|
Online Personal finance with QIF import
|
[
{
"docid": "987be59025ba34d16ca1979d31c5d0a0",
"text": "\"Unfortunately I don't think any of the online personal finance applications will do what you're asking. Most (if not all) online person finance software uses a combination of partnerships with the banks themselves and \"\"screen scraping\"\" to import your data. This simplifies things for the user but is typically limited to whenever the service was activated. Online personal finance software is still relatively young and doesn't offer the depth available in a desktop application (yet). If you are unwilling to part with historical data you spent years accumulating you are better off with a desktop application. Online Personal Finance Software Pros Cons Desktop Personal Finance Software Pros Cons In my humble opinion the personal finance software industry really needs a hybrid approach. A desktop application that is synchronized with a website. Offering the stability and tools of a desktop application with the availability of a web application.\"",
"title": ""
}
] |
[
{
"docid": "90b0557ba3649538e4ef1b972e18f484",
"text": "Mint.com is a fantastic free personal finance software that can assist you with managing your money, planning budgets and setting financial goals. I've found the features to be more than adequate with keeping me informed of my financial situation. The advantage with Mint over Microsoft Money is that all of your debit/credit transactions are automatically imported and categorized (imperfectly but good enough). Mint is capable of handling bank accounts, credit card accounts, loans, and assets (such as cars, houses, etc). The downsides are:",
"title": ""
},
{
"docid": "10aa2b0954ea833c97fd9e0d7f1ffcbb",
"text": "Converting fideli comment to answer I don't think any Canadian bank offers this capability for online banking. However, there seems to be a fierce push right now at most banks to improve their online banking platform so they may be open to the suggestion of guest accounts",
"title": ""
},
{
"docid": "6ffed1ba7c7a5456be4234ae36bda59c",
"text": "Online banks are the future. As long as you don't need a clerk to talk to (and why would you need?) there's nothing you can't do with an online bank that you can with a brick and mortar robbers. I use E*Trade trading account as a checking account (it allows writing paper checks, debit card transactions, ACH in/out, free ATM, etc). If you don't need paper checks that often you can use ING or something similar. You can always go to a local credit union, but those will wave the fee in exchange for direct deposit or high balance, and that you can also get from the large banks as well, so no much difference there. Oh where where did Washington Mutual go....",
"title": ""
},
{
"docid": "17128da1cfb30687aaaf4b34ddc9b3ce",
"text": "You need 2 things One a Demat Account and second a Broker Account. If you need to trade online, then an agreement [Power of Attorney] between Your Saving Bank Account, the Demat Account and the Trading Account. So there are quite a few forms that need signature and proof of identify. Physical presence is required.",
"title": ""
},
{
"docid": "67e6df622dd88179304c2e78cbeab65a",
"text": "CashBase has a web app, an iPhone app and an Android app, all sync'ed up. It doesn't integrate with banks automatically, but you can import bank statements as CSV. Disclosure: Filip is CashBase's founder.",
"title": ""
},
{
"docid": "d806870dd32858170d30a0ef2ed45e93",
"text": "MoneyDance Is the way to go. I've been using it for years and it works well. It keeps getting better, and best of all, it's completely cross platform! Mac, Windows and linux!",
"title": ""
},
{
"docid": "65c0e3b68efbc4fd3788f304e00d70b7",
"text": "\"I'm currently using You Need A Budget for this. It lets you track spending my category and \"\"save\"\" money in particular accounts from month to month. They also have some strong opinions about how one should manage one's cashflow, so check it out to see if it'll work for you. It's neither web-based nor free, but the licensing terms are very reasonable.\"",
"title": ""
},
{
"docid": "5685b1ded2c93079cd5e6b11fdc85535",
"text": "I found that an application already exists which does virtually everything I want to do with a reasonable interface. Its called My Personal Index. It has allowed me to look at my asset allocation all in one place. I'll have to enter: The features which solve my problems above include: Note - This is related to an earlier post I made regarding dollar cost averaging and determining rate of returns. (I finally got off my duff and did something about it)",
"title": ""
},
{
"docid": "198cba582cbd5efbc4acd1da63d19d23",
"text": "You could try looking for a UK implementation of http://www.yodlee.com/ : Google tells me that http://www.lovemoney.com/ ( http://www.yodlee.com/2010_1_20.html ) is one such service. I use ANZ money manager - an Australian implementation of Yodlee and find it very useful. I wouldn't use Yodlee directly though (http://money-watch.co.uk/7197/uk-pfm-tool-review-yodlee-moneycenter) those T&Cs don't sound great.",
"title": ""
},
{
"docid": "0b9356353617057df4141fe06695ce80",
"text": "I use MoneyStrands.com to manage my spending. It's a lot like Mint, but provides support for more banks, and works with most Canadian financial institutions. I can't really compare them fairly though, since I didn't bother with Mint after learning that they don't care about Canadians. If your bank isn't supported by MoneyStrands, or you don't want to trust an online webiste with your account login, you can create accounts for manually uploaded files. It just means you have to log into your bank yourself, download the transactions as QFX, OFX, CSV or other supported formats, and then upload the files to the appropriate account in MoneyStrands. I love the expense tracking and reporting that MoneyStrands offers, but like Mint, their budgeting feature is seriously lacking. Fortunately I don't need to budget month-to-month, I just use it to see how much I spend on various categories, to help create annual budgets and decide how much I can invest or use for a vacation.",
"title": ""
},
{
"docid": "94f119c9fab05e9547f93016e03b7aa8",
"text": "Google Finance will do all the bullet points in your list and a few more. The only drawback is that you have to enter ALL buy and sell manually. It has an import feature, but it does not work with all trading software. http://www.google.com/finance Let me know if it works. Also, yahoo.com/finance has a good tool, but I still like better Google's application.",
"title": ""
},
{
"docid": "05c1584104a608dbd02b92a376e479f0",
"text": "You'll need to find out in what format MoneyStrands expects the data. A .qif or an .ofx file may not be the answer.",
"title": ""
},
{
"docid": "6227665539adcf4ff59654255a8cf00c",
"text": "\"You Need A Budget is a nice budgeting tool that works on the desktop. It is more focused on manual entry and budgeting over auto-downloading and categorizing. It does support downloading transactions from banks and then importing the transaction files. You mentioned having \"\"trust issues\"\" with a bank and this would be safe as you don't enter your credentials into the app. It also has a mobile app that works well. Not exactly what you are looking for, but it would work in India and be safe if you have an untrustworthy bank and it would allow you to import transactions.\"",
"title": ""
},
{
"docid": "8acc504cb209517ea0de61366d0ec50e",
"text": "Not sure you are going to find anything like this in Excel - with the automatic lookup in specific. Microsoft has a template available; but it looks to be a pretty busy page. Why not look at other software? If you have a PC, Quicken and Microsoft Money are of course the big guns. You don't mention why you switched away from MS Money... There are many other packages as well. The one that I use (but have no other financial interest in) is Moneydance as it was the best on Mac at the time I was looking. It also runs on Windows and Linux.",
"title": ""
},
{
"docid": "caedaceb019af0723b7f062ea089b6c2",
"text": "None of what you said is correct. Wells Fargo makes over half of it's net income from community banking. Investment Banking is tucked inside of the Wholesale division and represents a relatively small piece of that. Wells' auto portfolio is at $58 billion; by no means as large as say the mortgage exposure, but certainly nothing to sneeze at.",
"title": ""
}
] |
fiqa
|
2269223da36e7e05ece3a0214704f181
|
Finance car with or with out a balloon payment
|
[
{
"docid": "29c366b66bc9ac78b881ee6be8d430e3",
"text": "That interest rate (13%) is steep, and the balloon payment will have him paying more interest longer. Investing the difference is a risky proposition because past performance of an investment is no guarantee of future performance. Is taking that risk worth netting 2%? Not for me, but you must answer that last question for yourself. To your edit: How disruptive would losing the car and/or getting negative marks on your credit be? If you can quantify that in dollars then you have your answer.",
"title": ""
}
] |
[
{
"docid": "103910ac8dd3b76e41e68a79b1d5874f",
"text": "My grandmother passed away earlier this year. When I got my car 3 years ago, I did not have good enough credit to do it on my own or have her as a co-signer. We had arranged so that my grandmother was buying the car and I was co-signing. A similar situation was happening and I went to my bank and took out a re-finance loan prior to her passing. I explained to them that my grandmother was sick and on her death bed. They never once requested a power of attorney or required her signature. I am now the sole owner of the vehicle.",
"title": ""
},
{
"docid": "a453b102c970df29de645d3513f34325",
"text": "\"Care to elaborate? It is my understanding that any asset can be rehypothecated at least in theory. By saying these car loans \"\"aren't\"\" rehypo'd, do you mean this is not the practice, or that there is a law/regulation prohibiting it?\"",
"title": ""
},
{
"docid": "887b6da259f747c3ebaa6117d49b4758",
"text": "Not sure if it is the same in the States as it is here in the UK (or possibly even depends on the lender) but if you have any amount outstanding on the loan then you wouldn't own the vehicle, the loan company would. This often offers extra protection if something goes wrong with the vehicle - a loan company talking to the manufacturer to get it resolved carries more weight than an individual. The laon company will have an army of lawyers (should it get that far) and a lot more resources to deal with anything, they may also throw in a courtesy car etc.",
"title": ""
},
{
"docid": "beb3f083af599d46d40746bcc6f23dda",
"text": "\"I think everything in your case is just simply missing one important rule of how credit works. Essentially, your MIL cannot get a loan. You can. You are making her a large loan that she cannot get for herself. That is all. That is the essence of what this deal is. It is not without interest - she makes a financial contribution toward your son, you get the deal in 2 years assuming she doesn't default (she will), etc. Imagine it this way: you are sitting in the dealership with the dealer and your MIL. She wants a loan to pay for the car. The dealership says, \"\"you are way not credit worthy.\"\" So your MIL says, \"\"why doesn't my son-in-law take out the loan instead?\"\" Now the dealership says, sure, that's fine. From the dealer's standpoint, every other part of your arrangement is irrelevant - boring, even. The only magic trick is in who takes the loan out, no other difference. You're letting your MIL pull a car out of her sleeve like a magician, and in taking the deal you're believing her. This sentence: I am pretty sure that the ex-MIL will not let me down (I've loaned her large sums of money before and she always promptly repaid). is everything. You're making a rather large bet that the things that can go wrong in two years - including any situation involving your wife's welfare - are rather miniscule. And furthermore, that the few times she's paid you back - that did NOT convince banks and dealer she is more creditworthy - justifies her good creditworthiness. Is the interest worth it? Do you really believe that your MIL needs to wring a car out of you before she would consider contributing to her grandson's well-being (which is, essentially, the interest)? But wait, it's NOT everything. Her daughter (my ex-wife) would drive it for 2 years and then turn the car over to our son. Even if your MIL is creditworthy, the woman you described as follows: Her daughter, though, is a loose cannon. Will be holding and returning the collateral in this deal. Things she can do include: So I'm arguing two points: Obviously my opinion on this is clear. I hope I did a decent job of explaining where the components of this deal (credit, interest, collateral) play out in the eyes of a dealer or bank, and get lost in the mechanics of the rules you worked out with your family.\"",
"title": ""
},
{
"docid": "3f2d7cb8ce82aa73b1882a63e63724e8",
"text": "\"Yea but they might feel swindled and that you pulled a fast one on them, and not be as willing to give you good deals in the future. Like, as a totally non mathematical example, they have a car for $50k. They lower the price to 40k with a financing that will bring total payment to 60k. Their break even on that car is let's say 45k. The financier cuts them a commission on expected profits, of maybe 7k? They made an expected 2k on the car. But if you pay it all off asap, they may lose that commission, be 5k in the hole on the sale, and pretty upset. Even more upset if they finance in house. So when you go back to buy another car they'll say \"\"fuck this guy, we need to recoup past lost profits, don't go below 4K above break even.\"\" I'm not really 100% on how financing workings when it comes to cars but from my background in sales this is the bar I would set for a customer that made me take a loss by doing business with them if they tried to come back in the future. This doesn't take into account how car dealerships don't own their inventory, finance all of their cars and actually ARE willing to take a loss on a car just to get it off the lot some times.\"",
"title": ""
},
{
"docid": "927daf0565187ad69e532a058862b42f",
"text": "The optimal down payment is 0% IF your interest rate is also 0%. As the interest rate increases, so does the likelihood of the better option being to pay for the car outright. Note that this is probably a binary choice. In other words, depending on the rate you will pay, you should either put 0% down, or 100% down. The interesting question is what formula should you use to determine which way to go? Obviously if you can invest at a higher return than the rate you pay on the car, you would still want to put 0% down. The same goes for inflation, and you can add these two numbers together. For example, if you estimate 2% inflation plus 1% guaranteed investment, then as long as the rate on your car is less than 3%, you would want to minimize the amount you put down. The key here is you must actually invest it. Other possible reasons to minimize the down payment would be if you have other loans with higher rates- then obviously use that money to pay down those loans before the car loan. All that being said, some dealers will give you cash back if you pay for the car outright. If you have this option, do the math and see where it lands. Most likely taking the cash back is going to be more attractive so you don't even have to hedge inflation at all. Tip: Make sure to negotiate the price of the car before you tell them how you are going to pay for it. (And during this process you can hint that you'll pay cash for it.)",
"title": ""
},
{
"docid": "e6bf0329cade75454187b0320816ddc2",
"text": "\"One part of the equation that I don't think you are considering is the loss in value of the car. What will this 30K car be worth in 84 months or even 60 months? This is dependent upon condition, but probably in the neighborhood of $8 to $10K. If one is comfortable with that level of financial loss, I doubt they are concerned with the investment value of 27K over the loan of 30K @.9%. I also think it sets a bad precedent. Many, and I used to be among them, consider a car payment a necessary evil. Once you have one, it is a difficult habit to break. Psychologically you feel richer when you drive a paid for car. Will that advantage of positive thinking lead to higher earnings? Its possible. The old testament book of proverbs gives many sound words of advice. And you probably know this but it says: \"\"...the borrower is slave to the lender\"\". In my own experience, I feel there is a transformation that is beyond physical to being debt free.\"",
"title": ""
},
{
"docid": "832fdc8c674902d98b80c697574456cb",
"text": "The price inflation isn't a percentage, it's a fixed amount. If the dealer adds $R to the price of both the trade-in and the purchased car, then everyone ends up with the right amount of money in their pockets. So your formula should be: D + T + R = 0.1 * (P + R)",
"title": ""
},
{
"docid": "2514a39fecbdb5edb8a2ca787065cc4c",
"text": "Since this is the reasoning: I don't want to bother with micropayments, and harassing her for monthly payments. You must do one the following: Provide the money to your mom as a loan (i.e.: with a note and interest) payable when the full repayment of the loan to the bank is done (i.e.: balloon note). The terms of the note should be that the money to be used as collateral for the secured loan from the bank. Provide the money to your mom directly. In this case you have to pay gift tax on $7K (above the 13K exemption limit). Since you want the money back - you'll probably want the option #1. Your interest rate should be above a certain level to avoid reclassifying it as a gift by the IRS (your tax adviser can help you with that). Your mom will pay interest to the bank on the secured loan, and to you on the collateral (unless you wave it, subject to gift tax, again - talk to the tax adviser). You will only need to harass your mom about the balloon payment in the end. This is not a tax or legal advice. Talk to your tax adviser and a legal counsel about the details and additional options.",
"title": ""
},
{
"docid": "dba4f638e967cf689e1b735cc9daed10",
"text": "No, it would not show up on the income statement as it isn't income. It would show up in the cash flow statement as a result of financing activities.",
"title": ""
},
{
"docid": "9e814218015e61c473d66135a4cfd495",
"text": "I agree with the deposit part. But if you are buying a new car, the loan term should meet the warranty term. Assuming you know you won't exceed the mileage limits, it's a car with only maintainence costs and the repayment cost at that point.",
"title": ""
},
{
"docid": "5453e13b2b0aef8cdb621aee02f79ded",
"text": "\"Convenience, and of course money. In case of an event, you'll have to spend the full worth of money to fix/replace, while if you're insured - you get the insurance to pay for it. It is up to you to decide, if the money saved on the lower premiums worth the risk of paying much more in case of an event. Of course, the cheaper the car the more it makes sense not to pay the premiums. Many people do that. Regarding the bargaining power, I actually think that you would pay less if it is not going through insurance than the bill the insurance pays. I fixed a nasty dent for like $300 at one shop, while at the other they said \"\"It's $1200, but what do you care, your insurance will cover it\"\" (I had $500 deductible, so in the end it was cheaper for me to pay $300 without the insurance at all).\"",
"title": ""
},
{
"docid": "393ee932bbcbbe5f9751ffa34a64af45",
"text": "\"It sounds like you're basing your understanding of your options regarding financing (and even if you need a car) on what the car salesman told you. It's important to remember that a car salesman will do anything and say anything to get you to buy a car. Saying something as simple as, \"\"You have a low credit score, but we can still help you.\"\" can encourage someone who does not realize that the car salesman is not a financial advisor to make the purchase. In conclusion,\"",
"title": ""
},
{
"docid": "0abf2d4619c289bdab3c1e7ba705521d",
"text": "\"A repossessed automobile will have lost some value from sale price, but it's not valueless. They market \"\"title loans\"\" to people without good credit on this basis so its a reasonably well understood risk pool.\"",
"title": ""
},
{
"docid": "f31db5acfc76067558fb64fe71b7f964",
"text": "I'd finance the car (for 60 or 48 months), but stash enough money in a separate account so to guarantee the ability to pay it off in case of job loss. The rationales would be: Note that I'd only do this if the loan rate were very low (under 2%).",
"title": ""
}
] |
fiqa
|
a78150ca867589a2b5e15f3b3214fe29
|
Is there any online personal finance software without online banking?
|
[
{
"docid": "67e6df622dd88179304c2e78cbeab65a",
"text": "CashBase has a web app, an iPhone app and an Android app, all sync'ed up. It doesn't integrate with banks automatically, but you can import bank statements as CSV. Disclosure: Filip is CashBase's founder.",
"title": ""
},
{
"docid": "806551235283f9d9a95065c5b04a2cbc",
"text": "neobudget.com is a website that does exactly what you are describing. It is set up for electronically using the envelope system of budgeting. Disclosure: neobudget was founded by a former coworker of mine.",
"title": ""
},
{
"docid": "535fe2de4b0d7b8130a5c2fd22865b52",
"text": "MoneyStrands is a site very similar to Mint, but does not force you to link bank accounts. You can create manual accounts and use all features of the site without linking to banks.",
"title": ""
},
{
"docid": "0e4b08d2324e9ae8352ba159dbe915f8",
"text": "SavingsMap is a web-based personal finance forecasting tool that requires no bank account or personal information other than an email address. As founder of SavingsMap, our goal is to forecast future cash flows based on your current budget, while using strategies to minimize US tax obligations and taking into account expected major life events.",
"title": ""
},
{
"docid": "46075a828d1727de85ef25c10211b410",
"text": "I don't think Xero Personal does. I have my bank account in there, but since there's no automatic feed for the bank I use I imported it manually. I entered the bank by hand, so I think you could use it without listing a bank account at all.",
"title": ""
},
{
"docid": "dcf7b6129f6a8a9145f65dc426f9870e",
"text": "PocketSmith is another tool you might like to consider. No personal banking details are required, but you can upload your transactions in a variety of formats. Pocketsmith is interesting because it really focus on your future cash flow, and the main feature of the interface is around having a calendar(s) where you easily enter one off or repetitive expenses/income. http://www.pocketsmith.com/",
"title": ""
},
{
"docid": "322f5d10292e959303f15a52b5dd1380",
"text": "Out Of The Dark OOTD is a budgeting and personal money management web app that does not require you to give out access to your bank accounts or even your personal identity. It's a great tool for people with no financial experience with features like Cash Put-Aside and the Credit Card Debt Terminator and it has tons of instant guides explaining how to use every feature. You can check it out at myootd.org.",
"title": ""
}
] |
[
{
"docid": "8695e8030ee3269d15f22929ed6fbf9f",
"text": "I know of websites that do this, but I don't know of banks that do. Is there any reason you want to do this at a bank rather than use a service? My main concern with using a bank for this would be the risk of overdraft fees",
"title": ""
},
{
"docid": "05b062c3dbfae8603e25530ca2902b85",
"text": "Yodlee's Moneycenter is the system that powered Mint.com before Intuit bought them. It works great for managing accounts in a similar fashion to Mint. They have a development platform that might be worth checking out.",
"title": ""
},
{
"docid": "1f4dbe88221367fcb6ae3ac4fade687a",
"text": "I haven't found a drop-in replacement for MS Money, but I've tried a few of the Mac desktop programs. I settled on Iggsoftware's iBank, which seems to do what I need it to do. It also appears to be able to import transactions from MS Money if you export your accounts as QIF files at the MS Money end, but I never tried it.",
"title": ""
},
{
"docid": "93651496bbc8ad51ee18fb100f61dfbc",
"text": "I used to use Quicken, but support for that has been suspended in the UK. I had started using Mvelopes, but support for that was suspended as well! What I use now is an IPhone app called IXpenseit to track my spending.",
"title": ""
},
{
"docid": "a41c9f182f2aa4a77e16a1f6c6a69eb4",
"text": "USAA does - that's my bank. Wells Fargo tries to determine whether the online activity is a risk; if it is, they'll require an SMS code or phoned code be entered. You can get a fairly definitive list of online companies at twofactorauth.org.",
"title": ""
},
{
"docid": "5551e1d6c53d78ac4f021ce3d5c4c4b4",
"text": "I traded futures for a brief period in school using the BrokersXpress platform (now part of OptionsXpress, which is in turn now part of Charles Schwab). They had a virtual trading platform, and apparently still do, and it was excellent. Since my main account was enabled for futures, this carried over to the virtual account, so I could trade a whole range of futures, options, stocks, etc. I spoke with OptionsXpress, and you don't need to fund your acount to use the virtual trading platform. However, they will cancel your account after an arbitrary period of time if you don't log in every few days. According to their customer service, there is no inactivity fee on your main account if you don't fund it and make no trades. I also used Stock-Trak for a class and despite finding the occasional bug or website performance issue, it provided a good experience. I received a discount because I used it through an educational institution, and customer service was quite good (probably for the same reason), but I don't know if those same benefits would apply to an individual signing up for it. I signed up for top10traders about seven years ago when I was in secondary school, and it's completely free. Unfortunately, you get what you pay for, and the interface was poorly designed and slow. Furthermore, at that time, there were no restrictions that limited the number of shares you could buy to the number of outstanding shares, so you could buy as many as you could afford, even if you exceeded the number that physically existed. While this isn't an issue for large companies, it meant you could earn a killing trading highly illiquid pink sheet stocks because you could purchase billions of shares of companies with only a few thousand shares actually outstanding. I don't know if these issues have been corrected or not, but at the time, I and several other users took advantage of these oversights to rack up hundreds of trillions of dollars in a matter of days, so if you want a realistic simulation, this isn't it. Investopedia also has a stock simulator that I've heard positive things about, although I haven't used it personally.",
"title": ""
},
{
"docid": "e24bf7a39a85a27540fd6df3267e7eb0",
"text": "\"Excellent question. I'm not aware of one. I was going to say \"\"go visit some personal finance blogs\"\" but then I remembered that I write on one, and that I often get a commission if I talk about online accounts, so unless something is really bad I'm not going to post on it because I want to make money, not chase it away. This isn't to say that I'm biased by commissions, but among a bunch of online banks paying pretty much the same (crappy) interest rate and giving pretty much the same (often not crappy) service, I'm going to give air time to the ones that pay the best commissions. That, and some of the affiliate programs would kick me out if I trashed them on my blog. This also would taint any site, blog or not, that does not explicitly say that they do not have affiliate relationships with the banks they review. I suppose if you read enough blogs you can figure out the bad ones by their absence, but that takes a lot of time. Seems like you'd do all right by doing a \"\"--bank name-- sucks\"\" Google search to dig up the dirt. That, or call up / e-mail / post on their forum any questions you have about their services before sending them your money. If they're up front, they'll answer you.\"",
"title": ""
},
{
"docid": "8293b2227b2cf8e7b7a54f44800b5ed7",
"text": "often financial software is dire, with crappy interfaces and poorly integrated to the wider company. I have an ambition one day to create a modern human centred financial software that is focused on the task at hand rather than forcing the user to jump through unnecessary hoops. Also Excel should be banned for many reasons.",
"title": ""
},
{
"docid": "e2762d545460a22c939b7c8db3bd238a",
"text": "\"Uh, have you tried google docs? Start off simple. Other than that, for the moment I use GNUCash. Some day I might try to write my own, but for now it works well enough. I have a number of scheduled transactions in GNUCash, and it records them days in advance. You talk about \"\"I should have how much money\"\", but GNUCash offers a slightly better format: Future Minimum Balance. If you want to know whether you can spend money in an account without triggering a chain reaction, that's the number you want. Being web-based so that it can be accessed from any OS. GNUCash is cross platform, with Windows, OSX and Linux clients. It also supports mysql/postgres database backends, so while it's not \"\"Web based\"\", you can keep your data \"\"in the cloud\"\".\"",
"title": ""
},
{
"docid": "1f54884ae32eefec916c3d43e722d841",
"text": "At one point you could log into your HSBC account from the command line, but gosh, I've never heard of a bank that has a command line interface!",
"title": ""
},
{
"docid": "0b9356353617057df4141fe06695ce80",
"text": "I use MoneyStrands.com to manage my spending. It's a lot like Mint, but provides support for more banks, and works with most Canadian financial institutions. I can't really compare them fairly though, since I didn't bother with Mint after learning that they don't care about Canadians. If your bank isn't supported by MoneyStrands, or you don't want to trust an online webiste with your account login, you can create accounts for manually uploaded files. It just means you have to log into your bank yourself, download the transactions as QFX, OFX, CSV or other supported formats, and then upload the files to the appropriate account in MoneyStrands. I love the expense tracking and reporting that MoneyStrands offers, but like Mint, their budgeting feature is seriously lacking. Fortunately I don't need to budget month-to-month, I just use it to see how much I spend on various categories, to help create annual budgets and decide how much I can invest or use for a vacation.",
"title": ""
},
{
"docid": "a471c4c58c07ed7ca866cff9414c8695",
"text": "There isn't one. I haven't been very happy with anything I've tried, commercial or open source. I've used Quicken for a while and been fairly happy with the user experience, but I hate the idea of their sunset policy (forced upgrades) and using proprietary format for the data files. Note that I wouldn't mind using proprietary and/or commercial software if it used a format that allowed me to easily migrate to another application. And no, QIF/OFX/CSV doesn't count. What I've found works well for me is to use Mint.com for pulling transactions from my accounts and categorizing them. I then export the transaction history as a CSV file and convert it to QIF/OFX using csv2ofx, and then import the resulting file into GNUCash. The hardest part is using categories (Mint.com) and accounts (GnuCash) properly. Not perfect by any means, but certainly better than manually exporting transactions from each account.",
"title": ""
},
{
"docid": "f11a80155394033607a1016edc314a65",
"text": "As I mentioned in my comment, mint.com might work for you. The downsides are giving them access to all your accounts, and still having to manually enter transactions that are done in cash. If you are ok with those however, it can automate almost everything else for you.",
"title": ""
},
{
"docid": "d7701032534ea45756ab7256d60fb80c",
"text": "If liquidity and cost are your primary objectives, Vanguard is indeed a good bet. They are the walmart of finance and the absolute best at minimizing fees and other expenses. Your main portfolio holding should be VTI, the total stock market fund. Highly liquid and has the lowest fees out there at 0.05%. You can augment this with a world-minus-US fund if you want. No need to buy sector or specific geography funds when you can get the whole market for less. Add some bond funds and alternative investments (but not too much) if you want to be fully diversified.",
"title": ""
},
{
"docid": "bbf944a4d58bf8b85e060ca338784b6b",
"text": "Your math shows that you bought an 'at the money' option for .35 and when the stock is $1 above the strike, your $35 (options trade as a contract for 100 shares) is now worth $100. You knew this, just spelling it out for future readers. 1 - Yes 2 - An execute/sell may not be nesesary, the ooption will have time value right until expiration, and most ofter the bid/ask will favor selling the option. You should ask the broker what the margin requirement is for an execute/sell. Keep in mind this usually cannot be done on line, if I recall, when I wanted to execute, it was a (n expensive) manual order. 3 - I think I answered in (2), but in general they are not identical, the bid/ask on options can get crazy. Just look at some thinly traded strikes and you'll see what I mean.",
"title": ""
}
] |
fiqa
|
63df80d25c7762992b149913d5d8501a
|
Best personal finance software for Mac for German resident
|
[
{
"docid": "1c4a0bcd6ec884cb4e38e9035f7e5ffb",
"text": "I haven't used it in years, but look at GnuCash. From the site, one bullet point under Feature Highlights:",
"title": ""
}
] |
[
{
"docid": "0d1e91dd9b70da76f6ad1b4bb1a86ab0",
"text": "Personally I solve this by saving enough liquid capital (aka checking and savings) to cover pretty much everything for six months. But this is a bad habit. A better approach is to use budget tracking software to make virtual savings accounts and place payments every paycheck into them, in step with your budget. The biggest challenge you'll likely face is the initial implementation; if you're saving up for a semi-annual car insurance premium and you've got two months left, that's gonna make things difficult. In the best case scenario you already have a savings account, which you reapportion among your various lumpy expenses. This does mean you need to plan when it is you will actually buy that shiny new Macbook Pro, and stick to it for a number of months. Much more difficult than buying on credit. Especially since these retailers hate dealing in cash.",
"title": ""
},
{
"docid": "1094d051d0888469d5c8772a8afb6621",
"text": "Best Linux software is PostBooks. It is full double entry, but there is definitely a learning curve. For platform-agnostic, my favorite is Xero, which is web-based. It is full double entry balance sheet, the bank reconciliation is a pleasure to use, and they are coming out with a US version this summer. Easy to use and does everything I need.",
"title": ""
},
{
"docid": "46bc1213fb52a6c9ecdc1047f6d59daa",
"text": "For double entry bookkeeping, personal or small business, GnuCash is very good. Exists for Mac Os.",
"title": ""
},
{
"docid": "0b31fca82fd425b962d53f66cd11e408",
"text": "Start with his website, specifically his seven steps. Most everything else is around motivating people to actually do the plan. As he often says personal finance is 80% personal and 20% finance, by which he means that things that make sense financially (paying off high interest debt first) don't necessarily motivate action (so instead pay off the smallest debt first to get motivation). Really the rest is details around those seven concepts. On his site there is a link to a free one-hour podcast for the iPod, and you can pay for the full three hours of his radio show on podcast. He started on radio, and it is probably his best format. The reason Dave Ramsey has limited appeal beyond the US is that he is explicitly evangelical. He views his system as an extension of his Christian beliefs. That sells very well in parts of the US, but doesn't port very well. There is actually nothing religious in his program, other than the occasional reference to biblical verses in an attempt to tie his program into his religion, but people who are really interested and want to teach his program, not just practice it, are going to find they need to be an Evangelical (or at least a Christian) to fit in. Addendum: I should mention that Dave Ramsey is changing the FPU program (and I expect it will trickle into other things) to be more explicitly (although apparently not overtly) religious and have a stronger emphasis on budgeting. See here.",
"title": ""
},
{
"docid": "cdeaaa906e58736739bf21d721baf316",
"text": "I suggest you to test AlauxSoft Accounts and Budget. This software is a money-like. There is a freeware and a shareware (24 EUR). You will find its at http://www.alauxsoft.com Best regards, Michel ALAUX.",
"title": ""
},
{
"docid": "830ab9fb4caf0738837905aa1d8a5b57",
"text": "I generally concur with your sentiments. mint.com has 'hack me' written all over it. I know of two major open source tools for accounting: GNUCash and LedgerSMB. I use GNUCash, which comes close to meeting your needs: The 2.4 series introduced SQL DB support; mysql, postgres and sqlite are all supported. I migrated to sqlite to see how the schema looked and ran, the conclusion was that it runs fine but writing direct sql queries is probably beyond me. I may move it to postgres in the future, just so I can write some decent reports. Note that while it uses HTML for reporting, there is no no web frontend. It still requires a client, and is not multi-user safe. But it's probably about the closest to what you what that still falls under the heading of 'personal finance'. A fork of SQL Ledger, this is postgreSQL only but does have a web frontend. All the open source finance webapps I've found are designed for small to medium busineses. I believe it should meet your needs, though I've never used it. It might be overkill and difficult to use for your limited purposes though. I know one or two people in the regional LUG use LedgerSMB, but I really don't need invoicing and paystubs.",
"title": ""
},
{
"docid": "282f7837d0a479b69a571c897a726ac4",
"text": "\"I'm a big fan of Mint. I tried Wesabe prior to mint and at the time (about a year ago) it was lacking the integration of many of my accounts, so I had to go with Mint by necessity. Since then, Mint has gotten better almost monthly. I can do almost everything I want, and the budgeting tools (which would address your \"\"6 months out\"\" forecast desires) and deal alerts (basically tells you if you can get a better interest rate on savings/credit card/etc) are really helpful. Highly recommended!\"",
"title": ""
},
{
"docid": "c33880c4c168a4317fdad0185359c7a0",
"text": "I switched from Quicken for Mac to Moneydance, and have not regretted it. I see only one weakness in MD compared with Quicken: its reporting is not very good. Your information is all there and well organized, but sometimes it's hard work to extract it in a convenient form. Of course a lot depends on what you need from the application, but I strongly recommend you take a look at MD before deciding.",
"title": ""
},
{
"docid": "3b97c12e43ff897b685f9465d1f85e67",
"text": "I had the same problem and was looking for a software that would give me easy access to historical financial statements of a company, preferably in a chart. So that I could easily compare earnings per share or other data between competitors. Have a look at Stockdance this might be what you are looking for. Reuters Terminal is way out of my league (price and complexity) and Yahoo and Google Finance just don't offer the features I want, especially on financials. Stockdance offers a sort of stock selection check list on which you can define your own criterion’s. Hence it makes no investment suggestions but let's you implement your own investing strategy.",
"title": ""
},
{
"docid": "d806870dd32858170d30a0ef2ed45e93",
"text": "MoneyDance Is the way to go. I've been using it for years and it works well. It keeps getting better, and best of all, it's completely cross platform! Mac, Windows and linux!",
"title": ""
},
{
"docid": "1ee3149b12c0eb37a8beb933962a0205",
"text": "I recently made the switch to keeping track of my finance (Because I found an app that does almost everything for me). Before, my situation was fairly simple: I was unable to come up with a clear picture of how much I was spending vs saving (altho I had a rough idea). Now I here is what it changes: What I can do now: Is it useful ? Since I don't actually need to save more than I do (I am already saving 60-75% of my income), 1) isn't important. Since I don't have any visibility on my personal situation within a few years, 2) and 3) are not important. Conclusion: Since I don't actually spend any time building theses informations I am happy to use this app. It's kind of fun. If I did'nt had that tool... It would be a waste of time for me. Depends on your situation ? Nb: the app is Moneytree. Works only in Japan.",
"title": ""
},
{
"docid": "c55c405c834c45e2dcf101bef19613ad",
"text": "The answer to this question can be found in the related question Is there any online personal finance software without online banking?",
"title": ""
},
{
"docid": "929cc868870e45ef33de54abb9d7320c",
"text": "\"I've tried Mint, and I've tried Quicken. Now, I think Quicken is an annoying, crashy little piece of software, but it is also quite capable; overall I think it has the features you want. You can enter your bills, broken down by category, in advance. You can enter your paychecks, broken down by category (gross income, federal income tax, state income tax, social security, SDI, transfers to tax-protected 401(k) account, etc) in advance. You can enter in your stock trades and it can tell you how much you'll need to end up paying in capital gains taxes. You can even enter in your stock option vesting schedule in advance (it's a royal pain because you can't go back and change anything without deleting everything, but you can do it). It'll forecast your bank account balance in all of your bank accounts in advance with a shiny chart. It'll even model your loans, if you set it up right. I didn't do too much with the \"\"budgeting\"\" tools per se, but the account-balances-daily features sound like the closest thing to what you're looking for that's likely to exist. The only thing that's a trifle tricky is that transfers from one account to another may take multiple days (hello, ACH) and you'll have to decide whether to record them at departure or arrival.\"",
"title": ""
},
{
"docid": "94c2b0c5d718b73fc598879131d2e8ee",
"text": "\"Mint.com does this quite well. The graph views of your budgets, investments, debts, and other aspects of your financial life can be shown in gestalt, or on a per-account basis (at least, it does for me). See the investment \"\"how it works\"\" page for more information. \"\"Find out whether you're beating the market–or it's beating you. Compare your portfolio to market benchmarks, and instantly see your asset allocation across all your investment accounts: 401k, mutual funds, brokerage accounts, even IRAs.\"\"\"",
"title": ""
},
{
"docid": "e5757b6e4e418452ae0693563db8b0ec",
"text": "GnuCash—Great for the meticulous who want to know every detail of their finances. Pros: Cons:",
"title": ""
}
] |
fiqa
|
23ca519e9a02d792704a24d533c5b9a7
|
Personal finance web service with account syncing in Germany
|
[
{
"docid": "5e7e75cacb7d4a8796673232198e2982",
"text": "\"I don't think there is a law against it. For example comdirect offers multi banking so you can access your accounts from other banks through the comdirect website. My guess would be: Germans are very conservative when it comes to their money (preferring cash above cards, using \"\"safe\"\" low interest saving accounts instead of stocks) so there just might be no market for such a tool. There are desktop apps with bank syncing that offer different levels of personal finance management. Some I know are MoneyMoney, outbank, numbrs, GNUCash and StarMoney.\"",
"title": ""
},
{
"docid": "6d4dda5733c64ae1e43a453e77a300b6",
"text": "As much as I know StarMoney has also a web service for banking.",
"title": ""
}
] |
[
{
"docid": "9c7310340478610eea3f1d4b154baaf6",
"text": "\"As far as I can tell there are no \"\"out-of-the-box\"\" solutions for this. Nor will Moneydance or GnuCash give you the full solution you are looking for. I imaging people don't write a well-known, open-source, tool that will do this for fear of the negative uses it could have, and the resulting liability. You can roll-you-own using the following obscure tools that approximate a solution: First download the bank's CSV information: http://baruch.ev-en.org/proj/gnucash.html That guy did it with a perl script that you can modify. Then convert the result to OFX for use elsewhere: http://allmybrain.com/2009/02/04/converting-financial-csv-data-to-ofx-or-qif-import-files/\"",
"title": ""
},
{
"docid": "0cb596c3982679cb59da8ba7d152b20e",
"text": "Proposed solutions 1 and 3 sound like extra work. Is a dual-file system something that you and your wife will be willing to maintain? Having separate files may better reflect your financial structure, but be sure that the expense of added time and overhead is worth it to you in the long run. You could track your own accounts, your wife's accounts, and your joint accounts in the same Money file (solution 2). Getting married can be a simple matter of adding the wife's accounts and recording transfers as money flows into joint accounts. This would make transfers between accounts easy to record and would afford easy reporting of overall income and spending. To maintain a degree of continuity for your own accounts, customize some reports to exclude your wife's accounts and joint accounts. A note about Microsoft Money I think Microsoft Money is fantastic and I have no plans to stop using it despite the fact that Microsoft killed the product line. All Money users should be made aware of the free Sunset version that requires no online activation. Also check out PocketSense, a collection of free Python scripts that can download transactions from some banks directly into Money. I use and highly recommend both.",
"title": ""
},
{
"docid": "684d7001ce736907f3d1b01865d78eaf",
"text": "Specifically I'm trying to understand this pargraph: >Stripping the German mobile-phone unit of its cash and increasing its net debt before the IPO could help lower the unit’s average cost of capital, said Carlos Winzer, a senior vice president at Moody’s Investors Service. >“Telefonica Deutschland had a very strong cash position and no debt, so this move will allow the German unit to have a more efficient balance sheet structure,” said Winzer, who has covered Telefonica for 20 years How does moving cash from the German unit to the Spanish Telefonica unit induce a more efficient balance sheet structure for the German unit? Appreciate any help!",
"title": ""
},
{
"docid": "55499b6ed28e12db2ea47757a12c865f",
"text": "Just signed up to them recently myself. Still not sure if I want to delete my account now, or wait and see if they can get more western European documents on line. Just haven't had time to find out who this Primera is, and if I need to worry about them selling my data.",
"title": ""
},
{
"docid": "05b062c3dbfae8603e25530ca2902b85",
"text": "Yodlee's Moneycenter is the system that powered Mint.com before Intuit bought them. It works great for managing accounts in a similar fashion to Mint. They have a development platform that might be worth checking out.",
"title": ""
},
{
"docid": "bebaa6b3cce1a7612b581d6cba1a3810",
"text": "MoneyDashboard or XeroPersonal are similar sites to Mint.com MoneyDashboard is planning on releasing an Android App XeroPersonal is also in development of an Android App For more details about the differences between the two apps, see this Web App question",
"title": ""
},
{
"docid": "94e4d5ca28ad25d8016392b2891ba804",
"text": "\"As many before me said but will say again for the sake of completeness of an answer: First off provision to have an emergency fund of 6 months living expenses to cover loss of employment, unforeseen medical issues etc. When that is done you re free to start investing. Do remember that putting all your eggs in one basket enable risks, so diversify your portfolio and diversify even within each investment vehicle. Stocks: I would personally stay away from stocks as it's for the most part a bear market right now (and I assume you re not interested day-trading to make any short term return) and most importantly you dont mention any trading experience which means you can get shafted. Mutual Funds: Long story short most of these work; mainly for the benefit for their management and people selling them. Bonds Instead, I would go for corporate bonds where you essentially buy the seller(aka the issuing company) and unlike gambling on stocks of the same company, you dont rely on speculation and stock gains to make a profit. As long as the company is standing when the bond matures you get your payment. This allows you to invest with less effort spent on a daily basis to monitor your investments and much better returns(especially if you find opportunities where you can buy bonds from structurally sound companies that have for reasons you deem irrelevant, purchase prices in the secondary market for cents in the dollar) than your other long term \"\"stable options\"\" like German issued bonds or saving accounts that are low in general and more so like in the current situation for German banks. Cryptocurrency I would also look into cryptocurrency for the long term as that seems to be past its childhood diseases and its also a good period of time to invest in as even the blue chips of that market are down party due to correction from all time highs and partly due to speculation. As Im more knowledgeable on this than German-locale bonds, a few coins I suggest you look into and decide for yourself would be the obvious ETH & BTC, then a slew of newer ones including but not limited to OmiseGO, Tenx(Pay), Augur and IOTA. Beware though, make sure to understand the basics of security and good practices on this field, as there's no central bank in this sector and if you leave funds in an exchange or your wallet's private key is compromised the money are as good as gone.\"",
"title": ""
},
{
"docid": "82b9b92a9cd236b37a2eb01f8a3d5dfb",
"text": "The best way to answer this question is to try. GnuCash is free, so setting it up and giving it a go shouldn't be too hard. After all, what really matters is how helpful the program is for your purposes. One aspect of personal finance that stops me from jumping to GnuCash/KMyMoney/MoneyDance is the ability to download transactions from my financial institutions. Last time I checked, the process was somewhat involved and support was limited for a handful of banks. Because of that, I decided to stick with MS Money (and once Microsoft dropped the ball, with Quicken). I am sure things are better these days, but I am still not comfortable with trusting my finances to something new and unproven. I still remember how painful it was several years ago, when some bug in MS Money caused occasional mess-up of the reconciliation state for the American Express credit cards.",
"title": ""
},
{
"docid": "198cba582cbd5efbc4acd1da63d19d23",
"text": "You could try looking for a UK implementation of http://www.yodlee.com/ : Google tells me that http://www.lovemoney.com/ ( http://www.yodlee.com/2010_1_20.html ) is one such service. I use ANZ money manager - an Australian implementation of Yodlee and find it very useful. I wouldn't use Yodlee directly though (http://money-watch.co.uk/7197/uk-pfm-tool-review-yodlee-moneycenter) those T&Cs don't sound great.",
"title": ""
},
{
"docid": "322adf88e50cec540e2b289c981ad770",
"text": "You can invest in a couple of Sharia-conform ETFs which are available in Germany and issued by Deutsche Bank (and other financial institutions). For instance, have a look at these ETFs: DB Sharia ETFs In addition, Kuveyt Turk Bank aims to become Germany's first Islamic bank offering Sharia conform investments (Reuters).",
"title": ""
},
{
"docid": "2b21b7787891776d81772e462a27e786",
"text": "\"My wife and I have been ridiculously happy with YNAB. It's not \"\"online,\"\" but syncs across our phones & computers using Dropbox. It supposedly supports different locales and currencies, but I have never needed to try that out.\"",
"title": ""
},
{
"docid": "638947ae1029dd877c240c92506276e6",
"text": "Are there banks where you can open a bank account without being a citizen of that country without having to visit the bank in person? I've done it the other way around, opened a bank account in the UK so I have a way to store GBP. Given that Britain is still in the EU you can basically open an account anywhere. German online banks for instance allow you to administrate anything online, should there be cards issued you would need an address in the country. And for opening an account a passport is sufficient, you can identify yourself in a video chat. Now what's the downside? French banks' online services are in French, German banks' services are in German. If that doesn't put you off, I would name such banks in the comments if asked. Are there any online services for investing money that aren't tied to any particular country? Can you clarify that? You should at least be able to buy into any European or American stock through your broker. That should give you an ease of mind being FCA-regulated. However, those are usually GDRs (global depository receipts) and denominated in GBp (pence) so you'd be visually exposed to currency rates, by which I mean that if the stock goes up 1% but the GBP goes up 1% in the same period then your GDR would show a 0% profit on that day; also, and more annoyingly, dividends are distributed in the foreign currency, then exchanged by the issuer of the GDR on that day and booked into your account, so if you want to be in full control of the cashflows you should get a trading account denominated in the currency (and maybe situated in the country) you're planning to invest in. If you're really serious about it, some brokers/banks offer multi-currency trading accounts (again I will name them if asked) where you can trade a wide range of instruments natively (i.e. on the primary exchanges) and you get to manage everything in one interface. Those accounts typically include access to the foreign exchange markets so you can move cash between your accounts freely (well for a surcharge). Also, typically each subaccount is issued its own IBAN.",
"title": ""
},
{
"docid": "90b0557ba3649538e4ef1b972e18f484",
"text": "Mint.com is a fantastic free personal finance software that can assist you with managing your money, planning budgets and setting financial goals. I've found the features to be more than adequate with keeping me informed of my financial situation. The advantage with Mint over Microsoft Money is that all of your debit/credit transactions are automatically imported and categorized (imperfectly but good enough). Mint is capable of handling bank accounts, credit card accounts, loans, and assets (such as cars, houses, etc). The downsides are:",
"title": ""
},
{
"docid": "3e89d3c295686a29498edd78227a5181",
"text": "Take a look at Everbank. They offer CDs and Money Market Accounts denominated in Euros for US residents. https://www.everbank.com/personal/foreign-currencies.aspx",
"title": ""
},
{
"docid": "7ec741c8c86592e33bb9e96b367e02cc",
"text": "The answer today is the Fidelity Rewards Amex. This card pays the highest cash back (2%) on ALL purchases. The answer gets more complicated if you like miles, or you want to use one card for groceries and gas and another for restaurants, etc. But the Fidelity Amex gives you 2% on everything you purchase, automatically deposited into your Fidelity account as cash (no coupons to rip off, or checks to deposit).",
"title": ""
}
] |
fiqa
|
63a9b4f2cbcfaf84fb1c8f94b7f3c698
|
How to save criteria in Google Finance Stock Screener?
|
[
{
"docid": "9f726f42e288957f12902d0dad5d50bf",
"text": "\"There is probably a better way, but you can do the following: (1) Right click on the right pointing arrow next to the \"\"1-20 of xx rows\"\" message at the bottom right of the table, and select \"\"Copy link location\"\" (2) Paste that into the location (3) At the end of the pasted text there is a \"\"&output=json\"\", delete that and everything after it. (4) hit enter What you get is a page that displays the set of securities returned by and in a very similar display to the \"\"stock screener\"\" without the UI elements to change your selections. You can bookmark this page.\"",
"title": ""
}
] |
[
{
"docid": "5b00300f2a333c26c62eefd7a6367917",
"text": "When you look at the charts in Google Finance, they put the news on the right hand side. The time stamp for each news item is indicated with a letter in the chart. This often shows what news the market is reacting to. In your example: Clicking on the letter F leads to this Reuters story: http://www.reuters.com/article/2011/02/04/usa-housing-s-idUSWAT01486120110204",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "f9c64c3b2016141277efdf4e834774e1",
"text": "Google Finance gives you this information.",
"title": ""
},
{
"docid": "90fead46e9d8314e5f383a09a89b73e6",
"text": "I've not gotten an answer so far. Since I've started my search for a new financial planner here are the criteria I am using:",
"title": ""
},
{
"docid": "57f41222ce7dc5831f6d274d9d46090a",
"text": "I know nice and free stock screener for UK (and 20+ exchanges) - https://unicornbay.com/screener?f=exchange_str|%3D|LSE;&s=MarketCapitalization|desc&p=1|20 from Unicorn Bay. It supports both fundamental and technical analysis.",
"title": ""
},
{
"docid": "3451c2779bca4a3422a1edf0de832b52",
"text": "At this time, Google Finance doesn't support historical return or dividend data, only share prices. The attributes for mutual funds such as return52 are only available as real-time data, not historical. Yahoo also does not appear to offer market return data including dividends. For example, the S&P 500 index does not account for dividends--the S&P ^SPXTR index does, but is unavailable through Yahoo Finance.",
"title": ""
},
{
"docid": "c83ab56176a53cc349d933f86728f74c",
"text": "\"I use Google Finance too. The only thing I have problem with is dividend info which it wouldn't automatically add to my portfolio. At the same time, I think that's a lot to ask for a free web site tool. So when dividend comes, I manually \"\"deposit\"\" the dividend payment by updating the cash amount. If the dividend comes in share form, I do a BUY at price 0 for that particular stock. If you only have 5 stocks, this additional effort is not bad at all. I also use the Hong Kong version of it so perhaps there maybe an implementation difference across country versions. Hope this helps. CF\"",
"title": ""
},
{
"docid": "3e1635a637bbb1a5c4363476bdfa51e1",
"text": "\"For US equities, Edgar Online is where companies post their government filings to the SEC. On Google Finance, you would look at the \"\"SEC filings\"\" link on the page, and then find their 10K and 10Q documents, where that information is listed and already calculated. Many companies also have these same documents posted on their Investor Relations web pages.\"",
"title": ""
},
{
"docid": "76e2f1493af491c6de3ccbfff6b5a825",
"text": "What you're looking for is the 'Transaction Report'. When you're looking at the report (it comes up empty), open the options and click on the first tab 'Accounts'. Here you can highlight multiple source accounts in the top pane, and filter by the Expense accounts that you are interested in the bottom pane. Here's an example that goes over the process (there are many examples online, I just included the first one that came up in a search).",
"title": ""
},
{
"docid": "dd0cdb33bb16c2cd9885660a2f39574d",
"text": "The article links to William Bernstein’s plan that he outlined for Business Insider, which says: Modelling this investment strategy Picking three funds from Google and running some numbers. The international stock index only goes back to April 29th 1996, so a run of 21 years was modelled. Based on 15% of a salary of $550 per month with various annual raises: Broadly speaking, this investment doubles the value of the contributions over two decades. Note: Rebalancing fees are not included in the simulation. Below is the code used to run the simulation. If you have Mathematica you can try with different funds. Notice above how the bond index (VBMFX) preserves value during the 2008 crash. This illustrates the rationale for diversifying across different fund types.",
"title": ""
},
{
"docid": "509035e481f4760683199a219b1375d9",
"text": "\"If by saying you wish to invest \"\"for the long term 5-10 years\"\" I take it you mean to hold a stock for between 5-10 years. If this is the case, this is the fundamental flaw in your screening algorithm. No company stock price continues to go up without end for 5-10 years. The price of every company's stock goes down at some point. You have to decide on a company by company basis whether you want to ride out the downturn or sell and get out. This is a personal decision based on your own research. The list of screening criteria you list indicates you are looking for solid earnings companies. Try not to apply these rules rigidly because every company runs through a rough patch. At times past, GE (for example) met all of your criteria. However, in 2017, it would not and therefore would not meet your screening criteria. Would you sell GE if you owned it? Maybe, or maybe you would hold through the downturn. The same be said for MSFT in 2010 or AAPL pre-Jobs return. A rule you may want to add to your list: know the company business well; that is, don't invest in companies you have no understanding of their business model.\"",
"title": ""
},
{
"docid": "dd81a47a62701df97740f33adf7b8b22",
"text": "\"Just an FYI, this can be a risky move. Unless you have been in the industry for a while, or are extremely well averse in investment management/research, keep it pretty short. In a lot of ways, you might want to think about tailoring it more like a sell-side report. Also, make sure you understand the style of investing the PM/company you are applying to likes. The reason I say this is because every buy-side shop is different. Some do 1-2 page write-ups with models and walk through's, others will expect 60 page \"\"decks\"\" (i.e. Powerpoints). The longer the deck, the more you have that can go wrong. If one tiny thing is wrong, or you have a typo anywhere, it hurts you more than it helps that you wrote something long (I once had the wrong rating on one issuance of a bond ladder I was pitching; it's all the PM's focused on). The more important aspect is that you understand the shop you are applying to and then tailoring the pitch to them. For example, don't do a growth tech company with an 80x forward P/E if you're applying to a fundamental value shop. It shows you didn't do research on the firm you're applying to and that you won't fit the culture. This is part of why I was saying that this can be a risky move, if the firm is large enough to have an HR department, they likely have a lot of different investment styles in house. Finally, try to keep it to a small/mid-cap company. Analysts/PMs follow stocks all day long and will most likely have an opinion on 99% of large caps, no matter the sector. In summary, I'd recommend a 1-2 page sell-side style write-up with a backup model (printed excel file). KISS (keep it simple stupid), have a summary, couple years worth of historical's, 2 years forward, and a few main bullet points of why you like them. In your case, this pitch should be something to pique the interest so that you can NAIL a real pitch in the interview. If you get an interview, know everything about everything in the industry as well as that specific company. For example, lets say you do a smartphone secular theme investment. Do you know what outstanding AAPL/Android cases there are, and more importantly, how would each ruling likely affect the marketplace? This is because I can guarantee if you're pitching to another tech guy, he knows and has an educated opinion on it. Also, in many cases having a great model can mean more than a long write-up, it shows that you're good with numbers and can think about FUTURE earnings, which are all that matter. Last point, IMO you'd be better off trying to get your foot in the door through networking than HR. HR doesn't really do much on the buy-side with recruiting and won't really understand what to look for in a good pitch (they're HR after-all, not an analyst). Try to meet someone over coffee and then have a pitch READY to bring out/discuss. The buy-side is selective enough that usually when positions open up it's either because they are creating one for you or they already have an idea of who is going to fill it. This mean HR has little to no say in helping you get in. You'll have a lot more success this way than blasting to a bunch of HR emails.\"",
"title": ""
},
{
"docid": "7e1b383fd0db28de0e0948544e307d5f",
"text": "Yes, add the stocks/mutual funds that you want and then you would just need to add all the transactions that you theoretically would have made. Performing the look up on the price at each date that you would have sold or bought is quite tedious as well as adding each transaction.",
"title": ""
},
{
"docid": "420f4726f5eff4d17dbcf18d85d62d3b",
"text": "Google Finance and Yahoo Finance have been transitioning their API (data interface) over the last 3 months. They are currently unreliable. If you're just interested in historical price data, I would recommend either Quandl or Tiingo (I am not affiliated with either, but I use them as data sources). Both have the same historical data (open, close, high, low, dividends, etc.) on a daily closing for thousands of Ticker symbols. Each service requires you to register and get a unique token. For basic historical data, there is no charge. I've been using both for many months and the data quality has been excellent and API (at least for python) is very easy! If you have an inclination for python software development, you can read about the drama with Google and Yahoo finance at the pandas-datareader group at https://github.com/pydata/pandas-datareader.",
"title": ""
},
{
"docid": "04b9c34b353fc353f0aafb56a22df8c5",
"text": "Start by paying down any high interest debt you may have, like credit cards. Reason being that they ultimately eat into any (positive) returns you may have from investing. Another good reason is to build up some discipline. You will need discipline to be a successful investor. Educate yourself about investing. The Motley Fool is probably still a good place to start. I would also suggest getting into the habit of reading the Wall Street Journal or at the very least the business section of the New York Times. You'll be overwhelmed with the terminology at first, but stick with it. It is certainly worth it, if you want to be an investor. The Investor's Business Daily is another good resource for information, though you will be lost in the deep end of the pool with that publication for sure. (That is not a reason to avoid getting familiar with it. Though at first, it may very well be overkill.) Save some money to open a brokerage account or even an IRA. (You'll learn that there are some restrictions on what you can do in an IRA account. Though they shouldn't necessarily be shunned as a result. Money placed in an IRA is tax deductible, up to certain limits.) ????? Profit! Note: In case you are not familiar with the joke, steps 4 & 5 are supposed to be humorous. Which provides a good time to bring up another point, if you are not having fun investing, then get out. Put your money in something like an S&P 500 index fund and enjoy your life. There are a lot more things to say on this subject, though that could take up a book. Come back with more questions as you learn about investing. Edit: I forgot to mention DRIPs and Investment Clubs. Both ideas are suggested by The Motley Fool.",
"title": ""
}
] |
fiqa
|
1c9b9a1896963553313256a40eb618ba
|
Return on asset (ROA) value for a stock is reported differently on Yahoo Finance and MarketWatch
|
[
{
"docid": "752bb99d8cc3124e1fcb2118204503bf",
"text": "\"Why there is this huge difference? I am not able to reconcile Yahoo's answer of 5.75%, even using their definition for ROA of: Return on Assets Formula: Earnings from Continuing Operations / Average Total Equity This ratio shows percentage of Returns to Total Assets of the company. This is a useful measure in analyzing how well a company uses its assets to produce earnings. I suspect the \"\"Average Total Equity\"\" in their formula is a typo, but using either measure I cannot come up with 5.75% for any 12-month period. I can, however, match MarketWatch's answer by looking at the 2016 fiscal year totals and using a \"\"traditional\"\" formula of Net Income / Average Total Assets: I'm NOT saying that MatketWatch is right and Yahoo is wrong - MW is using fiscal year totals while Yahoo is using trailing 12-month numbers, and Yahoo uses \"\"Earnings from Continuing Operations\"\", but even using that number (which Yahoo calculates) I am not able to reconcile the 5.75% they give.\"",
"title": ""
},
{
"docid": "e72fec842579c94379154c5c9e31b87d",
"text": "IESC has a one-time, non-repeatable event in its operating income stream. It magnifies operating income by about a factor of five. It impacts both the numerator and the denominator. Without knowing exactly how the adjustments are made it would take too much work for me to calculate it exactly, but I did get close to their number using a relatively crude adjustment rule. Basically, Yahoo is excluding one-time events from its definitions since, although they are classified as operating events, they distort the financial record. I teach securities analysis and have done it as a profession. If I had to choose between Yahoo and Marketwatch, at least for this security, I would clearly choose Yahoo.",
"title": ""
}
] |
[
{
"docid": "d238ec6fd530336220b4cc773858845b",
"text": "\"Regarding SPY: \"\"One SPDR unit is valued at approximately 1/10 of the value of the S&P 500. Dividends are distributed quarterly, and are based on the accumulated stock dividends held in trust, less any expenses of the trust.\"\" (source) These are depository receipts, not the actual stocks. Regarding IVV: \"\"The component stocks are weighted according to the total float-adjusted market value of their outstanding shares. The Fund invests in sectors, such as energy, information technology, industrials, financials, consumer staples, healthcare, telecom services, consumer discretionary and materials.\"\" (more here) VOO is the Vanguard S&P 500 ETF. The tracking error seems pretty small to me. I went to Google Finance and plotted the percent change for all four on one chart. They lie pretty much on top of one another. The actual dollar value of each one doesn't matter nearly as much as the fact that they move up and down almost in lock-step. There may be a larger difference going farther out, but for three separate financial products, the agreement is still remarkably good.\"",
"title": ""
},
{
"docid": "2649f29b989d8e7f895fca5b3d7d7194",
"text": "\"At the bottom of Yahoo! Finance's S & P 500 quote Quotes are real-time for NASDAQ, NYSE, and NYSE MKT. See also delay times for other exchanges. All information provided \"\"as is\"\" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein. Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Orderbook quotes are provided by BATS Exchange. US Financials data provided by Edgar Online and all other Financials provided by Capital IQ. International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. Thus, yes there is a DB being accessed that there is likely an agreement between Yahoo! and the providers.\"",
"title": ""
},
{
"docid": "a0d96161e8f3b899c36c596612638ed2",
"text": "The dividend is for a quarter of the year, three months. 80 cents is 3.9% of $20.51. Presumably the Div/yield changes as the stock price changes. On Yahoo, they specify that the yield is based on a particular stated date. So it's only the exact number if the stock trades at the price on that date.",
"title": ""
},
{
"docid": "ff68b09fef2ab83c41d8cf7759d12c2c",
"text": "The point of that question is to test if the user can connect shares and stock price. However, that being said yeah, you're right. Probably gives off the impression that it's a bit elementary. I'll look into changing it asap.",
"title": ""
},
{
"docid": "cd44af0ba38fa7d68265e7bc6603f04d",
"text": "According to Active Equity Management by Zhou and Jain: When a stock pays dividend, the adjusted price in Yahoo makes the following adjustment: Let T be the ex-dividend date (the first date that the buyers of a stock will not receive the dividend) and T-1 be the last trading day before T. All prices before T are adjusted by a multiplier (C_{T-1} - d_T)/C_{T-1}, where C_{T-1} is the close price at T-1 and d_T is the dividend per share. This, of course means that the price before T decreases.",
"title": ""
},
{
"docid": "a2750c9f04e427d75763d6cd66272524",
"text": "\"@jidugger mostly got it right. It basically mean that past performance of a stock, or a basket of stocks, are not at all useful when trying to predict its future. There is no proven correlation between past and future performance. If there was such a correlation, that was \"\"proven\"\" or known, then investors would quickly exploit this correlation by buying or selling this stock, thus nullifying the prediction. It doesn't mean the specific individuals cannot predict the future stock market - hell, if I set up 2^100 different robots, where every robots gives a different series of answers to the 100 questions \"\"how will stock X do Y days from now\"\" (for 1<=Y<=100), then one of those robots would be perfectly correct. The problem is that an outside observer has no way of knowing which of the predictor robots is right. To say that stock is memoryless strikes me as not quite right -- to the extent that stocks are valued based on earnings, much of what we infer about future earnings relies on past and present earnings. To put it another way - you have $1000 now, and need to decide whether to invest in a particular stock, or a stock index. The \"\"memoryless\"\" property means that no matter how many earning reports you view ... by the time you see them, the stock price already accounts for them, so they're not useful to you. If the earning reports are positive, the stock is already \"\"too high\"\" because people bought it before you did. So on average, you can't use this information to predict the stock's future performance, and are better off investing in an index fund (unless you desire extra risk that doesn't come with more profitability).\"",
"title": ""
},
{
"docid": "214445bd7aa7f6195f71f07ccf8b2df9",
"text": "that's just it, though - they are splitting up the 1%! and in most cases, especially vanguard, they are splitting up far less. ETFs don't have 12b-1 fees. explaining why you're experiencing different returns for ETFs will almost certainly involve something other than their expense. again, this is especially true for vanguard. they have the cheapest ETFs around (though i think schwab beats them on a few now). i can only guess at the full compensation structure. betterment likely earns money on cash reserves and securities hypothecation (i guess?). they also charge a small fee from what i understand. finance is very slim these days. i guess i'm wondering what your ultimate question is. if it's the inter corporate compensation structure, above is my best guess. if it's about performance, then we need to compare the ETFs you are looking at. if it's about the fees on funds, i think we covered that! as an advisor, it's my experience that very specific inquiries about fees have a deeper concern. people hear a lot about being overcharged so cost is a very standard place for clients to initially look when trying to compare performance of portfolios or securities.",
"title": ""
},
{
"docid": "6d9657c607586b37a6adb1bcd2413064",
"text": "Returns reported by mutual funds to shareholders, google, etc. are computed after all the funds' costs, including Therefore the returns you see on google finance are the returns you would actually have gotten.",
"title": ""
},
{
"docid": "d298f15e936007876cd081e40c7107c7",
"text": "I think what's screwing up my calculation is the (reL), return on equity levereged figure. The beta for KORS apparently is -0.58, so when I use the formula reL = rf + (ßL)(rm - rf), I get -0.0048 as my reL. Am I doing my beta wrong? Am I supposed to use a different figure for my beta? ALSO, further in the process, when using the formula for WACC, my E/(D+E) is essentially 1.0 because market value of equity for KORS is 7bill and its market value of debt is only like 147 million. edit: I'm beginning to believe that my beta of -0.58 is not rightly used. It's what yahoo told me, but other sources are saying that the beta of KORS is more like -0.01 or close to 0. Yes? edit 2: Using -0.01 beta, I get a rdWACC of 2.2%. Now this seems more plausible. I did some research on negative betas and found out that they basically don't really exist aside from gold. So Yahoo must be giving me a weird beta figure. Other websites are all giving me -0.01, so I believe that is correct.",
"title": ""
},
{
"docid": "3f09a659705f500b5a9e46f2f59bb4d0",
"text": "This idea does not make sense for most mutual funds. The net asset value, or NAV, is the current market value of a fund's holdings, minus the fund's liabilities, that is usually expressed as a per-share amount. For most funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day. http://en.wikipedia.org/wiki/Mutual_fund I am not certain, but I believe that OppenheimerFunds does not report intraday prices. I would call them up and ask.",
"title": ""
},
{
"docid": "0abcd449cae2ed7664022837ddd01ced",
"text": "\"Google's RSI is using a 10 period on 2 minute bars - i.e. it is based upon the last 20 minutes of data. Yahoo's RSI is using a 14 period lookback on an undetermined timeframe (you could maybe mouse-over and see what incremental part of the chart is giving) and given the \"\"choppier\"\" price chart, probably 30 second or 1 minute bars. Given the difference in both the period specified and the periodicity of the charts - you should expect different results.\"",
"title": ""
},
{
"docid": "4f214c7896e53e4033f83168ea3ed4c4",
"text": "The value of a share depends on the value of the company, which involves a lot more than the value of its assets -- it requires making decisions about what you think will happen to the company in the future. That's inherently not something that can be reduced to a single formula, at least not unless you can figure out how to represent your guesses and your confidence in them in the formula ... and even if you could do all that it would only say what you think the stock is worth; others will be using different numbers and legitimately get different results. Disagreement over value is what the stock market is all about, I'm afraid.",
"title": ""
},
{
"docid": "548619a630faece1dba4884501db7316",
"text": "I should have been clearer but my point was that the NYSE seems to be blaming third party vendors for reporting invalid test data but their own website reported the same data so it seems like there might be another issue. Edit: Found the full comment. It seems that NASDAQ distributed the test data and other parties including the NYSE incorrectly displayed it. I can (barely) understand some third parties incorrectly reporting this data but it seems really bizarre that NYSE wouldn't know how to handle this.",
"title": ""
},
{
"docid": "b3a1c1a22b4ef798a3315cc961bded21",
"text": "In your other question about these funds you quoted two very different yields for them. That pretty clearly says they are NOT tracking the same index.",
"title": ""
},
{
"docid": "141996ecd5b6a61868abb87b8a3326de",
"text": "In my experiences most hedge funds won't have a benchmark in their mandate and are evaluated based upon absolute returns. Their benchmarks are generally cash + x basis points. So, no attribution and no IR. No experience at all with CTA's though, so not sure how things are there.",
"title": ""
}
] |
fiqa
|
b77e49d3c6f1b1eb5a4ff0a26659fdeb
|
Retired, want to buy a mobile home; how to finance?
