US Savings Bonds

Archive for August, 2009

Question: Where can I find a graph comparing historical returns of the stock market vs savings acct vs govt bonds?

The graph should compare the growth of a one-time investment (say, $1000) made in each option at some point in the past, and should include the effects of compounding interest and divident reinvestment. I’d like to specify a starting and ending date. Ideally, the tool would include an option to adjust for inflation.

I’ve seldom seen such comparisons in print, and have yet to find such a graphing tool on the internet. Yahoo Finance charts compare performance of stocks, indexes, and treasuries, and allows adjustments to start/end dates. However, this tool does not include divident reinvestment, and does not include savings-account returns as a reference point.

I want to show sceptics that, over the long term, the stock market has consistently outperformed other investments, especially “no risk” options such as regular savings accounts and C.D.’s.

Answer: Standard and Poor (S&P) have a link on their website that shows a historical comparion between those you have labelled here. I believe the timeframe is from the Depression to the present.
Its a good source to have in your favorites on your web-browser too.
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By the way, I agree whole-heartedly with your intentions here!!!
Most of those ’skeptics’ are comprised of Financial Advisors that do not want you taking your investments and your financial future into your hands. They would rather live off of your success. I know because I use to be a Financial Advisor, and left because the B/D I was working for found it inappropriate that I was teaching my clients how to monitor their portfolios in order to take on their financial future for themselves. Most FAs don’t know crap about financial investing, just how to get the software to do it for them…they are mostly parasitic salesmen. I only know one in whom I trust.

WWII Propaganda Film: Our Enemy — the Japanese (Part 1 of 2)

Question: US Savings Bond Tax HELP?

Why do i have to file the tax on a savings bond? And what happens if i lost the redemption statement? Could i get in trouble if i don’t file it?

Answer: It’s interest, and that’s taxable income. At the end of the year the bank where you cashed it will send you a 1099-int and also report the info to the IRS. If you don’t show it on your return, you won’t get in trouble exactly, the IRS will just sent you a bill for what you should have paid, plus interest on that.

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How to use U. S. Savings Bonds to Fund a 529 plan

For qualified U. S. Savings Bonds issued after 1989, interest accrued may be federal income tax exempt, if the U. S. savings bond is redeemed to pay qualified higher education expenses.

For purposes of this tax exclusion, qualified higher education expenses include tuition, Contributions to 529 Plans and expenses for certain fees.

In order for you to benefit from the U. S. Savings Bonds tax exemption, make sure you complete each of these steps:

Note:

Redemption and the deposit of the savings bond redemption proceeds into a Higher Education 529 Fund must occur within the same calendar year.