iBonds
Terry,
At 6.89% these still seems like a good buy, even if you consider that you may want to pivot in 15 months. What are your thoughts? I’m thinking that if we wait until April it might even go a bit lower.
Thanks!
Terry Says
Think about it this way. If you buy I-bonds now you will get 6.89% for 6 months. THEN, you will get whatever the new rate is — posted on May 1st — for the subsequent 6 months.
Yes, I think the 6-month rate may be lower when it is set in May, as the Fed beats inflation into the ground.
But you MUST hold your I-bonds for at least one year. And there’s a 3 months interest penalty if you sell after that before holding for 5 years.
So this is a long-term investment that is designed to “keep up” with inflation.
Read this: https://www.terrysavage.com/i-bonds-everything-you-must-know/
