Date: Wed, 8 Sep 2004 09:05:30 CST
From: Ron Peterson 
Newsgroups: misc.invest.financial-plan
Subject: Re: Buying I/EE Bonds
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Prashant  wrote:
> I am planning to buy I bonds this week. I had few questions, Would
> appreciate if you can your opinions.
 
> 1. Is this a good time to buy bonds, or should i buy them after
> sometime - As we are in age of increasing interest rates.

Wait, interest rates are going up.
 
> 2. With the increase in interest rates, I guess the bond yield would
> remain same - however would Bond Value go down to maintain same yield.
> Would the Bond value going down hurt me ?

A decrease in bond value would mean less money for emergencies.

> 3. This is the first time I am planning to buy bonds. My current
> investments are in Cash only. I am planning to have bonds as 20% of my
> portfolio and would like to keep the money in bonds as long as I don't
> need it - maybe for 15-20 or more years.

Ladder your bonds by buying various maturities. Start out with shorter
maturities and as the rates go up, buy longer maturities.

-- 
   Ron