- Budgeting
- Cash Management
- Introduction
- Realize the Importance of Good Cash Management in Achieving Your Goals
- Understand the Different Cash Management Alternatives and How to Compare Them
- Know the Different Types of Financial Institutions
- Understand the Time Commitment Necessary for You to Effectively Manage Your Finances
- Summary
- Assignments
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
U.S. Series EE Bonds
U.S. Series EE bonds are government savings bonds that are issued by the Treasury in small denominations (as small as $25); these bonds have variable interest rates. Bonds are purchased at half of face value, and when the bonds mature, full face value is paid. The interest rate paid on EE bonds is fixed for six months; interest rates are set biannually.
Series EE bonds are liquid in the sense that they can be cashed at any time after one year. Ideally, you should hold them for at least five years to ensure that there will not be an interest penalty; after five years, these bonds can be cashed at any bank. Interest rates are competitive. Required minimum balances are low, and these bonds can be purchased in denominations from $25 to $10,000. Series EE bonds are very secure because they have an implicit government guarantee. Other features include interest being exempt from state and local income tax; interest may even be tax free if the interest and principal are spent on eligible college expenses (mainly tuition and fees). One drawback to Series EE bonds is that there is a three-month interest penalty if you withdraw funds before the specified term is over. Information on rates and how to purchase Series EE bonds can be found at www.Savingsbonds.gov. Investors can purchase savings bonds up to $5,000 per year in electronic bonds and $5,000 per year in paper bonds. If your Modified Adjusted Gross Income (MAGI) is above specified limits in the year bonds are cashed, you cannot exclude the interest income from your income taxes for EE and I Savings bonds. The limits are:
Year Filing Single Married Filing Jointly
2007 $65,600-80,600 $98,400-128,400
2008 $67,100-82,100 $100,650-130,650
2009 $69,950-84,950 $104,900-134,900
2010 $69,950-84,950 $104,900-134,900
Your modified Adjusted Gross Income is your adjusted gross income adding back certain items such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.
