US Savings Bonds

Posts Tagged ‘investing’

Classic US Savings Bonds with Bob Hope commercial 1967

Social-Media-Monday: Tools For Transitioning

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

Any suggestions?

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:

Launching Lifeboats Before the Ship Sinks