is it better to rent property or own?
Question:Answers:
It is better to own. That way you can do anything you want to the place.
Other Answers:
own... rent you're just throwing your money out and paying for someone else to own it. plus it's probably cheaper by the month to own.
Source(s):
http://www.blghst.com
It depends on the place and its realestate pro. if u r financially strong it should be better to own.
rentign si for those of us who cant afford to buy. You shoud buy if you can afford it, and its financially worth it. Sometimes its cheapre to rent a property than buy a piece of property that has a low resale importance! Also if you rent until teh priced drop on property you can buy at a much lower rate, so it may be smarter to hodl out , especially if you live in So Cal / San Fernando Valley ... Buying is almost other a better option...hope this help
Source(s):
Frineds in teh mortgage industry
It depends on the housing flea market where you live, and how long you plan to hold on to the property. If you plan to keep it 30 years, afterwards even a price decline lasting 5 years will not affect your well-being. If you plan to hang on to it less than 10 years, next it is more important to consider the true plus of the property (measured by how much rent it brings in).
In some areas of the country, buying and renting cost about matching (taking into account mortgage + property toll + maintenance - duty breaks). In other areas, buying costs double or triple the cost of renting the exact same property. The latter is a indication of an unsustainable bubble. Look at rental prices and use a mortgage calculator to compare. If the mortgage is more than the rent, it's not an investment; it's speculation.
rent vs buy calculator:
http://www.homefair.com/homefair/usr/rentbuyform.html
mortgage calculator:
http://www.bankrate.com/brm/mortgage-calculator.asp
In case you live surrounded by one of the bubble markets (most of California, Boston, DC, etc):
http://en.wikipedia.org/wiki/US_property_bubble
The opportunity that you will do worse than the expected return?
Question:I have 2 question1) If I have $10,000 invest surrounded by a portfolio, and the average expected return in this portfolio 10 years from presently is 8.242%, how can I calculate "how much I should expect to enjoy 30 years from now"?
2) If I invest the same amount of money contained by a portfolio with expect return 8% and a standard deviation 10%, what is the possibility that I will do worse than the expected return 30 years from presently? The answer does not suppose to be 50%, Right?
For the second question, my professor said the spreadsheet below can assist to find the answer, but I have no hypothesis how can I get the answer from that spreadsheet.
http://www.wku.edu/~bill.trainor/invest/riskandreturn.xls
I will really appreciate if any of you can minister to me find the answer. Thank You
Answers:
for question 1 is the return 8.242% per year? I would guess yes, so you would multiply 1.08242 to the 30th power times 10000.
What you are doing here is to multiply 10,000 times 1.08242, (add the one to hold on to the 10000 plus interest, if you dont add the one you are singular calculating the interest and have to make the addition of back contained by the 10000) to get how much at the running out of year one, then multiply that result by 1.08242 to gain what you have at close of year 2. Then keep doing that until at the extremity of year 30.
The second question is a bit more difficult. Take that spreadsheet and imbue in the values at the top. create your begining value 10000 and the annual expense 0. Not sure what value to use for confidence (I am sure you know what to use here) and the other two be given return = 8%, deviation=10%. After 30 years you will have a lower and an upper shorten.
You then thieve answer from #1 and find out how far into the range it is to find the percent liklihood. For example if the lower ceiling was 100 and the upper cut back was 300 and your number total in #1 be 150, then you can see that 150 is greater than 25% of the possibilities and smaller quantity than 75%. So you would do worse 25% of the time.
The actual calulation would be:
U = Upper limit
L = lower restrict
R = range = U - L
C = compared plus = answer from #1
percent worse = (C-L)/R
in the example percent worse = (150-100)/(300-100)
Low Price Stock Trading - massive hum - query?
Question:I'm looking for the reason or logic specifically behind recent trading pursuit I'm witnessing. XXX, trades as a OTC penny stock. I have shares that I bought through my run of the mill brokerage account, freshly as anyone can. XXX is trading at massively high trading volumes immediately for months, with little to no tuning in share price. Average on a daily basis volume 333,281,908 shares. Several days with okay over a billion shares traded. XXX's web site states that in that are 10 bil shares outstanding. One last reality, the stock price has plummeted over these months. At .0001 per share during the massive volume length. My question is: How, next to only 10 billion shares outstanding, can XXX be so actively traded at this volume and why would XXX sit at impossible to tell apart price and trade billions of shares, when all press and reports around the company are positive?My take is that someone is manifestly swapping shares, huge chunks at a time, at ridiculously low prices to keep the stock price down? Why turn to the expense?
