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To: Knighty Tin who wrote (258094)	8/29/2003 12:07:18 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 436258

I don't think there is a racket; just an anomaly, in rates , so for a short term to mid term place to park cash ( if 1yr fits your needs ) it's not a bad deal. It's only good for individuals and there is a 30K limit in any one yr. --- Those who got in 2000, to mid 2002 are making about 7%.. --- My longer term bonds haven't rolled over yet ( Won't until 2005.) but lets just pretend they were going to roll over right now. Well I wouldn't re-enter long term bonds now but I would park the cash in I-bonds until rates moved up. ---- Taht is if you want to hold some bonds, and at my age I hang with at least 60% in bonds. Even now any extra cash I wind up with goes about 40% stocks and 60% in bonds. ( sale of real estate and my part time boat job has me doing fair on the cash flow end, better than fair considering I'm 66 ) --- Also the I-bonds are tax deferred until cashed, however the base rate will drop come NOV 1 to reflect the last fed cut, so I intend to max out my 30K yearly limit before then. IF the Fed ups rates the I-bonds don't catch up until the next adjustment date , ( MAY & NOV,) the inflation part works the same way. Depending if the CPI is up or down for the last 6 months. ---- It goes ( base rate + 2 X infaltion rate ) + (base rate X inflation rate ) equals the yeild. Base rate is fixed when bought for 30 yrs..so there will be times if the base rate goes up enough it would pay to roll them, providing the your tax braket don't steal the gain. Or if the 5 or 10yr TSY gets back up to 7%, and the FED tells another lie about the CPI to make people think we are not inflating. --- Crap the only way out of this mess is to inflate, and I'm not sure taht will work. The Republicans are really closet communists , that is the part taht aren't closet anarchists. Jim