DFI Wealth Management
Since 1983
Daniel F. Iuculano, CFP® AAMS
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Daniel F. Iuculano

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Certified Financial Planner

Accredited Asset Management Specialist SM

Chartered Mutual Fund Counselor SM

Contact: Dan Iuculano

Phone: (904) 302-8911

Email: danieli@dfi-wealth-mgmt.com



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May Commentary 2012...

May Commentary 2012


TreasuryDirect just posted new US Savings Bond rates yesterday and these rates are adjusted every six months in May and again in November of each year.

 The EE Savings Bond had (no change) this period and remains at 0.6 % per year for any bonds purchased between the first of May and the end of October. Once the bond is purchased the rate stays in effect for the next 30 years.

 I do not recommend the EE bonds as the rates are fixed once purchased and locked in for 30 years.

 The I bond dropped from 3.06 percent to 2.20 %, however unlike the EE bond the rate is adjusted every six months based on inflation data and current rate of Treasuries. Once purchased the bonds continue to earn interest for 30 years.

 If you are looking to park emergency funds with a guarantee of principal, the I bond is hard to beat. Usually the rate is better than banks pay on CD’s, savings accounts and money market accounts.

 Beginning this year, savings bonds are no longer available from your local bank; the only way to purchase is online at TreasuryDirect.com or via payroll deduction if your employer provides that saving plan.

 There is a limit on a calendar basis on how much one may purchase $10,000 per social security number. Your interest accumulates tax deferred until you redeem your bond, though you may elect to pay the taxes on the interest earned annually.

 Most market experts feel that the overall market will end up positive for the year, though April we witnessed a decline in all of the major indices. Expect continue market volatility through out the year as economic data will be mixed along with continued troubles in Europe.