Here with a short – and I think pretty interesting – follow up to the explainer video I released back in July on Series I Savings Bonds, otherwise known as I-bonds.
If you haven’t watched that video, I’ll put up the link to it here & again at the end of this video. It explains what I-bonds are and how they work.
But I’m releasing this new video because I-bonds continue to be one of the best deals out there right now.
They come with all of the security and return-of-principal guarantees of a standard Treasury bill, except they currently yield nearly 3x the income. Right now I-bonds are paying interest at a phenomenal rate of 9.62%.
A risk-free return of 9.62% – who wouldn’t want that? Especially in today’s uncertain markets with reported inflation stubbornly persisting above 8%?
I think just about all of us would. And in most cases, we should take advantage of this. I certainly have been this year.
Though I should specify here up front that only those with a US Social Security number can buy I-bonds. Sorry international folks – if you don’t have one, you can’t take advantage of what I’m about to share here.
Of course, the rub with I-bonds is that the government limits us to buying only $10,000 worth of them, per person, in any given year.
So, if you have a lot of cash to protect from inflation, I-bonds are generally dismissed – they’re viewed as a nice but too small & insufficient shield because folks fixate on the $10,000 limit.
I think thinking this way is a mistake here in September of 2022, because there’s a strategy that today – right now – will allow you to invest more than 10x that.