What is the correct formula to figure my rate of return?
I loaned out $50 and was rewarded back $50.75 contained by 52 days. what is the correct formual to find out what the interest rate would be?Answers: You gained $.75 over a 52 daylight period by loaning out $50. You made a return of .75/50=.015 or 1.5%. BUT you made this surrounded by 52 days so the return needs to be anualized!
365 days surrounded by a year/ 52day is 7.02
7.02*.015 =10.53%
.75/50 = .015
so 1.5% is your rate of return.
Is it possible to use money from an old 401k from a previous employer to purchase a 2nd home?
Answers: You can cash out a 401K at any time. It is not recommended b/c you will pay over 30% in taxes plus early withdrawal fees of around 10%.
If you are strapped for cash the first thing to look into is taking a loan from your 401K before cashing it out. Only cash out your 401K as a last resort.
Please read the links below:
Once money is in your 401(k), you generally cannot make withdrawals before age 59 1/2, except for special circumstances; even then, you are looking at some pretty big penalties. You definitely can do it though, if you really need the money.
Good luck with your house!
Once you leave your employer, you are entitled to a distribution from your 401k plan. Ask your former employer for the distribution form. You can either roll the distribution over to another 401k plan or an IRA and avoid taxes/penalties. Or you can take the cash and pay taxes. As a rule of thumb, your 401k plan administrator will withhold 20% for Federal taxes. Some states require additional withholding, so you will have to read your distribution form for further details. If you are younger than 59 1/2, you will also have to pay a 10% excise tax for early withdrawel.
Basically, if you take a lump sum distribution from your old 401k, you will be left with approximately 70% of the value and you can use it for anything, new home, whatever. If you do take the cash, remember that you will have a 1099-R to report when you file your taxes the following year.
**The rules are different if you are still working for the employer who sponsors the 401k plan. Usually, you can only take distributions for loans and specific hardships (ie. to avoid forclosure on your principal residence, to pay for higher education, medical bills) as allowed by the plan document. Contact your HR rep for specific details on your plan.
you'll be penalized.and it'll be taxed. Doubtful that it'll be worth it. Properly invested the 401k would outperform the real estate investment and most importantly you won't have to liquidate 100% of the holdings in order to start drawing down the balance during retirement...that's critical if you happen to be retiring in down market. Imagine if you were turning 67 and the majority of your retirement is tied up into your home right now.
I want 2 invest in mfs suggest me best open ended mutual fund (nfo)?
Answers: Reliance RNR
HDFC Infrastructure
Although if you would have provided more details, then it would have been much better to answer like time period, risk power etc.
In present condition, the two best MF's Open ended NFO's are:
Reliance Natural Resources Fund
AIG Infrastructure and Economic Reforms Fund.
Although please note that again it depends on your risk apetite and time horizon you are looking for. No one can predict returns in any MF's but they both seem to look good as coming days should bring boom in power, infrastructure and Capital goods sector.
Best right now are
Reliance Natural Resources fund
Birla Special Situation Fund
You can check details on website of respective funds. Also following websites are good for getting more information.
http://themarketinsight.net/
http://moneycontrol.com/
Have a look at the following website
http://www.valueresearchonline
Study the open ended funds with the returns in the last couple of years and decide which one to apply for.
Princpal Resurgent India Fund
Kotak Opportunities
JM Basic
Get in touch for more info.
Happy investing