What type of savings bonds are right for me?

May 1st, 2009 | by bonds |
dawn_20062006 asked:


I am a single mom of one and would like to start buying monthly saving’s bonds now to have for my daughter’s college and for part of my retirement. I would like to buy $50 bonds weekly and just have them for the next 22 years when I can retire. Is this worth it and what is the better series to get, EE or I? I do not plan on cashing these in atleast for 20 years. Thanks

LENARD
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  1. 5 Responses to “What type of savings bonds are right for me?”

  2. By Freeway Ricky Ross on May 4, 2009 | Reply

    MARIO

    Im down for saving Bonds.

  3. By Amanda B on May 7, 2009 | Reply

    RICKY

    wat is rite 4 u den eh??

  4. By Flower on May 8, 2009 | Reply

    RAMON

    Savings bonds are kind of a waste (in that you can get a much better return elsewhere). Check out high interest savings accounts (ING, Emigrant Direct, etc.) or look into opening a CD if you have some significant savings that you would like to lock into a high-interest rate.

    Another idea (this won’t help with your retirement, but is great for the college thing)… look into a state-sponsored education savings plan. In some states, they guarantee the current price of tuition so you don’t have to worry about rate hikes. Benefits vary from state to state, so investigate your options to make a more educated decision.

  5. By lmcginnis14 on May 12, 2009 | Reply

    ZACK

    Please do me a favor and DO NOT invest in the Savings Bonds. They are worthless, and will not even keep up with inflation. In addition, they will not even reach full face value in 20 years. For your specific needs, there are much better investment options out there for you. For your daughters college you need to invest in a 529 plan. You can pick investments in a 529 plan to be as aggressive or conservative as you like. Even on the most conservative investment, you’re going to earn more money then a savings bond. In addition, the earnings in a 529 plan grow tax free, so as long as you use the money for college, you will never owe taxes on the money it earns. With most plans you can contribute with at least $15 per month, and you can get a deduction on your state’s taxes for the amount of your contributions, which lowers your state income tax liability. For part of your retirement needs you need to open a Roth IRA. Like a 529 plan, the Roth grows tax free. You will never pay taxes on the earnings as long as you keep the money in there until age 59 1/2. With some Roths you can contribute at least $25 per month, and you can pick investments as aggressive or conservative as you like. If you listen to this advice you will be sitting much better 20 years from now, then you would with savings bonds.

  6. By mister ed on May 14, 2009 | Reply

    HARVEY

    “i” bonds right now are paying the best interest!!!!

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