What is an i Bond?

My father says this is a great investment for me. I have $50,000.00. Stocks, Mutual funds, or this so called I bond?

I-bonds are issued by the US government and guarantee a fixed rate of return above inflation. Currently, I-bonds guarantee 1.4% above inflation (see source below). The current rate of inflation for the next six months is 1.0%, so an I-bond purchased today would have an effective annualized yield of appoximately 2.4%.

This is a pathetic return for someone trying to grow a nest egg. Earning 2.4%, your investment will double in about 30 years. Adjusted for inflation, it would take 50 years. Compare this with the stock market, where you can expect a nominal return of 10% and an inflation-adjusted return of 7%. Adjusted for inflation, it takes about 10 years for your investment to double in buying power.

I-bonds are good for people of retirement age who would like a guaranteed return above inflation.

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