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Why Is 2024 a Good Year To Invest In Savings Bonds?
Withcash and bondsearning so little interest, the conversation turned to stocks being the only investment alternative.
How Do Savings Bonds Compare to Other Savings Vehicles?
Bond volatility is lower, and therefore the return is lower, Weerden explained.
This isnt inherently good or bad, it really depends on why the investor purchased the bonds.
Notice I said bond volatility is lower, not bond risk is lower.
How is this possible?Inflation.
They need to be invested in inflation-fighting assets, typically stocks and real estate, he said.
However, he said that a60-year-old buying bondsfor portfolio stability and income makes much more sense.
Which Savings Bonds Should You Invest In for 2024?
Corporate bonds may pay a little more, but youre adding risk and gettingless tax benefits, he explained.
U.S. government Treasuries are exempt from state and local tax.
This is why muni interest rates are typically lower than regular bonds.
Corporate bond interest is taxable on both the federal and state level.
Weeden said that taxes on bonds only apply if your bonds are held in a taxable account.
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