Bond Confusion

Have you seen the new limits US Savings Bonds? Did you see the reasoning? I find the reasoning confusing and I don't think it is old age setting in.

If you hadn't noticed here is what happens effect January 1st. The limit on purchasing EE and I bonds is lowered to $5,000 a year from $15,000 a year. This limit is per bond type. The reason is to encourage people with limited incomes to buy bonds. Besides which history shows that 80% of people who buy purchase $5,000 or less a year.

Maybe, I am just silly. I always thought when it came to investments and money, the minimum to buy in determined who was going to invest, not the maximum allowed. The minimum is pretty low now, $25 for an EE bond. The minimum has always been a determining factor for us.

And what about the 20% who bought more than $5,000 in a year? Are they evil Anti-Americans? Or did they just not want play in the stock market? Or is there a more nefarious plot afoot? Honestly, I will probably never know know the truth.

To get it straight from the horse's mouth, here is the link.

http://www.treasurydirect.gov/news/pressroom/pressroom_reducedpurchaselimit.htm