‘I Bond’ Countdown: Buy Before The November 1 Rate Reset, Or Wait?

Summary

  • Buy now? You guarantee a one-year return of 1.56%, which is attractive.
  • Wait until November 1? You could lose the 0.1% fixed rate, but earn more money in one year anyway.
  • Either way, this isn’t going to be a bad investment.

Yes, a 0.10% fixed rate may not seem like a big deal, but realize this: A 10-year TIPS is currently yielding 0.11%. I Bonds with a fixed rate of 0.1% and an attractive variable rate are going to be a hot investment through May 2017. But what if the fixed rate falls to 0.0%?

Read my analysis on SeekingAlpha.com

Advertisements
This entry was posted in Investing in TIPS. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s