# U.s. Savings Bonds



## NDJollyMon (Aug 22, 2003)

Just curious...

Anyone else buy US SAVINGS BONDS?
If so, which and why?
For several years, I've been buying the I BOND's. (I call it...my EMERGENCY FUND) 
I buy them through payroll deduction, and keep track of them with the BOND WIZARD software available on the site. I get the paper bond mailed to my home.

Anyone have the online version of US BONDS? (no paper copy)


----------



## tdvffjohn (Mar 10, 2005)

My DW works for ITT Defense and they are automatically purchased thru payroll somehow.

John


----------



## tomlholmes (Jul 3, 2007)

I Bury my Money in a coffee can somewhere in the barn.... Now, where did I put that shovel?

Just kidding









First I'd acutally have to HAVE money to bury it!

HEIDI


----------



## N7OQ (Jun 10, 2006)

When I was in the AF I use to buy them I think EE bonds but I used them for a down payment on my first house. I should buy them again but over the years I have put the max into my 401K and now 403B and I don't think bonds are tax deferred. What is the interest rate these days?


----------



## battalionchief3 (Jun 27, 2006)

I dont trust the Govt...Honestly I never thought about it.


----------



## Mgonzo2u (Aug 3, 2004)

battalionschief3,

If your monikor is any indication of your occupation, then I find your last statement extremely hilarious (and yes, hypocritical).

I vowed to never take a job that pays from the pockets of the taxpayer (read: a government job at any level).

Never have yet and never will.

Its a stance I hold to based on principle.


----------



## Camper Man (Jan 12, 2006)

I purchased EE bonds through payroll deduction from about '85 to '95 before I retired from the Air Force (another one of those blasted government jobs). I have just let the bonds ride, gathering tax-deferred interest, ever since. I think they are a good deal and appropriate for a small portion of a well-diversified portfolio (it's starting to sound like the Morningstar forum around here)


----------



## justinsnow0 (Feb 5, 2007)

I'm no wiz when it comes to this but I do know a few things. Bonds are good and safe but really it takes what 20 years to get 50%. Is it worth it? To some yes to some no. I think it's a good balance to a portfolio but not as a large percentage. As for 401K, I personally would not "max" out the allowed, you should however put in what ever the company matches. It's free money. Like the government. It matches dollar for dollar up to 2 or 3 percent then it's 50 cents on the dollar to 6% but they allow you to invest 12%. The max may have changed to unlimited but the 6% thing did not. So I would only invest 6% because after that it's your own money and the Thrift Savings plan is horrible. If your doing 12% I would take 6% and invest it elsewhere. You will get a much better return in the long run. Just my 2 cents and almost all investment professionals will also tell you to only put in what the company matches. There are other tax deffered plans with better returns out there.


----------



## N7OQ (Jun 10, 2006)

mons02035 said:


> I'm no wiz when it comes to this but I do know a few things. Bonds are good and safe but really it takes what 20 years to get 50%. Is it worth it? To some yes to some no. I think it's a good balance to a portfolio but not as a large percentage. As for 401K, I personally would not "max" out the allowed, you should however put in what ever the company matches. It's free money. Like the government. It matches dollar for dollar up to 2 or 3 percent then it's 50 cents on the dollar to 6% but they allow you to invest 12%. The max may have changed to unlimited but the 6% thing did not. So I would only invest 6% because after that it's your own money and the Thrift Savings plan is horrible. If your doing 12% I would take 6% and invest it elsewhere. You will get a much better return in the long run. Just my 2 cents and almost all investment professionals will also tell you to only put in what the company matches. There are other tax deffered plans with better returns out there.


Have you ever had a 401k OR a 403B? there is nothing wrong with investing in a 401K I have dozens of stocks, bonds and safe harbors to choose from. I have been able on many years to exceed 25% return. I would like to know what plans out there can beat and 401K ? My sister is a Certified Finical Planner (CFP) and she says to put the max allowed in my 401K or now the 403B they allow you to put in more money then any other plan like and IRA which I also have. I invest in the same stocks and bonds everyone else used and they are are all no load funds. I trust my investment Professional and she has never led me wrong. Just my 50 cents..I invested my 2 cents into a 401K and now it is 50 cents.


