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Question
Hi,
Are IBonds a good investment and if not what other bonds are better?
Also, where can one buy them?
Thanks
RL,
I-Bonds add inflation protection to an all-bond portfolio. At this point in time, I would suggest that they may be superior to other types of bonds. A study of macro-economics indicates that when interest rates are as low as they are now, inflation usually results. As inflation kicks in, the fed will want to raise interest rates, and when interest rates go up, existing bond values go down. Since inflation will increase your yield in these bonds, they are probably the wisest government bond addition to your portfolio.
They offer a combination of a fixed rate in addition to the inflation component, but the fixed rate is currently set at 0, since rates are so low.
You can read more about them here, where you can buy them directly from the government:
http://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
You can also buy them from your broker or bank as well.
Good luck, RL,
Aaron Hall
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Answers by Expert:
Aaron Hall
Expertise
I can answer questions regarding asset allocation, investment selection, investment managers, hedge funds, investment expenses, most common tax shelters, retirement accounts.
Experience
I have worked with MetLife Financial Services, Ameriprise Financial, and Merrill Lynch. I also manage millions in client assets, though I am not actively searching for more clients, and I do not accept commisions for financial products.
Organizations
Financial Management Association
Education/Credentials
I am in the process of attaining my Ph.D. in Finance with a support area of econometrics, and have a bachelors degree in Finance with a concentration in Real Estate from Florida State University.
Education
Florida State University, Tallahassee, FL
Ph.D. in Finance, pending
Florida State University, Tallahassee, FL
B.S. in Real Estate and Political Science, Spring 2002
Related Industry Experience
Merrill Lynch, Financial Advisor with Merrill Lynch, with $3,000,000 in assets on the books, $2,000,000 of which was fee based, where clients followed specific portfolio recommendations based on optimized portfolios tailored to risk tolerance and goals, 2006-2007
Independent, Financial Planner, continuing to work with select clients, 2005-2006
American Express Financial Advisors (Now Ameriprise Financial), Financial Advisor, Selling Financial Planning Relationships, 2004-2005
MetLife, Financial Services Representative, Selling Life Insurance and Annuities, 2003
Guernsey and Associates, Boutique Financial Planning Firm Internship, Selling Life Insurance and Fee-based Financial Plans, Fall 2002
Honors and Awards
College of Business Ph.D. Fellowship/Assistantship
College Teaching Fellowship Award
Full Undergraduate Academic Scholarship at FSU
National Merit Scholar Award
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