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Securing a Solid Financial Future |
The United States Savings Bond is one among many financial programs that can start you on the road to financial security. They are considered to be safe and secure investments because the United States government backs them. However, with a growing national deficient there has been some debate on this front. It is important to sit down with a good financial advisor and talk about what investing in U.S. Savings Bonds means.
Most education savings plans include a combination of stocks, mutual funds, certificates of deposit, education IRAs, as well as cash. The reasoning for this is that the more places you have the money spread out the higher your return should be. This diversified approach is one that most financial advisors recommend. Savings bonds can provide a reliable, steady-growth option with significant tax advantages if they are invested correctly.
Another advantage to this type of investment is that they are designed never to decrease in value. Unlike other investments, savings bonds appear to be a solid investment. The other advantage touted by many is that savings bonds also have tax advantages. Interest on savings bonds is always exempt from state and local income taxes and allows some or all interest to be excluded from federal income tax, this in an incentive for many as opposed to interest bearing savings accounts and other investments.
Income limitations such as age and other restrictions apply to the person claiming the tax exclusion and eligible education expenses that are considered as tuition and fees paid to colleges, universities and vocational institutions. A parent who doesn’t meet the income limits for this tax exclusion can and should consider buying savings bonds in the name of the child.
Get in touch with your nearest IRS office or financial planner to learn more details about the United States Savings Bond. Securing your child's future in education today is the best legacy you can leave behind. |