----------



## Nathan (Jan 2, 2007)

I don't personally do much with bonds yet. Of course I have at least 22 more years of work ahead of me... and that is probably wishful thinking.


----------



## Castle Rock Outbackers (Jan 18, 2004)

My parents purchased a $100 EE bonds for my kids on their birthdays for years...until I told her to stop and put the money in the college accounts instead.

Randy


----------



## Paul and Amy (Jul 8, 2007)

Castle Rock Outbackers said:


> My parents purchased a $100 EE bonds for my kids on their birthdays for years...until I told her to stop and put the money in the college accounts instead.
> 
> Randy


*BONDS! *


----------



## justinsnow0 (Feb 5, 2007)

My dad is also a financial advisor and so is a very close friend of mine and even though I love them to death, they steer some clients wrong including me. Does your advisor tell you to invest in annuities? If so, do some homework on your own you will see how bad of an investment they are but yet my dad and friend will tell you to invest. I do invest in 401K, or as the government calls it Thrift Savings and yes the return is good but I would never invest a large percentage of my own money into one. By that I mean if the company is not matching then I'm not investing. Alot of you good mutual funds are not offered through 401K's and also your 401k's are limited in the funds that are offered unlike if you actually seek out funds on your own and invest.

I have also started doing alot of my own research and started with 5 grand of play money into a Scottrade account and doing well.

Not for nothing here and I'm not looking for an argument but the average return on a 401k on a good year is under 10% and on a great year under 20% so I'm guessing that if your making over 25% then it's because of other investment avenues you have chosen which is simply what I'm saying to do with the extra % that your company is not matching.


----------



## N7OQ (Jun 10, 2006)

mons02035 said:


> My dad is also a financial advisor and so is a very close friend of mine and even though I love them to death, they steer some clients wrong including me. Does your advisor tell you to invest in annuities? If so, do some homework on your own you will see how bad of an investment they are but yet my dad and friend will tell you to invest. I do invest in 401K, or as the government calls it Thrift Savings and yes the return is good but I would never invest a large percentage of my own money into one. By that I mean if the company is not matching then I'm not investing. Alot of you good mutual funds are not offered through 401K's and also your 401k's are limited in the funds that are offered unlike if you actually seek out funds on your own and invest.
> 
> I have also started doing alot of my own research and started with 5 grand of play money into a Scottrade account and doing well.
> 
> Not for nothing here and I'm not looking for an argument but the average return on a 401k on a good year is under 10% and on a great year under 20% so I'm guessing that if your making over 25% then it's because of other investment avenues you have chosen which is simply what I'm saying to do with the extra % that your company is not matching.


Well I guess it depends on what you company offers in a 401K, I worked for Kodak and they use T.Rowe Price and I had several pages of different investments. I'm no investment expert, I don't have a clue but my sister tells me where to put my money and tells me when to make changes. When 9-11 hit the market dropped like a rock. I had only about 20k in my 401 and a coworker had almost 60k in his. He panicked and put all his money in a safe harbor but only after the damage was done. My sister said to leave it in the market, she made a few changes and said to ride it out, I was not buying under valued stocks. Well a fews later when they closed our lab I had 130K in my account and my coworker was back to even at 60K because he didn't get to buy those cheap stocks and missed the key days the market jumped so he missed out on a good deal. I know a bunch of coworkers who never put a dime into a 401K and missed out on the free 6% Kodak matched plus with Kodak you were 100% vested from day one. After the lab closed I was able to roll all my 401K into a IRA with T.Towe and now I have over 200 different investments to choose from. My sister says I need to buy more Bonds so I need to ask her about US savings bonds. BTW no annuities here.


