| Maturing Bonds. What to do. |
|
|
|
|
|
wyclef
Full Member
Cash: $ 18.22
Posts: 99
Joined: 08 Oct 2004
|
| Maturing Bonds. What to do. |
 |
|
Hi, I’m going to have a bunch of Series EE bonds maturing over the next several years at differerent times and am debating if I want to just roll them over back into a EE again or maybe some I bonds or if I should just ship them off to Vanguard VTSAX or VWELX which I also have. At best with the EE you are getting like 3.5 over 20 and then the I bonds, i don’t know. Probably be looking at around 15k but broken up over a bunch if small denominations over several years. Could do some 5 year CDs but might as well just redo EE if that. Thoughts?
|
Fri May 03, 2019 2:54 pm |
|
|
oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
|
Your choice depends entirely on what your goals are. Eg, if you are over 60 you need 'wealth preservation' - savings accounts, CDs, etc. And if you you are younger, you need 'wealth-building' items - mostly equities.
The wealth-preservation items are designed to offset inflation, they pay 1% to 3%, they don't add wealth, they provide 'safe storage' of your assets. Conversely, wealth-building assets are designed to outpace inflation - eg, they pay 10% to 12%, about 8% to 10% above inflation. So your account grows at an average compounded rate of about 11%/yr. ($15K will be about $450,000 in 30 yrs).
Your bonds and CDs are strictly 'safe-storage' items, not wealth builders. Your VTSAX is a good wealth-builder - but any of the SP500 based index funds will do. And the idea is to buy and accumulate, never sell & trade. And don't scatter them about - the index funds are fully diversified, pick one and put your money there, no need for small bunches of funds and their many fees.
|
|
Fri May 03, 2019 3:50 pm |
|
|
|
