2006-11-12 18:44:29 · 4 answers · asked by mr mouse 1 in Business & Finance ➔ Personal Finance
Sure if you wanted some liquidity, guarantees and as a means to compliment a more aggressive retirement strategy, i.e. save 3 times as much with a savings bond and never quit working. Savings bonds are easier to get to, but I wouldn't necessarily put more than a few months to a couple years worth of expenses into one. The problem with savings bonds is that over the long run they will 97% of the time not out perform a stock index. Stocks are based on companies making more and more money each year. Savings bonds are the gov'ts ability to print more money. With that said, companies are still better at making profits than the gov't.
2006-11-12 23:40:32 · answer #1 · answered by GoodTimesMakingMoney 2 · 0⤊ 0⤋
NO. Savings bonds are just that - savings. A 401K is an investment. Big difference. Plus you pay no taxes on funds placed into your 401K. If you feel unsure about investing, most 401K offer a government bond selection into which you can put your money until you learn about investing.
2006-11-13 02:53:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No because the earnings on a savings bond will be taxable when you cash it in. If the savings bond were held in the 401K the earnings would not be taxable until you took a distribution from the 410K.
2006-11-13 08:16:28 · answer #3 · answered by waggy_33 6 · 0⤊ 0⤋
yes, as long as you keep it.
2006-11-13 02:54:31 · answer #4 · answered by Anonymous · 0⤊ 0⤋