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    Saturday, October 19, 2019

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing

    Daily Advice Thread - All basic help or advice questions must be posted here. Investing


    Daily Advice Thread - All basic help or advice questions must be posted here.

    Posted: 19 Oct 2019 05:09 AM PDT

    If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions. If you are going to ask how to invest you should include relevant information, such as the following:

    • How old are you?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (buy a house? Retirement savings?)
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors?)
    • Any other assets? House paid off? Cars? Expensive significant other?
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • Any big debts?
    • Any other relevant financial information will be useful to give you a proper answer.

    Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq

    Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions!

    submitted by /u/AutoModerator
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    Why do some investors take companies private?

    Posted: 19 Oct 2019 03:18 AM PDT

    I have read somewhere that when a company is taken private it can focus on long term goals instead of quarterly earnings, but what about Apple or Coca Cola? These companies are public and still they have a long term approach to their business. I also don't see how less reporting requirements are good for the stakeholders. There seems to be no obligation for making financial statements. They also can't easily raise capital anymore once they are delisted. Can somebody please elaborate to me the advantages of private companies?

    submitted by /u/6Chthonic0Serpent9
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    There has been a rapid shift in opinion on this sub regarding the state of the global economy.

    Posted: 19 Oct 2019 12:45 AM PDT

    A few months ago, mention of a global downturn on this sub was met with derision and downvotes. Now, similar comments are generating stimulated and popular discussion.

    Just thought that this was interesting, insofar as this sub is representative of general investor sentiment.

    submitted by /u/DoItYrselfLiberation
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    I'm kind of tired of seeing this Motley Fool ad everywhere!

    Posted: 19 Oct 2019 10:50 AM PDT

    I need financial advice!

    Posted: 19 Oct 2019 09:00 AM PDT

    Hey I'm in my mid 20's and I managed to save up $50k from my teaching job. I have no credit card debt or loans and I'm looking to invest my money.

    I've been brain storming ways to invest such as buying an apartment/coop in up and coming cities (Dallas in highland park/north Dallas- the most popular region in Dallas) and renting it out. Or even just buying a home in my own neighborhood- NYC. I just wanted to see what others would recommend based off their own experience.

    I am scared of the stock market since I have no experience so I have nothing invested there so far.

    submitted by /u/AmnaWamena
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    Is this possible with stocks?

    Posted: 19 Oct 2019 08:28 AM PDT

    A friend of mine is a large commercial real estate investor, he owns apartment buildings, small retail centers and industrial buildings. He talks about how great real estate is because of the ability to leverage and refinance. From what I understand, he does a cashout refinance every few years to tap into the equity of his properties. He gets giant chunks of cash in his pocket tax free whenever he does this and he keeps the properties. He uses the money to make investments or for personal use.

    He says thats not possible with stocks, at least not without huge risks. I was wondering, is there an equivalent to a "cashout refinance" to equity investing?

    submitted by /u/hiltonheights
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    Vanguard investors: Why do you love Vanguard?

    Posted: 19 Oct 2019 08:56 AM PDT

    For the investors here with most of their net worth at Vanguard, why is that?

    What are some of your favorite funds and why?

    What are some funds on your watchlist?

    Most of my net worth is with Vanguard because they offer a vast selection of low cost funds that serve so many different strategies. I love that some of their funds hold equities and bonds in a single fund and automatically rebalance.

    My current holdings:

    VBIAX - My core taxable fund that's 60% US equities and 40% US bonds in a single fund.

    VIGI - Tracks 400 international dividend growth companies, held in my taxable account. I opted for the ETF instead of the mutual fund equivalent, VIAAX, because the mutual fund charges purchase and redemption fees of 25 bps.

    VMFXX - Highest yielding Money Market fund I've found that costs 11 bps. Opted for VMFXX over VMMXX (Prime MMF) because in distressed situations, Vanguard can restrict liquidation of VMMXX (however this hasn't ever happened to my knowledge). All my cash savings are held in VMFXX. 2 of my checking accounts are directly linked to VMFXX.

    VASGX - LifeStrategy growth fund for my Roth IRA fund that's 80% global equities and 20% global bonds in a single fund.

    Watchlist: VBR/VSIAX (small-cap value), VGT (tech sector).

    Note: I already track the S&P 500 in my Fidelity 401k which is why I don't hold VFIAX (VOO).

    submitted by /u/4pooling
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    Future trading

    Posted: 19 Oct 2019 10:57 AM PDT

    Does anyone know who to follow for trading oil futures?

    submitted by /u/Jholler905
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    What's your favorite (growth) stock that no ones ever heard of with high potential?

    Posted: 19 Oct 2019 07:52 AM PDT

    We always talk about the same 10-20 stocks in here. I rather talk about growth stocks to hold in retirement portfolio.

