okay my nephew is 3 months and i want to get him savings bond?

Question

maybe 100$ every b-day and christmas perhaps gerber bonds because i heard they match whatever u put in okay my question is how much would that be when hes 21 or 18 years old? 2nd question how do i do the gerber bonds or should i go to the bank? and why

Answer 1

I don't personally know about gerber bonds but I do about the bank bonds...they get very little interest...if you buy a bond from the bank, it takes about 12 to 17 years just to mature.

Answer 2

Bonds double at maturity - a $50 bond costs $25. Maturity varies depending on the type of bond. After maturity, the Government pays interest.

So lets say you buy a $100 bond now, which has a maturity of 20 years. It will cost you $50. He can cash the bond, for the $50, in a year. In 20 years, he can cash it for $100. If he waits to cash it, he may get more than $100, depending on interest rates.

You can buy the bond directly thru the bank, or you can buy them thru payroll deduction.

You will need the child's Social Security Number. Since 1989 all States and US Posessions have Ennumeration At Birth (The number is issued when the child is born) so the child has an SSN by now.

If the parents will not give you the SSN (a possibility, ID theft being more common among families than strangers), you can buy the bonds in your name, with the child listed as 'Payable on Death" (your death, that is).

If you go to the bank, you will need to buy the whole bond at once; the payroll deduction you can have a given amount taken out of each paycheck, and the bond will be issued when the withholding is equal to the cost of the bond.

Answer 3

Open a brokerage account at Zecco and buy him at least one share of the ETF IOO each quarter.