Quote:
Originally Posted by flatbutt
There was a time when I was very much in favor of savings bonds. Given how long the maturity takes you may be better off making other investments unless you buy A LOT of them.
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I don't know...I have been advising my friends to buy I Series Bonds as part of a diversified portfolio. Inflation protected and you can never lose your original investment. Currently paying over 7%.
No state or local taxes when you cash in and no Federal taxes when you spend on education for spouse or dependents that year. To top that, you can do it all online. in just a few minutes. Right from the Treasury site. You can also gift them that way. The downside is that you are limited to $10K per year (up to $5K more from a tax return) and you can't cash it in for a year. If you keep it less than 5 years, there is a small penalty (A small portion of your interest). There is no need to wait for maturity unless you choose.
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