US Savings Bonds

Archive for September, 2005

Question: How would you recommend Brittens invest $40,000?

The Brittens make a $100,000 a year and will have $40,000 to invest. They now rent an apartment but are considering a purchase of condo for $100,000 with a $10,000 down payment. They financial advisor recommend the following investments. condos expected to increase market value 5%, municipal bonds annual expected yeild 5%, high yeild corporate stocks expected dividends yeild 8%, savings account expected yeild 3%, high growth common stock expected annual increase in market value 10% expected yeild dividend yeild 0. Calculate the after tax yeilds on the foregoing investments, assuming the Brittens have a 28% marginal tax rate. (based on Public lasw 108-27, The Jobs and Growth Tax Relief Reconcilation Act 2003.

Answer: bond is very unpredictable in a long tern if you want to trade i recommend you that you should trade in short term

Financial Planning for Retirement by Insured Investments Advisors Group, Inc.