US Savings Bonds

Archive for January, 2006

Question: Ok so I cashed in $4000 of US Savings Bonds last year.that’s taxable interest right? ?

if so . when should i get my tax papers?
deedee
i think you’re right. know if i only knew what i did with that paper.

Answer: Yes it is. The holder of the bonds, or the custodian should be preparing a 1099 to send to you. His or her deadline was January 31st. If you haven’t received it in a couple more days, you might call them to inquire.

All About Taxes 3 – Tax Credits and Deductions for 2009

Question: How do Savings Bonds Interest rates work?

Are they fixed interest rates in that when you buy it, it keeps increasing for 30 years at that rate? Or are they ever changing, depending on the economy.

Therefore, do you get the most if you cash out when the economy is good or bad, or should you just wait until the end of the 30 year period?

Answer: Lets say you buy a bond today at 3.89% interest.
Note that interest rates could easily double within a couple of years.
Say in 3 years the 30 year bond is at 7%.

If you try to sell that 3.89% bond, no one on earth will want to buy it.
You will take a hit on your principal.

Google “Bond Bubble”
Only buy it if you KNOW you will hold it the 30 year term.
Consider cd’s at your broker
I found a 10 year paying 3.4% interest – Schwab and Fidelity have the best.
They are like bonds when they are brokered – so be careful if you don’t plan to hold it.
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Choose the right savings account

Question: What would you do with $5 million dollars?

I would pay off my student debt, purchase an affordable home with these low interest rates, fully fund a Roth IRA, ladder some CDs, treasury bonds, and probably buy shares of an S&P 500 Index Fund. A high yield savings account and a money market fund would be in order too. I’d probably put around $100,000 in gold.

I would also buy shares of a REIT and purchase some rental property to receive monthly income. It would probably be towards senior citizens though.

(I know, I’m being greedy.)

Answer: If I got 5 million dollars I would give money to people in my family I would donate to charities(tax return!)
I would buy some more houses I already have two but now is the perfect time to buy…I would flip them…

I am not into cars and clothes like that so money that I did not give away I would put to work…

Personal Finance : How to Purchase a Savings Bond