Answers:
>>How, with one and only 10 billion shares outstanding, can XXX be so actively traded at this volume and why would XXX sit at the same price and trade billions of shares, when adjectives press and reports about the company are positive?
The marketplace is at a price consensus or is in a consolidation phase. The bulls and bear are in consensus; not a soul is more powerful than the other.
You will also find that penny stocks are usually less volatile than bigger appeal stocks.
>>My take is that someone is clearly swapping shares, huge chunks at a time, at ridiculously low prices to keep the stock price down? Why travel to the expense?
No I doubt anyone would be doing that deliberately. There is no point to such exercise - spend foolishly of time and money.
Maybe people who bought ahead of time at a cheaper price are taking profits and people who are audible range the news are buying contained by.
Good Luck!
Re. financial planning:What is an annuity and what kind are nearby?
Question:some offer insurance at the finale, what is the downside compared to investing the same amt of money surrounded by the stock market?Answers:
network
Other Answers:
A full discussion of all of the different types of annuities is approach more typing than I want to do tonight. However, there are three key types of deferred annuities (the type of annuity you invest money now that you will use following in life). Fixed annuities bequeath you a fixed rate of return that is declared annually by the insurance company and is guaranteed never to jump below some floor. Equity Index Annuities have their rate of return peg to some index (typically the S&P 500) with a floor at 0% and a panama at some level, for example 10%. If the S&P falls inside that range for the year, your side gets that rate of return. If the return on the index exceeds your sunhat, you get the boater rate. If the index loses money, you don't.(0%)
The third type of deferred annuity is the Variable Annuity. This type of annuity has several subaccounts you can invest contained by, from guaranteed interest accounts and bond accounts through stocks and sometimes real estate. You choose how aggressive or conservative your mix of assets is and doesn`t matter what the return is on your portfolio, that is what you achieve. There also are usually optional guarantees that will allow you to protect your adjectives income from the account against losses.
The big benefit to investing within an annuity versus just buying equities or mutual funds is twofold. One is the guarantees that can be built into the policy (very attractive for risk-adverse investors) and the other is rates deferral. Money invested in an annuity is not tax as it grows; no 1099 forms from year to year. If you invest in equities or funds you can find taxed respectively year. the downside is the added costs ( nothing is free) and precipitate withdrawal penalty if you withdraw money prior to 59.5.
Sorry it be so brief, let me know if you want further info.
what are some risk running technique for allowance funds?
Question:Answers:
Risk Management is NOT about getting constant (i.e. low volatiliy) returns.
Risk Management is NOT roughly speaking getting risk with complete resolve.
As Mark Twain said: predicting is difficult, but it is more difficult to predict the future.
Risk Management is more or less getting rich enough next to as much uncertainty as you surface confortable with.
The first step towards risk admin for pension funds is knowing the explicit or implied fund's liability:
is it a defined benefit fund? then it's fairly easy to determine the liability.
Is it defined contribution? Then still the fund has, on behalf of the benefitial owners, liability to deal beside, although they are not explicit and thus are more difficult to be sought after.
You should pursue two different (and at most times contrarian) objectives:
first, maximize the expected surplus of the fund, AFTER the liabilities hold been rewarded.
Second, minimize the VARIANCE of the difference between the liabilities and the assets plus the adjectives contributions to the plan.
That is, you should, on hand
maximize e=(X-B)'E
where on earth X is the Asset Portfolio, B is the portfolio representing the future flows for the fund (i.e. contributions and withdrawals), E is a vector of expected returns for respectively asset or flow;
and on the other hand
minimize V=VAR{(X-B)'E}
[Note: if X and B are deterministic and E is multinormal, afterwards V= (X-B)'S(X-B) where S ithe covariance matrix for E]
It should be more than obvius that both function are ,across the world speaking, not optimal in duplicate place. Thus, you need a PREFERENCE FUNCTION.
It's usual to own U=e-lV where l is the risk-aversion coefficient.
Depending on how you model your assets and your flows, the function can turn out to be analytically treatable, or you might running out up using some kind of simulation
you can look for more information at
AIMR (American Insitute for Market Research)
Other Answers:
Obtain the book "How to Make $1,000,000 surrounded by the Stock Market Automatically" by Robert Lichello, 3rd Edition, and follow the formula. A way to avoid risk altogether is to put adjectives your money into short term bonds, but I don't similar to the anemic returns of the latter method.
is in attendance any low investments i can start to let go money for my adjectives?
