Question

The author discussed various types of federal government bonds, which type of bond would you as an investor buy? Which type of bond would you like for your pension plan (if you have one, if not for the discussion board consider if you had a pension plan for retirement) to invest? Please explain why you chose those bonds.

Answer 1

A government bond is a debt security.  
It is to support government spending. It is issued by a government.

They are low risk Investment.

Types of government bonds are:
1. Saving Bonds
2. Treasury notes.
3. Treasury Bonds (T-Bonds).
4. Treasury inflation protection securities (TIPS)

As an Investor it is advisable to invest in Treasury Notes. They are are intermediate-term bonds maturing in 2, 3, 5, or 10 years. They provide fixed coupon returns.
As an investor we are having flexibility to choose the maturity date, get a regular coupon which can be reinvested at current market rates of receiving coupon.

For retirement it is better to invest in  
Treasury inflation protection securities (TIPS).Treasury security indexed to inflation. They protect investors from the adverse effects of rising prices (i.e due to inflation).

So In a very long term a person doesn't have to think about beating the inflation. And what ever return he earns is above inflation.