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<p>[QUOTE=&quot;wolfee, post: 1328329, member: 34986&quot;]Joey, if you want the nth degree of security and minimum risk, they are reasonable, but consider that the current i bond pays inflation plus ZERO % interest.&nbsp; After taxes, you will actually be losing real purchasing power.&nbsp; The EE bonds (fixed rate) yield is so low now that the inflation risk here is terrible and they should be avoided.</p><p><br /></p><p>The fact that they take a long time to mature is irrelavent.&nbsp; After 5 years you may redeem anytime with no penalty.&nbsp; The penalty for redeeming earlier than 5 years is tiny.&nbsp; The 20 year EE and 30 year maturity for ibonds is one of their few advantages.&nbsp; If you want to redeem early, you can, if not, you don&#039;t have to.&nbsp; And, you are never at the mercy of the normal, marketable bond market price fluctuations.&nbsp; One other advantage to ibonds is that it is illegal for any municipality or state to tax them.&nbsp; In some instances they may be tax free if the income is used for college.&nbsp; </p><p><br /></p><p>Bottom line is that the Fed has arranged for minimal risk investments to pay almost nothing.&nbsp; I would avoid these.&nbsp; Instead I suggest you investigate the conservative end of corporate bonds, or better yet a balanced fund like Vanguard VWINX.&nbsp; About 40% value (dividend) stocks and 60% investment grade bonds.&nbsp; If your time horizon is 15 years, it would be reasonable to expect a return in the 5 to 15 % range.&nbsp; Per year, compounded.[/QUOTE]</p><p><br /></p>

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