Found a stack of savings bonds... what to do?

[Kango]

Today my stepdad gave me an envelope he found while cleaning out his file cabinet after my mom divorced him... inside: a whole bunch of savings bonds in my name, that various people bought for me while I was growing up. Very few of them have matured to face value yet, but most are very close. Face value on all of them is around $2600, right now they're worth around $2250 total.

Right now I'm a college student in between my sophomore and junior years. The only money I make is during the summer, and for an entire summer of work I make around $2,500. If I were to cash them all out, I'd almost double this summer's income... however, they WOULD be worth more if I waited a few more years.

The thing is that I'll HOPEFULLY have a full time job after I graduate... of all of my friends who just graduated, their average salary is $52,000/yr. The extra money THEN wouldn't be nearly as useful as the money would be now.

Any suggestions as to what I should do with the bonds? Cash them out and buy some toys? Cash them out and invest in something else? Leave them be?

 

[Kaervak]

Go here to get the actual value with interest first. If you cash them in you will be taxed on them unless you use them to pay for student loans.

 

[Spikesoldier]

save them for a rainy day

 

[Konigin]

Depending on how you handle money I'd say cash them out and invest them in something else, but if you spend money a lot, leave em.

 

[MrBond]

Leave them be. It's a great emergency fund. You never know when you'll need car repairs/etc. You're also not guaranteed that $52,000/yr job.

In the event you DO get that high paying job, $2600 is a nice chunk of change. It could help with a house downpayment or be a downpayment on a car.

It's really hard to not spend "found money", I know, but yesterday you didn't have the money and you were doing fine.

 

[emmpee]

the interest rate on savings bonds is pretty bad, and 'full value' is a meaningless term (it's just a pile of money collecting meager interest slowly). if you could use the cash now, go for it.

 

[Kango]

Originally posted by: Kaervak
Go here to get the actual value with interest first. If you cash them in you will be taxed on them unless you use them to pay for student loans.

Already went there. That's where I got my estimates from. Thanks though.

And I don't know that being taxed on them would hurt me at this income level... last year I got every last dollar that I lost back in my tax refund.

 

[Brymo]

save them... if you know you can get money, why waste something that is still growing? keep it till you retire