Stocks have their place as an investment but these bonds do as well. Investing ONLY in stocks is a fool's game. You have to keep some cash somewhere interest bearing and this is better than savings, CDs, or money market.
The penalty for early withdrawal doesn't look too bad either. Might have to consider this.
Did anyone factor inflation? The current inflation rate would make any interest gained to zero and close to loss. This is not a good deal at all! You can find much better investments in the stock market, and if your not good at buying stocks on your own then you should go to a broker and find a nice stable mutual fund that pays good dividends. The key to any investment is to beat the inflation rate and make a profit. This is just pointless.
The i-bond in this thread is an inflation-protected bond - so it has a base rate (currently 0%) plus whatever the inflation is at the time - so it's designed to keep up with inflation, that's all.
Unfortunately, real inflation is much higher than the government's phony inflation number, so yes, you're likely losing money on this.
But you're totally wrong that the point of investments is to beat the inflation rate - a portion of your investments should be low risk - S&P500, emerging market bonds, dividend stocks, all of these have considerable risk, and are not a good place to put your short-term cash.
I have taken a look at the charts over the last few years...taking into account dividend increases, and stock price increases ( except for 2008 )...your WAY ahead buying dividend stocks.
Red came up four times in a row, should I bet everything on red?
Last edited by VarmintCong; 01-03-2013 at 08:15 AM..
Reason: Automerged Doublepost
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