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Bonds/which is better to purchase
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Question
I have 2 relatives graduating high school this year.I want to purchase either an I-Bond or EE-Bond for them.Which is the better way to go?
I have always preferred the EE bond for the higher rate (over time). The I bond would do better if inflation picked up, but right now inflation is relatively low (other than gasoline).
Please realize of course that this is only my opinion of the current economy. There will be a time when inflation starts to pick up again.
The current stated yield is higher for the I bond.
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Doug Ingram
Expertise
Fixed income portfolio allocation and strategies for institutional investors. Having designed multi-scenario risk quantification and cash flow projection models for nearly 25 years, Strategic Technical Initiatives can answer your regulatory, SFAS 115 allocation, securities selection, and other questions dealing with yield curve placement and portfolio mix strategies. I write the Bond Market Review on behalf of Commerce Street Capital Management.
Experience
Trading and designing portfolio strategies since 1980.
Education/Credentials
Physics and Differential Mathematics
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