Ask Rande 10,000+

Top 346. Oct 21, 2001 8:14 AM

» AmatY - I-Bond Information

Does the interest on the I-Bond compound? I have always purchased my stocks, bonds and mutual funds through a discount broker who maintains possession of the certificates for me. I believe with I Bonds the Treasury would send the bonds directly to the purchaser. From a safety standpoint, where should they be stored (ie; at home, in a safe deposit box)? What happens if they are lost or stolen?

Thanks,
Amat Yolinda

-- posted by AmatY

http://www.suite101.com/discussion.cfm/i...

Top 347. Oct 21, 2001 1:37 PM

» JenL_2 - Re: College Loans

In response to message posted by Rande:

Rande - we were talking about college loan interest rates in chat yesterday. Here's what I dug up...posted on the "How to Finance a College Education" thread:

......Jen

-- posted by JenL_2

Top 348. Oct 21, 2001 2:00 PM

» Rande - Re: Re: College Loans

In response to message posted by JenL_2:

Good deal Jen. It's always better not to borrow unless you have to, but lower-interest college loans and tax breaks for needy students are among the best uses of taxpayer money there are.

-- posted by Rande

http://www.savingsbonds.gov/sav/sbilost....

Top 349. Oct 21, 2001 6:23 PM

» Rande - Re: I-Bond Information

In response to message posted by AmatY:

The compound period is semi-annual. A safe deposit box would be a good place. See the following link for what to do if lost or stolen:

Lost, Stolen, or Destroyed I-Bonds

I-Bond home page:

http://www.savingsbonds.gov/sav/sbiinvst...

-- posted by Rande

Top 350. Oct 26, 2001 10:22 AM

» bitwacker - "403b" for stay at home mom?

Hi Rande

I am 36 and my wife is 32. Over the years, we have contributed 100% to our 401k (me) and 403b (her), 100% to our traditional IRAs (not eligible for Roth), and have been able to save over and above that.

This summer, my wife is leaving her job to stay home with our 5-year-old son and will stay out of the work force because of my extensive travel. Although I support this change, I don't want to lose her 403b!!! Is there another tax vehicle we could use (SIMPLE, SEP) in this situation that will maintain the amount of money we can shelter from taxes each year?

Thanks!

Bitwacker - an ex-BrinkerBot thanks to Suite101!

-- posted by bitwacker

Top 351. Oct 26, 2001 10:38 AM

» Rande - Re: "403b" for stay at home mom?

In response to message posted by bitwacker:

bitwacker,

Even though your wife is unemployed, she could put $2,000 (set to rise over the next few years) into her own IRA as your spouse provided you have sufficient earned income. But, since you are a participant in an employer plan, it will only be deductible if your AGI is $150,000 or less (phased out completely at $160K). Assuming your AGI is more than that, since you said you're not eligible for a Roth, the best you can do with the deferred accounts might be a non-deductible IRA contribution. One alternative might be to just take what you would have put into her 403(b) and invest in something like the Vanguard Total Stock Market fund. There will be some minor current taxability for the small annual distributions, but for the most part any gains would be effectively deferred until the shares are ostensibly sold at a much later date, with the added bonus that such sales would be eligible for the long-term cap gain rate instead of the ordinary rates attached to everything that comes out of a qualified retirement plan.

-- posted by Rande

Top 352. Oct 26, 2001 11:06 AM

» Katrina75 - Locking Mortgage Interest Rates

Jumbo (over $275,000) mortgage loans seem to be running about 6.875% fixed for 30 years at par (zero origination points). I can lock for 40 days. Any thoughts? These rates look very good to me.

Thank you!

Kat

-- posted by Katrina75

Top 353. Oct 26, 2001 11:22 AM

» Katrina75 - Re: Re: ESA's/Thanks for the welcome, Jen

Hi, Jen and thanks for your welcome. Sorry I'm a little slow in responding. It's always nice to be made to feel welcome. Appreciate it.

Kat

-- posted by Katrina75

Top 354. Oct 26, 2001 11:30 AM

» Kirk - Re: Locking Mortgage Interest Rates

In response to message posted by Katrina75:

Katrina.

Welcome to our group.

I've had some success with calling tops and bottoms for longer term rates of late and now looks like a really good time to lock in a low, 30 yr rate. 6.875 zero pts on a jumbo is a great deal. I'd go for it. I have 6.75% zero pts on a 5 yr jumbo and I'd sure take the 30 yr at .125 higher if I could have gotten it.

Considering after tax cost of the money and 3% inflation and you are doing well when you get a fixed rate under 7%.

-- posted by Kirk