- By: Molifeney
- December 3, 2008
- comments
I would like to be the first to remind you that the holidays are just around the corner, and with retailers pushing out holiday goods earlier and earlier, you have already been reminded, countless times. With that being said, we want to change it up a little, go flip-mode and recommend some wealth building holiday gifts you aren’t going to see at your local mall. These gifts are going to be relevant a lot longer than a new iPhone or even the Wii.
credit: THEMACGIRL*
Will Your Gifts Appreciate in Value?
Savings Bonds – I know you think bonds are boring, unless you’ve read The Beauty of Bonds, but in reality, bonds make great gifts. You can purchase bonds in several different denominations, and you can hold them in electronic or paper form. Savings bonds can be purchased from most local banks or through TreasuryDirect.gov. The two most common types of savings bonds purchased are Series EE and Series I. Series EE bonds are secure savings products that pay interest based on current market rates for up to 30 years. Series I bonds are a low-risk, savings product that earn interest while protecting you from inflation.
529 Plans – Raise your hand if you think college is a good thing. The best 5 ½ years of my life were spent there. The personal growth… the opportunities…the women’s studies classes that I never officially enrolled in, but tried my best to master….Who wouldn’t want their child/niece/nephew/cousin to take part in everything that college has to offer. Well maybe not everything.
UGMA/UTMA – These are essentially trust accounts set up for minors. The person that establishes the account remains custodian of the assets in the account until the minor reaches 18 or 21 depending on the state laws. These accounts are a great way for the youngin’s to start building wealth. But be advised. The income generated from the investments is taxed at the minor’s tax bracket and these assets may effect their ability to get financial aid for college.
Shares of Stock – This is a great way to give the gift of ownership. Those new Jordan’s or those Titleist clubs aren’t going to appreciate like stocks. These stock sharing websites give you the chance to give the gift of ownership AND make the gift look good.
As always for more info check out www.molifeney.com
Posted in: Personal Finance
- By: Molifeney
- October 20, 2008
- comments
In an erratic market it pays to have sound financial products in your portfolio because you can bet that Uncle Sam won’t be passing the collection plate around for little old you or me. As faithful Molifeney.com readers you guys have already been schooled on the Beauty of Bonds as a safe investment. We’ve taking things a step further by putting together a list of some of the most conservative, yet best performing bond funds in the land for your viewing pleasure. These days you win by not losing, but you can’t win if you don’t play.
American Century Diversified Bond Fund (ADFIX): This bond fund invests at least 80% of assets in high- and medium-grade, non-money market debt securities. It ranks high on the Morningstar Credit Quality box and is a 5 Star Fund. It also has a one year return as of 9/30/08 of 5.52%.
Pacific Income Advisors Moderate Duration Bond (PIATX): This fund has low expenses and the lowest initial investment requirement of the group at $1,000. It also ranks high on the Morningstar Credit Quality box.
T. Rowe Price U.S. Treasury Fund (PRTIX): Consider this fund the safest of the safe. It invests 100% of the assets in either U.S. Treasury securities or U.S. Government Agency securities so it is backed by the full faith and credit of the U.S. government. On top of that the one year return as of 9/30/2008 is a whopping 10.15%.
If bonds don’t tickle your fancy, but you are still looking for a decent return on a safe investment then you may want to consider a Certificate of Deposit (CD). If you’re have problems stomaching the rollercoaster ride that is the stock market then check out these one year high fliers, they may be just what the Doctor ordered.
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Min Deposit
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APR/APY
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FDIC Insured
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Capital One Direct Banking
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$500
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3.68%/3.75%
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Yes
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E Trade Bank
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$1000
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3.59%/3.65%
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Yes
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ING Direct
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$1
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3.93%/4.00%
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Yes
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GMAC Bank
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$500
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4.26%/4.35%
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Yes
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Nationwide Bank
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$500
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3.97%/4.05%
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Yes
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For more info check us out at www.molifeney.com
Disclaimer: YBPGuide, nor do its owner or contributors, provide investment advice or endorse any investment strategy. Please consider all risks when investing, as the above is for informational use only.
Posted in: Personal Finance
