US Savings Bonds

Posts Tagged ‘finance’

Question: A coworker is having a baby, we would like to buy her a savings bond or something of that nature?

Any suggestions?

A Savings bond? A CD?

Something that will mature nicely by the time the baby turns 18.
Also, what would each of us be looking at as far as price. There are 9 of us.

Thanks in advance!

Answer: If you really want the most bang for your buck (and to impress your co-worker with your financial prowess) I’d recommend a Coverdell Educational Savings Account. A Coverdell is a tax advantaged account that you can hold investments in (like Mutual Funds). I personally would recommend investing in the Fairholme Fund (ticker symbol FAIRX). The FAIRX has averaged around 16% and has only had one losing year where it only lost 1.6% (even through the early 2000s). You can set this up through any broker that offers the FAIRX fund, like Schwab (who I use for my investments), without any account fees. If you invested $1000 into this fund you could expect there to be about $15,000 (all tax free) by the time the child is ready to go to college. Below is some more information:

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Question: When you buy a United States Savings Bond, you…?

A. loan money to the government
B. borrow money from a savings and loan association
C. donate money for special government projects
D. pay for your child’s education

2. What was one reason the U.S. government started a Federal reserve system?
A. to keep the banking power of the US spread out among various districts
B. to make sure that US banks were obeying laws regarding banking
C. to have a place for banks to deposit their excess deposits
D. to provide consumers with access to funds for business expansion

Answer: aB

HEALTHCARE REFORM US Senator, Blanch Lincoln, Barbara Boxer, Chris Dodd, Ted Kaufman