Welcome to Planning Tax
Savings Bonds
With a financial plan in place you can start to invest in your child's future! These days, saving for your child's education is harder than ever. The price of an education has sky rocketed over the past two decades. So what are your options when considering how to save for you children's education? Savings bonds might be your answer.
United States Savings Bonds can aptly add to your child's education savings. There are many other investment opportunities and many of them may promise higher rates but as recently seen in the market you have to be doubly careful when investing in anything let alone your child's future. Savings bonds offer diversification to your savings plan and tend to be safer than many of the other options.
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.
They are considered a safe, secure investment 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.
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 are tuition and fees paid to colleges, universities and vocational. 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.
Consider that they can be a wonderful addition to your education fund for your child. For more information on how to invest in savings bonds and what is involved in making such an investment contact your local IRS office or seek out a skilled financial advisor.
Tax Planning Vs Tax Shelters News
CapeCodToday Blog Chowder - Cape Cod Today
Welcome to CapeCodToday's Blog Chowder! This page aggregates the most recent postings from all the CapeCodToday bloggers for your convenience. Bookmark this page or see below left for RSS options. It is interesting to note that the sound emission ...
Read more...About Joe the Plumber, “average” guy - Christian Science Monitor
Since his arrival on the American political stage a week ago, Joe the Plumber (a.k.a. Samuel Joseph Wurzelbacher) has been a dominant force in the coverage of the presidential race. There have been skeptical pieces pointing out his name really isn ...
Read more...Palin Pushes Tax Creep Argument - ABC News Blogs
ABC News' Imtiyaz Delawala reports: Alaska Gov. Sarah Palin charged that Sen. Barack Obama’s tax plan is “so phony that it's already starting to unravel,” continuing an argument made by her running mate Sen. John McCain this week that the Obama ...
Read more...Plumbers disavow Joe - Boston Globe
Real plumbers don't like Joe. Or at least the ones supporting Democrat Barack Obama. About 100 union plumbers from a Boston-based local plan to knock on union members' doors Saturday in Portsmouth, N.H., and "Joe the Plumber" is certain to be a topic ...
Read more...Google CEO Defends Obama’s Economic Proposals - Wall Street Journal
Jonathan Weisman reports from Lake Worth, Fla., on the presidential race. Joe the Plumber wouldn’t face a tax hike under Barack Obama ’s proposed tax plan, but Google Chief Executive Eric Schmidt sure would–and he still supports it. Barack ...
Read more...