Continuing to buy I-Bonds or replacing the I-Bond purchases with Schab SCHD
Terry,
Should I continue to buy I-Bonds or switch to Charles Schwab’s SCHD ETF in a Roth IRA? I’ve been making monthly I-Bond purchases since the inflation interest adjusted rate went up to 7.12%. I’m seeing some reports alleging that the rate might increase to over 9% in May when it’s readjusted. I know federal income taxes will have to be paid on the I-Bonds at redemption. I’ve also read where SCHD has been doing really well. I like Schwab’s filters for picking the stocks in the fund, including paying dividends over decades, and increasing those dividends, company valuation, and debt load. I only have enough money to do one or the other, so please let me know what you think. Thanks!
Brian
Terry Says
You can only do $10,000in Ibonds in one year. I’m assuming you don’t have that much and want to do both.
If you want to do the Schwab Equity Income fund, make sure it’s in an IRA — if you have earned income.
Can’t miss if you do both!!
