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Bonds/I bonds vs. ee bonds
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Question
Which is better I bonds or EE?
Also I currently get I bonds on payroll allocation once every 2 pay checks. I was wondering if I should half the denomination so that I get ONE bond EVERY paycheck. The reasoning is that I wonder if I currently lose interest because my half allocation sits idly while it builds up to the cost of the full bond.
http://savingsbonds.com/bond_basics/ibond1.cfm
http://savingsbonds.com/bond_basics/eebond1.cfm
The I bond has a return tied to inflation. The more inflation, the better return for the I bond. Less inflation, the EE bond probably does better. No inflation or deflation (falling prices) and the EE bond does WAY better.
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| Rating(1-10) | Knowledgeability = 10 | Clarity of Response = 10 | Politeness = 10 |
| Comment | Doug was quick in answering my question and he had some soild advice | ||
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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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