Comments on: Inflation update

by: Harvey

Mon, 28 Apr 2008 20:48:17 +0000

Buying one more tomorrow before the first . With inflation taking off my wife has decided that I-bonds are not a bad deal after all !

by: Tom Adams

Mon, 28 Apr 2008 14:22:55 +0000

Nik - you need to check your math. The 3.6% fixed rate I bonds will only pay 8.52% when they get their next inflation adjustment. For the formula, see the comments on this post.

Tom Adams

by: Nik

Fri, 25 Apr 2008 20:14:19 +0000

Am I correct that with the current inflation rate of 4.83%, older I-bonds with a 3.6% fixed rate will be earning a composite rate of 10.71% beginning May 1st? If so, why didn’t I buy a lot more?

by: Harvey

Wed, 23 Apr 2008 13:17:40 +0000

rates are improving ,at least the interest side,bought my first one last night since last April

by: Aramintha Grant

Mon, 21 Apr 2008 15:27:34 +0000

I want to thank you for writing your book and providing the update on the changing rates for I bonds. I been telling my friends about how to protect their principal and fight inflation with the purchase of I bonds. Thanks for sending me your newsletter and keep up the good work.

by: Tom Adams

Fri, 02 Nov 2007 14:22:58 +0000

Hi Patrick - I'm a journalist, not an economist, but from my view in the cheap seats it appears inflation is going to be a real problem in the upcoming months, which means the inflation component of I bond rates will go up. Whether the fixed portion goes up in anyone's guess.

People who buy fire insurance don't expect a fire or want a fire - but they want to be covered in case there's a fire.

You should think of I bonds the same way. They are inflation insurance. But you shouldn't want inflation, because high rates of inflation can be very painful. However, if inflation occurs, I bonds protect you to the extent that the inflation is reflected in the CPI.

Tom Adams