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OT: US savings bonds?

G

Gun guru

Well-known Member
I am thinking about buying US bonds for my sons college education. I have never bought a bond before, how does it work with face value and all that. What are the rates of returns?
The stock market is not too great these days and the market may be tanked in 10 years. And my son will be out of high school in 10 years.
 
You can also go to a bank and they should be able to give you good info.

Basicly two types: EE - $100 bond sells for $50.00 Earns interest for 30 years. Interest rate updates every Nov. 1st and May 1st. Cannot cash in until after 12 months pass and if cashed in before 5 years has passed you forfit 3 months of interest.

I bond: Has a fixed rate component and a variable rate component. $100 bond sells for $100 Earnes interest for 30 years. Variable part of Interest rate updates every Nov. 1st and May 1st. Cannot cash in until after 12 months pass and if cashed in before 5 years has passed you forfit 3 months of interest.

But dave2 is right go to the horses mouth for all the facts the web site is actually very good.
 
That is great, That is the type of investment that I want.

Tax free interest......for college for my son. I need to go to the bank and get this done.
 
I purchased $50 savings bonds lately formy grandchildren.paid $25 for each one.they pay out in 20 years.no better than a bank savings account
 
Please don't knock bonds until you check out your poor little savings account. Other than CD's you probably get less than one fourth of one percent. Banks don't like bonds, of course, cause they want your money for squat. They make it very, very hard for you to get info. Get it yourself. Well worth it. Dave
 
In Canada we have a education fund where you put money in a fund for the students education. Each year you are allowed the value you put in as a tax deduction.This fund can only be used for education purposes. Dont you fellows have a similar tax fund?
 
You might want to see if your state has a 157 plan or a prepaid tuition plan. It may be better than a bond. I got my son a bond indexed 157 plan where it works just like a 401K. I also got him a prepaid tuition account. In a nutshell, you paid that year, mine was 2002, what the tuition was and hes guarenteed a that it will pay his tuition when hes ready for school. They have payment plans too, where you can still lock it in. I just couldnt see not paying it up, tuition only goes up. Kentucky has since closed the plan since it was costing them way more than it was earning but other states still have theres going.
 
In Michigan we have the Mi. eduction trust. But like anything run by the government it can be ruined by bureuacrats that could run it into the 8hitter. I can see it now in the headlines:
THE MICHIGAN EDUCATION TRUST FUND IS BANKRUPT!!!

Because the Mich. state government had to pay unemployment bennies to laid off folks and the inner city people needed more food stamps.
Like anyother government run system it is very suseptable to being destroyed by the elected idiots.
I think that US savings bonds, and bank CD's are safe for your principle.
 
I'm sure the interest stopped many years ago. It's the only bond left from a bunch of War Bonds my dad bought for me when I was just a little kid. Have kept it for sentimental reasons, I guess.

Stan
 

IVE BOUGHT REITS BONDS FROM MY PNC BANK BROKER ,THEY ARE REAL ESTATE TRUST BONDS, GUARANTEED BY GOV. RIGHT NOW THEY ARE PAYING 5-6% ..
 
The Bond Bubble is the next in line to bust.Buy a $100 bond today after a few years of coming Hyper-Inflation you're be able to buy a new pack of Juicy Fruit gum---Maybe
 
There is a 529 plan in our state (Indiana) that lets one contribute to a college fund. $5,000 (or more) can be put in annualy with a max state tax credit of $1,000. This is an immediate 20 % for the initial year. There are various investment options within the plan. U. S. Savings Bonds may not be the best but they are better than some variable annuties my financial planner recommeded. Stay away from the latter. Might want to check the 529 plans for your state.
 
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