[net.invest] ZERO CUPON BONDS

merrill@5424.DEC (Rick - Font Mgr. for Hardcopy Engineering) (07/23/85)

These are great for an IRA (tax deferred) and for "poor" children who do 
not make enough to have to pay taxes.  Otherwise they are terrible because
you have to pay the taxes year to year but the money is tied up for term.

Zeros are a good way to *attempt* to pay for college for a child who will
be going (you hope) in 10 yrs.

RMM

merrill@dec-raja.UUCP (03/20/86)

ZERO CUPON BONDS SHOULD ONLY BE PURCHASED 
FOR CHILDREN WHO PAY NO TAXES OR BY AN IRA FUND
THAT PAYS NO TAXES.  OTHERWISE YOU HAVE TO PAY THE
TAXES ON THE INTEREST WHICH YOU CANNOT CASH UNTIL THE 
WHOLE THING IS PAID, *IF* IT'S EVER PAID!

	RMM