The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Real Estate Investing

URL:  https://boards.fool.com/yes-you-have-a-little-bit-of-interest-rate-risk-23457916.aspx

Subject:  Re: Keep or Sell? Date:  12/21/2005  1:20 PM
Author:  inparadise Number:  7372 of 14302

yes you have a little bit of interest rate risk to your principal, and yes there are some taxes to pay, but TIPS (fixed rate ~2%) look like such a better deal than I-bonds (fixed rate 1%). C

Can you give me some idea of what level of interest rate risk you are discussing? I really know nothing about TIPS.

Between this risk and taxes, which I don't expect to owe even when I cash in my I-bonds given that they'll be put towards our boys' college education, I don't see how a 1% increase in fixed rate is worth it.

IP,
grateful to have a significant cache of I-bonds with a 3.5%+ fixed component

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us