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From: 4373jml@homxb.UUCP (J.LISS)
Newsgroups: net.invest,net.taxes
Subject: Re: zero-coupon bonds
Message-ID: <1318@homxb.UUCP>
Date: Wed, 12-Mar-86 16:53:28 EST
Article-I.D.: homxb.1318
Posted: Wed Mar 12 16:53:28 1986
Date-Received: Fri, 14-Mar-86 06:23:41 EST
References: <150@daisy.UUCP>
Organization: AT&T Bell Labs, Holmdel NJ
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Xref: watmath net.invest:1197 net.taxes:1082


It is my understanding that unless the bond pays signigicantly more than
other saving media it is of now tax advantage.  I have purchased 4 zero
coupons bonds for my sons education and will do like wise when I have another
child.  I have been told by Shearson Lehman, that every year I will have
to file a return for him, (the bonds are in both our names, his ss #).
The return will indicate the earned interest for the year even though we didn;t
collect any of it.  At some point I will have to start paying income tax for
him.  I beleive zero coupon bonds are an excellant vehicle for those that
want security and save for a childs education.  I don't see any other reason for it.