US Savings Bonds

Posts Tagged ‘Savings Bonds’

Question: Will Barack Obama order the IRS to issue tax refunds in the form of Savings Bonds?

If you are due $1000, the government will purchase a $500 bond and will mature in ten years.

Answer: Have not heard of this one to date. It could be

ROAD TO RUINATION

Question: should our daughter cash in her Savings Bonds?

my daughter has several Savings Bonds given to her over a period of 10 years. She is now 17 and going to college next year. Should she
deposit her Savings Bonds in her college account now or continue to save them?

Answer: hold off until she needs the $, the bonds will continue to grow in interest

928 Who made money during the great depression? Part 1

Question: Some question about the tax plan?

It’s my term project which has two questions.

First, for purposes of retirement savings and considering the tax implications, is it better to fund a retirement plan with stock and hold taxable bonds outside of a tax-sheltered retirement plan or vice-versa?

Second, if I find my wife and I erred in investing in Tranditional IRAs and would prefer to be in Roth IRAs. What suggestions can you offer?
Thank you for any answer.

Answer: Your first question cannot be answered because it depends on your investment goals, income level, and other factors. Are the stocks income producing that pay dividends or growth stocks on which you earn capital gains? Capital gains are taxed at a lower rate, and in the retirement plan they will be taxed at your regular rate when you withdraw them. But the plan may grow much faster than the bonds. Who is managing the taxable account? If you manage it yourself, can you perform as well as the retirement plan custodian? There are too many unanswered questions.

You can convert a traditional IRA to a Roth, but you have to pay the tax on the withdrawal. Whether this is in your best interest again depends on many factors. Check the IRS regulations and perhaps get advice form a qualified financial planner.