Personal Investment & Financial Planning Q`s/Savings Bonds

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Question
Do you know how I can buy a savings bond for my niece and nephew (who are toddlers)?  I wanted to get the kind that was given to me: a paper certificate that when they go to cash in it in like 20 years it will have increased in value as much as possible. Maybe for $200-1000 each?

Thanks.

Answer
Here are some links about how to buy treasuries direct from the US Treasury.  You can still get paper certificates apparently, but I would not recommend it due to the problem of replacing them if lost.  You may also want to look at i bonds (inflation protected) or ee bonds, which allow the owner to use the interest tax free for qualified education expenses.

I would consider opening 529 Plans instead, one each for niece and nephew. Every state offers them and there are no income restrictions on who can open them.   The also offer tax deferral and no tax on earnings if used for qualified educational expenses.  Although they are considered a completed gift for estate tax purposes, you control the account and can change beneficiaries if you choose to.  And you and others can continue to contribute to it as the years go by. They allow you a much greater range of investment options.  In today’s low interest rate environment, long-dated treasury bonds may not be a great investment.

https://www.treasurydirect.gov/indiv/planning/plan_gifts.htm

https://www.treasurydirect.gov/indiv/research/faq/faq_irstaxfeature.htm#lost

http://www.savingforcollege.com/intro_to_529s/what-is-a-529-plan.php

Personal Investment & Financial Planning Q`s

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John Guilford Kerr, CFP, CFA

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I can answer questions related to personal financial planning, asset allocation, private equity investment analysis, fixed income, mutual fund, ETF, and stock questions, estate planning (basic), education planning, insurance planning, and business financial planning.

Experience

I have thirty-eight years of experience in finance, in the U.S. and internationally, for both public and private corporations. I have specialized in personal and small business financial planning and investment advisory services since 2005.------ - ten years commercial banking, New York, Paris, Houston, Charlotte, Atlanta---- - six years treasurer of a publicly traded health care company, Philadelphia----- - six years international project finance (Bechtel), San Francisco, Manila, London----- - five years head of international hotel development (Hyatt), Chicago---- - eleven years personal financial planning.----- Registered Investment Adviser, Hawaii---- FINRA General Securities Representative - Series 7---- FINRA Uniform Combined State Law - Series 66---- Resident Producer Insurance License, Hawaii-, Accident and Health or Sickness, Life, Variable Life and Variable Annuities

Organizations
CFA Institute of Hawaii---- Certified Fiancial Planner Board of Standards, Inc-----. National Association of Personal Financial Advisers----- Financial Planning Association----- National Association of Tax Professionals

Publications
Project Finance Yearbook - 1997 / 1998 "Manila Water & Sewerage System Concession"----- "The Road To Helsinki, An Analysis of European International Relations Leading to the Conference On Security and Cooperation in Europe"' published 2015.

Education/Credentials
Certified Financial Planner, Certified Financial Planner Board of Standards, Inc.---- Chartered Financial Analyst, CFA Institute----- Certificate in Financial Planning, Boston University---- Masters in Foreign Affairs - University of Virginia---- Bachelors of Arts, Government - Ohio University

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