THE DOWNLOAD MONEY MATTERS
When clients have large capital gains years, they can buy the maximum $10,000 in I bonds to defer federal taxes on the interest until redemption.
BONDS GO DIGITAL People don’t buy savings bonds much anymore because they’re not as easy to purchase and there are better savings alternatives. “For decades, they offered a
simple, government-backed return that was hard to beat,” says Zach Gold, managing partner at Cruz Gold & Associates, an estate planning firm in Ewing, New Jersey. “Then, the world changed. High-
yield savings accounts and index funds emerged, providing easier access (to principal) and significantly better returns with similar safety. “The final blow was the death
of the paper bond. The shift to a completely digital system at TreasuryDirect removed the tangible, giftable element that made them so popular for birthdays and holidays,” Gold adds. Few financial advisers recommend
savings bonds today. “From a business perspective, we stopped actively recommending them around 2010, when CDs and money market accounts started offering comparable rates with better liquidity,” says Yencho. They suffer from poor liquidity,
but the main issue is their terrible returns, says David P. Fritch, CPA and founder of Fritch Law Office in
Jasper, Indiana. A 20-year doubling period
translates to a compound annual growth rate (CAGR) of 3.53%. By comparison, a current 20-year Treasury bond yields 4.86%. “For gifting to children, I
recommend 529 education plans instead,” says Fritch.
TAX BENEFIT However, the one thing that makes savings bonds uniquely attractive is their tax advantages. “I’ve watched savings bonds
become a fascinating tax planning tool that most people completely overlook,” says Fritch. “The real opportunity isn’t the interest rates — it’s the tax deferral feature that can be incredibly powerful for strategic planning.” For clients earning $200,000 to
$2 million annually, Fritch uses I bonds as part of a tax-loss harvesting strategy. When clients have large capital gains years, they can buy the maximum $10,000 in I bonds to defer federal taxes on the interest until redemption. “I had one business owner client
who accumulated $80,000 in I bonds over eight years, then cashed them out during a low-income retirement year, saving thousands in taxes,” he says.
calculator to see its current value and maturity date. If you have lost or misplaced your savings bonds, you can look them up using the bond owner’s Social Security number via TreasuryDirect’s Treasury Hunt Search at TreasuryDirect. gov/TH/search-tin. If you locate the bond(s),
you will be directed to fill out and submit FS Form 1048, where you can request to have the bond reissued electronically (if it hasn’t matured) or receive a cash payment for it. If you have old paper bonds,
you can cash them in at your bank or through the TreasuryDirect website.
CATCH-UP CONTRIBUTIONS If you’re over 50 and participating in a 401(k), 403(b), or 457(b) plan, you’re eligible to make catch-up contributions in addition to regular contributions to your workplace retirement plan. But there’s a new wrinkle for 2026. You’ll have to make catch-up contributions to a Roth account if you earn over $150,000. This means you must use after-tax dollars for the catch-up portion of your retirement savings. The $150,000 income requirement will be adjusted for inflation.
HAPPY RETURNS The National Retail Federation
reported that 85% of retailers used AI to combat return fraud over the holiday season. While 45% of retailers said it’s effective, 40% report mixed results. The trade association ranked fraud types by prevalence: overstated quantity, decoy returns, price switching, label tampering, empty box or box of rocks, and no proof returns.
1970S-ERA MEALS First popularized in the inflation- fueled 1970s, Hamburger Helper was a budget-friendly way to stretch a pound of ground beef and make a family meal. Today, as consumers struggle under the weight of higher food and healthcare prices, layoffs, and squeezed household budgets, Hamburger Helper is returning to popularity. The product’s sales jumped 14.5% last year, according to Eagle Foods. Shoppers feeling the pinch are also turning to canned tuna, salmon, sardines, and boxed mac and cheese, as well as dried beans and lentils, rice, pasta, oats, tortillas, and potatoes.
CONSUMERS CUT BACK Consumers are planning to be more frugal in their spending over the next six months, according to a new survey by consulting firm PwC. Consumers cited tariffs, rising prices, and a higher overall cost of living as reasons for spending less. That’s the first such decline since 2020.
JANUARY 2026 | NEWSMAX MAXLIFE 83
ISTOCK.COM/FLYNAVYJP
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