Sunday, April 17, 2022

Buy I Bonds right now!

I have an opportunity for you to earn 7.12% risk free to your principle for the first 6 months of the investment and 9.62% (expected) for the 6 months following!! This gives you a guaranteed 8.37% return on your money for 1 year!! 

How to get this return? You do this by buying I Bonds on the www.treasurydirect.gov website. You must register and make an account. Any Bonds bought from November 2021 to the end of April 2022 will be locked in at the 7.12% rate. Then after May 1, 2022 any I bond is locked in at the expected 9.62% rate. Why not wait? You will still get the 9.62% rate for the second 6 months if you buy before the end of April. Every 6 months they will reconfigure the rate locking in the next 6 months. Individuals are limited to $10,000 a year so it is a nice way to put a percentage of your portfolio in a guaranteed return! I have loaded up before the end of April. 

There are 2 caveats you must hold for at least 1 year and to avoid losing 3 months of interest if you cash out before 5 years! After 5 years there are no penalties for cashing out! So do not do this with money you cannot invest for a period of time. 

I have applied 2 strategies. They are making equal monthly investments so every month you will have money available to withdrawal in the future or reinvest. I have been doing this but to take advantage of the rate and to max out the total for a year I had to make a bigger one-time investment to maximize the return right now at the end of April!


This is just one idea for a percentage of your portfolio! Let me know what you think? 


Thank you 

DSF

Buy I Bonds right now!

I have an opportunity for you to earn 7.12% risk free to your principle for the first 6 months of the investment and 9.62% (expected) for th...