Greetings!
February seems to be the hardest winter month for people in New Jersey. Many friends and family escape to Florida for sunshine and warmth.
Last month, we wrote about organizing your paperwork. Why not make organizing a bit more fun by looking for U.S. Bonds that have been tucked away and out of site for years? Some U.S. Bonds continue to pay interest after their redemption date; however, many do not. Read more below...
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 Is it time to cash in old U.S. Bonds?
| It's time to look for any old U.S. bonds that you or a loved one might be hiding in desk drawer, shoebox, or safe deposit box. While, some U.S. bonds continue to pay interest after their maturity date, many become "matured" meaning they no longer earn interest.
Series H bonds, many Series E bonds, and some Series EE and Series HH bonds are no longer earning interest. Many people do not redeem matured U.S. bonds because they have to pay federal taxes on the interest (state taxes are waived). This should not deter you from redeeming bonds.
If you have bonds and want to find out their redemption value or if you lost your bonds, go to TreasuryDirect.
There are many other variables concerning the redemption of bonds. If you have questions about redeeming bonds, paying tax on the interest or any other question regarding U.S. bonds, contact, Diane Nissen Friedman, today.
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What is the difference between the stated (nominal) yield and the effective yield?
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The effective yield will be higher than the stated or nominal yield, because the effective yield is determined by how often interest is compounded, and assumes the interest is reinvested. This means you are receiving interest on interest.
For example, a 4% nominal
(stated) annual interest rate actually pays a 4.08% effective yield if
interest is compounded daily. 4% pays 4.06% effective yield if interest is compounded quarterly.
Want to check my math? Go to: Interest calculator
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Money Saving Tip for February 2010
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I love coming home to the smell of dinner cooking. Slow cookers or crock pots are great for your budget (making dinner at home costs less than eating out), and your food is ready for you and your family as soon as you walk in the door (no waiting on line to order or driving out of your way to the takeout restaurant.)
There are lots of resources on-line for entrees, soups, appetizers, and even desserts. Bon Appetit!
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Please become a fan of The Alexandrite Group. We will keep you informed on personal money coaching tips throughout the year.
Hope you have a great month! If you have any suggestions or comments, we would like to hear from you.
Sincerely,
Diane Nissen Friedman
New Jersey's Money Coach
(201)447-1137
email: dwf@AlexandriteGroup.com
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| Teen Corner |
Credit Cards less available for under 21
As of February 22, 2010, no one under 21 years old can open a credit card without a source of income or having a co-signer.
| Are you on LinkedIn? If so, please answer our poll:
Do you give your child(ren) an allowance?
Responses will be shared next month.
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