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Ibonds

By Terry Savage on January 24, 2023 | Chicken Money

Terry, I am thinking about taking some of my MetLife Total Control Account funds and buying Ibonds since as of now the Annual Yield on my account is 3.00%? I am currently unemployed and having health issues.
Thank you,

Terry Says

I honestly had to do a little research to learn about the MetLife Total Control Account.
Here is what I found:
The MetLife TCA is a settlement option offered by MetLife for the payment of claims. A MetLife TCA is not a checking, savings, or money market bank account. Since the MetLife TCA is not a bank account, it is not insured by the FDIC or any government agency.

So, I’m assuming you won a legal settlement of some kind, and this is where the money was placed for safekeeping. And I’m assuming the lawyers have already been paid, and the taxes (if any) were paid — and that this is the amount leftover. (I see that it is not FDIC-insured, but I couldn’t find out if it is in any way protected from creditors, more than a bank CD orT-bill. So you might ask about that.)

As long as you are capable of managing your own money, I see no reason why you shouldn’t maximize your return. But if you need access to the money to maintain your lifestyle, I would not recommend I-bonds, which must be held for a year, and which face penalties if you take the money out before 5 years — and which will adjust lower when inflation comes down.

Instead I suggest you read this article and consider buying 6-month T-bills, currently yielding about 4-3/4%. Those rates will likely be lower in6-months when it comes time to renew them, but you have more liquidity.

https://www.terrysavage.com/t-bills-beat-cds/

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