Comments on: TIPS rates plunge http://www.savings-bond-advisor.com/tips-rate-plunges/ Wed, 20 Aug 2008 11:46:14 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14385 Fri, 14 Dec 2007 15:32:04 +0000 http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14385 Hi Ernie - yes, my book, Savings Bond Advisor, has the details on the differences between TIPS and I bonds and also has a 100+ year overview of the history of inflation. Tom Adams Hi Ernie - yes, my book, Savings Bond Advisor, has the details on the differences between TIPS and I bonds and also has a 100+ year overview of the history of inflation.

Tom Adams

]]> by: Ernie http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14383 Thu, 13 Dec 2007 20:23:01 +0000 http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14383 Tom, do you have a primer on TIPS vs I-Bonds somewhere? Tom, do you have a primer on TIPS vs I-Bonds somewhere?

]]> by: Tom Adams http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14380 Thu, 13 Dec 2007 15:00:35 +0000 http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14380 Hi Mike - yesterday's 10-year TIPS rate was 1.78%, just 58 points above the I bond's 1.20%. So compared to TIPS, I bonds are a better deal than usual right now. Because of the new limits on I bond purchases after Jan 1, my thinking is that you should put the money you have now in I bonds. The Federal Reserve Board seems to have lost its focus on controlling inflation and instead seems mostly concerned about preventing a stock market crash now and worrying about inflation later. Tom Adams Hi Mike - yesterday's 10-year TIPS rate was 1.78%, just 58 points above the I bond's 1.20%. So compared to TIPS, I bonds are a better deal than usual right now.

Because of the new limits on I bond purchases after Jan 1, my thinking is that you should put the money you have now in I bonds.

The Federal Reserve Board seems to have lost its focus on controlling inflation and instead seems mostly concerned about preventing a stock market crash now and worrying about inflation later.

Tom Adams

]]> by: Mike http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14379 Thu, 13 Dec 2007 14:47:12 +0000 http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14379 Tom, Do you think that the falling TIP rates make I-bonds more attractive? I am looking at Treasury bills, MM, and savings bonds to park my money for a year. The new PPI (12/13/07) showed very large rate of increase in inflation. The entire bond marker has gone mad as bond rates are continue to fall in spite of rising inflation. I thought I would never say it before, but the existing fixed rate of I-BONDS is getting much more attractive. There is a chance that we are in for a surprised Fixed rate reduction to .8% Should I buy some more I-bonds before end of this year, or do you think that the 28-day bills are still better deal in terms of ROI? Tom,
Do you think that the falling TIP rates make I-bonds more attractive? I am looking at Treasury bills, MM, and savings bonds to park my money for a year.

The new PPI (12/13/07) showed very large rate of increase in inflation. The entire bond marker has gone mad as bond rates are continue to fall in spite of rising inflation. I thought I would never say it before, but the existing fixed rate of I-BONDS is getting much more attractive.

There is a chance that we are in for a surprised Fixed rate reduction to .8%

Should I buy some more I-bonds before end of this year, or do you think that the 28-day bills are still better deal in terms of ROI?

]]> by: Tom Adams http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14114 Thu, 29 Nov 2007 16:08:02 +0000 http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14114 Hi Charles - the 3 month penalty applies to the total I bond interest rate, not just the fixed base-rate portion. Because I bond rates are relatively volatile, it's possible to time redemptions to minimize the penalty. This was an issue a year ago - <a href="http://www.savings-bond-advisor.com/how-when-and-why-to-rollover-i-bonds/" rel="nofollow">you can read the details here</a>. Tom Adams Hi Charles - the 3 month penalty applies to the total I bond interest rate, not just the fixed base-rate portion. Because I bond rates are relatively volatile, it's possible to time redemptions to minimize the penalty. This was an issue a year ago - you can read the details here.

Tom Adams

]]> by: Charles http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14102 Wed, 28 Nov 2007 23:37:37 +0000 http://www.savings-bond-advisor.com/tips-rate-plunges/#comment-14102 If you cash an I Bond before 5 years, you lose 3 months interest, that doesn't apply to the inflation adjustment correct? In other words @ 1.2% you would lose .30% or 10k in I bonds would only lose $30 interest? If you cash an I Bond before 5 years, you lose 3 months interest, that doesn't apply to the inflation adjustment correct?

In other words @ 1.2% you would lose .30% or 10k in I bonds would only lose $30 interest?

]]>