Q I am a fan of the safety, predictability and convenience of I-bonds ($500 range). You often recommend TIPS, which I do not understand. Other than the need to hold I-bonds for five years to maximize the interest payment, what are pros and cons of I-bonds vs. TIPS? JOE, ROCHESTER A I'm also a fan of I-bonds. A brief definition: TIPS are Treasury Inflation Protected Securities. These inflation-indexed bonds come in five-, 10- and 20-year maturities. TIPS offer a fixed interest rate above inflation, as measured by the consumer price index. In other words, TIPS are designed to protect the value of an investment dollar against the ravages of inflation. An additional advantage of TIPS is that they protect against deflation -- a decline in the overall price level of goods and services -- by offering a "deflation floor" that protects principal value during deflation. The big drawback with TIPS is that Uncle Sam requires owners of TIPS in a taxable account to pay income taxes on the … [Read more...] about Advantages and disadvantages of U.S. I-bonds vs. TIPS
Purchase government savings bonds
Sections SEARCH Skip to content Skip to site index Business Subscribe Log In Log In Today’s Paper Business | The Dollar Is Still King. How (in the World) Did That Happen? Supported by ByPeter S. Goodman Feb. 22, 2019 LONDON — A cursory assessment might find the United States a less than ideal candidate for the job of managing the planet’s ultimate form of money. Its public debt is enormous — $22 trillion, and growing. Its politics recently delivered the longest government shutdown in American history. Its banking system is only a decade removed from the worst financial crisis since the Great Depression. Its proudly nationalist president provokes complaints from allies and foes alike that he breaches the norms of international relations, setting off talk that the American dollar has lost its aura as the indomitable safe haven. But money tells a different story. The dollar has in recent years … [Read more...] about The Dollar Is Still King. How (in the World) Did That Happen?
(Reuters) - Bill Gross, once the global bond market’s most influential investor and prognosticator, will retire in coming weeks from Janus Henderson Group Plc, ending an attempt to reclaim the stature he had previously enjoyed as head of the world’s largest fixed-income investing firm. FILE PHOTO - Bill Gross, Portfolio Manager, Janus Capital Group, listens during the Milken Institute Global Conference in Beverly Hills, California, U.S., May 3, 2017. REUTERS/Lucy Nicholson Gross, who turned to bond investing after serving as U.S. naval officer, co-founded Pacific Investment Management Co in 1971, attaining rock-star status in investing circles as he attracted hundreds of billions of dollars in assets. Under his watch, PIMCO blossomed into a $2 trillion asset-management powerhouse, one so influential that the U.S. Federal Reserve tapped it to help implement its program of emergency bond purchases in the financial crisis in 2008. At Janus, however, Gross was unable … [Read more...] about Bill Gross, once Wall Street’s ‘Bond King,’ retires after rocky…
Hard-pressed savers can now invest in Premium Bonds with as little as £25, after National Savings & Investments (NS&I) cut the minimum investment requirement for the first time in 63 years. Previously customers had to deposit at least £100 to purchase Premium Bonds, but this threshold has been lowered to encourage young people to invest and to make it easier for customers to make small investments on behalf of their children and grandchildren. The Government-backed NS&I said it hoped the change would encourage customers of all ages to invest small sums on a regular basis, with regular standing orders for £25 also now permitted. The upper limit for investment remains at £50,000 per customer. Savers have turned to Premium Bonds in large numbers in recent years, preferring to take a chance on prize payouts rather than stick with high street savings accounts offering paltry rates of interest. Monthly prizes range from £25 to two … [Read more...] about Premium Bond minimum investment slashed to £25
Sections SEARCH Skip to content Skip to site index Subscribe Log In Log In Today’s Paper DealBook | DealBook Briefing: Feeling the Bite of the Government Shutdown DealBook Supported by Jan. 9, 2019 Good Wednesday morning. Want this by email? Sign up here . The pain of the government shutdown is showing President Trump escalated the border wall fight in a televised speech last night, at the cost of leaving the government partly closed. He criticized political opponents for blocking the wall, although Democrats have offered $1.3 billion for border security measures like surveillance and fencing. The effects of the shutdown have begun to ripple across the economy, with mortgage applications delayed or canceled, public companies unable to complete deals and the well running dry for many federal employees. • Payday would have come this week for many of the 800,000 federal workers affected. With no … [Read more...] about DealBook Briefing: Feeling the Bite of the Government Shutdown