Pay down mortgage or invest in I bond?
If I have a 10,000 windfall and a mortgage @4.25% am I better off paying the mortgage down (less property tax deduction) or investing in an I bond or T bill (knowing I will have to pay taxes on the interest)?
Terry Says
You won’t pay taxes on an Ibond until you cash it in, in at least 5 years.
You don’t want to refi that nice low mortgage rate.
But you might consider T-bills. Read this: https://www.terrysavage.com/t-bills-beat-cds/
T-bills give you more flexibility, since they renew every 3 or 6 months at the then-current rate.
