Plan B Forum

The other day I decided to look at the ten EE US Savings Bonds that I purchased in 1992 because I realized they will no longer pay interest after March 2022 - 30 years from when I bought them. After reading about them, I realized something I'd never known before - or maybe I had forgotten.

Although I could leave the bonds indefinitely in US Bond limbo earning no interest, they will be federally taxed in 2022 whether or not I cash them in. So, being the financially strategic investor that I am, I waited for September's quarterly interest payment to be added to their value and just cashed five of the ten bonds. This will allow me to spread and lessen my tax liability for this year and next.

Why did I write about this? I don't know. Just seemed like a topic some people might have an interest (get it?) in. btw - My EE Bonds were earning 4% interest, which a very good return for nowadays. I have I Bonds also and they're earning 4.71% interest.

FWIW.

Joe Guy wrote: ↑

Thu Sep 30, 2021 12:40 am

Why did I write about this?

Because you are a fan of Bonds!

And here is the new Bond: https://www.imdb.com/title/tt2382320/

Any interest?

Wait a minute, so I will have to pay taxes even if I just have interest in seeing that Bond, whether I go or not?

Ha! Sounds a lot like my "Ernie" bonds from the 50s. Mothers, aunts and grandmas purchased Post Office savings bonds for sweet children like me to cash in one day. In the meantime, Ernie the computer would (randomly) pick bond numbers to get cash prizes.

A year or so back, I decided to do something with 'em. Cash them in for a beer or something, only to be told that only the original purchaser could do anything. Probably if one of my numbers came up in the sweep, they wouldn't let me have that either. That's several 1950s quids down the drain - probably as many as 20

Meade--all is not lost; see the attached link for cashing bonds after the registered owner (I presume this was the purchaser in your case) dies:

https://www.treasurydirect.gov/indiv/re ... death.html

For UK "Premium Bonds" (which is what i think that Prize fund bonds are), see the following:

https://www.co-oplegalservices.co.uk/me ... ium-bonds/

I bet there are many a US Savings bond that has gone lost and never had to be paid on.

When I was in grade school, they used to sell US Bond stamps (25 cents each) which could be exchanged for a bond ($18.75 for a $25 one) when the book was full. When we moved to another state we tried to cash the uncompleted booklets in and were told we could not (you needed to buy a full bond and redeem it); I'm pretty sure I still have around $6.00 in stamps somewhere in my home. Somehow I imagine this was not the case but that the bank (or school) just didn't want to be bothered.