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Our SINKING FUNDS! -What they and WHY you need them!- Dave Ramsey!

3,267 views · Published 7 December 2017 · 11:55 · Indexed 4 November 2026

Channel: Kelly Anne Smith · 2017 · People & Blogs

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Our SINKING FUNDS! -What is it and WHY you need them!
Technical Definition of SINKING FUNDS: A sinking fund is a part of a bond indenture or preferred stock charter that requires the issuer to regularly set money aside in a separate custodial account for the exclusive purpose of redeeming the bonds or shares.
A better definition is.... With a sinking fund, you save a small amount each month for a certain amount of time before you make your purchase. You determine how much you save by taking the total amount to be spent and dividing it by the number of months you have left until you must pay.
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