|
[
{
"docid": "140add684e81369c5d46fa6354930056",
"text": "Do you think your 403b will earn more than the mortgage interest rate? If so, then mortgage seems the way to go. Conservative investment strategies might not earn much more than a 3-4% mortgage, and if you're paying 5-6% it's more likely you'll be earning less than the mortgage. From another point of view, though, I would probably take a loan anyway just from a security standpoint - you have more risk if you put a third of your retirement savings into one purchase directly, whereas if you do a 10-15 year loan, you'll have more of a cushion. Also, if you don't outlive the mortgage, you'll have had use of more of your retirement income than otherwise - though I do wonder if it puts you at some risk if you have significant medical bills (which might require you to liquidate your 403b but wouldn't require you to sell your house, so paying it off has some upside). Also, as @chili555 notes in comments, you should consider the taxation of your 403(b) income. If you pull it out in one lump sum, some of it may be taxed at a higher rate than if you pulled it out more slowly over time, which will easily overwhelm any interest rate differences. This assumes it's not a Roth 403(b) account; if it is Roth then it doesn't matter.",
"title": ""
}
] |
[
{
"docid": "baf4a66f0886365f9902946fec70f750",
"text": "I am going through this right now. We recently moved and learned the lesson of needing a good bit of wealth in easily accessible accounts. In our case for a down payment on a new house. So we have decided to increase our emergency fund to $50,000.00 minimum. Then throwing the rest in retirement accounts seems like a safe bet. So my rule of thumb is think of how much a 20% down payment would be on a new house if you needed to move. That way you can avoid pmi while also avoiding penalties for withdrawing from your retirement accounts.",
"title": ""
},
{
"docid": "4224baa1404950971eeb2d436c65719a",
"text": "\"The first issue you'll find is that if you aren't going to immediately live in the house as a primary residence, this property counts as a \"\"second home\"\" or \"\"investment property\"\". You'll generally pay a higher interest rate, have a larger down payment, and qualify for less government-backed programs/incentives/subsidies than you would otherwise. The lending criteria on such properties is always more strict - and generally more costly - than an equivalent primary residence. Lenders won't really care that in 10 years you or your parents plan to move in - you can't be held to that, so they'll generally ignore that plan entirely. On a related note, you should be aware that insurance for the property will also generally cost more, but you'd need to get quotes to determine if that is at all significant in your situation. You'll need to talk with a few potential lenders, but from a first read it sounds like it would be best \"\"storied\"\" like so: you and your parents want to buy a 2nd home or vacation home, which you'll share the use of (vacations, etc, and being converted to a primary residence later). It'll need to be clear what plan to use the property for - if you intend to rent out the home in the interim years then instead make that clear and state it will be an investment home; if it is what you are planning it might make it easier, as expected rent for the property will be considered. Saying you want a mortgage for a home no one will live in for a decade probably isn't a good idea, as a general plan anyway. Either way, this can be called a \"\"joint mortgage\"\". When I was a loan officer we didn't use that term, but it's basically just a mortgage application with multiple people on it, all of whom are combined together to qualify for the loan. Everyone's income, debts, assets, and credit get included, which can work or one person's situation can cause the whole thing to collapse. From your description I think this could work for you, and one option is to set it up where only one of the parents is on the application if the other parent has problematic credit situation. Note that his possibility is often restricted by local law, so it may not be an option for you in your jurisdiction, but worth being aware of. An alternative is you just buy the property and the parents gift you the down payment, and you list them as beneficiaries in will/trust in case something happens to you before they retire, but I don't know if that would make any sense in your situation. This is a single applicant mortgage, and it means only you are considered as buying it, which sometimes is the only option depending on your parents current financial situation. It's usually something you try if the other option doesn't work, but it's a fallback plan. Some lenders will allow guarantors (co-signers in US parlance), but this will vary by lender and locale - often what they actually want is a joint mortgage, not really a guarantor/cosigner. Finally, you'll need to plan for what happens if things don't go as planned, regardless of what happens. What if your income changes, if either of your parents become deceased in advance of retirement, if they get a divorced from each other, or if either/both become ill or disabled and need assisted care? Planning for such unpleasant possibilities (even if they seem crazy and not going to happen in your mind right now) can save you all a tremendous amount of heart ache later on when the unexpected (including things I didn't mention) pops up.\"",
"title": ""
},
{
"docid": "53b62a34f0578acb43007f4c1bd73f71",
"text": "To me, the simple answer might be to tap the equity in the $400k home you owe $77k on and use the proceeds to purchase the new retirement home. Even if you were to do that, you'd still have almost $100k in untapped equity in the existing home, no mortgage on the retirement home, nothing out of pocket (other than refi fees), and probably no more of a mortgage payment than you already have on the house with equity. I don't see any reason why the bank wouldn't go for that, especially if you've got a good payment history on your existing mortgage. I hope this helps. Good luck!",
"title": ""
},
{
"docid": "5d46edb721a1d2259a5ece1ede3310f4",
"text": "If you plan to keep this asset for ten years then you can take the deprecation of its cost over that time period. For simplicity lets treat that as 120 monthly payments. So at a purchase price of $60,000 you are committing around $500 per month not including vehicle maintenance. I typically allocate around 20 percent of the purchase price of my vehicles for future maintenance costs. Since you have the cash to purchase this outright you have an option not afforded to most people. This adds for additional consideration. Here is an example. You purchase a $60,000 car and put $10,000 down. You finance $50,000 at 2.84% over 60 months. Your total finance cost is $53,693 if you do not miss any payments. The question here is can you make more than $3,693 on the $50,000 that you would retain in this situation over a five year period? I know that I most certainly can and is an excellent example of why I finance my vehicles. Obviously this all goes out the window if you do not have the credit for top rates. I have also negotiated a vehicle maintenance plan with the dealership at the time of my vehicle purchases. Most dealerships offer this service, the key here is negotiating. On my last truck I was able to get an all inclusive maintenance policy for 72 months for 8% of the purchase price. Your mileage will vary with manufacturer and dealership. As described in the comments above it is never beneficial for an individual to lease. You end up paying more for the newer models. I consider that to be a lifestyle choice as it is most certainly not a sound financial decision.",
"title": ""
},
{
"docid": "fcbcbebeb0e6fc63a5f9ab0ae5e4448e",
"text": "\"Your question isn't great, but I will attempt to answer this piece as it seems really the root of your personal finance question: I want to convince my wife to make this move because it will save us at least 800 month, but she fails to see how buying a second home is financially sound because we have to lose our savings and we have to pay interest on our second home. And... Her logic is it will take almost 5 years to get back our down payment and we have to pay interest as well. So how can this move help our family financially in the long run? ... Is she right? She is mostly wrong. First, consider that there is no \"\"ROI\"\" really on your down payment. Assuming you are paying what your home would sell for the next day, then your \"\"RIO\"\" is already yours (minus realtor fees). She is talking about cash on hand, not ROI. I will use an example without taking into account risk of home markets going down or other risks to ownership. Example: Let's say you pay $2800 a month in mortgage interest+principle at 5.5% apr and $200 a month in taxes+insurance on a $360k loan ($400k house). In this example let's say the same house if you were to rent it is $3800 a month. Understand the Opportunity Cost of renting (the marginal amount it costs you to NOT buy). So far, your opportunity cost is $800 a month. The principle of your house will be increasing with each payment. In our example, it's about $400 for the first payment, and will increase with each payment made while decreasing the interest payment (Suggest you look at an amortization table for your specific mortgage example). So, you're real number is now $1200 a month opportunity cost. Consider also the fact that the $400 a month is sitting in a savings account of sorts. While most savings accounts give you less than 1% in returns and then charge taxes on that gain, your home may (or may not be) much higher than that and won't charge you taxes on the gains when you sell it (If you live in it for a period of time as defined by the IRS.) Let's assume a conservative long term appreciation rate of 3%. That's $12k a year on a $400k house. So, now you're at $2200 a month opportunity cost. In this example I didn't touch on your tax savings of ownership. I also didn't touch on the maintenance cost of ownership or the maintenance cost of renting (your deposit + other fees) which all should be considered. You may have other costs involved in renting. For instance: The cost of not being able to fully utilize your rental as your own house. This may be an even simpler and more convincing way to explain it: On the $2800 mortgage example, you will be paying around $19k in interest and $2400 on taxes, insurance = $23k per year (number could be way different in your example). That is basically throw away money you're never getting back. On the rental, 100% of your rent at $3800 a month is throw away money you're never getting back. That's $45,600 a year.\"",
"title": ""
},
{
"docid": "a4c1779fd37ae3e3d469b29eb9282d49",
"text": "No, it is never impossible to get credit so long as there are no price controls or quotas. In most of the United States, the impetus for housing is so strong that it's one sector of credit that has nearly no price regulation, price in this case being interest rates. Corporate banks will not touch you now because Dodd-Frank now makes them liable to you and investors if you default on the mortgage. Also, Fannie & Freddie, who ultimately finance most mortgages in the US now require banks to buy back loans if they fail, so banks are only financing the most creditworthy. All is not lost because markets are like rivers if not fully dammed: they find a way through. In your case, you can get a fully-financed mortgage if you're willing to pay interest rates probably double what you could otherwise get in the market with good credit. If the foreclosure process is quick and benefits the lender more in your state, the interest rate will be even lower. Your creditors will most likely be individuals you find at mortgage investment clubs and religious institutions. If you shop around, you'll be surprised at how low a rate you might get. Also, since the cost of your prospective home is so low, it's very easy for an investor flush with cash and few investments to take a flier on a mother committed to her children who only needs $50,000. The FHA has been vastly expanded, and since your individual credit is clean, there may be a chance to get financing through it, but be prepared for red tape.",
"title": ""
},
{
"docid": "ba829169ea7a9f59eff7d4d7423f2150",
"text": "\"I don't know about the technicalities of retirement accounts, but I would advise you to please please please do not use retirement money to buy a home. The reason for not ever wanting to spend your retirement is.. when can you make it up? When you retire, you are by definition no longer earning money, so all your expenses can only come from the money you have saved. If you are willing to borrow from your retirement, it is not hard to imagine you are willing are willing to get a new car, or a new barbecue, or a new fishing boat before you repay yourself. So the question to ask yourself is, \"\"can I deal with renting for a few years knowing that I can retire comfortably, or am I willing to risk retirement to have a house now.\"\" Part of the will power it takes to pay yourself first is not taking from your own savings. You cannot count on anybody but yourself to take care of you when you are old. It is just opinion, but risking a comfortable retirement for a home now is not a risk anybody should take.\"",
"title": ""
},
{
"docid": "d9b7a9e4e0ca3011841150d8457efa6a",
"text": "The rules are quite different. There is no special home purchase penalty-free withdrawal. In the case that your account has been open for five years, you can withdraw the principal (but not the earnings) without penalty. You may want to talk to a professional for further details. The real question is: why do you want to borrow against your future to finance your present? Your down payment funds should come from another source than your retirement. Retirement funds should only be touched in the direst financial straights.",
"title": ""
},
{
"docid": "e9736dc511d3b562f2279b7227c40a95",
"text": "There's probably no simple answer, but it's fair to say there are bad times to buy, and better times. If you look at a house and see the rent is more than the mortgage payment, it may be time to consider buying. Right now, the market is depressed, if you buy and plan to stay put, not caring if it drops from here because you plan to be there for the long term, you may find a great deal to be had. Over the long term, housing matches inflation. Sounds crazy, but. Even into the bubble, if you looked at housing in terms of mortgage payment at the prevailing 30yr fixed rate and converted the payment to hours needed to work to make the payment, the 2005 bubble never was. Not at the median, anyway. At today's <5% rate, the mortgage will cost you 3.75% after taxes. And assuming a 3% long term inflation rate, less than 1%. You have expenses, to be sure, property tax, maintenance, etc, but if you fix the mortgage, inflation will eat away at it, and ultimately it's over. At retirement, I'll take a paid for house over rising rents any day.",
"title": ""
},
{
"docid": "a8136e0b36283542987257724559274e",
"text": "\"The standard interpretation of \"\"can I afford to retire\"\" is \"\"can I live on just the income from my savings, never touching the principal.\"\" To estimate that, you need to make reasonable guesses about the return you expect, the rate of inflation, your real costs -- remember to allow for medical emergencies, major house repairs, and the like when determining you average needs, not to mention taxes if this isn't all tax-sheltered! -- and then build in a safety factor. You said liquid assets, and that's correct; you don't want to be forced into a reverse mortgage by anything short of a disaster. An old rule of thumb was that -- properly invested -- you could expect about 4% real return after subtracting inflation. That may or may not still be correct, but it makes an easy starting point. If we take your number of $50k/year (today's dollars) and assume you've included all the tax and contingency amounts, that means your nest egg needs to be 50k/.04, or $1,250,000. (I'm figuring I need at least $1.8M liquid assets to retire.) The $1.5M you gave would, under this set of assumptions, allow drawing up to $60k/year, which gives you some hope that your holdings would mot just maintain themselves but grow, giving you additional buffer against emergencies later. Having said that: some folks have suggested that, given what the market is currently doing, it might be wiser to assume smaller average returns. Or you may make different assumptions about inflation, or want a larger emergency buffer. That's all judgement calls, based on your best guesses about the economy in general and your investments in particular. A good financial advisor (not a broker) will have access to better tools for exploring this, using techniques like monte-carlo simulation to try to estimate both best and worst cases, and can thus give you a somewhat more reliable answer than this rule-of-thumb approach. But that's still probabilities, not promises. Another way to test it: Find out how much an insurance company would want as the price of an open-ended inflation-adjusted $50k-a-year annuity. Making these estimates is their business; if they can't make a good guess, nobody can. Admittedly they're also factoring the odds of your dying early into the mix, but on the other hand they're also planning on making a profit from the deal, so their number might be a reasonable one for \"\"self-insuring\"\" too. Or might not. Or you might decide that it's worth buying an annuity for part or all of this, paying them to absorb the risk. In the end, \"\"ya pays yer money and takes yer cherce.\"\"\"",
"title": ""
},
{
"docid": "533546a8bd52ff06c852c9289bb0573c",
"text": "\"Banks are currently a lot less open to 'creative financing' than they were a few years ago, but you may still be able to take advantage of the tactic of splitting the loan into two parts, a smaller 'second mortgage' sometimes called a 'purchase money second' at a slightly higher interest rate for around 15-20% of the value, and the remaining in a conventional mortgage. Since this tactic has been around for a long time, it's not quite in the category of the shenanegans they were pulling a few years back, so has a lot more potential to still be an option. I did this in for my first house in '93 and again in '99 when I moved to a larger home after getting married. It allowed me to get into both houses with less than 20% down and not pay PMI. This way neither loan is above 80% so you don't have to pay PMI. The interest on the second loan will be higher, but usually only a few percent, and is thus usually a fraction of what you were paying for the PMI. (and it's deductible from your taxes) If you've been making your payments on time and have a good credit rating, then you might be able to find someone who would offer you such a deal. You might even be able to get a rate for your primary that is down in the low 4's depending on where rates are today and what your credit rating is like. If you can get the main loan low enough, even if the other is like say 7%, your blended rate may still be right around 5% If you can find a deal like this, it's also great material to use to negotiate with your current lender \"\"either help me get the PMI off this loan or I'm going to refinance.\"\" Then you can compare what they will offer you with what you can get in a refinance and decide what makes the most sense for you. On word of warning, when refinancing, do NOT get sucked into an adjustable rate mortgage. If you are finding life 'tight' right now with house payments and all, the an ARM could be highly seductive since they often offer a very low initial rate.. however then invariably adjust upwards, and you could suddenly find yourself with a monster payment far larger than what you have now. With low rates where they are, getting a conventional fixed rate loan (or loans in the case of the tactic being discussed here) is the way to go.\"",
"title": ""
},
{
"docid": "da2523eb4bc3dc71b2bdad2079ee2ec5",
"text": "\"Buy and Hope is a common investment strategy. It's also one that will keep you poor. Instead of thinking about saving money to put against a credit card or line of credit using your own job and hard-earned dollars, why not use someone else's money? If you have enough of a down payment for a property of your own, consider a duplex, triplex, or 4-plex where you live in one of the units. Since you will be living there you only need 5% down as opposed to 20% down if you do not live there. This arrangement gives you a place to live while you have other people paying your mortgage and other debts. If done properly, you can find a place that is cash-flow positive so you basically live rent-free. This all assumes you have a down payment and a bank that will work with you. Your best bet is to discuss your situation with a mortgage broker. They know all the rules, and which banks have the best deal for you. A mortgage broker works on your behalf and is paid by the lending institution, not you. There are various caveats with this strategy, and they all revolve around knowing what to do and how to execute the plan. I suggest Googling Robert Kiyosaki and reading \"\"Rich Dad Poor Dad\"\" before taking this journey. He offers a number of free and paid seminars that teach people how to purchase real estate and make it pay. I have taken the free evening seminar and the $500 weekend seminar on how to purchase properties and make money with them. Note that I have no affiliation with Kiyosaki, and I do find his methods to work.\"",
"title": ""
},
{
"docid": "6950d92f340ffdb328d15afac8299aba",
"text": "BLUF: Continue renting, and work toward financial independence, you can always buy later if your situation changes. Owning the house you live in can be a poor investment. It is totally dependent on the housing market where you live. Do the math. The rumors may have depressed the market to the point where the houses are cheaper to buy. When you do the estimate, don't forget any homeowners association fees and periodic replacement of the roof, HVAC system and fencing, and money for repairs of plumbing and electrical systems. Calculate all the replacements as cost over the average lifespan of each system. And the repairs as an average yearly cost. Additionally, consider that remodeling will be needful every 20 years or so. There are also intangibles between owning and renting that can tip the scales no matter what the numbers alone say. Ownership comes with significant opportunity and maintenance costs and is by definition not liquid, but provides stability. As long as you make your payments, and the government doesn't use imminent domain, you cannot be forced to move. Renting gives you freedom from paying for maintenance and repairs on the house and the freedom to move with only a lease to break.",
"title": ""
},
{
"docid": "48afeed212c2d44d7878e3a0f08b085b",
"text": "\"I'd probably say \"\"buy\"\" for most situations. Unless you have a long-term lease, you're going to be saddled with elastic/rising rents if the market tightens up, while with a purchase you usually have fixed expenses (with the exception of property taxes/condo fees) and you are gaining equity. As I've gotten older, the prospect of moving is more and more daunting. The prospect of being essentially kicked out of my home when the landlord decides to sell the property or raise the rent is a turn-off to me.\"",
"title": ""
},
{
"docid": "7ad87a90c0c9695b48710dafc42e7a3b",
"text": "I recognize you are probably somewhere in the middle of various steps here... but I'd start and go through one-by-one in a disciplined way. That helps to cut through the overwhelming torrent of information that's out there. Here is my start at a general checklist: others can feel free to edit it or add their input. How 'much' house would you like to buy in terms of $$$ and bedrooms/sq ft. You can start pretty general here, but the idea is to figure out if you can actually afford a brand new 4bd/3ba 2,500 sq ft house (upwards of $500K in your neck of the woods according to trulia.com). Or maybe with your current resources you'll be looking at something like a townhome that is more entry-level but still yours. Some might recommend that this is a good time to talk to any significant others/whomevers and understand/manage expectations. My wife usually cares a lot about schools at this stage, but I think it's too early. Just ballpark whether you're looking at a $500K house, a $300K house, or a $200K townhome. How much house can you afford in terms of monthly payments only... (not considering other costs like utilities yet). Looking around at calculators like this one from bankrate.com can help you figure this out. Set the interest rate @ 5%, 30-year loan, and change the 'mortgage amount' until you have something that is about 80%-90% of what you currently pay in rent each month. I'll get to 'why' to undershoot your rent payment later. Crap... can't afford my dream house... If you don't have the down payment to make the numbers work (remember that this doesn't even include closing costs yet), there are other loan options like FHA loans that can go as low as about 5% down payment. The math would be the same but you replace 0.8 with 0.95. Then, look at your personal budget. Come up with general estimates of what you currently bring in and spend each month overall. Just ballpark it... Next, figure what you currently spend towards housing in particular. Whether you are paying for it or your landlord is paying for it, someone pays for a lot of different things for housing. For now, my list would include (1) Rent, (2) Mortgage Payment, (3) Electricity, (4) Gas, (5) Sewer, (6) Water, (7) Trash, (8) Other utilities... TV/Internet/Phone, (9) Property Insurance, (10) Renter's Insurance, and (11) Property Taxes. I would put it into a table in Excel somewhere that has 3 columns... The first has the labels, the second will have what you spend now, and the third will have what you might spend on each one as a homeowner. If you pay it now, put it in the second column. If your landlord pays it right now, leave it out as that's included in your rent payment. Obviously each cell won't be filled in. Fill in the rest of the third column. You won't pay rent anymore, but you will have a mortgage payment. You probably have a good estimate of any electricity bills, etc that you currently pay, but those may be slightly higher in a house vs. a condo or an apartment. As for things like sewer, water, trash or other 'community' utilities, my bet would be that your landlord pays for those. If you need a good estimate ask around with some co-workers or friends that own their own places. They would also be a good resource for property insurance estimates... shooting from the hip I would say about $100/month based on this website. (I'm not affiliated). The real 'ouch' is going to be property tax rates. Based on the data from this website, your county is about 9% of property value. So add that into the third column as well. Can you really afford a house? round 2 Now... add up the third column and see how that monthly expense amount on housing compares against your current monthly budget. If it's over, you don't have to give up, but you should just understand how much your decision to purchase a house will strain your budget. Also, you should use this information to look again at 'how much house can you afford.' Now, do some more research. If you need to get a revised loan amount based on the FHA loan decision, then use the bankrate calculator to find out what the monthly payment is for a 95% loan against your target price. But remember that an FHA loan will also carry PMI that is extra on top of your monthly payment. Or, if you need to revise your mortgage payment downwards (or upwards) change the loan amount accordingly. Once you've got the numbers set, look for properties that fit. This way you can have a meaningful discussion with yourself or other stakeholders about what you can afford. As far as arranging financing... a realtor will be able and willing to point you in the right direction for obtaining funding, etc. And at that point you can just check anything you're offered by shopping interest rates, etc against what the internet has to say. Feel free to ask us, too... it's hard to give much better direction without more specifics.",
"title": ""
}
] |
fiqa
|
176b7854f4671a94cccc79d68203502d
|
Where to start with personal finance in Canada?
|
[
{
"docid": "94486c7158fe5681abe710fc46ebb6c2",
"text": "There are some great answers on this site similar to what you asked, with either a non-jurisdictional or a US-centric focus. I would read those answers as well to give yourself more points of view on early investing. There are a few differences between Canada and the US from an investing perspective that you should also then consider, namely tax rules, healthcare, and education. I'll get Healthcare and Education out of the way quickly. Just note the difference in perspective in Canada of having government healthcare; putting money into health-savings plans or focusing on insurance as a workplace benefit is not a key motivating factor, but more a 'nice-to-have'. For education, it is more common in Canada for a student to either pay for school while working summer / part-time jobs, or at least taking on manageable levels of debt [because it is typically not quite as expensive as private colleges in the US]. There is still somewhat of a culture of saving for your child's education here, but it is not as much of a necessity as it may be in the US. From an investing perspective, I will quickly note some common [though not universal] general advice, before getting Canadian specific. I have blatantly stolen the meat of this section from Ben Miller's great answer here: Oversimplify it for me: the correct order of investing Once you have a solid financial footing, some peculiarities of Canadian investing are below. For all the tax-specific plans I'm about to mention, note that the banks do a very good job here of tricking you into believing they are complex, and that you need your hand to be held. I have gotten some criminally bad tax advice from banking reps, so at the risk of sounding prejudiced, I recommend that you learn everything you can beforehand, and only go into your bank when you already know the right answer. The 'account types' themselves just involve a few pages of paperwork to open, and the banks will often do that for free. They make up their fees in offering investment types that earn them management fees once the accounts are created. Be sure to separate the investments (stocks vs bonds etc.) vs the investment vehicles. Canada has 'Tax Free Savings Accounts', where you can contribute a certain amount of money every year, and invest in just about anything you want, from bonds to stocks to mutual funds. Any Income you earn in this account is completely tax free. You can withdraw these investments any time you want, but you can't re-contribute until January 1st of next year. ie: you invest $5k today in stocks held in a TFSA, and they grow to $6k. You withdraw $6k in July. No tax is involved. On January 1st next year, you can re-contribute a new $6K, and also any additional amounts added to your total limit annually. TFSA's are good for short-term liquid investments. If you don't know for sure when you'll need the money, putting it in a TFSA saves you some tax, but doesn't commit you to any specific plan of action. Registered Retirement Savings Plans allow you to contribute money based on your employment income accrued over your lifetime in Canada. The contributions are deducted from your taxable income in the year you make them. When you withdraw money from your RRSP, the amount you withdraw gets added as additional income in that year. ie: you invest $5k today in stocks held in an RRSP, and get a $5k deduction from your taxable income this year. The investments grow to $6k. You withdraw $6k next year. Your taxable income increases by $6k [note that if the investments were held 'normally' {outside of an RRSP}, you would have a taxable gain of only 50% of the total gain; but withdrawing the amount from your RRSP makes the gain 100% taxable]. On January 1st next year, you CANNOT recontribute this amount. Once withdrawn, it cannot be recontributed [except for below items]. RRSP's are good for long-term investing for retirement. There are a few factors at play here: (1) you get an immediate tax deduction, thus increasing the original size of investment by deferring tax to the withdrawal date; (2) your investments compound tax-free [you only pay tax at the end when you withdraw, not annually on earnings]; and (3) many people expect that they will have a lower tax-rate when they retire, than they do today. Some warnings about RRSP's: (1) They are less liquid than TFSA's; you can't put money in, take it out, and put it in again. In general, when you take it out, it's out, and therefore useless unless you leave it in for a long time; (2) Income gets re-characterized to be fully taxable [no dividend tax credits, no reduced capital gains tax rate]; and (3) There is no guarantee that your tax rate on retirement will be less than today. If you contribute only when your tax rate is in the top bracket, then this is a good bet, but even still, in 30 years, tax rates might rise by 20% [who knows?], meaning you could end up paying more tax on the back-end, than you saved in the short term. Home Buyer Plan RRSP withdrawals My single favourite piece of advice for young Canadians is this: if you contribute to an RRSP at least 3 months before you make a down payment on your first house, you can withdraw up to $25k from your RRSP without paying tax! to use for the down payment. Then over the next ~10 years, you need to recontribute money back to your RRSP, and you will ultimately be taxed when you finally take the money out at retirement. This means that contributing up to 25k to an RRSP can multiply your savings available for a down payment, by the amount of your tax rate. So if you make ~60k, you'll save ~35% on your 25k deposited, turning your down payment into $33,750. Getting immediate access to the tax savings while also having access to the cash for a downpayment, makes the Home Buyer Plan a solid way to make the most out of your RRSP, as long as one of your near-term goals is to own your own home. Registered Pension Plans are even less liquid than RRSPs. Tax-wise, they basically work the same: you get a deduction in the year you contribute, and are taxed when you withdraw. The big difference is that there are rules on when you are allowed to withdraw: only in retirement [barring specific circumstances]. Typically your employer's matching program (if you have one) will be inside of an RPP. Note that RPP's and RRSP's reduce your taxes on your employment paycheques immediately, if you contribute through a work program. That means you get the tax savings during the year, instead of all at once a year later on April 30th. *Note that I have attempted at all times to keep my advice current with applicable tax legislation, but I do not guarantee accuracy. Research these things yourself because I may have missed something relevant to your situation, I may be just plain wrong, and tax law may have changed since I wrote this to when you read it.",
"title": ""
}
] |
[
{
"docid": "c05926a5cd70e78245f8f52bec13e4d2",
"text": "\"As user quid states in his answer, all you need to do is open an account with a stock broker in order to gain access to the world's stock markets. If you are currently banking with one of the six big bank, then they will offer stockbroking services. You can shop around for the best commission rates. If you wish to manage your own investments, then you will open a \"\"self-directed\"\" account. You can shelter your investments from all taxation by opening a TFSA account with your stock broker. Currently, you can add $5,500 per year to your TFSA. Unused allowances from previous years can still be used. Thus, if you have not yet made any TFSA contributions, you can add upto $46,500 to your TFSA and enjoy the benefits of tax free investing. Investing in what you are calling \"\"unmanaged index funds\"\" means investing in ETFs (Exchange Traded Funds). Once you have opened your account you can invest in any ETFs traded on the stock markets accessible through your stock broker. Buying shares on foreign markets may carry higher commission rates, but for the US markets commissions are generally the same as they are for Canadian markets. However, in the case of buying foreign shares you will carry the extra cost and risk of selling Canadian dollars and buying foreign currency. There are also issues to do with foreign withholding taxes when you trade foreign shares directly. In the case of the US, you will also need to register with the US tax authorities. Foreign withholding taxes payable are generally treated as a tax credit with respect to Canadian taxation, so you will not be double taxed. In today's market, for most investors there is generally no need to invest directly in foreign market indices since you can do so indirectly on the Toronto stock market. The large Canadian ETF providers offer a wide range of US, European, Asian, and Global ETFs as well as Canadian ETFs. For example, you can track all of the major US indices by trading in Toronto in Canadian dollars. The S&P500, the Dow Jones, and the NASDAQ100 are offered in both \"\"currency hedged\"\" and \"\"unhedged\"\" forms. In addition, there are ETFs on the total US Market, US Small Caps, US sectors such as banks, and more exotic ETFs such as those offering \"\"covered call\"\" strategies and \"\"put write\"\" strategies. Here is a link to the BMO ETF website. Here is a link to the iShares (Canada) ETF website.\"",
"title": ""
},
{
"docid": "1b56332284074941947f1f4196a9f43a",
"text": "\"I don't know Canada very well, but can offer some general points when considering where to park your emergency fund. Savings rates are currently low, but then so is inflation. Always bear in mind that inflation decreases the value of your money, so if you're getting 4% interest and inflation is 2%, you're making 2% gross in real terms. If you're getting 2% and inflation is close to zero, you're actually earning a similar amount, it's just the numbers are going up more slowly. Obviously when and how much tax you pay affects the actual return, it's just worth bearing in mind that low interest and low inflation are actually not that bad a savings environment as they first appear. For an emergency fund the key thing is ease of access, consider keeping some portion of your savings in an instant access account for those emergencies that happen when the banks are closed. In the UK there are various tax-free savings options, I'm guessing Canada has a few too, if so you should explore those options. While these may not have attractive headline rates, you don't pay tax on the interest, this can make them much more competitive (4% tax free is the same as 5% gross if you would have to pay tax at 20%). Normally tax free investments have caps so once you've invested a set amount you can't add anymore. This may be a consideration if you regularly dip into your emergency fund as you might not easily be able to build it up again. My approach is to have about 90% of my \"\"rainy day\"\" fund in easily accessible but tax free savings. This discourages me from spending it unless I really need to. I then keep a slush fund sufficient to cover every day disasters (boiler packing up, needing a hire car for a week etc) in instant access accounts .\"",
"title": ""
},
{
"docid": "9268699a8e454c4bfa37870d0f661398",
"text": "If you just want to save for retirement, start with a financial planning book, like this one: http://www.amazon.com/Smart-Simple-Financial-Strategies-People/dp/0743269942 and here's my editorial on the investing part: http://blog.ometer.com/2010/11/10/take-risks-in-life-for-savings-choose-a-balanced-fund/ If you're thinking of spending time stock-picking or trading for fun, then there are lots of options. Web site: Morningstar Premium (http://morningstar.com) has very good information. They analyze almost all large-cap stocks and some small caps too, plus mutual funds and ETFs, and have some good general information articles. It doesn't have the sales-pitch hot-blooded tone of most other sites. Morningstar analyzes companies from a value investing point of view which is probably what you want unless you're day trading. Also they analyze funds, which are probably the most practical investment. Books: If you want to be competent (in the sense that a professional investor trying to beat the market or control risk vs. the market would be) then I thought the CFA curriculum was pretty good: However, this will quickly teach you how much is involved in being competent. The level 1 curriculum when I did it was 6 or 7 thick textbooks, equivalent to probably a college semester courseload. I didn't do level 2 or 3. I don't think level 1 was enough to become competent, it's just enough to learn what you don't know. The actual CFA charter requires all three levels and years of work experience. If you more want to dabble, then Benjamin Graham's The Intelligent Investor certainly isn't a bad place to start, but you'd also want to read some efficient markets stuff (Random Walk Down Wall Street, or something by Bogle, or The Intelligent Asset Allocator http://www.amazon.com/Intelligent-Asset-Allocator-Portfolio-Maximize/dp/0071362363, are some options). It wouldn't be bad to just read a textbook like http://www.amazon.com/Investments-Irwin-Finance-Zvi-Bodie/dp/0256146381 which would be the much-abridged version of the CFA level 1 stuff. If you're into day trading / charting, then I don't know much about that at all, some of the other answers may have some ideas. I've never been able to find info on this that didn't seem like it had a sketchy sales pitch kind of vibe. Honestly in a world of high-frequency trading computers I'm skeptical this is something to get into. Unless you want to program HFT computers: http://howtohft.wordpress.com/",
"title": ""
},
{
"docid": "7ec5dc1438ba1aafda40e08231cb4cd1",
"text": "Actually there has been lots of talk around using a TFSA (Tax Free Savings Account) in Canada for just that purpose. A TFSA allows you: This blog makes some good points about exactly that: The bestest thing about the TFSA is its flexibility. You can take money out of your TFSA at any time for any purpose, without losing the contribution room, which makes this account the number one choice for socking away an emergency fund. So even if you take money out in one year, you can put it back the next, without affecting that year’s $5,000 contribution limit.",
"title": ""
},
{
"docid": "2ccdf1e5dd46c8433b4bc98d3814f4ea",
"text": "We don't have a good answer for how to start investing in poland. We do have good answers for the more general case, which should also work in Poland. E.g. Best way to start investing, for a young person just starting their career? This answer provides a checklist of things to do. Let's see how you're doing: Match on work pension plan. You don't mention this. May not apply in Poland, but ask around in case it does. Given your income, you should be doing this if it's available. Emergency savings. You have plenty. Either six months of spending or six months of income. Make sure that you maintain this. Don't let us talk you into putting all your money in better long term investments. High interest debt. You don't have any. Keep up the good work. Avoid PMI on mortgage. As I understand it, you don't have a mortgage. If you did, you should probably pay it off. Not sure if PMI is an issue in Poland. Roth IRA. Not sure if this is an issue in Poland. A personal retirement account in the US. Additional 401k. A reminder to max out whatever your work pension plan allows. The name here is specific to the United States. You should be doing this in whatever form is available. After that, I disagree with the options. I also disagree with the order a bit, but the basic idea is sound: one time opportunities; emergency savings; eliminate debt; maximize retirement savings. Check with a tax accountant so as not to make easily avoidable tax mistakes. You can use some of the additional money for things like real estate or a business. Try to keep under 20% for each. But if you don't want to worry about that kind of stuff, it's not that important. There's a certain amount of effort to maintain either of those options. If you don't want to put in the effort to do that, it makes sense not to do this. If you have additional money split the bulk of it between stock and bond index funds. You want to maintain a mix between about 70/30 and 75/25 stocks to bonds. The index funds should be based on broad indexes. They probably should be European wide for the most part, although for stocks you might put 10% or so in a Polish fund and another 15% in a true international fund. Think over your retirement plans. Where do you want to live? In your current apartment? In a different apartment in the same city? In one of the places where you inherited property? Somewhere else entirely? Also, do you like to vacation in that same place? Consider buying a place in the appropriate location now (or keeping the one you have if it's one of the inherited properties). You can always rent it out until then. Many realtors are willing to handle the details for you. If the place that you want to retire also works for vacations, consider short term rentals of a place that you buy. Then you can reserve your vacation times while having rentals pay for maintenance the rest of the year. As to the stuff that you have now: Look that over and see if you want any of it. You also might check if there are any other family members that might be interested. E.g. cousins, aunts, uncles, etc. If not, you can probably sell it to a professional company that handles estate sales. Make sure that they clear out any junk along with the valuable stuff. Consider keeping furniture for now. Sometimes it can help sell a property. You might check if you want to drive either of them. If not, the same applies, check family first. Otherwise, someone will buy them, perhaps on consignment (they sell for a commission rather than buying and reselling). There's no hurry to sell these. Think over whether you might want them. Consider if they hold any sentimental value to you or someone else. If not, sell them. If there's any difficulty finding a buyer, consider renting them out. You can also rent them out if you want time to make a decision. Don't leave them empty too long. There's maintenance that may need done, e.g. heat to keep water from freezing in the pipes. That's easy, just invest that. I wouldn't get in too much of a hurry to donate to charity. You can always do that later. And try to donate anonymously if you can. Donating often leads to spam, where they try to get you to donate more.",
"title": ""
},
{
"docid": "f47bdeb2d0972bb69521a13551d181af",
"text": "\"You don't state where you are, so any answers to this will by necessity be very general in nature. How many bank accounts should I have and what kinds You should have one transaction account and one savings account. You can get by with just a single transaction account, but I really don't recommend that. These are referred to with different names in different jurisdictions, but the basic idea is that you have one account where money is going in and out (the transaction account), and one where money goes in and stays (the savings account). You can then later on, as you discover various needs, build on top of that basic foundation. For example, I have separate accounts for each source of money that comes into my personal finances, which makes things much easier when I sit down to fill out the tax forms up to almost a year and a half later, but also adds a bit of complexity. For me, that simplicity at tax time is worth the additional complexity; for someone just starting out, it might not be. (And of course, it is completely unnecessary if you have only one source of taxable income and no other specific reason to separate income streams.) how much (percentage-wise) of my income should I put into each one? With a single transaction account, your entire income will be going into that account. Having a single account to pay money into will also make life easier for your employer. You will then have to work out a budget that says how much you plan to spend on food, shelter, savings, and so on. how do I portion them out into budgets and savings? If you have no idea where to start, but have an appropriate financial history (as opposed to just now moving into a household of your own), bring out some old account statements and categorize each line item in a way that makes sense to you. Don't be too specific; four or five categories will probably be plenty. These are categories like \"\"living expenses\"\" (rent, electricity, utilities, ...), \"\"food and eating out\"\" (everything you put in your mouth), \"\"savings\"\" (don't forget to subtract what you take out of savings), and so on. This will be your initial budget. If you have no financial history, you are probably quite young and just moving out from living with your parents. Ask them how much might be reasonable in your area to spend on basic food, a place to live, and so on. Use those numbers as a starting point for a budget of your own, but don't take them as absolute truths. Always have a \"\"miscellaneous expenses\"\" or \"\"other\"\" line in your budget. There will always be expenses that you didn't plan for, and/or which don't neatly fall into any other category. Allocate a reasonable sum of money to this category. This should be where you take money from during a normal month when you overshoot in some budget category; your savings should be a last resort, not something you tap into on a regular basis. (If you find yourself needing to tap into your savings on a regular basis, adjust your budget accordingly.) Figure out based on your projected expenses and income how much you can reasonably set aside and not touch. It's impossible for us to say exactly how much this will be. Some people have trouble setting aside 5% of their income on a regular basis without touching it; others easily manage to save over 50% of their income. Don't worry if this turns out a small amount at first. Get in touch with your bank and set up an automatic transfer from your transaction account to the savings account, set to recur each and every time you get paid (you may want to allow a day or two of margin to ensure that the money has arrived in your account before it gets taken out), of the amount you determined that you can save on a regular basis. Then, try to forget that this money ever makes it into your finances. This is often referred to as the \"\"pay yourself first\"\" principle. You won't hit your budget exactly every month. Nobody does. In fact, it's more likely that no month will have you hit the budget exactly. Try to stay under your budgeted expenses, and when you get your next pay, unless you have a large bill coming up soon, transfer whatever remains into your savings account. Spend some time at the end of each month looking back at how well you managed to match your budget, and make any necessary adjustments. If you do this regularly, it won't take very long, and it will greatly increase the value of the budget you have made. Should I use credit cards for spending to reap benefits? Only if you would have made those purchases anyway, and have the money on hand to pay the bill in full when it comes due. Using credit cards to pay for things is a great convenience in many cases. Using credit cards to pay for things that you couldn't pay for using cash instead, is a recipe for financial disaster. People have also mentioned investment accounts, brokerage accounts, etc. This is good to have in mind, but in my opinion, the exact \"\"savings vehicle\"\" (type of place where you put the money) is a lot less important than getting into the habit of saving regularly and not touching that money. That is why I recommend just a savings account: if you miscalculate, forgot a large bill coming up, or for any other (good!) reason need access to the money, it won't be at a time when the investment has dropped 15% in value and you face a large penalty for withdrawing from your retirement savings. Once you have a good understanding of how much you are able to save reliably, you can divert a portion of that into other savings vehicles, including retirement savings. In fact, at that point, you probably should. Also, I suggest making a list of every single bill you pay regularly, its amount, when you paid it last time, and when you expect the next one to be due. Some bills are easy to predict (\"\"$234 rent is due the 1st of every month\"\"), and some are more difficult (\"\"the electricity bill is due on the 15th of the month after I use the electricity, but the amount due varies greatly from month to month\"\"). This isn't to know exactly how much you will have to pay, but to ensure that you aren't surprised by a bill that you didn't expect.\"",
"title": ""
},
{
"docid": "ce98800ddfa4c44fe836bcef62c53ab0",
"text": "\"The primary tax-sheltered investing vehicles in Canada include: The RRSP. You can contribute up to 18% of your prior year's earned income, up to a limit ($24,930 in 2015, plus past unused contribution allowance) and receive an income tax deduction for your contributions. In an RRSP, investments grow on a tax-deferred basis. No tax is due until you begin withdrawals. When you withdraw funds, the withdrawn amount will be taxed at marginal income tax rates in effect at that time. The RRSP is similar to the U.S. \"\"traditional\"\" IRA, being an individual account with pre-tax contributions, tax-deferred growth, and ordinary tax rates applied to withdrawals. Yet, RRSPs have contribution limits higher than IRAs; higher, even, than U.S. 401(k) employee contribution limits. But, the RRSP is dissimilar to the IRA and 401(k) since an individual's annual contribution allowance isn't use-it-or-lose-it—unused allowance accumulates. The TFSA. Once you turn 18, you can put in up to $5,500 each year, irrespective of earned income. Like the RRSP, contribution room accumulates. If you were 18 in 2009 (when TFSAs were introduced) you'd be able to contribute $36,500 if you'd never contributed to one before. Unlike the RRSP, contributions to a TFSA are made on an after-tax basis and you pay no tax when you withdraw money. The post-tax nature of the TFSA and completely tax-free withdrawals makes them comparable to Roth-type accounts in the U.S.; i.e. while you won't get a tax deduction for contributing, you won't pay tax on earnings when withdrawn. Yet, unlike U.S. Roth-type accounts, you are not required to use the TFSA strictly for retirement savings—there is no penalty for pre-retirement withdrawal of TFSA funds. There are also employer-sponsored defined benefit (DB) and defined contribution (DC) retirement pension plans. Generally, employees who participate in these kinds of plans have their annual RRSP contribution limits reduced. I won't comment on these kinds of plans other than to say they exist and if your employer has one, check it out—many employees lose out on free money by not participating. The under-appreciated RESP. Typically used for education savings. A lifetime $50,000 contribution limit per beneficiary, and you can put that all in at once if you're not concerned about maximizing grants (see below). No tax deduction for contributions, but investments grow on a tax-deferred basis. Original contributions can be withdrawn tax-free. Qualified educational withdrawals of earnings are taxed as regular income in the hands of the beneficiary. An RESP beneficiary is typically a child, and in a child's case the Canadian federal government provides matching grant money (called CESG) of 20% on the first $2500 contributed each year, up to age 18, to a lifetime maximum of $7200 per beneficiary. Grant money is subject to additional conditions for withdrawal. While RESPs are typically used to save for a child's future education, there's nothing stopping an adult from opening an RESP for himself. If you've never had one, you can deposit $50,000 of after-tax money to grow on a tax-deferred basis for up to 36 years ... as far as I understand. An adult RESP will not qualify for CESG. Moreover, if you use the RESP strictly as a tax shelter and don't make qualified educational withdrawals when the time comes, your original contributions still come out free of tax but you'll pay ordinary income tax plus 20% additional tax on the earnings portion. That's the \"\"catch\"\"*. *However, if at that time you have accumulated sufficient RRSP contribution room, you may move up to $50,000 of your RESP earnings into your RRSP without any tax consequences (i.e. also avoiding the 20% additional tax) at time of transfer. Perhaps there's something above you haven't considered. Still, be sure to do your own due diligence and to consult a qualified, experienced, and conflict-free financial advisor for advice particular to your own situation.\"",
"title": ""
},
{
"docid": "17f422763da7c98daaef8a2982acbe14",
"text": "This is what helped me. - I did my own taxes - get your own job, not from your parents, or parents friends, but entirely by yourself. Complete independence will equate to financial independence - Wikipedia (for specifics and definitions) paired with finance genre movies - audiobook, or YouTube video, 'why an economy grows, and why it doesnt' That's a good start. Good luck! Don't be too gung ho to invest and all that crap, you got lots too learn. Rule 1: don't be too eager, that's how you lose all your money! My best financial investments to date were: 1) my education (engineering) 2) I didn't pay my student loan off, instead, I bought a property, and I made $70,000 in 8 months off of one, and $100,000 off of another one in 2 years, 3) still making minimum payments on my student loan, a dollar today is worth more than a dollar tomorrow 4) pack my own lunches every day, eating out every meal ends up costing more than most mortgage payments. This is in Vancouver BC, Canada.",
"title": ""
},
{
"docid": "ef3df544d40cefb5109c5334ffe89341",
"text": "Can you wait until you retire before needing the money? Will you buy your first house sometime in the future? If yes, then favour an RRSP. Remember that you are rewarded by paying less tax for having the foresight and commitment to defer income taxes until your retirement, when you are presumably earning less income. Are your household expenses higher than 28% of your gross income? 35% of your net income? Does making your mortgage payments stress you? Are interest rates lower than their historical norm and an increase would cause you difficulty? If yes, then favour your mortgage. Do you need this money before your retire? Does your TFSA earn more interest than your mortgage costs your? If yes, then favour a TFSA. Does an alternative investment earn more than your TFSA? Can you handle an uptick in your mortgage interest rate? If yes, then favour the alternative investment and not your RRSP, mortgage or TFSA.",
"title": ""
},
{
"docid": "d0dc5fa4905cb40edf4151ebb4465f9b",
"text": "\"I've never invested in penny stocks. My #1 investing rule, buy what you know and use. People get burned because they hear about the next big thing, go invest! to just end up losing everything because they have no clue in what they're investing in. From what I've found, until you have minimum of $5k to invest, put everything in a single investment. The reason for this, as others have mentioned, is that commissions eat up just about all your profits. My opinion, don't put it in a bond, returns are garbage right now - however they are \"\"safe\"\". Because this is $1000 we're talking about and not your life savings, put it in a equity like a stock to try and maximize your return. I aim for 15% returns on stocks and can generally achieve 10-15% consistently. The problem is when you get greedy and keep thinking it will go above once you're at 10-15%. Sell it. Sell it right away :) If it drops down -15% you have to be willing to accept that risk. The nice thing is that you can wait it out. I try to put a 3 month time frame on things I buy to make money. Once you start getting a more sizable chunk of money to play around with you should start to diversify. In Canada at least, once you have a trading account with a decent size investment the commissions get reduced to like $10 a trade. With your consistent 10% returns and additional savings you'll start to build up your portfolio. Keep at it and best of luck!\"",
"title": ""
},
{
"docid": "42ca73dfd3632949047be4a350b2a169",
"text": "Wikipedia has a nice definition of financial literacy (emphasis below is mine): [...] refers to an individual's ability to make informed judgments and effective decisions about the use and management of their money. Raising interest in personal finance is now a focus of state-run programs in countries including Australia, Japan, the United States and the UK. [...] As for how you can become financially literate, here are some suggestions: Learn about how basic financial products works: bank accounts, mortgages, credit cards, investment accounts, insurance (home, car, life, disability, medical.) Free printed & online materials should be available from your existing financial service providers to help you with your existing products. In particular, learn about the fees, interest, or other charges you may incur with these products. Becoming fee-aware is a step towards financial literacy, since financially literate people compare costs. Seek out additional information on each type of product from unbiased sources (i.e. sources not trying to sell you something.) Get out of debt and stay out of debt. This may take a while. Focus on your highest-interest loans first. Learn the difference between good debt and bad debt. Learn about compound interest. Once you understand compound interest, you'll understand why being in debt is bad for your financial well-being. If you aren't already saving money for retirement, start now. Investigate whether your employer offers an advantageous matched 401(k) plan (or group RRSP/DC plan for Canadians) or a pension plan. If your employer offers a good plan, sign up. If you get to choose your own investments, keep it simple and favor low-cost balanced index funds until you understand the different types of investments. Read the material provided by the plan sponsor, try online tools provided, and seek out additional information from unbiased sources. If your employer doesn't offer an advantageous retirement plan, open an individual retirement account or IRA (or personal RRSP for Canadians.) If your employer does offer a plan, you can set one of these up to save even more. You could start with access to a family of low-cost mutual funds (examples: Vanguard for Americans, or TD eFunds for Canadians) or earn advanced credit by learning about discount brokers and self-directed accounts. Understand how income taxes and other taxes work. If you have an accountant prepare your taxes, ask questions. If you prepare your taxes yourself, understand what you're doing and don't file blind. Seek help if necessary. There are many good books on how income tax works. Software packages that help you self-file often have online help worth reading – read it. Learn about life insurance, medical insurance, disability insurance, wills, living wills & powers of attorney, and estate planning. Death and illness can derail your family's finances. Learn how these things can help. Seek out and read key books on personal finance topics. e.g. Your Money Or Your Life, Why Smart People Make Big Money Mistakes, The Four Pillars of Investing, The Random Walk Guide to Investing, and many more. Seek out and read good personal finance blogs. There's a wealth of information available for free on the Internet, but do check facts and assumptions. Here are some suggested blogs for American readers and some suggested blogs for Canadian readers. Subscribe to a personal finance periodical and read it. Good ones to start with are Kiplinger's Personal Finance Magazine in the U.S. and MoneySense Magazine in Canada. The business section in your local newspaper may sometimes have personal finance articles worth reading, too. Shameless plug: Ask more questions on this site. The Personal Finance & Money Stack Exchange is here to help you learn about money & finance, so you can make better financial decisions. We're all here to learn and help others learn about money. Keep learning!",
"title": ""
},
{
"docid": "26b37f71f94754dec7bfa1c9bcb2a39f",
"text": "I had this problem when I finished my job in Canada in Sept 2013. You'll likely have to open the account in person in Canada, at least if you don't already have a relationship with a broker there. DO NOT go to Virtual Brokers. They told me that my US citizenship was no problem, but right before I left Canada to double check. It wasn't until I asked specifically which US states they were licensed in that they realized they were licensed in NO US STATES. They told me that they'd freeze my account when I left. I then moved my (former) pension to a locked-in RRSP at BMO. As of September 2010 BMO could handle residents of most US states, but it took some tooth pulling to get the list out of them. However, after I flew to the USA, BMO called to demand more ID. My account was frozen until I flew back to Canada in person just to show ID. Annoyed, I closed the BMO account and moved it to TD Waterhouse. TD waterhouse can handle accounts for residents of all the US states EXCEPT Virginia, Louisiana, and Nebraska. (I only got the complete list of exceptions when I made my first trade, since the guys at the trading desk are much more knowledgeable about such things than the guys in the branch.) TD was extremely friendly about my USA citizenship/residence. (Many Canadian brokers simply won't accept US residents, at least as of the end of 2013.) Whichever broker you choose, BRING LOTS MORE ID than they require. Insist that they zerox it all. Make sure to include your social security card. You don't want them to demand more ID after you've left the country, like BMO did. They may even make such a move simply to get rid of US customers, because the FATCA is a pain for foreign banks.",
"title": ""
},
{
"docid": "32ac818960c21a78d7a83f46630da254",
"text": "I don't know about down there but up here in Canada, unless those companies have some track history, you ARE personally responsible. Or at least that's how I remember it; someone feel free to correct me... (Unless you were wise enough and had enough capital to begin with a shell company)",
"title": ""
},
{
"docid": "c01f6134cede65f12425fb5a39d1ce54",
"text": "1) The easy way is to find a job and they will assign you an SSN. 2) Here's the hard way. If you're Canadian, open a TD Boarderless account in the U.S. Put a small investment into any investment that would generate some type of income, such as capital gain, dividends, interest and etc... Then you will need to file a US tax return to declare your income if you receive U.S. tax slips (although you're likely below the min filing requirement) at year end. To file a U.S. tax return, you may need what's called an ITIN or individual tax id number. With the ITIN, you can get credit from the US TD boarderless account (only). Consider getting a prepaid US credit card with the TD account to futher build credit at that specific bank. It's not much credit, but you do start with creating a history.",
"title": ""
},
{
"docid": "fda5f5c4f7c382202bb5fab7941277f4",
"text": "\"The Financial Consumer Agency of Canada (FCAC) has a page specifically about working with a financial planner or advisor. It's a good starting point if you are thinking about getting a financial professional to help you plan and manage your investments. In the \"\"Where To Look\"\" section on that page, FCAC refers to a handful of industry associations. I'll specifically highlight the Financial Planning Standards Council's \"\"Find a planner\"\" page, which can help you locate a Certified Financial Planner (CFP). Choose financial advice carefully. Prefer certified professionals who charge a set fee for service over advisors who work on commission to push investment products. Commission-based advice is seldom unbiased. MoneySense magazine published a listing last year for where to find a fee-only financial planner, calling it \"\"The most comprehensive listing of Canadian fee-only financial planners on the web\"\" — but do note the caveat (near the bottom of the page) that the individuals & firms have not been screened. Do your own due diligence and check references.\"",
"title": ""
}
] |
fiqa
|
62e73af1ddaa45968d09b4bbf13218f4
|
Getting live data from Yahoo! Finance for the National Stock Exchange of India (NSE)?
|
[
{
"docid": "9bd6c9487986c28f0e9fc0e9a7a2627c",
"text": "I wouldn't think so. If you read the list of features listed on the page you referred to, notice: Track Stocks It looks like it is restricted to the major U.S. stock markets. No mention of India's NSE.",
"title": ""
}
] |
[
{
"docid": "402212bfb569a8f87f74352254c9928e",
"text": "Yahoo's primary business isn't providing mutual fund performance data. They aim to be convenient, but often leave something to be desired in terms of completeness. Try Morningstar instead. Their mission is investment research. Here's a link to Morningstar's data for the fund you specified. If you scroll down, you'll see:",
"title": ""
},
{
"docid": "39e680ba097f0ffc975fb39a29e5dcd0",
"text": "Check the answers to this Stackoverflow question https://stackoverflow.com/questions/754593/source-of-historical-stock-data a number of potential sources are listed",
"title": ""
},
{
"docid": "6e1a49099026facd9c7a976bb9804035",
"text": "I searched for FTSE 100 fund on Yahoo Finance and found POW FTSE RAF UK 100 (PSRU.L), among many others. Google Finance is another possible source that immediately comes to mind.",
"title": ""
},
{
"docid": "0abcd449cae2ed7664022837ddd01ced",
"text": "\"Google's RSI is using a 10 period on 2 minute bars - i.e. it is based upon the last 20 minutes of data. Yahoo's RSI is using a 14 period lookback on an undetermined timeframe (you could maybe mouse-over and see what incremental part of the chart is giving) and given the \"\"choppier\"\" price chart, probably 30 second or 1 minute bars. Given the difference in both the period specified and the periodicity of the charts - you should expect different results.\"",
"title": ""
},
{
"docid": "007ae90ae22f4b3fdc02e55709c5873c",
"text": "You might what to check out Interactive Brokers. If your India stock is NSE listed they might be able to do it since they support trading on that exchange. I would talk to a customer service rep there first. https://www.interactivebrokers.com/en/index.php?f=exchanges&p=asia",
"title": ""
},
{
"docid": "7602775b21de86391db58f419dad795a",
"text": "Since I've been doing this since late 03 I have colo machines in Chicago and NYC, and have direct exchange data feeds etc. I mentioned in a prior post though, for someone starting out on algorithmic trading, I'd recommend Nanex for tick data and Interactive Brokers for your brokerage account. IB has a robust and easy to use API. It won't let you do the most low latency stuff bc you can't colo at the exchange and have to clear through their order management systems but if you are looking at opportunities that exist in the market in excess of 50ms it's probably a good place to start. If not, go Lightspeed imo, but that'll cost you on the colo/data a lot more.",
"title": ""
},
{
"docid": "e72fec842579c94379154c5c9e31b87d",
"text": "IESC has a one-time, non-repeatable event in its operating income stream. It magnifies operating income by about a factor of five. It impacts both the numerator and the denominator. Without knowing exactly how the adjustments are made it would take too much work for me to calculate it exactly, but I did get close to their number using a relatively crude adjustment rule. Basically, Yahoo is excluding one-time events from its definitions since, although they are classified as operating events, they distort the financial record. I teach securities analysis and have done it as a profession. If I had to choose between Yahoo and Marketwatch, at least for this security, I would clearly choose Yahoo.",
"title": ""
},
{
"docid": "3befa06aff1f9bdd4c44321420a6f7d0",
"text": "Options - yes we can :) Options tickers on Yahoo! Finance will be displayed as per new options symbology announced by OCC. The basic parts of new option symbol are: Root symbol + Expiration Year(yy)+ Expiration Month(mm)+ Expiration Day(dd) + Call/Put Indicator (C or P) + Strike price Ex.: AAPL January 19 2013, Put 615 would be AAPL130119P00615000 http://finance.yahoo.com/q?s=AAPL130119P00615000&ql=1 Futures - yes as well (: Ex.: 6A.M12.E would be 6AM12.CME using Yahoo Finance symbology. (simple as that, try it out) Get your major futures symbols from here: http://quotes.ino.com/exchanges/exchange.html?e=CME",
"title": ""
},
{
"docid": "307fc0322c1cc6b4e936b694408c617b",
"text": "Generally Google gets their data, directly from the exchanges (Nasdaq, NYSE). This is really expensive -- tens of thousands of dollars a month just for the license from the exchange, and lots of telecom costs on top of that.",
"title": ""
},
{
"docid": "c974fce2e0de21ef5938bef66aad614f",
"text": "\"Using your example link, I found the corresponding chart for a stock that trades on London Stock Exchange: https://ca.finance.yahoo.com/echarts?s=RIO.L#symbol=RIO.L;range=1d As you can see there, the chart runs from ~8:00am to ~4:30pm, and as I write this post it is only 2:14pm Eastern Time. So clearly this foreign chart is using a foreign time zone. And as you can see from this Wikipedia page, those hours are exactly the London Stock Exchange's hours. Additionally, the closing price listed above the graph has a timestamp of \"\"11:35AM EST\"\", meaning that the rightmost timestamp in the graph (~4:30pm) is equal to 11:35AM EST. 16:30 - 11:30 = 5 hours = difference between London and New York at this time of year. So those are two data points showing that Yahoo uses the exchange's native time zone when displaying these charts.\"",
"title": ""
},
{
"docid": "9d9cfa352ce07f9aa89d06d2a710373e",
"text": "I don't see it in any of the exchange feeds I've gone through, including the SIPs. Not sure if there's something wrong with Nasdaq Last Sale (I don't have that feed) but it should be putting out the exact same data as ITCH.",
"title": ""
},
{
"docid": "1853960b1c7da6cdde6a9175cc4b18fe",
"text": "You can pull up the VIX index on Google Finance by entering INDEXCBOE:VIX",
"title": ""
},
{
"docid": "3cf0e38a9490502c906628977ecba626",
"text": "Under construction, but here's what I have so far: Schwab Data from 1970-2012: About.com data from 1980-2012:",
"title": ""
},
{
"docid": "edd9e052636764c8304b7effaf696a9e",
"text": "December, 7, 2011 ( 01:40 pm) :- Reliance industries buy which is chain by Mr. Mukesh Ambani, company planes to offer 4 G services as a low Cost by which they help the growth of Indians. Company plans to launch their tab around Rs 3500 & with data download or uploading facility for 10 Rs of every 1 GB. If company able to provided all there technology, Reliance will be the next year favorite stock for many investors. But now, Reliance have strong resistance at Rs XXX & support at Rs XXX above this trend bullish side.",
"title": ""
},
{
"docid": "d59301acd1b942e879c09beefec5df5d",
"text": "tl;dr: The CNN Money and Yahoo Finance charts are wildly inaccurate. The TD Ameritrade chart appears to be accurate and shows returns with reinvested dividends. Ignoring buggy data, CNN most likely shows reinvested dividends for quoted securities but not for the S&P 500 index. Yahoo most likely shows all returns without reinvested dividends. Thanks to a tip from Grade Eh Bacon, I was able to determine that TD Ameritrade reports returns with reinvested dividends (as it claims to do). Eyeballing the chart, it appears that S&P 500 grew by ~90% over the five year period the chart covers. Meanwhile, according to this S&P 500 return estimator, the five year return of S&P 500, with reinvested dividends, was 97.1% between July 2012 to July 2017 (vs. 78.4% raw returns). I have no idea what numbers CNN Money is working from, because it claims S&P 500 only grew about 35% over the last five years, which is less than half of the raw return. Ditto for Yahoo, which claims 45% growth. Even stranger still, the CNN chart for VFINX (an S&P 500 index fund) clearly shows the correct market growth (without reinvesting dividends from the S&P 500 index), so whatever problem exists is inconsistent: Yahoo also agrees with itself for VFINX, but comes in a bit low even if your assume no reinvestment of dividends (68% vs. 78% expected); I'm not sure if it's ever right. By way of comparison, TD's chart for VFINX seems to be consistent with its ABALX chart and with reality: As a final sanity check, I pulled historical ^GSPC prices from Yahoo Finance. It closed at $1406.58 on 27 Aug 2012 and $2477.55 on 28 Aug 2017, or 76.1% growth overall. That agrees with TD and the return calculator above, and disagrees with CNN Money (on ABALX). Worse, Yahoo's own charts (both ABALX and VFINX) disagree with Yahoo's own historical data.",
"title": ""
}
] |
fiqa
|
399fa7381d7cf6b187504b82492668f2
|
What time period is used by yahoo finance to calculate beta
|
[
{
"docid": "72fd6e652e8b3d14b6257d864896e856",
"text": "Citing the Yahoo Finance Help page, Beta: The Beta used is Beta of Equity. Beta is the monthly price change of a particular company relative to the monthly price change of the S&P500. The time period for Beta is 3 years (36 months) when available. Regarding customised time periods, I do not think so.",
"title": ""
}
] |
[
{
"docid": "5070df72e782e7506f474de8de546a33",
"text": "This is a useful metric in that it gives you a trust factor on how reliable the beta is for future expectations It is akin to velocity and acceleration First and second order derivatives of distance / time. Erratic acceleration implies the velocity is less trustworthy Same idea for beta",
"title": ""
},
{
"docid": "682b9e5c188daf75f671e05c6215d32c",
"text": "In regards to your title, it's based on product. Rates based products had a late 2016 early 2017 run. It's now summer time and the fed is acting as expected. Clients have already positioned themselves going into the slow season. Distressed bonds and HY loans are still moving. After the latest fed increase and the yield curve flattening, HY loans took a hit. Par loans were trading at a discount. The market has moved back to paying a premium. However, HY bonds have been slowing down since June. New issue has dropped off, and equities have slowed as well. It's summer time. I wouldn't say that traders have it tough as the tittle suggests, it's just that it was a very active first quarter and now volatility has subsided. It's just the quiet season.",
"title": ""
},
{
"docid": "af49ec901f6c1437fa997bf88b1346ad",
"text": "\"Calculating beta is finding the correlation between the dependent variable, MSCI world benchmark, and the independent variable, your companies. If you know how to run liner regression models, run each company as the independent variable with the dependent MSCI. You can use Excel to gather this result (Y = MSCI price change at closing hour while X = company stock price closing prince). Running the regression will give you the Beta (and alpha when doing portfolios); which (from linear algebra) is the \"\"m\"\" in y = mx + b\"",
"title": ""
},
{
"docid": "481b8423ba7e31615b1775bafe7d3029",
"text": "I looked at this a little more closely but the answer Victor provided is essentially correct. The key to look at in the google finance graph is the red labled SMA(###d) would indicate the period units are d=days. If you change the time axis of the graph it will shift to SMA(###m) for period in minutes or SMA(###w) for period in weeks. Hope this clears things up!",
"title": ""
},
{
"docid": "f4b69c1b4dee246e67fb913d8f2d7439",
"text": "Identify the market and time period. Use the [capital asset pricing model](http://en.wikipedia.org/wiki/Capital_asset_pricing_model) to determine the market beta(http://en.wikipedia.org/wiki/Beta_(finance) for your given stock and interpret the results (if your stock plots above the security market line, it means you are getting higher return for your risk, with consideration of the affects of market risk). Maybe give a more detailed question? You might simply need to compute a modified [Sharpe Ratio](http://en.wikipedia.org/wiki/Sharpe_ratio) using the market (during the time you've decided is the recession) as the risk free rate. Tough to give a good answer to such a general/non-specific question. EDIT: link formatting - can't get the beta page to link because of '( )' in url",
"title": ""
},
{
"docid": "26e829b6a7db54e5cf3756d79e49b8d8",
"text": "Should be noted that pacoverflow's answer is wrong. Yahoo back-adjusts all the previous (not current or future) values based on a cumulative adjustment factor. So if there's a dividend ex-date on December 19, Yahoo adjusts all the PREVIOUS (December 18 and prior) prices with a factor which is: 1 - dividend / Dec18Close",
"title": ""
},
{
"docid": "0be66ae4d5867a95e9bfae09448c360a",
"text": "\"Probably the best way to investigate this is to look at an example. First, as the commenters above have already said, the log-return from one period is log(price at time t/price at time t-1) which is approximately equal to the percentage change in the price from time t-1 to time t, provided that this percentage change is not big compared to the size of the price. (Note that you have to use the natural log, ie. log to the base e -- ln button on a calculator -- here.) The main use of the log-return is that is a proxy for the percentage change in the price, which turns out to be mathematically convenient, for various reasons which have mostly already been mentioned in the comments. But you already know this; your actual question is about the average log-return over a period of time. What does this indicate about the stock? The answer is: if the stock price is not changing very much, then the average log-return is about equal to the average percentage change in the price, and is very easy and quick to calculate. But if the stock price is very volatile, then the average log-return can be wildly different to the average percentage change in the price. Here is an example: the closing prices for Pitchfork Oil from last week's trading are: 10, 5, 12, 5, 10, 2, 15. The percentage changes are: -0.5, 1.4, -0.58, 1, -0.8, 6.5 (where -0.5 means -50%, etc.) The average percentage change is 1.17, or 117%. On the other hand, the log-returns for the same period are -0.69, 0.88, -0.88, 0.69, -1.6, 2, and the average log-return is about 0.068. If we used this as a proxy for the average percentage change in the price over the whole seven days, we would get 6.8% instead of 117%, which is wildly wrong. The reason why it is wrong is because the price fluctuated so much. On the other hand, the closing prices for United Marshmallow over the same period are 10, 11, 12, 11, 12, 13, 15. The average percentage change from day to day is 0.073, and the average log-return is 0.068, so in this case the log-return is very close to the percentage change. And it has the advantage of being computable from just the first and last prices, because the properties of logarithms imply that it simplifies to (log(15)-log(10))/6. Notice that this is exactly the same as for Pitchfork Oil. So one reason why you might be interested in the average log-return is that it gives a very quick way to estimate the average return, if the stock price is not changing very much. Another, more subtle reason, is that it actually behaves better than the percentage return. When the price of Pitchfork jumps from 5 to 12 and then crashes back to 5 again, the percentage changes are +140% and -58%, for an average of +82%. That sounds good, but if you had bought it at 5, and then sold it at 5, you would actually have made 0% on your money. The log-returns for the same period do not have this disturbing property, because they do add up to 0%. What's the real difference in this example? Well, if you had bought $1 worth of Pitchfork on Tuesday, when it was 5, and sold it on Wednesday, when it was 12, you would have made a profit of $1.40. If you had then bought another $1 on Wednesday and sold it on Thursday, you would have made a loss of $0.58. Overall, your profit would have been $0.82. This is what the average percentage return is calculating. On the other hand, if you had been a long-term investor who had bought on Tuesday and hung on until Thursday, then quoting an \"\"average return\"\" of 82% is highly misleading, because it in no way corresponds to the return of 0% which you actually got! The moral is that it may be better to look at the log-returns if you are a buy-and-hold type of investor, because log-returns cancel out when prices fluctuate, whereas percentage changes in price do not. But the flip-side of this is that your average log-return over a period of time does not give you much information about what the prices have been doing, since it is just (log(final price) - log(initial price))/number of periods. Since it is so easy to calculate from the initial and final prices themselves, you commonly won't see it in the financial pages, as far as I know. Finally, to answer your question: \"\"Does knowing this single piece of information indicate something about the stock?\"\", I would say: not really. From the point of view of this one indicator, Pitchfork Oil and United Marshmallow look like identical investments, when they are clearly not. Knowing the average log-return is exactly the same as knowing the ratio between the final and initial prices.\"",
"title": ""
},
{
"docid": "2649f29b989d8e7f895fca5b3d7d7194",
"text": "\"At the bottom of Yahoo! Finance's S & P 500 quote Quotes are real-time for NASDAQ, NYSE, and NYSE MKT. See also delay times for other exchanges. All information provided \"\"as is\"\" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein. Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Orderbook quotes are provided by BATS Exchange. US Financials data provided by Edgar Online and all other Financials provided by Capital IQ. International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. Thus, yes there is a DB being accessed that there is likely an agreement between Yahoo! and the providers.\"",
"title": ""
},
{
"docid": "cf5b1097c9ea854253309777ec41f2ae",
"text": "If you do not need it for a day or a week or something like that, an easy thing to do to get the beta of a security is to use wolframalpha. Here is a sample query: BETA for AAPL Calculating beta is an important metric, but it is not a be all end all, as there are ways to hedge the beta of your portfolio. So relying on beta is only useful if it is done in conjunction with something else. A high beta security just means that overall the security acts as the market does with some multiplier effect. For a secure portfolio you want beta as close to zero as possible for capital preservation while trying to find ways to exploit alpha.",
"title": ""
},
{
"docid": "9764ba3afd9210806de741e49eaf845a",
"text": "\"Google Docs spreadsheets have a function for filling in stock and fund prices. You can use that data to graph (fund1 / fund2) over some time period. Syntax: =GoogleFinance(\"\"symbol\"\", \"\"attribute\"\", \"\"start_date\"\", \"\"num_days|end_date\"\", \"\"interval\"\") where: This analysis won’t include dividends or distributions. Yahoo provides adjusted data, if you want to include that.\"",
"title": ""
},
{
"docid": "8f70e124bf017400421257713171e9b1",
"text": "\"Beta is the correct answer. It is THE measure of the risk relationship of a stock with the broad market. R squared is incorrect unless you mean something very odd by \"\"co-efficiency.\"\" A stock that goes up each time the market goes down has very low co-efficiency (negative risk as you have defined it) but very high R squared. A stock that goes the same direction as the market but twice as far (with a lot of noise) has a very low R squared but contains a lot of market risk. A stock that always goes in the same direction as the market but only a 100th as far is very safe but has a very high R squared. You can calculate beta using \"\"slope\"\" in excel or doing a regression, but the easiest thing is just to look up the beta in yahoo finance or elsewhere. You don't need to calculate it for yourself normally.\"",
"title": ""
},
{
"docid": "7f3e8cac96486db24344d65596d6fff2",
"text": "Yahoo Finance has this now, the ticker is CL=F.",
"title": ""
},
{
"docid": "502a5d7377b87fe0f66fffc821dd291c",
"text": "The Money Chimp site lets you choose two points in time to see the return. i.e. you give it the time (two dates) and it tells you the return. One can create a spreadsheet to look at multiple time periods and answer your question that way, but I've not seen it laid out that way in advance. For what it's worth, I am halfway to my retirement number. I can tell you, for example that at X%, I hit my number in Y years. 8.73% gets me 8/25/17 (kid off to college) 3.68% gets me 8/25/21 (kid graduates), so in a sense, we're after the same type of info. With the long term return being in the 10% range, you're going to get 3 years or so as average, but with a skewed bellish curve when run over time.",
"title": ""
},
{
"docid": "427040f8683b2a11bdd39178e27642de",
"text": "My level of analysis is not quite that advanced. Can you share what that would show and why that particular measure is the one to use? I've run regression on prices between the two. VIX prices have no correlation to the s&p500 prices. Shouldn't true volatility result in the prices (more people putting options on the VIX during the bad times and driving that price up) correlate to the selloff that occurs within the S&P500 during recessions and other events that would cause significant or minor volatility? My r2 showed no significance within a measurement of regression within Excel. But, *gasp* I could be wrong, but would love to learn more about better ways of measurement :)",
"title": ""
},
{
"docid": "6869e51ad55dcef0b71c420f217c259e",
"text": "\"Would still be affected by energy prices, labor, weather, and any other input they don't have full control over. Labor and weather can never be controlled. Other users of beef may have a derivative hedge. A derivative hedge would likely provide more direct (maybe short term) protection than a vertical integration hedge. With a financial hedge all of the secondary risk factors are \"\"incorporated\"\" while with vertical integration you are still left with the risk of each and every input to the final product that you do not control. Vertical integration is done for a lot of reasons and it doesn't always result in lower than market costs, especially over any given period.\"",
"title": ""
}
] |
fiqa
|
9e4ac8a8def6d85973083f94e38d7e03
|
Can one use Google Finance to backtest (i.e. simulate trades in the past)?