    Mine is $BEAT, a biotech company that makes remote cardiac monitoring devices. It's not obscure by any means but theyre still relatively small and i do wish i had come upon it sooner. They've been consistently growing rev and earnings for years now and are dominating the remote cardiology market. Among other similar products they make the heart monitors that go in apple watches and given apple's strong stance on health tech it isnt unfathomable to imagine apple buying them someday. Thats $BEAT. whats yours?

    submitted by /u/FrankUnderwood268
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    New to Options, have some questions

    Posted: 19 Oct 2019 09:48 AM PDT

    Hi All,

    I just opened up a practice account to learn how to trade options and I have a couple questions I'm hoping to get some help with.

    Firstly, when going long, I buy to open, so to sell that option is it sell to close?

    Secondly, If I feel SPY will go down this week is it better to buy a contract that ends at the end of the week, end of the month or end of the year?

    Thirdly, when buying an option is it better to buy ITM, ATM, or OTM, If I think SPY will go down this week?

    Finally, are there any issues getting rid of the options?

    Thanks for any help, and other advice would be appreciated.

    submitted by /u/ronnierobot
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    Early Pension Payout / Lump Sum (GE)

    Posted: 19 Oct 2019 11:34 AM PDT

    Background: I worked for GE for ~7 years. I am sure that you are all aware of the current situation that GE is in and, as such, they are offering me the following:

    • Option A (Lump Sum Payment): $38k (payable 12/1/19)
    • Option B (Early Monthly Payments): $161 / mo (beginning 12/1/2019)
    • Option C (Payments at Retirement): $801 / mo (beginning at age 60; 2045) or $1,068 (beginning at at 65; 2050)

    Key Stats:
    - Age: 33 - Marital Status: Married - 401k: $210k - Savings / Investments: $230k - Current Career: $330k salary (4 yrs with company)

    Obviously, the lump sum is cheaper to GE in the long run and I understand the related ramifications. Other than try to calculate my expected life expectancy (5-years vegan, very active runner / cyclist, etc.) or estimate investment gains over the next 32 years, I wanted to pulse the group on the best option here. There are 100,000 being offered this lump sum option, so this could be helpful to others as well, but of course everyone's situation is unique.

    Thank you in advance for the help and guidance!

    submitted by /u/Nupey03
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    Chinese Based Businesses

    Posted: 19 Oct 2019 07:04 AM PDT

    Are Chinese businesses stocks dropping due to the political situation? If so is it smart to buy in now? What companies would you all suggest?

    submitted by /u/mwhite20131
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    How can there be more futures contracts than the available commodity?

    Posted: 19 Oct 2019 09:29 AM PDT

    I'm currently reading a textbook where it says when a company tries to "corner the market," they buy a ton of futures contracts and do not close out their position, so that the number of outstanding futures contracts may exceed the amount of the commodity available for delivery.

    As the maturity of the contract is approaching, holders of short positions will realize they can't fulfill their obligation, so they will be desperate to close out their position (by buying very expensive futures).

    My question is: How can there be more futures contracts than the available commodity?

    Who will offer futures but don't have the product for delivery? Because thats the only way there can be more futures than the available commodity. I understand that if you long a Dec futures for corn and short a Dec futures for corn, they cancel out...but doesn't that simply transfer the obligation to buy the corn to someone else? I don't think the obligation to buy just "disappears" from the market.

    submitted by /u/Energized_Husky
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    What is the best savings account/ ISA account today (October 2019)

    Posted: 19 Oct 2019 02:17 AM PDT

    Looking to save money. Which account do I open?

    submitted by /u/maarcinl
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    0-Small dividend, venture stocks under $20?

    Posted: 19 Oct 2019 07:07 AM PDT

    I'm a conservative buyer looking to increase risks for higher pay offs. Ive learned that companies that don't provide dividends are either A) doing badly, or B) investing in themselves rather than paying share holders.

    My U$20"venture" portfolio consists of LLNC (Security Tech Company) PG&E (The only major electric company in South Ca., Was sued by its own consumers, who are paying for their own lawsuit via higher premiums) Aurora Cannabis : (Trendy, possibly the next alcohol) Gern (Li Batteries for forklifts???) iAmGold ("Gold tends to be inversely proportional to the stock market" - some-know-it-all "Pro Investor") Inpixon (fun fact about this Solar Company, was once at $50k/share until sht hit the fan. Now it's at $0.111 per share) GE (shadow of their former selves, selling rather than inventing) U.S Steel (great brand, Carnegie's first, popular with conservatives, currently oversaturated, but increases during times of war and construction.) AKS Steel (tiny penny stock, but at $2/share, a few penny increase generates massive returns.)

    That's all I have so far. Planning to buy AMD, Anyone have other ones?

    submitted by /u/WarPigs02
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