In my previous post, I described what an I Bond is. Here I will offer a few examples of how I Bonds might make sense in an investment portfolio. Recall that I Bonds are a sort of inflation-protected savings account. They earn interest every year equal to inflation plus a (currently small) fixed rate. The [Learn more…]
Bonds
I Bonds: What they are and how they might fit into your portfolio
I Bonds are a kind of inflation-protected savings account. In this article, I’ll describe their general characteristics and some of their limitations. In a follow up article, I’ll describe when I Bonds can make sense as an investment. Series I Savings Bonds: Protection against inflation Series I Savings Bonds are inflation-protected U.S. Savings Bonds. Also [Learn more…]
Record low interest rates…Should you still hold bonds?
There has been a lot of talk in the press recently about bonds (just two recent examples – one in the Wall Street Journal and one in the Boston Globe). Most if not all of the articles make the following argument: Interest rates are at historic lows. Therefore, interest rates must Rise; Rise soon; Rise [Learn more…]