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Are I bonds a good investment for a couple in thier 30's. My husband has been buying for years.
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Give us more info. What is the big picture? What does your overall portfolio look like? How much in stocks? How much in bonds and cash? Do you have a 401k, Roth, pension?Steve
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I have some I have had been getting them every since my twenty. I had a personal adviser tell me to get rid of them but I didn't and they really came in handy when I wasn't on DR plan and was having money issues. Once I'm debt fee and have my fully funded EF I'm gong to use them to start saving on my house. I might stop them investing in them for me. I might still invest for my dd. To me the more investments you have the better especially when you aren't really shore of what you are doing.
PS. I think I was using my saving bonds as my EF not really knowing that I was.Comment
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Goldy1,Originally posted by Goldy1 View Post
I think every portfolio should have some bonds in them. I believe some of the earlier I bonds that were issued earlier are getting some pretty sweet interest. If your DH bought all along starting say in 1998, those bonds are earning some good interest! The I-Bonds currently issued don't seem to be that good of a deal--for example, bonds issued back in May 2008, will only be earning whatever the rate of inflation is.
As you know, I-Bonds earn interest in two parts. One is the guaranteed interest that is set at the time the bond is issued and the other part is is set every 6 months based on inflation rates. Here is a link which explains the formula in more detail: Link to Treasury Direct I Bonds.
Composite rate = [Fixed rate + (2 x Semiannual inflation rate) + (Fixed rate x Semiannual inflation rate)]
If you had invested in I bonds in Sept 1998, then the fixed rate is 3.40% plus the current semi annual rate=2.46%
=.034 +( 2X .0246) + (.034 X .0246)
=.034 + .0492 + .0008
=8.4% (If I did the math right) It makes me wish I had a crystal ball 10 years ago...Comment
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