401(K) Plan Popularity Grows
The Profit Sharing/401(k) Council of America is offering a new brochure that explains the benefits of this increasingly popular retirement-savings program.
“Take Control” uses extensive graphics to illustrate how substantial sums can accumulate with even small, regular contributions made over several years.
Also included are suggestion about ways of saving, and where to look for additional information retirement planning.
To get a copy, write: Take Control; 625 N. Michigan, Suite 2400; Chicago, Ill; 60611.
In a recent study conducted by the council, profitsharing and 401(k) plans were second in popularity only to health insurance among those asked which benefits they would want from an employer.
Money workshop offered
The Consumer Credit Counseling Service of Spokane will hold a workshop on money management Tuesday from 6:30 p.m. to 9 p.m. in its offices at N1912 Division.
The cost is $18 per person, with spouses free.
For information, call 327-3777 or 1-800-892-6854.
Sound budget would drop rates
Since last November’s election, the interest rate on 10-year Treasury bonds has fallen from 8 percent to 6 percent. ISI Group Inc.’s Edward Hyman, a smart Wall Street economist, told Republican members of Congress that if they get their balanced budget passed, rates will drop another full point.
Buying Treasury bonds now seems to make sense. Inflation is extremely low, and Hyman is one of several economists who see growth slowing sharply in this quarter and the next. Believe it or not, a bond yielding 6 percent could look very attractive in 1996.
Savings bond sales plunge
Treasury bonds may make sense, but apparently investors in Series EE U.S. Savings Bonds want no part of this bargain.
Sales in the fiscal year that ended September 30 were off 32 percent from the prior year. In the last six months of the period, a bond held for less than five years would yield 5.25 percent.
By comparison, one-year certificates of deposit or money-market funds were paying 5.75 percent.
Rates of the EE Bonds were reset even lower at 4.75 percent - as of November 1. The adjustment is expected to drive sales down further.
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