|
[
{
"docid": "4d0da1ce4c52be459834daa39d8b3357",
"text": "I've used yahoo to perform the exercise you're asking about. It allows you to download price data, month end if you wish, and by manipulating via a spreadsheet to add a column for purchases, you can easily see how your £100/mo would end after so long a time period.",
"title": ""
},
{
"docid": "366110afc6c37433dbbd7d11fa1dd8a6",
"text": "If you use Google Finance, you will get incorrect results because Google Finance does not show the dividend history. Since your requirement is that dividends are re-invested, you should use Yahoo Finance instead, downloading the historical 'adjusted' price.",
"title": ""
},
{
"docid": "7e1b383fd0db28de0e0948544e307d5f",
"text": "Yes, add the stocks/mutual funds that you want and then you would just need to add all the transactions that you theoretically would have made. Performing the look up on the price at each date that you would have sold or bought is quite tedious as well as adding each transaction.",
"title": ""
}
] |
[
{
"docid": "d8bd50cfab7a7dfa28146c0fa17dbe77",
"text": "Based on my experience with OpenQuant, which is a development platform for automated trading strategies (and therefore can be easily be used for backtesting your personal strategy), I can give a little insight into what you might look for in such a platform. OpenQuant is a coding environment, which reads data feeds from a variety of sources (more on that in the second point), and runs the code for your strategy on that data and gives you the results. The data could be imported from a live data feed or from historical data, either through numerous API's, CSV/Excel, etc. You can write your own strategies using the custom C# libraries included with the software, which spares you from implementing your own code for technical indicators, basic statistical functions, etc. Getting the data is another issue. You could use joe's strategy and calculate option prices yourself, although you need to exercise caution when doing this to test a strategy. However, there is no substitute for backtesting a strategy on real data. Markets change over time, and depending on how far back you're interested in testing your strategy, you may run into problems. The reason there is no substitute for using real data is that attempting to replicate the data may fail in some circumstances, and you need a method of verifying that the data you're generating is correct and realistic. Calculating a few values, comparing them to the real values, and calibrating accordingly is a good idea, but you have to decide for yourself how many checks you want to do. More is better, but it may not be enough to realistically test your strategy. Disclaimer: Lest you interpret my post as a shameless plug for the OpenQuant platform, I'll state that I found the interface awful (it looked vaguely like Office 2000 but ten years too late) and the documentation woefully incomplete. I last used the software in 2010, so it may have improved in the intervening years, but your mileage may vary. I only use it as an example to give some insight into what you might look for in a backtesting platform. When you actually begin trading, a different platform is likely in order. That being said, it responded fairly quickly and the learning curve wasn't too steep. The platform wasn't too expensive at the time (about $700 for a license with no data feeds, I think) but I was happy that the cost wasn't coming out of my pocket. It's only gotten more expensive and I'm not sure it's worth it.",
"title": ""
},
{
"docid": "6d9657c607586b37a6adb1bcd2413064",
"text": "Returns reported by mutual funds to shareholders, google, etc. are computed after all the funds' costs, including Therefore the returns you see on google finance are the returns you would actually have gotten.",
"title": ""
},
{
"docid": "5484edae9880adaccd25bf5b7b63b89e",
"text": "Yes apply for live and dynamic data (you may have to pay for this depending on your broker and your country) and look at the market depth.",
"title": ""
},
{
"docid": "f40ce647ec1934ec570d35784baa2775",
"text": "James Roth provides a partial solution good for stock picking but let's speed up process a bit, already calculated historical standard deviations: Ibbotson, very good collection of research papers here, examples below Books",
"title": ""
},
{
"docid": "3a66a5e43fcafe49252adcf58e4aacba",
"text": "I will assume that you are not asking in the context of high frequency trading, as this is Personal Finance Stack Exchange. It is completely acceptable to trade odd lots for retail brokerage customers. The odd lot description that you provided in your link, from Interactive Brokers is correct. But even in that context, it says, regarding the acceptability of odd lots to stock exchanges: The exception is that odd lots can be routed to NYSE/ARCA/AMEX, but only as part of a basket order or as a market-on-close (MOC) order. Google GOOG is traded on the NASDAQ. Everything on the NASDAQ is electronic, and always has been. You will have no problem selling or buying less than 100 shares of Google. There is also an issue of higher commissions with odd lots: While trading commissions for odd lots may still be higher than for standard lots on a percentage basis, the popularity of online trading platforms and the consequent plunge in brokerage commissions means that it is no longer as difficult or expensive for investors to dispose of odd lots as it used to be in the past. Notice what it says about online trading making it easier, not more difficult, to trade odd lots.",
"title": ""
},
{
"docid": "2649f29b989d8e7f895fca5b3d7d7194",
"text": "\"At the bottom of Yahoo! Finance's S & P 500 quote Quotes are real-time for NASDAQ, NYSE, and NYSE MKT. See also delay times for other exchanges. All information provided \"\"as is\"\" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein. Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Orderbook quotes are provided by BATS Exchange. US Financials data provided by Edgar Online and all other Financials provided by Capital IQ. International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. Thus, yes there is a DB being accessed that there is likely an agreement between Yahoo! and the providers.\"",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "419ccafaa188ccb2a84201f32683508e",
"text": "Algo traders/quants/market backtesters/coders/et al. I am looking to backtest basic things like the correlation of P/E, EV/EBITDA, etc. to market performance. I know a little R and Python. What is the easiest way to learn to backtest this sort of stuff? I want to eventually get into algo trading sort of stuff. I'd **greatly** appreciate it!",
"title": ""
},
{
"docid": "76e622fc225406dbd70fb144752364dc",
"text": "\"You could use any of various financial APIs (e.g., Yahoo finance) to get prices of some reference stock and bond index funds. That would be a reasonable approximation to market performance over a given time span. As for inflation data, just googling \"\"monthly inflation data\"\" gave me two pages with numbers that seem to agree and go back to 1914. If you want to double-check their numbers you could go to the source at the BLS. As for whether any existing analysis exists, I'm not sure exactly what you mean. I don't think you need to do much analysis to show that stock returns are different over different time periods.\"",
"title": ""
},
{
"docid": "1b09f150a05d07b2578d575ce7ace79c",
"text": "I have never seen a backtest showing that prices tended to be attracted by / to revert around Fibonacci levels. The fact that many people use them doesn't mean that they can be turned into a profitable system... I have on the other hand seen many backtests showing that they don't do anything, such as the one described in this article: At least in this sample of market data, using this particularly specification for swings, we find no evidence that Fibonacci ratios are significant in the market. Perhaps I have missed something significant, or perhaps I am merely completely wrong in my analysis, but one thing should be clear—the burden of proof should lie on the people offering arcane and complex methodologies, when simpler methods work just as well or better in the marketplace. If Fibonacci ratios are the key to the markets, where are the quantitative tests? Where’s the proof?",
"title": ""
},
{
"docid": "daeeb14027f41c5f88d2279f2b4837d5",
"text": "nice work! really enjoyed looking through your website. do you see any possible application of Machine Learning (specifically tensorflow) to this? I was thinking about building a trading bot that uses data from various APIs as a strategy just as an experiment but I'm wondering what your insights are.",
"title": ""
},
{
"docid": "2e7091ecfe304bce4558075d5b464b1c",
"text": "\"To expand on keshlam's answer: A direct feed does not involve a website of any kind. Each exchange publishes its order/trade feed(s) onto a packet network where subscribers have machines listening and reacting. Let's call the moment when a trade occurs inside an exchange's matching engine \"\"T0\"\". An exchange then publishes the specifics of that trade as above, and the moment when that information is first available to subscribers is T1. In some cases, T1 - T0 is a few microseconds; in other (notorious) cases, it can be as much as 100 milliseconds (100,000x longer). Because it's expensive for a subscriber to run a machine on each exchange's network -- and also because it requires a team of engineers devoted to understanding each exchange's individual publication protocols -- it seems unlikely that Google pays for direct access. Instead Google most likely pays another company who is a subscriber on each exchange around the world (let's say Reuters) to forward their incoming information to Google. Reuters then charges Google and other customers according to how fast the customer wants the forwarded information. Reuters has to parse the info it gets at T1, check it for errors, and translate it into a format that Google (and other customers) can understand. Let's say they finish all that work and put their new packets on the internet at time T2. Then the slow crawl across the internet begins. Some 5-100 milliseconds later your website of choice gets its pre-processed data at time T3. Even though it's preprocessed, your favorite website has to unpack the data, store it in some sort of database, and push it onto their website at time T4. A sophisticated website might then force a refresh of your browser at time T4 to show you the new information. But this forced refresh involves yet another slow crawl across the internet from where your website is based to your home computer, competing with your neighbor's 24/7 Netflix stream, etc. Then your browser (with its 83 plugins and banner ads everywhere) has to refresh, and you finally see the update at T5. So, a thousand factors come into play, but even assuming that Google is doing the most expensive and labor-intensive thing it can and that all the networks between you and Google and the exchange are as short as they can be, you're not going to hear about a trade -- even a massive, market-moving trade -- for anywhere from 500 milliseconds to 5 seconds after T0. And in a more realistic world that time will be 10-30 seconds. This is what Google calls \"\"Realtime\"\" on that disclaimer page, because they feel they're getting that info to you as fast as they possibly can (for free). Meanwhile, the computers that actually subscribe to an exchange heard about the trade way back at time T1 and acted on that information in a few microseconds. That's almost certainly before T2 and definitely way way before T3. The market for a particular instrument could change direction 5 times before Google even shows the first trade. So if you want true realtime access, you must subscribe to the exchange feed or, as keshlam suggests, sign up with a broker that provides its own optimized market feeds to you. (Note: This is not an endorsement of trading through brokers.)\"",
"title": ""
},
{
"docid": "d6614c80a1bfd3d9994c53dd2e02b2ba",
"text": "Try Google Finance Screener ; you will be able to filter for NASDAQ and NYSE exchanges.",
"title": ""
},
{
"docid": "3451c2779bca4a3422a1edf0de832b52",
"text": "At this time, Google Finance doesn't support historical return or dividend data, only share prices. The attributes for mutual funds such as return52 are only available as real-time data, not historical. Yahoo also does not appear to offer market return data including dividends. For example, the S&P 500 index does not account for dividends--the S&P ^SPXTR index does, but is unavailable through Yahoo Finance.",
"title": ""
},
{
"docid": "ae1d9140fa353b223f504333df2c180b",
"text": "For whatever reason, I don't believe they offer it. Yahoo does. A google for google finance VIX turns up people asking the question, but no quote on google.",
"title": ""
}
] |
fiqa
|
a729ab8fee900fb33fef562a219b1b95
|
Why does historical price data not go back all the way on Google Finance?
|
[
{
"docid": "420f4726f5eff4d17dbcf18d85d62d3b",
"text": "Google Finance and Yahoo Finance have been transitioning their API (data interface) over the last 3 months. They are currently unreliable. If you're just interested in historical price data, I would recommend either Quandl or Tiingo (I am not affiliated with either, but I use them as data sources). Both have the same historical data (open, close, high, low, dividends, etc.) on a daily closing for thousands of Ticker symbols. Each service requires you to register and get a unique token. For basic historical data, there is no charge. I've been using both for many months and the data quality has been excellent and API (at least for python) is very easy! If you have an inclination for python software development, you can read about the drama with Google and Yahoo finance at the pandas-datareader group at https://github.com/pydata/pandas-datareader.",
"title": ""
}
] |
[
{
"docid": "fe41bd844ccdd880ae9b1f59abe82487",
"text": "\"Google Finance certainly has data for Tokyo Stock Exchange (called TYO on Google) listings. You could create a \"\"portfolio\"\" consisting of the stocks you care about and then visit it once per day (or write a script to do so).\"",
"title": ""
},
{
"docid": "73ba7fddc5657098f06a536c734a6205",
"text": "Yes, past option prices are available for many options, but as far as I know not for free. You can get them from, for example, OptionMetrics. Probably there are other providers as well, which may be cheaper for an individual or small institution. OptionMetrics data comes from the National Best Bid and Offer. Probably there are some over-the-counter options that are not included here, but for someone asking this question, OptionMetrics will most likely have the option you are interested in.",
"title": ""
},
{
"docid": "93de9341cd6723c3dd91a86bb07eba9d",
"text": "\"The tricky part is that it's NAV is quite high these days, almost close to its 52 week high You will find, if you look historically, most markets are often close to their 52 week or even historical highs. This is an important consideration. \"\"The markets are at their all-time high!\"\" has been true a large percentage of the past decades. Everyone wants to buy low, sell high. But the reality is, buying low often will be \"\"buying at close to the highest point\"\" as no one has a crystal ball.\"",
"title": ""
},
{
"docid": "4eeeb700522713da024781f45893656f",
"text": "Interactive Brokers provides historical intraday data including Bid, Ask, Last Trade and Volume for the majority of stocks. You can chart the data, download it to Excel or use it in your own application through their API. EDIT: Compared to other solutions (like FreeStockCharts.com for instance), Interactive Brokers provides not only historic intraday LAST**** trades **but also historic BID and ASK data, which is very useful information if you want to design your own trading system. I have enclosed a screenshot to the chart parameter window and a link to the API description.",
"title": ""
},
{
"docid": "8f399907f2221e4bdc9aefb8c11cf52c",
"text": "This is from Google Finance right now.",
"title": ""
},
{
"docid": "914a8d1f0698c2ba87071f40992cf1cb",
"text": "Well your gripe is using historic data to estimate VAR. That is separate topic. Either way however something that happens twice a century cant be considered an outlier and if you choose to use historic data then such things need to be included.",
"title": ""
},
{
"docid": "7d9fd9278d1df7eff6f2b32d543ed49d",
"text": "I've had luck finding old stock information in the Google scanned newspaper archives. Unfortunately there does not appear to be a way to search exactly by date, but a little browsing /experimenting should get what you want. For instance, here's a source which shows the price to be 36 3/4 (as far as I can read anyway) on that date.",
"title": ""
},
{
"docid": "d7552594ae9c50cda4b2b820d51d663a",
"text": "even in Bloomberg intraday data you're limited to 140days. If you want more you need cash, a lot of cash. Just the sheer size of data is ridiculous. Unless you're Blackrock or some big firms like that then probably can't afford to buy it and store it - it won't fit on one Excel file haha",
"title": ""
},
{
"docid": "0b2b5a994cca7939cf4143da8b2514a0",
"text": "\"I had both closing price and adjusted price of Apple showing the same amount after \"\"download data\"\" csv file was opened in excel. https://finance.yahoo.com/quote/AAPL/history?period1=1463599361&period2=1495135361&interval=div%7Csplit&filter=split&frequency=1d Its frustrating. My last option was to get the dividends history of the stock and add back to the adjusted price to compute the total return for a select stock for the period.\"",
"title": ""
},
{
"docid": "7978a163ea6fbead1bd037bcc1a14902",
"text": "I also searched for some time before discovering Market Archive, which AFAIK is the most affordable option that basically gives you a massive multi-GB dump of data. I needed sufficient data to build a model and didn't want to work through an API or have to hand-pick the securities to train from. After trying to do this on my own by scraping Yahoo and using the various known tools, I decided my time was better spent not dealing with rate-limiting issues and parsing quirks and whatnot, so I just subscribed to Market Archive (they update the data daily).",
"title": ""
},
{
"docid": "5819b1b16bb5a329fb87dea149f8148b",
"text": "Goldprice.org has different currencies and historical data. I think silverprice.org also has historical data.",
"title": ""
},
{
"docid": "77910cb1a35f144cf084c07e12dd9ba9",
"text": "I am mostly interested in day to day records, and would like the data to contain information such as dividend payouts, and other parameters commonly available, such as on : http://finviz.com/screener.ashx ... but the kind of queries you can do is limited. For instance you can only go back two years.",
"title": ""
},
{
"docid": "fd1c51438c9aaf8e14aa77f9887fc3c7",
"text": "This is just a shot in the dark but it could be intermarket data. If the stock is interlisted and traded on another market exchange that day then the Yahoo Finance data feed might have picked up the data from another market. You'd have to ask Yahoo to explain and they'd have to check their data.",
"title": ""
},
{
"docid": "ff68b09fef2ab83c41d8cf7759d12c2c",
"text": "The point of that question is to test if the user can connect shares and stock price. However, that being said yeah, you're right. Probably gives off the impression that it's a bit elementary. I'll look into changing it asap.",
"title": ""
},
{
"docid": "16b3af99339f2f92b430b82684535adb",
"text": "\"Such data is typically only available from paid sources due to the amount of research involved in determining the identity of delisted securities, surviving entities in merger scenarios, company name changes, symbol changes, listing venue changes, research of all capital events such as splits, and to ensure that the data coverage is complete. Many stocks that are delisted from a major exchange due to financial difficulties are still publicly tradeable companies with their continuing to trade as \"\"OTC\"\" shares. Some large companies even have periods where they traded for a period of their history as OTC. This happened to NYSE:NAV (Navistar) from Feb 2007 to July 2008, where they were delisted due to accounting statement inaccuracies and auditor difficulties. In the case of Macromedia, it was listed on NASDAQ 13 Dec 1993 and had its final day of trading on 2 Dec 2005. It had one stock split (2:1) with ex-date of 16 Oct 1995 and no dividends were ever paid. Other companies are harder to find. For example, the bankrupt General Motors (was NYSE:GM) became Motoros Liquidation Corp (OTC:MTLQQ) and traded that way for almost 21 months before finally delisting. In mergers, there are in two (or more) entities - one surviving entity and one (or more) delisted entity. In demergers/spinoffs there are two (or more) entities - one that continues the capital structure of the original company and the other newly formed spun-off entity. Just using the names of the companies is no indication of its history. For example, due to monopoly considerations, AT&T were forced to spinoff multiple companies in 1984 and effectively became 75% smaller. One of the companies they spunoff was Southwestern Bell Corporation, which became SBC Communications in 1995. In 2005 SBC took over its former parent company and immediately changed its name to AT&T. So now we have two AT&Ts - one that was delisted in 2005 and another that exists to this day. Disclosure: I am a co-owner of Norgate Data (Premium Data), a data vendor in this area.\"",
"title": ""
}
] |
fiqa
|
94e05ba87ff11332ad0f47c157921477
|
Correct Ways of Importing Personal Finance Transaction Data
|
[
{
"docid": "05c1584104a608dbd02b92a376e479f0",
"text": "You'll need to find out in what format MoneyStrands expects the data. A .qif or an .ofx file may not be the answer.",
"title": ""
}
] |
[
{
"docid": "500aba91d79281094dbadba775df5b7a",
"text": "I'm using iBank on my Mac here and that definitely supports different currencies and is also supposed to be able to track investments (I haven't used it to track investments yet, hence the 'supposed to' caveat).",
"title": ""
},
{
"docid": "763b586d811fa6556c94d509dafdbe69",
"text": "\"Yodlee and Mint are good solutions if you don't mind your personal financial information being stored \"\"in the cloud\"\". I do, so I use Quicken. Quicken stores whatever you give to it for as long as you want: so the only question is how to get the credit card transactions you want into it? All my financial institutions allow me to view my credit card statements for a year back, and download them in a form Quicken can read. So you can have a record of your transactions from a year ago right now, and in a year you will have two year's worth.\"",
"title": ""
},
{
"docid": "82d2d4a07821a9bb5dad39c545650d9a",
"text": "Assuming you have registered your activities as partnership and receiving this money as Individual, you need to show this under Schedule OS, 1d [other income]. this will be under the ITR-2 [tab CG-OS] XLS tax preparation utility given by Tax Department. The XLS can be found at https://incometaxindiaefiling.gov.in/portal/individual_huf.do If the funds you are receiving are large [more than say Rs 500,000] then suggest you incorporate a partnership firm or company, there are quite a few exceptions you can claim lowering you tax outgo. The fact that you are transferring funds to your partners can be an issue incase you get audited. You would need to have sufficient evidence to show that the money paid was for services rendered directly and not your income. It would be easier if you create a partnership or have the client directly pay to them. Again if the sum is small its fine, as the sum becomes large, it would get noticed by the tax authorities.",
"title": ""
},
{
"docid": "3bda3e210ba9b35e0f5b54f23bb862c4",
"text": "I use MoneyStrands (formerly called Expensr), but mostly just to track expenses and look at reports on my spending habits. It has some really pretty charts, with the ability to drill down into categories and sub-categories, or graph monthly spending for any custom date range. It does a half-decent job of auto-categorizing the imported bank transactions, and you can set up additional rules for common vendors, but I still have to do some manual work after each import. It does a good job of integrating my credit cards, bank accounts, and I can even manually add cash transactions. It has some basic budgeting capabilities, but they're not very useful for someone who needs to carefully budget thier monthly spending. Another one I've heard about is mint.com, but it only supports American banks (last I heard, anyway).",
"title": ""
},
{
"docid": "bc6e266b59ecc292bde5266b4226db53",
"text": "\"The solution I've come up with is to keep income in CAD, and Accounts Receivable in USD. Every time I post an invoice it prompts for the exchange rate. I don't know if this is \"\"correct\"\" but it seems to be preserving all of the information about the transactions and it makes sense to me. I'm a programmer, not an accountant though so I'd still appreciate an answer from someone more familiar with this topic.\"",
"title": ""
},
{
"docid": "0efe2844118714ca1c92e0350393e1cb",
"text": "You can take a shortcut and make a few cumulative transactions, maybe just estimate how much of your spending landed in each of your budget categories, but you will lose a lot of the value that you were building for yourself by tracking your spending during the earlier months. I reconcile my budget and categorize my spending on a monthly basis. It's always a chore to pull out the big stack of receipts and plow through them, but I've learned the value of having an accurate picture of where all my money went. There is no clean way to fake it. You can either take the time and reconcile your spending, or you can take a short cut. It probably renders your efforts to track everything from the beginning of the year invalid though. If you want to start over this month (as you did at the beginning of the year) that would probably be a cleaner way to reconcile things.",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "e05dcedf1a1bea716785027fabcee543",
"text": "\"Considering the fact that you are so unaware of how to find such data, I find it very very hard to believe that you actually need it. \"\"All trade and finance data for as much tickers and markets as possible.\"\" Wtf does that even mean. You could be referencing thousands of different types of data for any given \"\"ticker\"\" with a statement so vague. What are you looking for?\"",
"title": ""
},
{
"docid": "830ab9fb4caf0738837905aa1d8a5b57",
"text": "I generally concur with your sentiments. mint.com has 'hack me' written all over it. I know of two major open source tools for accounting: GNUCash and LedgerSMB. I use GNUCash, which comes close to meeting your needs: The 2.4 series introduced SQL DB support; mysql, postgres and sqlite are all supported. I migrated to sqlite to see how the schema looked and ran, the conclusion was that it runs fine but writing direct sql queries is probably beyond me. I may move it to postgres in the future, just so I can write some decent reports. Note that while it uses HTML for reporting, there is no no web frontend. It still requires a client, and is not multi-user safe. But it's probably about the closest to what you what that still falls under the heading of 'personal finance'. A fork of SQL Ledger, this is postgreSQL only but does have a web frontend. All the open source finance webapps I've found are designed for small to medium busineses. I believe it should meet your needs, though I've never used it. It might be overkill and difficult to use for your limited purposes though. I know one or two people in the regional LUG use LedgerSMB, but I really don't need invoicing and paystubs.",
"title": ""
},
{
"docid": "af504736fd19c5cd3ff3b7ffda83e9c1",
"text": "You decide on a cost bases attribution yourself, per transaction (except for averaging for mutual funds, which if I remember correctly applies to all the positions). It is not a decision your broker makes. Broker only needs to know what you've decided to report it to the IRS on 1099, but if the broker reported wrong basis (because you didn't update your account settings properly, or for whatever else reason) you can always correct it on form 8949 (columns f/g).",
"title": ""
},
{
"docid": "1577e21bf4ad3391c4631197ed104014",
"text": "I would say when starting with Gnucash to start with the level of granularity you are comfortable with while sticking to the double entry bookkeeping practices. So going through each one: Refund for Parking Pass. Assuming you treat the Parking Pass as a sunk cost, i.e. an Expense account, its just a negative entry in the Expense account which turns into a positive one in your Bank account. Yes it may look weird, and if you don't like it you can always 'pay from Equity' the prior month, or your Bank Account if you're backfilling old statements. Selling physical items. If you sold it on eBay and the value is high enough you'll get tax forms indicating you've earned x. Even if its small or not done via eBay, treat it the same way and create a 'Personal Items/Goods' Income account to track all of it. So the money you get in your Bank account would have come from there. Found jacket money would be an Equity entry, either Opening Balances into Cash or Bank account. Remember you are treating Equity / Opening Balances as the state before you started recording every transaction so both the value going into Assets (Banks,Stock,Mutual Funds) and Liabilities (Mortgage, Student Debt, Credit Card Debt) originate from there.",
"title": ""
},
{
"docid": "97793b3a30e5346c88a4c290d48d8e81",
"text": "\"That's Imbalance-USD (or whatever your default currency is). This is the default \"\"uncategorized\"\" account. My question is, is it possible to get the \"\"unbalanced\"\" account to zero and eliminate it? Yes, it's possible to get this down to zero, and in fact desirable. Any transactions in there should be reviewed and fixed. You can delete it once you've emptied it, but it will be recreated the next time an unbalanced transaction is entered. Ideally, I figure it should autohide unless there's something in it, but it's a minor annoyance. Presumably you've imported a lot of data into what's known as a transaction account like checking, and it's all going to Imbalance, because it's double entry and it has to go somewhere. Open up the checking account and you'll see they're all going to Imbalance. You'll need to start creating expense, liability and income accounts to direct these into. Once you've got your history all classified, data entry will be easier. Autocomplete will suggest transactions, and online transaction pull will try to guess which account a given transaction should match with based on that data.\"",
"title": ""
},
{
"docid": "101bd8af9cec549d6f124020231f8ebe",
"text": "\"These sort of issues in structuring your personal finances relative to expenses can get complicated quickly, as your example demonstrates. I would recommend a solution that reduces duplication as much as possible- and depending on what information you're interested in tracking you could set it up in very different ways. One solution would be to create virtual sub accounts of your assets, and to record the source of money rather than the destination. Thus, when you do an expense report, you can limit on the \"\"his\"\" or \"\"hers\"\" asset accounts, and see only the expenses which pertain to those accounts (likewise for liabilities/credit cards). If, on the other hand, you're more interested in a running sum of expenses- rather than create \"\"Me\"\" and \"\"Spouse\"\" accounts at every leaf of the expense tree, it would make much more sense to create top level accounts for Expenses:His:etc and Expenses:Hers:etc. Using this model, you could create only the sub expense accounts that apply for each of your spending (with matching account structures for common accounts).\"",
"title": ""
},
{
"docid": "0c509b1b72a4cbf876193786938eb9a1",
"text": "Use one journal entry, and split the expenses into the appropriate accounts. This can happen even if you never mix business and personal on the same receipt: say you order office supplies (which where I live are immediately deductible as an expense) and software or hardware (which must be depreciated because they are assets) on the same order. We have an account called Proprietors Loan which represents money the company is lending to the humans who own it, or that the humans are lending to the company. Were I to pay for my personal lunch on a business credit card, it would go through that account, increasing the amount the company has lent me or decreasing the amount I have lent it. Similarly if I made a business purchase with a personal card it would go through that account in the other direction. Where I live, I can lend my company all the money I want any time, but if the company lends me money there can't be an outstanding balance over the corporate year end. If you make two credit card entries of 5 and 10 when you go to reconcile your accounts it will be harder because you'll have to realize they together match the single 15 line on your statement. Making a single entry (your A option) will make reconciling your statement much easier. And that way, you'll probably reconcile your statements, which is vital to knowing you actually recorded everything.",
"title": ""
},
{
"docid": "94ddf1032cb45bb5c777b866ae873592",
"text": "\"I found your post while searching for this same exact problem. Found the answer on a different forum about a different topic, but what you want is a Cash Flow report. Go to Reports>Income & Expenses>Cash Flow - then in Options, select the asset accounts you'd like to run the report for (\"\"Calle's Checking\"\" or whatever) and the time period. It will show you a list of all the accounts (expense and others) with transactions effecting that asset. You can probably refine this further to show only expenses, but I found it useful to have all of it listed. Not the prettiest report, but it'll get your there.\"",
"title": ""
}
] |
fiqa
|
68dbb98d4857a048cd991573ac924c1b
|
Should I finance a used car or pay cash?
|
[
{
"docid": "8cc41e5f9dfa3cd2344fc7977f6f5230",
"text": "There are several factors here. Firstly, there's opportunity cost, i.e. what you would get with the money elsewhere. If you have higher interest opportunities (investing, paying down debt) elsewhere, you could be paying that down instead. There's also domino effects: by reducing your liquid savings to or below the minimum, you can't move any of it into tax advantaged retirement accounts earning higher interest. Then there's the insurance costs. You are required to buy extra insurance to protect your lender. You should factor in the extra insurance you would buy vs the insurance required. Given that you can buy the car yourself, catastrophic insurance may not be necessary, or you may prefer a higher deductible than your lender will allow. If you're not sufficiently capitalized, you may need gap insurance to cover when your car depreciates faster than your loan is paid down. A 30 percent payment should be enough to not need it though. Finally, there's some value in having options. If you have the loan and the cash, you can likely pay it off without penalty. But it will be harder to get the loan if you don't finance it. Maybe you can take out a loan against the car later, but I haven't looked into the fees that might incur. If it's any help, I'm in the last stretch of a 3 year car loan. At the time paying in cash wasn't an option, and having done it I recognize that it's more complicated than it seems.",
"title": ""
},
{
"docid": "fd5ff70947319aa159d422cbc5ac42db",
"text": "Unless you are getting better than a 2.95% return on that money market account. Pay cash. That's the purely logical way to make the decision. However if it were me I'd pay cash anyway just because I like the idea of not owing money and having the hassle of dealing with a payment every month.",
"title": ""
},
{
"docid": "1dcfca5dc125aa1279c8d3034291cb9f",
"text": "One additional reason to pay with cash rather than financing is that you will be able to completely shut down the dealership from haggling over finance terms and get right to the point of haggling over the cost of the car (which you should always do).",
"title": ""
},
{
"docid": "a19a12381407a53ef09ec1a7fdea9e04",
"text": "I'd pay cash. Car loans are amortized, so sometimes you can get upside-down on the loan between 18-30 months because you are pre-paying interest. This can get you into trouble if you get into an accident. Given the low rate and the type of car you're buying, you're probably fine either way.",
"title": ""
}
] |
[
{
"docid": "1998aad62501d90096f94e435b798ef6",
"text": "The advice given at this site is to get approved for a loan from your bank or credit union before visiting the dealer. That way you have one data point in hand. You know that your bank will loan w dollars at x rate for y months with a monthly payment of Z. You know what level you have to negotiate to in order to get a better deal from the dealer. The dealership you have visited has said Excludes tax, tag, registration and dealer fees. Must finance through Southeast Toyota Finance with approved credit. The first part is true. Most ads you will see exclude tax, tag, registration. Those amounts are set by the state or local government, and will be added by all dealers after the final price has been negotiated. They will be exactly the same if you make a deal with the dealer across the street. The phrase Must finance through company x is done because they want to make sure the interest and fees for the deal stay in the family. My fear is that the loan will also not be a great deal. They may have a higher rate, or longer term, or hit you with many fee and penalties if you want to pay it off early. Many dealers want to nudge you into financing with them, but the unwillingness to negotiate on price may mean that there is a short term pressure on the dealership to do more deals through Toyota finance. Of course the risk for them is that potential buyers just take their business a few miles down the road to somebody else. If they won't budge from the cash price, you probably want to pick another dealer. If the spread between the two was smaller, it is possible that the loan from your bank at the cash price might still save more money compared to the dealer loan at their quoted price. We can't tell exactly because we don't know the interest rates of the two offers. A couple of notes regarding other dealers. If you are willing to drive a little farther when buying the vehicle, you can still go to the closer dealer for warranty work. If you don't need a new car, you can sometimes find a deal on a car that is only a year or two old at a dealership that sells other types of cars. They got the used car as a trade-in.",
"title": ""
},
{
"docid": "1fcdc5d9cd3b7f6107c1f75848119357",
"text": "\"There's two scenarios: the loan accrues interest on the remaining balance, or the total interest was computed ahead of time and your payments were averaged over x years so your payments are always the same. The second scenarios is better for the bank, so guess what you probably have... In the first scenario, I would pay it off to avoid paying interest. (Unless there is a compelling reason to keep the cash available for something else, and you don't mind paying interest) In the second case, you're going to pay \"\"interest over x years\"\" as computed when you bought the car no matter how quickly you pay it off, so take your time. (If you pay it earlier, it's like paying interest that would not have actually accrued, since you're paying it off faster than necessary) If you pay it off, I'm not sure if it would \"\"close\"\" the account, your credit history might show the account as being paid, which is a good thing.\"",
"title": ""
},
{
"docid": "0c651f3f081d045f93bd810edfa83fd7",
"text": "\"You want to know if you should pay cash or use a credit card like cash? There are so many benefits to the card, like purchase protection, cash back, and postponed payments, that there needs to be a really good reason to pay cash. If you are concerned about the 10% threshold, ask your credit card company to raise your limit. If you are indifferent, let the merchant decide for you by asking for a discount if you pay cash. The biggest reason is that credit cards, when handled shrewdly, make your money work for you by keeping it in less liquid / higher interest investments like inflation-adjusted T-bills. You will still be able to access it by using the credit card to float large expenses without liquidating at a loss. Investment Accounts like Schwab One are great for this since you can \"\"borrow\"\" cash at a low interest rate against your securities, until your security sale clears.\"",
"title": ""
},
{
"docid": "a31c57db14f6ad422dce707e8eeb3d93",
"text": "Your practice of waiting until you can pay cash is a good one. It will certainly prevent you from getting into debt! Now, to be clear, your question puts a credit card in the same category as a loan, but it doesn't have to be. You could use a credit card almost like cash, if you are careful. I'm not familiar with the system in France, but in the US, even if you are paying cash all the time, there are some benefits to getting a credit card and paying it off in full every month, instead of simply paying with cash. Some of those benefits are: One pretty big downside of having a credit card depends on your personality. Some people, once they have credit, end up spending beyond their means, and end up getting into debt. Please look into whether credit cards work the same way in France before considering the above advice. As for your question regarding getting a loan vs paying cash, that will usually be personal preference, since with a loan you can buy expensive items (such as a house or car) much sooner than you otherwise could if you waited until you saved the money. For example, it might take 10 years or more to build up enough money to purchase a house with cash, so if you don't want to wait that long, you'll need to finance it.",
"title": ""
},
{
"docid": "cd7306a60bf14d01085ce39d5567c46d",
"text": "Two adages come to mind. Never finance a depreciating asset. If you can't pay cash for a car, you can't afford it. If you decide you can finance at a low rate and invest at a higher one, you're leveraging your capital. The risk here is that your investment drops in value, or your cash flow stops and you are unable to continue payments and have to sell the car, or surrender it. There are fewer risks if you buy the car outright. There is one cost that is not considered though. Opportunity cost. Since you've declared transportation necessary, I'd say that opportunity cost is worth the lower risk, assuming you have enough cash left after buying a car to fund your emergency fund. Which brings me to my final point. Be sure to buy a quality used car, not a new one. Your emergency fund should be able to replace the car completely, in the case of a total loss where you are at fault and the loss is not covered by insurance. TLDR: My opinion is that it would be better to pay for a quality, efficient, basic transportation car up front than to take on a debt.",
"title": ""
},
{
"docid": "391c13f6e7ed4eae2efb564718fe3d25",
"text": "Buy a car. Vehicle loans, like mortgages, are installment loans. Credit cards are revolving lines of credit. In the US, your credit score factors in the different types of credit you have. Note that there are several methods for calculating credit scores, including multiple types of FICO scores. You could buy a car and drive for Uber to help cash flow the car payments and/or save for your next purchase. As others have suggested, you should be very careful with debt and ask critical questions before taking it on. Swiping a credit card is more about your behavior and self-control than it is logic and math. And if you ever want to start a business or make multi-million dollar purchases (e.g. real estate), or do a lot of other things, you'll need good credit.",
"title": ""
},
{
"docid": "d2aa9ba776cab68fb9f0bd1333bbea3b",
"text": "\"You can find out the most money they will loan you for a car loan when you approach your current bank/credit union. They should be willing to layout options based on your income, and credit history. You then have to decide if those terms work for you. There are several dangers with getting loan estimates, they may be willing to lend you more than you can actually handle. They think you can afford it, but maybe you can't. They may also have a loan with a longer term, which does bring the monthly cost down, but exposes you to being upside down on the loan. You then use this a a data point when looking at other lenders. The last place you look is the auto dealer. They will be trying to pressure you on both the loan and the price, that is not the time to do doing complex mental calculations. The Suntrust web page was interesting, it included the quote: The lowest rate in each range is for LightStream's unsecured auto loan product and requires that you have an excellent credit profile. It also induced the example the rate of 2.19% - 4.24% for a 24 to 36 month loan of $10,000 to $24,999 for a used car purchased from a dealer. Also note that my local credit union has a new/used loan at 1.49%, but you have to be a member. Sunstrust seems to be in the minority. In general a loan for X$ and y months will have a lower rate if it is secured with collateral. But Suntrust is offering unsecured loans (i.e. no collateral) at a low rate. The big benefit for their product is that you get the cash today. You can get the cash before you know what you want to buy. You get the cash before you have negotiated with the dealer. That makes that step easier. Now will they in the near future ask for proof you bought a car with the money? no idea. If you went to the same web page and wanted a debt consolidation loan the rate for the same $ range and the same months is: 5.49% - 11.24% the quote now changes to: The lowest rate in each range requires that you have an excellent credit profile. I have no idea what rate they will actually approve you for. It is possible that if you don't have excellent credit the rate rises quickly, but 4.24% for the worst auto loan is better than 5.49% for the best debt consolidation. Excellent Credit Given the unique nature of each individual’s credit situation, LightStream believes there is no single definition for \"\"excellent credit\"\". However, we find individuals with excellent credit usually share the following characteristics: Finally, it should be noted again that each individual situation is different and that we make our credit judgment based on the specific facts of that situation. Ultimately our determination of excellent credit is based on whether we conclude that there is a very high likelihood that our loan will be repaid in a full and timely manner. All the rates mentioned in this answer are from 15 July 2017.\"",
"title": ""
},
{
"docid": "277d4423be680399e5c346d4177ce244",
"text": "In the UK at least, dealers definitely want you to take finance. They get benefits from the bank (which are not insubstantial) for doing this; these benefits translate directly to increased commission and internal rewards for the individual salesman. It's conceivable that the salesman will be less inclined to put himself out for you in any way by sweetening your deal as much as you'd like, if he's not going to get incentives out of it. Indeed, since he's taking a hit on his commission from you paying in cash, it's in his best interests to perhaps be firmer with you during price negotiation. So, will the salesman be frustrated with you if you choose to pay in cash? Yes, absolutely, though this may manifest in different ways. In some cases the dealer will offer to pay off the finance for you allowing you to pay directly in cash while the dealer still gets the bank referral reward, so that everyone wins. This is a behind-the-scenes secret in the industry which is not made public for obvious reasons (it's arguably verging on fraud). If the salesman likes you and trusts you then you may be able to get such an arrangement. If this does not seem likely to occur, I would not go out of my way to disclose that I am planning to pay with cash. That being said, you'll usually be asked very early on whether you are seeking to pay cash or credit (the salesman wants to know for the reasons outlined above) and there is little use lying about it when you're shortly going to have to come clean anyway.",
"title": ""
},
{
"docid": "a6c4ae5dec040649e1cfeea63f1c9ee3",
"text": "Obviously, the best thing financially would be to continue using your present car, unless it impacts you financially on a regular basis. For example, maintenance or breakdowns impacting your ability to work. An unreliable car also impacts your freedom, for example preventing you from taking road-trips you might want to take or taking up free time with maintenance. Give thought to what it is about your present car that you dislike, both to determine the value you gain from a new car and what's most important to you. Anytime you buy a car, you generally lose thousands of dollars simply driving it off the lot. This is the profit which goes to dealers, salespeople, etc... and not part of the actual value of the car. Cars also depreciate over time, with most of the depreciation happening in the first few years of operation. Many of the newer model cars have additional expenses. (For example, replacement $200 keys or electronic systems that can only be repaired at special facilities.) In addition, if you have insurance (other than the minimum third-party required by law), consider the rate increases and add up the long-term impact of that. Imagine you had invested that money instead at 8% interest over the lifetime of the car. If you don't have insurance, consider what you would do in the unfortunate situation where you were at fault in a collision. Could you afford to lose your investment? Even with safe responsible driving, there is always the potential for road/weather conditions or mechanical failures. If you determine there is sufficient value to be gained from changing vehicles, I would recommend that you buy a vehicle with history from someone privately, doing appropriate background checks and consulting friends or family who know about vehicles and can provide feedback. Do research into the models which interest you ahead of time, read online reviews. Every vehicle generally has known advantages and disadvantages which can take years to discover, so buying an older vehicle gives you the advantage of knowing what to expect. I would say there is probably a reasonable middle ground between using a 1991 vehicle you don't like (that's as old as you are) and getting a relatively new model. Look at what you value in the vehicle, consider all the costs, and find the balance that works best for you. Vehicles from 2000-2005 years are quite affordable and still 10-15 years newer than your car.",
"title": ""
},
{
"docid": "da02720a8b9ffe0e17799b5fe72029d6",
"text": "Here's another way to look at this that might make the decision easier: Looking at it this way you can turn this into a financial arbitrage opportunity, returning 2.5% compared to paying cash for the vehicle and carrying the student loan. Of course you need to take other factors into account as well, such as your need for liquidity and credit. I hope this helps!",
"title": ""
},
{
"docid": "ba1fbcb5b6de5bf4d70c78c1731ee206",
"text": "I don't see how anyone could give you a hard-and-fast formula, unless they know where to get some applicable statistics. Because several factors here are not a straight calculation. If you don't replace the tires but keeping driving the car, what is the increased probability that you will get into an accident because of the bald tires? How much will bald tires vs new tires affect the selling price of the car? Presumably the longer you drive the car after getting new tires, the less increase this will give to the market value of the car. What's the formula for that? If you keep the car, what's the probability that it will have other maintenance problems? Etc. That said, it's almost always cheaper to keep your current car than to buy a new one. Even if you have maintenance problems, it would have to be a huge problem to cost more than buying a new car. Suppose you buy a $25,000 car with ... what's a typical new car loan these days? maybe 5 years at 5%? So your payments would be about $470 per month. If you compare spending $1000 for new tires versus paying $470 per month on a new car loan, the tires are cheaper within 3 months. The principle is the same if you buy with cash. To justify buying a new car you have to factor in the value of the pleasure you get from a new car, the peace of mind from having something more reliable, etc, mostly intangibles.",
"title": ""
},
{
"docid": "5e9b3afd041177df172055cd40cbd57b",
"text": "Alternative: buy a recent-model used car in good condition. Or buy an older car in good condition. Let someone else pay the heavy depreciation that happens the moment you drive a new car off the dealer's lot.",
"title": ""
},
{
"docid": "11692d59ac54be45ba7425bb06463446",
"text": "The only reason to lend the money in this scenario is cashflow. But considering you buy a $15000 car, your lifestyle is not super luxurious, so $15000 spare cash is enough.",
"title": ""
},
{
"docid": "ac5e3eceb0f3f7efed7542521895e212",
"text": "I have gotten a letter of credit from my credit union stating the maximum amount I can finance. Of course I don't show the dealer the letter until after we have finalized the deal. I Then return in 3 business days with a cashiers check for the purchase price. In one case since the letter was for an amount greater then the purchase price I was able drive the car off the lot without having to make a deposit. In another case they insisted on a $100 deposit before I drove the car off the lot. I have also had them insist on me applying for their in-house loan, which was cancelled when I returned with the cashiers check. The procedure was similar regardless If I was getting a loan from the credit union, or paying for the car without the use of a loan. The letter didn't say how much was loan, and how much was my money. Unless you know the exact amount, including all taxes and fees,in advance you can't get a check in advance. If you are using a loan the bank/credit Union will want the car title in their name.",
"title": ""
},
{
"docid": "d11150ad71b4a63f4fb167151bf58d3a",
"text": "Advantage of cash: You can spend the money without having to pay any fees or taxes to get it out. Disadvantage: When inflation is greater than zero, which it has been for many decades, your cash is continually losing value. Advantages of an IRA (Roth or classic): Your money will usually grow as the investments return a profit. You get special tax benefits. Disadvantages: There's risk -- you may lose money. There are tax penalties for withdrawing the money before retirement. In general, you should only put money in an IRA if you expect to leave it there until you retire. Or at least, for a long time. Whole life is a combination of a life insurance policy and an investment. Advantages: Combines insurance and investment into one convenient monthly payment. Disadvantages: The investment portion typically has lower returns than you could get elsewhere. If you have no need for life insurance -- if you're not supporting anyone or you're confidant they could get along without you or you don't like them and don't care what happens to them when you're gone or whatever -- then there's no point buying life insurance, whole or term. You're paying for a product that you don't need. It's pretty common advice to tell people that instead of buying a whole life policy, they should buy a term policy with the same coverage, and then invest the difference in the premium. For example, if you were considering getting a $100,000 whole life policy that costs $50 per month (just making up numbers, of course it depends on your age, health, etc), and you see you could get a $100,000 term life policy for $30 per month, you will almost certainly do better in the long run to buy the $30 term policy and put the other $20 into investments. The catch to this plan is that there are usually transaction costs to investing. Even a discount broker like Ameritrade or Scott Trade charges around $10 per transaction. So if you tried to invest $20 each month, you'd lose half of it to transaction fees. Which means that in practice, you'd have to save that money up until you had at least a few hundred. And at that point many people find other things always seem to come up to spend the money on, so that while they start out with every intention of investing this money, they don't.",
"title": ""
}
] |
fiqa
|
a8f65eb80cc5daedce56a113df4da9a6
|
Finance algebra
|
[
{
"docid": "c3d8d070a56a01810b48d789ecb1cddf",
"text": "With the following variables the periodic (annual) repayment is given by The recurrence equation for the balance b at the end of month x is derived from b[x + 1] = b[x] (1 + r) - d where b[0] = s giving The interest portion of the final payment is b[n - 1] r and the total principal repaid at the end of period n - 1 is s - b[n - 1] Solving simultaneously n = 8.9998 and s = 7240 The principal repaid at the end of the first period is s - b[1] or d - r s = 479.74",
"title": ""
}
] |
[
{
"docid": "5085b7413e9cb158544dce5b32e82066",
"text": "According to my calculations, you always lose money on group B. x = average monthly balance Income for a year = 0.015 * (12 * x) = 0.18 * x Cost of funds for one month = 0.04 * x Cost of funds for one year = 12 * (0.04 * x) = 0.48 * x Profit? at end of year = income_for_year - cost_of_funds_for_one_year = (0.18 * x) - (0.48 * x) = forever loss",
"title": ""
},
{
"docid": "b5fd19ab54421c37827997573a990684",
"text": "There are really three routes in academic finance. 1) Corporate finance - you probably have enough math for this 2) Market forecasting and modeling - this relies more heavily on econometrics, or more basic math 3) Quantitative valuations - most of the work here is in exotic asymmetric derivatives, which is almost entirely differential equations.",
"title": ""
},
{
"docid": "bb740ba099d06d877310e698592e265b",
"text": "Finance at the PhD level requires a pretty complete understanding of linear algebra, multivariate calc (cIII), vector calc, stochastic calc, diff eq, and numerical analysis. As someone who had math for one of his majors for undergrad, it's not about the intuitive understanding but the abstract as well. Most of the finance professors that I had and researched under were originally undergrad for math. Very few of them actually started out in business roles/degrees....",
"title": ""
},
{
"docid": "e6a86727ce2c1f10f9574097f583a59e",
"text": "Shareholders are the equity holders. They mean the same thing. A simplified formula for the total value of a company is the value of its equity, plus the value of its debt, less its cash (for reasons I won't get into). There are usually other things to add or subtract, but that's the basic formula.",
"title": ""
},
{
"docid": "38a40a042d5b041ca4f66bd1f0adc2b9",
"text": "I work in asset pricing/market microstructure research so I do come across a decent amount of topics at work that utilize my applied math degree. For the topics I'm working on right now on it's usually time series or econometrics stuff like vector autoregression, principal components, regressions, etc. Some of my coworkers are working on papers that use stochastic calculus and other aspects of continuous time finance.",
"title": ""
},
{
"docid": "c7487e4e9f05ef9095d429fe366d9cc5",
"text": "The accounting equation, in short, is: This can be further broken down into: Which can be further broken down into: The GnuCash equation is right, though I would substitute the word equity in that equation with a more-specific paid-in capital. Equity is (simply put) made up of 2 parts: shareholders' equity and retained earnings. Shareholders' equity is the amount invested by shareholders. Retained earnings is the amount earned by the business on behalf of the shareholders. Retained earnings is directly affected by your net income (which is income minus expenses). An increase in income will result in an increase in retained earnings. This must be balanced somewhere. Usually an increase in an asset. It may also be balanced by a decrease in equity. Likewise, increase in expenses will result in a decrease in retained earnings, which must also be balanced.",
"title": ""
},
{
"docid": "1fec42beb84e2821dd90cd035446ea8d",
"text": "Something like cost = a × avg_spreadb + c × volatilityd × (order_size/avg_volume)e. Different brokers have different formulas, and different trading patterns will have different coefficients.",
"title": ""
},
{
"docid": "3b3c2b1d131d56194f84623d88452dd4",
"text": "I'm a third-year PhD student in Finance at a state university in the Southeast. Accordingly, I do not have time write a detailed answer for you, because I am studying for a test. You can PM me sometime after Thursday, and I can give you my perspective.",
"title": ""
},
{
"docid": "41372fce8481716fd887860e6d3e94db",
"text": "The three places you want to focus on are the income statement, the balance sheet, and cash flow statement. The standard measure for multiple of income is the P/E or price earnings ratio For the balance sheet, the debt to equity or debt to capital (debt+equity) ratio. For cash generation, price to cash flow, or price to free cash flow. (The lower the better, all other things being equal, for all three ratios.)",
"title": ""
},
{
"docid": "faa8b56eb94acc86948a4221b8a79aa5",
"text": "Assuming you were immersed in math with your CS degree, the book **'A Non-Random Walk Down Wall Street' by Andrew Lo** is a very interesting book about the random walk hypothesis and it's application to financial markets and how efficient markets might not necessarily imply complete randomness. Lots of higher level concepts in the book but it's an interesting topic if you are trying to branch out into the quant world. The book isn't very specific towards algorithmic trading but it's good for concept and ideas. Especially for general finance, that will give you a good run down about markets and the way we tackle modern finance. **A Random Walk Down Wall Street** (which the book above is named after) by **Burton Malkiel** is also supposed to be a good read and many have suggested reading it before the one I listed above, but there really isn't a need to do so. For investing specifically, many mention **'The Intelligent Investor' by Benjamin Graham** who is the role model for the infamous Warren Buffet. It's an older book and really dry and I think kind of out dated but mostly still relevant. It's more specifically about individual trading rather than markets as a whole or general markets. It sounds like you want to learn more about markets and finance rather than simply trading or buying stocks. So I'd stick to the Andrew Lo book first. --- Also, since you might not know, it would be a good idea to understand the capital asset pricing model, free cash flow models, and maybe some dividend discount models, the last of which isn't so much relevant but good foundations for your finance knowledge. They are models using various financial concepts (TVM is almost used in every case) and utilizing them in various ways to model certain concepts. You'd most likely be immersed in many of these topics by reading a math-oriented Finance book. Try to stay away from those penny stock trading books, I don't think I need to tell a math major (who is probably much smarter than I am) that you don't need to be engaging in penny stocks, but do your DD and come to a conclusion yourself if you'd like. I'm not sure what career path you're trying to go down (personal trading, quant firm analyst, regular analyst, etc etc) but it sounds like you have the credentials to be doing quant trading. --- Check out www.quantopian.com. It's a website with a python engine that has all the necessary libraries installed into the website which means you don't have to go through the trouble yourself (and yes, it is fucking trouble--you need a very outdated OS to run one of the libraries). It has a lot of resources to get into algorithmic trading and you can begin coding immediately. You'd need to learn a little bit of python to get into this but most of it will be using matplotlib, pandas, or some other library and its own personal syntax. Learning about alpha factors and the Pipeline API is also moderately difficult to get down but entirely possible within a short amount of dedicated time. Also, if you want to get into algorithmic trading, check out Sentdex on youtube. He's a python programmer who does a lot of videos on this very topic and has his own tool on quantopian called 'Sentiment Analyzer' (or something like that) which basically quantifies sentiment around any given security using web scrapers to scrape various news and media outlets. Crazy cool stuff being developed over there and if you're good, you can even be partnered with investors at quantopian and share in profits. You can also deploy your algorithms through the website onto various trading platforms such as Robinhood and another broker and run your algorithms yourself. Lots of cool stuff being developed in the finance sector right now. Modern corporate finance and investment knowledge is built on quite old theorems and insights so expect a lot of things to change in today's world. --- With a math degree, finance should be like algebra I back in the day. You just gotta get familiar with all of the different rules and ideas and concepts. There isn't that much difficult math until you begin getting into higher level finance and theory, which mostly deals with statistics anyways like covariance and regression and other statistic-related concepts. Any other math is simple arithmetic.",
"title": ""
},
{
"docid": "70591461ef9fce7e7b32b7b259bf14f6",
"text": "The quant aspect '''''. This is the kind of math I was wondering if it existed, but now it sounds like it is much more complex in reality then optimizing by evaluating different cost of capital. Thank you for sharing",
"title": ""
},
{
"docid": "6f35493317b0fa9767a0827ede4a4505",
"text": "I appreciate it. I didn't operate under selling the asset year five but other than that I followed this example. I appreciate the help. These assignments are just poorly laid out. Financial management also plays on different calculation interactions so it is difficult for me to easily identify the intent at times. Thanks again.",
"title": ""
},
{
"docid": "3f974af98e04b2d8ee10c98b4d2c5712",
"text": "I ended up writing a simulation in R. Here is my code: It produces a plot like this: This code assumes you have a lump sum and either wish to pay down a loan or invest it all immediately. Feedback welcome.",
"title": ""
},
{
"docid": "8782dff9abb053f4a2d9a706b69d94c2",
"text": "I'm not too worried about the math. I can't speak for the calculus, but I seriously doubt the statistics I will use will be more complicated than what I used in Econometrics. Where will calculus come into play? I haven't heard any of my finance major friends talk about using anything more than simple derivation.",
"title": ""
},
{
"docid": "4cf40930621416f1a038cdfc953e9eb6",
"text": "Average rates of return usually assume compounding, so your formula would be for annual compounding ,or for continuous compounding.",
"title": ""
}
] |
fiqa
|
b4bd366a4248ea4851bea49e5639e07a
|
Is it worth it to re-finance my car loan?
|
[
{
"docid": "1907a57fe43b6cf6cbaa2ac2986d6ec0",
"text": "If you're a bit into the loan, then they're probably hoping that you'll take longer to pay off the loan. Is there a fee for refinancing the loan? If so, be sure to take that into account. A smart way to approach it (assuming that the fees are low or zero) would be to continue making the same payment you had been before the refinance. Then you'll end your loan ahead of schedule. (This assumes that there's no prepayment penalty.)",
"title": ""
},
{
"docid": "942788075ab6b9367d6b775da27c8ac7",
"text": "Seems like a good deal to me. You are paying less interest over the lifetime of the loan. And what I would do is take the difference between the new payments and the old, put it into a savings account each month, and when the savings account exceeds the balance of the loan pay it off.",
"title": ""
}
] |
[
{
"docid": "d9f4054961c225c6fdbe00d297ba5b9a",
"text": "As well as paying 8% interest on your loan (i.e. $800/year), you're also wasting money on the car: depreciation, insurance etc. So it's worth a lot to you to get out of it. Set against that is the risk of having to borrow the $3000 you'll be taking from your emergency fund at a higher interest rate (say 30%?) for at most 6 months, which would only cost you $300-$400 even if it happens. You'll also be giving up a small amount of interest on the $3000, but at current interest rates that pretty much negligible. There is a small chance that an emergency would also cause the available credit on your credit cards to disappear, but in the short term that should be pretty unlikely. So I think the balance is overwhelmingly in favour of getting out of the loan as soon as you can.",
"title": ""
},
{
"docid": "2a4e4589e77150edb6090a7c725d0b86",
"text": "I am going to give advice that is slightly differently based on my own experiences. First, regarding the financing, I have found that the dealers do in fact have access to the best interest rates, but only after negotiating with a better financing offer from a bank. When I bought my current car, the dealer was offering somewhere around 3.3%, which I knew was way above the current industry standard and I knew I had good credit. So, like I did with my previous car and my wife's car, I went to local and national banks, came back with deals around 2.5 or 2.6%. When I told the dealer, they were able to offer 2.19%. So it's ok to go with the dealer's financing, just never take them at face value. Whatever they offer you and no matter how much they insist it's the best deal, never believe it! They can do better! With my first car, I had little credit history, similar to your situation, and interest rates were much higher then, like 6 - 8%. The dealer offered me 10%. I almost walked out the door laughing. I went to my own bank and they offered me 8%, which was still high, but better than 10%. Suddenly, the dealer could do 7.5% with a 0.25% discount if I auto-pay through my checking account. Down-payment wise, there is nothing wrong with a 35% down payment. When I purchased my current car, I put 50% down. All else being equal, the more cash down, the better off you'll be. The only issue is to weigh that down payment and interest rate against the cost of other debts you may have. If you have a 7% student loan and the car loan is only 3%, you're better off paying the minimum on the car and using your cash to pay down your student loan. Unless your student loan balance is significantly more than the 8k you need to finance (like a 20k or 30k loan). Also remember that a car is a depreciating asset. I pay off cars as fast as I can. They are terrible debt to have. A home can rise in value, offsetting a mortgage. Your education keeps you employed and employable and will certainly not make you dumber, so that is a win. But a car? You pay $15k for a car that will be worth $14k the next day and $10k a year from now. It's easy to get underwater with a car loan if the down payment is small, interest rate high, and the car loses value quickly. To make sure I answer your questions: Do you guys think it's a good idea to put that much down on the car? If you can afford it and it will not interfere with repayment of much higher interest debts, then yes. A car loan is a major liability, so if you can minimize the debt, you'll be better off. What interest rate is reasonable based on my credit score? I am not a banker, loan officer, or dealer, so I cannot answer this with much credibility. But given today's market, 2.5 - 4% seems reasonable. Do you think I'll get approved? Probably, but only one way to find out!",
"title": ""
},
{
"docid": "8cc41e5f9dfa3cd2344fc7977f6f5230",
"text": "There are several factors here. Firstly, there's opportunity cost, i.e. what you would get with the money elsewhere. If you have higher interest opportunities (investing, paying down debt) elsewhere, you could be paying that down instead. There's also domino effects: by reducing your liquid savings to or below the minimum, you can't move any of it into tax advantaged retirement accounts earning higher interest. Then there's the insurance costs. You are required to buy extra insurance to protect your lender. You should factor in the extra insurance you would buy vs the insurance required. Given that you can buy the car yourself, catastrophic insurance may not be necessary, or you may prefer a higher deductible than your lender will allow. If you're not sufficiently capitalized, you may need gap insurance to cover when your car depreciates faster than your loan is paid down. A 30 percent payment should be enough to not need it though. Finally, there's some value in having options. If you have the loan and the cash, you can likely pay it off without penalty. But it will be harder to get the loan if you don't finance it. Maybe you can take out a loan against the car later, but I haven't looked into the fees that might incur. If it's any help, I'm in the last stretch of a 3 year car loan. At the time paying in cash wasn't an option, and having done it I recognize that it's more complicated than it seems.",
"title": ""
},
{
"docid": "7d7575fa2e1a32d1a5097cb24a3a190c",
"text": "\"It all depends on your loan contract, and the way most are written, the 10 day thing will not help. However, assuming that the contract is written in such a way to allow this, the difference will be negligible. By \"\"saving money\"\" I assume you mean the amount of interest paid. There is really two ways of doing this. If you carry the loan to term paying the indicated amount on the due date you will pay $6,140 in interest. An increase of over 33% to the cost of the car. Yikes, that is a lot of money. You should seek to minimize your interest expense. One way to do this is to reduce your rate. Applying for a new loan that is at a more reasonable 6% and continuing to pay the ~285 per month will reduce the term to 59 months and only cost you $2,245 in interest. A large savings. Even better is to work a second job and earn an extra 1,000 per month. Then bundle it with your 285 payment and shoot that at the loan. This way you will only pay $965 in interest, and have it paid off in a year. Once you do that, you can stick $300/month or so in a savings account or other investment and pay for every other car in cash. Making choices like these leads to building wealth. So the question becomes do you want to spend the rest of your life on the hamster wheel of car payments, or do you want to spend one year in pain so you make smart choices in the future? The choice is yours.\"",
"title": ""
},
{
"docid": "ef7053fffebc96b8ba633d6201f49f4d",
"text": "Before we were married my wife financed a car at a terrible rate. I think it was around 20%. When trying to refinance it the remaining loan was much larger than the value of the car, so no one was interested in refinancing. I was able to do a balance transfer to a credit card around 10%. This did take on a bit of risk, which almost came up when the car was totaled in an accident. Fortunately the remaining balance was now less than the value of the car, otherwise I would have been stuck with a credit card payment and no vehicle.",
"title": ""
},
{
"docid": "67c1f9a423ceb1f692cfb733a892d559",
"text": "From personal experience (I financed a new car from the dealer/manufacturer within weeks of graduating, still on an F1-OPT):",
"title": ""
},
{
"docid": "843bd070c05793eb9f6ca5f028f0c13c",
"text": "Buying and selling cars a lot is something that makes money if you are a dealer but usually doesn't if you are not. The question to ask yourself is why you want to sell it. If it is because you are feeling poor and need money, it might make sense to sell it, particularly if you don't need it. But $12k or whatever is not a ton of money. If you do need a car and will have to replace it if you sell it then selling it is likely not a good idea. If it is because you want a nicer car and can afford to upgrade, then selling it is likely a good idea. The fact that you have had it for years and not paid off the loan tells me this situation is unlikely. You should think of the value of your car to you (and the potential cost of replacing it) and the amount of money you owe on it as two different things. The debt you have is a debt that you will need to pay no matter what you do with the car or how its value changes. The value of the car to you is pretty much a separate issue from how much you have outstanding in debt. If you want to sell the car to pay off the debt that is fine if you don't need the car or if you can get a suitable replacement car for MUCH less (which I find unlikely).",
"title": ""
},
{
"docid": "78b7e7d1ebadbacbc9ae26e90af8340f",
"text": "The first thing that strikes me is: Is this a time-limited offer? Because if you can expect the offer to still be valid in a few weeks, why not just wait that month (which will earn you the money) and buy the car then? The second thing you need to consider is obviously the risk that in the interim, there will be an actual emergency which would require the money that you no longer have. The third thing to consider is whether you need the car now. Do you require a car to get around and your current one is breaking down, perhaps even to the point that repairing it would cost you more than buying a new car and it is currently not safe to drive? If so, compare the cost of repairing to the cost of buying; if the difference is small, and the new car would be more likely to be reliable than the old car after spending the money, then it can make sense to buy a new car and perhaps sell the old one in its current condition to someone who likes to tinker. (Even if you only recover a few hundreds of dollars, that's still money that perhaps you wouldn't otherwise have.) The fourth thing I would consider, especially given the time frame involved, is: Can you get a loan to buy the new car? Even if the interest rate is high, one month's worth of interest expense won't set you back very far, and it will keep the money in your emergency fund for if there is an actual emergency in the weeks ahead. Doing so might be a better choice than to take the money out of the emergency fund, if you have the opportunity; save the emergency fund for when that opportunity does not exist. And of course, without knowing how much you earn, take care to not end up with a car that is no more reliable than what you have now. Without knowing how much you earn and what the car you have in mind would cost, it's hard to say anything for certain, but if the car you have in mind costs less than a month's worth of net pay for you, consider whether it's likely to be reliable. Maybe you are making an absolutely stellar pay and the car will be perfectly fine; but there's that risk. Running the car by a mechanic to have it briefly checked out before buying it may be a wise move, just to make sure that you don't end up with a large car repair expense in a few months when the transmission gives up, for example.",
"title": ""
},
{
"docid": "b792851016cf8ff3dd6156ff029a2333",
"text": "\"So this has been bugging me for a while, because I am facing a similar dilemma and I don't think anyone gave a clear answer. I bought a 2012 kia soul in 2012. 36 months financing at 300/mo. Will be done with my car loan in 2015. I plan on keeping it, while saving the same amount of money 300/mo until I buy my next car. But, I also have an option of trading it in for the the next car. Question: should I trade it in in 2015. should I keep it for 2 years more? 3 years more, before I buy the next car? What makes most financial sense and savings. I tried to dig up some data on edmunds - the trade-in value and \"\"true cost to own\"\" calculator. The make and model of my car started in 2010, so I do not have historical data, as well as \"\"cost to own\"\" calculator only spans 5 years. So - this is what I came up with: Where numbers in blue are totally made up/because I don't have the data for it. Granted, the trade-in values for the \"\"future\"\" years are guesstimated - based on Kia Soul's trade-in values from previous years (2010, 2011, 2012) But, this is handy, and as it gets closer to 2015 and beyond, I can re-plug in the data where it is available and have a better understanding of the trade-in vs keep it longer decision. Hope this helps. If the analysis is totally off the rocker, please let me know - i'll adjust it/delete it. Thank you\"",
"title": ""
},
{
"docid": "cd7306a60bf14d01085ce39d5567c46d",
"text": "Two adages come to mind. Never finance a depreciating asset. If you can't pay cash for a car, you can't afford it. If you decide you can finance at a low rate and invest at a higher one, you're leveraging your capital. The risk here is that your investment drops in value, or your cash flow stops and you are unable to continue payments and have to sell the car, or surrender it. There are fewer risks if you buy the car outright. There is one cost that is not considered though. Opportunity cost. Since you've declared transportation necessary, I'd say that opportunity cost is worth the lower risk, assuming you have enough cash left after buying a car to fund your emergency fund. Which brings me to my final point. Be sure to buy a quality used car, not a new one. Your emergency fund should be able to replace the car completely, in the case of a total loss where you are at fault and the loss is not covered by insurance. TLDR: My opinion is that it would be better to pay for a quality, efficient, basic transportation car up front than to take on a debt.",
"title": ""
},
{
"docid": "46e0fd4a0513b1e04e20f5ec1819ed82",
"text": "Sometimes I think it helps to think of the scenario in reverse. If you had a completely paid off car, would you take out a title loan (even at 0%) for a few months to put the cash in a low-interest savings account? For me, I think the risk of losing the car due to non-payment outweighs the tens of dollars I might earn.",
"title": ""
},
{
"docid": "ab26a4fd6f538c04bfc2f5b70df5e51d",
"text": "Personally, I don't think that the interest from the car loan is worth the credit history you're building through it. There are other ways to build credit that don't require you to pay interest, like the credit card you mentioned (so long as you keep paying off the balance). So I'd go that route: ditch the auto loan and replace it with a line of consumer credit. Just be careful not to overspend because the card will likely have a higher interest rate than your loan.",
"title": ""
},
{
"docid": "584d3a1d780d21200d209d91a428d8b4",
"text": "Cash price is $22,500. Financed, it's the same thing (0% interest) but you pay a $1500 fee. 1500/22500 = 6.6%. Basically the APR for your loan is 1.1% per year but you are paying it all upfront. Opportunity cost: If you take the $22,500 you plan to pay for the car and invested it, could you earn more than the $1500 interest on the car loan? According to google, as of today you can get 1 year CD @ 1.25% so yes. It's likely that interest rates will be going up in medium term so you can potentially earn even more. Insurance cost: If you finance you'll have to get comprehensive insurance which could be costly. However, if you are planning to get it anyway (it's a brand new car after all), that's a wash. Which brings me to my main point: Why do you have $90k in a savings account? Even if you are planning to buy a house you should have that money invested in liquid assets earning you interest. Conclusion: Take the cheap money while it's available. You never know when interest rates will go up again.",
"title": ""
},
{
"docid": "582b9c82eec0476683fba7823cf950ac",
"text": "\"Short answer: If you bought the car -- as opposed to leasing it -- there is no one to \"\"turn it in\"\" to. The reality of cars and car loans is this: The value of a car tends to fall rapidly the first couple of years, then more slowly after that. Like it might lose $2000 the first year, $1000 the second, $500 the third, etc. What you owe on a loan falls slowly at first, because a lot of your payment is going to interest, but then as time goes on you pay off the loan faster and faster. So you may pay off $1000 the first year, $1100 the second, etc. (I'm just making up numbers, depends on the value of the car, and the term and interest rate of the loan, but that's the general idea.) Combining these two things means that in the first few years after you buy a car, if you had a small or no down payment, you might well owe more on the car than it is worth. That's just how the numbers work out. If you keep the car long enough, eventually you hit a point where it is worth more than you owe. Keep it until you've paid off the loan and you owe $0 but the car is still worth SOMETHING, exactly how much depending on its condition and other factors. If you just use the car and pay off the loan, i.e. if you don't sell the car or refinance the loan or some such, then this doesn't matter very much. You make your loan payments, and you have use of the car. What difference does the book value of the car at any given moment matter to you? If the idea of owing more than the car is worth bothers you in principle, then in the future you could make a larger down payment. Or make extra payments on the loan the first couple of years to knock the principle down faster. That's about the only things you can do. Well, you could buy with cash so you owe zero and the car is always worth more than you owe. But given that you are where you are: If you just keep the car and keep driving it and keep paying the loan, then you are exactly where you thought you would be when you bought the car, right? I mean, the day you bought the car, you presumably weren't thinking that at some future date you could refinance at a lower rate. How would you know? So I think the easy answer is: Don't sweat it. Just enjoy the car and pay your bills.\"",
"title": ""
},
{
"docid": "7be13fa59cf116fba48f6e48a8d156b8",
"text": "\"First off learn from this: Never cosign again. There are plenty of other \"\"tales of woe\"\" outlined on this site that started and ended similarly. Secondly do what you can to get off of the loan. First I'd go back to her dad and offer him $1000 to take you off the loan and sign over the car. Maybe go up to $3000 if you have that much cash. If that doesn't work go to the bank and offer them half of the loan balance to take you off. You can sign a personal loan for that amount (maybe). Whatever it takes to get off the loan. If she has a new BF offer him the same deal as the dad. Why do you have to do this? Because you owned an asset that was once valued at 13K and is valued at (probably) less than 4K. Given that you have a loan on it the leverage works against you causing you to lose more money. The goal now is to cut your losses and learn from your mistakes. I feel like the goal of your post was to make your ex-gf look bad. It's more important to do some self examination. If she was such a bad person why did you date her? Why did you enter a business transaction with her? I'd recommend seeking counseling on why you make such poor choices and to help you avoid them in the future. Along these lines I'd also examine your goals in life. If your desire is to be a wealthy person, then why would you borrow money to buy a car? Seek to imitate rich people to become rich. Picking the right friends and mates is an important part of this. If you do not have a desire to be a wealthy person what does it matter? Losing 13K over seven months is a small step in the \"\"right\"\" direction.\"",
"title": ""
}
] |
fiqa
|
659d39d40a263741db6fcf023b148191
|
What's a good personal finance management web app that I can use in Canada?
