I bonds
Would it be advisable to withdraw $ 10,000 from a traditional IRA and buy an I bond ?
Terry Says
Well,it all depends on how your IRA is invested. Interest on the I-bond is tax deferred till you cash it in — just like the IRA
So a lot depends on your time horizon. Over every 20-year period in the last 100 years,a diversified stock portfolio with dividends reinvested has always beaten inflation. I-bonds are designated to MATCH inflation!
One thing to keep in mind. If you withdraw from the IRA you’ll pay taxes immediately!
