Simviation Forums

[youtube]http://www.youtube.com/watch?v=zGnfqLyyQoQ[/youtube]

Kids now days don't buy Bonds, their too busy buyin' Dope and either smokin' or re-sellin it' !

simply amazing

My father bought US Savings Bonds back in the 50's and 60's. Every week for many years he'd get a $25 bond and just sock it in his safe deposit box at the bank.

It was the absolutely worst investment he could have made. The interest rates were not good, and for certain types of bonds, after 10 years the rate drops off, after 20 years it stops. You could be holding bonds with a high principle but not yielding interest.

You have to go to a bank or send them to a Fed Reserve Bank to cash them. If the interest has been deferred until cashing, then when you do cash them you get hit with higher income
tax since the interest is taxable like other interest, and because the deferred interest may have piled high, the more you cash one year, the higher your tax bracket might be.
The bonds did not transfer to me at current value via inheritence, so the interest remained separate from the principle and was therefore taxable.

Transfering the bonds to me after my parents passed away was a total, total nightmare. You might have to have the inscription (the payee) changed. In my case, the inscription was such that I have to send the bonds to a Fed Res Bank to cash, and before that, I have to go to my local bank and get what's called a "signature guarantee". The whole cashing process is a complete waste of time.

They were a mess to keep track of because the interest was not consistent from month to month, slight variations, so I had to continually update my bonds data file (in Excel) to know
exactly what the current value of them was.

If you own US Bonds, or if you are thinking about buying any, I would strongly suggest you do some serious research first, including talking to friends that have them. Just writing reminds me of what a hassle I had with them.

My dear old Dad collected "Premium Bonds" for many years; and after his death I found that it was so much trouble in trying to redeem them, giving proof, etc, etc....that it was not worth the effort...so they were all lost to the Government!

http://en.wikipedia.org/wiki/Premium_Bond

A complete waste of time and effort...a bit like the Lottery!

Paul.

Welllllllll ,,,,,, my Dad purchased stock in PLAYBOY Enterprises in the 60's & 70's

I know this, because ,,,,, I used to see the Monthly Stock Certificates that'd come in the mail every month, gotta tell ya, those were the Best looking Stock Certificates I've ever seen !!!

They'd fold out too !!!!

I learned all about Stock Certificates early on.

I also learned how much trouble you can get if you get involved with the wrong Brokers too !!!!

You'd need a Lawyer