US Savings Bonds

Archive for December, 2008

State tax exempt interests are usually found in government securities such as Tax Exempt Bonds. State tax exempt interests are exempt from either:

• federal taxes,
• state taxes, or
• local taxes.

US government bonds

Most United States government bonds are Tax Exempt Bonds or tax free bonds. US Savings Bonds, being government issued bonds, are indeed Tax Exempt Bonds. These US Savings Bonds that are tax free include:

• series EE US Savings Bonds,
• series HH US Savings Bonds, and
• other US Savings Bonds.

Bonds with state tax exempt interests are attractive investments

The government issued bonds with state tax exempt interests, federal tax exempt interests or local tax exempt interests are popular investments among conservative investors. Usually investors who invest a large amount of money in bonds and are in high tax brackets are more interested in Tax Exempt Bonds with state tax exempt interests. For a list of government Tax Exempt Bonds and securities, see below.

• Tax Exempt Bonds

Question: us savings bond?

What excatly is a Saving Bond and How do they work?

Answer: The bond is money you are loaning the U.S. Government. After you buy the bond, then it start to grow with interest. After the bond matures. Then you can cash it in. All bonds are bought at half face value. Example: a $50 bond is bought @ $25 and say a $100 is bought @ $50 and up. The down side is that you have to pay taxes on the interest that you gain on the bond. They also take some time to turn over to full value. Yet it is a safe place to invest. You will not get rich fast however.

Bond Market : How to Cash a Savings Bond at a Local Bank

Question: What would happen to US Bond Mutual Funds if the Dollar crashed?

I’ve been curious about something over the past few weeks and can not seem to really find anything that really addresses this. I could be looking in the wrong places though. What could happen to US Bond Mutual Funds if the US Dollar were to really crash?

The bond market and stock market tend to react differently as I understand it to the weakening dollar.

I ask this because initially I’ve decided to, besides having money in CDs, my 403(b), and a money market savings, invest in a US bond mutual fund. The one I picked seems pretty solid and has a decent history of returns. CPTNX from American Century is the fund I’m referring to. I’m using Scottrade to invest in it since the initial purchase was low through them and Morningstar has given it a 4 star rating. Also my 403 is already investing in world stocks so figure no need to double up just yet. Just turned 25 so I figure I still had time as I pay down student loans. Just that the dollar has me a bit worried.

Thanks.

Answer: It won’t make much of a difference since there isn’t any foreign exchange exposure here. They’re US bonds committed to pay interest and dividends in dollars. As long as everything is quoted in dollars, the dollars will just be worth less when you want to buy something imported or take a vacation in Europe.

The Key to Unlocking “Rich Get Richer” Wealth!