----------



## Nathan (Jan 2, 2007)

N7OQ said:


> Well I guess it depends on what you company offers in a 401K, I worked for Kodak and they use T.Rowe Price and I had several pages of different investments. I'm no investment expert, I don't have a clue but my sister tells me where to put my money and tells me when to make changes. When 9-11 hit the market dropped like a rock. I had only about 20k in my 401 and a coworker had almost 60k in his. He panicked and put all his money in a safe harbor but only after the damage was done. My sister said to leave it in the market, she made a few changes and said to ride it out, I was not buying under valued stocks. Well a fews later when they closed our lab I had 130K in my account and my coworker was back to even at 60K because he didn't get to buy those cheap stocks and missed the key days the market jumped so he missed out on a good deal. I know a bunch of coworkers who never put a dime into a 401K and missed out on the free 6% Kodak matched plus with Kodak you were 100% vested from day one. After the lab closed I was able to roll all my 401K into a IRA with T.Towe and now I have over 200 different investments to choose from. My sister says I need to buy more Bonds so I need to ask her about US savings bonds. BTW no annuities here.


I'll second Bill's comments. For savings, put at least as much in a 401K that gets your employer's max match. Then I prefer to pretty much max out the amount I can contribute tax free. My wife and I both have decent selections in our 401k's fortunately, but even with a worse selection, I'd still invest in a 401k for the tax advantages. Slow and steady wins this race, but unless you are nearing retirement, don't tie too much up in bonds of any kind IMO.









Ok, now just like it says on the investment companies disclaimers: These statements are my opinion and everyone should research for themselves and understand that investing does include risk








Now how far is the Dow down today?


----------



## raynardo (Jun 8, 2007)

Mgonzo2u said:


> I vowed to never take a job that pays from the pockets of the taxpayer (read: a government job at any level).


As a Navy veteran, I guess I broke that rule. I now work for a local government - service before self.


----------



## Mgonzo2u (Aug 3, 2004)

raynardo said:


> I vowed to never take a job that pays from the pockets of the taxpayer (read: a government job at any level).


As a Navy veteran, I guess I broke that rule. I now work for a local government - service before self.
[/quote]

First, thank you for your military service. Serving in the US military is always respectable.

As for earning a civilian living, I have always held to my principle of private sector before government dole (taxpayers back). My thinking was derived from a lifetime of family affiliation with government/county/city workers that my father worked with for over 42 years. I was going to do it differently.


----------



## Brad1 (Jan 21, 2007)

I am in the Investment Business with my father. He has been in Investments for over 45 years. He was trading stocks when he was 8 years old. You can get a way better return on your money in the stock market right now as long as you stay diversified. He used to trade bonds many moons ago when rates were unreal. Our philosophy is Long Term. We don't hit the panic button when the market is crazy, like it is now. Stick with the Blue Chips and aggressive growth. Mix in some nice income stocks or mutual funds. Mons put it best. If you have a 401K and your company matches, how are you not taking advantage of that. Not sure if you are allowed to do this but check out our site and you can research all you want. JetTrade


----------



## N7OQ (Jun 10, 2006)

Brad said:


> I am in the Investment Business with my father. He has been in Investments for over 45 years. He was trading stocks when he was 8 years old. You can get a way better return on your money in the stock market right now as long as you stay diversified. He used to trade bonds many moons ago when rates were unreal. Our philosophy is Long Term. We don't hit the panic button when the market is crazy, like it is now. Stick with the Blue Chips and aggressive growth. Mix in some nice income stocks or mutual funds. Mons put it best. If you have a 401K and your company matches, how are you not taking advantage of that. Not sure if you are allowed to do this but check out our site and you can research all you want. JetTrade


Yep that is what my sister keeps telling me, you are in it for the long term so don't worry about the ups and downs. Sense I'm 10 years from retirement she has me in 100% stocks with Mutual funds and spread out a lot, She said as I get closer to retirement she will have me move the money to less aggressive more secure investments. You don't know who many people who don't put a dime in when the company will match up to 6%. They tell me they can't afford it I tell them you can't afford not to, it is free money. I works with some guys who have never saved a dime moved between jobs and have never stayed with a company long enough to get a retirement. They are in there 60's and are planing to live on Social Security. I feel bad for them, they are not going to like retirement. I'm saving like there will not be any social security.

