UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: mojopo Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75793  
Subject: I bonds Date: 9/9/2000 10:22 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have been trying to find information, better yet, someone's opinion on the government inflation indexed I bond. It seems like a very good investment but nobody has written anything about it.

I bonds are issued at face value, they earn a fixed rate of return and a semiannual inflation rate based on CPI-U. They earn interest for 30 years and interest is paid when the bond is redeemed. Earnings are exempt from state and local income taxes. Federal income taxes are deferred for 30 years or until the bond is redeemed.Right now I bonds earn 7.49%. And there is no risk of losing the principal as the bond is backed by the U.S. government. And there are no fund fees or broker commissions to pay. I bonds can be bought from Treasury Direct without paying any fees.

Am I wrong or is this a great investment? I haven't found any bond fund (or munis and treasury bills and notes) that yield 7.49%.

I'm looking forward to your opinion.

Mojopo
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement