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Guest






Posted: Sun Nov 13, 2005 5:00 pm    Post subject: iBonds Reply with quote

I've done some research into ibonds but am still somewhat confused.
Right now the component due to inflation, combined with the low 1%
fixed rate, gives the ibonds an attractive total rate. My concern is
the 1% fixed rate and I am not clear how this will impact the bond's
return over the next few years.

Perhaps someone who has followed these bonds a little more in the
recent years could tell me, for instance, how the total return on the
bond might change. For instance, what has been the smallest inflation
component in recent years? Does the 1% fixed rate mean that this is not
necessarily a good time to buy ibonds?

Thanks.

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Bucky
Guest





Posted: Mon Nov 14, 2005 9:01 am    Post subject: Re: iBonds Reply with quote

Some people look at the 6.73% composite and are floored. But the 1%
fixed rate is at its lowest ever, so it's not very good for long term.
Put it this way, if you had I-bonds from May 2000, you'd be collecting
roughly 9.3% this period! I think it's fine to get into some I-bonds
now, just know the fixed rate is at the lowest it has ever been, so
you'll probably be redeeming and buying later.

Here's the history of rates:
http://www.publicdebt.treas.gov/sav/sbirate2.htm
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wizz4ve



Joined: 17 Mar 2006
Posts: 1

Posted: Fri Mar 17, 2006 5:04 pm    Post subject: I Bonds Reply with quote

How do you buy I Bonds Directly from the government.

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