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I-bonds vs. the stock market

October 12th, 2008 at 07:48 pm

Thought this might be a good time to post a link to this chart, being that the stock market has been so choppy lately. Note that the chart is updated to October 1st--and the I-bonds were already ahead before the worst of the stock market's descent. Might be good for anybody else who's feeling rather chicken right now.

Text is http://www.savings-bond-advisor.com/i-bonds-versus-the-stock-market/ and Link is
http://www.savings-bond-advisor.com/i-bonds-versus-the-stock...

I've been thinking about these for a long time as part of our Emergency Fund, but never seem to have enough money to spare. They can't be bought in IRA's, where the bulk of our already-accumulated money is, so I'd have to find new money.

I know you can buy them in small amounts, but I guess I'm embarrassed to put a bank through the paperwork for a $50 bond. (I'd rather do the paper ones, as it would be a help to DH in an emergency.) But maybe I will start, once I know the new rate as of November 1. They are supposed to announce the new rate this week.

Posted in Investing, Emergency Fund | 3 Comments »

3 Responses to “I-bonds vs. the stock market”

  1. baselle Says:
    October 13th, 2008 at 04:22 am 1223871730
    1223871730

    They generally announce the new rate exactly on Nov 1, never before. The inflation multiplier, based on the CPI-U rate is this week, but the fixed part of the rate isn't announced until the 1st. These last 6 months of bonds are crappy because the fixed rate is 0.0%. Hopefully the fixed rate will be higher than that.

  2. StressLess Says:
    October 13th, 2008 at 01:32 pm 1223904730
    1223904730

    Thanks, Baselle. I've seen both dates mentioned and never caught on that they announced the two rates at different times.

  3. James Says:
    October 13th, 2008 at 01:56 pm 1223906162
    1223906162

    Thanks, This is very interesting. It's hard to tell sometimes. I do think that the stock market will bounce back soon.

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