Savings Bonds

Me | 8-13-03 | Me

[michwm]

Was wondering if buying savings bonds, "I" series, are worth the $$$$$ spent??

Your inputs will help. THANKS!!

[Pro-Bush]

It would be a good buy if you think Interest rates are going to rise in the future. Bonds have tanked over the last three years.

[bmwcyle]

Buy Gold

[Reeses]

I read that investing in savings bonds is not the best deal around. If you are saving for long term, 15 years plus, a stock index fund would probably make you much more money. If you are nearing retirement, the rule of thumb is to move out of stocks and into bonds, or bank CDs, or T-bills. If you are a socialist and anti-capitalist, then savings bonds are a way to support government spending.

[Chewbacca]

Buy some gold and silver coins and some good non-hedged gold mining stocks.

You will get a better return on your money.

Go to http://www.gold-eagle.com/cgi-bin/gn/get/forum.html
to get a minute by minute run down of the market.

A cool site.

[ErnBatavia]

Mrs. Bat and I "parked" some money in I Bonds about a year and a half ago; liked the non-taxable portion, as well as the fact that the earnings beat the hell out of Money Market rates....plus they're safe.

[KarlInOhio]

They were worthwhile. I've got some that are paying 6.6%. Just try to find that rate now.

Newly issued bonds have a current rate of 4.66%, which is 1.1% fixed + 3.54% variable based on inflation. You must hold them for a year, and if you hold them for less than 5 years you lose your last 3 months of interest.

What are your alternative things to do with your money? Money markets are around 1% and CD rates stink too. If you have any debts, especially credit cards, it might be better to pay those off.

[FlyVet]

They were worthwhile. I've got some that are paying 6.6%. Just try to find that rate now.

You must have bought yours right after they came out, which is what I did. I'm real happy with that rate, tax-deferred. I'm going to sit on mine as long as possible. It's a nice inflation hedge.