Should Savings Bonds be Used to Help Pay for Senior health insurance
May 22nd, 2009
In this economy it is very difficult for many young people, and senior citizens who have small businesses to pay for their senior health insurance plans. Personal health insurance and self-employed health insurance can be very costly. The economy may not get better for a long time to come. If you look back in history, you can see that some methods actually worked to boost the economy.
Just a few decades ago, US Savings Bonds were a very popular way for a young person to invest in his/her future. Since 2003, savings bonds have become less popular as an inexpensive way to save money. Savings bonds can be purchased at 50 percent of their face value. In 5 years, from the date of purchase, US Savings Bonds reach their maturity date. If you want to become self-employed in your later years, your savings bonds could be used to purchase self-employed health insurance. Instead of struggling each month to pay the premiums, you could either pay for self-insurance, or you could pay premium at monthly, quarterly, or yearly intervals.
After US Savings Bonds have matured they can be cashed out for their full value. All you have to do is wait on them. You could also continue to leave the bonds intact without cashing them in, and they will grow interest over and above their face value. If you are a fairly young person, you could purchase US Savings Bonds every payday, and when you approach your retirement years you could have a significant amount of money saved for anything you wanted to do. Since health care costs are so expensive, health insurance rates have gone up. Many people, when they retire, like to continue to work. Doing odd jobs, or freelancing is a great way to keep your mind active when you get older. Health insurance for the self-employed is expensive, and it will be even more expensive by the time you approach your retirement years. A personal nest egg paid for by government bonds would be an inexpensive way to finance your own future health insurance needs.
US Savings Bonds were first known as Liberty Bonds. The sale of Liberty Bonds was used to help finance World War I. Today a small percentage of people in America still buy savings bonds. In fact the US treasury closed 41 offices that sold US Savings Bonds. A large section of society is not interested in buying bonds, because they have to wait so long for a return on their investment. If more young people would only think about savings bonds as a way to finance their health insurance needs when they get older, fewer people would be worrying about their futures. Health care becomes more important to us as we age. In recent years more young men and women are investing in the stock market. They also invest in real estate and anything else that can give them a quick return on their investments. Savings bonds could be a way to boost the US economy, if more people began buying them once again.
By investing in government bonds, you could become self-insured and save a significant amount of money in the long run. US Savings bonds can be purchased in the amounts ranging from $100 to $5000. They are bought for 50 percent of their face value. For instance, if you bought a $5000 bond you would pay $2500 for it. If more young people in their 20s and 30s would make it a priority to purchase US Savings Bonds they could use them to pay for health insurance. Even if you never decide to work for yourself when you reach retirement age, you could use the bonds to purchase supplemental health insurance. When you retire you will be eligible for Medicare; however, you would need extra health insurance to pay for the remaining health care costs. Savings bonds could be a fairly inexpensive way to gain financial security in your golden years.
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