Or they did. Due in part to the mutual fund industry and the availability of information, more and more of us invest in the stock market. We forget about bonds. We especially forget about savings bonds. Bonds are boring.
Bonds are back in style as the safe backbone of a portfolio.
Believe it or not, the new I series Savings Bond can be a stable and lucrative part of that backbone. The best-kept secret of the U.S. Treasury is the new Series I savings bond. These bonds, like the older Series E and Series H bonds, are backed by the full faith and credit of the U.S. Government. This means that they are virtually risk-free. There is little or no default risk.