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Roth or Traditional IRA: Which one should you go for?

Roth or Traditional IRA: Which one should you go for?

If you're one of the many approaching retirement, you will need a source of money that will sustain you for 20 years where you will not be actively working. Individual Retirement Accounts (IRA in short) form a great option in this regard. That being said,...

ROTH IRA VS. TRADITIONAL IRA – WHICH ONE SHOULD YOU GO FOR?

ROTH IRA VS. TRADITIONAL IRA – WHICH ONE SHOULD YOU GO FOR?

With the time to pay taxes approaching soon, most taxpayers in the US are currently contemplating on what method they should use to save their money. One of these methods being funding IRAs, it is only natural for the ones contemplating those to wonder...

Traditional IRA or Roth IRA: Which is the right one for you?

Traditional IRA or Roth IRA: Which is the right one for you?

As many today already know, it is not a good practice to simply rely on workplace-sponsored retirement accounts. You must have alternate ways to save, such as stashing extra saving into a personal retirement account (IRAs in short). IRAs are a good way to...

Here’s Why Now Is the Best Time to Buy Freedom Bonds

Here’s Why Now Is the Best Time to Buy Freedom Bonds

Judging by the looks of it, the BP oil disaster (aka Deepwater Oil Spill), despite causing the destruction it did, doesn't really have anything special about it. After all, it is neither the first nor the last oil spill in the US, and neither is it the...

YOUR GUIDE TO THE 7 DIFFERENT TYPES OF BONDS

YOUR GUIDE TO THE 7 DIFFERENT TYPES OF BONDS

Any bond's instrumental characteristic - which authenticates it and distinguishes it from any other - is the entity that has issued it, since as an investor you're counting on that issuer to have your hard-earned money returned to you. The following are...

Advantages and Disadvantages of Muni Bonds

Advantages and Disadvantages of Muni Bonds

Generally speaking, bonds which don't require too much investment (such as municipal bonds) are ideal for investors. That said, every investor and their portfolio have different kinds and combination of requirements. As an investor, you must consider all...

YOUR GUIDE TO HOW INHERITANCE TAX WORKS

YOUR GUIDE TO HOW INHERITANCE TAX WORKS

  Benjamin Franklin once famously said that nothing in this world is certain - bar death and taxes. While many tend to laugh on this, it is something that is inevitably true. More ironically so in this case, where tax law has combined both these "certainties" into a...

ESTATE TAX VS. INHERITANCE TAX

ESTATE TAX VS. INHERITANCE TAX

  When the question is of Estate and Inheritance Taxes, the best news is that in most cases, you will be exempted - only those with big estates will be feeling the heat of taxes. That being said, there are some exceptions to this rule, and your unique inheritance...

Inheritance Taxes

Inheritance Taxes

What are inheritance taxes? As the name itself implies, inheritance taxes are those taxes that an individual needs to pay on any property or money that they have inherited after the death of a loved one. Being a state tax (and not the same as the federal...

TOP 5 INVESTMENTS FOR BABY BOOMERS

TOP 5 INVESTMENTS FOR BABY BOOMERS

As of late 2007, Baby Boomers began collecting their Social Security payments, marking the beginning of an interesting time when there will be a long list of them in the retirement age. Due to their size alone, they form a demographic category that has...

Baby Boomers and their Unique Challenges

Baby Boomers and their Unique Challenges

Simply put, baby boomers are those who were born between the 1940s and early 1960s. With about 78 million of these today, they have a considerable impact on U.S. retirement social structures. The biggest concern for most baby boomers is whether they can...

THE BABY BOOMERS’ WAY TO SAVE FOR RETIREMENT

THE BABY BOOMERS’ WAY TO SAVE FOR RETIREMENT

Life for the baby boomers hasn't been easy, at least as far as saving for retirements is concerned. They have indeed experienced quite a few hard knocks. However, they now have a sound retirement saving strategy in place - one that can actually be...

YOUR GUIDE TO CONVERSING ABOUT ESTATE-PLANNING

YOUR GUIDE TO CONVERSING ABOUT ESTATE-PLANNING

  While most families are open about all kinds of topics, they are reluctant to talk about some subjects, such as being death and money. For all adults - parents and children, death is a sensitive matter and is not discussed until it is visibly unavoidable. Another...

3 MUST-HAVE ESTATE-PLANNING TOOLS

3 MUST-HAVE ESTATE-PLANNING TOOLS

  Several people think that estate planning is an activity that is required only by the wealthy. This could not be farther from the truth. Everybody requires a solid estate plan, no matter what their income or net worth is. Having an estate reduces any scope of...

HERE’S WHY YOU NEED ESTATE PLANNING – EVEN IF YOU’RE SINGLE

HERE’S WHY YOU NEED ESTATE PLANNING – EVEN IF YOU’RE SINGLE

There are far more single people today than there were in the past - according to data obtained from the US Census, over 50 percent of the American population aged 15 and older today consists of single people - a huge jump from one-third in 1970. No matter what the...

HELPING YOUR LOVED ONES CREATE THEIR WILLS AND TRUSTS

HELPING YOUR LOVED ONES CREATE THEIR WILLS AND TRUSTS

  Any individual must make a will or a trust in order to make sure that his or her estates remain in safe hands and are best utilized by those near and dear to them. If you yourself have any loved one who has not created their will or trust yet, you must make an...

WILL vs. LIVING TRUST – WHICH ONE SHOULD YOU CHOOSE?

WILL vs. LIVING TRUST – WHICH ONE SHOULD YOU CHOOSE?

  If you want to assure the safety of your assets after your death and want your survivors to get a financial support system it, you must have a written legal document which mentions the directions to distributing your assets post-mortem. Which...

AN INTRODUCTION TO SAVINGS

NOTES/FREEDOM SHARES

Savings Notes/Freedom Shares were a kind of promotion which were issued between May 1967 and October 1970. Introduced by President Lyndon B. Johnson in February 21, 1967, SN/FS were offered to help serve the dual purpose of funding the rising costs of the Vietnam War (by increasing sales of U.S. Treasury) and helping citizens save their money and secure their future.

Issued on a discount of 81% of the face amount (for instance, a SN/FS with $100 face value was purchased for $81.00), Savings Notes/Freedom Shares were sold exclusively with Series E bonds and had an original maturity term of 4½ years. They were available in denominations from $25 all the way up to a $10,000 maximum size. These non-transferable, definitive security bonds reach their ultimate maturity after thirty years from the date issued.

Interest earned on savings note should be reported for Federal income tax purposes for the year in which the note gets redeemed, is disposed of, or reaches final maturity – whichever comes first. The note owner too can choose to report earned interest as it accrues annually; however, this decision must apply to all the accrual-type securities of the owner.

When the savings note is redeemed, interest on the same is paid as part of the current redemption value. Those savings notes which are unredeemed and/or un-matured accrue interest at the guaranteed minimum investment yield or a variable, market-based rate (like Series E and EE bonds) – whichever is higher. A savings note could be redeemable with a financial institution or The Federal Reserve Bank during any time.

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