http://thefinancebuff.com/2006/10/i-bonds-rate-guess-for-nov-1-2006.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 http://thefinancebuff.com/2006/10/i-bonds-rate-guess-for-nov-1-2006.html/comment-page-1#comment-1701 sewall Thu, 12 Mar 2009 13:46:30 +0000 http://blog.thefinancebuff.com/?p=11#comment-1701 This article doesn't discuss other reasons to select I-Bonds over TIPS or vice versa. I'm not suggesting it should but thought I'd just make a comment about another consideration. If one does not know when one will need the funds and doesn't want to potentially deal with the secondary bond market, one often turns to bank savings accounts, money market funds, or CDs. I-Bonds offer a good alternative to all of these. The tax-deferral is a nice feature and the earnings are tax-free if used for college expenses (subject to some AGI limits). So, I-Bonds do make a nice vehicle for some of one's emergency fund, for example. Just don't plop it all in at once as there is a one-year waiting period before you can get your money out (and a 3-month forfeiture of interest within five years of purchase). This article doesn't discuss other reasons to select I-Bonds over TIPS or vice versa. I'm not suggesting it should but thought I'd just make a comment about another consideration. If one does not know when one will need the funds and doesn't want to potentially deal with the secondary bond market, one often turns to bank savings accounts, money market funds, or CDs. I-Bonds offer a good alternative to all of these. The tax-deferral is a nice feature and the earnings are tax-free if used for college expenses (subject to some AGI limits). So, I-Bonds do make a nice vehicle for some of one's emergency fund, for example. Just don't plop it all in at once as there is a one-year waiting period before you can get your money out (and a 3-month forfeiture of interest within five years of purchase).

]]> http://thefinancebuff.com/2006/10/i-bonds-rate-guess-for-nov-1-2006.html/comment-page-1#comment-4 Frugal Frugalson Thu, 19 Oct 2006 17:39:00 +0000 http://blog.thefinancebuff.com/?p=11#comment-4 I say the fixed portion will be cut back to 1.0%. Since the FOMC is still concerned about inflation, I think that the Treasury will be conservative so they don't get burned if the variable portion spikes for the second 6 month period. I say the fixed portion will be cut back to 1.0%. Since the FOMC is still concerned about inflation, I think that the Treasury will be conservative so they don't get burned if the variable portion spikes for the second 6 month period.

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