Dumb question about savings bonds...

[Amanda's mom]

Okay, I have invested in US savings bonds since I was little and could buy savings stamps for a dime a piece. My daughters, my husband and myself all have savings bonds. Should we hold on to them or cash them in? If we cash them in, should we buy precious metals, food, other supplies, or bank it? My sister works at a bank and said several years ago to dump the bonds but we didn't because they weren't all matured. Were we foolish? :scratch :idunno

[Ulua]

Okay, I have invested in US savings bonds since I was little and could buy savings stamps for a dime a piece. My daughters, my husband and myself all have savings bonds. Should we hold on to them or cash them in? If we cash them in, should we buy precious metals, food, other supplies, or bank it? My sister works at a bank and said several years ago to dump the bonds but we didn't because they weren't all matured. Were we foolish? :scratch :idunno

I have some bonds too and I base my decision on how much interest I am getting. Recently, for example, I cashed in some EE bonds that were yielding 3.47% interest and put some money in a Roth IRA paying 4.5% interest. On the other hand, I also have some I bonds paying 6%+ interest and am not touching those.:preach

As for investment options.. sorry..:idunno

[FarmBoy]

I have some bonds too and I base my decision on how much interest I am getting. Recently, for example, I cashed in some EE bonds that were yielding 3.47% interest and put some money in a Roth IRA paying 4.5% interest. On the other hand, I also have some I bonds paying 6%+ interest and am not touching those.:preach

As for investment options.. sorry..:idunno

Thats the problem these days, with everything so shaky where does one invest besides precious metals?

[HisAlways]

We have some bonds too.....I'll have to check the numbers. Gosh....one is REALLY old. I forgot about it, actually.

[Roland]

Should we hold on to them or cash them in?

My personal opinion is to hold on to your saving bonds. The best thing is to stay diversified. There are no safe havens except:

Mat 6:19 Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal:
Mat 6:20 But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal:
Mat 6:21 For where your treasure is, there will your heart be also.

[Rondaben]

look at inflation and look at your yield.

Reported inflation is around 2-2.5%, assuming that you don't eat, drive or heat/cool your house.

If you are like me, true inflation across the market is closer to 7-9%. And this rate is going to do nothing but go up because of the "liquidity" that is bieng pumped in to the economy at 18% or so per year.

Net answer: if you aren't making more than the 7-9% on your bonds, they are losing value (in terms of purchasing power) every year.

Roll them over to gold or silver that you physically control. I personally prefer the good faith and credit of silver rounds to that of our government.