Date: Fri, 17 Oct 2003 16:58:55 CST
From: Rich Carreiro 
Newsgroups: misc.invest.financial-plan
Subject: Re: I-bonds: buy now or November?
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"John A. Weeks III"  writes:

> interest bearing instrument).  If you buy now, you will have
> a few weeks more interest, and the interest rate will likely
> be higher for a few weeks until the fixed part of the I-bonds
> are adjusted (as they are twice a year).  If you can do better
> with your money between now and November somewhere else, then
> do that.


That's not correct.  The fixed rate component of I-bond return is
constant for the life of the I-bond.  The new fixed rate you speak of
applies only to I-bonds issued after the adjustment.  Issued I-bonds
never have their fixed rate change.

And that's why (IMHO) the original poster asked the question s/he did.
Since the OP will be forever stuck with whatever fixed rate is in
effect when the bond is purchased, should the OP buy the bond now, or
wait until November in the hopes that the new fixed rate will be
higher than the current one?

Therefore, the question then comes down to whether or not one believes
the fixed rate in effect for I-bonds issued 11/1/03-4/30/04 will be
higher than the fixed rate in effect for I-bonds issued
5/1/03-10/31/03.

So what do you believe?  :-)

-- 
Rich Carreiro                            rlcarr@animato.arlington.ma.us