Comments on: Stupid I-Bond Advice http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html Bridging the gap between saving money and investing Wed, 25 Nov 2009 17:45:33 -0800 http://wordpress.org/?v=2.8 hourly 1 By: scfr http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html/comment-page-1#comment-7683 scfr Fri, 20 Oct 2006 01:21:16 +0000 http://www.pfadvice.com/?p=884#comment-7683 Granted the rates aren't terrific, but don't forget that their earnings are exempt from state & local taxes. Gotta look at the big picture. I'm not going to buy them, but there may be someone out there for whom these make sense. Granted the rates aren’t terrific, but don’t forget that their earnings are exempt from state & local taxes. Gotta look at the big picture. I’m not going to buy them, but there may be someone out there for whom these make sense.

]]> By: Brian Turner http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html/comment-page-1#comment-7609 Brian Turner Tue, 17 Oct 2006 20:46:56 +0000 http://www.pfadvice.com/?p=884#comment-7609 Agreed - people really need to watch their savings options, and despite the recent issues in Asia, those markets are running bullish. Here in the UK they're talking about the FT 100 potentially reaching 7000 by the end of the year. I'd forget bonds and just push on equities. Agreed – people really need to watch their savings options, and despite the recent issues in Asia, those markets are running bullish. Here in the UK they’re talking about the FT 100 potentially reaching 7000 by the end of the year. I’d forget bonds and just push on equities.

]]> By: pfadvice http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html/comment-page-1#comment-7596 pfadvice Tue, 17 Oct 2006 00:18:36 +0000 http://www.pfadvice.com/?p=884#comment-7596 <i><b>Playing the devil’s advocate to the blog author (great blog by the way), IBonds can be tax deferred until you take them out. This tax advantage is similar to a non-deductible IRA which makes the assumed 4.6% rate a better deal depending on your tax bracket. Also, if you use them for higher education, they can be tax free which makes them even a better deal. </i></b> If it was all 4.6% I might be able to see the devil advocates argument (although I could argue there are still a lot of other ways to get a much better rate with the same, if not less, risk), but since he is encouraging you to lock in a rate of 2.41%, it makes little even when those considerations are taken into account. Just a bad piece of advice that I hope readers of that paper don't follow... Playing the devil’s advocate to the blog author (great blog by the way), IBonds can be tax deferred until you take them out. This tax advantage is similar to a non-deductible IRA which makes the assumed 4.6% rate a better deal depending on your tax bracket.
Also, if you use them for higher education, they can be tax free which makes them even a better deal.

If it was all 4.6% I might be able to see the devil advocates argument (although I could argue there are still a lot of other ways to get a much better rate with the same, if not less, risk), but since he is encouraging you to lock in a rate of 2.41%, it makes little even when those considerations are taken into account. Just a bad piece of advice that I hope readers of that paper don’t follow…

]]> By: Hong http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html/comment-page-1#comment-7595 Hong Mon, 16 Oct 2006 23:13:29 +0000 http://www.pfadvice.com/?p=884#comment-7595 Playing the devil's advocate to the blog author (great blog by the way), IBonds can be tax deferred until you take them out. This tax advantage is similar to a non-deductible IRA which makes the assumed 4.6% rate a better deal depending on your tax bracket. Also, if you use them for higher education, they can be tax free which makes them even a better deal. Playing the devil’s advocate to the blog author (great blog by the way), IBonds can be tax deferred until you take them out. This tax advantage is similar to a non-deductible IRA which makes the assumed 4.6% rate a better deal depending on your tax bracket.
Also, if you use them for higher education, they can be tax free which makes them even a better deal.

]]> By: Steve Torso http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html/comment-page-1#comment-7593 Steve Torso Mon, 16 Oct 2006 22:48:14 +0000 http://www.pfadvice.com/?p=884#comment-7593 You can almost get better returns from leaving your money in the bank. I wonder if this person has ever invested in stocks. Your right... it is ridiculous advice. You can almost get better returns from leaving your money in the bank.

I wonder if this person has ever invested in stocks. Your right… it is ridiculous advice.

]]> By: LOOPY http://www.savingadvice.com/blog/2006/10/16/10884_stupid-i-bond-advice.html/comment-page-1#comment-7590 LOOPY Mon, 16 Oct 2006 18:24:43 +0000 http://www.pfadvice.com/?p=884#comment-7590 It is awful advice. This self-proclaimed 'expert' probably is not an investor. HSBC / other banks also give better liquidity than those bonds. Many people think internet banks are scams. Most are actually a very safe way to keep your money growing above the inflation rate. It is awful advice. This self-proclaimed ‘expert’ probably is not an investor.

HSBC / other banks also give better liquidity than those bonds.

Many people think internet banks are scams. Most are actually a very safe way to keep your money growing above the inflation rate.

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