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If you haven’t heard, now might be the time to turn your attention to Series I Bonds (I Bonds).READ THE ARTICLE
No longer a forgotten investment: It’s easy to see why these government-guaranteed securities have quickly become the new Bitcoin in the financial world. As of November 1, interest rates on Series I Bonds have soared to 7.12 percent, which is guaranteed through April 2022. Put simply, I Bonds are classified as safe investments issued by the U.S. Treasury to protect your savings from losing value due to inflation. Their composite rate is made up of a fixed rate (currently zero percent on new bonds), as well as an inflation rate (based off the government’s consumer price index, adjusting every six months from the bond’s issue date).
Inflation protection: High interest rate aside, Series I Bonds also act as a “consistent hedge to persistent inflation pressure,” which is a concern many retirees are currently facing. This could be the peak moment for this asset class, so if you’re looking to supplement your retirement income, don’t delay. Visit the Treasury Direct website for more information, or to purchase I Bonds of your own.
My thoughts: While the limited quantity of these bonds is unlikely to make a major difference in your financial life over time, they could still be quite impactful. For one, you could build up allocations to these tools as you prepare for retirement to act as a buffer during times of market volatility!