Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [long-term]

73 questions
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11 answers

Why should I hold stocks for the long term when the risk of more companies going bankrupt increases over time?

The longer the time frame, the larger the risk that any given company is going to go bust. If this is the case, then why is long term stock investing encouraged? Isn't it more risky to invest for the long term rather than the short term? In the long…
Flux
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7 answers

Does dollar-cost averaging just means taking risk later?

I am investing in mutual funds and hence reading and trying to learn about it. I was reading this answer which says lump sum investment is far more efficient than DCA. Well, that does not surprise me. I am aware that lump-sum will outperform…
Aastik
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21
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4 answers

In terms of safety, what's the next best thing after government bonds?

For long-term investments (10+ years, or for retirement purposes, even 30+ years), what is the closest thing to government bonds that is almost as safe as them but with greater return? The problem with government bonds in Europe/US is obvious.…
Quora Feans
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20
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2 answers

Why does the Nikkei 225 appear to be such a bad long-term investment?

For most well-developed countries, indexes of their stock markets tend to grow in the very long term. For example, look up a long-term graph of the FTSE100 or the S&P500. For Japan's Nikkei 225, this does not appear to be the case. A simple…
J. Mini
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17
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9 answers

Are ETF trackers fundamentally better than individual stocks?

My situation: I am mostly interested in long-term dividend-paying investments. My philosophy is "only sell if the company becomes fundamentally worse", so I only pick stocks of companies I feel comfortable being an owner of. The consensus seems to…
user57429
15
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3 answers

Invest smaller lump sum vs investing (larger) monthly amount

I am receiving monthly compensation for having to move due to the demolition of my apartment building. I have two choices for the compensation: Take the compensation, at $755/month for the duration of the construction project for the new building.…
Paul Holden
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14
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10 answers

Is investing all your savings into a small number of individual stocks risky?

I want to invest 90% of my savings into stock market and split between 4-6 stocks. How risky is this and is it a bad idea. I feel like the stock market goes up over time so unless something like 2008 depression happens again there is actually not…
Lightsout
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In the US, if one had no "income" other than, say, $1,000,000 in long-term capital gains, how would that be taxed?

In the US, if one had no "income" other than, say, $1,000,000 in long-term capital gains, how would that be taxed? I have read that the US tax rate for long-term capital gains is 0% if one's income is less than something in the neighborhood of…
Doug Warren
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3 answers

Should I transition to index funds now, or wait?

When I started investing, I made the mistake of trying to pick individual stocks and actively managed funds. I now believe that low-cost, passive total market index funds are the best strategy for me long-term. My new monthly contributions have been…
Ian Dunn
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4 answers

Are bonds worth the investment since they don't compound?

I was talking with my parents and they told me they have been buying 30 year EE bonds at $100 every 2 months with an interest rate of 4%. Because it is an EE bond, it does not pay a monthly coupon. So if we look at a single bond they bought, they…
rhavelka
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2 answers

How should I invest if I have much disposable income and cash on hand?

I'm a 29-year-old living in Europe and I'm looking for some investment advice. I’m fortunate enough to be earning roughly $28k per month after tax, and I currently have about $400k in cash sitting in my bank account. I’m single, my living expenses…
kettlepot
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2 answers

Is there evidence that in the long-term, leveraged ETFs perform poorly?

I came across an interesting question: "Why are daily rebalanced inverse/leveraged ETFs bad for long term investing?" Despite the topic, the answers there actually illustrated the hypothetical risk of short-term trading in leveraged ETFs (i.e. in…
Zesty
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How is holding time calculated for long-term capital gains tax?

Say I have an account with the following buying history: Date Symbol Price Quantity 01/01/2023 AAPL $300 3 shares 01/01/2022 AAPL $100 1 shares 01/01/2021 AAPL $100 1 shares If I were trying to sell some shares on 01/01/2024, am I…
jed
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How risky is it to take a low-interest (small) personal loans to invest?

Assuming that I can take personal loans of about ~10k€ (up to 20k€), how risky is it to invest in 'safe' stocks (e.g. dividend aristocrats)? Assumptions: I am a recent graduate, living in France; 0.95% / year interest, payment in 3 years; After all…
user90027
3
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1 answer

Capital Gains Tax on sale of land

My mother had in 1995 purchased a plot in Bangalore for Rs 1 lacs. We are looking to sell land for Rs. 30,00,000/-. My mother is approx 55 - 59 years old. Please inform if we need to pay income tax. Also if my mother divides the property amount…
deepu
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