jetcityimage/iStock via Getty Images The fixed rate offered for new issuance of Series I Saving Bonds by the U.S. Treasury is set to be adjusted again in May. This begs the question for investors, should I buy I bonds before the adjustment or after? The answer depends on the investment goal. Actually, it depends on whether the goal is investment or savings . As a refresher, savings and investment are not the same thing. Savings is the liquid part of the household balance sheet that is necessary to meet immediate and emergency expenses. The purpose of savings is to preserve purchasing power at low or no risk. As opposed to savings, investment is the working capital of the household balance sheet. Investments accept a higher exposure to risk in order to achieve real rates of return. In essence, investments build wealth and savings preserve it. The U.S. Treasury Series I Savings Bond can be used as savings or investment, depending on several factors. The most important of which is inflation and interest rates. For a recap of how they work, please see my previous articles on I-bonds here and here . Given rates and inflation today, I’m favoring the […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