|
[
{
"docid": "1f4604ce91a2ff65c4323883bf474f40",
"text": "Now, if you're still intrested, Mint.com works also for Canadian banks. Mint Canada",
"title": ""
},
{
"docid": "31589514b8b0a6912d32a466d47f31f7",
"text": "Yodlee will also work. I asked a similar question (and provided answers) here. Thrive, so far, is the best in my opinion. Their tech support is top notch and their UI is far superior to Yodlee's (which provides the backend for Mint).",
"title": ""
},
{
"docid": "3bda3e210ba9b35e0f5b54f23bb862c4",
"text": "I use MoneyStrands (formerly called Expensr), but mostly just to track expenses and look at reports on my spending habits. It has some really pretty charts, with the ability to drill down into categories and sub-categories, or graph monthly spending for any custom date range. It does a half-decent job of auto-categorizing the imported bank transactions, and you can set up additional rules for common vendors, but I still have to do some manual work after each import. It does a good job of integrating my credit cards, bank accounts, and I can even manually add cash transactions. It has some basic budgeting capabilities, but they're not very useful for someone who needs to carefully budget thier monthly spending. Another one I've heard about is mint.com, but it only supports American banks (last I heard, anyway).",
"title": ""
},
{
"docid": "d6a9e0f25e6a651144af61739899b4ea",
"text": "Here's a link with comparison of various online and offline PF software: http://personalfinancesoftwarereviews.com/compare-personal-finance-software/",
"title": ""
},
{
"docid": "7678a2a417f6edd7cf3a34e5d79b8f75",
"text": "Now, keep in mind I'm biased because I'm an engineer at this company, but FutureAdvisor.com provides advice on your savings and investments. We currently help users optimize their portfolios for retirement savings, but plan on rolling our more savings goals in the future.",
"title": ""
},
{
"docid": "67e6df622dd88179304c2e78cbeab65a",
"text": "CashBase has a web app, an iPhone app and an Android app, all sync'ed up. It doesn't integrate with banks automatically, but you can import bank statements as CSV. Disclosure: Filip is CashBase's founder.",
"title": ""
}
] |
[
{
"docid": "5055129e03954ba06bc3c85dc6e8e039",
"text": "Just saw the update: Here's some ETFs for Canada from Vanguard.",
"title": ""
},
{
"docid": "2a7deb3d6c5891fea008a3d261740e7d",
"text": "\"Credit scores are not such a big deal in Canada as they are in the US and even some European countries. One reason for this: the Social Insurance Number (SIN number) isn't used for so many purposes like the Social Security Number (SSN) in the US. The SIN number isn't even required to get credit (but with some exceptions it is needed to open an interest-bearing savings account, so that the interest income can be reported). You can refuse to provide the SIN number to most private companies. Canada also has one of the highest per-capita immigration rates of any large country, so new arrivals are expected, and services are geared up for them. Most of the banks offer special deals for \"\"New Canadians\"\". You should get a credit card (even if just a secured credit card) through them with one of these offers to start a credit file anyway, but there's no need to actually use it much. Auto-paying a utility bill through the card, and paying it off in full each month, is one way to keep it active. No need to ever pay any interest. Most major apartment rental firms will expect a good proportion of their renters to be new to Canada, so should have procedures in place to deal with it (such as a higher deposit). You should not give them your SIN for a credit check, even when you're more established. Same for utilities, they can just charge a higher deposit if they can't credit check you. For private landlords, everything is negotiable (but see the laws link at the end of this answer). You will later need a credit rating for a mortgage on a house (if not paying cash), so it's worth getting that one token credit card. Useful for car rental also. Here's a fairly complete summary of the laws on renting in Canada, which includes the maximum deposits that can be asked for, and notice periods.\"",
"title": ""
},
{
"docid": "93651496bbc8ad51ee18fb100f61dfbc",
"text": "I used to use Quicken, but support for that has been suspended in the UK. I had started using Mvelopes, but support for that was suspended as well! What I use now is an IPhone app called IXpenseit to track my spending.",
"title": ""
},
{
"docid": "de18fec08e2cf256ee9a77dc22541ab7",
"text": "If your requirements are hard (must have $1000/month, must have the same or bigger in capital at the end), stocks are a poor choice of investment. However, in many cases, people are willing to tolerate some level of risk to achieve the expected returns. You also do not mention inflation, which can take quite a lot out of your portfolio over the course of ten years. If we make some simplifying assumptions, you want to generate $12,000 a year. You can realistically expect the (whole) stock market, long term (i.e. over time periods substantially longer than 10 years), to return approximately 4 - 5% after factoring in inflation. That means an investment of $240,000 - $300,000 (the math is simplified somewhat here). If you don't care about inflation, you can up the percentage rather somewhat. According to this article, the S&P 500 returned an average of 11.31% from 1928 through 2010 (not factoring in inflation), which would require an investment of approximately $106,100. But! This opens you up to substantial risk. The stock market may go down 30% this year! According to the above article, the S&P returned only 3.54% from 2001 to 2010. Long-term, it goes up, but your investment case is really unsuited to investing in an index to the entire stock market given your requirements. You may be better suited investing primarily in stable bonds, or perhaps a mix of bonds and stocks. Alternatively, you may want to consider even more stable investments such as treasury notes. Treasury notes are all but guaranteed, but with a lousy rate of return. Heck, you could consider a GIC (that may be Canada-only) or even a savings account. There's also the possibility of purchasing an annuity, though almost everyone will advise against such. Personally, I'd go for a mutual fund which invested approximately 70% bonds and the rest in stocks over such a time period. Something like ING Direct's Streetwise Balanced Income Portfolio, if you were in Canada. It substantially lowers your expected return but also lowers your risk. I can't honestly say what the expected return there is; at this point, it's returned 4% per year (before inflation), but has been around only since the beginning of 2008. And to be clear, this is absolutely not free of risk.",
"title": ""
},
{
"docid": "fc31334f740991c0099db5e9dec0d62d",
"text": "TD now has crossborder banking so you can set up a no-fee no-interest USD account with Tdbank.com and transfer money and pay bills in the US. You just need a minimum balance of $100. I might try Paypal before going that route though.",
"title": ""
},
{
"docid": "e7c1db1307ddf6bb11778febb7ef6e67",
"text": "Mint.com is a web app with an iPhone (and Android) app. Also, You Need A Budget appears to support all three.",
"title": ""
},
{
"docid": "80cd38443246f7d211761deb6020b2fc",
"text": "\"I've just recently launched an open source wealth management platform - wealthbot.io ... \"\"Webo\"\" is mostly targeted at RIA's to help the manage multiple portfolios, etc. Take a look at the demo at demo.wealthbot.io, you'll also find links to github, etc. there. It's a rather involved project, but if you are looking for use cases of rebalancing, portfolio accounting, custodian integration, tax loss harvesting, and many other features available at some of the popular robo-advisors, you might find it interesting.\"",
"title": ""
},
{
"docid": "4e78289e2a610f6650a2b07fc06b8b60",
"text": "\"I ended up with YNAB. It worked quite well, and I highly recommend it. It does cost money, but I found it saved me far more than its cost in the first month alone, since I saved between $500 and $1000. And it's flexible; when you overspend on something you can flex your budget, rather than it breaking and you give up in frustration. Dropbox support has recently been added, \"\"cloudifying\"\" it and making it where the smartphone apps can be really useful. I use the iPhone app occasionally, having recently transitioned to an iPhone.\"",
"title": ""
},
{
"docid": "20dc26fdf817c8a9093762d1cb56b384",
"text": "\"Quicken for Mac will track stocks and mutual funds and allows you to set the \"\"home\"\" currency.\"",
"title": ""
},
{
"docid": "500aba91d79281094dbadba775df5b7a",
"text": "I'm using iBank on my Mac here and that definitely supports different currencies and is also supposed to be able to track investments (I haven't used it to track investments yet, hence the 'supposed to' caveat).",
"title": ""
},
{
"docid": "fda5f5c4f7c382202bb5fab7941277f4",
"text": "\"The Financial Consumer Agency of Canada (FCAC) has a page specifically about working with a financial planner or advisor. It's a good starting point if you are thinking about getting a financial professional to help you plan and manage your investments. In the \"\"Where To Look\"\" section on that page, FCAC refers to a handful of industry associations. I'll specifically highlight the Financial Planning Standards Council's \"\"Find a planner\"\" page, which can help you locate a Certified Financial Planner (CFP). Choose financial advice carefully. Prefer certified professionals who charge a set fee for service over advisors who work on commission to push investment products. Commission-based advice is seldom unbiased. MoneySense magazine published a listing last year for where to find a fee-only financial planner, calling it \"\"The most comprehensive listing of Canadian fee-only financial planners on the web\"\" — but do note the caveat (near the bottom of the page) that the individuals & firms have not been screened. Do your own due diligence and check references.\"",
"title": ""
},
{
"docid": "37a1e67549592b0ff3bda0dcc97552a7",
"text": "I don't know answers that would be specific to Canada but one of the main ETF funds that tracks gold prices is GLD (SPDR Gold Trust) another is IAU (iShares Gold Trust). Also, there are several ETF's that combine different precious metals together and can be traded. You can find a fairly decent list here on the Stock Encylopedia site.",
"title": ""
},
{
"docid": "5685b1ded2c93079cd5e6b11fdc85535",
"text": "I found that an application already exists which does virtually everything I want to do with a reasonable interface. Its called My Personal Index. It has allowed me to look at my asset allocation all in one place. I'll have to enter: The features which solve my problems above include: Note - This is related to an earlier post I made regarding dollar cost averaging and determining rate of returns. (I finally got off my duff and did something about it)",
"title": ""
},
{
"docid": "f8bac368ca853f6b6e11ffa469ed47e9",
"text": "Envudu (envudu.com) looks very promising, and I think what they are planning to put out will do essentially everything you want. It's a single prepaid card, but with a connected app. On the app you choose which budget category you're going to spend on next, and then swipe your card. Your purchase gets deducted from that category. There aren't a ton of details yet on their website (e.g., what happens if you try to swipe on a category that doesn't have the funds available?) and there is going to be a $20/year fee, but I think it meets all of your criteria, even though it's a single card--you'll just need to use a smartphone with it.",
"title": ""
},
{
"docid": "ab5d1d5274c44cce8eee1cc4ef8c802d",
"text": "The idea being that if / when the CAD recovers I could see a gain of ~30%. That is the big if, maybe the USD and CAD will return to their previous exchange rates, maybe the CAD will fall further, you just don't know. You should try to keep a diversified pool of investments, that may include some cash in various currencies but unless you think you will need the money in the next few years it should probablly be mostly in other things. If you do think you will need the money in the next few years it should probablly be in a currency that is stable relative to the things you are likely to need it for.",
"title": ""
}
] |
fiqa
|
9be6c22410f9ca43650b854fb944cb8a
|
Legal Financing
|
[
{
"docid": "7bc7eac7b3bba24f24fc2fa0cd9e165a",
"text": "Find a lawyer or law firm who wants to represent you and talk to them.",
"title": ""
}
] |
[
{
"docid": "2dbf368768764be2d269986232ac2534",
"text": "Sorry, I was thinking of PCs. which are professional corporations. LLPs are limited partnerships. If he has partners, an LLP might be suitable. Again, talk to a lawyer and accountant to see what is best for your friend.",
"title": ""
},
{
"docid": "03a783452b4908e9fcc071843916546c",
"text": "Depending on the specific bond, here is the official info. http://www.wilmingtontrust.com/gmbondholders/index.html Bottom line, it won't be determined for a while yet, as the filing with the Bankruptcy Court still has lots of blanks.",
"title": ""
},
{
"docid": "bc86e5c2e5f05a875a6661be66ed5bcb",
"text": "Sometimes invested capital is expected to earn interest, I've seen this be a stipulation in LLC operating agreements and Corporate bylaws. I thought this arrangement looks a little less than fair. BTW I'm a college freshman, though I do the finances for my parents' regulatory compliance and governance consulting company. Anyhow, that's just my two cents.",
"title": ""
},
{
"docid": "cdede2d6ab1995907a3815ae89f6983d",
"text": "it sounds like you don't have experience in this, and neither does your *investor*; which is a recipe for disaster (pun intended). Your first order of business is to check whether your investor is an *Accredited Investor* (google to see what it means), if s/he's not, **walk away**. If s/he's an accredited investor, find a lawyer who can help you navigate this process, however these are the issues: * lawyers are expensive, and lawyers who have experience in these type of transactions are even more expensive * you actually need 2 lawyers, one for you and one for the investor * if neither of you have experience, there will be a lot more billable hours from the lawyers..... In principle this can go 3 ways: 1. The investors give you a loan, you pay them interests on a periodic basis, and then also principal. Items to be negotiated: interest rates, repayment schedule, collateral, personal guarantees. Highly unlikely this is what the investors wants. 2. The Investors get equity. items to be negotiated: your compensation, % of ownership, how profits are divided, how profits are paid; who gets to decide what. 3. A combination of 1 and 2 above, a *Convertible Note*. There's a lot more, too much for a Reddit post. There's not an easy ELI5.",
"title": ""
},
{
"docid": "a3ead6164c50ccbd9cdb1398b9d611c2",
"text": "I don't know if this is exactly what you're looking for but Seedrs sorta fits what you're looking for. Private companies can raise money through funding rounds on Seedrs website. It wouldn't necessarily be local companies though. I've only recently found it myself so not sure if it has a uk or European slant to it. Personally I think it's a very interesting concept, private equity through crowd funding.",
"title": ""
},
{
"docid": "ff8f7a486adf61b296339b15fb9d2700",
"text": "Thanks for that, it did help. I think my issue is I don't work in finance itself, I'm a lawyer, and 'capital' generally has a very specific meaning in English company law, where it refers exclusively to shareholder capital. I realise capital in finance terms includes both debt and equity investment.",
"title": ""
},
{
"docid": "73b60936102e9fb09b25d90ebf69c27a",
"text": "Thanks for the response - ok so maybe the funds could be partially crowd-sourced and partially funded by an accredited investor? Also yes - having an experienced adviser and a plan in place to replace existing directors sound like good plot devices. There doesn't really have to be a limitation to banks, the idea comes from the protagonists being upset with the status quo of banking practices (foreclosures, fees, investing in weapons/warzones etc.) what would you suggest?",
"title": ""
},
{
"docid": "64c8523399599ed83c91cf32321369d1",
"text": "Thanks for the tip, I know of one or two privately backed incubators I can approach but have already reached out to local government for access to their funding streams. I just want to make sure I cover all of my bases and seek as much of the available capital as I can. Is there a good way to approach/meet private investors?",
"title": ""
},
{
"docid": "43edc39c145d3f08bc65729cd44c8faa",
"text": "Yes this would be the same as when a corporation sells bonds. If it is the same as you describe. A product page would make it possible to give you a definitive answer. Also I strongly advice against taking out this type of loan if not for investment",
"title": ""
},
{
"docid": "0c0799dfc1e51a71540e0aa8aa6cb460",
"text": "Some qualitative factors to consider when deciding whether to finance with equity vs debt (for a publicly traded company): 1) The case for equity: Is the stock trading high relative to what management believes is its intrinsic value? If so, raising equity may be attractive since management would be raising a lot of $$$, but the downside is you give up future earnings since you are diluting current ownership 2) The case for debt: What is the expected return for the project in which the raised capital will be utilized for? Is its expected return higher than the interest payments (in % terms)? If so raising debt would be more attractive than raising equity since current ownership would not be diluted That's all I can think of off the top of my head right now, I'm sure there are a few more qualitative factors to consider but I think these two are the most intuitive",
"title": ""
},
{
"docid": "6ba706c8c818d2b2b72005061275a4ff",
"text": "\"OK, reading between the lines here it looks like the services offered by your company are of an \"\"adult\"\" (possibly illegal?) nature and that this individual has actually paid you in full for the services rendered up to this point. The wrinkle here is that you say that you've been offered large cash \"\"gifts\"\" in return for unspecified future favours, but that your client hasn't provided a real Paypal account to do so. When you pressed him on it, he sent a fake email and invented a \"\"financial adviser\"\" to fob you off, then hasn't contacted you since. It's pretty clear that he hasn't got any intention of making these payments to you. What you're now proposing to do is to use his known banking details to collect money to cover those verbal promises. In pretty much every part of the world, that's a crime. Without a written agreement to use that payment method for those promises, he could easily call the police and have you arrested for theft of funds. The further wrinkle is that his actions (claiming to have made payment via paypal, forged email headers, etc) strongly suggest that this individual is involved in cyber-crime and may well have used a fake bank account to pay for your initial services. The bottom line here is that you need real legal advice, from an actual lawyer.\"",
"title": ""
},
{
"docid": "11a8caec7b9b9cee3197785a617e2402",
"text": "You don't need a finance degree, no, but what you do need is evidence. Mind linking some of your sources? Can you flesh it out in detail for us? If not, why are you crusading for a cause you have no domain knowledge of?",
"title": ""
},
{
"docid": "b303d03f0f9654a0cf1ce8ea80c29772",
"text": "For providing financing assistance to the clients, Invoice Finance and Factoring Services are provided by some recognized professional financial services providers in London. They can help in improving cash flows and credit control. Before applying for loans, a business has to undergo the lengthy processes and legal formalities. To simplify these procedures, Forfaiting Financial Services in London are provided to many organizations.",
"title": ""
},
{
"docid": "2fd09b10078171bba36eadd0d1d691d9",
"text": "\"Charging interest by non financial institutions is allowable. There is only one definition of illegal or criminal interest and this is regarding loan sharks. Section 347 of the Canadian Criminal Code makes it illegal to charge more than 60% annually. The biggest debate was whether or not \"\"pay day\"\" loan companies were breaking the law. The recent bill C-26 amends this section to exempt \"\"pay day\"\" loans from this definition.\"",
"title": ""
},
{
"docid": "b91395d788e717adcd6d557049113cfa",
"text": "He did not go into specifics but he said that a usual case would probably be around $10 to $20 million. And that they make the deal in a matter of days. The deal usually closes after extensive due diligence between them and another law firm.",
"title": ""
}
] |
fiqa
|
9189ffa2a5ebdc6a35c73a681a6234e0
|
How Should I Start my Finance Life and Invest?
|
[
{
"docid": "a15d9b3e75f2df1225a2d4ab3dd55f90",
"text": "The best way to start out is to know that even the experts typically under-perform the market, so you have no chance. Your best bet is to invest in diversified funds, either through something like Betterment or something like Vanguard's ETFs that track the markets. Buying individual stocks isn't typically a winning strategy.",
"title": ""
},
{
"docid": "d41d8cd98f00b204e9800998ecf8427e",
"text": "",
"title": ""
},
{
"docid": "46d7b4eb501583133d585dab4a756353",
"text": "I'd suggest looking at something like the Dummies series of books for this. Something like: Sometimes the books are combined into one big book. This would be the best bet. It's were I started. Every time I wondered something I just looked it up and learned. They are perfectly fine for the novice. Hope this helps.",
"title": ""
}
] |
[
{
"docid": "a12a08c1ab1f090461328b8bd919817b",
"text": "\"Your questions seek answers to specifics, but I feel that you may need more general help. There are two things, I feel, that you need to learn about in the general category of personal finance. Your asking questions about investing, but it is not as important, IMHO, as how you manage your day-to-day operations. For example, you should first learn to budget. In personal finance often times \"\"living on a budget\"\" equates to poor, or low income. That is hardly the case. A budget is a plan on how to spend money. It should be refreshed each and every month and your income should equal your expenses. You might have in your budget a $1200 trip into the city to see a concert, hardly what a low income person should have in theirs. Secondly you need to be deliberate about debt management. For some, they feel that having a car payment and having student loans are a necessary part of life and argue that paying them off is foolish as you can earn more from investments. Others argue for zero debt. I fall in the later. Using and carrying a balance on high interest CCs and having high leases or car payments are just dumb. They are also easy to wander into unless you are deliberate. Third you need to prepare for emergencies. Engineers still get laid off and hurt where they are unable to work. They get sued. Having the proper insurance and sufficient reserves in the bank help prevent debt. Now you can start looking into investments. Start off slow and deliberate with investing. Put some in your company 401K or open some mutual funds on the side. You can read about them and talk with advisers, for free, at Fidelity and Vanguard. Read books from the library. Most of all don't get caught up in too much hype. Things like Forex, options, life insurance, gold/silver, are not investments. They are tools for sales people to make fat commissions off the ignorant. You are fortunate in that Engineers are very likely to retire wealthy. They are part of the second largest demographic of first generation rich. The first is small business owners. To start out I would read Millionaire Next Door and Stop Acting Rich. For a debt free approach to life, check out Financial Peace University (FPU) by Dave Ramsey (video course). His lesson on insurance is excellent. I am an engineer, and my wife a project manager we found FPU life changing and regretted not getting on board sooner. Along these lines we have had some turmoil, recently, that became little more than an inconvenience because we were prepared.\"",
"title": ""
},
{
"docid": "732b1d87850d18987f69ce516b933752",
"text": "\"This Stack Exchange site is a nice place to find answers and ask questions. Good start! Moving away from the recursive answer... Simply distilling personal finance down to \"\"I have money, I'll need money in the future, what do I do\"\", an easily digestible book with how-to, multi-step guidelines is \"\"I Will Teach You To Be Rich\"\". The author talks about setting up the accounts you should have, making sure all your bills are paid automatically, saving on the big things and tips to increase your take home pay. That link goes to a compilation page on the blog with many of the most fundamental articles. However, \"\"The World’s Easiest Guide To Understanding Retirement Accounts\"\" is a particularly key article. While all the information is on the free blog, the book is well organized and concise. The Simple Dollar is a nice blog with frugal living tips, lifestyle assessments, financial thoughts and reader questions. The author also reviews about a book a week. Investing - hoping to get better returns than savings can provide while minimizing risk. This thread is an excellent list of books to learn about investing. I highly recommend \"\"The Bogleheads' Guide to Investing\"\" and \"\"The Only Investment Guide You'll Ever Need\"\". The world of investment vehicles is huge but it doesn't have to be complicated once you ignore all the fads and risky stuff. Index mutual funds are the place to start (and maybe end). Asset allocation and diversification are themes to guide you. The books on that list will teach you.\"",
"title": ""
},
{
"docid": "ddcd57afd6bc86c1fa0c5230b92e65dc",
"text": "The simplest way is to invest in a few ETFs, depending on your tolerance for risk; assuming you're very short-term risk tolerant you can invest almost all in a stock ETF like VOO or VTI. Stock market ETFs return close to 10% (unadjusted) over long periods of time, which will out-earn almost any other option and are very easy for a non-finance person to invest in (You don't trade actively - you leave the money there for years). If you want to hedge some of your risk, you can also invest in Bond funds, which tend to move up in stock market downturns - but if you're looking for the long term, you don't need to put much there. Otherwise, try to make sure you take advantage of tax breaks when you can - IRAs, 401Ks, etc.; most of those will have ETFs (whether Vanguard or similar) available to invest in. Look for funds that have low expense ratios and are fairly diversified (ie, don't just invest in one small sector of the economy); as long as the economy continues to grow, the ETFs will grow.",
"title": ""
},
{
"docid": "d12a01b8f903137662fada452e2939e5",
"text": "\"Congratulations. The first savings goal should be an emergency fund. Think of this not as an investment, but as insurance against life's woes. They happen and having this kind of money earmarked allows one to invest without needing to withdraw at an inopportune time. This should go into a \"\"high interest\"\" savings account or money market account. Figure three to six months of expenses. The next goal should be retirement savings. In the US this is typically done through 401K or if your company does not offer one, either a ROTH IRA or Traditional IRA. The goal should be about 15% of your income. You should favor a 401k match over just about anything else, and then a ROTH over that. The key to transforming from a broke college student into a person with a real job, and disposable income, is a budget. Otherwise you might just end up as a broke person with a real job (not fun). Part of your budget should include savings, spending, and giving. All three areas are the key to building wealth. Once you have all of those taking care of the real fun begins. That is you have an emergency fund, you are putting 15% to retirement, you are spending some on yourself, and giving to a charity of your choice. Then you can dream some with any money left over (after expenses of course). Do you want to retire early? Invest more for retirement. Looking to buy a home or own a bunch of rental property? Start educating yourself and invest for that. Are you passionate about a certain charity? Give more and save some money to take time off in order to volunteer for that charity. All that and more can be yours. Budgeting is a key concept, and the younger you start the easier it gets. While the financiers will disagree with me, you cannot really invest if you are borrowing money. Keep debt to zero or just on a primary residence. I can tell you from personal experience that I did not started building wealth until I made a firm commitment to being out of debt. Buy cars for cash and never pay credit card interest. Pay off student loans as soon as possible. For some reason the idea of giving to charity invokes rancor. A cursory study of millionaires will indicate some surprising facts: most of them are self made, most of them behave differently than pop culture, and among other things most of them are generous givers. Building wealth is about behavior. Giving to charity is part of that behavior. Its my own theory that giving does almost no good for the recipient, but a great amount of good for the giver. This may seem difficult to believe, but I ask that you try it.\"",
"title": ""
},
{
"docid": "391d43d1cf4f10b5872dc46e5f2045f0",
"text": "Alright so you have $12,000 and you want to know what to do with it. The main thing here is, you're new to investments. I suggest you don't do anything quick and start learning about the different kinds of investment options that can be available to you with returns you might appreciate. The most important questions to ask yourself is what are your life goals? What kind of financial freedom do you want, and how important is this $12,000 dollars to you in achieving your life goals. My best advice to you and to anyone else who is looking for a place to put their money in big or small amounts when they have earned this money not from an investment but hard work is to find a talented and professional financial advisor. You need to be educated on the options you have, and keep them in lines of what risks you are willing to take and how important that principal investment is to you. Investing your money is not easy at all, and novices tend to lose their money a lot. The same way you would ask a lawyer for law advice, its best to consult a financial planner for advice, or so they can invest that money for you.",
"title": ""
},
{
"docid": "c141d68ca0b0fec7fc97ce49d4665f8c",
"text": "Congratulations on getting started in life! John Malloy's (American) research suggests that you should take some time to get used to living on your own, make some friends, and settle into your community. During this time, you can build up an emergency fund. If/when the stock markets do not seem to be in a bear market, you can follow user3771352's advice to buy stock ETFs. Do you hope to get married and have children in the next few years? If so, you should budget time and money for activities where you make new friends (both men and women). Malloy points out that many Americans meet their spouses through women's networks of friends.",
"title": ""
},
{
"docid": "29a40af24f93fca95608892442b874f3",
"text": "There are all sorts of topics in finance that take a lot of time to learn. You have valuation (time value of money, capital asset pricing model, dividend discount model, etc.), financial statement analysis (ratio analysis, free cash flow & discounted cash flow, etc.) , capital structure analysis(Modgliani & Miller theories of capital structure, weighted average cost of capital, more CAPM, the likes), and portfolio management (asset allocation, security selection, integrates financial statement analysis + other fields like derivatives, fixed income, forex, and commodity markets) and all sorts. My opinion of Investopedia is that there is a lot of wheat with the chaff. I think articles/entries are just user-submitted and there are good gems in Investopedia but a lot of it only covers very basic concepts. And you often don't know what you don't know, so you might come out with a weak understanding of something. To begin, you need to understand TVM and why it works. Time value of money is a critical concept of finance that I feel many people don't truly grasp and just understand you need some 'rate' to use for this formula. Also, as a prereq, you should understand basics of accrual accounting (debits & credits) and how the accounting system works. Don't need to know things like asset retirement obligations, or anything fancy, just how accounting works and how things affect certain financial statements. After that, I'd jump into CAPM and cost of capital. Cost of capital is also a very misunderstood concept since schools often just give students the 'cost of capital' for math problems when in reality, it's not just an explicit number but more of a 'general feeling' in the environment. Calculating cost of capital is actually often very tricky (market risk premium) and subjective, sometimes it's not (LIBOR based). After that, you can build up on those basic concepts and start to do things like dividend discount models (basic theory underlying asset pricing models) and capital asset pricing models, which builds on the idea of cost of capital. Then go into valuation. Learn how to price equities, bonds, derivatives, etc. For example, you have the dividend discount model with typical equities and perpetuities. Fixed income has things like duration & convexity to measure risk and analyze yield curves. Derivatives, you have the Black-Scholes model and other 'derivatives' (heh) of that formula for calculating prices of options, futures, CDOs, etc. Valuation is essentially taking the idea of TVM to the next logical step. Then you can start delving into financial modelling. Free cash flows, discounted cash flows, ratio analysis, pro forma projections. Start small, use a structured problem that gives you some inputs and just do calculations. Bonuses* would be ideas of capital structure (really not necessary for entry level positions) like the M&M theorems on capital structure (debt vs equity), portfolio management (risk management, asset allocation, hedging, investment strategies like straddles, inverse floaters, etc), and knowledge of financial institutions and banking regulations (Basel accords, depository regulations, the Fed, etc.). Once you gain an understanding of how this works, pick something out there and do a report on it. Then you'll be left with a single 'word problem' that gives you nothing except a problem and tells you to find an answer. You'll have to find all the inputs and give reasons why these inputs are sound and reasonable inputs for this analysis. A big part that people don't understand about projections and analysis is that **inputs don't exist in plain sight**. You have to make a lot of judgment calls when making these assumptions and it takes a lot of technical understanding to make a reasonable assumption--of which the results of your report highly depend on. As a finance student, you get a taste for all of this. I'm gonna say it's going to be hard to learn a lot of substantial info in 2 months, but I'm not exactly sure what big business expects out of their grunts. You'll mostly be doing practical work like desk jockey business, data entry, and other labor-based jobs. If you know what you're talking about, you can probably work up to something more specialized like underwriting or risk management or something else. Source: Finance degree but currently working towards starting a (finance related) company to draw on my programming background as well.",
"title": ""
},
{
"docid": "b272698e1679609d91d03ae6740f5359",
"text": "I started my career over 10 years ago and I work in the financial sector. As a young person from a working class family with no rich uncles, I would prioritize my investments like this: It seems to be pretty popular on here to recommend trading individual stocks, granted you've read a book on it. I would thoroughly recommend against this, for a number of reasons. Odds are you will underestimate the risks you're taking, waste time at your job, stress yourself out, and fail to beat a passive index fund. It's seriously not worth it. Some additional out-of-the box ideas for building wealth: Self-serving bias is pervasive in the financial world so be careful about what others tell you about what they know (including me). Good luck.",
"title": ""
},
{
"docid": "95441942b8b50cf2a06698c919810714",
"text": "Borrow money and start a business. Follow your business plan and invest in yourself and your entrepreneurship. If you mean invest in the market, do not borrow money. In your plan, you are willing to make payments right? There are lots of things you can do better, but borrowing money to invest in the market for a couple of years is not one of them. Investing is boring, saving is boring, and planning your financial future is boring. It takes a consistent effort and you aren't going to get rich quick.",
"title": ""
},
{
"docid": "259db994dcd2e808930fe40d0f155490",
"text": "\"The best advice I can give you is that you need to start on math *now*. I made the same mistake as OP and didn't realize that going up in finance would require as much math as it does. Granted, I was undergrad finance not marketing like him, so maybe it was a little better for me, but if you really want to do upper level finance do NOT skimp on math. It's easy to fall into the trap doing cal 2 your sophomore year and thinking \"\"I won't really need this\"\" and just doing the minimum to get through it. For undergrad, that's true. For Master's you'll need it. This happened to me, and I suffered a LOT because of it. Your professors in the master's program will likely give you a crash course in what you need to know, but you won't have a real understanding of it unless you took (and did really well in) those math classes beforehand. To answer your question, 1. Maybe. You should definitely take cal 1 early. Depending on how you can hold on to the information, cal 2 can wait a bit, so it's fresher when you start doing upper level finance your second half of junior year/senior year. 2. Upper level finance is a whole different beast from lower level finance. Same with economics. If you're not good at math, if you don't enjoy math, it might not be the best choice. I'm not good at math, and the undergrad finance wasn't too bad. However, the master's program was very very not fun. EDIT: YMMV, but I don't recommend going straight into the master's program straight out of undergrad. Work (in industry!) for a bit first. The jobs you need to a master's for won't hire you straight out of undergrad, so it'll be dead weight. Experience is what you need.\"",
"title": ""
},
{
"docid": "32e71fb321d39a1fceb84c0481f32a5c",
"text": "Put £50 away as often as possible, and once it's built up to £500, invest in a stockmarket ETF. Repeat until you retire.",
"title": ""
},
{
"docid": "63edf1941f8f892ba7c319e07a6d3327",
"text": "\"There are many questions and good answers here regarding investment choices. The first decision you need to make is how involved do you intend to be in investment activity. If you plan to be actively investing by yourself, you should look for questions here about making investment choices. If you intend to be a more passive investor, look for posts by \"\"Bogleheads\"\", who focus on broad-focused, low cost investments. This is the optimal choice for many people. If you are not comfortable managing investments at all, you need to figure out how to find a competent and reasonably priced financial advisor to meet with and guide your investment strategy. This advice generally costs about 1-2% of your total managed assets annually.\"",
"title": ""
},
{
"docid": "89d0451472da336c5b36dca90f59adb4",
"text": "Many good sources on YouTube that you can find easily once you know what to look for. Start following the stock market, present value / future value, annuities & perpetuities, bonds, financial ratios, balance sheets and P&L statements, ROI, ROA, ROE, cash flows, net present value and IRR, forecasting, Monte Carlo simulation (heavy on stats but useful in finance), the list goes on. If you can find a cheap textbook, it'll help with the concepts. Investopedia is sometimes useful in learning concepts but not really on application. Khan Academy is a good YouTube channel. The Intelligent Investor is a good foundational book for investing. There are several good case studies on Harvard Business Review to practice with. I've found that case studies are most helpful in learning how to apply concept and think outside the box. Discover how you can apply it to aspects of your everyday life. Finance is a great profession to pursue. Good luck on your studies!",
"title": ""
},
{
"docid": "4cd9c2b35628903a560ac635280aedbe",
"text": "It depends on whether you want a career as a fund manager/ analyst or if you want to be an investor/ trader. A fund manager will have many constraints that a private investor doesn’t have, as they are managing other people’s money. If they do invest their own money as well they usually would invest it differently from how they invest the fund's money. Many would just get someone else to invest their money for them, just as a surgeon would get another surgeon to operate on a family member. My suggestion to you is to find a job you like doing and build up your savings. Whilst you are building up your savings read some books. You said you don’t know much about the financial markets, then learn about them. Get yourself a working knowledge about both fundamental and technical analysis. Work out which method of analysis (if not both) suits you best and you would like to know more about. As you read you will get a better idea if you prefer to be a long term investor or a short term trader or somewhere in-between or a combination of various methods. Now you will start to get an idea of what type of books and areas of analysis you would like to concentrate on. Once you have a better idea of what you would like to do and have gained some knowledge, then you can develop your investment/trading plan and start paper trading. Once you are happy with you plan and your paper trading you can start trading with a small account balance (not more than $10,000 and preferably under $5,000). No matter how well you did with paper trading you will always do worse with real money at first due to your emotions being in it now. So always start off small. If you want to become good at something it takes time and a lot of hard work. You can’t go from knowing nothing to making a million dollars per year without putting in the hard yards first.",
"title": ""
},
{
"docid": "416ef7846826a6105c8771f921f2ad33",
"text": "\"You don't state a long term goal for your finances in your message, but I'm going to assume you want to retire early, and retire well. :-) any other ideas I'm missing out on? A fairly common way to reach financial independence is to build one or more passive income streams. The money returned by stock investing (capital gains and dividends) is just one such type of stream. Some others include owning rental properties, being a passive owner of a business, and producing goods that earn long-term royalties instead of just an immediate exchange of time & effort for cash. Of these, rental property is probably one of the most well-known and easiest to learn about, so I'd suggest you start with that as a second type of investment if you feel you need to diversify from stock ownership. Especially given your association with the military, it is likely there is a nearby supply of private housing that isn't too expensive (so easier to get started with) and has a high rental demand (so less risk in many ways.) Also, with our continued current low rate environment, now is the time to lock-in long term mortgage rates. Doing so will reap huge benefits as rates and rents will presumably rise from here (though that isn't guaranteed.) Regarding the idea of being a passive business owner, keep in mind that this doesn't necessarily mean starting a business yourself. Instead, you might look to become a partner by investing money with an existing or startup business, or even buying an existing business or franchise. Sometimes, perfectly good business can be transferred for surprisingly little down with the right deal structure. If you're creative in any way, producing goods to earn long-term royalties might be a useful path to go down. Writing books, articles, etc. is just one example of this. There are other opportunities depending on your interests and skill, but remember, the focus ought to be on passive royalties rather than trading time and effort for immediate money. You only have so many hours in a year. Would you rather spend 100 hours to earn $100 every year for 20 years, or have to spend 100 hours per year for 20 years to earn that same $100 every year? .... All that being said, while you're way ahead of the game for the average person of your age ($30k cash, $20k stocks, unknown TSP balance, low expenses,) I'm not sure I'd recommend trying to diversify quite yet. For one thing, I think you need to keep some amount of your $30k as cash to cover emergency situations. Typically people would say 6 months living expenses for covering employment gaps, but as you are in the military I don't think it's as likely you'll lose your job! So instead, I'd approach it as \"\"How much of this cash do I need over the next 5 years?\"\" That is, sum up $X for the car, $Y for fun & travel, $Z for emergencies, etc. Keep that amount as cash for now. Beyond that, I'd put the balance in your brokerage and get it working hard for you now. (I don't think an average of a 3% div yield is too hard to achieve even when picking a safe, conservative portfolio. Though you do run the risk of capital losses if invested.) Once your total portfolio (TSP + brokerage) is $100k* or more, then consider pulling the trigger on a second passive income stream by splitting off some of your brokerage balance. Until then, keep learning what you can about stock investing and also start the learning process on additional streams. Always keep an eye out for any opportunistic ways to kick additional streams off early if you can find a low cost entry. (*) The $100k number is admittedly a rough guess pulled from the air. I just think splitting your efforts and money prior to this will limit your opportunities to get a good start on any additional streams. Yes, you could do it earlier, but probably only with increased risk (lower capital means less opportunities to pick from, lower knowledge levels -- both stock investing and property rental) also increase risk of making bad choices.\"",
"title": ""
}
] |
fiqa
|
c6eb2c90cf8c73d23e3f6c2cd4e455af
|
Yahoo Finance - Data inconsistencies between historic and current data
|
[
{
"docid": "b1c3ef346e865a00ed0f22d1e57bf6c2",
"text": "You might have better luck using Quandl as a source. They have free databases, you just need to register to access them. They also have good api's, easier to use than the yahoo api's Their WIKI database of stock prices is curated and things like this are fixed (www.quandl.com/WIKI ), but I'm not sure that covers the London stock exchange. They do, however, have other databases that cover the London stock exchange.",
"title": ""
}
] |
[
{
"docid": "22b1ea9120af491bb5ea89dbba820eb4",
"text": "\"Thanks for pointing out [the study](http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1748851). It's a slightly different cause than what I was describing when I posted this. Specifically, they show an effect not when the names get confused, but rather when the name similarity simply brings more attention to the stock. I was surprised nobody mentioned that in response to my post. But also interesting is that they had to control for simple confusion between stock symbols, which implies that ticker confusion has a known effect. So I dug into research on that and quickly found [this study](http://www.efmaefm.org/0EFMAMEETINGS/EFMA%20ANNUAL%20MEETINGS/2010-Aarhus/EFMA2010_0161_fullpaper.pdf) found \"\"a high positive correlation between returns on two matching stocks with similar ticker symbols\"\".\"",
"title": ""
},
{
"docid": "f7ff0489f0eabd8d4d808b9215088b15",
"text": "You can get this data from a variety of sources, but likely not all from 1 source. Yahoo is a good source, as is Google, but some stock markets also give away some of this data, and there's foreign websites which provide data for foreign exchanges. Some Googling is required, as is knowledge of web scraping (R, Python, Ruby or Perl are great tools for this...).",
"title": ""
},
{
"docid": "1ca4aa43255f1b1f575ff0e602651839",
"text": "\"Remember that in most news outlets journalists do not get to pick the titles of their articles. That's up to the editor. So even though the article was primarily about ETFs, the reporter made the mistake of including some tangential references to mutual funds. The editor then saw that the article talked about ETFs and mutual funds and -- knowing even less about the subject matter than the reporter, but recognizing that more readers' eyeballs would be attracted to a headline about mutual funds than to a headline about ETFs -- went with the \"\"shocking\"\" headline about the former. In any case, as you already pointed out, ETFs need to know their value throughout the day, as do the investors in that ETF. Even momentary outages of price sources can be disastrous. Although mutual funds do not generally make transactions throughout the day, and fund investors are not typically interested in the fund's NAV more than once per day, the fund managers don't just sit around all day doing nothing and then press a couple buttons before the market closes. They do watch their NAV very closely during the day and think very carefully about which buttons to press at the end of the day. If their source of stock price data goes offline, then they're impacted almost as severely as -- if less visibly than -- an ETF. Asking Yahoo for prices seems straightforward, but (1) you get what you pay for, and (2) these fund companies are built on massive automated infrastructures that expect to receive their data from a certain source in a certain way at a certain time. (And they pay a lot of money in order to be able to expect that.) It would be quite difficult to just feed in manual data, although in the end I suspect some of these companies did just that. Either they fell back to a secondary data supplier, or they manually constructed datasets for their programs to consume.\"",
"title": ""
},
{
"docid": "e50fbda863f078d02e1be7577f198d04",
"text": "http://www.euroinvestor.com/exchanges/nasdaq/macromedia-inc/41408/history will work as DumbCoder states, but didn't contain LEHMQ (Lehman Brother's holding company). You can use Yahoo for companies that have declared bankruptcy, such as Lehman Brothers: http://finance.yahoo.com/q/hp?s=LEHMQ&a=08&b=01&c=2008&d=08&e=30&f=2008&g=d but you have to know the symbol of the holding company.",
"title": ""
},
{
"docid": "2227038c0029b9fdd52d89545028260a",
"text": "The last column in the source data is volume (the number of stocks that was exchanged during the day), and it also has a value of zero for that day, meaning that nobody bought or sold the stocks on that day. And since the prices are prices of transactions (the first and the last one on a particular day, and the ones with the highest/lowest price), the prices cannot be established, and are irrelevant as there was not a single transaction on that day. Only the close price is assumed equal to its previous day counterpart because this is the most important value serving as a basis to determine the daily price change (and we assume no change in this case). Continuous-line charts also use this single value. Bar and candle charts usually display a blank space for a day where no trade occurred.",
"title": ""
},
{
"docid": "5fa54cf62db12e34c6926ed17d54279e",
"text": "\"Almost every online datasources provide historical prices on given company / index's performance; from this, you can easily calculate \"\"standard deviation\"\" by yourself. With that said, standard deviation presumes a fixed set of data. Most public corporations have data spanning multiple decades, during which a number of things have changed: For these reasons, I have doubts on simplistic measures, such as \"\"standard deviation\"\" measuring any reality on the underlying vehicle. Professional investors usually tend to more time-point data, such as P/E ratio.\"",
"title": ""
},
{
"docid": "e199386f1d027b25ef7b9096c3f27a4e",
"text": "\"http://www.interactivedata.com -> reference data No, it's not free. Nor would I consider it \"\"high quality\"\". For free data, try the Yahoo Finance API. The data you want is there, though you may need to calculate some of the fields yourself. Once you have your application working with free data you will be in a good position to evaluate whether it's worth it to shift to more detailed non-free data.\"",
"title": ""
},
{
"docid": "ae4ae5638e6cf091ebea4b4c79e8f0f2",
"text": "There are several problems with trying to get this data:",
"title": ""
},
{
"docid": "2f59413ac77aa486091797a12cd9d78e",
"text": "Robert Shiller published US Stock Market data from 1871. Ken French also has historical data on his website. Damodaran has a bunch of historical data, here is some historical S&P data.",
"title": ""
},
{
"docid": "efd0097229164057ef16b3e11f442cf7",
"text": "The closest I can think of from the back of my head is http://finviz.com/map.ashx, which display a nice map and allows for different intervals. It has different scopes (S&P500, ETFs, World), but does not allow for specific date ranges, though.",
"title": ""
},
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "244082b525c3e0b52022e26c339e7810",
"text": "\"In the US, stocks are listed on one exchange but can be traded on multiple venues. You need to confirm exactly what your data is showing: a) trades on the primary-listed exchange; or b) trades made at any venue. Also, the trade condition codes are important. Only certain trade condition codes contribute towards the day's open/high/low/close and some others only contribute towards the volume data. The Consolidated Tape Association is very clear on which trades should contribute towards each value - but some vendors have their own interpretation (or just simply an erroneous interpretation of the specifications). It may surprise you to find that the majority of trading volume for many stocks is not on their primary-listed exchange. For example, on 2 Mar 2015, NASDAQ:AAPL traded a total volume across all venues was 48096663 shares but trading on NASDAQ itself was 12050277 shares. Trades can be cancelled. Some data vendors do not modify their data to reflect these busted trades. Some data vendors also \"\"snapshot\"\" their feed at a particular point in time of the data. Some exchanges can provide data (mainly corrections) 4-5 hours after the closing bell. By snapshotting the data too early and throwing away any subsequent data is a typical cause of data discrepancies. Some data vendors also round prices/volumes - but stocks don't just trade to two decimal places. So you may well be comparing two different sets of trades (with their own specific inclusion rules) against the same stock. You need to confirm with your data sources exactly how they do things. Disclosure: Premium Data is an end-of-day daily data vendor.\"",
"title": ""
},
{
"docid": "12c634220fc3e2dc46fc247bc28c4557",
"text": "I couldn't find historical data either, so I contacted Vanguard Canada and Barclays; Vanguard replied that This index was developed for Vanguard, and thus historical information is available as of the inception of the fund. Unfortunately, that means that the only existing data on historical returns are in the link in your question. Vanguard also sent me a link to the methodology Barclay's uses when constructing this index, which you might find interesting as well. I haven't heard from Barclays, but I presume the story is the same; even if they've been collecting data on Canadian bonds since before the inception of this index, they probably didn't aggregate it into an index before their contract with Vanguard (and if they did, it might be proprietary and not available free of charge).",
"title": ""
},
{
"docid": "16fc45daadb1b77449a00539b723e29d",
"text": "There are several Excel spreadsheets for downloading stock quotes (from Yahoo Finance), and historical exchange rates at http://investexcel.net/financial-web-services-kb",
"title": ""
},
{
"docid": "9d9cfa352ce07f9aa89d06d2a710373e",
"text": "I don't see it in any of the exchange feeds I've gone through, including the SIPs. Not sure if there's something wrong with Nasdaq Last Sale (I don't have that feed) but it should be putting out the exact same data as ITCH.",
"title": ""
}
] |
fiqa
|
b9850f712dcff328cb6b981a97aeb5e8
|
Is the Canadian Securities Course (CSC) enough to get started in the finance industry in Canada?
