If you would like
to have further information on any of these articles, let us know. We
would appreciate receiving your comments and/or suggestions, anytime!
acarroll@pmcpa.com
1. I-Bonds and How They Could Fit Your
Investment Goals
In recent weeks fears of renewed
inflation have upset the markets. If inflation has you worried, you
should take a look at Series I U.S. savings bonds (I-bonds). They're
not the right investment for everyone, but they might have a place in
your portfolio.
I-bonds are a safe investment - like
other U.S. savings bonds they're backed by the U.S. government. But
they have one unique feature. Their interest rate is adjusted every
six months based on changes in the consumer price index. So if
inflation increases, the rate you earn on your bonds will follow. You
don't have to worry about being locked in to a below-market interest
rate. This feature, combined with other advantages of U.S. bonds,
makes them an attractive investment for some situations.
Here's a recap of their basic features:
-Maturity. I-bonds
earn interest for 30 years, but you can redeem them after 12 months.
You'll forfeit one quarter's interest if you cash them in within 5
years.
-Interest. Interest
accrues monthly and is compounded semiannually. The interest rate has
two components: a fixed rate over the life of the bond, and a
variable rate that changes every six months, linked to inflation.
Interest is paid when you redeem the bond.
-Taxes. I-bonds are
exempt from state and local income taxes. You can defer paying
federal income tax on the interest until you redeem the bond, or you
can choose to pay tax annually as the interest accrues. This
alternative may be preferable if you register the bond in a child's
name.
-Other tax breaks. If
you use the proceeds from an I-bond to pay for qualified education
expenses, the interest may be free of income tax.
-Purchase. You can
buy paper I-bonds through a financial institution, or electronic bonds
on the Internet. The annual limit is $30,000 of each type.
Denominations start at $25.
Whether you're buying I-bonds for
yourself or for a child's education, check with our office first. How
you register the bond and how you pay taxes on the interest can affect
the tax advantages you'll receive.
2. Tech Tip Weekly: Make MS Outlook Talk to MS Word
If you tell MS Outlook that you want to use
MS Word as your e-mail editor, you'll have the power of MS Word (and
its formatting features) at your disposal when creating e-mail.
To use MS Word as your e-mail editor,
follow these steps:
-
In the MS Outlook menu, choose Tools, Options.
The Options dialog box opens.
-
Click the Mail Format tab in the Options dialog box
-
In the list box named Send in This Message Format, choose
Microsoft Word.
-
Click OK.
Remember that
only the recipients who also use Microsoft Word and Outlook will be
able to read many of the advanced Word formatting features that you
add to your e-mail. In some cases, using MS Word as your e-mail editor
also makes MS Outlook perform somewhat slowly, so you may do just as
well choosing plain text or HTML as your message format.
3. Focus on Fraud: 2006 Report to the Nation
The Association of Certified Fraud Examiners (ACFE) has just published
the 2006 Report to the Nation on Occupational Fraud and Abuse, the
most comprehensive examination of the effects of occupational fraud to
date.
Based upon 1,134 fraud cases reported by Certified Fraud Examiners
(CFE) who investigated them, the 2006 RTTN categorizes the ways in
which serious fraud occurs and measures the losses organizations
suffer as a result of occupational fraud. It also examines the
characteristics of the organizations that are victimized by
occupational fraud and abuse, as well as the characteristics of the
employees who commit these crimes.
The 2006 RTTN offers valuable lessons and insights about how fraud is
committed, how it is detected, and how its impact can be reduced.
This information should be of great interest to all organizations,
businesses, government agencies, and anti-fraud professionals that are
working to limit their exposures to fraud.
Next week’s article: Executive Summary of
the 2006 Report to the Nation
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