Thread: I Bond at 7%???
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Old 10-20-2005, 03:43 AM
weiwentg weiwentg is offline
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Default Re: I Bond at 7%???

Quote:
Originally Posted by suedavids
Buying smaller chunks has nothing to do with diversification. Diversification means you have different types of investments or savings. So.... holding a mutual fund and a mix of bonds like the i-bond is diversification.

Now you could look at it as a diversification of rates but this instead is called laddering. You hold bonds or CD's with different issuances and maturity rates.
buying smaller chunks would be like dollar cost averaging.
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