BTW has everyone seen how their Senators voted for allowing illegal to have Social Security and how they voted on making English the official language in America? I was appalled at how many want to throw this country away. If anyone wants to see the list I will be happy to send it to them.


----------



## Brad1 (Jan 21, 2007)

Yep that is what my sister keeps telling me, you are in it for the long term so don't worry about the ups and downs. Sense I'm 10 years from retirement she has me in 100% stocks with Mutual funds and spread out a lot, She said as I get closer to retirement she will have me move the money to less aggressive more secure investments. You don't know who many people who don't put a dime in when the company will match up to 6%. They tell me they can't afford it I tell them you can't afford not to, it is free money. I works with some guys who have never saved a dime moved between jobs and have never stayed with a company long enough to get a retirement. They are in there 60's and are planing to live on Social Security. I feel bad for them, they are not going to like retirement. I'm saving like there will not be any social security.

BTW has everyone seen how their Senators voted for allowing illegal to have Social Security and how they voted on making English the official language in America? I was appalled at how many want to throw this country away. If anyone wants to see the list I will be happy to send it to them.
[/quote]

It is amazing. So many people are not even close to ready for retirement. They think they will be okay with CD's and VERY conservative vehicles like that. Our Money Market fund is around 4% just by itself! It is a Fidelity Govt. Money Market Fund. Why would you lock into a CD? But again, it is sad to know that much of the nation is not even close to ready for Retirement. I always tell everyone, every little bit counts.

I have seen the "list" by the way and it is unreal. My Dad sent his idea for how to reshape the Social Security to Rob Portman when he was still up there in DC. He loved the idea but of course you know where we are today.


----------



## justinsnow0 (Feb 5, 2007)

Bill, I think after reading your posts that you and I are actually saying the same thing. I think we miss read each others posts. I completly agree with everything you said in your last posts.

On a side note, it's funny how many people paniced after 9/11 and took their money out. There was never a question that the market was eventually going to fix itself and continue to grow. I am going to guess that he is also a person that took all his money out of the bank before Y2K also


----------



## NDJollyMon (Aug 22, 2003)

Apparently, some of you failed to read and respond to the question in post #1.

Can you help me here?


----------



## N7OQ (Jun 10, 2006)

NDJollyMon said:


> Apparently, some of you failed to read and respond to the question in post #1.
> 
> Can you help me here?


Sorry NDJollymon I guess I kinda got off on a tangent. When I was in the AF it was easy to buy the bonds but in all my civilian jobs they just don't offer them so I just don't think about it. I do like the idea of buying a piece of this great country and I like the idea of having them for a emegerncy fund so think I will look into buying them again. How do the "I" bonds differ from the EE bonds that I use to buy? Can I buy them from a Post Office?


----------



## Sluggo54 (Jun 15, 2005)

Mgonzo2u said:


> As for earning a civilian living, I have always held to my principle of private sector before government dole (taxpayers back). My thinking was derived from a lifetime of family affiliation with government/county/city workers that my father worked with for over 42 years. I was going to do it differently.


Sorry your father's associates left you with a bad taste in your mouth for public service. You'll not convince me that my years of employment with our city government amounted to a "government dole". Our taxpayers got their money's worth, and maybe a tick more. Governments share a few similarities with business, in that they can be run effectively and economically, or not.

To answer the OP's OQ, we accumulated a few bonds (EE, mostly) as gifts, and had some left from purchases while in the Army. We cashed them in as they matured, or in the case of the old ones, when they quit accumulating interest. Never used them as a principle investment due to their inflexibility and relatively low rate of return.

You might want to look into T-bills.

DW's good sense and T. Rowe Price - unbeatable for service - left us in the best condition we could be in, considering all the other factors that flew in and out of our lives. Anyone who doesn't make maximum use of IRA's is making a major mistake, IMHO.

Sluggo


----------

