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I BONDS......again
Old 10-30-2011, 10:52 AM   #1
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I BONDS......again

I have seen some good discussions on I Bonds, but am curious to know what most people hold in them. For example: I have just retired with a pension, wife still works, and we hold a 401K of modest proportions (slightly above 200K). Most of holding is in cash and 401K. No CD's, individual equities, Bonds, etc.

At age 58, and given the $5000 limit, are I Bonds worth purchasing in my situation? They seem like a good deal and with interest rates likely staying low for at least a year or so (but who knows, right?), buying some I Bonds seems to make sense.

Thanks.
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Old 10-30-2011, 11:39 AM   #2
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Quote:
Originally Posted by vttlarry View Post
I have seen some good discussions on I Bonds, but am curious to know what most people hold in them. For example: I have just retired with a pension, wife still works, and we hold a 401K of modest proportions (slightly above 200K). Most of holding is in cash and 401K. No CD's, individual equities, Bonds, etc.

At age 58, and given the $5000 limit, are I Bonds worth purchasing in my situation? They seem like a good deal and with interest rates likely staying low for at least a year or so (but who knows, right?), buying some I Bonds seems to make sense.

Thanks.
Isn't this more or less a personal call? What does "worth it" mean to you ? It seems like you just said above that they seem to be a good deal.

Ha
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Old 10-30-2011, 11:47 AM   #3
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Good point, and true. I was trying to convey that it is a small piece of the puzzle (only $10,000 a year per couple), but then small pieces counted together.....

Thanks for the reply.
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Old 10-30-2011, 11:57 AM   #4
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I think what you may want to do is consider how you want to allocate all your assets and, if there's room for a tax-deferred, inflation-protected "safe" investment and you don't see a need to get to the cash in less than 6 months, it works as well as anything. You could easily replace part of your "cash" holding with these, again provided that you keep enough cash that you wouldn't need the money within 6 months in case of emergency.
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Old 10-30-2011, 01:15 PM   #5
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Given the continual fluctuation of I-Bond yields, they are an investment that takes some watching and some, (dare I say) timing, especially those of recent years.
The bonds I hold from ~ 2000-2002 are keepers because of the high fixed rate. The bonds I bought a few days ago, and that have been discussed here, likely only have a life span of just a couple of years.
Point being, I Bonds are wonderful, but unlike a 10 year CD that can be tossed in the drawer, they must be monitored a certain amount.
Since their inception, that slight amount of extra effort has been very worthwhile.
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Old 10-30-2011, 03:00 PM   #6
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I Bonds are very popular in certain circles. I just bought some, now it is the EE's I am still pondering...

Also, for the remainder of this year, you can buy $10K per SSN of each kind of savings bond....5K paper and 5K online.
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Old 10-30-2011, 04:37 PM   #7
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Zero. My inflation protection is Social Security.
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Old 10-31-2011, 08:49 AM   #8
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Thanks everyone, for the helpful comments.
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