Have any of you heard of government issued I bonds? If so, what do you think? They can be purchased over the internet and right now are showing a 5.92 percent return. They can be cashed in after six months but there is a penalty of two months interest if cashed prior to the five year mark. Here's the link:

http://www.easysaver.gov/sav/sav.htm

 

Maybe not in the next one to two years, but in five years you can likely have a better return in the market by picking some of the stocks that are currently very "cheap". Savings bonds are at the very low end of the risk spectrum which means that they are also in the lower end of the return spectrum. Just my $.02.

 

That's why I like'em for now. Wouldn't invest a lot but a little afraid of the stock market right now and I'm not one to watch it on a daily basis. We've left what we have alone and hopefully it'll rebound. The I Bonds were of interest as it's safe and tax deferred.

 

Government bonds are ALWAYS good things to buy. Diversifying your portfolio doesn't just mean buying different stocks, it means buying different types of securities as well. I work in the investment business and I would advise you to don't just buy bonds, but also buy stocks, buy funds ... catch my drift? And the botton line is, bonds are always the safest way to go if you fear losing your money in the other securities. But consider other investment options. There are tons of things you can do with your money.