I bonds
We purchased $20000 I bonds last year at the higher rate. Is it still considered a good idea to purchase more this year and if so, should I purchase now, in April or wait? We are a close to retirement couple. Thanks so much for all of your WGN radio advice!
Terry Says
Remember that you get 6 full months of the stated interest rate (currently 6.89%) and then the new rate set on May 1st will apply to bonds you buy now. (the bonds you bought last fall will get 6 months of 6.89%, and then reset to the May 1 rate.
And you should hold them 5 years to avoid a penalty. And if the Fed gets inflation under control that next May reset could be a lot lower.
In that context, it alldepends on your overall financial plan. Maybe something a bit more liquid this time, Like 6-mo T-bills?
Read this: https://www.terrysavage.com/t-bills-beat-cds/
