savings bonds

[cbc58]

if you are sitting on some savings bonds.... best to get out... correct?

thought some other people might want to know also...

 

[SnappleLlama]

bump because I am sitting on savings bonds...

 

[rapidtrends]

if you are sitting on some savings bonds.... best to get out... correct?

thought some other people might want to know also...

US Government savings bonds?

 

[cbc58]

yes, US government savings bonds...

 

[rapidtrends]

yes, US government savings bonds...

Those bonds are backed by the full faith and credit of the United States Government, which is in turn backed by the governments ability to levy and collect taxes on the citizens of the United States.

The real question is, do you think the government is likely to retain this ability, and are there any circumstances where the government may try to default on those obligations.

If you think those scenarios are unlikely, keep the bonds, if you are concerned something may occur that prevents the government from honoring its promises, you may consider getting out of them.

 

[rancher89]

Here's a nifty wizard to keep track of your bonds


http://www.treasurydirect.gov/indiv/tools/tools_savingsbondwizard.htm

 

[Shinerxx]

The only thing worse than holding USD is holding USD in the future.

 

[cbc58]

i was thinking more along the lines of the value of the dollar declining vs. making sure the gov. will pay on them.

 

[rapidtrends]

i was thinking more along the lines of the value of the dollar declining vs. making sure the gov. will pay on them.

Well then in that case run for the hills because when it comes to dollar devaluation, you ain't seen nothin' yet.

 

[Sarge]

One can calculate the value of their savings bonds here,

http://www.treasurydirect.gov/BC/SBCPrice

When one figures the values, compares with the loss of the value in the dollar and then is reminded they will owe tax on the increase over cost when sold, they are not a great bet.
Remember you will owe tax on the gain value even though the dollar value has gone down.

Try not reporting the sale of a savings bond. They got ya. A relative of my wife found out the hard way from the IRS. Those serial numbers will get you every time when they report sales to the IRS.

 

[rancher89]

try to cover it with college costs, if they are the right kind....

 

[Zippyjuan]

If you presently hold bonds, you will want to be sure of the consequences of early redemptions. Some will not let you redeem until you have had them at least 12 months. You will probably forfit some if not all of the interest you have earned on them too. I would not buy any more but would keep the ones you presently have until they mature.

 

[123tim]

I stumbled across this while looking for something else. I don't really understand the implications, but here it is:

"Some of you are looking into putting your IRA or 401K funds into a safe investment. A lot of the traditional holdings aren't doing so well in protecting your accumulated wealth. There is even talk of the U.S Government losing their AAA credit rating if they nationalize Freddie Mac and Fannie Mae. That would mean all of our U.S. Treasury Bills and U.S. Savings bonds might not be as safe as they once were. So, people are turning to precious metal investments"

The above came from here, http://denver.yourhub.com/CastlePines/Stories/News/General-News/Story~501375.aspx but that's about there was concerning bonds.

 

[SevenEyedJeff]

Sell the bonds and buy gold or silver, then you own your money and don't have a promise of debt.