|
[
{
"docid": "090860a1c544820a7adb13da0f6f543e",
"text": "\"Wikipedia says \"\"The Canadian Securities Course (CSC) offered by the Canadian Securities Institute (CSI) is the initial course required for becoming licensed to work within the Canadian securities industry (outside Quebec) as a securities dealer or securities agent.\"\" Src: Candian Securities Course EfficientMarket Canada adds \"\" You require it and further courses for other jobs in the investment industry. Generally some work experience is also required. All of this is governed by various self-regulatory agencies. The material in the course is strong on money making products, and fairly weak on material that would actually protect a consumer from harm. Passing the course is very little indication that you understand what's important about investing, for example, you won't be taught much of anything about the theory of investment, or the markets, or things like the efficient market hypothesis.\"\" Src: EfficientMarket.ca on the CSC So it appears that the CSC is necessary to work as certain types of financial agencies. That being said, I doubt it will be enough to get your foot in the door. This seems more like a prerequisite rather than a true qualification, so you'll be competing with MBAs/Finance students and other people who either have experience or training in the financial industry. I'd recommend you look into the Chartered Financial Analyst (CFA) certification as that will provide you with a rigorous knowledge of financial theory as well as asset management, which seems more appropriate for what you'd like to do. From there you'll have to network like crazy and leverage your experience to get in at a Canadian financial firm and eventually wealth management. So yes, I suppose a CSC is a good first step but more will certainly be required and I doubt it will be enough to land you a full time position. Another important factor is age - nobody expects undergrads to have extensive certifications or experience, but it's harder for a 35 year old to enter a new industry, especially finance.\"",
"title": ""
}
] |
[
{
"docid": "aecd446de2f3b43229db2f93e5ca3553",
"text": "It depends what area of finance, but an ivy league education is not *required*. A good school, probably, but the best thing you can do for yourself is go through the internship program at a bank or financial institution (usually after junior year, but you find the occasional sophomore). There are often many job offers to those that complete it well, and if not, you apply to other firms with your internship as your backing. It would help to know what Gyroisabot asked and know what area and what school you went to.",
"title": ""
},
{
"docid": "8537343310c936f25ed36cbeb6d3f3f3",
"text": "There are a lot of certifications/designations you could look into if you're willing to put in the time to study. CFA, FRM, CFP, etc. Most financial companies will recognize these although some carry more weight than others.",
"title": ""
},
{
"docid": "55dd7aebb55d13bda4e7e34f57f75397",
"text": "I agree. The CFA is nice for students who have the time to take the exam, because it could be a year or two before the start working, so it is a reasonable resume padder (especially if your major is engineer, science, or math and you want to do finance). If you are trying to do a career change, it is important to know the material, because if you don't, then you can't do the job even if someone gives it to you. But passing the test isn't as important as actually applying to the jobs and networking. I switched from engineering to finance (buyside equity analyst). Originally I planned to take the CFA exams to help me with my transition. But their new rule required a valid passport, and it takes a while to get one, so I missed the deadline for last December's exam. That turned out to be a good thing because I just started networking, cold calling/emailing, applying to jobs, etc and I got my current job. If I had actually decided to take the CFA, I would have wasted all my time preparing for the exam instead of trying to get the job. Potential employers know if you are good or not after talking to you for 15 minutes. It has nothing to do with being able to memorize a set of formulas, some the last name of some economists and their theories, some oscure accounting differences between GAAP and IFRS, etc. For me it was the fact that I invest my own money and that I am able to explain my own investments very intelligently (aka it needs to be a lot better than what you see on /r/investing). If you know nothing about finance, studying the CFA material and then taking the exam is a good thing. You are going to be studying the material anyways if you are serious about a career change, so might as well take the exam afterwards and get a resume padder. I did end up taking the level 1 this month because my new employer paid for it. I don't think it adds any value once your foot is already in the door, especially since it takes 5 years of experience to get the charter (after that amount of time, it's all about job experience).",
"title": ""
},
{
"docid": "28e7f4feb844230bffd7a3ea29f655c3",
"text": "What area of finance? Institutional finance (equity research, investment banking) is a non-starter with no experience unless you're Jesus. And if CFA level 1 material is intimidating, reconsider, as those are the basics of a finance undergraduate degree. PM me your prospective employer if you like. I'm probably twice your age and have the CFA charter and several other finance qualifications, so I'm not going to be applying there. I will be able to give better insight as to preparation and your chances.",
"title": ""
},
{
"docid": "bc8572a408a60d00c240318d49ce0372",
"text": "Its really not that hard to get. Takes a month or two to study to pass it. Realize though that if you are going to get the series, you are pegging yourself as a sell side roll. If you are attempting to go buy-side, then you may want to look at different certifications (being a CFA level 1 candidate). If you have time to burn though, get it, its a good education and a good intro to the world of finance and its not that hard to get. Hope this helps. Edit: also realize that if you do get it, and a company sponsors you, if you leave the firm, you have 2 years before the series expires, which means you gotta use it, or lose it. As I recall, I may be wrong...but I have heard you can 'park' your series at a firm which will pay the FINRA / SEC fees for you. But I believe they outlawed this practice.",
"title": ""
},
{
"docid": "d44a318b4b64ec24840c1cb7fb2a6ff0",
"text": "You really just need to learn about finance, trading and the markets. I know a chemical engineer that did an IB internship. He joined our universities Investments club and just learned everything from there. He never took a single business class",
"title": ""
},
{
"docid": "cbfd1c4095aaa7fb7d8ce00026bad72a",
"text": "One overarching thing to keep in mind is that wherever you go with Finance if you work hard enough and climb the ladder, you can make decent money. I know CIO's, Market Stragesits and even CFO's, Portfolio Managers and CPA's that all live extremely comfortably, and all of them work outside of the IB industry, basically, IB isn't the end-all for making large sums of money. The main reason why it pays so much upfront is that of the hours you have to work if you look at their salary at an hourly rate, it's around 10-12 bucks an hour. Definitely think about the Double major thing though, or potentially just doing a minor. It would definitely look good on a resume, especially if it's something you also enjoy, but you've gotta keep that GPA high, and getting a 4.0 in CS is quite a challenge, to begin with. Pretty much any of the Series certifications can help you depending on where you want to go career-wise, obviously for some positions have certain series certifications won't be useful at all. It's also worth looking into the CFA program if you plan on doing Financial Analysis, but you'll need a sponsor for this, just like the Series certifications. Happy to help man, if you've got any other questions feel free to reach out. I'm in the same boat just trying to figure out what I want to do with my life to make decent money so I can take care of my friends and family, and live life to the fullest.",
"title": ""
},
{
"docid": "6594213e2711631e9e3021ad46c29676",
"text": "When I did my CSC waaaaay back in the day (when there was 1 4 hour exam and 2 assignments, fuck I'm old) this is what I did. I took the week after New Years off, and studied exclusively for the CSC. I did nothing else but study (but I had done a lot of prep before) then I wrote the exam after a week of non-stop study. To be honest, the exam isn't difficult - at least the finance parts. The tricky parts are the pure memorization ones, which are almost all compliance/ethics questions (e.g. how long do you have to notify the OSC of a change in address, etc). Do not ignore these sections as they do test on ethics/compliance a lot.",
"title": ""
},
{
"docid": "53d5e0ecb3c547730065923b14d4ca17",
"text": "Go check out wallstreetoasis.com. There are a lot of people out there like you and that site has a lot of folks in the industry. It's segregated by arms so you'll also probably be able to get a feel for what kind of finance you might or might not be suited for.",
"title": ""
},
{
"docid": "e9e42b15eecba8bb1074d1ae6ae6044d",
"text": "Yes. I passed the CFA Level 1 with three months of studying with only a BS in Economics and a career as a Financial Advisor. I took a local review course with my local CFA chapter in San Francisco, then sprang for some test question banks and just plowed through them. Anytime I missed a question, I reread the section on that question, wrote out an index card to drill the concept, drilled the concepts for awhile, and then took the test questions again. Good luck.",
"title": ""
},
{
"docid": "354072d2307e6f6c872942c2f7d431d7",
"text": "Depends on how you supplement the major. I had people taking things like 'marketing' or 'business management' with their finance majors to get good marks, but they didn't get internships like I did because I was willing to take statistics, economics, risk management, accountancy etc... In general you want to have a strong math background, a good understanding of economics, and accountancy. Also if I could go back I would have done computer science at least at first year level to get a feel for coding and modeling. Edit: I should clarify I don't have a permanent job, I'm just speaking from my experience of holiday internships with investment banks.",
"title": ""
},
{
"docid": "70f6e839b836a9832aa8dd46732e63f1",
"text": "No way. The CFA is comprehensive, but finance as subject matter isn't very difficult. I am an econ/econometric major in the CFA program with zero finance/accounting background. I started the program without know assets = liabilities + equity. Takes more time, and is a larger commitment, but unless you are working 12 hours a day, if you are diligent, you should have no major issues.",
"title": ""
},
{
"docid": "fda5f5c4f7c382202bb5fab7941277f4",
"text": "\"The Financial Consumer Agency of Canada (FCAC) has a page specifically about working with a financial planner or advisor. It's a good starting point if you are thinking about getting a financial professional to help you plan and manage your investments. In the \"\"Where To Look\"\" section on that page, FCAC refers to a handful of industry associations. I'll specifically highlight the Financial Planning Standards Council's \"\"Find a planner\"\" page, which can help you locate a Certified Financial Planner (CFP). Choose financial advice carefully. Prefer certified professionals who charge a set fee for service over advisors who work on commission to push investment products. Commission-based advice is seldom unbiased. MoneySense magazine published a listing last year for where to find a fee-only financial planner, calling it \"\"The most comprehensive listing of Canadian fee-only financial planners on the web\"\" — but do note the caveat (near the bottom of the page) that the individuals & firms have not been screened. Do your own due diligence and check references.\"",
"title": ""
},
{
"docid": "48d391288ce8b4c9ec0f9744f83bcef9",
"text": "In general I would recommend to stay away from any video from a successful trader, at least those that claim to share their secrets. If they were that successful, why would they want company? What they have most likely discovered is that they can make more money through videos and seminars than they can through trading. While not a video, GetSmarterAboutMoney has a good basic section on Stock markets without being purely Canada centric (as I see from your profile you are in NY). I know that also in our city, there are continuing education courses that often go over the basics like this, if you have a college nearby they might have something. Cheapest of all would be to hit your local library. The fundamentals don't change that quickly that you need the latest and greatest - those are much more likely to be get-poor-quick schemes. Good Luck",
"title": ""
},
{
"docid": "772b0416b59da8f49430c9ec76d9f1f3",
"text": "\"Not really. It's good to supplement a shitty school and bad GPA with, a nice thing to pursue and great at teaching you finance if you're not a finance major. It will undeniably look good on a resume, however, it will not make or break you, outside of possibly you being in Top 3 internship candidates and you're the only CFA candidate. It's practically useless for trading, but a friend of mine at a brokerage is getting his so that he can have more \"\"authority\"\" with clients, although, he is at a foreign brokerage and the clients tend to need that assurance that the broker knows what they're doing.\"",
"title": ""
}
] |
fiqa
|
c95ff98c62b2cfb69367942ccbcc3595
|
UK: Personal finance book for a twenty-something
|
[
{
"docid": "b677b2d0d99879a1ad3cf2e40d13b37a",
"text": "Try this as a starter - my eBook served up as a blog (http://www.sspf.co.uk/blog/001/). Then read as much as possible about investing. Once you have money set aside for emergencies, then make some steps towards investing. I'd guide you towards low-fee 'tracker-style' funds to provide a bedrock to long-term investing. Your post suggests it will be investing over the long-term (ie. 5-10 years or more), perhaps even to middle-age/retirement? Read as much as you can about the types of investments: unit trusts, investment trusts, ETFs; fixed-interest (bonds/corporate bonds), equities (IPOs/shares/dividends), property (mortgages, buy-to-let, off-plan). Be conservative and start with simple products. If you don't understand enough to describe it to me in a lift in 60 seconds, stay away from it and learn more about it. Many of the items you think are good long-term investments will be available within any pension plans you encounter, so the learning has a double benefit. Work a plan. Learn all the time. Keep your day-to-day life quite conservative and be more risky in your long-term investing. And ask for advice on things here, from friends who aren't skint and professionals for specific tasks (IFAs, financial planners, personal finance coaches, accountants, mortgage brokers). The fact you're being proactive tells me you've the tools to do well. Best wishes to you.",
"title": ""
},
{
"docid": "d5b20e52a87063de073192df82373049",
"text": "Public sector and private industry retirement plans, taxation and estate planning would be the most substantial differences between the two countries. The concepts for accumulating wealth are the same, and if you are doing anything particularly lucrative with an above average amount of risk, the aforementioned differences are not very relevant, for a twenty something.",
"title": ""
},
{
"docid": "a43fa9b65ec8de1dcc44ad2e934b5d6b",
"text": "I would always recommend the intelligent investor by Benjamin Graham the mentor of warren buffet once you have a basic knowledge ie what is a share bond guilt etc In terms of pure investment the UK is fairly similar the major difference is the simpler tax structure, ISA allowance and the more generous CGT regime.",
"title": ""
},
{
"docid": "66ffc7bcaf7543e8dc2c1a71e4e07187",
"text": "I will definitely recommend the following books The above books will open lot of eyes to exactly know what you are doing with your personal finances in a day to day basis.These books will surely be in the top of my list which I will be giving away to my kins in my later stage. The concepts are universally the same, feel free to skip the chapters which were US based. I live in UK and I read most of the above books in late twenties, it surely made lot of changes and also drastically improved my personal finance acumen. I wish I have read these books in my early twenties.",
"title": ""
},
{
"docid": "db1ccbc57a778e7a93f06a6a95ab0dde",
"text": "\"Consultant, I commend you for thinking about your financial future at such an early age. Warren Buffet, arguably the most successful investor ever lived, and the best known student of Ben Graham has a very simple advice for non-professional investors: \"\"Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.)\"\" This quote is from his 2013 letter to shareholders. Source: http://www.berkshirehathaway.com/letters/2013ltr.pdf Buffet's annual letters to shareholders are the wealth of useful and practical wisdom for building one's financial future. The logic behind his advice is that most investors cannot consistently pick stock \"\"winners\"\", additionally, they are not able to predict timing of the market; hence, one has to simply stay in the market, and win over in the long run.\"",
"title": ""
},
{
"docid": "2a802bbb4b1d55bf32ecbac3f41fdc5f",
"text": "As you are in UK, you should think in terms of Tax Free (interest and accumulated capital gains) ISA type investments for the long term AND/OR open a SIPP (Self Invested Pension Plan) account where you get back the tax you have paid on the money you deposit for your old age. Pensions are the best bet for money you do not need at present while ISAs are suitable for short term 5 years plus or longer.",
"title": ""
}
] |
[
{
"docid": "7ab5e1c25f0ae028667ac6fd6f605c2b",
"text": "Those are some very broad questions and I don't think I can answer them completely, but I will add what I can. Barron's Finance and Investment Handbook is the best reference book I have found. It provides a basic description/definition for every type of investment available. It covers stocks, preferred stocks, various forms of bonds as well as mortgage pools and other exotic instruments. It has a comprehensive dictionary of finance terms as well. I would definitely recommend getting it. The question about how people invest today is a huge one. There are people who simply put a monthly amount into a mutual fund and simply do that until retirement on one side and professional day traders who move in and out of stocks or commodities on a daily basis on the other.",
"title": ""
},
{
"docid": "4f90fcf8c3bab693c51c6dbe1ed7a141",
"text": "\"First and foremost you must remember that they are people (something I don't think you have trouble with, but others might). When dealing with increasingly desperate financial struggles, it's not uncommon to allow financial trouble to define you, or for others to see you only as \"\"poor\"\". Money is a human creation. It's not real, like fire or water, and \"\"money problems\"\" is a misnomer. Whatever problems they have, money is only one symptom. Often, dealing with those deeper human problems, such as lack of confidence, depression, fear or behavioral issues, is the key to correcting \"\"downstream\"\" problems like poor money management. Not that learning how to manage money isn't important, but it doesn't sound like that is the primary issue in this case. Westerners tend to view money trouble as distinct from other problems. The answer to money troubles is often understood to be \"\"more money\"\" or \"\"smarter money\"\" - earn more or spend better. It helps to step back and look beyond finances. What's going in their lives? How does that make them feel? Do they feel unimportant or valueless? How's their family life? Do they have good emotional support, or are they running \"\"on empty\"\", trying to fill the emptiness with other things (like games, for example). (Simply telling them to stop purchasing games, for example, without finding a better replacement just perpetuates the feelings of shame, valuelessness and emptiness.) Discovering the deeper elements of your friends' situation is much more complicated than giving them money or paying for a financial counselor (neither of which are bad things), but it may make a tremendous difference not just in your friends' bank account, but in their lives as well. My wife and I have experienced all of this first-hand, so I know the predicament you are in. We've even had people in tough financial situations live in our home with us. In all the situations in which we've been close enough to understand context, money wasn't the primary issue. It's always been something else, more often than not family, but not always. I've found the book When Helping Hurts helpful for gaining some perspective, though it's not a perfect match (since it deals more with poverty on a grand scale). You may still find it helpful in terms of general principles, but, ultimately, each situation is going to be unique and no one-size-fits-all strategy exists to solve all problems. In the end, building a deeper relationship is the best path toward finding a long-term solution.\"",
"title": ""
},
{
"docid": "a5962b3b7eac619b9f8797580b9e859f",
"text": "The 20x number is drawn directly from the assumption that it should be easy to get more than 4% average return on investment. After lots of historical studies, Monte Carlo simulations, and the like there was a consensus that saving more didn't significantly increase the odds of achieving at least the desired yearly income sustainably. (That's the same calculations the insurance firms use as the starting point for writing annuities.) There are also some assumptions about inflation and its interaction with the market built into this rule-of-thumb. Note that this is 20x what you want as post-retirement income, not necessarily 20x your current income. I have a moderately frugal lifestyle, And my budget confirms that my actual spending -- even in years when I allow myself a splurge -- is well below my current income, with the excess going into the investments. To sustain my lifestyle, I need that lower number plus any taxes that'll be due on it plus whatever I want to allocate as average emergency reserve... and theoretically I should be able to base the 20x on that lower number. When I run estimates (Quicken has a tool for this, so does my credit union, I presume others are widely available), they tend to confirm this. I'm still using the higher number for planning, though. I don't feel any need to retire early (though I have issues with my current manager), and I have no objection at all to being able to afford better toys on occasion. Or to leaving a legacy to friends, relatives, and/or charity. But it's nice to know exactly when I could punt the day job if I wanted to.",
"title": ""
},
{
"docid": "8cc2389786fff79f3147cc8c27172e0e",
"text": "Personal loans are typically more expensive (have higher interest) than mortgages, because they are not backed by an immovable asset. So you should reconsider the decision to not want a mortgage; it would be cheaper. Aside from that, once you get a personal loan, you are free to do with it whatever you want; this includes sending it to your parents, buying something, gambling it away in Vegas, or take out cash and burn it. So, yes, you can. Sending money from the UK to other EU countries should be easy and simple, once it is in your account, your bank can help you to make the transfer. I assume you understand that if your parents walk away with the money, you are left holding the bag. You are taking the full risk, and you will have to pay it back.",
"title": ""
},
{
"docid": "b016ad4e91e887d07872457741a50b2c",
"text": "Can anyone recommend a good textbook that covers Fannie Mae and Freddie Mac, or more broadly the US home mortgage market? A basic search seems to mostly turn up books that aim to make an ideological point rather than attempt to provide an actual explanation. I have a basic financial knowledge including a basic understanding of derivatives at the level of say the textbook by Hull, but know very little about the US mortgage market specifically. I don't mind technical detail, and am not afraid of math. I don't mind if the book is broader, as long as it includes a reasonably in depth look at these GSEs and their role. This seems to be a pretty basic piece of knowledge for many financial professionals, so I assume there must be at least one standard textbook on this that I just haven't been able to find. EDIT: I'm looking for something post 2008 of course.",
"title": ""
},
{
"docid": "6ab0591bd0e809fae8e650352223ec80",
"text": "I'm going to be a bit off topic and recommend 'The Only Investment Book You'll Ever Need' by Andrew Tobias. It doesn't start with describe the workings of the stock market. Instead, it starts with making sure you have a budget and have your basic finances in order BEFORE going into the stock market. This may not sound like what you are looking for, but it really is a valuable book to read, even if you think you are all set up in that department.",
"title": ""
},
{
"docid": "198cba582cbd5efbc4acd1da63d19d23",
"text": "You could try looking for a UK implementation of http://www.yodlee.com/ : Google tells me that http://www.lovemoney.com/ ( http://www.yodlee.com/2010_1_20.html ) is one such service. I use ANZ money manager - an Australian implementation of Yodlee and find it very useful. I wouldn't use Yodlee directly though (http://money-watch.co.uk/7197/uk-pfm-tool-review-yodlee-moneycenter) those T&Cs don't sound great.",
"title": ""
},
{
"docid": "2cf6037c68fe46a7914b798417e10e48",
"text": "Something that introduces the vocabulary and treats the reader like an intelligent individual? It's a bit overkill for 'retirement', but Yale has a free online course in Financial Markets. It's very light on math, but does a good job establishing jargon and its history. It covers most of the things you'd buy or sell in financial markets, and is presented by Nobel Prize winner Robert Schiller. This particular series was filmed in 2007, so it also offers a good historical perspective of the start of the subprime collapse. There's a number of high profile guest speakers as well. I would encourage you to think critically about their speeches though. If you research what's happened to them after that lecture, it's quite entertaining: one IPO'd a 'private equity' firm that underperformed the market as a whole, another hedge fund manager bought an airline with a partner firm that was arrested for running a ponzi scheme six months later. The reading list in the syllabus make a pretty good introduction to the field, but keep in mind they're for institutional investors not your 401(k).",
"title": ""
},
{
"docid": "1cbc480e84ae4fc8dad1b073d8efd72d",
"text": "\"I've recommended this book a few times on this site, and I'm going to do it again. Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner Most of the personal finance advice books and blogs I have found focus too much on investing, or are more about \"\"lifestyle\"\" than finances, and left me unimpressed. I like this book because it covers most of the major personal finance topics (budgets, rainy-day fund, insurance, retirement, and non-retirement investment). I have not found another book that covers the topics as concisely as this one. It is no-nonsense, very light reading. Even if you are not a book person, you can finish it in a weekend. It is really geared for the young person starting their career. Not the most current book (pre real-estate boom), but the advice is still sound. Keep in mind that is is starting point, not the ultimate answer to all financial questions.\"",
"title": ""
},
{
"docid": "463fa73a0da279bb43beb2b3d9493116",
"text": "\"So you are off to a really good start. Congratulations on being debt free and having a nice income. Being an IT contractor can be financially rewarding, but also have some risks to it much like investing. With your disposable income I would not shy away from investing in further training through sites like PluralSite or CodeSchool to improve weak skills. They are not terribly expensive for a person in your situation. If you were loaded down with debt and payments, the story would be different. Having an emergency fund will help you be a good IT contractor as it adds stability to your life. I would keep £10K or so in a boring savings account. Think of it not as an investment, but as insurance against life's woes. Having such a fund allows you to go after a high paying job you might fail at, or invest with impunity. I would encourage you to take an intermediary step: Moving out on your own. I would encourage renting before buying even if it is just a room in someone else's home. I would try to be out of the house in less than 3 months. Being on your own helps you mature in ways that can only be accomplished by being on your own. It will also reduce the culture shock of buying your own home or entering into an adult relationship. I would put a minimum of £300/month in growth stock mutual funds. Keeping this around 15% of your income is a good metric. If available you may want to put this in tax favored retirement accounts. (Sorry but I am woefully ignorant of UK retirement savings). This becomes your retire at 60 fund. (Starting now, you can retire well before 68.) For now stick to an index fund, and once it gets to 25K, you may want to look to diversify. For the rest of your disposable income I'd invest in something safe and secure. The amount of your disposable income will change, presumably, as you will have additional expenses for rent and food. This will become your buy a house fund. This is something that should be safe and secure. Something like a bond fund, money market, dividend producing stocks, or preferred stocks. I am currently doing something like this and have 50% in a savings account, 25% in a \"\"Blue chip index fund\"\", and 25% in a preferred stock fund. This way you have some decent stability of principle while also having some ability to grow. Once you have that built up to about 12K and you feel comfortable you can start shopping for a house. You may want to be at the high end of your area, so you should try and save at least 10%; or, you may want to be really weird and save the whole thing and buy your house for cash. If you are still single you may want to rent a room or two so your home can generate income. Here in the US there can be other ways to generate income from your property. One example is a home that has a separate area (and room) to park a boat. A boat owner will pay some decent money to have a place to park their boat and there is very little impact to the owner. Be creative and perhaps find a way where a potential property could also produce income. Good luck, check back in with progress and further questions! Edit: After some reading, ISA seem like a really good deal.\"",
"title": ""
},
{
"docid": "cb01b43af8a14be26c06ee2123239bbd",
"text": "I'm surprised no one has picked up on this, but the student loan is an exception to the rule. It's inflation bound (for now), you only have to pay it back as a percentage of your salary if you earn over £15k (11% on any amount over that I believe), you don't have to pay it if you lose your job, and it doesn't affect your ability to get credit (except that your repayments will be taken into account). My advice, which is slightly different to the above, is: if you have any shares that have lost more than 10% since you bought them and aren't currently recovering, sell them and pay off your debts with those. The rest is down to you - are they making more than 10% a year? If they are, don't sell them. If your dividends are covering your payments, carry on as you are. Otherwise it's down to you.",
"title": ""
},
{
"docid": "6ade21fd3e683ecce1e0dc99e3e3f3fa",
"text": "\"Having convinced myself that there is no point of paying someone's else mortgage Somewhat rhetorical this many years later, but I expect some other kid forcefed the obsession with propping up the housing market might be repeating the nonsense about \"\"paying someone else's mortgage\"\" and read this. Will you be buying your own farm to grow your own food, or are you happy with people using the money you spend on food for a mortgage? How about clothes? Will you be weaving your own clothes because you don't want money you spend on clothes to pay someone else's mortgage? What's special about the money you pay for rent that you get annoyed at how someone else spends it? Don't get a mortgage just because you don't like the idea of how other people might spend the money that's no longer yours after you pay them with it. As an aside, at your age with your income and no debt, you could be sensibly investing a lot of money. If you did that for five years, you'd be in a much better position that you would be tying yourself to whatever current scheme the UK is using to desperately prop up house prices.\"",
"title": ""
},
{
"docid": "732b1d87850d18987f69ce516b933752",
"text": "\"This Stack Exchange site is a nice place to find answers and ask questions. Good start! Moving away from the recursive answer... Simply distilling personal finance down to \"\"I have money, I'll need money in the future, what do I do\"\", an easily digestible book with how-to, multi-step guidelines is \"\"I Will Teach You To Be Rich\"\". The author talks about setting up the accounts you should have, making sure all your bills are paid automatically, saving on the big things and tips to increase your take home pay. That link goes to a compilation page on the blog with many of the most fundamental articles. However, \"\"The World’s Easiest Guide To Understanding Retirement Accounts\"\" is a particularly key article. While all the information is on the free blog, the book is well organized and concise. The Simple Dollar is a nice blog with frugal living tips, lifestyle assessments, financial thoughts and reader questions. The author also reviews about a book a week. Investing - hoping to get better returns than savings can provide while minimizing risk. This thread is an excellent list of books to learn about investing. I highly recommend \"\"The Bogleheads' Guide to Investing\"\" and \"\"The Only Investment Guide You'll Ever Need\"\". The world of investment vehicles is huge but it doesn't have to be complicated once you ignore all the fads and risky stuff. Index mutual funds are the place to start (and maybe end). Asset allocation and diversification are themes to guide you. The books on that list will teach you.\"",
"title": ""
},
{
"docid": "f43694d6b791a3c2cd5acf2302cdeffa",
"text": "Investopedia does have tutorials about investments in different asset classes. Have you read them ? If you had heard of CFA, you can read their material if you can get hold of it or register for CFA. Their material is quite extensive and primarily designed for newbies. This is one helluva book and advice coming from persons who have showed and proved their tricks. And the good part is loads of advice in one single volume. And what they would suggest is probably opposite of what you would be doing in a hedge fund. And you can always trust google to fish out resources at the click of a button.",
"title": ""
},
{
"docid": "b272698e1679609d91d03ae6740f5359",
"text": "I started my career over 10 years ago and I work in the financial sector. As a young person from a working class family with no rich uncles, I would prioritize my investments like this: It seems to be pretty popular on here to recommend trading individual stocks, granted you've read a book on it. I would thoroughly recommend against this, for a number of reasons. Odds are you will underestimate the risks you're taking, waste time at your job, stress yourself out, and fail to beat a passive index fund. It's seriously not worth it. Some additional out-of-the box ideas for building wealth: Self-serving bias is pervasive in the financial world so be careful about what others tell you about what they know (including me). Good luck.",
"title": ""
}
] |
fiqa
|
48dcabdc81d2b5bad14b3ffbc026185d
|
how does one see the CBOE VIX index on Google Finance?
|
[
{
"docid": "ae1d9140fa353b223f504333df2c180b",
"text": "For whatever reason, I don't believe they offer it. Yahoo does. A google for google finance VIX turns up people asking the question, but no quote on google.",
"title": ""
},
{
"docid": "1853960b1c7da6cdde6a9175cc4b18fe",
"text": "You can pull up the VIX index on Google Finance by entering INDEXCBOE:VIX",
"title": ""
}
] |
[
{
"docid": "d6614c80a1bfd3d9994c53dd2e02b2ba",
"text": "Try Google Finance Screener ; you will be able to filter for NASDAQ and NYSE exchanges.",
"title": ""
},
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "5db2500544c713428b4b849702c8e351",
"text": "In order to see whether you can buy or sell some given quantity of a stock at the current bid price, you need a counterparty (a buyer) who is willing to buy the number of stocks you are wishing to offload. To see whether such a counterparty exists, you can look at the stock's order book, or level two feed. The order book shows all the people who have placed buy or sell orders, the price they are willing to pay, and the quantity they demand at that price. Here is the order book from earlier this morning for the British pharmaceutical company, GlaxoSmithKline PLC. Let's start by looking at the left-hand blue part of the book, beneath the yellow strip. This is called the Buy side. The book is sorted with the highest price at the top, because this is the best price that a seller can presently obtain. If several buyers bid at the same price, then the oldest entry on the book takes precedence. You can see we have five buyers each willing to pay 1543.0 p (that's 1543 British pence, or £15.43) per share. Therefore the current bid price for this instrument is 1543.0. The first buyer wants 175 shares, the next, 300, and so on. The total volume that is demanded at 1543.0p is 2435 shares. This information is summarized on the yellow strip: 5 buyers, total volume of 2435, at 1543.0. These are all buyers who want to buy right now and the exchange will make the trade happen immediately if you put in a sell order for 1543.0 p or less. If you want to sell 2435 shares or fewer, you are good to go. The important thing to note is that once you sell these bidders a total of 2435 shares, then their orders are fulfilled and they will be removed from the order book. At this point, the next bidder is promoted up the book; but his price is 1542.5, 0.5 p lower than before. Absent any further changes to the order book, the bid price will decrease to 1542.5 p. This makes sense because you are selling a lot of shares so you'd expect the market price to be depressed. This information will be disseminated to the level one feed and the level one graph of the stock price will be updated. Thus if you have more than 2435 shares to sell, you cannot expect to execute your order at the bid price in one go. Of course, the more shares you are trying to get rid of, the further down the buy side you will have to go. In reality for a highly liquid stock as this, the order book receives many amendments per second and it is unlikely that your trade would make much difference. On the right hand side of the display you can see the recent trades: these are the times the trades were done (or notified to the exchange), the price of the trade, the volume and the trade type (AT means automatic trade). GlaxoSmithKline is a highly liquid stock with many willing buyers and sellers. But some stocks are less liquid. In order to enable traders to find a counterparty at short notice, exchanges often require less liquid stocks to have market makers. A market maker places buy and sell orders simultaneously, with a spread between the two prices so that they can profit from each transaction. For instance Diurnal Group PLC has had no trades today and no quotes. It has a more complicated order book, enabling both ordinary buyers and sellers to list if they wish, but market makers are separated out at the top. Here you can see that three market makers are providing liquidity on this stock, Peel Hunt (PEEL), Numis (NUMS) and Winterflood (WINS). They have a very unpalatable spread of over 5% between their bid and offer prices. Further in each case the sum total that they are willing to trade is 3000 shares. If you have more than three thousand Dirunal Group shares to sell, you would have to wait for the market makers to come back with a new quote after you'd sold the first 3000.",
"title": ""
},
{
"docid": "0821dcd83a9983f7199d0359f5617117",
"text": "\"There is no good proxy for VIX, because it is a completely made-up value. Most listed options trade on an underlying security. I can therefore choose to buy either the stock, or a future or option on that stock. In this way, the future and option are derivatives in that they derive their value (in part) based on something else, in this case the stock price as of now. VIX is a different entity altogether. It is based on the volatility of the market, using \"\"market expectation of near term volatility conveyed by stock index option prices\"\". But the FAQ goes on to state that they are adding factors into the formula. So right away there is no one equity/stock that you can hold that will necessarily match the VIX in any significant way, because it is not directly based on stocks, but indirectly through other options and computations. In effect, therefore, the VIX in indeed only available through its options, and is not observable (tradable) in and of itself.\"",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
},
{
"docid": "43b5e2eff2438cb0614ae2ecf7afe2da",
"text": "Yes, Alpha Vantage. As MasticatedTesticle points out, it is worth asking where it originally comes from, but it looked to me like a solid source for, in particular, intraday trading data. Additionally, Yahoo finance is done on R (zoo, PerformanceAnalytics libraries don't work anymore as far as I can tell). The numbers look right to me tho, let me know if things are off.",
"title": ""
},
{
"docid": "593f6298656a2b96117729003a4e30dd",
"text": "You bought 1 share of Google at $67.05 while it has a current trading price of $1204.11. Now, if you bought a widget for under $70 and it currently sells for over $1200 that is quite the increase, no? Be careful of what prices you enter into a portfolio tool as some people may be able to use options to have a strike price different than the current trading price by a sizable difference. Take the gain of $1122.06 on an initial cost of $82.05 for seeing where the 1367% is coming. User error on the portfolio will lead to misleading statistics I think as you meant to put in something else, right?",
"title": ""
},
{
"docid": "49c04ad737c5a0deda7822f0b1b98a9c",
"text": "Finviz can be screened by beta which is an index of correlation. Finviz covers all major North American exchanges and some others.",
"title": ""
},
{
"docid": "e50fbda863f078d02e1be7577f198d04",
"text": "http://www.euroinvestor.com/exchanges/nasdaq/macromedia-inc/41408/history will work as DumbCoder states, but didn't contain LEHMQ (Lehman Brother's holding company). You can use Yahoo for companies that have declared bankruptcy, such as Lehman Brothers: http://finance.yahoo.com/q/hp?s=LEHMQ&a=08&b=01&c=2008&d=08&e=30&f=2008&g=d but you have to know the symbol of the holding company.",
"title": ""
},
{
"docid": "b81c6dcc61de45c101cb5c63baecf220",
"text": "The CBOE site, as well as some other sites and trading platforms, will show the bid/ask and statistics for that option at each individual options exchange, in addition to statistics and the best bid/offer across all exchanges. cboe.com: Delayed Quote Help lists what the single-letter codes mean. A is for the AMEX options exchange, B is for BOX, X is for PHLX, etc.",
"title": ""
},
{
"docid": "afdd5a936be2a9b0e538321fa88b1cd4",
"text": "There are multiple ETFs which inversely track the common indices, though many of these are leveraged. For example, SDS tracks approximately -200% of the S&P 500. (Note: due to how these are structured, they are only suitable for very short term investments) You can also consider using Put options for the various indices as well. For example, you could buy a Put for the SPY out a year or so to give you some fairly cheap insurance (assuming it's a small part of your portfolio). One other option is to invest against the market volatility. As the market makes sudden swings, the volatility goes up; this tends to be true more when it falls than when it rises. One way of invesing in market volatility is to trade options against the VIX.",
"title": ""
},
{
"docid": "437554661c8d6cc03e5a8720adac8b7a",
"text": "Has the VIX always received this much attention? I feel like I never really saw articles on it until about 2 years ago, and the attention has especially ramped up post election. Granted, I'm young and may have just not been aware. As the post alludes to, I think a big problem is people's interpretation of VIX being the market expectation of volatility. In a mathematical sense, that would only be valid if 1) the price of options perfectly reflects volatility, and 2) investors can rationally evaluate the future. (1) is arguable as volatility is just the single free parameter in BS and captures all confounded factors in the price, including supply/demand mismatches. (2) is debatable just because it essentially assumes that the wisdom of crowds will be true on average. My prior on this is that they're correct that often, and that the VIX is probably a pretty poor predictor of future realized volatility. I'll check this last claim and edit.",
"title": ""
},
{
"docid": "a11010563c94f613133d44194ae7dfae",
"text": "The official source for the Dow Jones P/E is Dow Jones. Unfortunately, the P/E is behind a pay-wall and not included in the free registration. The easiest (but only approximate) solution is to track against an equivalent ETF. Here's a list of popular indexes with an equivalent ETF. Source",
"title": ""
},
{
"docid": "7c7e2492482cabf5a89816370180c36c",
"text": "The only recommendation I have is to try the stock screener from Google Finance : https://www.google.com/finance?ei=oJz9VenXD8OxmAHR263YBg#stockscreener",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
}
] |
fiqa
|
4b0a7e891fd1dc0c49f9f3aecae15a11
|
Calculate Finance Rate, Interest Amount when we have below line Fees
|
[
{
"docid": "f7907f479ca9dea88aa294511fa079ce",
"text": "The equation for the payment is This board does not support Latex (the number formatting code) so the above is an image, the code is M is the payment calculated, n is the number of months or periods to pay off, and i is the rate per period. You can see that with i appearing 3 times in this equation, it's not possible to isolate to the form i=.... so a calculator will 'guess,' and use, say, 10%. It then raises or lowers the rate until the result is within the calculator's tolerance. I've observed that unlike other calculations, when you hit the button to calculate, a noticeable time lag occurs. I hope I haven't read too much into your question, it seemed to me this was what you asked.",
"title": ""
}
] |
[
{
"docid": "c7cf50b1d08c74636ecff24bf8c02aa3",
"text": "These are the steps I'd follow: $200 today times (1.04)^10 = Cost in year 10. The 6 deposits of $20 will be one time value calculation with a resulting year 7 final value. You then must apply 10% for 3 years (1.1)^3 to get the 10th year result. You now have the shortfall. Divide that by the same (1.1)^3 to shift the present value to start of year 7. (this step might confuse you?) You are left with a problem needing 3 same deposits, a known rate, and desired FV. Solve from there. (Also, welcome from quant.SE. This site doesn't support LATEX, so I edited the image above.)",
"title": ""
},
{
"docid": "f339181a8d572823cf74602bb8c2ac95",
"text": "The number you are trying to calculate is called the Internal Rate of Return (IRR). Google Spreadsheets (and excel) both have an XIRR function that can do this for you fairly simply. Setup a spreadsheet with 1 column for dates, 1 column for investment. Mark your investments as negative numbers (payment to invest). All investments will be negative. Mark your last row with today's date and today's valuation (positive). All withdrawals will be positive, so you are pretending to withdrawal your entire account for the purpose of calculation. Do not record dividends or other interim returns unless you are actually withdrawing money. The XIRR function will calculate your internal rate of return with irregularly timed investments. Links: Article explaining XIRR function (sample spreadsheet in google docs to modify)",
"title": ""
},
{
"docid": "1679ed0311b0aed45606aa58c7616453",
"text": "You can get really nerdy with the EV calc, but I would just add that it's important to deduct any non-operating, non-consolidated assets in addition to the minority interest adjustment - e.g. unconsolidated subsidiaries, excess real estate, excess working capital, etc.",
"title": ""
},
{
"docid": "3d5a8298c41dbfe1d3ded257f82ae06b",
"text": "The Finance functions in spreadsheet software will calculate this for you. The basic functions are for Rate, Payment, PV (present value), FV (Future value), and NPER, the number of periods. The single calculation faces a couple issues, dealing with inflation, and with a changing deposit. If you plan to save for 30 years, and today are saving $500/mo, for example, in ten years I hope the deposits have risen as well. I suggest you use a spreadsheet, a full sheet, to let you adjust for this. Last, there's a strange effect that happens. Precision without accuracy. See the results for 30-40 years of compounding today's deposit given a return of 6%, 7%, up to 10% or so. Your forecast will be as weak as the variable with the greatest range. And there's more than one, return, inflation, percent you'll increase deposits, all unknown, and really unknowable. The best advice I can offer is to save till it hurts, plan for the return to be at the lower end of the range, and every so often, re-evaluate where you stand. Better to turn 40, and see you are on track to retire early, than to plan on too high a return, and at 60 realize you missed it, badly. As far as the spreadsheet goes, this is for the Google Sheets - Type this into a cell =nper(0.01,-100,0,1000,0) It represents 1% interest per month, a payment (deposit) of $100, a starting value of $0, a goal of $1000, and interest added at month end. For whatever reason, a starting balance must be entered as a negative number, for example - =nper(0.01,-100,-500,1000,0) Will return 4.675, the number of months to get you from $500 to $1000 with a $100/mo deposit and 1%/mo return. Someone smarter than I (Chris Degnen comes to mind) can explain why the starting balance needs to be entered this way. But it does show the correct result. As confirmed by my TI BA-35 financial calculator, which doesn't need $500 to be negative.",
"title": ""
},
{
"docid": "e579c480f632018d2e79008cd1ccaa4b",
"text": "Line one shows your 1M, a return with a given rate, and year end withdrawal starting at 25,000. So Line 2 starts with that balance, applies the rate again, and shows the higher withdrawal, by 3%/yr. In Column one, I show the cumulative effect of the 3% inflation, and the last number in this column is the final balance (903K) but divided by the cumulative inflation. To summarize - if you simply get the return of inflation, and start by spending just that amount, you'll find that after 20 years, you have half your real value. The 1.029 is a trial and error method, as I don't know how a finance calculator would handle such a payment flow. I can load the sheet somewhere if you'd like. Note: This is not exactly what the OP was looking for. If the concept is useful, I'll let it stand. If not, downvotes are welcome and I'll delete.",
"title": ""
},
{
"docid": "ceb0296f8c154f411ec59378a46403a7",
"text": "This depends on the loan calculation methodology. If it is on reducing balance then yes. Else not much difference",
"title": ""
},
{
"docid": "1bbb638563f38eb0be7fee88e2c1c70a",
"text": "The 1.140924% is calculated by taking 13.69%/12 = 1.140924%. Dividing this number by 100 gives you the answer 1.140924 / 100 = .01140924. When dealing with decimals it's important to remember the relationship between a decimal and a percent. 1% = .01 To return .01 to a percent you must multiple that number by 100. So .01 x 100 = 1% In order to get a decimal from a percent, which is what is used in calculations, you must divide by 100. So, here if we are trying to calculate how much interest you are paying each month we can do this: 9800 * .1369 = $1341.62 (interest you will pay that year IF the principal balance never changed) 1341.62 / 12 = ~111.81 Now, month two 9578.34 * .1369 = 1311.274746 1311.274746 / 12 = 109.28 In order to get your monthly payments (which won't change) for the life of the loan, you can use this formula: Monthly payment = r(PV) / (1-(1+r)^-n) Where: r= Interest Rate (remember if calculating monthly to do .1369/12) PV= Present Value of loan n=time of loan ( in your case 36 since we are talking monthly and 12*3 = 36) from here we get: [(.1369/12)*9800]/(1-(1+.1369/12)^-36) = $333.467 when rounding is $333.47 As far as actual applied interest rate, I'm not even sure what that number is, but I would like to know once you figure out, since the interest rate you're being charged is most definitely 13.69%.",
"title": ""
},
{
"docid": "418c1aba4dd73fbeabded92cc00ddb0c",
"text": "The question is valid, you just need to work backwards. After how much money-time will the lower expense offset the one time fee? Lower expenses will win given the right sum of money and right duration for the investment.",
"title": ""
},
{
"docid": "9a569aa1c64b6688f4f27726484078a5",
"text": "For this, the internal rate of return is preferred. In short, all cash flows need to be discounted to the present and set equal to 0 so that an implied rate of return can be calculated. You could try to work this out by hand, but it's practically hopeless because of solving for roots of the implied rate of return which are most likely complex. It's better to use a spreadsheet with this capability such as OpenOffice's Calc. The average return on equity is 9%, so anything higher than that is a rational choice. Example Using this simple tool, the formula variables can easily be input. For instance, the first year has a presumed cash inflow of $2,460 because the insurance has a 30% discount from $8,200 that is assumed to be otherwise paid, a cash inflow of $40,000 to finance the sprinklers, a cash outflow of $40,000 to fund the sprinklers, a $400 outflow for inspection, and an outflow in the amount of the first year's interest on the loan. This should be repeated for each year. They can be input undiscounted, as they are, for each year, and the calculator will do the rest.",
"title": ""
},
{
"docid": "4864753b99d7a96b7700b749d5cb8693",
"text": "The solution to this problem is somewhat like grading on a curve. Use the consumption ratio multiplied by the attendance (which is also a ratio, out of 100 days) to calculate how much each person owes. This will leave you short. Then add together all of the shares in a category, determine the % increase required to get to the actual cost of that category, and increase all the shares by that %.",
"title": ""
},
{
"docid": "01f802919d3d8a84192800cb0bda9181",
"text": "A lease payment is composed of an interest portion (borrowed money) and depreciation amount (purchase - residual). The Monthly payment is then Monthly Interest Cost + Monthly Depreciation Cost The Money Factor is used to estimate the amount of interest due in a single month of a lease so you can figure out the monthly payment. If you are borrowing $100,000 then over the entire loan of repayment from a balance of $100,000 to a balance of $0, the average amount you owed was $50,000 (1/2 of principal). You are repaying this loan monthly (1/12 of a year) and percents are expressed as decimals (1/100). 6 * 1/2 (for principal) * 1/12 (for monthly) * 1/100 (to convert percentage from 6% to .06) = 6 * 1/2400. 2400 is the product of 3 consecutive conversion (1/2 * 1/12 * 1/100) to convert from an interest rate to a money factor. 6/2400 = Money factor of 0.0025 which can be multiplied against the total amount being borrowed to know what the monthly interest would roughly equal. Some Money Factor info: https://www.alphaleasing.com/resources/articles/MoneyFactor.asp",
"title": ""
},
{
"docid": "ce67213c02975c72d0ddd432803db58a",
"text": "1: Low fees means: a Total Expense Ratio of less than 0,5%. One detail you may also want to pay attention to whether the fund reinvests returns (Thesaurierender Fonds) which is basically good for investing, but if it's also a foreign-based fund then taxes get complicated, see http://www.finanztip.de/indexfonds-etf/thesaurierende-fonds/",
"title": ""
},
{
"docid": "452f27da8e2c009b017c0b881ec4cf77",
"text": "I have answered your question in detail here https://stackoverflow.com/questions/12396422/apr-calculation-formula The annuity formula in FDIC document is at first finding PVIFAD present value annuity due factor and multiplying it with annuity payment and then dividing it by an interest factor of (1+i) to reduce the annuity to an ordinary annuity with end of period payments They could have simply used PVIFA and multiplying it with annuity payment to find the present value of an ordinary annuity In any case, you should not follow the directions in FDIC document to find interest rate at which the present value of annuity equals the loan amount. The method they are employing is commonly used by Finance Professors to teach their students how to find internal rate of return. The method is prone to lengthy trial and error attempts without having any way of knowing what rate to use as an initial guess to kick off the interest rate calculations So this is what I would suggest if you are not short on time and would like to get yourself familiar with numerical methods or iterative techniques to find internal rate of return There are way too many methods at disposal when it comes to finding interest rates some of which include All of the above methods use a seed value as a guess rate to start the iterative calculations and if results from successive calculations tend to converge within a certain absolute Error bound, we assume that one of the rates have been found as there may be as many rates as the order of the polynomial in this case 36 There are however some other methods that help find all rates by making use of Eigenvalues, but for this you would need a lengthy discourse of Linear Algebra One of the methods that I have come across which was published in the US in 1969 (the year I was born :) ) is called the Jenkins Traub method named after the two individuals who worked jointly on finding a solution to all roots of a polynomial discarding any previous work on the same subject I been trying to go over the Jenkins Traub algorithm but am having difficulty understanding the complex nature of the calculations required to find all roots of the polynomial In summary you would be better of reading up on this site about the Newton Raphson method to find IRR",
"title": ""
},
{
"docid": "b26146f4690f6340fd7e29cdd4f8fd28",
"text": "Here's the purely mathematical answer for which fees hurt more. You say taking the money out has an immediate cost of $60,000. We need to calculate the present value of the future fees and compare it against that number. Let's assume that the investment will grow at the same rate either with or without the broker. That's actually a bit generous to the broker, since they're probably investing it in funds that in turn charge unjustifiable fees. We can calculate the present cost of the fees by calculating the difference between: As it turns out, this number doesn't depend on how much we should expect to get as investment returns. Doing the math, the fees cost: 220000 - 220000 * (1-0.015)^40 = $99809 That is, the cost of the fees is comparable to paying nearly $100,000 right now. Nearly half the investment! If there are no other options, I strongly recommend taking the one-time hit and investing elsewhere, preferably in low-cost index funds. Details of the derivation. For simplicity, assume that both fees and growth compound continuously. (The growth does compound continuously. We don't know about the fees, but in any case the distinction isn't very significant.) Fees occur at a (continuous) rate of rf = ln((1-0.015)^4) (which is negative), and growth occurs at rate rg. The OPs current principal is P, and the present value of the fees over time is F. We therefore have the equation P e^((rg+rf)t) = (P-F) e^(rg t) Solving for F, we notice that the e^rg*t components cancel, and we obtain F = P - P e^(rf t) = P - P e^(ln((1-0.015)^4) t) = P - P (1-0.015)^(4t)",
"title": ""
},
{
"docid": "50c29401d0ad5c19a05ba7f906e56cbe",
"text": "I was typing up a long response and lost it to a backspace.. so, I apologize but I don't intend on rewriting it all. You'll have to use a method called bootstrapping to get the forward rates. Essentially you're looking at the spot rate today, and the forward rates, then filling in what must be the rate to make them equal out in the end. Sorry I'm not more help!",
"title": ""
}
] |
fiqa
|
9acd9bfd5983117f188dc2eb47474797
|
Why is financial data of some public companies not available on Yahoo Finance?
|
[
{
"docid": "7d027612ddcd870c80169012f36ef6d5",
"text": "In general, the short answer is to use SEDAR, the Canadian database that compiles financial statements for Canadian companies. The financial statements for Pacific Rubiales Energy Corp can be found here. The long answer is that the data might be missing because in Canada, each province has their own agency to regulate securities. Yahoo might not compile information from such a wide array of sources. If other countries also have a decentralized system, Yahoo might not take the time to compile financial information from all these sources. There are a myriad of other reasons that could cause this too, however. This is why SEDAR is useful; it 's the Canadian equivalent of the SEC's EDGAR database, and it maintains a sizeable database of financial statements.",
"title": ""
},
{
"docid": "26263c06cc76b461c3899c9387a36d3d",
"text": "http://www.pacificrubiales.com/investor-relations/reports.html does have financial reports on their website for the example you list. There is the potential for some data to not be easily imported into a format that Yahoo! Finance uses would be my guess for why some data may be missing though an alternative explanation for some companies would be that they may not have been around for a long enough time period to report this information,e.g. if the company is a spin-off of an existing company.",
"title": ""
}
] |
[
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "2649f29b989d8e7f895fca5b3d7d7194",
"text": "\"At the bottom of Yahoo! Finance's S & P 500 quote Quotes are real-time for NASDAQ, NYSE, and NYSE MKT. See also delay times for other exchanges. All information provided \"\"as is\"\" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein. Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Orderbook quotes are provided by BATS Exchange. US Financials data provided by Edgar Online and all other Financials provided by Capital IQ. International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. Thus, yes there is a DB being accessed that there is likely an agreement between Yahoo! and the providers.\"",
"title": ""
},
{
"docid": "de242c20e4e0b92003730a296c3ef71c",
"text": "The difference is that Yahoo is showing the unadjusted price that the security traded for on that date, while google is adjusting for price splits. This means that Google is showing how much you would have had to pay to get what is now one share. Since 1979, JNJ has split 3-for-1 once, and 2-for-1 four times. 3x2x2x2x2 = 48. If you bought 1 share at that time, you would now have 48 shares today. Yahoo is showing a price of $66 for what was then 1 share. $66/48 = 1.375, which Google rounds to 1.38. You can see this if you get the prices from May 14-21, 1981. The stock split 3-for-1, and the price dropped from 108 to 36.38. Yahoo's adjusted close column has not been accurate since they re-wrote the Finance website. It now just represents the closing price. The other relevant field on Yahoo is the Adj. Close. This adjusts for splits, but also adjusts for dividends. Hence why this doesn't match either the Google or Yahoo numbers.",
"title": ""
},
{
"docid": "23b8c89a673ed3d13114a805d1a96364",
"text": "If you're researching a publicly traded company in the USA, you can search the company filings with the SEC. Clicking 'Filings' should take you here.",
"title": ""
},
{
"docid": "6961c159c3e893bc40db146581555e20",
"text": "There are lots of things that can be graphed apart from financial data. Like flight data, for example. With the level of detail visible in the pics on that site, what reason is there to conclude that's market data? Interesting theory tho.",
"title": ""
},
{
"docid": "c7925c388a4ae383d3f58c8a67ecb5e9",
"text": "Maybe it's just because of the foundation date. If I start a company on August 1st, I would like its FY starts on that date too, in order to track my first whole year. Would be quite useless to finish my year on December, after just five months. I want to have data of my first year after a twelve months activity.",
"title": ""
},
{
"docid": "96ffe6a551593b9b69ec6a68d6a2175b",
"text": "You may refer to project http://jstock.sourceforge.net. It is open source and released under GPL. It is fetching data from Yahoo! Finance, include delayed current price and historical price.",
"title": ""
},
{
"docid": "42ae41bba0cb5ada50da52201b1b7d59",
"text": "Previously, Google had a delayed update for their stock prices (15 minutes I believe). That change enabled users of Google Finance to see updates to stock prices in real-time.",
"title": ""
},
{
"docid": "57c412fe4c06eb13496ba96739bf6d9f",
"text": "No, there is no such list, as the other answers mention it is practically impossible to compile one. However you can see the institutional investors of a public company. MSN Money has this information available in a fair amount of details. For example see the Institutional Investors of GOOG",
"title": ""
},
{
"docid": "3b97c12e43ff897b685f9465d1f85e67",
"text": "I had the same problem and was looking for a software that would give me easy access to historical financial statements of a company, preferably in a chart. So that I could easily compare earnings per share or other data between competitors. Have a look at Stockdance this might be what you are looking for. Reuters Terminal is way out of my league (price and complexity) and Yahoo and Google Finance just don't offer the features I want, especially on financials. Stockdance offers a sort of stock selection check list on which you can define your own criterion’s. Hence it makes no investment suggestions but let's you implement your own investing strategy.",
"title": ""
},
{
"docid": "3d8dba8e9987f3172b1977f28b4635e7",
"text": "Its Price/Earnings, or P/E, is at (roughly) 96 That means that for EVERY $1 that Amazon makes in profit, people are willing to pay $96 for it. This also means that for every $1 I invest in Amazon, I'll have to wait 96 years until I've collected on that - and that's assuming that 100% of their profit goes out through dividends, something that Amazon doesn't give out. This is either because the stock price is really high, or because its earnings is LOW. Is this kind of ridiculous P/E common among the US stock (I'm not from the US)? Is there something going on in Amazon? Am I missing something (I'm a little new myself)? I'm looking at [this graph](http://i.imgur.com/4YpDH.png). Return on Equity (aka RoE) has been going down. This is either because it has added more shareholders equity (equity issuance?), OR it's because net income has been falling. When you compare this to the rising P/E this recent year, something tells me that something is screwed up. People have been valuing Amazon *more and more*, while Amazon has been providing *less and less* to its shareholders! [Here's more statistics](http://i.imgur.com/kJjPW.png) showing profit margin going down the last year, while the valuation went up (though it has been falling as it maxed at P/E 113). So, either I've missed something (some awesome news or whatever), or I'm uneducated, or this stock has been overvalued. I'm assuming that it probably was a mix of the first and the last, and that this is just a correction. Correct *me* if I'm wrong.",
"title": ""
},
{
"docid": "79d5438b0c557a93e7157a96506906bf",
"text": "I work on a buy-side firm, so I know how these small data issues can drive us crazy. Hope my answer below can help you: Reason for price difference: 1. Vendor and data source Basically, data providers such as Google and Yahoo redistribute EOD data by aggregating data from their vendors. Although the raw data is taken from the same exchanges, different vendors tend to collect them through different trading platforms. For example, Yahoo, is getting stock data from Hemscott (which was acquired by Morningstar), which is not the most accurate source of EOD stocks. Google gets data from Deutsche Börse. To make the process more complicated, each vendor can choose to get EOD data from another EOD data provider or the exchange itself, or they can produce their own open, high, low, close and volume from the actual trade tick-data, and these data may come from any exchanges. 2. Price Adjustment For equities data, the re-distributor usually adjusts the raw data by applying certain customized procedures. This includes adjustment for corporate actions, such as dividends and splits. For futures data, rolling is required, and back-ward and for-warding rolling can be chosen. Different adjustment methods can lead to different price display. 3. Extended trading hours Along with the growth of electronic trading, many market tends to trade during extended hours, such as pre-open and post-close trading periods. Futures and FX markets even trade around the clock. This leads to another freedom in price reporting: whether to include the price movement during the extended trading hours. Conclusion To cross-verify the true price, we should always check the price from the Exchange where the asset is actually traded. Given the convenience of getting EOD data nowadays, this task should be easy to achieve. In fact, for professional traders and investors alike, they will never reply price on free providers such as Yahoo and Google, they will most likely choose Bloomberg, Reuters, etc. However, for personal use, Yahoo and Google should both be good choices, and the difference is small enough to ignore.",
"title": ""
},
{
"docid": "14a425ef8cb11db564bada29217d8e6f",
"text": "First - Google's snapshot - Then - Yahoo - I took these snapshots because they will not exist on line after the market opens, and without this context, your question won't make sense. With the two snapshots you can see, Yahoo shows the after hours trades and not just the official market close for the day. The amount it's down is exactly tracked from the close shown on Google. Now you know.",
"title": ""
},
{
"docid": "c139204ef8db6cebd5386f5e6f653212",
"text": "You'd have to buy that information. Quoting from this page, Commercial Historical Data Higher resolution and more complete datasets are generally not available for free. Below is a list of vendors which have passed our quality screening (in total, we screened over a dozen vendors). To qualify, the vendor must aggregate data from all US national/regional exchanges as only complete datasets are suitable for research use. The last point is especially important as there are many vendors who just get data from a couple sources and is missing important information such as dark pool trades. They offer some alternatives for free data: Daily Resolution Data 1) Yahoo! Finance– Daily resolution data, with split/dividend adjustments can be downloaded from here. The download procedure can be automated using this tool. Note, Yahoo quite frequently has errors in its database and does not contain data for delisted symbols. 2) QuantQuote Free Data– QuantQuote offers free daily resolution data for the S&P500 at this web page under the Free Data tab. The data accounts for symbol changes, splits, and dividends, and is largely free of the errors found in the Yahoo data. Note, only 500 symbols are available unlike Yahoo which provides all listed symbols. And they list recommendations about who to buy the data from.",
"title": ""
},
{
"docid": "fc8673c9c96f25059fcf3f3becd6bc98",
"text": "\"Depending on how you view the loan, it could either be considered an Asset or a Liability. Since you are not charging interest, it might seem more intuitive to create an \"\"Assets:Cash Loan\"\" account, and transfer money to & from it (when you receive payments) like you would with a bank account. Personally, I prefer to think of all loans as liabilities. Whether it's a debt which you owe someone, or a balance which someone else owes you, since it's an 'unsettled' amount I file it under \"\"Liabilities:Loan\"\". Either way, you record the initial balance as a debit from your bank, and then record payments as credits back to your primary account. The only way that income or expenses ever gets involved would be if you charged interest (income) or if you forgave some or all of the loan (expense) at some point in the future.\"",
"title": ""
}
] |
fiqa
|
9e8840d051bc266de441059e0902ebe4
|
Comparing option data between yahoo finance and CBOE for SPY options
|
[
{
"docid": "b81c6dcc61de45c101cb5c63baecf220",
"text": "The CBOE site, as well as some other sites and trading platforms, will show the bid/ask and statistics for that option at each individual options exchange, in addition to statistics and the best bid/offer across all exchanges. cboe.com: Delayed Quote Help lists what the single-letter codes mean. A is for the AMEX options exchange, B is for BOX, X is for PHLX, etc.",
"title": ""
}
] |
[
{
"docid": "867938426d19347fb40cde94e4d03fc8",
"text": "Many exchanges trade the same securities. An order may be posted to a secondary exchange, but if the National Best Bid and Offer data provider malfunctions, only those with data feeds from that exchange will see it. Only the data provider for the primary exchange where a stock is listed provides the NBBO. Missing orders are very common with the NBBO data providers. NASDAQ's order consolidator has had many failures over the past few years, and the data provider's top executive has recently resigned. Brokers have no control over this system. A broker may be alerted to a malfunction by an accountholder, but a broker may only inform the relevant exchange and the relevant data provider.",
"title": ""
},
{
"docid": "16fc45daadb1b77449a00539b723e29d",
"text": "There are several Excel spreadsheets for downloading stock quotes (from Yahoo Finance), and historical exchange rates at http://investexcel.net/financial-web-services-kb",
"title": ""
},
{
"docid": "5596b89a7503739bfe1ed3ba97b4b993",
"text": "Robert Shiller has an on-line page with links to download some historical data that may be what you want here. Center for the Research in Security Prices would be my suggestion for another resource here.",
"title": ""
},
{
"docid": "3befa06aff1f9bdd4c44321420a6f7d0",
"text": "Options - yes we can :) Options tickers on Yahoo! Finance will be displayed as per new options symbology announced by OCC. The basic parts of new option symbol are: Root symbol + Expiration Year(yy)+ Expiration Month(mm)+ Expiration Day(dd) + Call/Put Indicator (C or P) + Strike price Ex.: AAPL January 19 2013, Put 615 would be AAPL130119P00615000 http://finance.yahoo.com/q?s=AAPL130119P00615000&ql=1 Futures - yes as well (: Ex.: 6A.M12.E would be 6AM12.CME using Yahoo Finance symbology. (simple as that, try it out) Get your major futures symbols from here: http://quotes.ino.com/exchanges/exchange.html?e=CME",
"title": ""
},
{
"docid": "e199386f1d027b25ef7b9096c3f27a4e",
"text": "\"http://www.interactivedata.com -> reference data No, it's not free. Nor would I consider it \"\"high quality\"\". For free data, try the Yahoo Finance API. The data you want is there, though you may need to calculate some of the fields yourself. Once you have your application working with free data you will be in a good position to evaluate whether it's worth it to shift to more detailed non-free data.\"",
"title": ""
},
{
"docid": "a6cf13ea4d096712e382bab3746657bf",
"text": "\"BestInvest is a UK site looking at that URL, base on the \"\"co.uk\"\" ending. Yahoo! Finance that you use is a US-based site unless you add something else to the URL. UK & Ireland Yahoo! Finance is different from where you were as there is something to be said for where are you looking. If I was looking for a quarter dollar there are Canadian and American coins that meet this so there is something to be said for a higher level of categorization being done. \"\"EUN.L\"\" would likely denote the \"\"London\"\" exchange as tickers are exchange-specific you do realize, right?\"",
"title": ""
},
{
"docid": "e43c9ee414d6a7a2bde3ec4186fd12a6",
"text": "you can try CME DataSuite. Your broker gives you real time options quotes. If you do not have one you can open a scottrade account with just $500 deposit. When I moved my money from scottrade to ameritrade they did not close my account even till this day I can access my scottrade account and see real time quotes and the same research they offered me before. You can try withdrawing your deposit and see if it stays open like mine did.",
"title": ""
},
{
"docid": "96ffe6a551593b9b69ec6a68d6a2175b",
"text": "You may refer to project http://jstock.sourceforge.net. It is open source and released under GPL. It is fetching data from Yahoo! Finance, include delayed current price and historical price.",
"title": ""
},
{
"docid": "6715398b77d54f3615158a59b309c063",
"text": "\"Interactive Brokers offers global securities trading. Notice that the security types are: cash, stock (STK), futures (FUT), options (OPT), futures options (FOP), warrants (WAR), bonds, contracts for differences (CFD), or Dutch warrants (IOPT) There is a distinction between options (OPT), warrants (WAR), options on futures (FOP) and finally, Dutch Warrants (IOPT). IOPT is intuitively similar to an \"\"index option\"\". (For index option valuation equations, iopt=1 for a call, and iopt= -1 for a put. I don't know if Interactive Brokers uses that convention). What is the difference between a \"\"Dutch Warrant\"\" and an option or warrant? Dutch warrants aren't analogous to Dutch auctions e.g. in the U.S.Treasury bond market. For North America, Interactive Brokers only lists commissions for traditional warrants and options, that is, warrants and options that have a single stock as the underlying security. For Asia and Europe, Interactive Brokers lists both the \"\"regular\"\" options (and warrants) as well as \"\"equity index options\"\", see commission schedule. Dutch warrants are actually more like options than warrants, and that may be why Interactive Brokers refers to them as IOPTS (index options). Here's some background from a research article about Dutch warrants (which was NOT easy to find): In the Netherlands, ING Bank introduced call and put warrants on the FT-SE 100, the CAC 40 and the German DAX indexes. These are some differences between [Dutch] index warrants and exchange traded index options: That last point is the most important, as it makes the pricing and valuation less subject to arbitrage. Last part of the question: Where do you find Structured Products on Interactive Brokers website? Look on the Products page (rather than the Commissions page, which does't mention Structured Products at all). There is a Structured Products tab with details.\"",
"title": ""
},
{
"docid": "99386fa9b260421fb0738fe172b98ebb",
"text": "As another answer started, this information comes straight from an exchange and generally costs a fortune . . . However things change: IEX, a new exchange, recently opened and they are offering real time bid/ask data for free. Here's the API description: https://www.iextrading.com/developer/ This data should be good for active securities, but for securities less actively traded the numbers might be stale.",
"title": ""
},
{
"docid": "430961d780438b43287f18127a74b772",
"text": "For self-service type online customers, OptionsXpress gives me far better trading features(like technicals advanced conditions) and tools, ACH money management & scheduling, fullfillment too. $9 stock trades. I don't know if they yet share Schwab's (their new parent company?) commission-free ETFs getting so trendy nowadays.",
"title": ""
},
{
"docid": "1a9e38527d7e1f9e8e0d36c2cc010dfc",
"text": "\"I'm assuming the question is about how to compare two ETFs that track the same index. I'd look at (for ETFs -- ignoring index funds): So, for example you might compare SPY vs IVV: SPY has about 100x the volume. Sure, IVV has 2M shares trading, so it is liquid \"\"enough\"\". But the bigger volume on SPY might matter to you if you use options: open interest is as much as 1000x more on SPY. Even if you have no interest in options, the spreads on SPY are probably going to be slightly smaller. They both have 0.09% expense ratios. When I looked on 2010-9-6, SPY was trading at a slight discount, IVV was at a slight premium. Looking for any sort of trend is left as an exercise to the reader... Grab the prospectus for each to examine the rules they set for fund makeup. Both come from well-known issuers and have a decent history. (Rather than crazy Uncle Ed's pawn shop, or the Central Bank of Stilumunistan.) So unless you find something in the SPY prospectus that makes you queasy, the higher volume and equal expense ratios would seem to suggest it over IVV. The fact that it is at a (tiny) discount right now is a (tiny) bonus.\"",
"title": ""
},
{
"docid": "420f4726f5eff4d17dbcf18d85d62d3b",
"text": "Google Finance and Yahoo Finance have been transitioning their API (data interface) over the last 3 months. They are currently unreliable. If you're just interested in historical price data, I would recommend either Quandl or Tiingo (I am not affiliated with either, but I use them as data sources). Both have the same historical data (open, close, high, low, dividends, etc.) on a daily closing for thousands of Ticker symbols. Each service requires you to register and get a unique token. For basic historical data, there is no charge. I've been using both for many months and the data quality has been excellent and API (at least for python) is very easy! If you have an inclination for python software development, you can read about the drama with Google and Yahoo finance at the pandas-datareader group at https://github.com/pydata/pandas-datareader.",
"title": ""
},
{
"docid": "d6614c80a1bfd3d9994c53dd2e02b2ba",
"text": "Try Google Finance Screener ; you will be able to filter for NASDAQ and NYSE exchanges.",
"title": ""
},
{
"docid": "9d9cfa352ce07f9aa89d06d2a710373e",
"text": "I don't see it in any of the exchange feeds I've gone through, including the SIPs. Not sure if there's something wrong with Nasdaq Last Sale (I don't have that feed) but it should be putting out the exact same data as ITCH.",
"title": ""
}
] |
fiqa
|
8232ca8d23997cbc7bf14ee759c8255a
|
Advantage of Financial Times vs. free news sources for improving own knowledge of finance?
|
[
{
"docid": "953998066744ca70bd3d52152d186a3a",
"text": "\"If you are interested in a career in algorithmic trading, I strongly encourage you to formally study math and computer science. Algorithmic trading firms have no need for employees with financial knowledge; if they did, they'd just be called \"\"trading\"\" firms. Rather, they need experts in machine learning, statistical modeling, and computer science in general. Of course there are other avenues of employment at an algorithmic trading firm, such as accounting, clearing, exchange relations, etc. If that's the sort of thing you're interested in, again you'll probably want a formal education in those areas as opposed to just reading about finance in the news. If you edit your question or add a comment below with information about your particular background, I could perhaps advise you in a bit more detail. ::edit:: Given your comment, I would say you have a fine academic background for the industry. When hiring mathematicians, firms care most about the ease with which you can explore and extract features from massive datasets (especially time series) regardless of what the dataset might represent. An intelligent firm will not care whether you arrive at their doorstep with zero finance knowledge; they will want to teach you everything from scratch anyway. Nonetheless, some domain knowledge could be helpful, but you're not going to get \"\"more\"\" of it from reading any mass market news source, whether you have to pay for it or not. That's because Some non-mass-market news sources in the industry are These are subscription-only and actually discuss real information that real professional investors care about. They are loaded with industry jargon, they're extremely opinionated, and (in my opinion) they're useless. I can't imagine trying to learn about the industry from them, but if you want to spend money for news in order to be exposed to the innards of the industry, then either of these is far better than the Financial Times. Despite requiring a subscription, the Financial Times still does not cover the technical details of professional trading. Instead of trying to learn from news, then, I would suggest some old favorites: and, above all else, Read everything in the navigation box on the right side under Financial Markets and Financial Instruments.\"",
"title": ""
},
{
"docid": "17cf758f8e2e0a11647bb7e31b985214",
"text": "I recommend using Morning Brew. They email you a free daily newsletter with the top financial news stories and earnings events. I have subscribed to the Wall Street Journal and Financial Times before. Morning Brew basically covers all of the headlines you would see on those sites.",
"title": ""
}
] |
[
{
"docid": "5b00300f2a333c26c62eefd7a6367917",
"text": "When you look at the charts in Google Finance, they put the news on the right hand side. The time stamp for each news item is indicated with a letter in the chart. This often shows what news the market is reacting to. In your example: Clicking on the letter F leads to this Reuters story: http://www.reuters.com/article/2011/02/04/usa-housing-s-idUSWAT01486120110204",
"title": ""
},
{
"docid": "86b61a90ea52490a30f14b30e5b529ea",
"text": "I really want people to answer this. I need to build my general macro repertoire and good news is key. I was getting the Bridgewater Dailies at my last job and they are *fantastic*. Unfortunately they are super expensive and only businesses can afford them. I read a lot of the general economics output of major banks which is free on their websites. I also read a selection of blogs which have an economics/macro tilt, but tend to be a lot of opinion and academic stuff. This is what I've been reading recently: [Krugman](http://krugman.blogs.nytimes.com/) [Marginal Revolution](http://marginalrevolution.com/) [Project Syndicate](http://www.project-syndicate.org/) [Noah Smith](http://noahpinionblog.blogspot.jp/) [The Upshot](http://www.nytimes.com/upshot/) I also read Reuters for economics news generally since there is no paywall. Hope this helps, and I really hope there is more quality free stuff out there that I've missed.",
"title": ""
},
{
"docid": "b2d27d9aa0824213fa71520c93956ae6",
"text": "I'm not familiar enough with finance in any capacity to know what the difference is between financial services or a finance department (beyond what you said); my familiarity of the industry extends to trading, rating, and financial law enforcement. But at a glance on mobile, that looks like pretty much exactly what I was looking for. I have no connect to the industry, but habe been on a Wall St media binge lately, and like to understand powerful/influencial sectors of society anyways. Thanks.",
"title": ""
},
{
"docid": "fe2b4964c94e8abe07e89dd3184434d5",
"text": "A lot of business sites are subscription only. Financial Times is the most obvious example. The Economist is the other. At least The Economist is making a very strong, healthy profit. A lot of other businesses work on a Freemium model, most obviously Bloomberg. The Bloomberg Terminal costs 24k a year to lease, and it has a stronghold on the financial community. But you can get tons of Bloomberg news and data on their site/channel for free. Why? Because having that wide public reach adds value to Bloomberg--they have access to a lot of industry insiders who exchange tips etc. for the ability to leak info to the public, etc. It's a smart business model and works very well. There are other models that work equally well, but I think a lot of people don't really realize this.",
"title": ""
},
{
"docid": "b4a2c069e2edc99ea7564268e3c15177",
"text": "ZeroHedge is the best, although it appeals to a particular audience (highly educated economics/business folks with a very negative view of government). They pull articles from all over the web, so you get a really good aggregator with maybe 20 articles/day of high quality work. Bloomberg I read if there's a good topic. That pops up on facebook for me and I read probably 10/day. Wall Street Journal is great if you want mainstream (read: delayed) business news. Most of the things that are truly news are long-term in nature and you'd read about them on ZeroHedge far before the WSJ. I used to read Dealbook a lot, although I've gotten away from it lately due to the lack of mergers & acquisitions activity. Lastly, I used to have a blogroll of maybe 5-10 investment blogs with truly great writers/thinkers, but alas, most have stopped writing now. sorry about the delay. forgot I saw your question.",
"title": ""
},
{
"docid": "77ecf212f4efc907eee18d547f3912ca",
"text": "No career advice or homework help (unless your homework is some kind of big project and you need an explanation on a concept). I want to see financial news, legislation concerning the markets and regulation, self posts about financial concepts, opinion articles about finance from reputable sources, etc.",
"title": ""
},
{
"docid": "f7c88a34a19c3733628f3d876b4824f0",
"text": "My two cents: I, like many people in finance, got into it for the money. However, I like many other people, found myself liking it for intrinsic reasons once I got into it. I genuinely enjoy learning about financial theory, economics, understanding how global markets work, following the different story lines for the EU/US/Asian economies, working on financial models, reading the WSJ, keeping up to date on new earning releases, analyzing investments, learning about companies/industries, etc. But I never would have found out that I liked these things unless I had chosen to study them and the only reason I chose to study them in the first place was because I wanted to make money. I'd take an intro finance class and see if it seems like something that could grow on you.",
"title": ""
},
{
"docid": "a1e602cc8a0a180de687772c277a3c8b",
"text": "Depends what you mean by business world and finance world. NYTimes Sunday business section is a good start - mostly for large business. The Only Investment Guide You'll Ever Need by Andrew Tobias for how to invest your personal money - and you'll see why no one who says they can predict the market is accurate for very long. INC Magazine for running a small company",
"title": ""
},
{
"docid": "86b35b25f883dbda4f6626fba74a404f",
"text": "Yes, there are very lucrative opportunities available by using financial news releases. A lot of times other people just aren't looking in less popular markets, or you may observe the news source before other people realize it, or may interpret the news differently than the other market participants. There is also the buy the rumor, sell the news mantra - for positive expected information (opposite for negative expected news), which results in a counterintuitive trading pattern.",
"title": ""
},
{
"docid": "29a40af24f93fca95608892442b874f3",
"text": "There are all sorts of topics in finance that take a lot of time to learn. You have valuation (time value of money, capital asset pricing model, dividend discount model, etc.), financial statement analysis (ratio analysis, free cash flow & discounted cash flow, etc.) , capital structure analysis(Modgliani & Miller theories of capital structure, weighted average cost of capital, more CAPM, the likes), and portfolio management (asset allocation, security selection, integrates financial statement analysis + other fields like derivatives, fixed income, forex, and commodity markets) and all sorts. My opinion of Investopedia is that there is a lot of wheat with the chaff. I think articles/entries are just user-submitted and there are good gems in Investopedia but a lot of it only covers very basic concepts. And you often don't know what you don't know, so you might come out with a weak understanding of something. To begin, you need to understand TVM and why it works. Time value of money is a critical concept of finance that I feel many people don't truly grasp and just understand you need some 'rate' to use for this formula. Also, as a prereq, you should understand basics of accrual accounting (debits & credits) and how the accounting system works. Don't need to know things like asset retirement obligations, or anything fancy, just how accounting works and how things affect certain financial statements. After that, I'd jump into CAPM and cost of capital. Cost of capital is also a very misunderstood concept since schools often just give students the 'cost of capital' for math problems when in reality, it's not just an explicit number but more of a 'general feeling' in the environment. Calculating cost of capital is actually often very tricky (market risk premium) and subjective, sometimes it's not (LIBOR based). After that, you can build up on those basic concepts and start to do things like dividend discount models (basic theory underlying asset pricing models) and capital asset pricing models, which builds on the idea of cost of capital. Then go into valuation. Learn how to price equities, bonds, derivatives, etc. For example, you have the dividend discount model with typical equities and perpetuities. Fixed income has things like duration & convexity to measure risk and analyze yield curves. Derivatives, you have the Black-Scholes model and other 'derivatives' (heh) of that formula for calculating prices of options, futures, CDOs, etc. Valuation is essentially taking the idea of TVM to the next logical step. Then you can start delving into financial modelling. Free cash flows, discounted cash flows, ratio analysis, pro forma projections. Start small, use a structured problem that gives you some inputs and just do calculations. Bonuses* would be ideas of capital structure (really not necessary for entry level positions) like the M&M theorems on capital structure (debt vs equity), portfolio management (risk management, asset allocation, hedging, investment strategies like straddles, inverse floaters, etc), and knowledge of financial institutions and banking regulations (Basel accords, depository regulations, the Fed, etc.). Once you gain an understanding of how this works, pick something out there and do a report on it. Then you'll be left with a single 'word problem' that gives you nothing except a problem and tells you to find an answer. You'll have to find all the inputs and give reasons why these inputs are sound and reasonable inputs for this analysis. A big part that people don't understand about projections and analysis is that **inputs don't exist in plain sight**. You have to make a lot of judgment calls when making these assumptions and it takes a lot of technical understanding to make a reasonable assumption--of which the results of your report highly depend on. As a finance student, you get a taste for all of this. I'm gonna say it's going to be hard to learn a lot of substantial info in 2 months, but I'm not exactly sure what big business expects out of their grunts. You'll mostly be doing practical work like desk jockey business, data entry, and other labor-based jobs. If you know what you're talking about, you can probably work up to something more specialized like underwriting or risk management or something else. Source: Finance degree but currently working towards starting a (finance related) company to draw on my programming background as well.",
"title": ""
},
{
"docid": "15a8d776bf4427047a8a551633407a1b",
"text": "\"You need to understand how various entities make their money. Once you know that, you can determine whether their interests are aligned with yours. For example, a full-service broker makes money when you buy and sell stocks. They therefore have in interest in you doing lots of buying, and selling, not in making you money. Or, no-fee financial advisors make their money through commissions on what they sell you, which means their interests are served by selling you those investments with high commissions, not the investments that would serve you best. Financial media makes their money through attracting viewers/readers and selling advertising. That is their business, and they are not in the business of giving good advice. There are lots of good investments - index funds are a great example - that don't get much attention because there isn't any money in them. In fact, the majority of \"\"wall street\"\" is not aligned with your interests, so be skeptical of the financial industry in general. There are \"\"for fee\"\" financial advisors who you pay directly; their interests are fairly well aligned with yours. There is a fair amount of good information at The Motley Fool\"",
"title": ""
},
{
"docid": "b8284a304ec0a33537118b3160d64bd4",
"text": "Imagine an internet where the best content was behind a pay wall while the buzzfeed, gawker, and even yahoo were free. You can get your standard journalism plus clickbait for free, but you could also support the greatest content on the web while providing it greater power by generating it revenue. All by choice, of course. If you don't want a premium product, the best journalism and well constructed opinion pieces, don't pay for it. Of course freemium, such as the way the economist is currently, i.e. 3 free articles a week (or something like that), is the best way to attract new customers. But I strongly feel that the best journalism is worth more than the clickbait garbage despite that I won't click an irrelevant ad simple because I feel the article is better crafted. This, I would be willing to pay more for it even on the internet.",
"title": ""
},
{
"docid": "fc630ecd66dc499dc67deceaf82681ed",
"text": "\"In addition to the information in the other answer, I would suggest looking at an economic calendar. These provide the dates and values of many economic announcements, e.g. existing home sales, durable orders, consumer confidence, etc. Yahoo, Bloomberg, and the Wall Street Journal all provide such calendars. Yahoo provides links to the raw data where available; Bloomberg and the WSJ provide links to their article where appropriate. You could also look at a global economic calendar; both xe.com and livecharts.co.uk provide these. If you're only interested in the US, the Yahoo, Bloomberg, and WSJ calendars may provide a higher signal-to-noise ratio, but foreign announcements also affect US markets, so it's important to get as much perspective as possible. I like the global economic calendars I linked to above because they rate announcements on \"\"priority\"\", which is a quick way to learn which announcements have the greatest effect. Economic calendars are especially important in the context of an interview because you may be asked a follow-up question. For example, the US markets jumped in early trading today (5/28/2013) because the consumer confidence numbers exceeded forecasts (from the WSJ calendar, 76.2 vs 2.3). As SRKX stated, it's important to know more than the numbers; being able to analyze the numbers in the context of the wider market and being aware of the fundamentals driving them is what's most important. An economic calendar is a good way to see this information quickly and succinctly. (I'm paraphrasing part of my answer to another question, so you may or may not find some of that information helpful as well; I'm certainly not suggesting you look at the website of every central bank in the morning. That's what an economic calendar is for!)\"",
"title": ""
},
{
"docid": "ef08f8282500399d92fa6386732c2dcf",
"text": "as someone who made a fair attempt at understanding money subjects, I'd like some more writing from you. I took high school level Marketing; Business economics; commercial law. it took six months on top of my previous High school ( with high level maths). during those months I got medium grades, and failed in- can you believe it - marketing. I had a go at The intelligent investor. I made it to page 96. But honestly I felt like I needed a lot of background in order for me to understand it. English is my second language. Sure I can understand words like liability vs assets. but to this day i still can't remember the difference between a bull and bearish market. I know its about risk assesment on a national/ global level. So who honestly gave finance a go but got their ass kicked. What would you say? any books?",
"title": ""
},
{
"docid": "058ffccf654e98b93d5ef8a7a883bb9e",
"text": "It depends what you mean by financial knowledge. Often you will work in a group focused on some aspect of the company's business. As an example, I work for a company and my group works on econometric models. Although I have a degree in finance, I don't encounter or talk about corporate or personal finance. I do talk about investing with a friend, but in general, our group is focused on one aspect of finance and economics for the company. From another direction, often financial companies will offer financial literacy training through HR and benefits programs where you can improve your knowledge of finance outside of your groups focus. In the end, you will learn the most by persuing new knowledge through reading on current financial literature. I hope this helps. Edit: If you add some specifics to what you would like to learn about I may be able to point you in the right direction.",
"title": ""
}
] |
fiqa
|
c8fcab135a34569e4a16eb9c9a13f22e
|
Is it true that Income Tax was created to finance troops for World War I?
