US Savings Bonds

Archive for June, 2008

Question: Cash ISAs. Is there any advantage in investing in tax free cash ISAs when the net interest is the same or?

lower than the net interest offered in other taxable savings such as fixed rate bonds?

Answer: Bonds are risky (bond prices go up & down), so ‘yes’, especially if your ISA is part of your Retirement planning.

The advantage of Tax Free ISA is that, as years pass, the ‘interest on the interest’ starts to be come significant .. as does the Interest on the capital …

If you save £3,500 per year for 20 years your capital alone is worth £70,000 … if you got 4% compound interest (Tax free) on this, your balance after 20 years would be over £100,000 == 4% income on this is £4000 and suddenly Tax makes a big different …

Spread sheet it == the PRIMARY killer of long tern wealth from Investments of any type is TAX …

Question: Where can I find the documents to purchase US Savings Bonds directly from the Treasury?

I mean the actual paper ones–none of these online crap-accounts.

Answer: Many banks and other financial institutions offer this service.

Your bond will be printed following your instructions and mailed to you within 15 business days.

http://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm

http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eecomparison.htm

Stock Market Crash & The (next) Great Depression Ahead?