Investments after cashing savings bonds
I have U.S. Savings Bonds that are no longer earning interest and I have been planning to cash them in and invest the money. Can you suggest what might be the best investment I might make with limited risk at this time, or should I wait? I am 85 years old and do not anticipate needing the money in the near future.
Terry Says
Definitely cash them in — because you are required to do so after they mature. BUT, recognize that this could increase your earnings for one year — and might even impact your Medicare Part B premiums, or make part of your Social Security taxable.
Go to www.TreasuryDirect.gov to get the current value of those bonds. Then maybe spread out the cashing in process over two years. Ask an accountant about the impact of the gains if you do it all at once.
When you get the money, just put it in the bank. Interest rates are low, but the money will be safe.
