[Hin]

Given the current challenging environment for stocks and the likelihood of inflation soon due to tariffs, what do people think about I-Bonds?

Sure the 3.11% rate right now is a little low but it has a guaranteed 1.2% return on top of inflation.

If we see inflation return to 2022 levels you could see 10% or higher rates later on.

Of course with the purchase limits you can’t go all-in on I-Bonds but it might be a nice way to protect some of your money from both volatility and inflation with an added bonus of tax deferral.

[Bethany]

Good strategy. Some REITs are also a good option, esp light industrial REITs.

[Ryan]

Money Market accounts have been 4%+ for the last two years. Why not just keep it in there?

I Bonds lock your money up and don’t allow to buy the dips when you want…

[Gioia]

I have been buying certain amount every year to stash my emergency fund.

I keep 2-3 month emergency fund/working capital in the bank and additional emergency fund is in I-Savings.

At my marginal tax rate, 3.1% tax deferred interest rate is better than after-tax interest from HYSA.

[Shawn]

I think the fixed rate is hard to beat and likely to be lower over time. I’m a buyer.

[Brad]

Personally put 10% of my withholdings into a bond fund and use that to buy S&P type funds when market drops significantly.

It has worked well for me. As I near retirement FIPDX will be a part of my permanent holdings but only about a quarter of total.

Everyone’s situation is different though.

[Author]

Posts