Investors: EE Savings Bonds?

Chromaflage · 05-16-2005, 04:01 PM

I'm wondering what's the point of investing in series EE bonds, when the yield is so low over a long period of time. Might someone who is investment savvy explain this to me?

Thanks,

CrF

Jim · 05-16-2005, 04:41 PM

Diversity is the only reason I could think of. Don't personally go there myself but at 45 I am still more interested in investments with more risk.

Jim

BuKuBass · 05-16-2005, 05:13 PM

Since the government doesn't invest money, the only source for the interest on savings bonds is thru taxes, fees, etc. Want higher taxes and fees? Then buy more bonds.
Or is my reasoning unsound?

SOL · 05-16-2005, 06:44 PM

EE bonds earn interest for up to 30 years, and you can cash out anytime after 12 months also are good for adding diversification to your portfolio. EE bonds are also exempt from state and local tax. However if you use them as an educational investment for future children (I think your child has to be a beneficiary on the bond) you can avoid Federal taxes as well...

duckcall · 05-17-2005, 06:15 AM

EE bonds are an investment in America. Probably the safest investment available. Long term investment, tax advantages and an investment in America's future.

wootersen · 05-17-2005, 07:33 AM

I think you should give our very own resident ifish financial advisor a call.

Snug 2 Link

Andrew works for Willamette Financial Services and I'm sure he'd be happy to give an ifisher some free advice regarding any kind of investing.

Silver Hilton · 05-17-2005, 11:17 AM

Personally, I don't think there is a point. The arguments for would be: no risk of loss of principal, highly liquid, a little bit of income. Arguments against are, not much income.

I'd be inclined to look for three or four mutual funds, and spread my money across those. I'd look for an overseas stock fund, a small cap growth fund, a large cap growth and income fund, and a junk bond fund, if it were me.