Show LheLoeger SwuWtheAmBeinra A financial ciQwrt tab Vm mnwrA(ni best way to put vaslstax- - money aside - a year are taxed it Ms parentsT mta m& km tuna M Altar fforachfld M400 Of grandchBd The child isn’t taxed on your gift And ya wmatewaa federal gift tax if you IMt you gifts to $10£0Q paslouedeaapar year If yotfM worth more Him $02000 areUtf£ft cm reduoe ' " ' i': your federal aetata You can eaifr — up a ouetodhd aooouai at day flnanciafr AN aarvioe firm- - tun t ‘ iwnwiffum t'&iT s By lnn Brenner BALL WANT THE SAME tiny when we live for our loved ones: an investment with low risk high returns and if poaablt a tax bteak too The bad news: Then is no such product The good newt: You can achieve your goals by combining several investments and keeping an eye on die calendar TVvo products pitched ai college investments are best used spar- - old problem: dry irritated itchy skin? ingly Their risk is very low— but so py is their return: Troaaury federal bonds sell for a frac- tion of their free value Instead of periodic interest payments you get interest and principal in a lump sum when the bonds mature With zeroes you know exactly what you'll earn and can choose bond maturities that match your child's college yean The drawbacks: 1) The bonds' owner is taxed annually on the interest although it's not paid until maturity 2) Ifyou sell zeroes eariy you may lose money because their market value can fluctuate dramatically AaMfetCVAMMysaaLoagaadEcInri — hrHnStoiimaaMOirOaaunarHlJMlMTtMMMf TtDERMv aaaaiwiMiMnMiBataiMiwiaiaMMiaauiaa iMBaauaiaBMBMiciaaHm naaMaaMkixMmitfftura exempt from state and local taxes There’s no federal tax until the bonds are cashed fat-a- nd no tax at all when yon use them to pay for college expenses if you meet the following requirements: 1) The bonds were purchased after 1989 and the owner turned 24 before they were issued 2) The bonds are held and redeemed by die parent Bonds that are owned by a grandparent don’t get the tax break ream Maas'SHaoNia |