Page 18 - Talk of Tequesta - February '24

Page 18, The Talk Of Tequesta

FinanCial FoCus ®

Treasury Bonds: Still Safe For Investors

By Sally Sima Stahl
You may have read • Treasury note – Matures in between one and 10 years Once your TIPS matures, if the principal is higher than
reports about an impending • Treasury bond – Typically matures in 10 to 30 years the original amount, you’ll get the increased amount; if
“debt crisis” in the United When you buy Treasury notes or bonds, you receive the principal is equal to or less than the original amount,
States. Should you be semiannual interest payments, but when you purchase a you’ll get the original amount. TIPS pay a fixed interest
worried about investing in Treasury bill – a T-bill – you generally buy it at a discount, rate semiannually until maturity, but because interest is
Treasury securities? and when the bill matures, you receive its face value. So, paid on the adjusted principal, the amount of your interest
Part of the concern for instance, you might pay $4,700 for a 13-week T-bill and payments can vary. As with other Treasury securities, you
over debt has been driven get $5,000 back at the end of the three months. can hold a TIPS until maturity or sell it before it matures.
by the cost of government When investing in Treasury securities, you’ll want to keep Don’t let scary or gloomy predictions discourage you
borrowing, which has risen these features in mind: from considering Treasuries – they remain a good option
because of higher interest • Price fluctuation – While your interest payments will as part of the fixed-income portion of your investment
rates. But it’s worth noting always remain the same, the market value of your Treasury portfolio.
that while interest expenses have risen to nearly 2 percent of security can change. So, you might not get face value for a This article was written by Edward Jones for use by
gross domestic product (GDP), this measure had exceeded Treasury bond if you sell it before it matures, particularly your local Edward Jones Financial Advisor, Edward
3 percent in the early 1990s. So, while the upward trend of if market interest rates are higher than the rate you’ve been Jones, Member SIPC.
federal debt could prove problematic down the road, the receiving. Because longer-term bonds have more payments Edward Jones is a licensed insurance producer in
claims of a current crisis may be overblown. And Treasury left to make than shorter-term ones, they are more sensitive all states and Washington, D.C., through Edward D.
securities are still considered among the safest investments to interest rate changes and market price fluctuations. Jones & Co., L.P., and in California, New Mexico and
in the world, as they are secured by the full faith and credit • Taxes – Interest income from Treasury securities is Massachusetts through Edward Jones Insurance Agency
– that is, the ability to borrow and tax – of the United States. subject to federal income tax but exempt from state and of California, L.L.C.; Edward Jones Insurance Agency of
In any case, if you haven’t invested in Treasury securities, local taxes. New Mexico, L.L.C.; and Edward Jones Insurance Agency
you’ll want to know the basics. First of all, when you In addition to the traditional Treasury bonds, bills and of Massachusetts, L.L.C.
purchase a Treasury security, you’re lending money to the notes, another option is available: Treasury Inflation- Edward Jones, its employees and financial advisors
federal government for a specific period of time. Protected Securities (TIPS). Unlike other Treasury cannot provide tax advice. You should consult your
Here are your purchase options: securities, in which the principal is fixed, the principal qualified tax advisor regarding your situation.
• Treasury bill – Typically matures in four, 13 or 26 weeks, of a TIPS can move up or down, based on movements in Contact us at (561) 748-7600, Sally Sima Stahl, AAMS,
although some have maturities of up to a year the Consumer Price Index for Urban Consumers (CPI-U). 1851 W. Indiantown Road, Ste. 106, Jupiter, FL 33458.

it’s the Law

Did You Know That, In Florida…

By Adam S. Gumson, Esq.
A discretionary trust acquired during the marriage. Such a division also between simplicity and legal protection.
is a legal arrangement that encompasses a division of the marital debt. Sometimes Jupiter Law Center is a private neighborhood law
allows a trustee to hold and equitable distribution appears unfair, such as when both firm located in the RiverPlace Professional Center, 1003
manage assets on behalf spouses are held responsible for one-half of the debt even W. Indiantown Road, Suite 210, Jupiter, Fla., (561) 744-
of beneficiaries, providing if only one spouse racked up 100 percent of the debt. 4600, jupiterlawcenter.com. The firm provides peace of
flexibility and control A limited liability company (LLC) is a popular mind by solving problems with integrity and compassion
over the distribution of business structure known for its flexibility and liability in the areas of estate and business planning, probate,
those assets. Unlike fixed protection. Members of an LLC enjoy limited liability, guardianship and trust administration, probate and
or mandatory trusts, a separating personal assets from business debts, making it guardianship for personal injury firms, family law and
discretionary trust grants the an attractive option for entrepreneurs seeking a balance real estate.
trustee the choice to decide
how and when the trust assets
are distributed, allowing the trustee to respond to changing
circumstances and the varying needs of beneficiaries while
maintaining a level of asset protection.
In probate, if a fiduciary bond is not waived by the
decedent’s will or the court, the personal representative
will be required to obtain a bond and file it with the court.
A petition can be filed by any interested person requesting
that the bond be waived.
Equitable distribution in a divorce encompasses
a fair division of marital debts as well as those assets

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