|
[
{
"docid": "b72f2aa2be254c0e4ce6e1cdc6822f29",
"text": "\"The Income Tax was put into effect during the Civil War, but was later revoked because it was deemed \"\"Unconstitutional\"\". It was re-instated in 1913, just one year before World War 1. This is largely the reason why people think it was created \"\"for the war\"\", when it actually pre-dated World War 1. Edit: I don't have any sources, per-se. This is just what little information I remember from Grade 10 History class. I remember this because I had a real ethical problem with how the government instituted the Income Tax, since it is effectively a tax on Productivity. I find this absurd, since it motivates people to do less, in an effort to be taxed less. This in turn promotes workers doing \"\"cash jobs\"\" and other such things to get around it. I personally have refused a raise because it would put me into a higher tax bracket, and I wouldn't actaully see the new money. In exchange, I asked for other non-monetary perks instead. I personally think this situation should not exist. ...however, I don't have a better solution. So I suppose I can't really pass judgment. :)\"",
"title": ""
},
{
"docid": "d729d43b980f111b7afc62c017f2c564",
"text": "\"Canada did not introduce income taxes before World War I. Specifically deficits forced them to in the later part of the war: The Conservatives opposed income tax as they wanted to attract immigrants primarily from the United Kingdom and the United States, as opposed to Eastern Europe, and they wanted to give their preferred choice of newcomers some incentive to come to Canada. Wartime expenses forced the Tories to re-consider their options and in 1917 the wartime government imposed a \"\"temporary\"\" income tax to cover expenses. Despite the new tax the Canadian government ran up considerable debts during the war and were unable to forego income tax revenue after the war ended. With the election of the Mackenzie King-led Liberal government, much of the National Policy was dismantled and income tax has remained in place ever since. So from a Canadian point of view they were introduced as part of the war effort.\"",
"title": ""
},
{
"docid": "cc4aec5c4ae6a0ce834dea5e754709f1",
"text": "Income tax was seen as a way to exploit the revenues available from the rapidly expanding ranks of people with mid to high incomes. It was initially targeted at the very wealthy. Previously, most Federal revenues came from excise taxes and tariffs, both of which have many negative economic effects, leave the government with limited revenue generating ability and bring a host of international and domestic political problems. Since the successful implementation of the income tax required a constitutional amendment, it is very unlikely that anyone at the time seriously considered the income tax a temporary measure.",
"title": ""
}
] |
[
{
"docid": "e96f55fa350d5416f4b469627a5fce30",
"text": "It is double taxation. The same income is taxed twice. But as to the core of your argument, starting from a baseline of zero I agree. But we aren't starting over .. there is 100+ years of income tax history and almost 250 years of state/local governments creating the services required for local residents. It's been amazing how a lil bit of federal control has caused the conservative movement has forgotten they brought the 10th amendment to life with Seminole Tribe v. State of Florida.",
"title": ""
},
{
"docid": "124406e9ec0177443ce9a083a092d405",
"text": "This is wrong. Clear but wrong. A different story that has the benefit of being true follows. Money is an agreed-upon fiction. When, say, the Romans invaded a territory they had to find a way to feed their army and pay their soldiers. The soldiers could just steal stuff, but that was unsustainable because after awhile all economic activity would just stop. So, the army paid the soldiers with coins that could then be used by the soldiers to purchase things from the natives. Now, the people had no reason to accept these stamped pieces of metal (gold and silver are not inherently valuable, it's just an agreed-upon fiction). To force acceptance, Rome imposed taxes that had to be paid in Roman coinage. Now, the people had to accept the coins to accumulate enough to pay their taxes, the soldiers were able to spend their pay, and a more-or-less modern looking economy was born. Coins stamped with a monetary value have always been worth more than the market price of the underlying metal, (except in extreme circumstances.) Currency has value because it can be used to pay taxes.",
"title": ""
},
{
"docid": "0d052ef504a587e4bf7ecf3815ceead8",
"text": "\"This is the best tl;dr I could make, [original](https://bankunderground.co.uk/2017/08/08/your-country-needs-funds-the-extraordinary-story-of-britains-early-efforts-to-finance-the-first-world-war/) reduced by 95%. (I'm a bot) ***** > Financing World War I required the UK government to borrow the equivalent of a full year&#039;s GDP. But its first effort to raise capital in the bond market was a spectacular failure. > As part of a project looking at the financing of World War I, the ledgers of investors who purchased the 3&frac12;% War Loan have been analysed for the first time. > These reveal the startling truth about the failure of the first bond issue of the Great War and the extraordinary role of the Bank of England in covering and then concealing the shortfall in funds. ***** [**Extended Summary**](http://np.reddit.com/r/autotldr/comments/6tfsn0/hacker_news_the_extraordinary_story_of_britains/) | [FAQ](http://np.reddit.com/r/autotldr/comments/31b9fm/faq_autotldr_bot/ \"\"Version 1.65, ~189875 tl;drs so far.\"\") | [Feedback](http://np.reddit.com/message/compose?to=%23autotldr \"\"PM's and comments are monitored, constructive feedback is welcome.\"\") | *Top* *keywords*: **War**^#1 **Bank**^#2 **Loan**^#3 **investors**^#4 **bond**^#5\"",
"title": ""
},
{
"docid": "caae00be318b9421deff3b68c3ef45dd",
"text": "Irrelevant to the question. Regardless what is used for the tax base, we would still have the same debate but with much larger anti-taxation sentiments. Supply side Jesus either works or doesn't and shifting the federal revenue sources to the income taxes does not change it.",
"title": ""
},
{
"docid": "e12650dde63327e43859e62268b8e470",
"text": "What does this have to do with capitalism? To me, this seems like the obvious move when the corporate tax rate is much lower in other countries. Politicians can only steal from you for so long before you start realizing you have other options. Maybe nike doesn't want to fund neverending war in the middle east? I know I don't. Yet my money is taken from me every year to fund it.",
"title": ""
},
{
"docid": "96c17e223027561f733782f8d8afe6c5",
"text": "\"There's no way to confirm this anecdote I'm about to say tell you guys. However, I'm a computer programmer. I went for a job interview a few years ago at a top-tier bank. When they sat me down for the interview. They told me that their job was to take a rich person's income and let's say they pay 40% in tax. They'll move it around so that they pay 20% in tax. Also, these banks ... a lot of the programmers are earning 550-650 per-day and that's in pound sterling. These programmers will create a company and pay themselves the lowest salary rate. So they will avoid as much tax as possible because it's their \"\"company\"\". Those programmers aren't in the millionaire range though. They're probably just pulling over 100,000 pounds a year taxed at a really low rate. After working with them ... you can't make any of these guys feel anything.\"",
"title": ""
},
{
"docid": "f09b04925f139645f4288f93ae03c7bb",
"text": "Taxes and exemptions & credits from tax exist is to encourage behavior that the government wants to promote. National and international corporate taxation is this case encourages putting capital under a mattress. By setting up a system encouraging hoarding of capital, the national and international taxing regimes fail us.",
"title": ""
},
{
"docid": "a16012462875738579729ed9c8b5b87c",
"text": "Nobody actually paid the ridiculous tax rates of the time. People exploited loopholes like they do now. Back then, there were more. So the actual tax rate is irrelevant, and the actual tax rate paid is important. I see this argument way too often.",
"title": ""
},
{
"docid": "9d9e049493c96bcb0872c1bd9d8fdef8",
"text": "\"Similar, but actually quite different. A negative income tax on the first $20,000/year has a couple of problems this scheme doesn't: 1) Administration costs and legal complexity. Are we \"\"prebating\"\" or \"\"rebating\"\" the stipend? How is someone supposed to get along if they lose their job unexpectedly in a rebate-based system, can they get their income-tax withholdings back up to $20,000/year? How does the government register changes in income to know when to write someone a check? 2) With a negative tax up to a certain *fixed* level, there's effectively a changing level of subsidy depending how much of the per-capita income is the break-even tax level. If the per-capita income is $45,000/year (our current GDP per capita), then the subsidy level is almost 50%, and if it goes up to $60,000/year (our current mean household income), the subsidy level is then 33%. The system I described and steepk (IIRC) invented fixes the subsidy percentage in relation to the mean reported income (effectively fixing a *relative class level* as minimum) rather than a particular monetary amount (whose relative buying power versus inflation or other incomes can fluctuate wildly). We pick a subsidy level, say 1/3 (33.33333%). We then impose a flat income tax of that level plus a little bit more for administration costs (say, 35%). At the end of the year, everyone is taxed at that flat level, and the government scrapes its administration costs off the top and now has a big pot with 1/3 of everyone's income in it. This is divided into one portion for each taxpayer, and those portions into monthly or biweekly pieces. These pieces are sent out regularly as checks to the taxpayer, and *these checks are not taxed as income*. That last bit is what makes this so nice: it turns the tax progressive, in fact more progressive than our current system. After taxes and *after stipend*, only the rich will pay an *effective* tax rate asymptotically close to the real 35%. Most people without incomes many, many times the size of their stipends will be looking at an effective tax rate of less than 15%, including the tax-paying middle class and the professional upper-middle class who currently bitch so much about our tax rates being so confiscatory (which they *are*, for the abysmal level of social services we receive). Now, to get back to the big benefits of fixing the subsidy percentage. This means that the subsidy grows with mean income, effectively functioning as easy to run, fair, and direct wealth redistribution without the difficulty of trying to create efficient, productive WPA-style jobs or imposing market-distorting subsidies. It also means that we can allow things like automation to improve the productivity of our economy because *everyone* gets a share: if automating a certain job is truly more efficient than having a worker do it, the capitalist's income-gain from automation will push up the mean income, and therefore the basic income, further than the worker's lesser income and the capitalist's lesser profit would have.\"",
"title": ""
},
{
"docid": "28a893e25436b9cbfb0e1fb03cc15dea",
"text": "\"The tax system in general, and income tax in particular, is used for several purposes at once. One of those purposes is to raise money to run the government. It isn't the only purpose of income tax, and income tax isn't the only source of money to run the government. Try a thought experiment: let's say it costs $10,000 per person per year to run the government. (It might actually cost far more or far less, that's not the point.) A super simple tax system would just ask each person for $10,000. But such a system isn't fair. Some people don't even earn $10,000 so they are literally not able to pay that. Some people, who earn a lot, can easily afford to pay more. So a still-pretty simple approach asks each person to pay a particular percentage of their income, and the hope is that this will add up to enough to run the government. This still doesn't feel fair to everyone - 10% of your income is hard to find when you're spending it all on rent and food, and easy to find when you have way more than you \"\"need\"\". So many countries have what's called a \"\"progressive\"\" system of income tax where you pay no tax on the first X of your income, then a small percentage on the next Y, a larger percentage on the next Z and so on. But you asked about business profit. Some places don't tax business profits at all - they just collect income taxes on people once the money reaches them as salary or dividends. Other places do. Just as a person who doesn't earn any income can't send the government money, a business that spent more on expenses than it brought in as revenue can't send the government money either. So the tax is on profit. That seems fairer to most people anyway. Things then get even more complicated for both business and personal income taxes because the government uses the system to encourage certain behaviours and to help people facing hard times. If you want to encourage people to get training and move into higher paying jobs, you might make tuition tax deductible. Most countries give a tax deduction for each small child you have. This isn't because people with children use less of the services government provides, is it? Instead it's an acknowledgement that people with children generally have less money to spend. Or an encouragement to have children, or something. Tax motivations are complicated. If you charged all businesses a flat tax regardless of whether they were making or losing money, people might be hesitant to start companies that lose money at first. There might be less entrepreneurship in that country. If instead you only tax profits, it feels fairer and more people are likely to join in. So that's what most governments do. Is the imaginary business owner who is not turning a profit somehow getting a free ride? They are still paying tax. If they took any salary for themselves, there was personal income tax on that. Everything the company bought, it paid sales tax on. There may have been excise taxes and such in other things they bought. The economic activity of the business has been driving the wheel of the local economy and spinning off some taxes at various levels that whole time. Whether the business itself is chipping in some corporate income tax too may not end up being particularly relevant. Example: a sole proprietor has revenue of $100,000 and spends $10,000 on supplies and such. If the salary to the owner is $89,000 the company has a $1000 profit which it pays tax on. If the salary to the owner is $91,000 the company has a $1000 loss and doesn't pay tax (and may be able to use the loss to reduce taxes in a future year.) So what? The owner is paying personal income tax on roughly $90,000. The government is getting the support it needs. Yes, some owners do all the \"\"encouraged\"\" things so that some income is not taxed either in the business or the personal sphere. That is presumably what the government wanted when it set those things up as deductions. Making charitable contributions, hiring new employees, building new facilities ... essentially the government is paying the business to do those things because they're good for the country. The overall government budget (funded by personal and corporate income tax along with sales tax, excises taxes etc) is supposed to achieve certain goals which include roads and schools but also job creation and the like. This is one of the ways they do that.\"",
"title": ""
},
{
"docid": "b41a23be2e99ccd466f0ddb5b967ce6b",
"text": "The argument seems to derive from the fact that state law bars cities from taxing net income. Hence the city is arguing it doesn't apply to gross income. Of course the city would also have to argue that income isn’t property. I don't think it's going to work out for them.",
"title": ""
},
{
"docid": "51ae70970f131c5d6c844b349c70a334",
"text": "\"Well, the one variable you're forgetting is that we didn't have as much debt hanging over our heads as we do now. As I understand it, maintaining that conflict cost so much money, we're still paying for it today, the better part of a century later. Are you sure that the Federal government should undertake that level of spending again as the Fed is poised to raise rates, reversing a decades long trend of cheap borrowing? Edit: typo, added \"\"sure\"\"\"",
"title": ""
},
{
"docid": "534eac823a07782516a4e9f46d41ac1e",
"text": "exactly...and this isn't even just theory...we have hard examples of higher tax rates NOT translating into higher tax receipts: While we had crazy top income rates in the past per this: http://t-a-x.net/wp-content/uploads/2016/08/1.png we saw that didn't translate at all into higher actual $ receive by the govt: https://cdn.theatlantic.com/static/mt/assets/business/taxrevenuepercentGDP.png",
"title": ""
},
{
"docid": "3e5dfe901f951e979eebb46132d0d825",
"text": "I had a cat growing up--most of the time I was the one who got her supplies. It was never an issue.",
"title": ""
},
{
"docid": "4665044a834f492e274170147eb32613",
"text": "I'd split whatever cash flow you have between saving money and paying down the 20% loan. The fact that you are carrying an unrealized loss isn't really too relevant -- unless you have plans to walk away from the loan or go bankrupt, it doesn't really matter until you sell. You're either going to repay now or later.",
"title": ""
}
] |
fiqa
|
fe4ae52c9218ed4098389414636e8d3b
|
Trustable, official sources on holdings, purchases and sales by finance academics/professionals?
|
[
{
"docid": "84684ca8001220b80db21a461e7b2e21",
"text": "You won't be able to know the trading activity in a timely, actionable method in most cases. The exception is if the investor (individual, fund, holding company, non-profit foundation, etc) is a large shareholder of a specific company and therefore required to file their intentions to buy or sell with the SEC. The threshold for this is usually if they own 5% or greater of the outstanding shares. You can, however, get a sense of the holdings for some of the entities you mention with some sleuthing. Publicly-Traded Holding Companies Since you mention Warren Buffett, Berkshire Hathaway is an example of this. Publicly traded companies (that are traded on a US-based exchange) have to file numerous reports with the SEC. Of these, you should review their Annual Report and monitor all filings on the SEC's website. Here's the link to the Berkshire Hathaway profile. Private Foundations Harvard and Yale have private, non-profit foundations. The first place to look would be at the Form 990 filings each is required to file with the IRS. Two sources for these filings are GuideStar.org and the FoundationCenter.org. Keep in mind that if the private foundation is a large enough shareholder in a specific company, they, too, will be required to file their intentions to buy or sell shares in that company. Private Individuals Unless the individual publicly releases their current holdings, the only insight you may get is what they say publicly or have to disclose — again, if they are a major shareholder.",
"title": ""
}
] |
[
{
"docid": "7e16bf72b7e84e7aac3a2eb57a804450",
"text": "\"This falls under value investing, and value investing has only recently picked up study by academia, say, at the turn of the millennium; therefore, there isn't much rigorous on value investing in academia, but it has started. However, we can describe valuations: In short, valuations are randomly distributed in a log-Variance Gamma fashion with some reason & nonsense mixed in. You can check for yourself on finviz. You can basically download the entire US market and then some, with many financial and technical characteristics all in one spreadsheet. Re Fisher: He was tied for the best monetary economist of the 20th century and created the best price index, but as for stocks, he said this famous quote 12 days before the 1929 crash: \"\"Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months.\"\" - Irving Fisher, Ph.D. in economics, Oct. 17, 1929 EDIT Value investing has almost always been ignored by academia. Irving Fisher and other proponents of it before it was codified by Graham in the mid 20th century certainly didn't help with comments like the above. It was almost always believed that it was a sucker's game, \"\"the bigger sucker\"\" game to be more precise because value investors get destroyed during recession/collapses. So even though a recessionless economy would allow value investors and everyone never to suffer spontaneous collapses, value investors are looked down upon by academia because of the inevitable yet nearly always transitory collapse. This expresses that sentiment perfectly. It didn't help that Benjamin Graham didn't care about money so never reached the heights of Buffett who frequently alternates with Bill Gates as the richest person on the planet. Buffett has given much credibility, and academia finally caught on around in 2000 or so after he was proven right about a pending tech collapse that nearly no one believed would happen; at least, that's where I begin seeing papers being published delving into value concepts. If one looks harder, academia's even taken the torch and discovered some very useful tools. Yes, investment firms and fellow value investors kept up the information publishing, but they are not academics. The days of professors throwing darts at the stock listings and beating active managers despite most active managers losing to the market anyways really held back this side of academia until Buffett entered the fray and embarrassed them all with his club's performance, culminating in the Superinvestors article which is still relatively ignored. Before that, it was the obsession with beta, the ratio of a security's variance to its covariance to the market, a now abandoned theory because it has been utterly discredited; the popularizers of beta have humorously embraced the P/B, not giving the satisfaction to Buffet by spurning the P/E. Tiny technology firms receive ridiculous valuations because a long-surviving tiny tech firm usually doesn't stay small for long thus will grow at huge rates. This is why any solvent and many insolvent tech firms receive large valuations: risk-adjusted, they should pay out huge on average. Still, most fall by the wayside dead, and those 100 P/S valuations quickly crumble. Valuations are influenced by growth. One can see this expressed more easily with a growing perpetuity: Where P is price, i is income, r is the rate of return, and g is the growth rate of i. Rearranging, r looks like: Here, one can see that a higher P relative to i will dull the expected rate of return while a higher g will boost it. It's fun for us value investor/traders to say that the market is totally inefficient. That's a stretch. It's not perfectly inefficient, but it's efficient. Valuations are clustered very tightly around the median, but there are mistakes that even us little guys can exploit and teach the smart money a lesson or two. If one were to look at a distribution of rs, one'd see that they're even more tightly packed. So while it looks like P/Es are all over the place industry to industry, rs are much more well clustered. Tech, finance, and discretionaries frequently have higher growth rates so higher P/Es yet average rs. Utilities and non-discretionaries have lower growth rates so lower P/Es yet average rs.\"",
"title": ""
},
{
"docid": "ef4a8e1d1b252475ab3a0baefe7eb5e8",
"text": "\"I am sorry to hear that. Well, finance is a VERY large field encompassing decades upon decades of research, and thousands of pages of research. This question is usually a difficult one to answer simply because of the scope. My usual answer to people is to browse around this sub and the internet and learn from that, and then for specific questions to ask. For your purposes, take a look at investopedia.com. While here it's an \"\"okay\"\" source, for a beginner I think it's a good place to start. Is there any specific thing you have a question about now? I know you mentioned the Big Short and some other things. Just keep in mind anything coming from Hollywood will be *extremely* biased.\"",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "c2e93a7327f67ea293c9ba6375203b36",
"text": "\"Ok, I stand corrected. Still... those papers are quite away from my field of expertise and I don't want to lose a lot of time learning all the financial lingo. I asked an easy question: \"\"Is this [the everything bubble] a thing or not?\"\" It seems that it's not, but I still wanted to know more about it.\"",
"title": ""
},
{
"docid": "8bf32a9fd5e534e38192d3081982fe16",
"text": "\"They aren't necessarily trustworthy. Many institutions claim to have a \"\"Chinese Wall\"\" between their investment banking arms and analysis arms. In practice, these walls have sometimes turned out to be entirely imaginary. That is, analysis is published with an eye to what is good for their investment banking business. One of the most notorious cases of this was Henry Blodget, an analyst with Merrill Lynch during the dot-com bubble. Blodget became a star analyst after he correctly predicted Amazon would hit $400/share within a year. However some of his later public analysis dramatically conflicted with his private comments. Famously when he started covering GoTo.com, rating it as \"\"neutral to buy\"\", he was asked \"\"What's so interesting about Goto except banking fees????\"\" Blodget replied, \"\"nothin\"\". Eventually he was permanently banned from the securities industry.\"",
"title": ""
},
{
"docid": "2285e494799ac5c925329e0178beab88",
"text": "I had a question about this but it apparently wasn’t formed in the right way as I got no explanations and only downvotes, so let me try again. Given the massive amount of info you gave, I tried to go through and find the data I was asking for- data behind the projections of such a loss. Perhaps since I’m not a professional economist, It was not immediately apparent to me how to find the data behind the projections. Would you mind demonstrating how any of these sources provide the data behind how such projections are made? Or do you have any other advice as to how I could find an answer?",
"title": ""
},
{
"docid": "77ecf212f4efc907eee18d547f3912ca",
"text": "No career advice or homework help (unless your homework is some kind of big project and you need an explanation on a concept). I want to see financial news, legislation concerning the markets and regulation, self posts about financial concepts, opinion articles about finance from reputable sources, etc.",
"title": ""
},
{
"docid": "3da43b5fef21f1219c04418d4457f804",
"text": "\"I work for an international real estate consulting firm in Shanghai. After graduation I worked in their Research Department for two years before switching to Commercial Brokerage 3 months ago. Since my background was in Economics, I had to learn a lot about how the industry worked. I found this book to be very helpful: \"\"Commercial Real Estate Analysis & Investments\"\" by David Geltner. I will admit that it's probably more than what you want to know, but it seriously gives an in depth breakdown of the entire industry. About one year into starting, a major Real Estate iBank commissioned our company to due diligence on an office building acquisition in Shanghai. I was the only person capable of doing it as everyone else was either busy or couldn't speak English properly. With 1 year under my belt in Research and that book, I took the entire thing on. Had to walk into that meeting by myself with all the big wigs from New York, London, Hong Kong and Shanghai questioning every single number and assumption. I fucking nailed it. While credit towards understanding the market through work is deserved, a lot of the development of that report came from constantly consulting that book. It's worth every penny if your interested in commercial real estate investment. That being said, if you want to track deals, the best place is called Real Estate Capital Analytics. Unfortunately you have to fork over a decent amount of cash to get access. For your situation I would recommend the following: - \"\"The Urban Land Institute & PwC Emerging Trends in Real Estate\"\": I believe you need to be a member but I can always find it online for free. - Brokerage firms: I work in one and we cover residential, commercial and retail reports on cities throughout the world (I actually wrote the ones for China for two years). You can find a wealth of information in them. If you are seriously looking at buying with capital, call up the research department and ask if they have some time to discuss the market face to face; if you don't have capital, they won't talk to you. Fortunately however, most let you download their reports for free from their website so here's the list of the major ones in the US: CBRE, Colliers, CRESA, Cushman & Wakefield, Jones Lang LaSalle, etc. - The Loop - www.loopnet.com has a wealth of information from Commercial properties on the market to previous deals. Please let me know if I can further advise.\"",
"title": ""
},
{
"docid": "18fdf9e3dfc67a60abdd1702ae7f00b6",
"text": "Start at Investopedia. Get basic clarification on all financial terms and in some cases in detail. But get a book. One recommendation would be Hull. It is a basic book, but quite informative. Likewise you can get loads of material targeted at programmers. Wilmott's Forum is a fine place to find coders as well as finance guys.",
"title": ""
},
{
"docid": "bff3fef09ee5bd2fb14dbdb7c3e95eb9",
"text": "To supplement Ben's answer: Following 'smart money' utilizes information available in a transparent marketplace to track the holdings of professionals. One way may be to learn as much as possible about fund directors and monitor the firms holdings closely via prospectus. I believe certain exchanges provide transaction data by brokers, so it may be possible for a well-informed individual to monitor changes in a firms' holdings in between prospectus updates. An example of a play on 'smart money': S&P500 companies are reviewed for weighting and the list changes when companies are dropped or added. As you know there are ETFs and funds that reflect the holdings of the SP500. Changes to the list trigger 'binary events' where funds open or close a position. Some people try to anticipate the movements of the SP500 before 'smart money' adjusts their positions. I have heard some people define smart money as people who get paid whether their decisions are right or wrong, which in my opinion, best captures the term. This Udemy course may be of interest: https://www.udemy.com/tools-for-trading-investing/",
"title": ""
},
{
"docid": "8a4e4abcd575badb34535fc1c59aed9d",
"text": "\"Once upon a time I ran my own micro hedge fund for a very short time. I can't recall the term commonly used in the industry for such info, but a few individuals, including the prime brokerage firm's founder, offered information of questionable character. I refused to trade on any of it, not only because of the borderline illegality, but also because I didn't trust any of it... seemed to be more rumor mill type nonsense than anything else. Moreover, if they already have that info, then it's already up/down... so it then goes the reverse direction as they take profits. As is commonly said even in normal investor circles: \"\"buy the rumor, sell the news.\"\"\"",
"title": ""
},
{
"docid": "ef08f8282500399d92fa6386732c2dcf",
"text": "as someone who made a fair attempt at understanding money subjects, I'd like some more writing from you. I took high school level Marketing; Business economics; commercial law. it took six months on top of my previous High school ( with high level maths). during those months I got medium grades, and failed in- can you believe it - marketing. I had a go at The intelligent investor. I made it to page 96. But honestly I felt like I needed a lot of background in order for me to understand it. English is my second language. Sure I can understand words like liability vs assets. but to this day i still can't remember the difference between a bull and bearish market. I know its about risk assesment on a national/ global level. So who honestly gave finance a go but got their ass kicked. What would you say? any books?",
"title": ""
},
{
"docid": "d51a63597564a2f29ef677a8ed261044",
"text": "I'll add Robert Shiller's [Irrational Exuberance](https://en.wikipedia.org/wiki/Irrational_Exuberance_(book) too, to summarize the recent era of Wall Street booms and busts. The best books I've ever read on finance are [Nassim Taleb](https://en.wikipedia.org/wiki/Nassim_Nicholas_Taleb)'s. But they're mostly about his own analysis of financial phenomena, and they approach financial history mostly from that highly unique viewpoint.",
"title": ""
},
{
"docid": "15b52b86f7b74d9cb9d797fc14f2a66d",
"text": "Good addition. When learning finance and business, /u/msattam, realize the world does not work cleanly like it does in a textbook. You have added complexity, both systemic and human caused. And that there is a very good reason that we must understand agency issues and how to mitigate those risks.",
"title": ""
},
{
"docid": "20f359098fd69ea33661b6f8f5533514",
"text": "Google Portfolio does the job: https://www.google.com/finance/portfolio You can add transaction data, view fundamentals and much more.",
"title": ""
}
] |
fiqa
|
d9d5299e81f940da6b6acd35ca849882
|
Google Finance: Input Parameters For Simple Moving Averages
|
[
{
"docid": "0db7d44640b17675cb5829dc42672209",
"text": "The difference is that for the one year time frame the data is represented based on daily data and the SMA is 20 days, whilst for the 5 year timeframe the data is automatically represented as weekly data with the SMA represented by 20 weeks not 20 days anymore. This happens due to daily data on this chart being too much data to represent over a 5 year period so the data defaults to weekly data over such a long period. If the chart is represented as weekly data then any indicators will also have to be represented in weekly data. If you use a more sophisticated charting program you can actually select to see daily or weekly data over longer periods such as 5 years or more.",
"title": ""
},
{
"docid": "481b8423ba7e31615b1775bafe7d3029",
"text": "I looked at this a little more closely but the answer Victor provided is essentially correct. The key to look at in the google finance graph is the red labled SMA(###d) would indicate the period units are d=days. If you change the time axis of the graph it will shift to SMA(###m) for period in minutes or SMA(###w) for period in weeks. Hope this clears things up!",
"title": ""
}
] |
[
{
"docid": "52e41eaf6ab2a990bfe7c69d2d688a11",
"text": "There are lots of good answers on here already. There are actually lots of answers for this question. Lots. I have years of experience on the exchange feed side and there are hundreds and thousands of variables. All of these variables are funneled into systems owned by large financial institutions (I used to manage these - and only a few companies in the world do this so not hard to guess who I work for). Their computers then make trades based on all of these variables and equations. There are variables as whacky as how many times was a company mentioned in an aggregate news feed down to your basic company financials. But if there is a way to measure a company (or to just guess) there is an equation for it plugged into a super computer at a big bank. Now there are two important factors on why you see this mad dash in the morning: Now most of the rest of the day is also automated trades but by the time you are an hour into market open the computers for the most part have fulfilled their calendar buys. Everyone else's answer is right too. There is futures contracts that change, global exchange info changes, options expiring, basic news, whatever but all of these are amplified by the calendar day changing.",
"title": ""
},
{
"docid": "50c29401d0ad5c19a05ba7f906e56cbe",
"text": "I was typing up a long response and lost it to a backspace.. so, I apologize but I don't intend on rewriting it all. You'll have to use a method called bootstrapping to get the forward rates. Essentially you're looking at the spot rate today, and the forward rates, then filling in what must be the rate to make them equal out in the end. Sorry I'm not more help!",
"title": ""
},
{
"docid": "f40ce647ec1934ec570d35784baa2775",
"text": "James Roth provides a partial solution good for stock picking but let's speed up process a bit, already calculated historical standard deviations: Ibbotson, very good collection of research papers here, examples below Books",
"title": ""
},
{
"docid": "5b5c6f5d4b26bd4c954cdb1558e22cf8",
"text": "\"I could not figure out a good way to make XIRR work since it does not support arrays. However, I think the following should work for you: Insert a column at D and call it \"\"ratio\"\" (to be used to calculate your answer in column E). Use the following equation for D3: =1+(C3-B3-C2)/C2 Drag that down to fill in the column. Set E3 to: =(PRODUCT(D$3:D3)-1)*365/(A3-A$2) Drag that down to fill in the column. Column E is now your annual rate of return.\"",
"title": ""
},
{
"docid": "8f399907f2221e4bdc9aefb8c11cf52c",
"text": "This is from Google Finance right now.",
"title": ""
},
{
"docid": "593f6298656a2b96117729003a4e30dd",
"text": "You bought 1 share of Google at $67.05 while it has a current trading price of $1204.11. Now, if you bought a widget for under $70 and it currently sells for over $1200 that is quite the increase, no? Be careful of what prices you enter into a portfolio tool as some people may be able to use options to have a strike price different than the current trading price by a sizable difference. Take the gain of $1122.06 on an initial cost of $82.05 for seeing where the 1367% is coming. User error on the portfolio will lead to misleading statistics I think as you meant to put in something else, right?",
"title": ""
},
{
"docid": "dfa2ffd7e6e3892c85d2adf7481d1bdf",
"text": "\"I am trying to set up a formula that will find interest-rate behind first pencil sheets at car dealerships. I am not a car finance expert so I need someone who is intimate with how these loans really work. The points of data I get at first pencil are: 1) Amount Financed 2) Period 3) Monthly Payment The data I need to extrapolate: 1) Rate in percentile so that I can compare to my bank's offer. I have tried this and many other stock \"\"find rate\"\" formulas with no accurate results: R=(A/P^(1/n)-1)n\"",
"title": ""
},
{
"docid": "64e8a098d6ef3e03a3f2c464e91a5ec2",
"text": "As you point out, the moving average is just MA(k)t = (Pt-1 + … + Pt-k )/k and is applied in technical analysis (TA) to smooth out volatile (noise) price action. If it has any logic to it, you might want to think in terms of return series (Pt - Pt-1 / Pt-1) and you could hypothesize that prices are in fact predictable and will oscillate below and above a running moving average. Below is a link to a study on MA trading rules, published in the Journal of Finance, with the conclusion of predictive power and abnormal returns from such strategies. As with any decision made upon historical arguments, one should be aware of structural changes and or data mining. Simple technical trading rules and the stochastic properties of stock returns Brock, W., J. Lakonishok and B. Le Baron, 1992, Simple technical trading rules and the stochastic properties of stock returns, Journal of Finance, 47, 1731-64. MA rules betterthan chance in US stock market, 1897-1986 I don't know whether you are new to TA or not, but a great commercial site, with plenty of computer-generated signals is FinViz.",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "3dccc75bc4b29bf2cb80a8c9dff15b95",
"text": "\"My answer is Microsoft Excel. Google \"\"VBA for dummies\"\" (seriously) and find out if your brokerage offers an 'API'. With a brief understanding of coding you can get a spreadsheet that is live connected to your brokers data stream. Say you have a spreadsheet with the 1990 value of each in the first two columns (cells a1 and b1). Maybe this formula could be the third column, it'll tell you how much to buy or sell to rebalance them. then to iterate the rebalance, set both a2 and b2 to =C1 and drag the formula through row 25, one row for each year. It'll probably be a little more work than that, but you get the idea.\"",
"title": ""
},
{
"docid": "de1433f15a5657ab6d10c2427bdd38b9",
"text": "As @littleadv and @DumbCoder point out in their comments above, Bloomberg Terminal is expensive for individual investors. If you are looking for a free solution I would recommend Yahoo and Google Finance. On the other side, if you need more financial metrics regarding historic statements and consensus estimates, you should look at the iPad solution from Worldcap, which is not free, but significantly cheaper then Bloomberg and Reuters. Disclosure: I am affiliated with WorldCap.",
"title": ""
},
{
"docid": "420f4726f5eff4d17dbcf18d85d62d3b",
"text": "Google Finance and Yahoo Finance have been transitioning their API (data interface) over the last 3 months. They are currently unreliable. If you're just interested in historical price data, I would recommend either Quandl or Tiingo (I am not affiliated with either, but I use them as data sources). Both have the same historical data (open, close, high, low, dividends, etc.) on a daily closing for thousands of Ticker symbols. Each service requires you to register and get a unique token. For basic historical data, there is no charge. I've been using both for many months and the data quality has been excellent and API (at least for python) is very easy! If you have an inclination for python software development, you can read about the drama with Google and Yahoo finance at the pandas-datareader group at https://github.com/pydata/pandas-datareader.",
"title": ""
},
{
"docid": "fe41bd844ccdd880ae9b1f59abe82487",
"text": "\"Google Finance certainly has data for Tokyo Stock Exchange (called TYO on Google) listings. You could create a \"\"portfolio\"\" consisting of the stocks you care about and then visit it once per day (or write a script to do so).\"",
"title": ""
},
{
"docid": "96ffe6a551593b9b69ec6a68d6a2175b",
"text": "You may refer to project http://jstock.sourceforge.net. It is open source and released under GPL. It is fetching data from Yahoo! Finance, include delayed current price and historical price.",
"title": ""
},
{
"docid": "e0fd5f580d29bb7dc0d3a235d31ffdf2",
"text": "\"All of these frameworks, Markowitz, Mean/CVaR, CARA, etc sit inside a more general framework which is that \"\"returns are good\"\" and \"\"risk/lack of certainty in the returns is bad\"\", and there's a tradeoff between the two encoded as some kind of risk aversion number. You can measure \"\"lack of certainty in returns\"\" by vol, CVaR, weighted sum of higher moments, but even sector/region concentration. Similarly do I want more \"\"returns\"\" or \"\"log returns\"\" or \"\"sqrt returns\"\" in the context of this tradeoff? You don't need any formal notion of utility at that point - and I don't know what formal ideas of utility beyond \"\"I want more returns and less risk\"\" really buys you. The Sharpe ratio only really gets its meaning because you've got some formal asset-pricing notion of utility. In my view the moment that you're putting constraints on the portfolio (e.g. long only, max weights, don't deviate too much from the benchmark ...) - really you're operating in this more general framework anyway and you're not in \"\"utility-land\"\" anymore.\"",
"title": ""
}
] |
fiqa
|
22832638a186e902feb04ea728240bd6
|
How does Yahoo finance adjust stock data for splits and dividends?
|
[
{
"docid": "fc995ec5e7c0691a5351985999c81cc2",
"text": "For stock splits, let's say stock XYZ closed at 100 on February 5. Then on February 6, it undergoes a 2-for-1 split and closes the day at 51. In Yahoo's historical prices for XYZ, you will see that it closed at 51 on Feb 6, but all of the closing prices for the previous days will be divided by 2. So for Feb 5, it will say the closing price was 50 instead of 100. For dividends, let's say stock ABC closed at 200 on December 18. Then on December 19, the stock increases in price by $2 but it pays out a $1 dividend. In Yahoo's historical prices for XYZ, you will see that it closed at 200 on Dec 18 and 201 on Dec 19. Yahoo adjusts the closing price for Dec 19 to factor in the dividend.",
"title": ""
},
{
"docid": "26e829b6a7db54e5cf3756d79e49b8d8",
"text": "Should be noted that pacoverflow's answer is wrong. Yahoo back-adjusts all the previous (not current or future) values based on a cumulative adjustment factor. So if there's a dividend ex-date on December 19, Yahoo adjusts all the PREVIOUS (December 18 and prior) prices with a factor which is: 1 - dividend / Dec18Close",
"title": ""
},
{
"docid": "df3614b753ae87a1a270d904003756f7",
"text": "\"Yahoo's \"\"Adj Close\"\" data is adjusted for splits, but not for dividends. Despite Yahoo's webpage's footnote saying *Close price adjusted for dividends and splits. we can see empirically that the \"\"Adj Close\"\" is only adjusted for splits. For example, consider Siemens from Jan 27, 2017 to Mar 15, 2017: The Adj Close adjusts for splits: On any particular day, the \"\"Adj Close\"\" is equal to the \"\"Close\"\" price divided by the cumulative product of all splits that occurred after that day. If there have been no splits after that day, then the \"\"Adj Close\"\" equals the \"\"Close\"\" price. Since there is a 2-for-1 split on Mar 14, 2017, the Adj Close is half the Close price for all dates from Jan 27, 2017 to Mar 13, 2017. Note that if Siemens were to split again at some time in the future, the Adj Close prices will be readjusted for this future split. For example, if Siemens were to split 3-for-1 tomorrow, then all the Adj Close prices seen above will be divided by 3. The Adj Close is thus showing the price that a share would have traded on that day if the shares had already been split in accordance with all splits up to today. The Adj Close does not adjust for dividends: Notice that Siemens distributed a $1.87 dividend on Feb 02, 2017 and ~$3.74 dividend on Jan 30, 2017. If the Adj Close value were adjusted for these dividends then we should expect the Adj Close should no longer be exactly half of the Close amount. But we can see that there is no such adjustment -- the Adj Close remains (up to rounding) exactly half the Close amount: Note that in theory, the market reacts to the distribution of dividends by reducing the trading price of shares post-dividend. This in turn is reflected in the raw closing price. So in that sense the Adj Close is also automatically adjusted for dividends. But there is no formula for this. The effect is already baked in through the market's closing prices.\"",
"title": ""
}
] |
[
{
"docid": "b4230bc9749d09b9fad10599e79b40ef",
"text": "\"I don't have anything definitive, but in general positions in a company are not affected materially by what is called a corporate action. \"\"Corp Actions\"\" can really be anything that affects the details of a stock. Common examples are a ticker change, or exchange change, IPO (ie a new ticker), doing a split, or merging with another ticker. All of these events do not change the total value of people's positions. If a stock splits, you might have more shares, but they are worth less per share. A merger is quite similar to a split. The old company's stock is converted two the new companies stock at some ratio (ie 10 shares become 1 share) and then converted 1-to-1 to the new symbol. Shorting a stock that splits is no different. You shorted 10 shares, but after the split those are now 100 shares, when you exit the position you have to deliver back 100 \"\"new\"\" shares, though dollar-for-dollar they are the same total value. I don't see why a merger would affect your short position. The only difference is you are now shorting a different company, so when you exit the position you'll have to deliver shares of the new company back to the brokerage where you \"\"borrowed\"\" the shares you shorted.\"",
"title": ""
},
{
"docid": "cee5b473a5787ba655090a61d7f23e5f",
"text": "Many brokerages offer automatic dividend reinvestment. It is very infrequent that these dividends are exactly a whole share. So, if you have signed up for automatic dividend reinvestment, many brokerages will reinvest your dividends and assign to you a fractional share. I can't speak for how these shares work with regards to voting, but I can say that the value of these fractional holdings does change with stock price as if one genuinely could hold a fraction of a share.",
"title": ""
},
{
"docid": "d65e2d5329fa3d2f3b1c4b2a853847b7",
"text": "\"Yahoo Finance is definitely a good one, and its ultimately the source of the data that a lot of other places use (like the iOS Stocks app), because of their famous API. Another good dividend website is Dividata.com. It's a fairly simple website, free to use, which provides tons of dividend-specific info, including the highest-yield stocks, the upcoming ex-div dates, and the highest-rated stocks based on their 3-metric rating system. It's a great place to find new stocks to investigate, although you obviously don't want to stop there. It also shows dividend payment histories and \"\"years paying,\"\" so you can quickly get an idea of which stocks are long-established and which may just be flashes in the pan. For example: Lastly, I've got a couple of iOS apps that really help me with dividend investing: Compounder is a single-stock compound interest calculator, which automatically looks up a stock's info and calculates a simulated return for a given number of years, and Dividender allows you to input your entire portfolio and then calculates its growth over time as a whole. The former is great for researching potential stocks, running scenarios, and deciding how much to invest, while the latter is great for tracking your portfolio and making plans regarding your investments overall.\"",
"title": ""
},
{
"docid": "4cf53539bda07f5efe80c4aa08b8b8f3",
"text": "The dividend quoted on a site like the one you linked to on Yahoo shows what 1 investor owning 1 share received from the company. It is not adjusted at all for taxes. (Actually some dividend quotes are adjusted but not for taxes... see below.) It is not adjusted because most dividends are taxed as ordinary income. This means different rates for different people, and so for simplicity's sake the quotes just show what an investor would be paid. You're responsible for calculating and paying your own taxes. From the IRS website: Ordinary Dividends Ordinary (taxable) dividends are the most common type of distribution from a corporation or a mutual fund. They are paid out of earnings and profits and are ordinary income to you. This means they are not capital gains. You can assume that any dividend you receive on common or preferred stock is an ordinary dividend unless the paying corporation or mutual fund tells you otherwise. Ordinary dividends will be shown in box 1a of the Form 1099-DIV you receive. Now my disclaimer... what you see on a normal stock quote for dividend in Yahoo or Google Finance is adjusted. (Like here for GE.) Many corporations actually pay out quarterly dividends. So the number shown for a dividend will be the most recent quarterly dividend [times] 4 quarters. To find out what you would receive as an actual payment, you would need to divide GE's current $0.76 dividend by 4 quarters... $0.19. So you would receive that amount for each share of stock you owned in GE.",
"title": ""
},
{
"docid": "7978a163ea6fbead1bd037bcc1a14902",
"text": "I also searched for some time before discovering Market Archive, which AFAIK is the most affordable option that basically gives you a massive multi-GB dump of data. I needed sufficient data to build a model and didn't want to work through an API or have to hand-pick the securities to train from. After trying to do this on my own by scraping Yahoo and using the various known tools, I decided my time was better spent not dealing with rate-limiting issues and parsing quirks and whatnot, so I just subscribed to Market Archive (they update the data daily).",
"title": ""
},
{
"docid": "3dccc75bc4b29bf2cb80a8c9dff15b95",
"text": "\"My answer is Microsoft Excel. Google \"\"VBA for dummies\"\" (seriously) and find out if your brokerage offers an 'API'. With a brief understanding of coding you can get a spreadsheet that is live connected to your brokers data stream. Say you have a spreadsheet with the 1990 value of each in the first two columns (cells a1 and b1). Maybe this formula could be the third column, it'll tell you how much to buy or sell to rebalance them. then to iterate the rebalance, set both a2 and b2 to =C1 and drag the formula through row 25, one row for each year. It'll probably be a little more work than that, but you get the idea.\"",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "cd44af0ba38fa7d68265e7bc6603f04d",
"text": "According to Active Equity Management by Zhou and Jain: When a stock pays dividend, the adjusted price in Yahoo makes the following adjustment: Let T be the ex-dividend date (the first date that the buyers of a stock will not receive the dividend) and T-1 be the last trading day before T. All prices before T are adjusted by a multiplier (C_{T-1} - d_T)/C_{T-1}, where C_{T-1} is the close price at T-1 and d_T is the dividend per share. This, of course means that the price before T decreases.",
"title": ""
},
{
"docid": "fd1c51438c9aaf8e14aa77f9887fc3c7",
"text": "This is just a shot in the dark but it could be intermarket data. If the stock is interlisted and traded on another market exchange that day then the Yahoo Finance data feed might have picked up the data from another market. You'd have to ask Yahoo to explain and they'd have to check their data.",
"title": ""
},
{
"docid": "c139204ef8db6cebd5386f5e6f653212",
"text": "You'd have to buy that information. Quoting from this page, Commercial Historical Data Higher resolution and more complete datasets are generally not available for free. Below is a list of vendors which have passed our quality screening (in total, we screened over a dozen vendors). To qualify, the vendor must aggregate data from all US national/regional exchanges as only complete datasets are suitable for research use. The last point is especially important as there are many vendors who just get data from a couple sources and is missing important information such as dark pool trades. They offer some alternatives for free data: Daily Resolution Data 1) Yahoo! Finance– Daily resolution data, with split/dividend adjustments can be downloaded from here. The download procedure can be automated using this tool. Note, Yahoo quite frequently has errors in its database and does not contain data for delisted symbols. 2) QuantQuote Free Data– QuantQuote offers free daily resolution data for the S&P500 at this web page under the Free Data tab. The data accounts for symbol changes, splits, and dividends, and is largely free of the errors found in the Yahoo data. Note, only 500 symbols are available unlike Yahoo which provides all listed symbols. And they list recommendations about who to buy the data from.",
"title": ""
},
{
"docid": "dd99ef5267bc2cb10f23ee1f62bc9f82",
"text": "I've never seen a dividend, split or other corporate action during the day, but I have seen trade suspended a few times when something big happened. The market opening price is not in general the same as the close of the previous day. It can gap up or down and does frequently. I don't know of an api to find out if the dividend was cash or stock, but stock dividends are a lot less common.",
"title": ""
},
{
"docid": "835aea544af9ee19eb114bf793e8f425",
"text": "\"I keep spreadsheets that verify each $ distribution versus the rate times number of shares owned. For mutual funds, I would use Yahoo's historical data, but sometimes shows up late (a few days, a week?) and it isn't always quite accurate enough. A while back I discovered that MSN had excellent data when using their market price chart with dividends \"\"turned on,\"\" HOWEVER very recently they have revamped their site and the trusty URLs I have previously used no longer work AND after considerable browsing, I can no longer find this level of detail anywhere on their site !=( Happily, the note above led me to the Google business site, and it looks like I am \"\"back in business\"\"... THANKS!\"",
"title": ""
},
{
"docid": "244082b525c3e0b52022e26c339e7810",
"text": "\"In the US, stocks are listed on one exchange but can be traded on multiple venues. You need to confirm exactly what your data is showing: a) trades on the primary-listed exchange; or b) trades made at any venue. Also, the trade condition codes are important. Only certain trade condition codes contribute towards the day's open/high/low/close and some others only contribute towards the volume data. The Consolidated Tape Association is very clear on which trades should contribute towards each value - but some vendors have their own interpretation (or just simply an erroneous interpretation of the specifications). It may surprise you to find that the majority of trading volume for many stocks is not on their primary-listed exchange. For example, on 2 Mar 2015, NASDAQ:AAPL traded a total volume across all venues was 48096663 shares but trading on NASDAQ itself was 12050277 shares. Trades can be cancelled. Some data vendors do not modify their data to reflect these busted trades. Some data vendors also \"\"snapshot\"\" their feed at a particular point in time of the data. Some exchanges can provide data (mainly corrections) 4-5 hours after the closing bell. By snapshotting the data too early and throwing away any subsequent data is a typical cause of data discrepancies. Some data vendors also round prices/volumes - but stocks don't just trade to two decimal places. So you may well be comparing two different sets of trades (with their own specific inclusion rules) against the same stock. You need to confirm with your data sources exactly how they do things. Disclosure: Premium Data is an end-of-day daily data vendor.\"",
"title": ""
},
{
"docid": "0abcd449cae2ed7664022837ddd01ced",
"text": "\"Google's RSI is using a 10 period on 2 minute bars - i.e. it is based upon the last 20 minutes of data. Yahoo's RSI is using a 14 period lookback on an undetermined timeframe (you could maybe mouse-over and see what incremental part of the chart is giving) and given the \"\"choppier\"\" price chart, probably 30 second or 1 minute bars. Given the difference in both the period specified and the periodicity of the charts - you should expect different results.\"",
"title": ""
},
{
"docid": "1ca4aa43255f1b1f575ff0e602651839",
"text": "\"Remember that in most news outlets journalists do not get to pick the titles of their articles. That's up to the editor. So even though the article was primarily about ETFs, the reporter made the mistake of including some tangential references to mutual funds. The editor then saw that the article talked about ETFs and mutual funds and -- knowing even less about the subject matter than the reporter, but recognizing that more readers' eyeballs would be attracted to a headline about mutual funds than to a headline about ETFs -- went with the \"\"shocking\"\" headline about the former. In any case, as you already pointed out, ETFs need to know their value throughout the day, as do the investors in that ETF. Even momentary outages of price sources can be disastrous. Although mutual funds do not generally make transactions throughout the day, and fund investors are not typically interested in the fund's NAV more than once per day, the fund managers don't just sit around all day doing nothing and then press a couple buttons before the market closes. They do watch their NAV very closely during the day and think very carefully about which buttons to press at the end of the day. If their source of stock price data goes offline, then they're impacted almost as severely as -- if less visibly than -- an ETF. Asking Yahoo for prices seems straightforward, but (1) you get what you pay for, and (2) these fund companies are built on massive automated infrastructures that expect to receive their data from a certain source in a certain way at a certain time. (And they pay a lot of money in order to be able to expect that.) It would be quite difficult to just feed in manual data, although in the end I suspect some of these companies did just that. Either they fell back to a secondary data supplier, or they manually constructed datasets for their programs to consume.\"",
"title": ""
}
] |
fiqa
|
1e8b5f9bb9a8104afeed90ebb0ccea69
|
Any Ubiquitous Finance App That is on Mac, iOS and Windows?
|
[
{
"docid": "e7c1db1307ddf6bb11778febb7ef6e67",
"text": "Mint.com is a web app with an iPhone (and Android) app. Also, You Need A Budget appears to support all three.",
"title": ""
},
{
"docid": "1127979e7b69eab8ac1e423496d73c8e",
"text": "\"As I have said before on this site, I personally use Moneydance. They have Mac, Linux and Windows support, and recently added an iOS mobile version that syncs with the desktop. I have only used the Mac \"\"desktop\"\" version, and it seems to function well, but have not tried the other platforms, nor the iOS version. I have no company affiliation, but am a (mostly) happy user. :-)\"",
"title": ""
},
{
"docid": "52e161aec330831a69433a984d0b89ae",
"text": "You can try SplashMoney. It works on many platforms, including iPhone, iPod and Mac, but also Palm OS, Android, Blackberry and windows. I've been using it —since more than two years now— with my old Palm OS PDA and it works great. As I work mainly with Linux, I've tested very few times its synchronization with its desktop companion running on windows.",
"title": ""
},
{
"docid": "9ae8bb9c6037940703df953381b830ee",
"text": "I have been using bearsofts money app, both in mac and iOS. I think only down side with this apps is you need to buy them separately. http://ibearmoney.com/money-mac.html",
"title": ""
}
] |
[
{
"docid": "ab62b3029d79d7184624730299ea3d70",
"text": "I have been using http://moneydance.com/ for several years now. Works pretty well for me. Another one is http://www.iggsoftware.com/ibank/ I have not used it other than a five minute play session. Looks more mac-ish than Moneydance, but that's all I know.",
"title": ""
},
{
"docid": "03e9557aeedc4a1650f7eba55a9cf3b6",
"text": "I work for a fund management company and we get our news through two different service providers Bloomberg and Thomson One. They don't actually source the news though they just feed news from other providers Professional solutions (costs ranging from $300-1500+ USD/month/user) Bloomberg is available as a windows install or via Bloomberg Anywhere which offers bimometric access via browser. Bloomberg is superb and their customer support is excellent but they aren't cheap. If you're looking for a free amateur solution for stock news I'd take a look at There are dozens of other tools people can use for day trading that usually provide news and real time prices at a cost but I don't have any direct experience with them",
"title": ""
},
{
"docid": "addd6d0058b349d933d1b3d1f50e168e",
"text": "Here is a list to Yahoo! Finance API. Not sure how much longer this will be support though: https://code.google.com/p/yahoo-finance-managed/wiki/YahooFinanceAPIs",
"title": ""
},
{
"docid": "457c5bf12f90218237dd69a0c2508da6",
"text": "\"Moneydance is a commercial application that is cross-platform. Written in Java, they run and are supported on Windows, Mac and Linux. They integrate with many financial institutions and for those that it cannot, you can import a locally downloaded file. I have used it for several years on my Mac, but have no company affiliation. I'm not sure if by saying \"\"Unix\"\" software you meant FOSS of some kind, but good luck in any case.\"",
"title": ""
},
{
"docid": "1ce26b7bf8249861b734fb8c1e184fc4",
"text": "Plaid is exactly what you are looking for! It's docs are easy to understand, and you can sign up to their API and use their free tier to get started. An example request to connect a user to Plaid and retrieve their transactions data (in JSON):",
"title": ""
},
{
"docid": "987be59025ba34d16ca1979d31c5d0a0",
"text": "\"Unfortunately I don't think any of the online personal finance applications will do what you're asking. Most (if not all) online person finance software uses a combination of partnerships with the banks themselves and \"\"screen scraping\"\" to import your data. This simplifies things for the user but is typically limited to whenever the service was activated. Online personal finance software is still relatively young and doesn't offer the depth available in a desktop application (yet). If you are unwilling to part with historical data you spent years accumulating you are better off with a desktop application. Online Personal Finance Software Pros Cons Desktop Personal Finance Software Pros Cons In my humble opinion the personal finance software industry really needs a hybrid approach. A desktop application that is synchronized with a website. Offering the stability and tools of a desktop application with the availability of a web application.\"",
"title": ""
},
{
"docid": "de1433f15a5657ab6d10c2427bdd38b9",
"text": "As @littleadv and @DumbCoder point out in their comments above, Bloomberg Terminal is expensive for individual investors. If you are looking for a free solution I would recommend Yahoo and Google Finance. On the other side, if you need more financial metrics regarding historic statements and consensus estimates, you should look at the iPad solution from Worldcap, which is not free, but significantly cheaper then Bloomberg and Reuters. Disclosure: I am affiliated with WorldCap.",
"title": ""
},
{
"docid": "80cd38443246f7d211761deb6020b2fc",
"text": "\"I've just recently launched an open source wealth management platform - wealthbot.io ... \"\"Webo\"\" is mostly targeted at RIA's to help the manage multiple portfolios, etc. Take a look at the demo at demo.wealthbot.io, you'll also find links to github, etc. there. It's a rather involved project, but if you are looking for use cases of rebalancing, portfolio accounting, custodian integration, tax loss harvesting, and many other features available at some of the popular robo-advisors, you might find it interesting.\"",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "20dc26fdf817c8a9093762d1cb56b384",
"text": "\"Quicken for Mac will track stocks and mutual funds and allows you to set the \"\"home\"\" currency.\"",
"title": ""
},
{
"docid": "f560d0543b1e788b8411f60aa7523c2b",
"text": "Got a degree in finance and I'll talk about simple ways to really improve your learning experience: excel will be your best friend. Get comfortable with it. Learn; pivot tables, formulas, formatting, and macros. Learn to type at a decent speed. Many students still type slow. It will hinder you Current events is the best way to stay informed. Always be reading up on business information. Pretty much twice a day. Join a free stock market game and track how you do. Get on it twice a week and make trades frequent based on what you think. I can elaborate more if you have any more questions !",
"title": ""
},
{
"docid": "3b97c12e43ff897b685f9465d1f85e67",
"text": "I had the same problem and was looking for a software that would give me easy access to historical financial statements of a company, preferably in a chart. So that I could easily compare earnings per share or other data between competitors. Have a look at Stockdance this might be what you are looking for. Reuters Terminal is way out of my league (price and complexity) and Yahoo and Google Finance just don't offer the features I want, especially on financials. Stockdance offers a sort of stock selection check list on which you can define your own criterion’s. Hence it makes no investment suggestions but let's you implement your own investing strategy.",
"title": ""
},
{
"docid": "830ab9fb4caf0738837905aa1d8a5b57",
"text": "I generally concur with your sentiments. mint.com has 'hack me' written all over it. I know of two major open source tools for accounting: GNUCash and LedgerSMB. I use GNUCash, which comes close to meeting your needs: The 2.4 series introduced SQL DB support; mysql, postgres and sqlite are all supported. I migrated to sqlite to see how the schema looked and ran, the conclusion was that it runs fine but writing direct sql queries is probably beyond me. I may move it to postgres in the future, just so I can write some decent reports. Note that while it uses HTML for reporting, there is no no web frontend. It still requires a client, and is not multi-user safe. But it's probably about the closest to what you what that still falls under the heading of 'personal finance'. A fork of SQL Ledger, this is postgreSQL only but does have a web frontend. All the open source finance webapps I've found are designed for small to medium busineses. I believe it should meet your needs, though I've never used it. It might be overkill and difficult to use for your limited purposes though. I know one or two people in the regional LUG use LedgerSMB, but I really don't need invoicing and paystubs.",
"title": ""
},
{
"docid": "c83ab56176a53cc349d933f86728f74c",
"text": "\"I use Google Finance too. The only thing I have problem with is dividend info which it wouldn't automatically add to my portfolio. At the same time, I think that's a lot to ask for a free web site tool. So when dividend comes, I manually \"\"deposit\"\" the dividend payment by updating the cash amount. If the dividend comes in share form, I do a BUY at price 0 for that particular stock. If you only have 5 stocks, this additional effort is not bad at all. I also use the Hong Kong version of it so perhaps there maybe an implementation difference across country versions. Hope this helps. CF\"",
"title": ""
},
{
"docid": "b1030124273a3360c65ff22e029e7470",
"text": "I've been budgeting with MS Money since 2004 and was pretty disappointed to hear it's being discontinued. Budgeting is actually a stress-relieving hobby for me, and I can be a bit of a control-freak when it comes to finances, so I decided to start early looking for a replacement rather than waiting until MS Money can no longer download transactions. Here are the pros and cons of the ones I've tried (updated 10/2010): You Need A Budget Pro (YNAB) - Based on the old envelopes system, YNAB has you allot money from each paycheck to a specific budget category (envelope). It encourages you to live on last money's income, and if you have trouble with overspending, that can be a great plan. Personally, I'm a big believer in the envelope concept, so that's the biggest pro I found. Also, it's a downloaded software, so once I've bought it (for about $50) it's mine, without forced upgrades as far as I've seen. The big con for me was that it does not automatically download transactions. I would have to sign on to each institution's website and manually download to the program. Also, coming from Money, I'm used to having features that YNAB doesn't offer, like the ability to store information about my accounts. Overall, it's forward-thinking and a good budgeting system, but will take some extra time to download transactions and isn't really a comprehensive management tool for all my financial needs. You can try it out with their free trial. Mint - This is a free online program. The free part was a major pro. It also looks pretty, if that's important to you. Updating is automatic, once you've got it all set up, so that's a pro. Mint's budgeting tools are so-so. Basically, you choose a category and tell it your limit. It yells at you (by text or email) when you cross the line, but doesn't seem to offer any other incentive to stay on budget. When I first looked at Mint, it did not connect with my credit union, but it currently connects to all my banks and all but one of my student loan institutions. Another recent improvement is that Mint now allows you to manually add transactions, including pending checks and cash transactions. The cons for me are that it does not give me a good end-of-the-month report, doesn't allow me to enter details of my paychecks, and doesn't give me any cash-flow forecasting. Overall, Mint is a good casual, retrospective, free online tool, but doesn't allow for much planning ahead. Mvelopes - Here's another online option, but this one is subscription-based. Again, we find the old envelopes system, which I think is smart, so that's a pro for me. It's online, so it downloads transactions automatically, but also allows you to manually add transactions, so another pro. The big con on this one is the cost. Depending on how you far ahead you choose to pay (quarterly, yearly or biannually), you're paying $7.60 to $12 per month. They do offer a free trial for 14 days (plus another 14 days offered when you try to cancel). Another con is that they don't provide meaningful reports. Overall, a good concept, but not worth the cost for me. Quicken - I hadn't tried Quicken earlier because they don't offer a free trial, but after the last few fell short, I landed with Quicken 2009. Pro for Quicken, as an MS Money user is that it is remarkably similar in format and options. The registers and reports are nearly identical. One frustration I'd had with Money was that it was ridiculously slow at start-up, and after a year or so of entering data, Quicken is dragging. Con for Quicken, again as an MS Money user, is that it's budgeting is not as detailed as I would like. Also, it does not download transactions smoothly now that my banks all ask security questions as part of sign-in. I have to sign in to my bank's website and manually download. Quicken 2011 is out now, but I haven't tried it yet. Hopefully they've solved the problem of security questions. Quicken 2011 promises an improved cash-flow forecast, which sounds promising, and was a feature of MS Money that I have very much missed. Haven't decided yet if it's worth the $50 to upgrade to 2011.",
"title": ""
}
] |
fiqa
|
058a6a2d1ad28e1552867c1322240c03
|
How does Google Finance calculate the Institution Owned metric for a stock
|
[
{
"docid": "f2236d25edea853f390ec145c29b351a",
"text": "\"Institutional ownership has nearly lost all meaning. It used to mean mutual funds, investment banks, etc. Now, it means pension funds, who hold the rest of the equity assets directly, and insiders. Since the vast majority of investors in equity do not hold it directly, \"\"institutions\"\" are approaching 100% ownership on all major equities. Other sites still segment the data.\"",
"title": ""
}
] |
[
{
"docid": "6d9657c607586b37a6adb1bcd2413064",
"text": "Returns reported by mutual funds to shareholders, google, etc. are computed after all the funds' costs, including Therefore the returns you see on google finance are the returns you would actually have gotten.",
"title": ""
},
{
"docid": "d424b29f29d724e29c526bee6f6ce5bf",
"text": "The yield on Div Data is showing 20% ((3.77/Current Price)*100)) because that only accounts for last years dividend. If you look at the left column, the 52 week dividend yield is the same as google(1.6%). This is calculated taking an average of n number of years. The data is slightly off as one of those sites would have used an extra year.",
"title": ""
},
{
"docid": "5a9de080444de75c710b8e60527623c7",
"text": "\"I'm trying to understand how an ETF manager optimized it's own revenue. Here's an example that I'm trying to figure out. ETF firm has an agreement with GS for blocks of IBM. They have agreed on daily VWAP + 1% for execution price. Further, there is a commission schedule for 5 mils with GS. Come month end, ETF firm has to do a monthly rebalance. As such must buy 100,000 shares at IBM which goes for about $100 The commission for the trade is 100,000 * 5 mils = $500 in commission for that trade. I assume all of this is covered in the expense ratio. Such that if VWAP for the day was 100, then each share got executed to the ETF at 101 (VWAP+ %1) + .0005 (5 mils per share) = for a resultant 101.0005 cost basis The ETF then turns around and takes out (let's say) 1% as the expense ratio ($1.01005 per share) I think everything so far is pretty straight forward. Let me know if I missed something to this point. Now, this is what I'm trying to get my head around. ETF firm has a revenue sharing agreement as well as other \"\"relations\"\" with GS. One of which is 50% back on commissions as soft dollars. On top of that GS has a program where if you do a set amount of \"\"VWAP +\"\" trades you are eligible for their corporate well-being programs and other \"\"sponsorship\"\" of ETF's interests including helping to pay for marketing, rent, computers, etc. Does that happen? Do these disclosures exist somewhere?\"",
"title": ""
},
{
"docid": "73143af4a4f1f0f7a3f85b82cb901a9f",
"text": "\"Their algorithm may be different (and proprietary), but how I would to it is to assume that daily changes in the stock are distributed normally (meaning the probability distribution is a \"\"bell curve\"\" - the green area in your chart). I would then calculate the average and standard deviation (volatility) of historical returns to determine the center and width of the bell curve (calibrating it to expected returns and implied volaility based on option prices), then use standard formulas for lognormal distributions to calculate the probability of the price exceeding the strike price. So there are many assumptions involved, and in the end it's just a probability, so there's no way to know if it's right or wrong - either the stock will cross the strike or it won't.\"",
"title": ""
},
{
"docid": "6812554ac6a6fe2c714ab6e6f19a657c",
"text": "\"Note that these used to be a single \"\"common\"\" share that has \"\"split\"\" (actually a \"\"special dividend\"\" but effectively a split). If you owned one share of Google before the split, you had one share giving you X worth of equity in the company and 1 vote. After the split you have two shares giving you the same X worth of equity and 1 vote. In other words, zero change. Buy or sell either depending on how much you value the vote and how much you think others will pay (or not) for that vote in the future. As Google issues new shares, it'll likely issue more of the new non-voting shares meaning dilution of equity but not dilution of voting power. For most of us, our few votes count for nothing so evaluate this as you will. Google's founders believe they can do a better job running the company long-term when there are fewer pressures from outside holders who may have only short-term interests in mind. If you disagree, or if you are only interested in the short-term, you probably shouldn't be an owner of Google. As always, evaluate the facts for yourself, your situation, and your beliefs.\"",
"title": ""
},
{
"docid": "42ae41bba0cb5ada50da52201b1b7d59",
"text": "Previously, Google had a delayed update for their stock prices (15 minutes I believe). That change enabled users of Google Finance to see updates to stock prices in real-time.",
"title": ""
},
{
"docid": "a26da9e8aaa057b993b4972726e78b83",
"text": "For each class A share (GOOGL) there's a class C share (GOOG), hence the missing half in your calculation. The almost comes from the slightly higher market price of the class A shares (due to them having voting powers) over class C (which have no voting powers). There's also class B share which is owned by the founders (Larry, Sergei, Eric and perhaps some to Stanford University and others) and differs from class A by the voting power. These are not publicly traded.",
"title": ""
},
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "141996ecd5b6a61868abb87b8a3326de",
"text": "In my experiences most hedge funds won't have a benchmark in their mandate and are evaluated based upon absolute returns. Their benchmarks are generally cash + x basis points. So, no attribution and no IR. No experience at all with CTA's though, so not sure how things are there.",
"title": ""
},
{
"docid": "9d9cfa352ce07f9aa89d06d2a710373e",
"text": "I don't see it in any of the exchange feeds I've gone through, including the SIPs. Not sure if there's something wrong with Nasdaq Last Sale (I don't have that feed) but it should be putting out the exact same data as ITCH.",
"title": ""
},
{
"docid": "8fc2a8e0d7129d86af8acc815abe54f7",
"text": "It's a dilution of the ownership; the public used to own x% of Facebook and now they own less than x% of the bigger Facebook that incorporates Whatsapp (assuming that Whatsapp was completely private before). Logically, the $15 billion is allocated proportionately between the existing stockholders (x% of it for the general public, y% for Mark Zuckerberg, etc). However it doesn't really make sense to think of it that way unless Whatsapp is actually worthless. What's important are the proportions. Suppose that the newly issued shares correspond to 25% of the previous share capital. Then previously the general public owned x% out of 100%, and now they own x% out of 125%, i.e. (0.8x)% of the new share capital. Whether the actual value of those stocks has changed depends entirely on the actual value that Whatsapp adds to the old Facebook. As Dheer says, only time will tell on that one. Apart from the financial consequences, dilution is sometimes considered important because it can mean a change in influence: a significant shareholder would often be able to encourage the company to act in a certain way. With a lower percentage ownership, that influence is diminished.",
"title": ""
},
{
"docid": "5f5014ca6d5e1582d914c4400f4a7023",
"text": "This is a note from my broker, CMC Markets, who use Morningstar: Morningstar calculate the P/E Ratio using a weighted average of the most recent earnings and the projected earnings for the next year. This may result in a different P/E Ratio to those based solely on past earnings as reported on some sites and other publications. They show the P/E as being 9.93. So obviously past earnings would usually be used but you would need to check with your source which numbers they are using. Also, as BHP's results just came out yesterday it may take a while for the most recent financial details to be updated.",
"title": ""
},
{
"docid": "3219e296cb1067d1fcae387db9bd14c5",
"text": "\"To calculate a sector (or index) P/E ratio you need to sum the market caps of the constituent stocks and divide it by the sum of the total earnings of the constituent stocks (including stocks that have negative earnings). There are no \"\"per share\"\" figures used in the calculation. Beware when you include an individual stock that there may be multiple issues associated with the company that are not in the index.... eg. Berkshire Hathaway BRK.B is in the S&P 500 but BRK.A is not. In contrast, Google has both GOOGL and GOOG included in the S&P 500 index but not its unlisted Class B shares. All such shares need to be included in the market cap and figuring out the different share class ratios can be tricky.\"",
"title": ""
},
{
"docid": "62018e52ddd02eed1e4c34166f6a7ae2",
"text": "\"There are several such \"\"lists.\"\" The one that is maintained by the company is called the shareholder registry. That is a list that the company has given to it by the brokerage firms. It is a start, but not a full list, because many individual shareholders hold their stock with say Merrill Lynch, in \"\"street name\"\" or anonymously. A more useful list is the one of institutional ownership maintained by the SEC. Basically, \"\"large\"\" holders (of more than 5 percent of the stock) have to register their holdings with the SEC. More to the point, large holders of stocks, the Vanguards, Fidelitys, etc. over a certain size, have to file ALL their holdings of stock with the SEC. These are the people you want to contact if you want to start a proxy fight. The most comprehensive list is held by the Depositary Trust Company. People try to get that list only in rare instances.\"",
"title": ""
},
{
"docid": "52e41eaf6ab2a990bfe7c69d2d688a11",
"text": "There are lots of good answers on here already. There are actually lots of answers for this question. Lots. I have years of experience on the exchange feed side and there are hundreds and thousands of variables. All of these variables are funneled into systems owned by large financial institutions (I used to manage these - and only a few companies in the world do this so not hard to guess who I work for). Their computers then make trades based on all of these variables and equations. There are variables as whacky as how many times was a company mentioned in an aggregate news feed down to your basic company financials. But if there is a way to measure a company (or to just guess) there is an equation for it plugged into a super computer at a big bank. Now there are two important factors on why you see this mad dash in the morning: Now most of the rest of the day is also automated trades but by the time you are an hour into market open the computers for the most part have fulfilled their calendar buys. Everyone else's answer is right too. There is futures contracts that change, global exchange info changes, options expiring, basic news, whatever but all of these are amplified by the calendar day changing.",
"title": ""
}
] |
fiqa
|
0880a96fe94985f29df19420a8bdf0d4
|
Why Google Finance puts to two decimal places for the trading volumes?
