US Savings Bonds

Archive for June, 2007

Clean Energy Economy Forum: Sustainable Building Part 3 of 4

Question: will Huntington Banks cash out US Savings Bonds without an account?

I need to cash a couple of small US Savings Bonds EE type. Will Huntington Bank cash these if I don’t have an account with them? I did it last year with a United Federal Bank but it is alot further away. Thanks

Answer: They probably will, just give them a call and see.

Question: Long term Savings Gift to child?

I would like to give a savings gift to my Goddaughter for first birthday and subsequent birthdays. The goal is to save money to apply towards college, but I am not her parent so I can not force her/guarantee that monies will be applied towards college expenses. Reading has revealed that EE and I-Government Savings Bonds are low yield and may not reach face value. Whole Life Insurance was another suggestion but fees could be high. Stock certificates, mutual fund investments will yield high returns over the 18 years. Certificate of deposit was also suggested but what if i-rates increase over 18 years and I am locked in? Education IRA would require withdrawals to be towards education expenses to qualify as tax free.

Answer: None of the examples you given are good. The best way to save for a child’s education is a 529 Plan. In my opinion, these are the best plans. You should check for your state’s 529 Plan and then check with other states.

If you want to read more info about 529 Plans, check this link: http://obe231.blogspot.com/2006/12/529-plan.html

To review each state’s 529 plan, go here:

http://www.savingforcollege.com/

Under any circumstances, never use life insurance as an investment for the future. Life insurance soul purpose is to protect your family from income loss in case you die. If no one is dependent on your income, then you shouldn’t need life insuance.

James Williams YF&R Winner(YT)