I don't think I've heard of these before. I guess when inflation was low, they weren't that important.
www.marketwatch.com
"A solution is I-Bonds, which are U.S. savings bonds whose yields are adjusted by the prevailing inflation rate. Specifically, their yield is adjusted twice a year—in May and November—according to the Consumer Price Index’s trailing 6-month change. Its current yield, set last November, was 7.1% (twice the CPI’s change from April to September last year)."
"Based on this week’s inflation report, this yield should be set at 9.6% on May 1 (twice the CPI’s change from October through March). The Treasury Department should announce the new rate in the next few weeks."
"I’ve written about I-Bonds before, and I refer you to that column for several important details. You can’t purchase an unlimited quantity of these I-Bonds, for example, and you can’t purchase them in an IRA. But you are allowed to purchase $10,000 of such bonds each year ($20,000 per married couple) and an additional $5,000 per year with your tax refund. A strategy of buying the maximum amount each year over a long period results in a sizable fixed-income allocation—big enough to satisfy the asset allocation requirements of all but those with a very large net worth."
The silver lining of surging inflation: I-bond yields should climb above 9%
Should you buy now or wait until the rate resets in May?
www.marketwatch.com
"A solution is I-Bonds, which are U.S. savings bonds whose yields are adjusted by the prevailing inflation rate. Specifically, their yield is adjusted twice a year—in May and November—according to the Consumer Price Index’s trailing 6-month change. Its current yield, set last November, was 7.1% (twice the CPI’s change from April to September last year)."
"Based on this week’s inflation report, this yield should be set at 9.6% on May 1 (twice the CPI’s change from October through March). The Treasury Department should announce the new rate in the next few weeks."
"I’ve written about I-Bonds before, and I refer you to that column for several important details. You can’t purchase an unlimited quantity of these I-Bonds, for example, and you can’t purchase them in an IRA. But you are allowed to purchase $10,000 of such bonds each year ($20,000 per married couple) and an additional $5,000 per year with your tax refund. A strategy of buying the maximum amount each year over a long period results in a sizable fixed-income allocation—big enough to satisfy the asset allocation requirements of all but those with a very large net worth."
