Posted on 02/25/2011 9:05:52 PM PST by Little Pig
Given the horrendous monetary policies currently being pushed by the Fed, the national debt situation, and the disastrous economy, is there any point now in buying Savings Bonds as a long-term investment instrument? If not, what other instrument might be better? I'm looking into an investment instrument I can purchase now for an infant child that will provide a return on investment in the future.
The money is fully backed by the federal government! You can trust them... < /sarc >
When the dollar is worth nothing, will any bonds be worth buying at all?
Hey - if ya run out of TP ...
I Bonds are inflation protected bonds, but currently pay 0.00% interest. EE bonds pay a fixed rate for life.
If you think that we’re in for massive inflation, I Bonds would be the bonds I’d buy. Stay away from EE Bonds.
You can also purchase gold or silver coins as gifts, but there is not guarantee that the value won’t tumble, if you think gold and silver are in a bubble right now.
Gold bullion coins.
If this is for a treasured loved one, how about a whole life insurance policy? A policy with a $50K benefit is relatively cheap, can be cashed out in the event of an emergency, gains interest, and is tax free (for now).
I bought one for each of my children. By the time they are 18 (presuming it all doesn't go to pieces by then), it will be worth over $10K, which is a lot more than what I put into it.
Is it the best possible investment out there?
No.
Is it the worst possible investment out there?
No.
I buy ‘em thru a payroll deduction plan at my workplace. I like ‘em. Plus if you have kids, they can be redeemed (tax-free) to pay for education.
Visit this website for more info:
Silver & gold... I buy coins for the kids and also have some bonds and an education fund for the kids as well.
Silver & gold... I buy coins for the kids and also have some bonds and an education fund for the kids as well.
NO
/johnny
You should have bought some Exxon Mobil stock about 6 months ago.
If things settle down a bit in the ME and the price comes down a bit, it might not be a bad time to buy in case they have another stock split in the future.
Do an Internet search for “CD ladder”, it’s not complicated, but there is more work than buy and forget. Also, a silver American Eagle and a tenth or quarter ounce gold Eagle each year isn’t a bad hedge; plus you’re dollar-cost-averaging. FWIW.
This is a one-time purchase, and is actually coming from the baby’s grandparents. I thought about precious metals, but they require either a large up-front investment, or as noted here, multiple purchases over time. I’d really like something that does pay interest, so the initial purchase which won’t be all that large, can develop into something more substantial over time. Over the short term, metals can be a good wealth hedge, but 20 years from now, there’s no telling what the actual value will be. It sounds like bonds might not be the way to go, since EE is a fixed rate, and given the current policy of the fed, there is a good chance an EE bond will be worthless; the I bond doesn’t pay any return, so it’s more like metals in that it will hold its value, but can’t really appreciate in value.
No.
Once the dollar fails, all bonds worldwide are worthless. Every financial commitment and every contract ever signed in the last 100 years...worthless.
Sad, but that's where we're at.
I think that they are good if you are going to diversify your portfolio. You don’t want to put everything in one basket. So yes have some savings bonds, mutual funds, individual stocks, CDs, bank account, IRA, etc. Yes some may only provide a small interest right now but over time you should make money on the whole portfolio.
Please let me know i you find something. I am a little tired of earning .08 on my CD’s.
The problem with savings bonds for your kids is that the politicians keep changing the rules. Over the years, I bought enough savings bonds for my two kids to pay for a couple of years of college, each. They were to be tax free if used for college. The rules changed several times before they were finally cashed in, and the tax free benefit was modified considerably. Be careful of the conditions, too. One of my own bonds stopped paying interest after 25 years.
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