Excellent video. Great overview and thank you so much for your input on my question. Given my situation, I definitely think Im going to go to treasury direct and get some T-bills. Much more straightforward and a nearly surefire to bolster some of my savings. I-bonds do seem spotty in terms of the contexts in which they grant an advantage, especially for me as Im not looking for any type of long term investment (5+ years) right now. Any long term investment is with my job's 401k and the employee match I get. Great video Scott!
A few unique things about I bonds vs treasuries or TIPs 1. When interest rates rise you can lose money with treasury bonds or tips if sold before maturity. Also TIPs yield can go negative vs I bonds where you cannot lose money when interest rates rise and yields never go below zero. 2. Tax on interest earned in I bond is not paid until redeemed allowing you to defer until a year when you are in a lower bracket. Also I bonds can be tax free if used for education. 3. I bond is the only bond that does better in high inflation situation as its rate increases vs other bond values decline as interest rates rise due to inflation.
Excellent video. Great overview and thank you so much for your input on my question. Given my situation, I definitely think Im going to go to treasury direct and get some T-bills. Much more straightforward and a nearly surefire to bolster some of my savings.
I-bonds do seem spotty in terms of the contexts in which they grant an advantage, especially for me as Im not looking for any type of long term investment (5+ years) right now. Any long term investment is with my job's 401k and the employee match I get. Great video Scott!
A few unique things about I bonds vs treasuries or TIPs
1. When interest rates rise you can lose money with treasury bonds or tips if sold before maturity. Also TIPs yield can go negative vs I bonds where you cannot lose money when interest rates rise and yields never go below zero.
2. Tax on interest earned in I bond is not paid until redeemed allowing you to defer until a year when you are in a lower bracket. Also I bonds can be tax free if used for education.
3. I bond is the only bond that does better in high inflation situation as its rate increases vs other bond values decline as interest rates rise due to inflation.
3:01 tips