Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Negotiate Fees

Negotiate Fees - We all have certain services that we require and use monthly, so we can all negotiate with these service providers to get them to lower the fees...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

United States Savings Bond Value

A United States savings bond is a type of security issued by the federal government for investors.  Savings bonds are actually loans, when you buy a United States savings bond, you are loaning your money to the federal government.  After the loan matures, the government pays you back double of what you paid for the bond, plus interest.

If you buy a paper $50 Series EE bond, you will pay $25 for it.  In 20 years the bond matures and is worth $50.  That bond can earn interest for 10 more years, so in 30 years you have more than doubled your investment.  You can buy a United States savings bond for as little as $25.  You pay face value for the bond when you buy online, and at maturity the bond doubles in value and can earn interest for another 10 years.

The Series I bond is protected against inflation, so that your investment won’t be affected by inflation.   I bonds are a better investment than a money market investment.  Money market CDs only earn about 1.5 percent interest, and I bonds earn about 3.39 percent interest.  If you are going to tie up your money for a period of years in an investment, you should choose an investment that will pay you the most.  Series I and EE bonds are both very good investments.

To have better bond yields over time, many investors use bond ladders.  Bond laddering is a strategy that works well with big investors.  The investors invest in a portfolio of bonds that have staggering maturities.  There is an annual limit of $10,000 you can spend on each type of savings bond.  However, you can buy $10,000 in paper bonds, and $10,000 in electronic bonds.

For instance, if you want to invest $20,000 into Series I bonds, you would be better served to invest in smaller blocks of bonds.  For instance, you might want to stagger 20 blocks of $1,000 I bonds that mature at different times.  You can do the same with Series EE bonds.

There is no limit to how many bonds you can purchase over time, but you are limited to a combined $20,000 per calendar year of paper bonds and electronic bonds.  Over the years you can accumulate hundreds of thousands of dollars in United States savings bonds.  Bonds are a great investment because they are 100 percent safe, and earn more than money market investments.

Discuss It!

Machinery Account Assignment Help said:

Iâm really impressed with your article, such great & usefull knowledge you mentioned here

192.168.1.1|192.168.1.1|192.168.1.1|192.168.1.1 said:

A very awesome blog post. We are really grateful for your blog post

http://how-rich.org/net-worth/tag/el-general-net-worth/ said:

Confined to make tracks in a converse bearing from a resting issue's astonishing circle and reboot your cerebrum for sound sleep.

whatsapp plus for iphone said:

WhatsApp Plus is the modified version of WhatsApp that has launched with a better feature. WhatsApp Plus allows you to hide your online status.

Binary options robot said:

Read Binary Options Robot Review

bigo live apk said:

Bigo Live Apk is the best apk that you can download for free.This Article is About Bigo Live Apk

download snappy streamz said:

Searching for a fresh app to watch live TV for free? Then Snappy Streamz app is for you. Snappy Streamz has countless live TV channels from all over the world. The general interface of the app is extremely simple to navigate and it even has a part for sports channels.

free tour stockholm said:

The investors invest in a portfolio of bonds that have staggering maturities.

528i car covers said:

We need more such articles that we can read with such enthusiasm.

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Closing Sale

Closing Sale - A closing sale is a transaction that takes place, in which the seller has full intention to reduce or eliminate the long position that the seller has held regarding a certain company or corporation's stock, or a company or corporate option series, which are stocks that carry...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com