Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
Should I purchase EE/E or I bonds?
I want to start buying bonds for my young nephews. I know the difference between the 2 types, but which one is a better investment. I'm thinking of buying about 2, $100 bonds per year.
2 Answers
- gregory_dittmanLv 71 decade agoFavorite Answer
I-bonds, The government knows this and that's why there is a bond purchase limit on I-bonds. Both are poor choices because neither beats inflation plus taxes. Even though the monitary value will go up, the purchasing power will go down or be stable as with I-bonds. Right now 7% investment is the break even point (where the gains are even with inflation plus taxes), but since inflation might be rising, that number will need to go up.
- Anonymous1 decade ago
If you are wanting to choose between the two, I would be much more inclined to choose the I bonds. They are inflation protected more or less and I doubt there is anyone currently that doubts that inflation is going to be a real problem during the next 20 years. I say more or less, but it will more likely be less than more since it is the government selling the bonds and the same government telling us what the inflation rate is. Talk about conflict of interest.