Seeking Yield And Safety? The Best Choice Is U.S. Savings Bonds

Summary

  • EE Bonds will earn a remarkable 3.5% annually if held for 20 years, tax deferred and free of state income taxes.
  • I Bonds will match U.S. inflation with a flexible maturity date and solid protection against deflation.
  • Both of these savings bonds are likely to outperform other safe investments like U.S. Treasurys and bank CDs.

These are dire times for investors looking for both safety and a return that can surpass or at least approach U.S. inflation. If you are retired, it’s a double whammy: You want to set aside cash for future needs, but you will earn only pennies on many thousands of dollars.

Is there a way — in September 2020 — to combine reasonable yield with total safety? The answer is, yes, there is.

Read my full analysis on SeekingAlpha.com

 

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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 )

Google photo

You are commenting using your Google 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 )

Connecting to %s