I Bonds or iBonds: Nov 2006 Update

Get Current Rates and Ask Questions in our Attached Discussion Forum

© Kirk Lindstrom

I-Bonds are a 100% safe way to defer taxes while getting inflation protected return for up to 30 years. Newly issued I bonds are currently paying 4.52% (until May1, '07)

I Bond, iBonds, i-Bonds or Series I bonds [11/03/06]

Ask questions, get current rates and read more about "I Bonds" in our I Bond Discussion Forum.

WHAT ARE I BONDS?

I Bonds are also known as "Series I Savings Bonds."

I Bonds are 100% guaranteed by the U.S. Federal Government. Their key feature is inflation protection, hence the "I" in "I Bond." The interest paid on has two components. The first is the fixed rate that is set once every six months and stays with the bonds purchased during that six-month window until the bond is cashed. The second component is pegged to the Consumer Price Index (CPI) and is adjusted on May 1st and November 1st every year. Your total interest is the sum of these two components. If inflation goes up, then your rate of return goes up to keep pace with inflation. Likewise, if inflation goes to zero, then you are left with the base rate which is currently 1.0%.

DISCLAIMER: I have been recommending I Bonds (or ibonds) in my newsletter portfolio since August of 2003. I also have my own money invested in I Bonds. Back in 2003, they paid a much better rate of return than money market funds so they were a great investment vehicle to own when the Federal Reserve was raising interest rates.

With my disclaimer out of the way....

WHY I LIKE I BONDS:

LINKS FOR MORE INFORMATION

KIRK'S INVESTMENT NEWSLETTER and Notification of new article here

My investment newsletter offers quite a bit of useful information including two recommended core portfolios composed of index funds or ETFs, tables, discussion of interest rates, The Fed Model, etc. that many say are worth the price of the subscription before accounting for the fantastic returns in my explore portfolio. I

DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice.

You can also sign up for RSS Feeds below:

I Bond Discussion Forum: Please feel free to post questions in the Suite101 forum about I Bonds.


The copyright of the article I Bonds or iBonds: Nov 2006 Update in Investment is owned by Kirk Lindstrom. Permission to republish I Bonds or iBonds: Nov 2006 Update must be granted by the author in writing.




Post this Article to facebook Add this Article to del.icio.us! Digg this Article furl this Article Add this Article to Reddit Add this Article to Technorati Add this Article to Newsvine Add this Article to Windows Live Add this Article to Yahoo Add this Article to StumbleUpon Add this Article to BlinkLists Add this Article to Spurl Add this Article to Google Add this Article to Ask Add this Article to Squidoo