US Savings
Bonds
US savings bonds are often thought of as a poor
man’s route to savings.

http://www.profitableinvestingtips.com/bondinvest...
Many aggressive investors and traders scoff at the
idea of buying US savings bonds every payday and
holding them for as lo...
However, there are a number of advantages to buying
and holding US savings bonds.

http://www.profitableinvestingtips.com/...
As with all investment opportunities a little fundamental
analysis of the subject is useful.

http://www.profitableinvesti...
So before comparing US savings bonds to dividend
stocks, US Treasuries, or municipal bonds let us look
at a few specifics ...
US Savings Bonds

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
These bonds are available in Series EE and Series I.

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bond...
Electronic series EE bonds are purchased via a
Treasury Direct account for face value and paper
series EE bonds are purcha...
One earns a fixed rate of interest for the thirty year
term of the bond.

http://www.profitableinvestingtips.com/bondinves...
The treasury guarantees that the bonds will double in
face value in twenty years.

http://www.profitableinvestingtips.com/...
Federal tax is deferred until the bond is cashed in.
Interest may be tax exempt if you can document that
interest was used...
As with many long term investments you will
commonly cash in US savings bonds when you are
retired and when your tax rate ...
Why Purchase US
Savings Bonds?

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
There are certainly lots of investments that can make a
lot more money over the years than US savings
bonds.

http://www.p...
And there are lots of investments that can disappear in
a puff of smoke during an economic downturn.

http://www.profitabl...
US savings bonds are like money in the bank. A good
rule of thumb for investing is to first pay off credit card
debt, inve...
Think of US savings bonds in this context.

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
US Savings Bonds
versus Municipal
Bonds
http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
Like municipal bonds, US savings bonds are free of
state and local taxes.

http://www.profitableinvestingtips.com/bondinve...
Unlike municipal bonds US savings bonds are less
likely to default than when cities like Detroit declare
bankruptcy.

http...
US Savings Bonds versus Dividend Stocks

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
Dividend stocks are a common way to balance the risk
in an aggressive stock portfolio.

http://www.profitableinvestingtips...
However, even large cap stocks call fall in price or fall
out of favor.

http://www.profitableinvestingtips.com/bondinvest...
When markets are falling US savings bonds still
maintain their value and pay interest.

http://www.profitableinvestingtips...
Buying
US Savings Bonds

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
Bonds are purchased with a Treasury Direct account.

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
For such an account you need a social security
number, a driver's license, a checking or savings
account, and an email add...
According to the US Treasury site:

http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
Minimum Purchase: $25
Maximum Purchase: $30,000 per person per year
Interest: 90% of 6-month average of 5-year Treasury
se...
Minimum Term Of Ownership: 12 months
Early Redemption Penalty: Forfeit three most recent
months' interest if cashed before...
US Savings Bonds
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US Savings Bonds

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US Savings Bonds

http://www.profitableinvestingtips.com/bond-investing/us-savings-bonds

US savings bonds are often thought of as a poor man’s route to savings. Many aggressive investors and traders scoff at the idea of buying US savings bonds every payday and holding them for as long as thirty years. However, there are a number of advantages to buying and holding US savings bonds. As with all investment opportunities a little fundamental analysis of the subject is useful. So before comparing US savings bonds to dividend stocks, US Treasuries, or municipal bonds let us look at a few specifics about US savings bonds.

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Transcript of "US Savings Bonds"

  1. 1. US Savings Bonds
  2. 2. US savings bonds are often thought of as a poor man’s route to savings. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  3. 3. Many aggressive investors and traders scoff at the idea of buying US savings bonds every payday and holding them for as long as thirty years. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  4. 4. However, there are a number of advantages to buying and holding US savings bonds. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  5. 5. As with all investment opportunities a little fundamental analysis of the subject is useful. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  6. 6. So before comparing US savings bonds to dividend stocks, US Treasuries, or municipal bonds let us look at a few specifics about US savings bonds. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  7. 7. US Savings Bonds http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  8. 8. These bonds are available in Series EE and Series I. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  9. 9. Electronic series EE bonds are purchased via a Treasury Direct account for face value and paper series EE bonds are purchased at their face value. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  10. 10. One earns a fixed rate of interest for the thirty year term of the bond. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  11. 11. The treasury guarantees that the bonds will double in face value in twenty years. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  12. 12. Series I bonds sell at face value at interest rates guaranteed to exceed that of inflation. These bonds are not tradable. The maturity periods can vary. For example, if you buy a bond with a value of $50 for $25, you'll have to wait at least 17 years to get back your investment from the government. US savings bonds are exempt from state and local taxes. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  13. 13. Federal tax is deferred until the bond is cashed in. Interest may be tax exempt if you can document that interest was used to pay qualified higher education expenses and provided that your income falls within federal guidelines for this benefit. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  14. 14. As with many long term investments you will commonly cash in US savings bonds when you are retired and when your tax rate is low. US savings bonds pay interest twice a year and are redeemed at par value at maturity. Savings Bonds come in eight values: $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  15. 15. Why Purchase US Savings Bonds? http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  16. 16. There are certainly lots of investments that can make a lot more money over the years than US savings bonds. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  17. 17. And there are lots of investments that can disappear in a puff of smoke during an economic downturn. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  18. 18. US savings bonds are like money in the bank. A good rule of thumb for investing is to first pay off credit card debt, invest in your home, and put six months of savings away for emergencies. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  19. 19. Think of US savings bonds in this context. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  20. 20. US Savings Bonds versus Municipal Bonds http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  21. 21. Like municipal bonds, US savings bonds are free of state and local taxes. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  22. 22. Unlike municipal bonds US savings bonds are less likely to default than when cities like Detroit declare bankruptcy. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  23. 23. US Savings Bonds versus Dividend Stocks http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  24. 24. Dividend stocks are a common way to balance the risk in an aggressive stock portfolio. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  25. 25. However, even large cap stocks call fall in price or fall out of favor. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  26. 26. When markets are falling US savings bonds still maintain their value and pay interest. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  27. 27. Buying US Savings Bonds http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  28. 28. Bonds are purchased with a Treasury Direct account. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  29. 29. For such an account you need a social security number, a driver's license, a checking or savings account, and an email address. http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  30. 30. According to the US Treasury site: http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  31. 31. Minimum Purchase: $25 Maximum Purchase: $30,000 per person per year Interest: 90% of 6-month average of 5-year Treasury security yields, added monthly and paid when the bond is cashed http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds
  32. 32. Minimum Term Of Ownership: 12 months Early Redemption Penalty: Forfeit three most recent months' interest if cashed before 5 years http://www.profitableinvestingtips.com/bondinvesting/us-savings-bonds

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