The new inflation-indexed savings bond rate is a tad more generous than I expected. The new rate is 3.67 percent for the next six months, up from 3.39 percent for the half-year that ended Oct. 31.

Nonetheless, I bonds still don’t look like a good long-term bet compared to EE bonds. For the next six months, EEs will pay 3.25 percent, up from 2.84 percent since May 1.

Why are EEs better? Because they’re likely to be more generous over time.

EE rates are changed every six months to equal 90 percent of the rate paid by the five-year U.S. Treasury note. That’s generally means EEs pay about 2 percentage points above the inflation rate.

I bond rates adjust differently. First, they have a fixed rate that stays the same for the bonds’ 30-year lives. On Nov. 1, the government kept that at 1 percent, the level since May 1.

The other part is a variable rate changed every six months to match inflation. That was set at 2.66 percent, giving a combined rate, with rounding, of 3.67 percent.

With the variable rate always equaling inflation, it’s the fixed rate that determines how much you make above inflation. By purchasing an I bond now, you’d be stuck with a stingy 1 percent above inflation, while EE bonds usually pay twice that much.

Both types of savings bonds are about the safest investments going. But they’re no good for people who need steady income because you don’t receive the interest earnings until a bond matures or you redeem it.

You must hold a savings bond for 12 months before it can be redeemed, and if you cash it in before holding it for five years you lose the last three months’ interest earnings.

Savings bonds are sold at many banks and credit unions, as well as online at www.savingsbonds.gov.

Portfolio review

Most savvy investors know they should rebalance their portfolios regularly to keep to their targeted mix of stocks, bonds and other investments.

Never doing so would cause your portfolio to get way out of balance — reducing returns, increasing risks or both. But rebalancing too often would rack up excessive commissions.

What’s the best compromise? New research from Vanguard Group concludes that the best approach is to look at the portfolio every six or 12 months and rebalance only if assets are off-target by 5 percentage points or more. If your goal is 60 percent stocks and 40 percent bonds, rebalance when stocks climb to 65 percent or more, or fall to 55 percent or less, for example.

IRA withdrawals

With only two months left in the year, older investors should refresh themselves on the dreaded required minimum withdrawal rules for individual retirement accounts.

If you have a traditional IRA, you must begin taking money out by April 1 of the year following the year you turn 70 1/2. So if you turned 70 1/2 this year, or will, you have to get that money out by next April 1 and pay any income tax due or face a whopping penalty. There’s no such requirement for Roth IRAs.

To minimize your tax bill, you may well want to make that first withdrawal before the end of this year rather than waiting until spring.

After that first required withdrawal by April 1, future withdrawals must be made by Dec. 31. Thus, if you turn 70 1/2 in 2004, this year’s withdrawal can be made as late as next April, but next year’s will have to be made by Dec. 31, 2005. That means making two withdrawals in one year, which could push you into a higher tax bracket.

The required minimum withdrawal is based on your age and the value of your accounts. The bank, brokerage or mutual fund company that has your account will have details on the calculation.