answerstu

investing - What would be a wise way to invest savings for a newly married couple?

My wife and I were married about a year ago and, between us, have just over $150,000 (AUD) in our joint bank account. We're both in our late-twenties and work full time, but have fairly average salaries (approx. $80,000 AUD combined per year after tax) -- most of our savings have accrued because we've both worked at least casually since we were 16 and have been fortunate enough to live with our respective parents until our early twenties.We currently rent, own one 3 year old car and have no other notable assets. We would like to buy our own hou...Read more

investing - Taxation of muni bond bought at a premium

Interest received from municipal bonds is generally tax-exempt at the federal level (and at state level if purchaser resides in the issuer states).Conversely, does this mean that a purchaser cannot deduct the loss of the premium?In other words, let's say I buy a muni with a coupon of 5% for a price of 110. If I buy 10 bonds, I will pay $11,000, but I will only receive $10,000 when the bonds mature. Do I get to deduct that $1,000 loss somewhere, or is there no offset since I'm already receiving the interest tax-free?...Read more

investing - Why would anyone ever invest in a cash-only etf?

I understand the benefits (and risks) of ETFs, and I also understand the benefits of a term deposit in a bank. I have seen that there are ETFs that essentially keep the investment in cash, that is, in term deposits, for example the iShares core cash fund. Unlike a term deposit, this particular ETF distributes the interest every month (instead of at the end of the term deposit), however the interest is still as low as one of a term deposit and you still need to pay for the management fee. So, why would anyone invest the money in a cash-only ETF ...Read more

investing - Is CFD trading a good idea?

I am planning on speculating in forex and possibly indices, however due to my lack of experience I don't want to invest too much. With £100, you can't really get very far with indices, and profit in forex would be nearly unnoticeable. For this reason I was considering CFDs which are leveraged, hence allowing me to get greater gains (and, possibly, losses) for a smaller investment. Now the question: is advisable for a beginner to speculate in CFDs? If not, is there a better way to invest with a small amount of money?...Read more

investing - Why would anyone buy a government bond?

In my country, the interest rates on government bonds are currently 2 - 3%, but I have money in a term deposit at the bank which earns 4% interest. I don't understand how this can be possible. Why are there any buyers of government bonds, either individuals or banks? Why couldn't a bank just deposit its money in another bank instead?As you can tell from my question, I know very little about economics. I would be really grateful if you could answer in the simplest possible language!...Read more

investing - Is this partnership offer for a property I am selling a scam?

I have published an advertisement on a classified website to sell undeveloped land I own in Sri Lanka.Through this, someone contacted me by email saying he wants to "invest" in the property.He claimed he is from the United States and gave some personal and family information, and a contact number too.He said this: I am very interested in buying this your properties and if also if you'll make yourself available to be my business partner too if you could make yourself my partner and be a source of management to the property that is bought by ...Read more

investing - What are some good investment options for a foreigner in France who doesn't have a permanent residence permit or a French citizenship?

I'm a non EU citizen living in France, with a work permit valid until December 2021. I don't have permanent residence permit yet, but will apply for it soon with a year or two. So I was wondering what are some good investment options (e.g. mutual funds etc. and others) in France that I can invest in now? I'd like to invest small, say 1000-1500€ at one time, or invest 100€ every month. Thank you!...Read more

investing - What is the difference between "unités de compte" and ETFs?

What is the difference between "unités de compte" (often proposed in assurance-vies) and ETFs?I don't see the difference when I read the definition on https://www.journaldunet.fr/patrimoine/guide-des-finances-personnelles/1201873-unites-de-compte-definition-en-finance (mirror): Les unités de compte permettent d'investir de l'argent sur les marchés boursiers sans avoir besoin d'acquérir directement des actifs, qu'il s'agisse d'actions ou d'obligations. C'est un moyen efficace de diversifier son épargne tout en augmentant le rendement et en dimi...Read more

investing - Is it a good idea to invest in buy-to-let if rent does not cover mortgage payment?

Background:To benefit from current favourable interest rates in my region (France: ca. 1.5%pa fixed over 20 years), I am considering investing in a buy-to-let property.I consider that interest rates are likely to increase in the future, and inflation to be positive too. I thus want to push my mortgage ability as far as I can (reasonably).However, I am still a bit new/naive with real-estate investment. My initial thought is that rent perceived from the house should exceeds the mortgage payment and taxes/maintenance costs (+ ideally some extra bu...Read more

savings - Best way to start investing, for a young person just starting their career?

I am young, just started my career, and looking to begin investing so I can make my money work for me. I'm still living like I did in college (occasional purchase on myself, but most of it goes into savings) and I would like to take the extra money and invest it. What would you suggest are the best options for me to begin? I was considering getting a personal investor [a financial advisor] for perhaps a year or so, but I've heard that they really are not worth the money. I wanted to get the input of the great minds here....Read more

investing - Why would a company care about the price of its own shares in the stock market?

After a company has issues shares, why should it care if the value of the shares go up and down?Since the shares are now being traded among the public, if the value goes up or down, that is strictly a transaction between buyer and seller, none of whom are directly related to the company.E.g. if I sell X an iPhone for $100, why should I care if X is selling the iPhone to Y for 1 dollar or 1000 dollars? I have got my $100, so I need not bother. No?...Read more

investing - Financial Advice for Newlyweds

My wife and I are newlyweds, and we are fortunate enough to have little debt and respectable incomes - since StackExchange is neither anonymous or private I won't disclose the real numbers, but I can describe our general setup:We currently run the house via joint checking (ex. rent, groceries, etc.) and joint savings (ex. house/car down payments, emergencies); beyond that we retained our private checking accounts for personal holdings.Both of us have retirement plans. She a 401k that her employer supplements (not sure the %). I have two, one is...Read more

investing - Where should I invest my savings?

I am 29 year old living in USA, married and expecting first child this summer. We are debt free and both have stable jobs. I have a side business earning me about $30K net income a year. We have about $110k net cash saved in our bank account. I need help with investing...We rent currently. Should I use big chunk of my savings and buy a house in this market? I live in DC area. My wife might quit her job after giving birth.What is the best way to invest money as I don't want it to sit in my bank and devalue due to inflation? I am not getting any ...Read more

united kingdom - Investing platform options without fixed residency

Background:My wife and I are in our high-twenties currently living in UK. We don't have a mortgage, we're renting our flat. The only debt we have is the standard UK student loans, which is deducted from our salaries automatically as a %. We have no debt beside this.We're currently researching the concept of FIRE (financial independence, retire early) which involves investing extra savings to retire earlier. At the moment we're contributing 15% of our income to our workplace pensions (with further plans to increase it), but we've still managed t...Read more

investing - What type of financial instruments can a company with no assets or money use to raise seed/starting capital

Long story short, I have a LOT of experience as a web administrator, and a lot of experience in retail. I want to raise the money to do acquisitions of small ecommerce operations that output enough profit to be viable, with no underlying assets I understand I cannot sell a convertable bond as no stocks exist, but can I issue a fixed bond to gain the first round of needed capital. Rather than popular choices for funding a venture, such as VC (which has a low change of approval), angel investors, personal loans, or asking for investments from fri...Read more