Better than CD/Savings account rates with US Savings Bonds

Quote from travfar : As I said, from the horse's mouth. The horse in this case being Oakmark. http://www.oakmark.com/funds/family/ff_p.asp Of course, I'm making the assumption that the people running a fund know as much about it as anyone else. If that's not true then Houston, we have a problem.

You're listing the 1/3/5 year return, I see. As you can see, I posted each year, and many of them are well above 8%.

This thread's not about risky stocks or Vegas gambling, it's about good low-risk investments - I offered one, you didn't.

Quote from ionizer : this is the part where i wait for someone to counter this thinking. $10k in 1.76% interest or $10k gambling in the stock market? history would show us that the stock market is a better bet over the long run but past performance is no indication of future performance. this is the part where i wait for someone to counter this thinking.

Not always. Check 5-yr SPY performance from 2004.

Quote from vickh : oakbx load/ fee %?

0.77%.

Quote from sniperruff : Not always. Check 5-yr SPY performance from 2004.

I wouldn't bet heavily on the S&P unless you think the Fed will continue dumping $1 trillion/year of funny money into the market. (which they might)

Quote from VarmintCong : This thread's not about risky stocks or Vegas gambling, it's about good low-risk investments - I offered one, you didn't.

Yeah, like NLY has been real risky. And it has triple the 5 year yield as the one you offered. I guess some people are more comfortable with keeping their money under their mattress. Nothing wrong with that.

Quote from travfar : Yeah, like NLY has been real risky. And it has triple the 5 year yield as the one you offered. I guess some people are more comfortable with keeping their money under their mattress. Nothing wrong with that.

No one cares about NLY has done in the past, only what it's going to do in the future. With interest rates so low and the Fed buying so many mortgage securities, I would not feel comfortable buying NLY and counting on that yield to stay at 12%. And if the yield tanks, the stock will also tank, giving you a double hit. It's way riskier than OAKBX, for slightly more gain.

Quote from miocidroydiaz : Finally, these bonds are exempt from state and local income taxes. Link here: https://www.treasurydirect.gov/in...s_ifaq.htm

Do you have a link that supports this? The link for the I bond says that it is indeed taxed.

Quote from VarmintCong : No one cares about NLY has done in the past, only what it's going to do in the future. With interest rates so low and the Fed buying so many mortgage securities, I would not feel comfortable buying NLY and counting on that yield to stay at 12%. And if the yield tanks, the stock will also tank, giving you a double hit. It's way riskier than OAKBX, for slightly more gain.

You mean past performance doesn't guarantee future success? That's exactly what Oakmark says about it's own funds.

"Past performance is no guarantee of future results."

They say it quite boldly on their website about their funds.

I guess we have a different opinion about "slightly more gain". I don't consider 300% to be "slightly more". I consider that to be massively more.

Quote from almightys : Really? how does this "friend" have any money left after stockpiling and hoarding ammunition and firearms this last month?

Hey, how did you know he was also stockpiling ammunitions and firearms?!

Quote from JAB : Can I be your friend... That way I can say that a friend of a friend of a friend of mine is hording cash and and thinks he's not losing any interest...

Well, if you invested in most mutual funds 12 years ago or so you haven't gained anything either.

Again, his point is not necessarily to gain......it is to maintain what you have WITHOUT the IRS or anyone being able to trace what you have.

Quote from sniperruff : Not always. Check 5-yr SPY performance from 2004.

not sure what planet you live on, but 5 yr is not "long run"

long run = 20+ yrs

Quote from ionizer : factoring inflation into place, hiding money into ur mattress means he is losing money every day. When he one day pulls out his $10k from his mattress he'll be able to only afford half of what he could have bought with it 10 yrs prior.

Well, if you put your investments into places where the IRS can trace it...if you, your spouse, or children ever have any catastrophic illness, ever have to have constant nursing care, or have to be placed in a nursing home, your entire assets can be taken away from you until you are nearly penny-less.
This has happened to a few people that I know.

Federal Reserve officials are thinking about ending QE3 around the end of 2013. What does this have to do with I bonds? QE3 is the Feds buying long term bonds, thus lowering the interest for everyone. When it ends, interest rates should go up, because a lot of people will be selling long term bonds. Interest corresponds to inflation. So if interest goes up, inflation is up and your I bonds rate will go up as well.
Also there a lots of stocks and bonds being thrown around. If you buy any of these without doing your own RESEARCH, then you deserve to lose your investment.

Quote from travfar : You mean past performance doesn't guarantee future success? That's exactly what Oakmark says about it's own funds. "Past performance is no guarantee of future results." They say it quite boldly on their website about their funds. I guess we have a different opinion about "slightly more gain". I don't consider 300% to be "slightly more". I consider that to be massively more.

Are you comparing a single risky stock to Oakmark's broad portfolio of 60% bonds and 40% in thirty or so stocks?

OAKBX has returned 10% a year for 17 years, are you saying NLY has returned 40% a year? Seems unlikely since it's 40% off it's peak price.

Quote from VarmintCong : Are you comparing a single risky stock to Oakmark's broad portfolio of 60% bonds and 40% in thirty or so stocks? OAKBX has returned 10% a year for 17 years, are you saying NLY has returned 40% a year? Seems unlikely since it's 40% off it's peak price.

Risky? When has NLY ever failed to pay a yield? You have shown that Oakmark does.

As you said, "No one cares" what OAKBX has done in the past, only what it's going to do in the future. In the present NLY is paying out 12.80%. What's OAKBX paying? Answer, "Yield*: 1.26%" I guess that's only "slightly" less in your eyes.