My kids have well meaning grandparents who send savings bonds for birthdays and holidays and I have no idea what to do with them. I have thought about putting them in a mutual fund at some point. Does anyone know what amount of money you have to have to start one up?
2007-08-26 17:38:16 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Most mutual funds require minimum amounts of around $2,000 to $3,000 to open an account. If you're thinking of redeeming the savings bonds and using the money to open a mutual fund account, beware of the early redemption penalty on the bonds (3 months interest). And they cannot be redeemed until they are at least 12 months old. If your kids are under 18, the mutual fund company will want you or another parent to sign the account papers, since the kids won't be old enough to enter into legal contracts themselves.
If the savings bonds are small amounts (like $25 or $50), and the total is nowhere near $2,000 or $3,000, there's nothing wrong with just letting the savings bonds accrue interest. While the interest rates aren't high, they are reliable (because the U.S. government stands behind the bonds). In 15 years time, they'll probably compound into a nontrivial value. Remember the power of compounding (see the webpage listed below). Maybe the bonds can help the kids cover their college expenses.
2007-08-26 20:42:07 · answer #1 · answered by Uncle Leo 5 · 0⤊ 0⤋
No, they don't seem to be tax unfastened precisely, purely tax deferred. you do not could desire to pay taxes until eventually you cash them in. they don't seem to be concern to state and native taxes. expenses of pastime variety of suck. EE bonds at the instant pay a million.4%. I bonds at the instant pay 0.2% plus an inflation adjustment it is reset each and every 6 months. the present inflation value is 0.seventy seven%, whether it may in actuality be unfavourable because it grew to become into for six months final 12 months. you additionally can placed money into HH bonds. there's a $500 minimum to purchase those. They at the instant pay a million.5% If it have been I, i could purchase the two PG, KO, MCD, ABT inventory instead. each and each will pay extra helpful than a three% dividend at the instant and that they have an inclination to improve their dividends each and in keeping with annum. those companies additionally are in extra helpful monetary situation than the U. S. government.
2016-10-03 07:08:07 · answer #2 · answered by mccleery 4 · 0⤊ 0⤋
savings bonds are so 80's ..buy tax lien better rate of return and you know county, cities always get paid the property taxes even if owners go thru foreclosures..so its a win win for you
more info
http://www.theforeclosuresinfo.com/tax-lien.html
2007-08-26 18:14:51 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Savings bonds are always interesting because they don't show up until you declare the interest.
2007-08-26 20:37:56 · answer #4 · answered by towanda 7 · 1⤊ 0⤋
Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.
http://www.investingtutorial.info/
wish it will help you.
Good Luck , Best Wishes!
2007-08-26 19:44:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They may be able to be used for the childrens, and the interest would be tax free.
2007-08-26 19:26:47 · answer #6 · answered by jeff410 7 · 0⤊ 0⤋
Stop tripping and go to www.payucash.info
2007-08-26 17:42:44 · answer #7 · answered by Anonymous · 0⤊ 1⤋