Comments on: Invest periodically or all at once? http://www.savings-bond-advisor.com/invest-periodically-or-all-at-once/ Fri, 04 Jul 2008 18:43:46 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/invest-periodically-or-all-at-once/#comment-67 Thu, 02 Feb 2006 03:00:41 +0000 http://www.savings-bond-advisor.com/invest-periodically-or-all-at-once/#comment-67 Dan - thanks for making that point. The one-year redemption rule is an angle I didn't think of when I answered this question. In addition, since I wrote the answer the way EE bonds work has changed and the rates on new ones don't adjust. And with I bonds, the fixed base-rate doesn't adjust. All of these are reasons to invest periodically rather than all at once. Dan - thanks for making that point. The one-year redemption rule is an angle I didn't think of when I answered this question.

In addition, since I wrote the answer the way EE bonds work has changed and the rates on new ones don't adjust.

And with I bonds, the fixed base-rate doesn't adjust.

All of these are reasons to invest periodically rather than all at once.

]]> by: Dan http://www.savings-bond-advisor.com/invest-periodically-or-all-at-once/#comment-66 Wed, 01 Feb 2006 23:19:45 +0000 http://www.savings-bond-advisor.com/invest-periodically-or-all-at-once/#comment-66 Tom, All good points for the above questioner who plans to leave the I-Bonds untouched for 20-30 years. However, if one is planning to count I-Bonds toward their "Emergency Fund", then the one-year redemption rule clearly makes it advantageous to move gradually to I-Bonds from a more liquid source. I'm taking a little bit at the end of each month from my online savings account into Treasury Direct. I don't plan to redeem until it matures, but if I have to I'll know I have access to most of it. So far, it's proven a much better option for that universally suggested 3-6 months of living expenses than savings accounts, short-term CD's, or T-bills! Tom,

All good points for the above questioner who plans to leave the I-Bonds untouched for 20-30 years.

However, if one is planning to count I-Bonds toward their "Emergency Fund", then the one-year redemption rule clearly makes it advantageous to move gradually to I-Bonds from a more liquid source.

I'm taking a little bit at the end of each month from my online savings account into Treasury Direct. I don't plan to redeem until it matures, but if I have to I'll know I have access to most of it. So far, it's proven a much better option for that universally suggested 3-6 months of living expenses than savings accounts, short-term CD's, or T-bills!

]]>