Question:my wife and i dont have much extra money right very soon with our home loan and sports car loan but i know we need to start good for the future.is in that a small safe investment i can start little by little for long residence money?Answers:
there are mutual funds next to small initial investments. $500 for example. Some even less. That is a apposite way to start. I enjoy included a link through Yahoo nouns showing funds of that nature that are rate better than average by Moringstar. Yahoo sometimes does not provide correct information so you need to use this as a starting point and research for a moment furture.
Another way is to spread out an on line brokerage report and buy shares directly in right solid companies that have a angelic track record and settle dividend that have tend to increase over time, such as BAC, for example. But that is more risky lacking having at at tiniest 5 and preferably 10 different stocks in your portfolio to run down the risk of a piece of bad word causing disaster. You also hold the option of buying exchange traded index funds. That is an inexpensive method to contribute in standard market trends. I individually do not like the model, but a lot of inhabitants do.
Other Answers:
401K at work. Your employer contributes a certain portion as long as you do. You want where your money should be invested. Buying stocks are risky unless you know someone explicitly starting a business and you can buy the first stocks.
stock
What they call ETF's (exchange traded funds).
buy 300 shares of EZM and you will be glad 3 years following
what is the difference between uninformed amble guess and the reorganized open market hypothesis?
Question:Answers:
actually, the updated market hypothesis is claiming that prices of securities fully emulate available information about securities. And it further states 3 forms of EMH.
1) strong form -stock prices echo all information relevant to the firm, even including information available solely to company insiders.
2) Semistrong form - stock prices already reflect adjectives publicly available information. This information includes in auxiliary to past prices, fundamental notes on the firm's product line, competence of management, symmetry sheet composition, etc.
3) Weak form - this form states that stock prices already reflect adjectives information that can be derived by examining market trading background such as the history of past prices, trading volume, or short interest. It imply that trend analysis is fruitless. If such data ever conveyed reliable signals nearly future execution, all investors would own learned long since to exploit the signals. Ultimately, the signals lose their advantage as they become widely known.
While chance walk opinion is the notion that stock price changes are uninformed and unpredictable. Randomly evolving stock prices are the necessary consequence of intelligent investors competing to discover relevant information since the rest of the market become aware of it.
Other Answers:
I am not sure they have anything within common.
The unselective walk one builds a model where on earth a security’s price (or that of another instrument; could be an index too) in a given term of time will move up or down with a probability defined by the everyday distribution. It is most likely the price to metamorphosis a little and smaller quantity likely to transformation a lot. If you scrabble for normal distribution and standard deviation within en.wikipedia.org you will be able to find incredibly specific info.
Efficient market hypothesis is the proposition that flea market all participant together at one and the same time counter to news roughly speaking facts affecting the price of a security, that route moving the price as quickly as possible. Therefore within a truly efficient marketplace (only a in speculative existence by my opinion) nobody will be able to enjoy an advantage of entering a bazaar earlier than anyone else because they have the news closer. Also it assumes that prices of securities immediately echo the “collective knowledge” of the facts about the indemnity and its perceived value.
volatile walk is a not memory process
efficent flea market use measures of past background
The first answer is correct about the rationalized market hypothesis.
Here's how it relates to the arbitrary walk: If market are efficient, the price of a stock or index will follow a chaotic walk because its price is merely affected by unpredictable events going on at random time intervals.
Source(s):
A Random Walk Down Wall Street, by Burton Malkiel
If you with the sole purpose hold $50.00 and want to construct money from an investment...what would the best route be?
Question:Answers:
I started small, you might want to think more or less penny stocks, you can buy tons of shares, for hardly any money, but it is deeply risky. Make sure you have a comfortable amount save first, then work on investing.
Other Answers:
buy some iraqian money hold on to it till utility goes up and currency in at a world ridge.
For just $49.99 I can dispatch you all the information you obligation to know to become rich, and all on only one compact disc. Hurry don't delay. This special one time proposition can not be found in stores, and expires as soon as you dispatch the cash! Put the $50 contained by a savings commentary. Keep putting money into the account and do not touch the money unless it's for a indisputable emergency. When you get up to $1,000, stretch out up a Roth IRA account beside an online brokerage firm. Then invest in small cap.
Save religiously and use the stock market as a edge.
What can $10 do to change your time for the better?
