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Are savings bonds a good investment now? |
Are savings bonds a good investment now? right now they are the safest thing out there besides a federally insured savings account. savings bonds are a terrible investment. They are very low interest and barely keep pace with inflation. If you want a good long term investment, with fairly low risk, look at a low-fee index fund. The US Government should get out of the Savings Bonds business. Having savings bonds is a very poor way of making money. You can find better options. |
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The answer to your question depends on a couple of factors, such as your age now and how much risk your willing to accept. In turn one would need to know where you want to be "financially"... it's lending money to government or corporate, low risk. bonds to local government is call municipal bonds, all interest you earn are tax free, both federal and state, but you have to pay a fe... Very safe, They pay low interest, but the interest usually isnot subject to fed income tax. because of that, they are attractive to those in high tax brackets. ...With bonds, there is an inverse relationship between the price and the interest rate. When the price is low, the interest rate is high and vice versa. So, during times of higher interest rates, yo... Abandoning bonds completely in rising rate environments is not a good idea with respect to long term asset allocation. Simply shorten the duration on your bond holdings. The shorter the duration of... Is it possible? Sure. Can any individual investor purchase them, nope. You would need to be an Accredited Investor if you wanted to purchase them. They usually carry a face value of $25,000 or ... You really have to develop your *own* system. There are a lot of reasons for that: - If a purchaseble system is worth its money, why aren't the inventors using it themselves? - No two invest... dont ignore your own investments to do this for your neice but if you dont want to risk money at all then a CD is probably for you, you should easily get 5%, which would start the interest at 25... |
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