|
[
{
"docid": "cee5b473a5787ba655090a61d7f23e5f",
"text": "Many brokerages offer automatic dividend reinvestment. It is very infrequent that these dividends are exactly a whole share. So, if you have signed up for automatic dividend reinvestment, many brokerages will reinvest your dividends and assign to you a fractional share. I can't speak for how these shares work with regards to voting, but I can say that the value of these fractional holdings does change with stock price as if one genuinely could hold a fraction of a share.",
"title": ""
}
] |
[
{
"docid": "4c24cdc15b7b8dc6992c7d7ccc9a141d",
"text": "\"Volume is measured in the number of shares traded in a given day, week, month, etc. This means that it's not necessarily a directly-comparable measure between stocks, as there's a large difference between 1 million shares traded of a $1 stock ($1 million total) and 1 million shares traded of a $1000 stock ($1 billion total). Volume as a number on its own is lacking in context; it often makes more sense to look at it as an overall dollar amount (as in the parentheses above) or as a fraction of the total number of shares in the marketplace. When you see a price quoted for a particular ticker symbol, whether online, or on TV, or elsewhere, that price is typically the price of the last trade that executed for that security. A good proxy for the current fair price of an asset is what someone else paid for it in the recent past (as long as it wasn't too long ago!). So, when you see a quote labeled \"\"15.5K @ $60.00\"\", that means that the last trade on that security, which the service is using to quote the security's price, was for 15500 shares at a price of $60 per share. Your guess is correct. The term \"\"institutional investor\"\" often is meant to include many types of institutions that would control large sums of money. This includes large banks, insurance companies, pooled retirement funds, hedge funds, and so on.\"",
"title": ""
},
{
"docid": "7640decc4162cbf62a036df0c7c0f259",
"text": "weird holdover from the bad old days when you had to do arithmetic by hand I would guess. Stocks used to trade in 1/8ths, so bonds trading in even smaller increments makes sense. Also (and I am unsure if this is still true) U.S. bonds trade on a 360 day year (or used to anyway) for the same reason... 360 divides well into months and quarters (for easier math) whereas 365 is considerably harder. Most of the world now trades in decimals and 365/365 years so I am unsure why the U.S. doesn't. Institutional inertia I would guess.",
"title": ""
},
{
"docid": "24741103ebc1802d83207a30facc9852",
"text": "\"I have traded options, but not professionally. I hadn't come across this terminology, but I expect it counts how far in-the-money, as an ordinal, an option is relative to the distinct strike prices offered for the option series — a series being the combination of underlying symbol, expiration date, and option type (call/put); e.g., all January 2015 XYZ calls, no matter the strike. For instance, if stock XYZ trades today at $11 and the available January 2015 XYZ calls have strike prices of $6, $8, $10, $12, $14, and $16, then I would expect the $10 call could be called one strike in the money, the $8 two strikes in the money, etc. Similarly, the $12 and $14 calls would be one and two strikes out of the money, respectively. However, if tomorrow XYZ moves to $13, then the $10 previously known as one strike in the money would now be two strikes in the money, and the $12 would be the new one strike in the money. Perhaps this terminology arose because many option strategies frequently involve using options that are at- or near-the-money, so the \"\"one strike in\"\" (or out) of the money contracts would tend to be those employed frequently? Perhaps it makes it easier for people to describe strategies in a more general sense, without citing specific examples. However, the software developer in me dislikes it, given that the measurement is relative to both the current underlying price (which changes quickly), and the strike prices available in the given option series. Hence, I wouldn't use this terminology myself and I suggest you eschew it, too, in favor of something concrete; e.g. specify your contract strikes in dollar terms — especially when it matters.\"",
"title": ""
},
{
"docid": "e23e5f9545636f5431c911d953156a45",
"text": "\"Market makers (shortened MM) in an exchange are generally required to list both a bid and ask price to allow both buyers and sellers to trade and keep the market moving. However, a more general idea of a MM may includes companies off an exchange (say large banks acting as broker/dealers in an over-the-counter market) are not required to give a simultaneous bid/ask, but often will on request. So, it might depend on where you are getting this data but likely the bid/ask was quoted simultaneously. An exchange, like the NASDAQ for instance, may have multiple MMs for a given market. The \"\"market\"\" spread will be from the highest bid to the lowest ask over all the MMs. The highest bid and lowest ask may come from different MMs and any particular MM often will have a larger spread. The size of the spread gives a rough idea of how much a MM is trying to make off of a \"\"round trip\"\" trade (buying than immediately selling to someone else or selling than immediately buying from someone else). Of course, immediate round-trip trades are not always possible and there are many other complications. However, half the spread is a rough indicator of how much they hope to make off of a single trade.\"",
"title": ""
},
{
"docid": "e72fec842579c94379154c5c9e31b87d",
"text": "IESC has a one-time, non-repeatable event in its operating income stream. It magnifies operating income by about a factor of five. It impacts both the numerator and the denominator. Without knowing exactly how the adjustments are made it would take too much work for me to calculate it exactly, but I did get close to their number using a relatively crude adjustment rule. Basically, Yahoo is excluding one-time events from its definitions since, although they are classified as operating events, they distort the financial record. I teach securities analysis and have done it as a profession. If I had to choose between Yahoo and Marketwatch, at least for this security, I would clearly choose Yahoo.",
"title": ""
},
{
"docid": "2227038c0029b9fdd52d89545028260a",
"text": "The last column in the source data is volume (the number of stocks that was exchanged during the day), and it also has a value of zero for that day, meaning that nobody bought or sold the stocks on that day. And since the prices are prices of transactions (the first and the last one on a particular day, and the ones with the highest/lowest price), the prices cannot be established, and are irrelevant as there was not a single transaction on that day. Only the close price is assumed equal to its previous day counterpart because this is the most important value serving as a basis to determine the daily price change (and we assume no change in this case). Continuous-line charts also use this single value. Bar and candle charts usually display a blank space for a day where no trade occurred.",
"title": ""
},
{
"docid": "2d9d061301932cab6ddb2a60cf75d941",
"text": "Log-returns are very commonly used in financial maths, especially quantitative finance. The important property is that they're symmetrical around 0 with respect to addition. This property makes it possible to talk about an average return. For instance, if a stock goes down 20% over a period of time, it has to gain 25% to be back where you started. For the log-return on the other hand the numbers are 0.223 down over a period of time, and 0.223 up to get you back to square 1. In this sense, you can simply take an arithmetic average and it makes sense. You can freely add up or subtract values on the log-return scale, like log-interest rates or log-inflation rates. Whereas the arithmetic mean of (non-log) returns is simply meaningless: A stock with returns -3% and +3% would have 0% on average, when in fact the stock has declined in price? The correct approach on direct price-returns would be to take a different mean (e.g. geometric) to get a decent average. And yet it will be hard to incorporate other information, like subtracting the risk-free rate or the inflation rate to get rate-adjusted average returns. In short: Log-returns are easier to handle computationally, esp. in bulk, but non-log-returns are easier to comprehend/imagine as a number of their own.",
"title": ""
},
{
"docid": "7ab1a33618eb34680f2d6c4335cdccbc",
"text": "Here's another attempt at explanation: it's basically because parabolas are flat at the bottom. Let me explain. As you might know, the variance of the log stock price in Black Scholes is vol^2 * T, in other words, variance of the log stock price is linear in time to expiry. Now, that means that the standard deviation of your log stock price is square root in time. This is consequential. For normally distributed random variables, in 68% of cases we end up within one standard deviation. So, basically, we expect our log stock price to be within something something times square root of T. So, if your stock has a vol of 16%, it'll be plus/minus 32% in 4 years, plus/minus 16% for one year, plus/minus 8% for 3m, plus/minus 4% for 3-ish weeks, and plus/minus 1% for a business day. As you see, the decay is slow at first, but much more rapid as we get closer. How does the square root function look? It's a sideways parabola. As we come closer to zero, the slope of the square root function goes to infinity. (That is related to the fact that Brownian motion is almost surely no-where differentiable - it just shoots off with infinite slope, returning immediately, of course :-) Another way of looking at it is the old traders rule of thumb that an at-the-money option is worth approximately S * 0.4 * vol * sqrt(T). (Just do a Taylor expansion of Black Scholes). Again, you have the square root of time to expiry in there, and as outlined above, as we get closer to zero, the square root drops slowly at first, and then precipitously.",
"title": ""
},
{
"docid": "14a425ef8cb11db564bada29217d8e6f",
"text": "First - Google's snapshot - Then - Yahoo - I took these snapshots because they will not exist on line after the market opens, and without this context, your question won't make sense. With the two snapshots you can see, Yahoo shows the after hours trades and not just the official market close for the day. The amount it's down is exactly tracked from the close shown on Google. Now you know.",
"title": ""
},
{
"docid": "a8ee07f460a8a1fe9480e40afe4f4815",
"text": "Profit after tax can have multiple interpretations, but a common one is the EPS (Earnings Per Share). This is frequently reported as a TTM number (Trailing Twelve Months), or in the UK as a fiscal year number. Coincidentally, it is relatively easy to find the total amount of dividends paid out in that same time frame. That means calculating div cover is as simple as: EPS divided by total dividend. (EPS / Div). It's relatively easy to build a Google Docs spreadsheet that pulls both values from the cloud using the GOOGLEFINANCE() function. I suspect the same is true of most spreadsheet apps. With a proper setup, you can just fill down along a column of tickers to get the div cover for a number of companies at once.",
"title": ""
},
{
"docid": "42ae41bba0cb5ada50da52201b1b7d59",
"text": "Previously, Google had a delayed update for their stock prices (15 minutes I believe). That change enabled users of Google Finance to see updates to stock prices in real-time.",
"title": ""
},
{
"docid": "2ea51041cbb14ef2276388529ab024ee",
"text": "Simply because forex brokers earn money from the spread that they offer you. Spread is the difference between buyers and sellers. If the buy price is at 1.1000 and the sell price is at 1.1002 then the spread is 2 pips. Now think that this broker is getting spread from its liquidity cheaper (for example 1 pip spread). As you can understand this broker makes a profit of 1 pip for each trade you place... Now multiply 1 pip X huge volume, and then you will understand why most forex brokers don't charge commissions.",
"title": ""
},
{
"docid": "244082b525c3e0b52022e26c339e7810",
"text": "\"In the US, stocks are listed on one exchange but can be traded on multiple venues. You need to confirm exactly what your data is showing: a) trades on the primary-listed exchange; or b) trades made at any venue. Also, the trade condition codes are important. Only certain trade condition codes contribute towards the day's open/high/low/close and some others only contribute towards the volume data. The Consolidated Tape Association is very clear on which trades should contribute towards each value - but some vendors have their own interpretation (or just simply an erroneous interpretation of the specifications). It may surprise you to find that the majority of trading volume for many stocks is not on their primary-listed exchange. For example, on 2 Mar 2015, NASDAQ:AAPL traded a total volume across all venues was 48096663 shares but trading on NASDAQ itself was 12050277 shares. Trades can be cancelled. Some data vendors do not modify their data to reflect these busted trades. Some data vendors also \"\"snapshot\"\" their feed at a particular point in time of the data. Some exchanges can provide data (mainly corrections) 4-5 hours after the closing bell. By snapshotting the data too early and throwing away any subsequent data is a typical cause of data discrepancies. Some data vendors also round prices/volumes - but stocks don't just trade to two decimal places. So you may well be comparing two different sets of trades (with their own specific inclusion rules) against the same stock. You need to confirm with your data sources exactly how they do things. Disclosure: Premium Data is an end-of-day daily data vendor.\"",
"title": ""
},
{
"docid": "c3dab5f5b1e022dab0028cec8b0265ad",
"text": "That is called a 'volume chart'. There are many interactive charts available for the purpose. Here is clear example. (just for demonstration but this is for India only) 1) Yahoo Finance 2) Google Finance 3) And many more Usually, the stock volume density is presented together (below it) with normal price vs time chart. Note: There is a friendly site about topics like this. Quant.stackexchange.com. Think of checking it out.",
"title": ""
},
{
"docid": "6626c4f142e3832bfc708cd93472796d",
"text": "You can easily build a Google Sheet spreadsheet to track what you want as Sheet has a 'googlefinance()' function to look-up the same prices and data you can enter and track in a Google Finance portfolio, except you can use it in ways you want. For example, you can track your purchase price at a fixed exchange rate, track the current market value as the product of the stock's price times the floating exchange rate, and then record your realized profit and loss using another fixed exchange rate. You don't have to record the rates either, as googlefinance() func is able to lookup prices as of a particular date. You can access Google Sheet through a web browser or Android app.",
"title": ""
}
] |
fiqa
|
46eb45e96aa7fa20516fb59b0cbae89f
|
Is there a Yahoo Finance ticker for NYMEX Crude Oil Front Month?
|
[
{
"docid": "2b8859ddba80c7dc3f4ac1688e17a7e4",
"text": "Yahoo Finance doesn't offer this functionality; I remember looking for this exact feature a couple of years ago for coffee futures. Your best option is to look at the futures chain. However, Yahoo Finance's future chains aren't always complete, since you'll notice that the futures chain for NYMEX crude oil omit the June contract. The contract still exists, but Yahoo doesn't list it in its own futures chain or in the future chain for May.",
"title": ""
},
{
"docid": "7f3e8cac96486db24344d65596d6fff2",
"text": "Yahoo Finance has this now, the ticker is CL=F.",
"title": ""
}
] |
[
{
"docid": "c974fce2e0de21ef5938bef66aad614f",
"text": "\"Using your example link, I found the corresponding chart for a stock that trades on London Stock Exchange: https://ca.finance.yahoo.com/echarts?s=RIO.L#symbol=RIO.L;range=1d As you can see there, the chart runs from ~8:00am to ~4:30pm, and as I write this post it is only 2:14pm Eastern Time. So clearly this foreign chart is using a foreign time zone. And as you can see from this Wikipedia page, those hours are exactly the London Stock Exchange's hours. Additionally, the closing price listed above the graph has a timestamp of \"\"11:35AM EST\"\", meaning that the rightmost timestamp in the graph (~4:30pm) is equal to 11:35AM EST. 16:30 - 11:30 = 5 hours = difference between London and New York at this time of year. So those are two data points showing that Yahoo uses the exchange's native time zone when displaying these charts.\"",
"title": ""
},
{
"docid": "8f4c080735d5f2b965340b162ba88a58",
"text": "Google is your friend. If you buy me a beer, I might be as well. By the way DOD is the ticker. Dogs of the Dow ETF",
"title": ""
},
{
"docid": "9764ba3afd9210806de741e49eaf845a",
"text": "\"Google Docs spreadsheets have a function for filling in stock and fund prices. You can use that data to graph (fund1 / fund2) over some time period. Syntax: =GoogleFinance(\"\"symbol\"\", \"\"attribute\"\", \"\"start_date\"\", \"\"num_days|end_date\"\", \"\"interval\"\") where: This analysis won’t include dividends or distributions. Yahoo provides adjusted data, if you want to include that.\"",
"title": ""
},
{
"docid": "b66b61ad11cadb30ca1d30f219290326",
"text": "UNG United States Natural Gas Fund Natural Gas USO United States Oil Fund West Texas Intermediate Crude Oil UGA United States Gasoline Fund Gasoline DBO PowerShares DB Oil Fund West Texas Intermediate Crude Oil UHN United States Heating Oil Fund Heating Oil I believe these are as close as you'd get. I'd avoid the double return flavors as they do not track well at all. Update - I understand James' issue. An unmanaged single commodity ETF (for which it's impractical to take delivery and store) is always going to lag the spot price rise over time. And therefore, the claims of the ETF issuer aside, these products will almost certain fail over time. As shown above, When my underlying asset rises 50%, and I see 24% return, I'm not happy. Gold doesn't have this effect as the ETF GLD just buys gold, you can't really do that with oil.",
"title": ""
},
{
"docid": "ff7f871a450e24d96f85664029365357",
"text": "Investopedia has one and so does marketwatch I've always used marketwatch, and I have a few current competitions going on if you want me to send the link They recently remodeled the website so it works on mobile and not as well on desktop Don't know anything about the investopedia one though",
"title": ""
},
{
"docid": "d6614c80a1bfd3d9994c53dd2e02b2ba",
"text": "Try Google Finance Screener ; you will be able to filter for NASDAQ and NYSE exchanges.",
"title": ""
},
{
"docid": "1f82809b3c94ce8c2b6267adeac6bdfc",
"text": "\"SECTION | CONTENT :--|:-- Title | \"\"High Profit Trades found with Candlestick Breakout Patterns\"\" - Stephen Bigalow Description | Originally presented on July 10, 2012. For more information on Steve Bigalow's Candle Profit System for MetaStock visit http://www.metastock.com/products/thirdparty/?3PC-ADD-CPS Everyone wishes they got into the fast moving stock that jumped up $25 in a month. Candlestick Signals not only identify these potential movers -- they help you identify if there is still time to participate in the move! In this live webinar Steve will show you: Which signals produce the Breakout Patterns How to per... Length | 1:23:12 **** ^(I am a bot, this is an auto-generated reply | )^[Info](https://www.reddit.com/u/video_descriptionbot) ^| ^[Feedback](https://www.reddit.com/message/compose/?to=video_descriptionbot&subject=Feedback) ^| ^(Reply STOP to opt out permanently)\"",
"title": ""
},
{
"docid": "1004cf6b56fd3977ba674b6a4263bb37",
"text": "You can follow the intra-day NAV of an ETF, for instance SPY, by viewing its .IV (intra-day value) ticker which tracks it's value. http://finance.yahoo.com/q?s=spy http://finance.yahoo.com/q?s=^SPY-IV Otherwise, each ETF provider will update their NAV after business each day on their own website. https://www.spdrs.com/product/fund.seam?ticker=spy",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "3dccc75bc4b29bf2cb80a8c9dff15b95",
"text": "\"My answer is Microsoft Excel. Google \"\"VBA for dummies\"\" (seriously) and find out if your brokerage offers an 'API'. With a brief understanding of coding you can get a spreadsheet that is live connected to your brokers data stream. Say you have a spreadsheet with the 1990 value of each in the first two columns (cells a1 and b1). Maybe this formula could be the third column, it'll tell you how much to buy or sell to rebalance them. then to iterate the rebalance, set both a2 and b2 to =C1 and drag the formula through row 25, one row for each year. It'll probably be a little more work than that, but you get the idea.\"",
"title": ""
},
{
"docid": "c7e85b5175eb7557058a06f4ece1e8e9",
"text": "Sort of unrelated to the main post here, but I've been hoping to buy a few shares that would motivate me to follow the market and get a bit of hands on experience to better understand it all. What trading program would you recommend for a few simple trades like that? Thanks!",
"title": ""
},
{
"docid": "9c6533602ce5b481f4d4b8fe01a45b3f",
"text": "\"A number of sites provide delayed option chains online. Yahoo Finance is one example: I linked to Apple's chain, but to get one yourself, put the ticker you want in the search box, then click the \"\"options\"\" link in the sidebar that I called out in the image.\"",
"title": ""
},
{
"docid": "addd6d0058b349d933d1b3d1f50e168e",
"text": "Here is a list to Yahoo! Finance API. Not sure how much longer this will be support though: https://code.google.com/p/yahoo-finance-managed/wiki/YahooFinanceAPIs",
"title": ""
},
{
"docid": "c9e93eacddd5b462e5df20e20436b1f6",
"text": "\"I'm familiar with and have traded U.S.-listed LEAPS and I've always used the CBOE quotes page you linked to. So, I too was surprised I couldn't find 3M (MMM) LEAPS quotes at that page, even after checking the \"\"List all options, LEAPS, Credit Options & Weeklys if avail.\"\" radio button. Used to work! Fortunately, I was able to get access to the full chain of option quotes from the CBOE's other quotes page: Go to the \"\"Quotes & Data\"\" menu, then select Delayed Quotes - NEW! Here's how: I think the new interface is terrible: it's too many steps to get to the information desired. I preferred the all-in-one table of the Delayed Quotes Classic page, the one you linked to. As to why that classic page isn't yielding the full chain, I can only suggest it is a recently introduced bug (software defect). I certainly was able to get LEAPS quotes from that page before. On Yahoo! Finance option quotes: I don't know why their chain is incomplete – I can't see the logic, for instance, as to why MMM Jan 2012 60 calls are missing. I thought at first it may be lack of volume or open interest, but nope. Anyway, I don't trust Yahoo! to provide accurate, reliable quotes anyway, having seen too many errors and missing data in particular in the feed of Canadian stocks, which I also trade. I rely on the exchange's quotes, and my broker's real-time quotes. I check Yahoo! only for convenience sake, and when it actually matters I go to the other more reliable sources. For what it's worth, though, you can also get full chain option quotes at NASDAQ. See here for the 3M (MMM) example then click on the \"\"Jan 12\"\" link near the top. However, I would consider CBOE's quotes more definitive, since they are the options exchange.\"",
"title": ""
},
{
"docid": "7bd14724d83214a490d517282be12cd3",
"text": "I'm fairly convinced there is no difference whatsoever between dividend payment and capital appreciation. It only makes financial sense for the stock price to be decreased by the dividend payment so over the course of any specified time interval, without the dividend the stock price would have been that much higher were the dividends not paid. Total return is equal. I think this is like so many things in finance that seem different but actually aren't. If a stock does not pay a dividend, you can synthetically create a dividend by periodically selling shares. Doing this would incur periodic trade commissions, however. That does seem like a loss to the investor. For this reason, I do see some real benefit to a dividend. I'd rather get a check in the mail than I would have to pay a trade commission, which would offset a percentage of the dividend. Does anybody know if there are other hidden fees associated with dividend payments that might offset the trade commissions? One thought I had was fees to the company to establish and maintain a dividend-payment program. Are there significant administrative fees, banking fees, etc. to the company that materially decrease its value? Even if this were the case, I don't know how I'd detect or measure it because there's such a loose association between many corporate financials (e.g. cash on hand) and stock price.",
"title": ""
}
] |
fiqa
|
1ab20223356dd55733cecd25cd11aaf4
|
What is the best cross-platform GPL personal finance tool available?
|
[
{
"docid": "a471c4c58c07ed7ca866cff9414c8695",
"text": "There isn't one. I haven't been very happy with anything I've tried, commercial or open source. I've used Quicken for a while and been fairly happy with the user experience, but I hate the idea of their sunset policy (forced upgrades) and using proprietary format for the data files. Note that I wouldn't mind using proprietary and/or commercial software if it used a format that allowed me to easily migrate to another application. And no, QIF/OFX/CSV doesn't count. What I've found works well for me is to use Mint.com for pulling transactions from my accounts and categorizing them. I then export the transaction history as a CSV file and convert it to QIF/OFX using csv2ofx, and then import the resulting file into GNUCash. The hardest part is using categories (Mint.com) and accounts (GnuCash) properly. Not perfect by any means, but certainly better than manually exporting transactions from each account.",
"title": ""
},
{
"docid": "c86cf4c13b5cedf554d0964b7b378467",
"text": "\"I use \"\"Money Manager Ex\"\" which is a Windows application I use on PC to log my transactions and for simple statistic. They have two versions, simple standlone application and self-hosted web app.\"",
"title": ""
}
] |
[
{
"docid": "eaa2180e94ca419c10d2db37381389b7",
"text": "I'm not directly affiliated with the company (I work for one of the add-on partners) but I can wholeheartedly recommend Xero for both personal and business finances. Their basis is to make accounting simple and clean, without sacrificing any of the power behind having the figures there in the first place.",
"title": ""
},
{
"docid": "6227665539adcf4ff59654255a8cf00c",
"text": "\"You Need A Budget is a nice budgeting tool that works on the desktop. It is more focused on manual entry and budgeting over auto-downloading and categorizing. It does support downloading transactions from banks and then importing the transaction files. You mentioned having \"\"trust issues\"\" with a bank and this would be safe as you don't enter your credentials into the app. It also has a mobile app that works well. Not exactly what you are looking for, but it would work in India and be safe if you have an untrustworthy bank and it would allow you to import transactions.\"",
"title": ""
},
{
"docid": "94c2b0c5d718b73fc598879131d2e8ee",
"text": "\"Mint.com does this quite well. The graph views of your budgets, investments, debts, and other aspects of your financial life can be shown in gestalt, or on a per-account basis (at least, it does for me). See the investment \"\"how it works\"\" page for more information. \"\"Find out whether you're beating the market–or it's beating you. Compare your portfolio to market benchmarks, and instantly see your asset allocation across all your investment accounts: 401k, mutual funds, brokerage accounts, even IRAs.\"\"\"",
"title": ""
},
{
"docid": "a00836f20743c62bfe2c8d02b8662752",
"text": "As far as I know theres no single tool that does all that well. You'll have to keep your investments separate from your daily expenses and money goals. There are a few tools everyone uses. I'm partial to budgeting apps. You can try ynab, everydollar, goodbudget. I wouldn't recommend mint as I personally don't trust my login info with a third party. I don't care who owns them. Just my opinion. I'm working on my own budgeting app. Ideally I'd like to include investments. But thats V2. If you'd like to keep updated on that let me know. Oh, what type of phone do you use?",
"title": ""
},
{
"docid": "10d9f9670fe70075b14cc479478ba1a2",
"text": "No, GnuCash doesn't specifically provide a partner cash basis report/function. However, GnuCash reports are fairly easy to write. If the data was readily available in your accounts it shouldn't be too hard to create a cash basis report. The account setup is so flexible, you might actually be able to create accounts for each partner, and, using standard dual-entry accounting, always debit and credit these accounts so the actual cash basis of each partner is shown and updated with every transaction. I used GnuCash for many years to manage my personal finances and those of my business (sole proprietorship). It really shines for data integrity (I never lost data), customer management (decent UI for managing multiple clients and business partners) and customer invoice generation (they look pretty). I found the user interface ugly and cumbersome. GnuCash doesn't integrate cleanly with banks in the US. It's possible to import data, but the process is very clunky and error-prone. Apparently you can make bank transactions right from GnuCash if you live in Europe. Another very important limitation of GnuCash to be aware of: only one user at a time. Period. If this is important to you, don't use GnuCash. To really use GnuCash effectively, you probably have to be an actual accountant. I studied dual-entry accounting a bit while using GnuCash. Dual-entry accounting in GnuCash is a pain in the butt. Accurately recording certain types of transactions (like stock buys/sells) requires fiddling with complicated split transactions. I agree with Mariette: hire a pro.",
"title": ""
},
{
"docid": "3fde684749772c7d428b5dac76f79226",
"text": "\"The Yahoo Finance API is no longer available, so Finance::Quote needs to point at something else. Recent versions of Finance::Quote can use AlphaVantage as a replacement for the Yahoo Finance API, but individual users need to acquire and input an AlphaVantage API key. Pretty decent documentation for how to this is available at the GnuCash wiki. Once you've followed the directions on the wiki and set the API key, you still need to tell each individual security to use AlphaVantage rather than Yahoo Finance: As a warning, I've been having intermittent trouble with AlphaVantage. From the GnuCash wiki: Be patient. Alphavantage does not have the resources that Yahoo! did and it is common for quote requests to time out, which GnuCash will present as \"\"unknown error\"\". I've certainly been experiencing those errors, though not always.\"",
"title": ""
},
{
"docid": "668cecf9dd78bc8eeb8ac981a1655342",
"text": "Take a look at http://en.wikipedia.org/wiki/Comparison_of_accounting_software, in particular the rows with a market focus of 'personal'. This is probably one of the more complete lists available, and shows if they are web-based (like Mint) or standalone (like Quicken or Microsoft Money).",
"title": ""
},
{
"docid": "3b97c12e43ff897b685f9465d1f85e67",
"text": "I had the same problem and was looking for a software that would give me easy access to historical financial statements of a company, preferably in a chart. So that I could easily compare earnings per share or other data between competitors. Have a look at Stockdance this might be what you are looking for. Reuters Terminal is way out of my league (price and complexity) and Yahoo and Google Finance just don't offer the features I want, especially on financials. Stockdance offers a sort of stock selection check list on which you can define your own criterion’s. Hence it makes no investment suggestions but let's you implement your own investing strategy.",
"title": ""
},
{
"docid": "05b062c3dbfae8603e25530ca2902b85",
"text": "Yodlee's Moneycenter is the system that powered Mint.com before Intuit bought them. It works great for managing accounts in a similar fashion to Mint. They have a development platform that might be worth checking out.",
"title": ""
},
{
"docid": "80cd38443246f7d211761deb6020b2fc",
"text": "\"I've just recently launched an open source wealth management platform - wealthbot.io ... \"\"Webo\"\" is mostly targeted at RIA's to help the manage multiple portfolios, etc. Take a look at the demo at demo.wealthbot.io, you'll also find links to github, etc. there. It's a rather involved project, but if you are looking for use cases of rebalancing, portfolio accounting, custodian integration, tax loss harvesting, and many other features available at some of the popular robo-advisors, you might find it interesting.\"",
"title": ""
},
{
"docid": "1c4a0bcd6ec884cb4e38e9035f7e5ffb",
"text": "I haven't used it in years, but look at GnuCash. From the site, one bullet point under Feature Highlights:",
"title": ""
},
{
"docid": "c83ab56176a53cc349d933f86728f74c",
"text": "\"I use Google Finance too. The only thing I have problem with is dividend info which it wouldn't automatically add to my portfolio. At the same time, I think that's a lot to ask for a free web site tool. So when dividend comes, I manually \"\"deposit\"\" the dividend payment by updating the cash amount. If the dividend comes in share form, I do a BUY at price 0 for that particular stock. If you only have 5 stocks, this additional effort is not bad at all. I also use the Hong Kong version of it so perhaps there maybe an implementation difference across country versions. Hope this helps. CF\"",
"title": ""
},
{
"docid": "21ad8c178fcaf9a290e700ecbcbab79c",
"text": "I have no idea if Wikivest can handle options, but I've been pretty satisfied with it as a portfolio visualization tool. It links automatically with many brokerage accounts, and has breakdowns by both portfolio and individual investment levels.",
"title": ""
},
{
"docid": "1592c9cd0da3961ba90df07a51f28241",
"text": "Instead of gnucash i suggest you to use kmymoney. It's easier",
"title": ""
},
{
"docid": "bebaa6b3cce1a7612b581d6cba1a3810",
"text": "MoneyDashboard or XeroPersonal are similar sites to Mint.com MoneyDashboard is planning on releasing an Android App XeroPersonal is also in development of an Android App For more details about the differences between the two apps, see this Web App question",
"title": ""
}
] |
fiqa
|
a924f050650666a5b0a4451ffd54ed86
|
Personal finance software for Mac that can track stocks and mutual funds? (Even manual updating of share prices will do.)
|
[
{
"docid": "500aba91d79281094dbadba775df5b7a",
"text": "I'm using iBank on my Mac here and that definitely supports different currencies and is also supposed to be able to track investments (I haven't used it to track investments yet, hence the 'supposed to' caveat).",
"title": ""
},
{
"docid": "20dc26fdf817c8a9093762d1cb56b384",
"text": "\"Quicken for Mac will track stocks and mutual funds and allows you to set the \"\"home\"\" currency.\"",
"title": ""
},
{
"docid": "f30604cdaf6d233b808313a4423f3974",
"text": "I currently use Moneydance on my Mac. Before that I had used Quicken on a PC until version 2007. It is pretty good, does most simple investment stuff just fine. It can automatically download prices for regular stocks. Mutual funds I have to input by hand.",
"title": ""
}
] |
[
{
"docid": "992dc4a9ec3108d705e47fbb0ccb0bf4",
"text": "\"Real-time equity (or any other market) data is not available for free anywhere in the US. It is always delayed by 10-15 minutes. On the other hand, online brokers who target the \"\"day trader\"\" (Interactive Brokers, TD Ameritrade, etc.) offer much closer to real-time data AND feature all the tools/alerts/charts/etc. you could ever possibly dream of. I bet the type of alert you're asking for is available with just a couple of clicks on one of these brokers' platforms. Of course, accounts with these online brokers are not free; you must pay for these sophisticated tools and fast market access. Another down side is that the data feeds sent to you by even the most sophisticated online broker are still delayed by tens of seconds compared to the data feeds used by big banks and professional investors. Not to mention that the investment arm of the broker you use will be making its own trades based on the data feeds before relaying them on to you. So this begs the question: why do you need real-time information? Are you trying to \"\"day trade\"\" -- i.e. profit from minute-to-minute fluctuations in the stock market? (I can't in good conscience recommend that, but best of luck to you.) If on the other hand you don't truly need \"\"real-time\"\" data for your application, then I support @ChrisDegnen's approach -- use public data feeds and write your own software. You probably will not find any free tools for the sort of alerting you're looking for because most folks who want these types of alerts also need faster feeds and are therefore already using an online broker's tools.\"",
"title": ""
},
{
"docid": "363623e8db02bc05fde13f8e5d82c593",
"text": "To answer your question, plugins aren't cross-platform, so if you need Bloomberg or other third-party vendor data feeds, you're probably out of luck. Now, for the rant: Hot keys, hot keys, hot keys. Using Excel on a Mac is like working with your fingers glued together if you use Windows Excel all day at work. I have a windows laptop at home just for Bloomberg + Excel. If you make money using Excel, you need to consider at least getting VMWare Fusion or Parallels and running windows on your Mac. Once you are decent in Excel, you'll hate the lack of page up/down and home/end keys on your Mac, as I do with mine. The Fn+Ctrl+Left/Down/Up/Left just isn't the same.",
"title": ""
},
{
"docid": "9e6f5a82008f9330d2061b78d7cbadd5",
"text": "I spent a while looking for something similar a few weeks back and ended up getting frustrated and asking to borrow a friend's Bloombterg. I wish you the best of luck finding something, but I wasn't able to. S&P and Morningstar have some stuff on their site, but I wasn't able to make use of it. Edit: Also, Bloomberg allows shared terminals. Depending on how much you think as a firm, these questions might come up, it might be worth the 20k / year",
"title": ""
},
{
"docid": "5bfedbdd63f74534043d2d59fcef16b4",
"text": "Like others have said, mutual funds don't have an intraday NAV, but their ETF equivalents do. Use something like Yahoo Finance and search for the ETF.IV. For example VOO.IV. This will give you not the ETF price (which may be at a premium or discount), but the value of the underlying securities updated every 15 seconds.",
"title": ""
},
{
"docid": "3451c2779bca4a3422a1edf0de832b52",
"text": "At this time, Google Finance doesn't support historical return or dividend data, only share prices. The attributes for mutual funds such as return52 are only available as real-time data, not historical. Yahoo also does not appear to offer market return data including dividends. For example, the S&P 500 index does not account for dividends--the S&P ^SPXTR index does, but is unavailable through Yahoo Finance.",
"title": ""
},
{
"docid": "2e7fa2cff773fce251baa01ef94778ef",
"text": "We have custom software written in mostly C# for the long term strategies. Day trading is done on multiple platforms. Currently using ToS scripts for some futures and equities strategies to great success, and sierra charts for a few futures exclusively. I just moved into a position to work with day trading so I'm still learning more about the systems he uses",
"title": ""
},
{
"docid": "9ae8bb9c6037940703df953381b830ee",
"text": "I have been using bearsofts money app, both in mac and iOS. I think only down side with this apps is you need to buy them separately. http://ibearmoney.com/money-mac.html",
"title": ""
},
{
"docid": "81eea8857109ec0260c922f2c9a4e4c3",
"text": "There is a great 3rd party application out there that I use (I am a broker) along with my internal analysts and other 3rd party sources. VectorVest has a LOT of technical information, but is very easy to use. It will run any kind of screen you like, including low 52 week numbers. (No, I don't get anything for recommending them.)",
"title": ""
},
{
"docid": "3aa935aa25a7851ccd845e69c74c8def",
"text": "\"There is a site that treats you like a fund manager in the real market, Marketoracy, http://marketocracy.com/. Each user is given 1 million in cash. You can have multiple \"\"mutual funds\"\", and the site allows use to choose between two types of strategies, buy/sell, short/cover. Currently, options are not supported. The real value of the site is that users are ranked against each other (of course, you can op out of the rankings). This is really cool because you can determine the real worth of your returns compared to the rest of investors across the site. A couple years back, the top 100 investors were invited to come on as real mutual fund managers - so the competition is legitimate. Take a look at the site, it's definitely worth a try. Were there other great sites you looked at?\"",
"title": ""
},
{
"docid": "ec01e6ad07bd6f63d716dde54886fb4c",
"text": "\"My broker (thinkorswim) offers this from the platform's trade tab. I believe this feature isn't crippled in the PaperMoney version which is effectively a \"\"free online service.\"\"\"",
"title": ""
},
{
"docid": "5685b1ded2c93079cd5e6b11fdc85535",
"text": "I found that an application already exists which does virtually everything I want to do with a reasonable interface. Its called My Personal Index. It has allowed me to look at my asset allocation all in one place. I'll have to enter: The features which solve my problems above include: Note - This is related to an earlier post I made regarding dollar cost averaging and determining rate of returns. (I finally got off my duff and did something about it)",
"title": ""
},
{
"docid": "8be84e4133969ba6462f5fa6309b578b",
"text": "About 10 years ago, I used to use MetaStock Trader which was a very sound tool, with a large number of indicators, but it has been a number of years since I have used it, so my comments on it will be out of date. At the time it relied upon me purchasing trading data myself, which is why I switched to Incredible Charts. I currently use Incredible Charts which I have done for a number of years, initially on the free adware service, now on the $10/year for EOD data access. There are quicker levels of data access, which might suit you, but I can't comment on these. It is web-based which is key for me. The data quality is very good and the number of inbuilt indicators is excellent. You can build search routines on the basis of specific indicators which is very effective. I'm looking at VectorVest, as a replacement for (or in addition to) Incredible Charts, as it has very powerful backtesting routines and the ability to run test portfolios with specific buy/sell criteria that can simulate and backtest a number of trading scenarios at the same time. The advantage of all of these is they are not tied to a particular broker.",
"title": ""
},
{
"docid": "cf879d817b1a282b62a24a5bf1dc6ed0",
"text": "\"I'm another programmer, I guess we all just like complicated things, or got here via stackoverflow. Obligatory tedious but accurate point: Investing is not personal finance, in fact it's maybe one of the less important parts of it. See this answer: Where to start with personal finance? Obligatory warning for software developer type minds: getting into investing because it's complicated and therefore fun is a really awful idea from a financial perspective. Or see behavioral finance research on how analytical/professional/creative type people are often terrible at investing, while even-tempered practical people are better. The thing with investing is that inaction is better than action, tried and true is better than creative, and simple is better than complicated. So if you're like me and many programmers and like creative, complicated action - not good for the wallet. You've been warned. That said. :-) Stuff I read In general I hate reading too much financial information because I think it makes me take ill-advised actions. The actions I most need to take have to do with my career and my spending patterns. So I try to focus on reading about software development, for example. Or I answer questions on this site, which at least might help someone out, and I enjoy writing. For basic financial news and research, I prefer Morningstar.com, especially if you get the premium version. The writing has more depth, it's often from qualified financial analysts, and with the paid version you get data and analysis on thousands of funds and stocks, instead of a small number as with Motley Fool newsletters. I don't follow Morningstar regularly anymore, instead I use it for research when I need to pick funds in a 401k or whatever. Another caveat on Morningstar is that the \"\"star ratings\"\" on funds are dumb. Look at the Analyst Picks and the analyst writeups instead. I just flipped through my RSS reader and I have 20-30 finance-related blogs in there collecting unread posts. It looks like the only one I regularly read is http://alephblog.com/ which is sort of random. But I find David Merkel very thoughtful and interesting. He's also a conservative without being a partisan hack, and posts frequently. I read the weekly market comment at http://hussmanfunds.com/ as well. Most weeks it says the market is overvalued, so that's predictable, but the interesting part is the rationale and the other ideas he talks about. I read a lot of software-related blogs and there's some bleed into finance, especially from the VC world; blogs like http://www.avc.com/ or http://bhorowitz.com/ or whatever. Anyway I spend most of my reading time on career-related stuff and I think this is also the correct decision from a financial perspective. If you were a doctor, you'd be better off reading about doctoring, too. I read finance-related books fairly often, I guess there are other threads listing ideas on that front. I prefer books about principles rather than a barrage of daily financial news and questionable ideas. Other than that, I keep up with headlines, just reading the paper every day including business-related topics is good enough. If there's some big event in the financial markets, it'll show up in the regular paper. Take a class I initially learned about finance by reading a pile of books and alongside that taking the CFP course and the first CFA course. Both are probably equivalent to about a college semester worth of work, but you can plow through them in a couple months each if you focus. You can just do the class (and take the exam if you like), without having to go on and actually get the work experience and the certifications. I didn't go on to do that. This sounds like a crazy thing to do, and it kind of is, but I think it's also sort of crazy to expect to be competent on a topic without taking some courses or otherwise getting pretty deep into the material. If you're a normal person and don't have time to take finance courses, you're likely better off either keeping it super-simple, or else outsourcing if you can find the right advisor: What exactly can a financial advisor do for me, and is it worth the money? When it's inevitably complex (e.g. as you approach retirement) then an advisor is best. My mom is retiring soon and I found her a professional, for example. I like having a lot of knowledge myself, because it's just the only way I could feel comfortable. So for sure I understand other people wanting to have it too. But what I'd share from the other side is that once you have it, the conclusion is that you don't have enough knowledge (or time) to do anything fancy anyway, and that the simple answers are fine. Check out http://www.amazon.com/Smart-Simple-Financial-Strategies-People/dp/0743269942 Investing for fun isn't investing for profit Many people recommend Motley Fool (I see two on this question already!). The site isn't evil, but the problem (in my opinion) is that it promotes an attitude toward and a style of investing that isn't objectively justifiable for practical reasons. Essentially I don't think optimizing for making money and optimizing for having fun coexist very well. If investing is your chosen hobby rather than fishing or knitting, then Motley Fool can be fun with their tone and discussion forums, but other people in forums are just going to make you go wrong money-wise; see behavioral finance research again. Talking to others isn't compatible with ice in your decision-making veins. Also, Motley Fool tends to pervasively make it sound like active investing is easier than it is. There's a reason the Chartered Financial Analyst curriculum is a few reams of paper plus 4 years of work experience, rather than reading blogs. Practical investing (\"\"just buy the target date fund\"\") can be super easy, but once you go beyond that, it's not. I don't really agree with the \"\"anyone can do it and it's not work!\"\" premise, any more than I think that about lawyering or doctoring or computer programming. After 15 years I'm a programming expert; after some courses and a lot of reading, I'm not someone who could professionally run an actively-managed portfolio. I think most of us need to have the fun part separate from the serious cash part. Maybe literally distinct accounts that you keep at separate brokerages. Or just do something else for fun, besides investing. Morningstar has this problem too, and finance.yahoo.com, and Bloomberg, I mean, they are all interested in making you think about investing a lot more than you ought to. They all have an incentive to convince you that the latest headlines make a difference, when they don't. Bottom line, I don't think personal finance changes very quickly; the details of specific mutual funds change, and there's always some new twist in the tax code, but the big picture is pretty stable. I think going in-depth (say, read the Chartered Financial Analyst curriculum materials) would teach you a lot more than reading blogs frequently. The most important things to work on are income (career) and spending (to maximize income minus spending). That's where time investment will pay off. I know it's annoying to argue the premise of the question rather than answering, but I did try to mention a couple things to read somewhere in there ;-)\"",
"title": ""
},
{
"docid": "d6a9e0f25e6a651144af61739899b4ea",
"text": "Here's a link with comparison of various online and offline PF software: http://personalfinancesoftwarereviews.com/compare-personal-finance-software/",
"title": ""
},
{
"docid": "b33b239d31da5096123862b83c6b75f3",
"text": "By extending your logic both BNSF and GEICO would be nearly thhe same companies as both have majority ownership of warren buffet. How companies act IS defined by the theater of competition and regulation. Sears ca and US are two very different companies with no operational overlap (other than sears brand name)",
"title": ""
}
] |
fiqa
|
341f0b0def2f3bb0aea783b9257a6cb8
|
Why does Yahoo! Finance report different prices for the same index?
|
[
{
"docid": "a071d6e3e0b14da2a3a72b374d496658",
"text": "\"Are you sure you're using the same date range? If you're using Max, then you're not, as ^FTMC goes back to 12/1/1985 while ^GDAXI only goes back to 11/1/1990. If I enter a custom date range of 11/1/1990 through 10/24/2015, I get: and: which, other than the dates it chose to use as labels on the x-axes, look identical. (I tried to add the URLs of the charts, but it looks like the Yahoo! URLs don't include the comparison symbol, which makes them useless for this answer. They're easy enough to construct though, just add the secondary symbol using the Comparison button and set the date range using the calendar button.) On your PS, I don't know, as you can see by my charts it even chose different labels when the date ranges were identical (although at least it didn't scale different dates differently), so maybe it's trying to be \"\"smart\"\" and choose dates based on the total amount of data available for the primary symbol, which is different in the two cases.\"",
"title": ""
}
] |
[
{
"docid": "cd32495b2fc65a7b03e82757110cf866",
"text": "\"The CBOE states, in an investor's guide to Interest Rate Options: The Options’ Underlying Values Underlying values for the option contracts are 10 times the underlying Treasury yields (rates)— 13-week T-bill yield (for IRX), 5-year T-note yield (for FVX), 10-year T-note yield (for TNX) and 30-year T-bond yield (for TYX). The Yahoo! rate listed is the actual Treasury yield; the Google Finance and CBOE rates reflect the 10 times value. I don't think there's a specific advantage to \"\"being contrary\"\", more likely it's a mistake, or just different.\"",
"title": ""
},
{
"docid": "e5488cb152533b6023509b909b183eec",
"text": "If you're interested in slower scale changes, one option is to use indexes that value a common commodity in different currencies such as the Big Mac Index. If a Big Mac costs more in AUD but stays the same in USD, then AUD have gone up.",
"title": ""
},
{
"docid": "91ac8519ecdfef7fe122c4fde90a549d",
"text": "\"Note that an index fund may not be able to precisely mirror the index it's tracking. If enough many people invest enough money into funds based on that index, there may not always be sufficient shares available of every stock included in the index for the fund to both accept additional investment and track the index precisely. This is one of the places where the details of one index fund may differ from another even when they're following the same index. IDEALLY they ought to deliver the same returns, but in practical terms they're going to diverge a bit. (Personally, as long as I'm getting \"\"market rate of return\"\" or better on average across all my funds, at a risk I'm comfortable with, I honestly don't care enough to try to optimize it further. Pick a distribution based on some stochastic modelling tools, rebalance periodically to maintain that distribution, and otherwise ignore it. That's very much to the taste of someone like me who wants the savings to work for him rather than vice versa.)\"",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
},
{
"docid": "4d3ffd2c72c84f436a8e2fad96f98f66",
"text": "The companies which define the major indexes do not derive profit directly from the indexes. They are typically brokerages, which use the indexes as a tool for discussing investment options with their clients and as a publicity tool to remind the public that they are long-standing, respected firms whom we might want to consider working with. Can't mention the Dow without being reminded of Dow Jones, for example. Likewise the Standard & Poor's 500 reminds us that S&P is still going strong. There may also be some slight market manipulation opportunities in choosing which specific stocks are included in each index, but since investors rarely follow an index exactly as originally defined I'm not convinced that's significant. And the mix included in each index changes relatively rarely and has to be justified by what the index claims to be representing.",
"title": ""
},
{
"docid": "6cc2004c5e485e8d2544ea370bc1f2dc",
"text": "So basically they are trying to see two things. One is whether prices are correlated to each other for long periods of time as a preliminary study suggested (which would go against efficient markets hypothesis, since you could use that info to game the market) or if that result is illusory and the long term returns are close to a standard normal distribution which would follow the effiecient markets hypo. The second thing I don't follow as well, but they're trying to solve the first thing so that they can then look at why, when they look at returns at different time scales, (1minute, one hour, one week), the model which had been proposed for these returns is not supported by the data (the first thing). They say that the old model (Levy) says that the variability should not be the same at the different time scales, but the data suggests that it is. So they then propose a modification of the old Levy model, and say that it would also explain the strange first result they looked at. (that prices are correlated for longer periods). That probably doesn't make any sense, but you might have more luck by posting in /r/statistics.",
"title": ""
},
{
"docid": "3bf4513d6e76ed2e63e58c4b9760adbe",
"text": "On NASDAQ the ^ is used to denote other securities and / to denote warrents for the underlying company. Yahoo maybe using some other designators for same.",
"title": ""
},
{
"docid": "ad0a217c2532cb01456a088330002756",
"text": "\"I expect that data may be copyright. Data that's published (e.g. on a newsfeed or web site) is subject to terms of use. Standard & Poor's web site says, about the Shiller indexes, Who do I contact at S&P to license my use of these indices? Questions regarding licensing the S&P/Case-Shiller Home Price Indices can be addressed to: Bo Chung Managing Director bo_chung@standardandpoors.com, +1.212.438.3519 As for 'recording' the information yourself, that may depend on how and where (e.g. from what source) you're recording it. If for example you tried to record prices from the Canadian MLS (Realtor's) network, they too have their own terms of use on the data they publish. Copyright laws vary from country to country (and terms of use certainly vary): for example see http://en.wikipedia.org/wiki/Feist_v._Rural which is case law about copyrighting a phone directory in the USA, and contrast that with http://en.wikipedia.org/wiki/Database_right which is European legislation. So who owns data if it is determined by free market? I guess that \"\"determined by free market\"\" means that buyers and sellers are publishing their offers-to-buy and their offers-to-sell, and I guess that the publisher (e.g. the stock exchange) has 'terms of use' about the data (the offers) that they're publishing.\"",
"title": ""
},
{
"docid": "6d2bbe8026eb8335cb86b52eee7df766",
"text": "\"For the S&P and many other indices (but not the DJIA) the index \"\"price\"\" is just a unitless number that is the result of a complicated formula. It's not a dollar value. So when you divide said number by the earnings/share of the sector, you're again getting just a unitless number that is incomparable to standard P-E ratios. In fact, now that I think about, it kinda makes sense that each sector would have a similar value for the number that you're computing, since each sector's index formula is presumably written to make all the index \"\"price\"\"s look similar to consumers.\"",
"title": ""
},
{
"docid": "67fe7636e0ee67c732c363fae29c6bef",
"text": "That is true. You will not be able to reconstruct the value of the index from the data returned with this script. I initially wrote this script because I wanted data for a lot of stocks and I wanted to perform PCA on the stocks currently included in the index.",
"title": ""
},
{
"docid": "fd85d07d09d329585823370209e3755a",
"text": "\"I may be underestimating your knowledge of how exchanges work; if so, I apologize. If not, then I believe the answer is relatively straightforward. Lets say price of a stock at time t1 is 15$ . There are many types of price that an exchange reports to the public (as discussed below); let's say that you're referring to the most recent trade price. That is, the last time a trade executed between a willing buyer and a willing seller was at $15.00. Lets say a significant buy order of 1M shares came in to the market. Here I believe might be a misunderstanding on your part. I think you're assuming that the buy order must necessarily be requesting a price of $15.00 because that was the last published price at time t1. In fact, orders can request any price they want. It's totally okay for someone to request to buy at $10.00. Presumably nobody will want to sell to him, but it's still a perfectly valid buy order. But let's continue under the assumptions that at t1: This makes the bid $14.99 and the ask $15.00. (NYSE also publishes these prices.) There aren't enough people selling that stock. It's quite rare (in major US equities) for anyone to place a buy order that exceeds the total available shares listed for sale at all prices. What I think you mean is that 1M is larger than the amount of currently-listed sell requests at the ask of $15.00. So say of the 1M only 100,000 had a matching sell order and others are waiting. So this means that there were exactly 100,000 shares waiting to be sold at the ask of $15.00, and that all other sellers currently in the market told NYSE they were only willing to sell for a price of $15.01 or higher. If there had been more shares available at $15.00, then NYSE would have matched them. This would be a trigger to the automated system to start increasing the price. Here is another point of misunderstanding, I think. NYSE's automated system does not invent a new, higher price to publish at this point. Instead it simply reports the last trade price (still $15.00), and now that all of the willing sellers at $15.00 have been matched, NYSE also publishes the new ask price of $15.01. It's not that NYSE has decided $15.01 is the new price for the stock; it's that $15.01 is now the lowest price at which anyone (known to NYSE) is willing to sell. If nobody happened to be interested in selling at $15.01 at t1, but there were people interested in selling at $15.02, then the new published ask would be $15.02 instead of $15.01 -- not because NYSE decided it, but just because those happened to be the facts at the time. Similarly, the new bid is most likely now $15.00, assuming the person who placed the order for 1M shares did not cancel the remaining unmatched 900,000 shares of his/her order. That is, $15.00 is now the highest price at which anyone (known to NYSE) is willing to buy. How much time does the automated system wait to increment the price, the frequency of the price change and by what percentage to increment etc. So I think the answer to all these questions is that the automated system does none of these things. It merely publishes information about (a) the last trade price, (b) the price that is currently the lowest price at which anyone has expressed a willingness to sell, and (c) the price that is currently the highest price at which anyone has expressed a willingness to buy. ::edit:: Oh, I forgot to answer your primary question. Can we estimate the impact of a large buy order on the share price? Not only can we estimate the impact, but we can know it explicitly. Because the exchange publishes information on all the orders it knows about, anyone tracking that information can deduce that (in this example) there were exactly 100,000 shares waiting to be purchased at $15.00. So if a \"\"large buy order\"\" of 1M shares comes in at $15.00, then we know that all of the people waiting to sell at $15.00 will be matched, and the new lowest ask price will be $15.01 (or whatever was the next lowest sell price that the exchange had previously published).\"",
"title": ""
},
{
"docid": "fc995ec5e7c0691a5351985999c81cc2",
"text": "For stock splits, let's say stock XYZ closed at 100 on February 5. Then on February 6, it undergoes a 2-for-1 split and closes the day at 51. In Yahoo's historical prices for XYZ, you will see that it closed at 51 on Feb 6, but all of the closing prices for the previous days will be divided by 2. So for Feb 5, it will say the closing price was 50 instead of 100. For dividends, let's say stock ABC closed at 200 on December 18. Then on December 19, the stock increases in price by $2 but it pays out a $1 dividend. In Yahoo's historical prices for XYZ, you will see that it closed at 200 on Dec 18 and 201 on Dec 19. Yahoo adjusts the closing price for Dec 19 to factor in the dividend.",
"title": ""
},
{
"docid": "bd36cc84ea10cfdc1920099d015b5085",
"text": "Why don't you look at the actual funds and etfs in question rather than seeking a general conclusion about all pairs of funds and etfs? For example, Vanguard's total stock market index fund (VTSAX) and ETF (VTI). Comparing the two on yahoo finance I find no difference over the last 5 years visually. For a different pair of funds you may find something very slightly different. In many cases the index fund and ETF will not have the same benchmark and fees so comparisons get a little more cloudy. I recall a while ago there was an article that was pointing out that at the time emerging market ETF's had higher fees than corresponding index funds. For this reason I think you should examine your question on a case-by-case basis. Index fund and ETF returns are all publicly available so you don't have to guess.",
"title": ""
},
{
"docid": "26e829b6a7db54e5cf3756d79e49b8d8",
"text": "Should be noted that pacoverflow's answer is wrong. Yahoo back-adjusts all the previous (not current or future) values based on a cumulative adjustment factor. So if there's a dividend ex-date on December 19, Yahoo adjusts all the PREVIOUS (December 18 and prior) prices with a factor which is: 1 - dividend / Dec18Close",
"title": ""
},
{
"docid": "214445bd7aa7f6195f71f07ccf8b2df9",
"text": "that's just it, though - they are splitting up the 1%! and in most cases, especially vanguard, they are splitting up far less. ETFs don't have 12b-1 fees. explaining why you're experiencing different returns for ETFs will almost certainly involve something other than their expense. again, this is especially true for vanguard. they have the cheapest ETFs around (though i think schwab beats them on a few now). i can only guess at the full compensation structure. betterment likely earns money on cash reserves and securities hypothecation (i guess?). they also charge a small fee from what i understand. finance is very slim these days. i guess i'm wondering what your ultimate question is. if it's the inter corporate compensation structure, above is my best guess. if it's about performance, then we need to compare the ETFs you are looking at. if it's about the fees on funds, i think we covered that! as an advisor, it's my experience that very specific inquiries about fees have a deeper concern. people hear a lot about being overcharged so cost is a very standard place for clients to initially look when trying to compare performance of portfolios or securities.",
"title": ""
}
] |
fiqa
|
af882f058733cea220ef36d5600f9580
|
Money Saved on finance charges
|
[
{
"docid": "d8d93091dc67ea4428fab885a4701634",
"text": "Avoiding a cost (interest) isn't quite the same as income. There is no entry, nothing for you to consider for this avoided interest. What you do have is an expense that's no longer there, and you can decide to use that money elsewhere each month.",
"title": ""
}
] |
[
{
"docid": "cfe8e9dcb52bd41dc17b6d7e41bd1ca0",
"text": "Probably not. A debit of 50K in your Bank statement does not mean that its invested into tax saving instrument. This question is best answered by the finance department of your company. Practise vary from organization to organization.",
"title": ""
},
{
"docid": "a5c55a0be58149978b91ecb8eba52a1b",
"text": "To get a good estimate, go here or other similar sites and see. But basically, yes, you can save yourself a whole lot of money just by paying extra every month. One note though, do make sure you are specifying that you want the money to go towards principal, not escrow or toward prepaying interest.",
"title": ""
},
{
"docid": "6af47f17f6fd97f28d4f350a19f7d229",
"text": "The answer to question 1 is yes, you can always reduce your loan when you remortgage by introducing additional funds. There is some possibility a (relatively) small charge might be applicable for managing the marginally more complex transfer, but it shouldn't be too much.. The answer to question 2 is NONE of your over payment amounts would have gone on interest, but you MIGHT incur penalty charges. Interest is only charged on the outstanding loan amount (i.e. £100K initially, reducing to £85K over 2 years in your example) at the interest rate determined by your mortgage agreement - there is no 'paying off interest' as such. Over payments are essentially all capital payments, reducing the principal/loan amount, so no additional interest would be paid if you opted for over payments. If you used your £10K to made the over payments throughout the 2 year fixed period you would in fact have paid LESS interest by the end of the 2 years, because you would be reducing the loan amount at a quicker rate, and thus the interest you pay each month (based on the lower outstanding loan at that time) would be lower. BUT... over payments might have attracted over payment penalties (typically a percentage of the amount you pay) and these penalties often mean it's not worth doing. Most fixed term mortgages have such penalties, but it depends on the agreement, and many mortgages also allow you to make over payments up to a certain amount each year before you get hit. Edit (additional suggestion): If the example you provide is one based on what you expect might happen to you over the next couple of years, something you could CONSIDER is an offset mortgage. Here your £10K that you accumulate reduces your interest through the 2 years, but you keep it in savings where you can access it if you need to. Accessing it will then cause a corresponding rise in interest payments, but to no higher level than you would have been paying if you had nothing in the savings in the first place. You usually pay a slightly higher interest rate for these sort of mortgage, so it's impossible to know if it would be more economical, and how appropriate it would be for you in other respects depends on many factors.",
"title": ""
},
{
"docid": "74084c4b8cc6c6fa4d9e432f6e43764e",
"text": "It really depends on the terms of your loan. For example, some loans have a pre-payment penalty. You will just have to ask your lender to know for sure. That said. In almost all cases, you can save considerable interest by making extra payments towards the principal. Be careful though, some lenders require you to specifically mark the payment to be applied to the loan principal and if you don't designate it as such, they will just apply it as an early payment for future months and not reduce your balance until that future payment is due, which doesn't help at all. Another option to reduce your total interest costs, though more common for larger loans like mortgages, is to split the payment into multiple parts and pay more than once a month instead of a single payment each month. This only works if they calculate interest daily and would be useless if they do it monthly. They key is knowing the terms of your loan. Despite it not being in their best interest (pun intended), most lenders will work with you on a strategy to help you minimize the interest cost in the name of customer service.",
"title": ""
},
{
"docid": "faf9f9e338f01e03d85205250f7a0f20",
"text": "\"You're looking at the \"\"wrong\"\" credit. Here's the Wikipedia article about the bookkeeping (vs the Finance, that you've quoted) term.\"",
"title": ""
},
{
"docid": "e31d8c3f836d3ec8d604107df90b5081",
"text": "For the purpose of personal finance, treating $500 as Interest Expense is sufficient. For business accounting, it involves making the $500 a contra-liability and amortizing it as interest expense over the course of life of the loan.",
"title": ""
},
{
"docid": "c2e80c349518ee93dd52768ec917fa84",
"text": "I would take each of these items and any others and consider how you would count it as an expense in the other direction. If you have an account for parking expenses or general transportation funds, credit that account for a refund on your parking. If you have an account for expenses on technology purchases, you would credit that account if you sell a piece of equipment as you replace it with an upgrade. If you lost money (perhaps in a jacket) how would you account for the cash that is lost? Whatever account would would subtract from put a credit for cash found.",
"title": ""
},
{
"docid": "84a58fcc7c13404d5abcb07c7a8c7219",
"text": "IRS Publication 502: Medical expenses are the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body. Loan interest and fees do not meet this definition. Your loan interest and fees are a cost of the payment method you chose (a loan), not a cost of medical treatment. The IRS makes clear where loan interest is deductible. Publication 936 discusses home mortgage interest deductions, and Publication 970 specifically discusses student loan interest deductions. Considering Publication 502's definition of a medical expense, combined with the absence of a publication discussing medical expense loan interest deductions, one must conclude that medical loan interest and fees are not deductible.",
"title": ""
},
{
"docid": "1d799c3133fcb24c4d751bc73e760e3d",
"text": "\"Lachlan has $600 cash and a car worth $500. That's $1,100. The new car is priced at $21,800. Lachlan needs a loan for $20,700. However, the finance company insists that the buyer must pay a 10% deposit, which is $2,180. Lachlan only has $1,100, so no loan. The car dealer wants to make a sale, so suggests some tricks. The car dealer could buy Lachlan's old banger for $1,500 instead of $500, and sell the new car for $22,800 instead of $21,800. Doesn't make a difference to the dealer, he gets the same amount of cash. Now Lachlan has $600 cash and $1,500 for his car or $2,100 in total. He needs 10% of $22,800 as deposit which is $2,280. That's not quite there but you see how the principle works. Lachlan is about $200 short. So the dealer adds $1,200 to both car prices. Lachlan has $600 cash and a car \"\"worth\"\" $1,700, total $2,300. The new car is sold for $23,000 requiring a $2,300 deposit which works out exactly. How could we have found the right amount without guessing? Lachlan had $1,100. The new car costs $21,800. The dealer increases both prices by x dollars. Lachlan has now $1,100 + x deposit. The car now costs $21,800 + x. The deposit should be 10%, so $1,100 + x = 10% of ($21,800 + x) = $2,180 + 0.1 x. $1,100 + x = $2,180 + 0.1 x : Subtract $1,100 x = $1,080 + 0.1 x : Subtract 0.1 x 0.9 x = $1,080 : Divide by 0.9 x = $1,080 / 0.9 = $1,200 The dealer inflates the cost of the new car and the value of the old car by $1,200. Now that's the theory. In practice I don't know how the finance company feels about this, and if they would be happy if they found out.\"",
"title": ""
},
{
"docid": "6724e21772c00e77a51192829255d57e",
"text": "So hopefully you are not spending the money before you make it. If you are, you are asking for trouble. If not the solution is easy. If you use a spreadsheet for tracking have a item in your checking account running total that is simply CC to pay. Lets say you just got paid, and your balance is like this: You can then do virtual withdrawals for each category In this case you have 70 left to spend. Whoops the car gets a flat which costs you 5 that you put on the card and you also pay your rent by CC. Then your spreadsheet should look like this: You still have the 70 left to spend, and when the CC bill comes due you are free to write the check.",
"title": ""
},
{
"docid": "68951b4c12af986332c0bdd35a0d268e",
"text": "This will not result in any finance charges: I wouldn't recommend cutting it quite so close, but as long as you pay the full balance as shown on each statement by the due date shown on that same statement, you won't incur a finance charge. Of course this only applies in the case of ordinary purchases that have a grace period.",
"title": ""
},
{
"docid": "ff8f7a486adf61b296339b15fb9d2700",
"text": "Thanks for that, it did help. I think my issue is I don't work in finance itself, I'm a lawyer, and 'capital' generally has a very specific meaning in English company law, where it refers exclusively to shareholder capital. I realise capital in finance terms includes both debt and equity investment.",
"title": ""
},
{
"docid": "a2d54102c2d480f7adc795284fb66e01",
"text": "So if someone would invest 14000 credits on 1st April 2016, he'd get monthly dividend = ((14000 ÷ 14) × 0.0451) × (1 - 1.42 ÷ 100) = 44.459 credits, right? One would get ((14000 ÷ 14) × 0.0451) = 45.1 is what you would get. The expenses are not to be factored. Generally if a scheme has less expense ratio, the yield is more. i.e. this has already got factored in 0.0451. If the expense ratio was less, this would have been 0.05 if expense ration would have been more it would have been 0.040. Can I then consider the bank deposit earning a higher income per month than the mutual fund scheme? As the MIP as classified as Hybrid funds as they invest around 30% in equities, there is no tax on the income. More so if there is a lock-in of 3 years. In Bank FD, there would be tax applicable as per tax brackets.",
"title": ""
},
{
"docid": "459f2b37e547afbe10ef09522529d1d6",
"text": "The best way is to retain the charge slips. After you are done for the month you can discard them. Alternatively if you are using any of the personal finance tool or a simple XLS to track exepnses, it would be easy to figure out what you actually spent and what was not yours.",
"title": ""
},
{
"docid": "06db9794964fa3e19362d98a36016b50",
"text": "You first compute your Ordinary Income (which includes Dividends, since they are taxed as OI), then you apply the standard tax bracket function to it, which is a piecewise linear function f() such that TAX = f(INCOME). It can be found at About.com. You can transform this into NET_INCOME = g(INCOME) = INCOME - TAX = INCOME - f(INCOME). Presumably g() is what you want to graph. I've actually graphed it before: Not too interesting, even on a LogLog scale. More interesting is the marginal tax rate, which is the derivative of f(), or the negative of the derivative of g(): ST (straight tax) shows what the marginal tax rate would look like if f() was just f(x)=kx or f(x)=kx+c, i.e. a straight/flat tax. The net tax rate (f(x)/x) actually gets more interesting if you also include [federal subsidies/deductions](Src: http://fbheron.org/wp-content/uploads/2014/03/fedassistance_ft.jpg) as a negative tax: Capital Gains are taxed separately and have (almost) nothing to do with this function. Corporate tax is not payed by you (although the burden of the tax [technical term] may fall upon you). Sorry I couldn't simplify; taxes are just complicated.",
"title": ""
}
] |
fiqa
|
2ebc412b29fab465c80c68d922b20c2d
|
Is there a finance API of some kind to get all holdings for a specific mutual fund?
