US Savings Bonds

Archive for December, 2009

Unlike paper EE Us Savings Bonds, HH US Savings Bonds are current income US savings bond securities. HH US Savings Bonds pay interest every 6 months until maturity or redemption whichever comes first. H US Savings Bonds are the predecessor to the HH US Savings Bonds. HH US Savings Bonds and are no longer issued by the U.S. Treasury. 

Series HH Bonds and Series H Bonds Discontinued After August 31, 2004

The United States Treasury Department announced that Series HH US Savings Bonds will no longer be issued after August 31, 2004. 

This means that after that date Series EE US Savings Bonds and Series E US savings bond holders will no longer be able to rollover accrued Series EE US Savings Bonds and Series E US Savings Bond interest into Series HH US Savings Bonds and continue to defer taxation. 

Possible Alternatives to Series HH bonds and Series H bonds for Series EE Us Savings Bonds and Series E Us Savings Bonds holders

• As an alternative investment strategy, which has an increased level of risk that may not be suitable for everyone, suggest, if certain requirements are met, that you redeem the Series EE Us Savings Bonds and Series E Us Savings Bonds now and roll the proceeds into a Section 529 plan for your children.

The redemption will be tax free, and growth, if any, in the 529 account is tax free (not merely tax deferred), as long as the assets are used for qualified education expenses. There are certain risks involved when investing in a 529 plan, including the possible loss of principal. 

• You might want to compare the value of the Series HH US Savings Bond Tax deferral with the cost and benefit of selling Series EE Us Savings Bonds and Series E Us Savings Bonds and paying income taxes now on the tax deferred Series EE Us Savings Bonds and Series E US Savings Bond interest.

In return, you can reinvest in investments that pay qualified dividends and can eventually be sold and be taxed at low long term capital gains tax rates. Also, other investments possibly receive a step-up in basis upon death, whereas Series HH savings bonds (being income in respect of a decedent) do not. You should also compare the investment risk of government bonds versus other investments. 

• You might want to explore suitable tax deferred savings vehicles, such as annuities, if you own Series EE Us Savings Bonds that will mature soon after August 31.

Annuities have a higher level of risk than Us Savings Bonds and may not be a suitable substitute for you. There is a 10% penalty if the annuity owner receives a distribution of annuity income before 59 �. 

Question: Help with economics h.w. thank you.?

‘Liquidity’ is a measure of how fast an asset can be coverted to immediate purchasing power without losing appraised value. Real estate and jewelry can be sold quickly, but only when the price is considerably below some recognized market value. Financial instruments can be sold more easily with less loss due to immediate cash needs. However, these savings accounts, cds and bonds rarely earn the rate of return available with more tangible assets. Discuss your views on the need for liquidity versus committing your money to less liquid investments in return for higher earnings as a person evolves from young adult to middle age to the golden years. This will reflect your perception of the need for daily living expenses and current possible emergencies versus a need to prepare for retirement.

Answer: It’s probably better to have higher liquidity when you are younger, because your average propensity to save is lower, and your average rate to buy is higher. Therefore you will need more cash, as there are less funds avaliable to service your needs. However, it is good when you are getting to your middle age, after repaying loans/morgaes etc. to start investing in the future (or even earlier) this would probably be easier, aas you would have a higher income, whichh can then be diversified into longer term investments with a higher return

HNB Bond Seminar

Question: a set sum of money deposited with a bank for definite lenght of time describes a?

passbook savings account ..debit card account..us goverment series hh savings bond..or cd

Answer: cd

John Wayne Commercial US Savings Bonds 1976