PERSONAL FINANCIAL PLANNING

December 1999

U.S. SAVINGS BONDS: THE DEFINITIVE GUIDE FOR FINANCIAL PROFESSIONALS (4TH ED.)

By Daniel J. Pederson TSBI Publishing, $27.95 paperback, 260 pages. ISBN 1-890394-28-9

Reviewed by William Bregman, CFP, CPA/PFS

In Daniel J. Pederson's U.S. Savings Bonds: The Definitive Guide for Financial Professionals (4th ed.) we have the ultimate reference source for all issues confronted by holders of U.S. savings bonds. Even though we often think of these holdings as small investments, in fact more than 55 million Americans hold more than $180 billion worth of savings bonds. What's sad is that more than $5 billion of these bonds have stopped paying interest.

The text is easy to follow and can be read straight through; however, it will most likely be used as a reference manual. The book is divided into four main sections. The first, "Servicing Savings Bond Owners," deals with a discussion of the overall market and how to analyze a savings bond investment. The next section, "U.S. Savings Bonds 101: The Basics," is the heart of the volume. It covers interest rates; timing and maturity issues; how to purchase, redeem, and exchange bonds; and how to recover lost bonds. "Beyond the Basics" compares savings bonds to other investments and deals with the issues of taxation, trust and estate planning, and the new inflation-adjusted bonds. The final "Resources" section tells where to go for help and provides useful forms and charts.

In addition, the author runs a service called the Savings Bond Informer, which evaluates an individual's bond holdings. Information about the Savings Bond Informer can be found at (800) 927-1901, http://bondinform@aol.com , and http://www.bondinformer.com . *