My dad started getting my daughter a savings bond every month. But then we found out that they take like 20 years to mature. Is there anything similar to a bond that will mature faster, and possibly more and for around the same price as a savings bond.
I'm not exactly sure how long they take to mature, but I know it's a long time (20 yrs sounds about right to me). Also the ones she has are EE.
2007-04-10 18:05:20 · 5 answers · asked by Sugar Booger 3 in Business & Finance ➔ Investing
Diana... I'm not sure about people retiring, but I know when I was younger, I would always get bonds from grandparents. Same as my mom. When I got old enough, I had a large amount of money when I cashed them in. (Sadly I was an idiot and basically threw it all away)
2007-04-10 18:13:27 · update #1
Cam...lol my daughter is only 3 lol. My dad started getting her the bonds so that when she's older she can have a nice little pile of cash.
2007-04-10 18:16:45 · update #2
Judy... I'm aware that we can cash them any time. However, they're $50 bonds (cost $25 to buy). The sad thing is, it will take them 20 years to be worth $50. Any time before that they will only be worth at least a TINY bit more than $25. Which is kinda pointless, I think.
Thank you all so much for the answers so far!!!
2007-04-10 18:25:52 · update #3
Savings bonds don't earn much interest - all they really do is beat inflation. But they are considered zero risk. I don't know why your grandfather is buying 20 year bonds you can buy bonds that mature in shorter periods of time.
I would suggest that you open an education account with Vanguard and have your father contribute money to that. The returns will be higher, although with some volatility (i.e. some months it goes up, other months it goes down). A Vanguard index fund should return about 10% a year, which means that it will double in value in about 7 years. That's a pretty good return.
2007-04-10 18:41:37 · answer #1 · answered by tyates999 2 · 0⤊ 0⤋
You can cash savings bonds before they mature. But if your daughter is only 3 now, she'll be 23 in 20 years, a nice time to have some extra money available.
2007-04-10 18:21:26 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
savings bonds arent bad if you dont mind waiting the 30 years to cash them in.
you can make more putting the cash in a high yield savings account through an online bank like ing or hsbc, or by putting the money into an indexed mutual fund for her.
2007-04-10 18:10:26 · answer #3 · answered by comic book guy 5 · 0⤊ 0⤋
Invest in mutual funds for her...you can start some for really cheap..they will grow faster than bonds. Don't people who are close to retiring buy bonds??
Good day!
2007-04-10 18:10:06 · answer #4 · answered by dianah 4 · 0⤊ 0⤋
how much $ is she investing?
She could look into giving out small second mortgages if the realestate market is strong in your area
exceptional returns and quite secure
2007-04-10 18:14:35 · answer #5 · answered by cam 2 · 0⤊ 1⤋