Comments on: Basics of Treasury Bonds & Securities Explained

By: Brodient

Brodient — Sat, 19 Sep 2009 17:51:35 +0000

Is it possible to hold TIPS or I Bonds in an IRA? I’m considering a Treasury Direct account, but would like to buy the bonds using cash already in my ROTH or regular IRA accounts. Is there a preferred process to do this?

By: Herb O'Connor

Herb O'Connor — Sat, 04 Jul 2009 10:46:17 +0000

I am now 61. Should I buy a treasury bond that pays 4.5% or one that has an interest rate of 6.25%. We are interested in producing as much income as possible at this stage of our lives. Thanks

By: Ramoogur Akshay

Ramoogur Akshay — Fri, 06 Mar 2009 16:27:09 +0000

Thx

By: SimplyForties

SimplyForties — Tue, 27 Jan 2009 21:25:01 +0000

Thanks Jim! Now I’ll forward this one to my son who will probably turn around and cash in all his bonds. Oh wait, maybe that wasn’t such a good addition after all!

By: Jim

Jim — Tue, 27 Jan 2009 20:43:38 +0000

Shoot, I knew I forgot something, you twittered that to me. My bad… I’ll amend immediately.

By: SimplyForties

SimplyForties — Tue, 27 Jan 2009 20:33:31 +0000

Hey Jim, you list where to buy but not where (or how) to sell them. You might not imagine that anyone wouldn’t know that but if you’re a college kid who’s got a bunch of bonds that your grandparents bought for you when you were a baby, you might not have a clue how to cash them in.

By: Eric N.

Eric N. — Tue, 27 Jan 2009 08:57:39 +0000

I purchased my I Bonds when you did.

Though this post reminds me…are we technically in a period of deflation now? I admit I’m a bit clueless but does that affect the bonds that are pegged to the inflation rate?

By: thomas

thomas — Tue, 27 Jan 2009 03:52:17 +0000

Great summary of bonds & securities. I have several EE bonds from my Army days (Man I thought I was so cool saving $50 a month!). Always good to get a refresher on the different offerings.

By: elementaryfinance

elementaryfinance — Mon, 26 Jan 2009 23:45:03 +0000

T-Bonds are a great way to get in to low risk investing beyond the confines of CDs and Savings Accounts. I’m writing a piece for my site about them and plan to use some of this information.

By: Jim

Jim — Mon, 26 Jan 2009 17:26:29 +0000

I wasn’t so much recommending Treasuries as I am just trying to explain them so people understand what they are. I do agree that we are in a bubble (or at least frothy) as people turn to them for safety.

By: Austin Lance Butler

Austin Lance Butler — Mon, 26 Jan 2009 17:23:05 +0000

I am actively involved in shorting long dated treasury bonds.

I believe this is the latest bubble.

This post would have been timely in September 07. I would point out to your readers that the treasury bond market is extremely overcrowded, and the risk/reward ratio in these securities isn’t in favor of the purchaser.

ALB

By: Patrick

Patrick — Mon, 26 Jan 2009 14:51:10 +0000

I agree with the other commenter in that who knows how the US government is going to be in the next 30 years. I would rather invest in municipal bonds at this point as they are both federal and state tax exempt.

By: Miranda

Miranda — Mon, 26 Jan 2009 14:08:34 +0000

I’m not sure that inflation is all that much of a concern for many right now. After all, quite a few people are actually buying bonds in order to preserve principal. It’s gotten that risk averse out there…

By: the weakonomist

the weakonomist — Mon, 26 Jan 2009 14:02:02 +0000

One of the minor risks is default risk. T-bills can be considered a risk free rate because what are the odds the federal government will go bankrupt in the next 3 months or so?

But who knows what 30 years from now will look like? The USA may not exist, and your bond is worthless. I’m not a fear monger, I do believe government bonds are one of the safest investments in the world. But like the bargainr says, all investments carry risk.