len@qumix.UUCP (Leonard Labar) (07/11/85)
Has anyone out there had experience with zero coupon bonds? Sears has them for 10.38% return over 10 years locked in. Our tax man/investment consultant advised us on them. We're considering transferring part of our IRA and part of our sons trust fund into them.
gene@batman.UUCP (Gene Mutschler) (07/14/85)
> Has anyone out there had experience with zero coupon bonds? Sears has > them for 10.38% return over 10 years locked in. Our tax man/investment > consultant advised us on them. We're considering transferring part of > our IRA and part of our sons trust fund into them. They're too new for many people to have had experience with them, I think. The main reason being that they don't make much sense unless tax sheltered. (Unless of course you LIKE paying taxes on income that really isnt there...)
john@hp-pcd.UUCP (john) (07/19/85)
<<<<< < < < The main reason being that they don't make much sense unless tax sheltered. < (Unless of course you LIKE paying taxes on income that really isnt there..) If he didn't he wouldn't be paying taxes on his FICA withholdings. John Eaton !hplabs!hp-pcd!john
johno@rruxo.UUCP (J OBrien) (07/19/85)
Zero Coupons hav actually been around for a while. Its the treasury zero coupons that are new (generally called CATS or STRIPS). Zeros are okay for IRA's, since you defer paying the tax. They are super for a college fund for a kid because they are usually in a low tax bracket and will have to pay almost no tax as the bonds build value. John O'B