US Savings Bonds

Posts Tagged ‘lifehacks’

Question: How do Savings Bonds work?

Why are they good investments?

Answer: A savings bond is the government borrowing your money for a set period of time. They are the extended version of instruments such as T-Bills and T-Notes. US Gov’t backed securities are essentially “risk-free” investments, and if you know anything about the risk-reward ratio, means they yield the smallest amount of interest allowable. Essentially with a Savings Bond, you put in some amount of money(25-250) and wait 20 years, and your money doubles. This may sound like a great deal, but you’re actually only earning about 3.5% a year, compare that to 5% in a cd, maybe 5.5 in a MMA, and an average of 11 in stocks. So if earning money is your goal(which you are investing) then Savings Bonds are certainly not good investments(unless you cannot tolerate any level of reasonable risk).

Finance & Investment Tips : What Is a US Savings Bond?

Question: US SAVINGS I BOND…HELP PLEASE.?

US SAVING I Bonds ARE PAYING 0% FROM MAY TO OCT 2009.

MY QUESTION IS: DOES THAT 0% INCLUDES INFLATION? SO IF I INVEST IN I BOND WILL I GET 0% BACK?

SO…LETS SAY $100 IN I BOND TODAY WILL EQUAL, $100 IN 20 YEARS OR 40 YEARS? ( I THOUGHT THAT I BOND HAVE AN INTEREST % PLUS INFLATION RATE ADDED TO IT. THANKS PLEASE HELP

Answer: The 0% is *due* to deflation. The formula actually came up negative, but they don’t make you pay them….

Don’t buy I-bonds for the next 6 months.

Personal Finance & Money Management : What Is a Money Market Savings Account?

Question: Stopping Extravagant Christmas gift giving?

Does anyone have any decent, not snotty ideas on how to promote a less extravagant holiday this year? My in-laws (bless their hearts) insist on spending a large amount of money on each of us every year, including our 2 kids. While I am VERY greatful, I feel the money could be put to better use, like donating to a charitable cause (my first choice) or putting money into a savings account or saving bonds for our kids. While we are not rich by any means, we are able to afford the things we need and ocassionally even splurge on things we want. Our kids do not need more clothes or more toys, and suggestions for educational items are usually thrown by the wayside. I do not want to be rude or cause any sour feelings over the holidays. My side of the family has adopted a no-gift giving rule, and we are all much happier (and less stressed) ever since starting this. Our gift to each other is our presence, not our presents. Any Positive suggestions? Please don’t be rude!

Answer: While I think that it’s a beautiful sentiment, you just can’t teach an old dog new tricks. Your in-laws are set in thier ways and you can’t change that. As much as you and your children may not need the extra gifts, I’m sure that it gives your in-laws great joy to buy them for you. What I suggest is that during the summer months, you could take those extra things, sell them at a garage sale, and donate that money to charity. Taking them back right away is an insult to the in-laws and unfair to the kids who have had gifts dangled and taken away. I’m afraid that confronting the in-laws would cause hurt feelings by way of insulting their traditions. Just smile and accept the gifts in the spirt that they were intended.

Senate Session 2010-04-15 (11:02:56-11:50:33)