By Tammy Gagne
Secure -haven investments are offered to the teenager reader stressing the confident rewards and draw back dangers. the teenager might be in a greater place to make clever funds funding judgements sooner or later.
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Additional resources for A Teen Guide to Safe-Haven Savings
This paperwork should clearly state the interest rate and any fees you could be charged. One advantage of a brokered CD is that it can be resold to someone else, so you won’t have to pay a penalty if you need your cash early. That doesn’t necessarily mean you won’t lose money, though. It all depends on where interest rates are when you need your cash. If they have dropped since you invested your money, you may not lose any of your interest. If they have gone up, though, you could end up losing some of your principal.
The biggest change was that people could now use Series EE bonds to pay for certain higher education costs without having to pay taxes on the interest. If the total of the principal and the interest earned was higher than the amount used for education, however, the owner would be required to pay taxes on a percentage of the interest. People who made an especially high amount of money would also have to pay taxes on the interest, even if they used it for education. Other series have come and gone over the years, but the only ones that are still being sold are the Series EE and Series I bonds.
Indd 34 5/16/13 9:03 AM Bond, Savings Bond convert them to electronic bonds without suffering any penalties. Once you do, you can also monitor their progress online. The differences between Series EE and Series I bonds are minimal. Both types are considered very safe investments. You have a slightly larger potential for growth with Series I, but you also have a slightly higher risk. These bonds have a variable rate of interest, which changes every six months based on the current inflation rate.