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Usefulness Of I Bonds And Testing A Financial Advisor

Friday, May 18, 2012 - 3:10 PM
If you're looking for a financial advisor, this tip from Zvi Bodie mentioned in this AdvisorOne article makes sense:
[Zvi Bodie] recommends those seeking professional help to ask a prospective advisor, as a test question, what they think of Series I savings bonds. “If you don’t get, ‘That’s a pretty good idea for money that you want to stay safe,’ then I would look elsewhere for an advisor,” Bodie says.

Zvi Bodie is a Professor of Management at Boston University who has written books about low-risk investing that focuses on TIPS and I bonds instead of stocks.

Of course I bonds have annual purchase caps. So for those with substantial savings, they are of limited value. But even for those with large savings, why not purchase as much as you can? In today's environment, they're very competitive compared to CDs, and they have many tax advantages. So if an advisor fails to praise I bonds, what Bodie says makes sense, "look elsewhere for an advisor". The advisor probably just wants to sell you products that make him money.
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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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