Government I bonds
Hi
I sold my house 5 months ago, I wanted to invest some of the money! I don’t want to be in a high risk mutual funds , but the I bonds are paying a good interest right now . I want to know how to buy them and the principal never is affected! Am I understanding this correctly?
I am in my mid 60’s and I am going to rent for a while! Do you think this is wise?
Terry Says
I think it’s wise to rent if you don’t know where you want to live. And yes, you can invest SOME of the money in Series I bonds, though read this article on my website first. You really need to hold the bonds for at least 5 years to get the best total return, and you MUST hold them at least one year. And selling early has an interest penalty of loss of 3 months interest.
So I wouldn’t recommend putting ALL your money into I-bonds. If we really do have inflation, the bank interest rates will rise eventually. Right now, you lose a little bit each year to inflation. But if you need liquidity and don’t want to take stock market losses, then bank CDs short term are the only place to go!
