[financeboyz] Re: US Bonds

  • From: kiran nagaraja <knagaraj@xxxxxxxxxxxxxxxx>
  • To: Radhesh Mohandas <financerod@xxxxxxxxx>
  • Date: Sun, 28 Apr 2002 17:58:40 -0400 (EDT)

currently the CD rates for a 5yr term is arnd 4.5%+. From what little I
understand of bonds, the interest rate does not vary with the face value.
but the good thing abt savings bonds are that u can defer the tax until u
encash the bonds and u may get exempt from fed tax if u use it for
education purposes (people getting married - kids are not far way... or if
ur still doign a double PhD or a MBA, whatever...). There are also exempt
from state taxes... I couldn't determine if CDs have any such benfits.... 
Also seems like u can keep adding to the initial investment  throughout
the period, this could be a nice option... does the CD also provide this?

appart from investing, u also want to put away things so that u don't
spend it away when u can lay ur hands on them... I'm sure many of u
identify with this...



On Sun, 28 Apr 2002, Radhesh Mohandas wrote:

> Kini,
>  For 2-3 K state taxes are not a huge numbers. So u 
>may be able to find better rates on CD's. Currently
>the bond rates are 4.4% and going down. Either case you may be able to get 
>1-2% more on tying down your money. It this is a considerable portion of your 
>wealth, I would not recommend you to buy bonds. Bcoz - you may have some 
>immediate expenses where u might need the money - eg: buy a car, marriage, buy 
>a home .. in the next 10 yrs.
>If you are an extremely busy person, or going out of US for a long time, then 
>bonds will be a predictable investment. But if you can devote some time for 
>your
>personal finances, you may be better off with stocks and mutual funds.
>
>Boyz,
>  Is there any other advantage of having bonds - can they be used as 
> collaterals? Are there other types of
>competative bonds - other than US bonds?
>
>-Cheers,
>Radhesh
>--
>
>On Wed, 24 Apr 2002 02:10:26  
> kiran nagaraja wrote:
>>
>>chax,boyz
>> if I want to put away some amount 2-3K for a long period 5-10yrs, so that
>>it just accumulates interest, what would be the best option, like the desi 
>>Indira Vikas Patra... the Savings bonds seem to be the right option, are
>>there any other?
>>
>>
>>
>>On Tue, 23 Apr 2002, Kiran Srinivasan wrote:
>>
>>>
>>>Rod,
>>> You can buy US Savings Bonds online or from some
>>>banks.
>>>To get the details/buy the site is...
>>>www.savingsbonds.gov
>>>Look out for the series-I bonds...
>>>
>>>If you are planning to buy a large amount (5K and
>>>greater) it is better to go to a bank to get them
>>>(safer) and u get a receipt from the bank in
>>>addition...
>>>
>>>cheers,
>>>Kirik
>>>
>>>
>>>
>>>--- Radhesh Mohandas <financerod@xxxxxxxxx> wrote:
>>>> 
>>>> Hi NS,
>>>> 
>>>> Can you send a detailed message to the list as to
>>>> how you went about investing in the US Bonds, the
>>>> sites that you used and the details of how one can
>>>> buy these bonds?
>>>> 
>>>> Cheers,
>>>> Radhesh
>>>> 
>>>> 
>>>> See Dave Matthews Band live or win a signed guitar
>>>>
>>>http://r.lycos.com/r/bmgfly_mail_dmb/http://win.ipromotions.com/lycos_020201/splash.asp
>>>> 
>>>> 
>>>
>>>
>>>__________________________________________________
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>>
>>
>>
>
>
>See Dave Matthews Band live or win a signed guitar
>http://r.lycos.com/r/bmgfly_mail_dmb/http://win.ipromotions.com/lycos_020201/splash.asp
> 
>
>



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