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Re: I bond rate November 2019

Posted: Tue Jan 07, 2020 3:05 pm
by jhogue
Kbg wrote:
Mon Jan 06, 2020 9:07 pm
What strategies are folks using to decide (that aren't simply trying to predict the future) between normal Ts and I-bonds.
: If you are just starting, don’t buy STTs or savings bonds until your TMMF covers 6 months living expenses. After that, add STTs and savings bonds in equal amounts. When Cash reaches 2 years living expenses, put all new money in your savings bond ladder. I-bonds really hit their stride in the 5-30 year time frame after they become penalty-free, as well as inflation-adjusted and tax-deferred. The older they get, the more important these last two features become.

Re: I bond rate November 2019

Posted: Tue Jan 07, 2020 3:18 pm
by ochotona
jhogue wrote:
Tue Jan 07, 2020 3:05 pm
Kbg wrote:
Mon Jan 06, 2020 9:07 pm
What strategies are folks using to decide (that aren't simply trying to predict the future) between normal Ts and I-bonds.
: If you are just starting, don’t buy STTs or savings bonds until your TMMF covers 6 months living expenses. After that, add STTs and savings bonds in equal amounts. When Cash reaches 2 years living expenses, put all new money in your savings bond ladder. I-bonds really hit their stride in the 5-30 year time frame after they become penalty-free, as well as inflation-adjusted and tax-deferred. The older they get, the more important these last two features become.
But you need to eat them at 30 years, as no more interest accrues

Re: I bond rate November 2019

Posted: Tue Jan 07, 2020 3:35 pm
by Kbg
I have both, but other than calculating post tax equivalent rates I don't have a good plan and I tend to ETFs as I like the convenience/instant liquidity aspect. I'm just beginning to get my head around post career retirement planning and it appears to be highly temporal in nature (i.e. what is best is based on how various milestones and needs flow through time more than anything)