Find out NOW.
http://www.my.ws/ronelyn If you have simply $50, you need to first become a depositor. Don't even think in the order of being an investor but. Do everything you can do to get out of any short possession or revolving debt you have presently. You'll accomplish so much more doing this and perhaps also focusing on reducing spending to see you to accumulate more to invest following. You could start investing when you have at lowest possible $50 dollars every month to invest. There are mutual funds which will draft that much every month from your checking account. Any investor - even a small one - must infer of producing at least tens of thousands and continuing an investement discipline for years. Investing is done for a key goal (college, retirement, etc) not for some consumer purchase. And don't spatter for any quick scheme. When you do start to invest, start cautiously and allow yourself to swot up as you go. Like anything, it take time to learn to be a right investor.
what is the best wall surrounded by houston texas for a child's money story?
Question:Answers:
Consider a 529. That is a college savings plan. It have a lot of excise advantages. http://www.529s.com
Other Answers:
I would ING Direct - there an online sandbank with GOOD rates
Source(s):
http://www.ingdirect.com
How to avoid stock broker commissions?
Question:Answers:
There are ways to buy stock directly from a company, contact the company whose shares you want to own (att, Disney, etc). When you are dealing with a stock broker you are giving a commssion for the capability of the broker to acquire the shares for you. Online brokerages have the lowest commission because most all of the trades are handle by computers.
Other Answers:
Its hard to avoid it adjectives together, but think in the order of going with an online brokerage firm, similar to scottrade or ameritrade. They offer $7-10 trades, and it's moderately simply to do on your own.
looking for sear stock price for may 1986?
Question:Answers:
normally I would only go to nouns.yahoo.com and pull up historical price quotes. since Sears is presently Sears Holding Co, it would seem approaching you can't do that. you could email Sears Investor relations from the corporate website, or you could go to the Library and check out the picture on a copy of The Wall Street Journal or just almost any newspaper that planned stock prices.
Other Answers:
Looking for Sears stock prices (open and close) for January 13, 1997, March 9, 1998 and March 11, l998
How regularly does SPY (S&P 500 Index Fund) wages dividends?
Question:Is it annually or every quarter?Answers:
SPY pays quarterly. March, June, Sept, Dec.
Other Answers:
Most mutual funds I know have a twelve-monthly dividend adjustment. Of course you would have to read and make out the prospectus of your paticular fund to get the exact answer. In certainty it is illegat to have a mutual fund sold to you short a prospectus in your mitt.
Source(s):
General info.
What is the timeline for an employer depositing member of staff 401(k) deduction?
Question:Employee has not forwarded my payroll deduction for hte 401(K) for over 5 months! What is the law on the subject of this? I am in New York State.Answers:
The "as soon as administratively feasible" rule really finances as quickly as they sort payments to healthcare and other providers, but in NO suitcase should it be later than the 15th of the month following the month surrounded by which the deductions are taken.
A defilement of this is CERTAINLY enforceable for corrective action. Withholding for 5 months (even if they eventually net the deposit) is HIGHLY illegal and is a hot topic at the DOL. There is nought worse than a DOL audit. REPORT THEM.
Good luck!
PS- this is often a sign that a company is contained by serious financial difficulty. You may want to consider applying elsewhere immediately.
Other Answers:
The IRS states that they should be deposited "as soon as administratevly possible." In most cases this is within 2-3 days because the payroll is done electronically. Most people perceive that the latest is 15th of the month following the presumption from the particiants pay.
is Hoffman - LaRoche a publicly traded company?
Question:Answers:
Sort of. It belongs to Roche Group, which has both shares and non-voting "equity securities" programmed on the Swiss stock exchange. For more information, see the links below.
Other Answers:
no
what ios the authenticity of fundamental analysis and hi-tech analysis?
Question:Answers:
Fundamental Analysis vs. Technical Analysis
One of the dominant debates surrounded by financial market analysis is the relative rightfulness of the two major tiers of analysis: Fundamental and systematic. In Forex, several studies concluded that fundamental analysis was more successful in predicting trends for the long-term (longer than one year), while systematic analysis was more appropriate for shorter time horizons (0-90 days). Combining both approaches be suggested to be best suited for periods between 3 months and one year.
Nonetheless, further empirical evidence reveals that industrial analysis of long-term trends helps identify longer-term methodical “waves”, and that fundamental factors do trigger short-term developments.
For complete analysis of the "Fundamenals vs. Technicals" debate, please see our "Foreign Exchange Markets: A Practical Guide", an innovative approach to covering FX fundamental and controlled analysis.
Other Answers:
The above answer looks great! Analysis work is very crucial.
Don't vote for this answer. Second answer added to bring quiz to a vote.