|
[
{
"docid": "efebd66b19b609175d94d25078c301d4",
"text": "Generally, the answer to the availability of holdings of a given mutual fund on a daily basis is no. Thus, an API is non-existent. The reasons for the lack of transparency on a daily basis is that it could/would impact the portfolio managers ability to trade. While this information would not necessarily permit individuals from front running the fund manager's trades, it does give insight in to the market outlook and strategy the fund is employing. The closest you'll be able to get to obtaining a list of holdings is by reading the most recent annual report and the quarterly filings each fund is required to file with the SEC.",
"title": ""
}
] |
[
{
"docid": "47d2401e8c9dcd835a24ea517a73bda6",
"text": "I've seen this tool. I'm just having a hard time finding where I can just get a list of all the companies. For example, you can get up to 100 results at a time, if I just search latest filings for 10-K. This isn't really an efficient way to go about what I want.",
"title": ""
},
{
"docid": "77910cb1a35f144cf084c07e12dd9ba9",
"text": "I am mostly interested in day to day records, and would like the data to contain information such as dividend payouts, and other parameters commonly available, such as on : http://finviz.com/screener.ashx ... but the kind of queries you can do is limited. For instance you can only go back two years.",
"title": ""
},
{
"docid": "fe41bd844ccdd880ae9b1f59abe82487",
"text": "\"Google Finance certainly has data for Tokyo Stock Exchange (called TYO on Google) listings. You could create a \"\"portfolio\"\" consisting of the stocks you care about and then visit it once per day (or write a script to do so).\"",
"title": ""
},
{
"docid": "e7d69cf99658362327bc6de5f7648fe1",
"text": "The big websites, Yahoo and the like, only give the 10 biggest positions of any fund. Download the annual report of the fund, go to page 18, you will find the positions on the 31st of December. However the actual positions could be different. The same applies to all funds. You need the annual report.",
"title": ""
},
{
"docid": "84684ca8001220b80db21a461e7b2e21",
"text": "You won't be able to know the trading activity in a timely, actionable method in most cases. The exception is if the investor (individual, fund, holding company, non-profit foundation, etc) is a large shareholder of a specific company and therefore required to file their intentions to buy or sell with the SEC. The threshold for this is usually if they own 5% or greater of the outstanding shares. You can, however, get a sense of the holdings for some of the entities you mention with some sleuthing. Publicly-Traded Holding Companies Since you mention Warren Buffett, Berkshire Hathaway is an example of this. Publicly traded companies (that are traded on a US-based exchange) have to file numerous reports with the SEC. Of these, you should review their Annual Report and monitor all filings on the SEC's website. Here's the link to the Berkshire Hathaway profile. Private Foundations Harvard and Yale have private, non-profit foundations. The first place to look would be at the Form 990 filings each is required to file with the IRS. Two sources for these filings are GuideStar.org and the FoundationCenter.org. Keep in mind that if the private foundation is a large enough shareholder in a specific company, they, too, will be required to file their intentions to buy or sell shares in that company. Private Individuals Unless the individual publicly releases their current holdings, the only insight you may get is what they say publicly or have to disclose — again, if they are a major shareholder.",
"title": ""
},
{
"docid": "24fcd3eab5757b282f1b5f2589ff03ef",
"text": "\"I have some money invested on Merrill Edge. 2 days ago I purchased some mutual funds with most of the rest of my money in my account. I logged in today to see how it did, and noticed that there are 3 sections: Priced Investments, Cash & Money Accounts, and Pending Activity. In the Cash & Money section, there shows a negative balance of Cash (let's say -$1,000) and a positive \"\"Money Account Value\"\" (let's say +$1,100). The \"\"Money Account\"\" appears to be made up of $1 shares of something called \"\"ML Direct Deposit Program\"\". However, even though the mutual fund purchase was made 2 days ago, and the shares of the mutual funds are officially in my account, I'm still showing all of my \"\"Money Account\"\" shares ($1000). The balance sheet effectively makes it look like I somehow needed to have \"\"sold\"\" back my money account shares, converted them to cash, and then bought the funds. I'm hoping that isn't the case, and for some reason, there is a multiday lag between me buying stock and money getting deducted from my \"\"Money Account\"\". Hope that all makes sense. TLDR: what's the diff between a Cash account and Money Account that's filled with shares of \"\" ML Direct Deposit Program\"\"? Edit: Today the cash and money account offset by equal values equal to one of my mutual fund purchases.\"",
"title": ""
},
{
"docid": "76e622fc225406dbd70fb144752364dc",
"text": "\"You could use any of various financial APIs (e.g., Yahoo finance) to get prices of some reference stock and bond index funds. That would be a reasonable approximation to market performance over a given time span. As for inflation data, just googling \"\"monthly inflation data\"\" gave me two pages with numbers that seem to agree and go back to 1914. If you want to double-check their numbers you could go to the source at the BLS. As for whether any existing analysis exists, I'm not sure exactly what you mean. I don't think you need to do much analysis to show that stock returns are different over different time periods.\"",
"title": ""
},
{
"docid": "6e1a49099026facd9c7a976bb9804035",
"text": "I searched for FTSE 100 fund on Yahoo Finance and found POW FTSE RAF UK 100 (PSRU.L), among many others. Google Finance is another possible source that immediately comes to mind.",
"title": ""
},
{
"docid": "036efd53242c21af7fc7cf45d6feb582",
"text": "Mutual funds are only traded once per day, while other securities can be traded any time during the day. Mutual funds are actually a collection of other things that have value, such as stocks. The price of a mutual fund is calculated at the end of the day after the market closes by looking at how much the collection of things changed in value during the day.",
"title": ""
},
{
"docid": "5a4a9d5252e6accab3df197c05881df3",
"text": "If you are looking for a European financials ETF to short, you could take a look at the iShares EURO STOXX Banks, which is traded on a a few German stock exchanges (Frankfurt etc.): iShares Euro Stoxx Banks Website You find its current holdings here: holdings.",
"title": ""
},
{
"docid": "364a2c6a6b09a7ef1e8b5460a85ef642",
"text": "The recommended way to track TSP funds in online portfolio tools is to track the underlying index and know that the results are pretty close. Not a perfect solution: :( Source including suggested ETFs: http://finance.yahoo.com/news/breaking-down-tsp-investment-funds-194600393.html Related, but not exactly what you are looking for, Personal Capital will track your TSP holdings: http://themilitarywallet.com/manage-thrift-savings-plan/",
"title": ""
},
{
"docid": "addd6d0058b349d933d1b3d1f50e168e",
"text": "Here is a list to Yahoo! Finance API. Not sure how much longer this will be support though: https://code.google.com/p/yahoo-finance-managed/wiki/YahooFinanceAPIs",
"title": ""
},
{
"docid": "402212bfb569a8f87f74352254c9928e",
"text": "Yahoo's primary business isn't providing mutual fund performance data. They aim to be convenient, but often leave something to be desired in terms of completeness. Try Morningstar instead. Their mission is investment research. Here's a link to Morningstar's data for the fund you specified. If you scroll down, you'll see:",
"title": ""
},
{
"docid": "4e2f45c23e571baea4581cfc708711d9",
"text": "\"For any accounts where you have a wish to keep track of dividends, gains and losses, etc., you will have to set up a an account to hold the separately listed securities. It looks like you already know how to do this. Here the trading accounts will help you, especially if you have Finance:Quote set up (to pull security prices from the internet). For the actively-managed accounts, you can just create each managed account and NOT fill it with the separate securities. You can record the changes in that account in summary each month/year as you prefer. So, you might set up your chart of accounts to include these assets: And this income: The actively-managed accounts will each get set up as Type \"\"Stock.\"\" You will create one fake security for each account, which will get your unrealized gains/losses on active accounts showing up in your trading accounts. The fake securities will NOT be pulling prices from the internet. Go to Tools -> Securities Editor -> Add and type in a name such as \"\"Merrill Lynch Brokerage,\"\" a symbol such as \"\"ML1,\"\" and in the \"\"Type\"\" field input something like \"\"Actively Managed.\"\" In your self-managed accounts, you will record dividends and sales as they occur, and your securities will be set to get quotes online. You can follow the general GnuCash guides for this. In your too-many-transactions actively traded accounts, maybe once a month you will gather up your statements and enter the activity in summary to tie the changes in cost basis. I would suggest making each fake \"\"share\"\" equal $1, so if you have a $505 dividend, you buy 505 \"\"shares\"\" with it. So, you might have these transactions for your brokerage account with Merrill Lynch (for example): When you have finished making your period-end summary entries for all the actively-managed accounts, double-check that the share balances of your actively-managed accounts match the cost basis amounts on your statements. Remember that each fake \"\"share\"\" is worth $1 when you enter it. Once the cost basis is tied, you can go into the price editor (Tools -> Price Editor) and enter a new \"\"price\"\" as of the period-end date for each actively-managed account. The price will be \"\"Value of Active Acct at Period-End/Cost of Active Acct at Period-End.\"\" So, if your account was worth $1908 but had a cost basis of $505 on Jan. 31, you would type \"\"1908/505\"\" in the price field and Jan. 31, 2017 in the date field. When you run your reports, you will want to choose the price source as \"\"Nearest in Time\"\" so that GnuCash grabs the correct quotes. This should make your actively-managed accounts have the correct activity in summary in your GnuCash income accounts and let them work well with the Trading Accounts feature.\"",
"title": ""
},
{
"docid": "eec00fac4023bd89d4a52ab034993c41",
"text": "If you want to go far upstream, you can get mutual fund NAV and dividend data from the Nasdaq Mutual Fund Quotation Service (MFQS). This isn't for end-users but rather is offered as a part of the regulatory framework. Not surprisingly, there is a fee for data access. From Nasdaq's MFQS specifications page: To promote market transparency, Nasdaq operates the Mutual Fund Quotation Service (MFQS). MFQS is designed to facilitate the collection and dissemination of daily price, dividends and capital distributions data for mutual funds, money market funds, unit investment trusts (UITs), annuities and structured products.",
"title": ""
}
] |
fiqa
|
9e544280d1709d37b778655023e585b2
|
Relative Strength Index: Yahoo vs Google Finance
|
[
{
"docid": "0abcd449cae2ed7664022837ddd01ced",
"text": "\"Google's RSI is using a 10 period on 2 minute bars - i.e. it is based upon the last 20 minutes of data. Yahoo's RSI is using a 14 period lookback on an undetermined timeframe (you could maybe mouse-over and see what incremental part of the chart is giving) and given the \"\"choppier\"\" price chart, probably 30 second or 1 minute bars. Given the difference in both the period specified and the periodicity of the charts - you should expect different results.\"",
"title": ""
},
{
"docid": "51b119949722b2a428b636acee721e2d",
"text": "Look at the 'as of'. Google's as of is 11:27 whil Yahoo's is 11:19. Given the shape of the Google curve, it looks to me that Yahoo's may well drop that much in the next 8 minutes. In fact, looking at it now, Yahoo's algorithm showed it as about 30 at 11:24, before going back up again some. It may not have been identical to Google's, but it was certainly close.",
"title": ""
}
] |
[
{
"docid": "745af972c291ab920e3b2690a6d0ef9d",
"text": "Yes, it depends on the fund it's trying to mirror. The ETF for the S&P that's best known (in my opinion) is SPY and you see the breakdown of its holdings. Clearly, it's not an equal weighted index.",
"title": ""
},
{
"docid": "77709d67eb01b6301a7a4f77c3b801a8",
"text": "\"I went to Morningstar's \"\"Performance\"\" page for FUSEX (Fideltiy's S&P 500 index fund) and used the \"\"compare\"\" tool to compare it with FOSFX and FWWFX, as well as FEMKX (Fidelity Emerging Markets fund). According to the data there, FOSFX outperformed FUSEX in 2012, FEMKX outperformed FUSED in 2010, and FWWFX outperformed FUSEX in both 2010 and 2012. When looking at 10- and 15-year trailing returns, both FEMKX and FWWFX outperformed FUSEX. What does this mean? It means it matters what time period you're looking at. US stocks have been on an almost unbroken increase since early 2009. It's not surprising that if you look at recent returns, international markets will not stack up well. If you go back further, though, you can find periods where international funds outperformed the US; and even within recent years, there have been individual years where international funds won. As for correlation, I guess it depends what you mean by \"\"low\"\". According to this calculator, for instance, FOSFX and FUSEX had a correlation of about 0.84 over the last 15 years. That may seem high, but it's still lower than, say, the 0.91 correlation between FUSEX and FSLCX (Fideltiy Small Cap). It's difficult to find truly low correlations among equity funds, since the interconnectedness of the global economy means that bull and bear markets tend to spread from one country to another. To get lower correlations you need to look at different asset classes (e.g., bonds). So the answer is basically that some of the funds you were already looking at may be the ones you were looking for. The trick is that no category will outperform any other over all periods. That's exactly what volatility means --- it means the same category that overperforms in some periods will underperform in others. If international funds always outperformed, no one would ever buy US funds. Ultimately, if you're trying to decide on investments for yourself, you need to take all this information into account and combine it with your own personal preferences, risk tolerance, etc. Anecdotally, I recently did some simulation-based analyses of Vanguard funds using data from the past 15 years. Over this period, Vanguard's emerging markets fund (VEIEX) comes out far ahead of US funds, and is also the least-correlated with the S&P 500. But, again, this analysis is based only on a particular slice of time.\"",
"title": ""
},
{
"docid": "366110afc6c37433dbbd7d11fa1dd8a6",
"text": "If you use Google Finance, you will get incorrect results because Google Finance does not show the dividend history. Since your requirement is that dividends are re-invested, you should use Yahoo Finance instead, downloading the historical 'adjusted' price.",
"title": ""
},
{
"docid": "ea277e4ed379486c09e3bbc1d31fd249",
"text": "Your analysis is correct. The income statement from Google states that LinkedIn made $3.4 million in 2010 - the same number you backed into by using the P/E ratio. As you point out, the company seems overvalued compared to other mature companies. There are companies, however, that posts losses and still trade on exchanges for years. How should these companies be valued? As other posters have pointed out there are many different ways to value a company. Some investors may be speculating on substantial growth. Others may be speculating on IPO hype. Amazon did not make a profit until 2003. Its stock had been around for years before that and even split many times. If you bought the stock in 1998 and still have it you would be doing quite well.",
"title": ""
},
{
"docid": "5c815a65729347e19e3babaa7c24b264",
"text": "What a pointless list! It's ranked by total short interest outstanding. That's completely meaningless. For instance, a $1 billion company with $1 billion in shorts (meaning the market thinks it's bankrupt) would be ranked much better than a $100 billion company with $1.1 billion in short interest. tl;dr: pure and utter bullshit",
"title": ""
},
{
"docid": "9764ba3afd9210806de741e49eaf845a",
"text": "\"Google Docs spreadsheets have a function for filling in stock and fund prices. You can use that data to graph (fund1 / fund2) over some time period. Syntax: =GoogleFinance(\"\"symbol\"\", \"\"attribute\"\", \"\"start_date\"\", \"\"num_days|end_date\"\", \"\"interval\"\") where: This analysis won’t include dividends or distributions. Yahoo provides adjusted data, if you want to include that.\"",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
},
{
"docid": "5b00300f2a333c26c62eefd7a6367917",
"text": "When you look at the charts in Google Finance, they put the news on the right hand side. The time stamp for each news item is indicated with a letter in the chart. This often shows what news the market is reacting to. In your example: Clicking on the letter F leads to this Reuters story: http://www.reuters.com/article/2011/02/04/usa-housing-s-idUSWAT01486120110204",
"title": ""
},
{
"docid": "d94213b22892d8c0384ec8dfa260408f",
"text": "On Monday, the 27th of June 2011, the XIV ETF underwent a 10:1 share split. The Yahoo Finance data correctly shows the historic price data adjusted for this split. The Google Finance data does not make the adjustment to the historical data, so it looks like the prices on Google Finance prior to 27 June 2011 are being quoted at 10 times what they should be. Coincidentally, the underlying VIX index saw a sudden surge on the Friday (24 June) and continued on the Monday (27 June), the date that the split took effect. This would have magnified the bearish moves seen in the historic price data on the XIV ETF. Here is a link to an article detailing the confusion this particular share split caused amongst investors. It appears that Google Finance was not the only one to bugger it up. Some brokers failed to adjust their data causing a lots of confusion amongst clients with XIV holdings at the time. This is a recurring problem on Google Finance, where the historic price data often (though not always) fails to account for share splits.",
"title": ""
},
{
"docid": "a5c828411013510f191bb0f58be880db",
"text": "I'm not 100% familiar with the index they're using to measure hedge fund performance, but based on the name alone, comparing market returns to *market neutral* hedge fund returns seems a bit disingenuous. That doesn't mean the article is wrong, and they have a point about the democratization of data, but still.",
"title": ""
},
{
"docid": "fbcdc4709a26a75edae1f33af053105b",
"text": "This didn't answer his question. Also, while I agree with you that the Dow is meaningless (and your explanation why). In the investment industry, we don't only focus on the S&P Index.. Many have a specific benchmark they aim to outperform that matches their investment strategy (i.e. Russell Mid Cap Value, Russell 3000, etc.).",
"title": ""
},
{
"docid": "4e7195e30b812e86bb2533302a952026",
"text": "I agree with @Turukawa that the x-axes need to be the same to make a direct comparison. However, the graphs you linked make me think of introductory calculus: If you time averaged plots, speculative investments (gold, housing) seem to have many large concave up time periods and the dow jones has many concave down sections. Using the concavity test: If the first derivative tells you about the rate of change, the second derivative tells you about the rate of change of rate of change. Remember back to Physics 101: 1st derivative is velocity & second derivative is acceleration. It would be interesting to have the same time scales for your plots & compare these accelerations between the two. I suspect the more volatile investments would have larger (in magnitude) accelerations during boom/bust cycles than less speculative investments.",
"title": ""
},
{
"docid": "5c90ee4ba274fd55bd125b0bc0623285",
"text": "On closer look, it appears that Google Finance relies on the last released 10-k statement (filing date 10/30/2013), but outstanding shares as of last 10-Q statement. Using these forms, you get ($37,037M / 5.989B ) = $6.18 EPS. I think this is good to note, as you can manually calculate a more up to date EPS value than what the majority of investors out there are relying on.",
"title": ""
},
{
"docid": "c83ab56176a53cc349d933f86728f74c",
"text": "\"I use Google Finance too. The only thing I have problem with is dividend info which it wouldn't automatically add to my portfolio. At the same time, I think that's a lot to ask for a free web site tool. So when dividend comes, I manually \"\"deposit\"\" the dividend payment by updating the cash amount. If the dividend comes in share form, I do a BUY at price 0 for that particular stock. If you only have 5 stocks, this additional effort is not bad at all. I also use the Hong Kong version of it so perhaps there maybe an implementation difference across country versions. Hope this helps. CF\"",
"title": ""
},
{
"docid": "d3b2860b2a0cb99380d086fe2d4ba081",
"text": "Still working on exact answer to question....for now: (BONUS) Here is how to pull a graphical chart with the required data: Therefore: As r14 = the indicator for RSI. The above pull would pull Google, 6months, line chart, linear, large, with a 50 day moving average, a 200 day exponential moving average, volume, and followed up with RSI. Reference Link: Finance Yahoo! API's",
"title": ""
}
] |
fiqa
|
c2ab3875b49673a295fb57d5b4369723
|
Canadian personal finance software with ability to export historical credit card transactions?
|
[
{
"docid": "f87c338f0c7d65983f10fcf7c1043cc8",
"text": "Yodlee is the back-end which communicates with the banks, and Mint just provide a pretty layer on top. You can sign up for an account with Yodlee directly, which may give you the flexibility you need.",
"title": ""
},
{
"docid": "763b586d811fa6556c94d509dafdbe69",
"text": "\"Yodlee and Mint are good solutions if you don't mind your personal financial information being stored \"\"in the cloud\"\". I do, so I use Quicken. Quicken stores whatever you give to it for as long as you want: so the only question is how to get the credit card transactions you want into it? All my financial institutions allow me to view my credit card statements for a year back, and download them in a form Quicken can read. So you can have a record of your transactions from a year ago right now, and in a year you will have two year's worth.\"",
"title": ""
},
{
"docid": "ba960eb7f7436e5f3824be9fad756a02",
"text": "If you're willing to use OFX or QIF files, most Canadian banks can spit output more data than 90 days. The files are typically used to import into Quicken-like local programs, but can be easily parsed for your webapp, I imagine.",
"title": ""
}
] |
[
{
"docid": "b1bdb3370adf99f1ab0f40a9875ad800",
"text": "I use http://moneydance.com/ it has Mac, Windows and Linux versions and works well for my needs.",
"title": ""
},
{
"docid": "198cba582cbd5efbc4acd1da63d19d23",
"text": "You could try looking for a UK implementation of http://www.yodlee.com/ : Google tells me that http://www.lovemoney.com/ ( http://www.yodlee.com/2010_1_20.html ) is one such service. I use ANZ money manager - an Australian implementation of Yodlee and find it very useful. I wouldn't use Yodlee directly though (http://money-watch.co.uk/7197/uk-pfm-tool-review-yodlee-moneycenter) those T&Cs don't sound great.",
"title": ""
},
{
"docid": "c86cf4c13b5cedf554d0964b7b378467",
"text": "\"I use \"\"Money Manager Ex\"\" which is a Windows application I use on PC to log my transactions and for simple statistic. They have two versions, simple standlone application and self-hosted web app.\"",
"title": ""
},
{
"docid": "8acc504cb209517ea0de61366d0ec50e",
"text": "Not sure you are going to find anything like this in Excel - with the automatic lookup in specific. Microsoft has a template available; but it looks to be a pretty busy page. Why not look at other software? If you have a PC, Quicken and Microsoft Money are of course the big guns. You don't mention why you switched away from MS Money... There are many other packages as well. The one that I use (but have no other financial interest in) is Moneydance as it was the best on Mac at the time I was looking. It also runs on Windows and Linux.",
"title": ""
},
{
"docid": "2b86ec02925e05de918f7e9ac205d3e0",
"text": "Money Dashboard and Love Money look like two best options out there now that Kublax closed their doors. Mint were making noises last year about spreading to UK/Canada, but I've not heard anything new about that.",
"title": ""
},
{
"docid": "faef59d5875f40e992a989808dd55827",
"text": "Systems to research that may help you out: Less Accounting and Wave are great because they can import data from banks / credit cards. I know you said your bank doesn't export it but it seems like something as a small business you would want.",
"title": ""
},
{
"docid": "8586796e8d64cc6ebeb5ef6bc6cc0f27",
"text": "Yes and no, P2P Capital Markets is similar concept but is more geared towards business loans. Community Lend used to offer this service but has stopped.",
"title": ""
},
{
"docid": "402ec271c613a3c843f3a94542cfd8ec",
"text": "\"Parts of what you want are possible, but taken as a whole, you're out of luck. First of all, there is no master database of every cardholder in the country. The only way to check if information is correct is to ask the issuing bank. The AVS system is a way to automate doing so, but it's possible to call the bank directly and verbally verify the address. That means you're subject to the whims of what the issuing bank chooses to support. Banks that are part of the Visa and MasterCard networks generally only verify the numeric parts (address, apartment number, zipcode). AmEx can also verify the cardholder name. But if the bank doesn't have support for validating something, you can't validate it. Separately, there is a \"\"verify-only\"\" transaction which some processors support, which will do exactly what you want: Return AVS values without ever charging the card. However, processors require you to have the \"\"approved merchant account\"\" you don't want to have to have. Without being a merchant, you shouldn't have access to other people's credit cards anyway. Would you really want anyone in the country to be able to verify anyone else's address whenever they want? In short, whatever purpose you have for wanting this probably falls into one of three categories:\"",
"title": ""
},
{
"docid": "46bc1213fb52a6c9ecdc1047f6d59daa",
"text": "For double entry bookkeeping, personal or small business, GnuCash is very good. Exists for Mac Os.",
"title": ""
},
{
"docid": "9e73b8c9ad91cf3c650c89a14d2f62db",
"text": "Quicken has tools for this, but they have some quirks so i hesitate to actually recommend it on that basis.",
"title": ""
},
{
"docid": "65c0e3b68efbc4fd3788f304e00d70b7",
"text": "\"I'm currently using You Need A Budget for this. It lets you track spending my category and \"\"save\"\" money in particular accounts from month to month. They also have some strong opinions about how one should manage one's cashflow, so check it out to see if it'll work for you. It's neither web-based nor free, but the licensing terms are very reasonable.\"",
"title": ""
},
{
"docid": "668cecf9dd78bc8eeb8ac981a1655342",
"text": "Take a look at http://en.wikipedia.org/wiki/Comparison_of_accounting_software, in particular the rows with a market focus of 'personal'. This is probably one of the more complete lists available, and shows if they are web-based (like Mint) or standalone (like Quicken or Microsoft Money).",
"title": ""
},
{
"docid": "93651496bbc8ad51ee18fb100f61dfbc",
"text": "I used to use Quicken, but support for that has been suspended in the UK. I had started using Mvelopes, but support for that was suspended as well! What I use now is an IPhone app called IXpenseit to track my spending.",
"title": ""
},
{
"docid": "f30604cdaf6d233b808313a4423f3974",
"text": "I currently use Moneydance on my Mac. Before that I had used Quicken on a PC until version 2007. It is pretty good, does most simple investment stuff just fine. It can automatically download prices for regular stocks. Mutual funds I have to input by hand.",
"title": ""
},
{
"docid": "82b9b92a9cd236b37a2eb01f8a3d5dfb",
"text": "The best way to answer this question is to try. GnuCash is free, so setting it up and giving it a go shouldn't be too hard. After all, what really matters is how helpful the program is for your purposes. One aspect of personal finance that stops me from jumping to GnuCash/KMyMoney/MoneyDance is the ability to download transactions from my financial institutions. Last time I checked, the process was somewhat involved and support was limited for a handful of banks. Because of that, I decided to stick with MS Money (and once Microsoft dropped the ball, with Quicken). I am sure things are better these days, but I am still not comfortable with trusting my finances to something new and unproven. I still remember how painful it was several years ago, when some bug in MS Money caused occasional mess-up of the reconciliation state for the American Express credit cards.",
"title": ""
}
] |
fiqa
|
f1f2b66c33b01356936eb4ae6b6304b4
|
US Dollar Index: a) where are long term charts; also b) is it available on Google Finance by any chance?
|
[
{
"docid": "9a75ef672f18664183b4a36f7caf546b",
"text": "a) the quick answer to your correlation is quantitative easing. basically the central bank has been devaluing the US dollar, making the prices of all goods increase (including stocks.) the stock market appear to have recovered from 2009 lows but its mainly an illusion. anyway the QE packages are very known when the correlation is not there, that means other meaningful things are happening such as better corporate earnings and real growth. b) the thinkorswim platform has charts for dollar futures, symbol /dx",
"title": ""
}
] |
[
{
"docid": "432563b151d2e6afcfa8c7f9f577f54b",
"text": "I use and recommend barchart.com. Again you have to register but it's free. Although it's a US system it has a full listing of UK stocks and ETFs under International > London. The big advantage of barchart.com is that you can do advanced technical screening with Stochastics and RS, new highs and lows, moving averages etc. You're not stuck with just fundamentals, which in my opinion belong to a previous era. Even if you don't share that opinion you'd still find barchart.com useful for UK stocks.",
"title": ""
},
{
"docid": "3ffd7588e47bdcfbf842058ec577af8f",
"text": "\"Answering this question is weird, because it is not really precise in what you mean. Do you want all stocks in the US? Do you want a selection of stocks according to parameters? Do you just want a cool looking graph? However, your possible misuse of the word derivative piqued my interest. Your reference to gold and silver seems to indicate that you do not know what a derivative actually is. Or what it would do in a portfolio. The straightforward way to \"\"see\"\" an efficient frontier is to do the following. For a set of stocks (in this case six \"\"randomly\"\" selected ones): library(quantmod) library(fPortfolio) library(PerformanceAnalytics) getSymbols(c(\"\"STZ\"\", \"\"RAI\"\", \"\"AMZN\"\", \"\"MSFT\"\", \"\"TWX\"\", \"\"RHT\"\"), from = \"\"2012-06-01\"\", to = \"\"2017-06-01\"\") returns <- NULL tickerlist <- c(\"\"STZ\"\", \"\"RAI\"\", \"\"AMZN\"\", \"\"MSFT\"\", \"\"TWX\"\", \"\"RHT\"\") for (ticker in tickerlist){ returns <- cbind(returns, monthlyReturn(Ad(eval(as.symbol(ticker))))) } colnames(returns) <- tickerlist returns <- as.timeSeries(returns) frontier <- portfolioFrontier(returns) png(\"\"frontier.png\"\", width = 800, height = 600) plot(frontier, which = \"\"all\"\") dev.off() minvariancePortfolio(returns, constraints = \"\"LongOnly\"\") Portfolio Weights: STZ RAI AMZN MSFT TWX RHT 0.1140 0.3912 0.0000 0.1421 0.1476 0.2051 Covariance Risk Budgets: STZ RAI AMZN MSFT TWX RHT 0.1140 0.3912 0.0000 0.1421 0.1476 0.2051 Target Returns and Risks: mean Cov CVaR VaR 0.0232 0.0354 0.0455 0.0360 https://imgur.com/QIxDdEI The minimum variance portfolio of these six assets has a mean return is 0.0232 and variance is 0.0360. AMZN does not get any weight in the portfolio. It kind of means that the other assets span it and it does not provide any additional diversification benefit. Let us add two ETFs that track gold and silver to the mix, and see how little difference it makes: getSymbols(c(\"\"GLD\"\", \"\"SLV\"\"), from = \"\"2012-06-01\"\", to = \"\"2017-06-01\"\") returns <- NULL tickerlist <- c(\"\"STZ\"\", \"\"RAI\"\", \"\"AMZN\"\", \"\"MSFT\"\", \"\"TWX\"\", \"\"RHT\"\", \"\"GLD\"\", \"\"SLV\"\") for (ticker in tickerlist){ returns <- cbind(returns, monthlyReturn(Ad(eval(as.symbol(ticker))))) } colnames(returns) <- tickerlist returns <- as.timeSeries(returns) frontier <- portfolioFrontier(returns) png(\"\"weights.png\"\", width = 800, height = 600) weightsPlot(frontier) dev.off() # Optimal weights out <- minvariancePortfolio(returns, constraints = \"\"LongOnly\"\") wghts <- getWeights(out) portret1 <- returns%*%wghts portret1 <- cbind(monthprc, portret1)[,3] colnames(portret1) <- \"\"Optimal portfolio\"\" # Equal weights wghts <- rep(1/8, 8) portret2 <- returns%*%wghts portret2 <- cbind(monthprc, portret2)[,3] colnames(portret2) <- \"\"Equal weights portfolio\"\" png(\"\"performance_both.png\"\", width = 800, height = 600) par(mfrow=c(2,2)) chart.CumReturns(portret1, ylim = c(0, 2)) chart.CumReturns(portret2, ylim = c(0, 2)) chart.Drawdown(portret1, main = \"\"Drawdown\"\", ylim = c(-0.06, 0)) chart.Drawdown(portret2, main = \"\"Drawdown\"\", ylim = c(-0.06, 0)) dev.off() https://imgur.com/sBHGz7s Adding gold changes the minimum variance mean return to 0.0116 and the variance stays about the same 0.0332. You can see how the weights change at different return and variance profiles in the picture. The takeaway is that adding gold decreases the return but does not do a lot for the risk of the portfolio. You also notice that silver does not get included in the minimum variance efficient portfolio (and neither does AMZN). https://imgur.com/rXPbXau We can also compare the optimal weights to an equally weighted portfolio and see that the latter would have performed better but had much larger drawdowns. Which is because it has a higher volatility, which might be undesirable. --- Everything below here is false, but illustrative. So what about the derivative part? Let us assume you bought an out of the money call option with a strike of 50 on MSFT at the beginning of the time series and held it to the end. We need to decide on the the annualized cost-of-carry rate, the annualized rate of interest, the time to maturity is measured in years, the annualized volatility of the underlying security is proxied by the historical volatility. library(fOptions) monthprc <- Ad(MSFT)[endpoints(MSFT, \"\"months\"\")] T <- length(monthprc) # 60 months, 5 years vol <- sd(returns$MSFT)*sqrt(12) # annualized volatility optprc <- matrix(NA, 60, 1) for (t in 1:60) { s <- as.numeric(monthprc[t]) optval <- GBSOption(TypeFlag = \"\"c\"\", S = s, X = 50, Time = (T - t) / 12, r = 0.001, b = 0.001, sigma = vol) optprc[t] <- optval@price } monthprc <- cbind(monthprc, optprc) colnames(monthprc) <- c(\"\"MSFT\"\", \"\"MSFTCall50\"\") MSFTCall50rets <- monthlyReturn(monthprc[,2]) colnames(MSFTCall50rets) <- \"\"MSFTCall50rets\"\" returns <- merge(returns, MSFTCall50rets) wghts <- rep(1/9, 9) portret3 <- returns%*%wghts portret3 <- cbind(monthprc, portret3)[,3] colnames(portret3) <- \"\"Equal weights derivative portfolio\"\" png(\"\"performance_deriv.png\"\", width = 800, height = 600) par(mfrow=c(2,2)) chart.CumReturns(portret2, ylim = c(0, 4.5)) chart.CumReturns(portret3, ylim = c(0, 4.5)) chart.Drawdown(portret2, main = \"\"Drawdown\"\", ylim = c(-0.09, 0)) chart.Drawdown(portret3, main = \"\"Drawdown\"\", ylim = c(-0.09, 0)) dev.off() https://imgur.com/SZ1xrYx Even though we have a massively profitable instrument in the derivative. The portfolio analysis does not include it because of the high volatility. However, if we just use equal weighting and essentially take a massive position in the out of the money call (which would not be possible in real life), we get huge drawdowns and volatility, but the returns are almost two fold. But nobody will sell you a five year call. Others can correct any mistakes or misunderstandings in the above. It hopefully gives a starting point. Read more at: https://en.wikipedia.org/wiki/Modern_portfolio_theory https://en.wikipedia.org/wiki/Option_(finance) The imgur album: https://imgur.com/a/LoBEY\"",
"title": ""
},
{
"docid": "8c755610386012c509020b65c42c3891",
"text": "\"Yes, there is a very good Return vs Risk graph put out at riskgrades.com. Look at it soon, because it will be unavailable after 6-30-11. The RA (return analysis) graph is what I think you are looking for. The first graph shown is an \"\"Average Return\"\", which I was told was for a 3 year period. Three period returns of 3, 6 and 12 months, are also available. You can specify the ticker symbols of funds or stocks you want a display of. For funds, the return includes price and distributions (total return), but only price movement for stocks - per site webmaster. I've used the graphs for a few years, since Forbes identified it as a \"\"Best of the Web\"\" site. Initially, I found numerous problems with some of the data and was able to work with the webmaster to correct them. Lately though, they have NOT been correcting problems that I bring to their attention. For example, try the symbols MUTHX, EDITX, AWSHX and you'll see that the Risk Grades on the graphs are seriously in error, and compress the graph results and cause overwriting and poor readability. If anyone knows of a similar product, I'd like to know about it. Thanks, George\"",
"title": ""
},
{
"docid": "ee13d447ca63a0e4424994931d061598",
"text": "https://www.hussmanfunds.com/wmc/wmc171009m.png >The following charts will provide a sense of where the U.S. equity market currently stands. The first chart shows our margin-adjusted CAPE, which as noted above has a correlation of about -0.89 with actual subsequent market returns across U.S. market cycles since the 1920’s. https://www.hussmanfunds.com/wmc/wmc171009.htm It will turn, downside potential is historic.",
"title": ""
},
{
"docid": "96ffe6a551593b9b69ec6a68d6a2175b",
"text": "You may refer to project http://jstock.sourceforge.net. It is open source and released under GPL. It is fetching data from Yahoo! Finance, include delayed current price and historical price.",
"title": ""
},
{
"docid": "3aeef25d59c01d9382647746f9d7cada",
"text": "\"I would make this a comment but I am not allowed apparently. Unless your continent blows up, you'll never lost all your money. Google \"\"EUR USD\"\" if you want news stories or graphs on this topic. If you're rooting for your 10k USD (but not your neighbors), you want that graph to trend downward.\"",
"title": ""
},
{
"docid": "55f332da2bc6737a330b520c90586811",
"text": "The portion of a stock movement not correlated with stocks in general is called Alpha. I don't know of any online tools to graph alpha. Keep in mind that a company like Apple is so huge right now that any properly weighted index will have to correlate with it to some degree.",
"title": ""
},
{
"docid": "477ff98da46062514eaec62de026fd63",
"text": "Center for Research in Security Prices would be my suggestion for where to go for US stock price history. Major Asset Classes 1926 - 2011 - JVL Associates, LLC has a PDF with some of the classes you list from the data dating back as far as 1926. There is also the averages stated on a Bogleheads article that has some reference links that may also be useful. Four Pillars of Investing's Chapter 1 also has some historical return information in it that may be of help.",
"title": ""
},
{
"docid": "3befa06aff1f9bdd4c44321420a6f7d0",
"text": "Options - yes we can :) Options tickers on Yahoo! Finance will be displayed as per new options symbology announced by OCC. The basic parts of new option symbol are: Root symbol + Expiration Year(yy)+ Expiration Month(mm)+ Expiration Day(dd) + Call/Put Indicator (C or P) + Strike price Ex.: AAPL January 19 2013, Put 615 would be AAPL130119P00615000 http://finance.yahoo.com/q?s=AAPL130119P00615000&ql=1 Futures - yes as well (: Ex.: 6A.M12.E would be 6AM12.CME using Yahoo Finance symbology. (simple as that, try it out) Get your major futures symbols from here: http://quotes.ino.com/exchanges/exchange.html?e=CME",
"title": ""
},
{
"docid": "6f8f4f0e86dfd43dd70b7d48f6ee9d1f",
"text": "A number of places. First, fast and cheap, you can probably get this from EODData.com, as part of a historical index price download -- they have good customer service in my experience and will likely confirm it for you before you buy. Any number of other providers can get it for you too. Likely Capital IQ, Bloomberg, and other professional solutions. I checked a number of free sites, and Market Watch was the only that had a longer history than a few months.",
"title": ""
},
{
"docid": "2011683a7282591b7487b02e7d336fa2",
"text": "I think it depends where you live in the world, but I guess the most common would be: Major Equity Indices I would say major currency exchange rate: And have a look at the Libors for USD and EUR. I guess the intent of the question is more to see how implicated you are in the daily market analysis, not really to see if you managed to learn everything by heart in the morning.",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "105d56c81f6e2fbc365e6571b8b8d301",
"text": "you could try [FRED](http://research.stlouisfed.org/fred2/graph/?g=HO7), or maybe try the CME and ICE's websites for some decent data.. haven't looked just suggestions - pretty sure the symbol for the Libor futures is EM, you could approximate from that so long as it's not a doctoral thesis",
"title": ""
},
{
"docid": "e5488cb152533b6023509b909b183eec",
"text": "If you're interested in slower scale changes, one option is to use indexes that value a common commodity in different currencies such as the Big Mac Index. If a Big Mac costs more in AUD but stays the same in USD, then AUD have gone up.",
"title": ""
},
{
"docid": "21f7f766f152e5ee0c687d0465e8f0be",
"text": "\"It's required by law. 12 USC 1759 (b) requires that membership in a credit union be limited to one or more groups with a \"\"common bond\"\", or to people within a particular geographic area. For lots more gory details on how this is interpreted and enforced, you can read the manual given to credit unions by the National Credit Union Administration, which is their regulatory agency.\"",
"title": ""
}
] |
fiqa
|
7460c6b71d0f14e0acb2c1883bf99349
|
What is the value in using the “split transaction” feature present in some personal finance management tools?
|
[
{
"docid": "23364edf63997b4d8e4a60c3cec083d8",
"text": "\"Split transactions are indispensable to anybody interested in accurately tracking their spending. If I go to the big-box pharmacy down the road to pick up a prescription and then also grab a loaf of bread and a jug of milk while there, then I'd want to enter the transaction into my software as: I desire entering precise data into the software so that I can rely on the reports it produces. Often, I don't need an exact amount and estimated category totals would have been fine, e.g. to inform budgeting, or compare to a prior period. However, in other cases, the expenses I'm tracking must be tracked accurately because I'd be using the total to claim an income tax deduction (or credit). Consider how Internet access might be commingled on the same bill with the home's cable TV service. One is a reasonable business expense and deduction for the work-at-home web developer, whereas the other is a personal non-deductible expense. Were split transaction capability not available, the somewhat unattractive alternatives are: Ignore the category difference and, say, categorize the entire transaction as the larger or more important category. But, this deliberately introduces error in the tracked data, rendering it useless for cases where the category totals need to be accurate, or, Split the transaction manually. This doesn't introduce error into the tracked data, but suffers another problem: It makes a lot of work. First, one would need to manually enter two (or more) top-level transactions instead of the single one with sub-amounts. Perhaps not that much more work than if a split were entered. Worse is when it comes time to reconcile: Now there are two (or more) transactions in the register, but the credit card statement has only one. Reconciling would require manually adding up those transactions from the register just to confirm the amount on the statement is correct. Major pain! I'd place split transaction capability near the top of the list of \"\"must have\"\" features for any finance management software.\"",
"title": ""
}
] |
[
{
"docid": "0eadff1bdec0fa49ee8e33f7037d3e4f",
"text": "\"The S&P 500 is an index. This refers to a specific collection of securities which is held in perfect proportion. The dollar value of an index is scaled arbitrarily and is based off of an arbitrary starting price. (Side note: this is why an index never has a \"\"split\"\"). Lets look at what assumptions are included in the pricing of an index: All securities are held in perfect proportion. This means that if you invest $100 in the index you will receive 0.2746 shares of IBM, 0.000478 shares of General Motors, etc. Also, if a security is added/dropped from the list, you are immediately rebalancing the remaining money. Zero commissions are charged. When the index is calculated, they are using the current price (last trade) of the underlying securities, they are not actually purchasing them. Therefore it assumes that securities may be purchased without commission or other liquidity costs. Also closely related is the following. The current price has full liquidity. If the last quoted price is $20 for a security, the index assumes that you can purchase an arbitrary amount of the security at that price with a counterparty that is willing to trade. Dividends are distributed immediately. If you own 500 equities, and most distributed dividends quarterly, this means you will receive on average 4 dividends per day. Management is free. All equities can be purchased with zero research and administrative costs. There is no gains tax. Trading required by the assumptions above would change your holdings constantly and you are exempt from short-term or long-term capital gains taxes. Each one of these assumptions is, of course, invalid. And the fund which endeavors to track the index must make several decisions in how to closely track the index while avoiding the problems (costs) caused by the assumptions. These are shortcuts or \"\"approximations\"\". Each shortcut leads to performance which does not exactly match the index. Management fees. Fees are charged to the investor as load, annual fees and/or redemptions. Securities are purchased at real prices. If Facebook were removed from the S&P 500 overnight tonight, the fund would sell its shares at the price buyers are bidding the next market day at 09:30. This could be significantly different than the price today, which the index records. Securities are purchased in blocks. Rather than buying 0.000478 shares of General Motors each time someone invests a dollar, they wait for a few people and then buy a full share or a round lot. Securities are substituted. With lots of analysis, it may be determined that two stocks move in tandem. The fund may purchase two shares of General Motors rather than one of General Motors and Ford. This halves transaction costs. Debt is used. As part of substitution, equities may be replaced by options. Option pricing shows that ownership of options is equivalent to holding an amount of debt. Other forms of leverage may also be employed to achieve desired market exposure. See also: beta. Dividends are bundled. VFINX, the largest S&P 500 tracking fund, pays dividends quarterly rather than immediately as earned. The dividend money which is not paid to you is either deployed to buy other securities or put into a sinking fund for payment. There are many reasons why you can't get the actual performance quoted in an index. And for other more exotic indices, like VIX the volatility index, even more so. The best you can do is work with someone that has a good reputation and measure their performance.\"",
"title": ""
},
{
"docid": "8e54f391924671d1e00e469749b7206a",
"text": "Most businesses have some sort of software to manage their client data. Most of these various software and/or services are industry specific. Black Diamond seems to be a client management tool targeting investment advisers. From the black diamond site Reach an unparalleled level of productivity and transform your client conversations. You don't need one of these unless you're a professional investment adviser with so many clients you can't track them yourself or need more robust reporting or statement generation tools. For your purposes most regular brokers, Fidelity, Schwab, Vanguard, TD, etc, have more than enough tools for the retail level investor. They have news feeds, security analysis papers, historical data, stock screeners, etc. You, a regular retail investor doesn't need to buy special software, your broker will generally provide these things as part of the service.",
"title": ""
},
{
"docid": "f23b2797867eb8b76bf95504624c9fbc",
"text": "\"A Bloomberg terminal connected to Excel provides the value correcting splits, dividends, etc. Problem is it cost around $25,000. Another one which is free and I think that takes care of corporate action is \"\"quandl.com\"\". See an example here.\"",
"title": ""
},
{
"docid": "b32304b701b8d58dafd682346da54418",
"text": "The short answer is that there are no great personal finance programs out there any more. In the past, I found Microsoft Money to be slick and feature rich but unfortunately it has been discontinued a few years ago. Your choices now are Quicken and Mint along with the several open-source programs that have been listed by others. In the past, I found the open source programs to be both clunky and not feature-complete for my every day use. It's possible they have improved significantly since I had last looked at them. The biggest limitation I saw with them is weakness of integration with financial service providers (banks, credit card companies, brokerage accounts, etc.) Let's start with Mint. Mint is a web-based tool (owned by the same company as Quicken) whose main feature is its ability to connect to nearly every financial institution you're likely to use. Mint aggregates that data for you and presents it on the homepage. This makes it very easy to see your net worth and changes to it over time, spending trends, track your progress on budgets and long-term goals, etc. Mint allows you to do all of this with little or no data entry. It has support for your investments but does not allow for deep analysis of them. Quicken is a desktop program. It is extremely feature rich in terms of supporting different types of accounts, transactions, reports, reconciliation, etc. One could use Quicken to do everything that I just described about Mint, but the power of Quicken is in its more manual features. For example, while Mint is centred on showing you your status, Quicken allows you to enter transactions in real-time (as you're writing a check, initiating a transfer, etc) and later reconciles them with data from your financial institutions. Link Mint, Quicken has good integration with financial companies so you can generally get away with as little or as much data entry as you want. For example, you can manually enter large checks and transfers (and later match to automatically-downloaded data) but allow small entries like credit card purchases to download automatically. Bottom line, if you're just looking to keep track of where you are at, try Mint. It's very simple and free. If you need more power and want to manage your finances on a more transactional level, try Quicken (though I believe they do not have a trial version, I don't understand why). The learning curve is steep although probably gentler than that of GnuCash. Last note on why Mint.com is free: it's the usual ad-supported model, plus Mint sells aggregated consumer behaviour reports to other institutions (since Mint has everyone's transactions, it can identify consumer trends). If you're not comfortable with that, or with the idea of giving a website passwords to all your financial accounts, you will find Quicken easier to accept. Hope this helps.",
"title": ""
},
{
"docid": "adbd26a148ea4692bd89917533e0a3ab",
"text": "\"First of all, it's quite common-place in GnuCash (and in accounting in general, I believe) to have \"\"accounts\"\" that represent concepts or ideas rather than actual accounts at some institution. For example, my personal GnuCash book has a plethora of expense accounts, just made up by me to categorize my spending, but all of the transactions are really just entries in my checking account. As to your actual question, I'd probably do this by tracking such savings as \"\"negative expenses,\"\" using an expense account and entering negative numbers. You could track grocery savings in your grocery expense account, or if you want to easily analyze the savings data, for example seeing savings over a certain time period, you would probably want a separate Grocery Savings expense account. EDIT: Regarding putting that money aside, here's an idea: Let's say you bought a $20 item that was on sale for $15. You could have a single transaction in GnuCash that includes four splits, one for each of the following actions: decrease your checking account by $20, increase your expense account by $20, decrease your \"\"discount savings\"\" expense account by $5, and increase your savings account (where you're putting that money aside) by $5.\"",
"title": ""
},
{
"docid": "1ca480847c8abfafbf8136bc97e2d5e0",
"text": "I would investigate mint.com further. Plenty of people have written off using them because Intuit purchased them, but that seems like cutting of your nose to spite your face. I think mint.com is worth it for its Trends functionality alone, not to mention its automatic categorization of your purchases, reminders when bills are due, notifications of increased credit card interest rates, and overdraft notices. I don't think mint.com schedules bills & deposits, but it tracks stocks & mutual fund investments and compares your portfolio returns against Dow Jones, S&P 500, or NASDAQ if you wish. I'm not sure I see the advantage of manual transaction entry, but you can add cash or check transactions manually. As I mentioned earlier, automated categorization is a great feature. In addition, you can tag certain transactions as reimbursable or tax-related. If the primary feature you're interested in is stock quotes, maybe something like Yahoo Finance or Google Finance will be enough.",
"title": ""
},
{
"docid": "c77a68279487ce6f60e828bd58592174",
"text": "> “Any time you split a portfolio up — whether it be a credit portfolio or a trading book portfolio — you lose the benefits of diversification that allow you to reduce the capital you hold against it,” said Mr Austen. > Just to amplify this a little. Banks like diversification but you can only diversify within a reporting entity. At the moment, most banks have a single EU wide reporting entity so thay are free to combine trade and credit exposures. With a mandated split, they will be forced to split the pot between the UK and the EU entities as each must look healthy.",
"title": ""
},
{
"docid": "a94a1e65b2db8127bd4c8dec7cc095b6",
"text": "The reason to do a stock split is to get the price of the stock down to an affordable range. If your stock costs $100,000 per share, you are seriously cutting in to the number of people who can afford to buy it. I can think of two reasons NOT to do a stock split. The biggest is, Why bother? If your stock is trading at a reasonable price, why change anything? It takes time and effort, which equals money, to do a stock split. If this serves no purpose, you're just wasting that effort. The other reason is that you don't want to drive your stock price down too low. Low prices are normally associated with highly speculative start-up companies, and so can give a wrong impression of your company. Also, low prices make it difficult for the price to reflect small changes. If your stock is trading at $10.00, a 1/2 of 1% change is 5 cents. But if it's trading at $1.50, a 1/2 of 1% change is a fraction of a penny. Does it go up by that penny or not? You've turned a smooth scale into a series of hurdles.",
"title": ""
},
{
"docid": "74a1089bb1d601ec2114c0ed79ffc620",
"text": "I still don't see the point of this software; rebalancing frequently is a waste of money (through fees). If you invest in index funds, you don't have to rebalance at all--effectively, the fund is doing it for you, and since they can generally trade more efficiently than individual investors can, that's a win. The Coverdell ESA is a great example. There's a maximum contribution amount, just as there are for almost any tax-exempt account. A decent financial adviser could help you plan how much to contribute to which accounts, at what time, and when you can/should start to withdraw from them.",
"title": ""
},
{
"docid": "3bbda03f837541c501058d5c2e9831a5",
"text": "Given your needs, GNUcash will do swimmingly. I've used it for the past 3 years and while it's a gradual learning process, it's been able to resolve most stuff I've thrown at it. Schedule bills and deposits in the calendar view so I can keep an eye on cash flow. GNUcash has scheduled payments and receipts and reconcilation, should you need them. I prefer to keep enough float to cover monthly expenses in accounts rather than monitor potential shortfalls. Track all my stock and mutual fund investments across numerous accounts. It pulls stock, mutual and bond quotes from lots of places, domestic and foreign. It can also pull transaction data from your brokers, if they support that. I manually enter all my transactions so I can keep control of them. I just reconcile what I entered into Quicken based on the statements sent to me. I do not use Quicken's bill pay There's a reconciliation mode, but I don't use it personally. The purpose of reconcilation is less about catching bank errors and more about agreeing on the truth so that you don't incur bank fees. When I was doing this by hand I found I had a terrible data entry error rate, but on the other hand, the bayesian importer likes to mark gasoline purchases from the local grocery store as groceries rather than gas. I categorize all my expenditures for help come tax time. GNUcash has accounts, and you can mark expense accounts as tax related. It also generates certain tax forms for you if you need that. Not sure what all you're categorizing that's helpful at tax time though. I use numerous reports including. Net Worth tracking, Cash not is retirement funds and total retirement savings. Tons of reports, and the newest version supports SQL backends if you prefer that vs their reports.",
"title": ""
},
{
"docid": "d0635c74f875d15a57b2671500a2f318",
"text": "Most corporations have a limit on the number of shares that they can issue, which is written into their corporate charter. They usually sell a number that is fewer than the maximum authorized number so that they have a reserve for secondary offerings, employee incentives, etc. In a scrip dividend, the company is distributing authorized shares that were not previously issued. This reduces the number of shares that it has to sell in the future to raise capital, so it reduces the assets of the company. In a split, every share (including the authorized shares that haven't been distributed) are divided. This results in more total shares (which then trade at a price that's roughly proportional to the split), but it does not reduce the assets of the company.",
"title": ""
},
{
"docid": "6f35493317b0fa9767a0827ede4a4505",
"text": "I appreciate it. I didn't operate under selling the asset year five but other than that I followed this example. I appreciate the help. These assignments are just poorly laid out. Financial management also plays on different calculation interactions so it is difficult for me to easily identify the intent at times. Thanks again.",
"title": ""
},
{
"docid": "6c73d4e4bfea0767338957eb4d31e95b",
"text": "In theory*, if a company has 1m shares at $10 and does a 10 for 1 split, then the day after it has 10m shares at $1 (assuming no market move). So both the price and the number of share change, keeping the total value of the company unchanged. Regarding your BIS, I suspect that the new number of shares has not been reported yet because it's an ETF (the number of shares in issue changes everyday due to in/out flows). Your TWX example is not ideal either because there was a spin off on the same day as the stock split so you need to separate the two effects. * Some studies have documented a positive stock split effect - one of the suggested reasons is that the stock becomes more liquid after the split. But other studies have rejected that conclusion, so you can probably safely consider that on average it will not have a material effect.",
"title": ""
},
{
"docid": "bbe8039b3fc01785c7082c1a3f785444",
"text": "In older days the merchants and their merchant banks[or service providers] would take funds in their currency. Say in this case USD. When the charge hits the issuer bank, the merchant and merchant bank gets there USD and were happy. The user would get charged in local currency Shekel in this case. The rate applied by his bank [and card provider, Visa/Master also take a cut] is the standard shelf rate to individuals. When business growing and banking becoming more sophisticated, lots of Merchant Banks and Merchants have created a new business, if you offer Shekel to all users then you have lots of Shekel that you can convert into USD. So in this model, the Merchant makes some more profit from Fx spread, the Merchant Bank makes good money in Fx. Your Bank [and card network] loose out. You stand to gain because you potentially get a better rate. All this theory is good. But the rates are moving and its quite difficult to find out if the rates offered directly by EI AI would be better than those offered by your bank. I have no experience in this example, but I have tried this with large shops, buy 2 items one charge in GBP and other in local currency around 2-3 times spread over a year. The difference in rate was close to identical, at times better or worse in range of .02%",
"title": ""
},
{
"docid": "1d63cd0299ab297fd07d4a648063b2e1",
"text": "\"If it could, it seems yet to be proven. Long Term Capital Management was founded by a bunch of math whizzes and they seem to have missed something. I'd never suggest that something has no value, but similar to the concept that \"\"if time travel were possible, why hasn't anyone come back from the future to tell us\"\" I'd suggest that if there were a real advantage to what you suggest, someone would be making money from it already. In my opinion, the math is simple, little more than a four function calculator is needed.\"",
"title": ""
}
] |
fiqa
|
f5fbc1ac87688c730ab07d8ee5d37500
|
Why does Yahoo Finance and Google Finance not match historical prices?
|
[
{
"docid": "de242c20e4e0b92003730a296c3ef71c",
"text": "The difference is that Yahoo is showing the unadjusted price that the security traded for on that date, while google is adjusting for price splits. This means that Google is showing how much you would have had to pay to get what is now one share. Since 1979, JNJ has split 3-for-1 once, and 2-for-1 four times. 3x2x2x2x2 = 48. If you bought 1 share at that time, you would now have 48 shares today. Yahoo is showing a price of $66 for what was then 1 share. $66/48 = 1.375, which Google rounds to 1.38. You can see this if you get the prices from May 14-21, 1981. The stock split 3-for-1, and the price dropped from 108 to 36.38. Yahoo's adjusted close column has not been accurate since they re-wrote the Finance website. It now just represents the closing price. The other relevant field on Yahoo is the Adj. Close. This adjusts for splits, but also adjusts for dividends. Hence why this doesn't match either the Google or Yahoo numbers.",
"title": ""
},
{
"docid": "79d5438b0c557a93e7157a96506906bf",
"text": "I work on a buy-side firm, so I know how these small data issues can drive us crazy. Hope my answer below can help you: Reason for price difference: 1. Vendor and data source Basically, data providers such as Google and Yahoo redistribute EOD data by aggregating data from their vendors. Although the raw data is taken from the same exchanges, different vendors tend to collect them through different trading platforms. For example, Yahoo, is getting stock data from Hemscott (which was acquired by Morningstar), which is not the most accurate source of EOD stocks. Google gets data from Deutsche Börse. To make the process more complicated, each vendor can choose to get EOD data from another EOD data provider or the exchange itself, or they can produce their own open, high, low, close and volume from the actual trade tick-data, and these data may come from any exchanges. 2. Price Adjustment For equities data, the re-distributor usually adjusts the raw data by applying certain customized procedures. This includes adjustment for corporate actions, such as dividends and splits. For futures data, rolling is required, and back-ward and for-warding rolling can be chosen. Different adjustment methods can lead to different price display. 3. Extended trading hours Along with the growth of electronic trading, many market tends to trade during extended hours, such as pre-open and post-close trading periods. Futures and FX markets even trade around the clock. This leads to another freedom in price reporting: whether to include the price movement during the extended trading hours. Conclusion To cross-verify the true price, we should always check the price from the Exchange where the asset is actually traded. Given the convenience of getting EOD data nowadays, this task should be easy to achieve. In fact, for professional traders and investors alike, they will never reply price on free providers such as Yahoo and Google, they will most likely choose Bloomberg, Reuters, etc. However, for personal use, Yahoo and Google should both be good choices, and the difference is small enough to ignore.",
"title": ""
}
] |
[
{
"docid": "39e680ba097f0ffc975fb39a29e5dcd0",
"text": "Check the answers to this Stackoverflow question https://stackoverflow.com/questions/754593/source-of-historical-stock-data a number of potential sources are listed",
"title": ""
},
{
"docid": "c043eae8ce68058c54aca7a490fff9c7",
"text": "I assume you're after a price time series and not a list of S&P 500 constituents? Yahoo Finance is always a reasonable starting point. Code you're after is ^GSPC: https://finance.yahoo.com/quote/%5EGSPC/history?p=^GSPC There's a download data button on the right side.",
"title": ""
},
{
"docid": "dc791ff7f4a2e648915913f2f2bc62ae",
"text": "Yup. What I wanted to know was where they are pulling it up from. Have casually used Google finance for personal investments, but they suck at corp actions. Not sure if they provide free APIs, but that would probably suck too! :D",
"title": ""
},
{
"docid": "8f399907f2221e4bdc9aefb8c11cf52c",
"text": "This is from Google Finance right now.",
"title": ""
},
{
"docid": "3b97c12e43ff897b685f9465d1f85e67",
"text": "I had the same problem and was looking for a software that would give me easy access to historical financial statements of a company, preferably in a chart. So that I could easily compare earnings per share or other data between competitors. Have a look at Stockdance this might be what you are looking for. Reuters Terminal is way out of my league (price and complexity) and Yahoo and Google Finance just don't offer the features I want, especially on financials. Stockdance offers a sort of stock selection check list on which you can define your own criterion’s. Hence it makes no investment suggestions but let's you implement your own investing strategy.",
"title": ""
},
{
"docid": "6f8f4f0e86dfd43dd70b7d48f6ee9d1f",
"text": "A number of places. First, fast and cheap, you can probably get this from EODData.com, as part of a historical index price download -- they have good customer service in my experience and will likely confirm it for you before you buy. Any number of other providers can get it for you too. Likely Capital IQ, Bloomberg, and other professional solutions. I checked a number of free sites, and Market Watch was the only that had a longer history than a few months.",
"title": ""
},
{
"docid": "2e985fd0802a5664343a1f2e720c11ad",
"text": "\"Sure, Yahoo Finance makes mistakes from time to time. That's the nature of free data. However, I think the issue here is that yahoo is aggregating several line items into one. Like maybe reporting cash equivalents plus total investment securities minus loans as \"\"cash equivalents.\"\" This aggregation is done by a computer program somewhere and may or may not be appropriate for a particular purpose and firm. For this reason, if you are trying to do top quality research, it's always better to go to the original SEC filings, if you can. Then you will know for sure which items you are looking at. The only mistakes will be the ones made by the accountants at the firm in question. If there's a reason you prefer to use yahoo, like if it's easier for your code to scrape, then spend a little time comparing to the SEC filing to ensure you know where the numbers really come from before using it.\"",
"title": ""
},
{
"docid": "0abcd449cae2ed7664022837ddd01ced",
"text": "\"Google's RSI is using a 10 period on 2 minute bars - i.e. it is based upon the last 20 minutes of data. Yahoo's RSI is using a 14 period lookback on an undetermined timeframe (you could maybe mouse-over and see what incremental part of the chart is giving) and given the \"\"choppier\"\" price chart, probably 30 second or 1 minute bars. Given the difference in both the period specified and the periodicity of the charts - you should expect different results.\"",
"title": ""
},
{
"docid": "f2b2cd5d67aa4c7040942dcefbcbc302",
"text": "The biggest issue with Yahoo Finance is the recent change to the API in May. The data is good quality, includes both dividend/split adjusted and raw prices, but it's much more difficult to pull the data with packages like R quantmod than before. Google is fine as well, but there are some missing data points and you can't unadjust the prices (or is it that they're all unadjusted and you can't get adjusted? I can't recall). I use Google at home, when I can't pull from Bloomberg directly and when I'm not too concerned with accuracy. Quandl seems quite good but I haven't tried them. There's also a newer website called www.alphavantage.co, I haven't tried them yet either but their data seems to be pretty good quality from what I've heard.",
"title": ""
},
{
"docid": "42ae41bba0cb5ada50da52201b1b7d59",
"text": "Previously, Google had a delayed update for their stock prices (15 minutes I believe). That change enabled users of Google Finance to see updates to stock prices in real-time.",
"title": ""
},
{
"docid": "ac305c586c01762a2f7fedcdf4e4420e",
"text": "You can use Google Finance Stock Screener for screening US stocks. Apparently it doesn't have the specific criterion (Last Price % diff from 52 week low) you are (were!) looking for. I believe using its api you can get it, although it won't exactly be a very direct solution.",
"title": ""
},
{
"docid": "5b30e2b65f080a8773403290f397874f",
"text": "The yahoo finance API is no longer which broke the Finance:Quote perl module. The Finance:Quote developers have been quick to fix things and have produced several new versions in the last week or two. The short of it is that you need to update Finance:Quote, then obtain an AlphaVantage free key and tell Gnucash to use AlphaVantage as it's source for online quotes by editing your securities in the Price Editor.",
"title": ""
},
{
"docid": "5f5fa3de79b9b0d7b8c2a415881e1f42",
"text": "I found additional evidence on TDAmeritrade's website that helps confirm that the 3/17/11 prices Jason found are the ones to use since all three were traded on that day. Although GM+A had prices and trading as early as 2/28/11, GM+B's price and trading shows up no earlier than 3/14/11, but there was no trading indicated for GM+A on 3/14 so 3/14 can't be used. The two warrants were not traded every day after they came out. The next date that I found when all three, GM, GM+A and GM+B had trades was 4/11/11. I found Google and Yahoo Finance unable to produce the historical prices for the warrants that far back. Unfortunately, you need to be a TDA accountholder in order to access TDA's historical price information for stocks.",
"title": ""
},
{
"docid": "202984fdfca72013590d80a373c28d40",
"text": "\"P/E is Price divided by Earnings Per Share (EPS). P/E TTM is Price divided by the actual EPS earned over the previous 12 months - hence \"\"Trailing Twelve Month\"\". In Forward P/E is the \"\"E\"\" is the average of analyst expectations for the next year in EPS. Now, as to what's being displayed. Yahoo shows EPS to be 1.34. 493.90/1.34 = P/E of 368.58 Google shows EPS to be 0.85. 493.40/0.85 = P/E of 580.47 (Prices as displayed, respectively) So, by the info that they are themselves displaying, it's Google, not Yahoo, that's displaying the wrong P/E. Note that the P/E it is showing is 5.80 -- a decimal misplacement from 580 Note that CNBC shows the Earnings as 0.85 as well, and correctly show the P/E as 580 http://data.cnbc.com/quotes/BP.L A quick use of a currency calculator reveals a possible reason why EPS is listed differently at yahoo. 0.85 pounds is 1.3318 dollars, currently. So, I think the Yahoo EPS listing is in dollars. A look at the last 4 quarters on CNBC makes that seem reasonable: http://data.cnbc.com/quotes/BP.L/tab/5 those add up to $1.40.\"",
"title": ""
},
{
"docid": "2649f29b989d8e7f895fca5b3d7d7194",
"text": "\"At the bottom of Yahoo! Finance's S & P 500 quote Quotes are real-time for NASDAQ, NYSE, and NYSE MKT. See also delay times for other exchanges. All information provided \"\"as is\"\" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein. Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Orderbook quotes are provided by BATS Exchange. US Financials data provided by Edgar Online and all other Financials provided by Capital IQ. International historical chart data, daily updates, fundAnalyst estimates data provided by Thomson Financial Network. All data povided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. Thus, yes there is a DB being accessed that there is likely an agreement between Yahoo! and the providers.\"",
"title": ""
}
] |
fiqa
|
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