Comments on: New I bond fixed rate 0.70%; EE 1.30% http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/ Wed, 17 Mar 2010 22:05:44 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32727 Thu, 11 Dec 2008 16:41:10 +0000 http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32727 Greg - Savings Bonds and Treasury Notes are both issued by the US Treasury. In terms of return of money they are equivalent in a legal sense. From the point of view of a politician, consider that Savings Bonds are primarily held by US citizens and Treasury Notes are primarily held by foreign central banks. If you had to default on one or the other, which would you choose? Hint - which holder can vote you out of office? Tom Adams Greg - Savings Bonds and Treasury Notes are both issued by the US Treasury. In terms of return of money they are equivalent in a legal sense.

From the point of view of a politician, consider that Savings Bonds are primarily held by US citizens and Treasury Notes are primarily held by foreign central banks. If you had to default on one or the other, which would you choose? Hint - which holder can vote you out of office?

Tom Adams

]]> by: greg http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32659 Wed, 10 Dec 2008 21:31:43 +0000 http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32659 Are saving bond as safe as treasury notes with respect to return of money? Thanks Are saving bond as safe as treasury notes with respect to return of money? Thanks

]]> by: Tom Adams http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32445 Mon, 08 Dec 2008 16:11:26 +0000 http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32445 Hi Ed - the risk here is the rate for the second six months could be zero, <a href="http://www.savings-bond-advisor.com/cpi-inflation-update/" rel="nofollow" rel="nofollow">given the way the CPI is falling</a>. Of course there's good news there, too - the interest penalty would be zero. Tom Adams Hi Ed - the risk here is the rate for the second six months could be zero, given the way the CPI is falling. Of course there's good news there, too - the interest penalty would be zero.

Tom Adams

]]> by: Ed http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32120 Thu, 04 Dec 2008 17:40:46 +0000 http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-32120 The current I-Bond rate seems attractive for a Short-Term (1 year) gamble. If a person purchased $5k (electronic) + $5K (paper) = $10K in December 2008 <b> AND </b> did the same in January 2009 .... all at 5.64 % .... that's 6 months return on the total $20K. OK, what about the final 6 months ? The new May 2009 rate could be as low as roughly 3 % and that still makes the I-bonds more sensible that a 1 year bank CD at 4 %. Sure, you lose the last 3 months of interest, then again the earnings are state income tax free. Question: Eventhough Savings Bonds are for Long Term investing, .... how about a Short Term "Grab" ? The current I-Bond rate seems attractive for a Short-Term (1 year) gamble.

If a person purchased $5k (electronic) + $5K (paper) = $10K in December 2008 AND did the same in January 2009 …. all at 5.64 % …. that's 6 months return on the total $20K.

OK, what about the final 6 months ?

The new May 2009 rate could be as low as roughly 3 % and that still makes the I-bonds more sensible that a 1 year bank CD at 4 %.
Sure, you lose the last 3 months of interest, then again the earnings are state income tax free.

Question: Eventhough Savings Bonds are for Long Term investing, …. how about a Short Term "Grab" ?

]]> by: Tom Adams http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-31137 Wed, 19 Nov 2008 15:51:16 +0000 http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-31137 Hi Jack - Your wife will need a TD account in her name and Social Security Number for the electronic bonds that go in her name with you as POD. The owner has to be the same on all the bonds in a TD account (disregarding bonds in the "gift box"), but not anything else about the registrations has to be the same. You can hold multiple registration types in one TD account with multiple second names (or no second name). Tom Adams Hi Jack - Your wife will need a TD account in her name and Social Security Number for the electronic bonds that go in her name with you as POD.

The owner has to be the same on all the bonds in a TD account (disregarding bonds in the "gift box"), but not anything else about the registrations has to be the same. You can hold multiple registration types in one TD account with multiple second names (or no second name).

Tom Adams

]]> by: Jack http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-31101 Tue, 18 Nov 2008 19:39:52 +0000 http://www.savings-bond-advisor.com/new-i-bond-fixed-rate-070-ee-130/#comment-31101 Tom, I own both paper bonds, as well as electronic bonds in a Treasury Direct account. All bonds are titled jointly with my wife. Last year I bought $5000.00 worth of electronic bonds and $5000.00 worth of paper bonds. If I have the money available this year, I was considering buying $5,000.00 in paper bonds and $5,000.00 electronic in each of our names individually, with a POD to the other (for a grand total of $20,000). I know it should not be a big deal ordering the paper bonds individually, but I am wondering if I will have to open an other Treasury Direct account(s) because I would be changing the titling from Joint to individual? Thanks for your assistance. Jack Tom,

I own both paper bonds, as well as electronic bonds in a Treasury Direct account. All bonds are titled jointly with my wife. Last year I bought $5000.00 worth of electronic bonds and $5000.00 worth of paper bonds. If I have the money available this year, I was considering buying $5,000.00 in paper bonds and $5,000.00 electronic in each of our names individually, with a POD to the other (for a grand total of $20,000). I know it should not be a big deal ordering the paper bonds individually, but I am wondering if I will have to open an other Treasury Direct account(s) because I would be changing the titling from Joint to individual?

Thanks for your assistance.

Jack

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