Creating a New Century ofCreating a New Century ofSavingsSavings

HOW DO WE SAVE?HOW DO WE SAVE?Some Examples:Some Examples:

• MUTUAL FUNDSMUTUAL FUNDS

• SAVINGS BONDSSAVINGS BONDS

• 401K OR OTHER SAVINGS PLANS401K OR OTHER SAVINGS PLANS

• IRAsIRAs

• CDsCDs

• SAVINGS ACCOUNTSSAVINGS ACCOUNTS

Many Financial Advisors Many Financial Advisors Recommend a Balanced PortfolioRecommend a Balanced Portfolio

STOCKSSTOCKS MUTUAL FUNDSMUTUAL FUNDS

Higher Risk/ReturnHigher Risk/Return

SAVINGS BONDSSAVINGS BONDS SAVINGS ACCOUNTSSAVINGS ACCOUNTS CDsCDs

Low Risk/GuaranteedLow Risk/Guaranteed

WHY SAVE WITHWHY SAVE WITH SAVINGS BONDS? SAVINGS BONDS?

• SAFE SAFE

• CONVENIENTCONVENIENT

• AFFORDABLEAFFORDABLE

• LIQUIDLIQUID

• TAX ADVANTAGESTAX ADVANTAGES

WHY SAVE WITHWHY SAVE WITHSeries EE SAVINGS BONDS?Series EE SAVINGS BONDS?

• MARKET-BASED RATESMARKET-BASED RATES

• PURCHASED FOR 1/2 FACE VALUEPURCHASED FOR 1/2 FACE VALUE

• EARN INTEREST FOR 30 YEARSEARN INTEREST FOR 30 YEARS

WHY SAVE WITHWHY SAVE WITHSeries I SAVINGS BONDS?Series I SAVINGS BONDS?

• FIXED RATE & INFLATION INDEXINGFIXED RATE & INFLATION INDEXING

• PURCHASED AT FACE VALUEPURCHASED AT FACE VALUE

• EARN INTEREST FOR 30 YEARSEARN INTEREST FOR 30 YEARS

I BOND DESIGNI BOND DESIGN“Honoring Great Americans”“Honoring Great Americans”

HOW ARE SAVINGS HOW ARE SAVINGS BONDS PURCHASED?BONDS PURCHASED?

Convenient Where You Work

The Payroll Savings PlanThe Payroll Savings Plan• REGULARREGULAR

• AUTOMATICAUTOMATIC

• AFFORDABLE ALLOTMENTSAFFORDABLE ALLOTMENTS

• SAVE IT BEFORE YOU SEE ITSAVE IT BEFORE YOU SEE IT

• CHOICE OF REGISTRATIONCHOICE OF REGISTRATION

4% 5% 6% 5 $ 3,298 $ 3,375 $ 3,459

10 $ 7,320 $ 7,695 $ 8,110 20 $18,194 $20,301 $22,767 25 $25,473 $29,362 $34,066 30 $34,344 $40,963 $49,250

4% 5% 6% 5 $ 3,298 $ 3,375 $ 3,459

10 $ 7,320 $ 7,695 $ 8,110 20 $18,194 $20,301 $22,767 25 $25,473 $29,362 $34,066 30 $34,344 $40,963 $49,250

POWER OF COMPOUNDINGPOWER OF COMPOUNDING

YEARSYEARSOF SAVINGOF SAVING $50 MONTHLY$50 MONTHLY

EDUCATION TAX FEATUREEDUCATION TAX FEATURE Plan 1 Plan 1

• Bonds registered in parent’s nameBonds registered in parent’s name

• Owner 24 years of age at purchaseOwner 24 years of age at purchase

• Child may be beneficiary, but not co-ownerChild may be beneficiary, but not co-owner

• Interest may be excluded if these and other Interest may be excluded if these and other restrictions are met (refer to IRS Publication 550).restrictions are met (refer to IRS Publication 550).

EDUCATION TAX FEATUREEDUCATION TAX FEATURE Plan 1 Plan 1

INCOME LIMITS*INCOME LIMITS*

• Joint Filers: $83,650 - $113,650Joint Filers: $83,650 - $113,650

• Single Filers: $55,750 - $70,750Single Filers: $55,750 - $70,750

*For 2001—Adjusted annually for inflation.*For 2001—Adjusted annually for inflation.

EDUCATION TAX FEATUREEDUCATION TAX FEATUREPlan 2Plan 2

• Register bonds in child’s nameRegister bonds in child’s name

• Parent may be the beneficiaryParent may be the beneficiary

• Child reports interest annually or defers until Child reports interest annually or defers until redemptionredemption

• First $750* earned annually is tax exempt First $750* earned annually is tax exempt

• The next $750* is taxed at the child’s rateThe next $750* is taxed at the child’s rate

*For 2001--Subject to adjustment annually.*For 2001--Subject to adjustment annually.

www.savingsbonds.govwww.savingsbonds.gov

• Free software (The WIZARD)Free software (The WIZARD)

• On-Line Savings Bonds Calculator On-Line Savings Bonds Calculator

• Current bond valuesCurrent bond values

• Interest ratesInterest rates

• FormsForms

• Description of bond programsDescription of bond programs

• Answers to your questionsAnswers to your questions

• Visit us atVisit us at www.savingsbonds.govwww.savingsbonds.gov• Read the Information BrochureRead the Information Brochure

• Call 1-800-4US-BONDCall 1-800-4US-BOND

For more information:For more information: