Series I Bonds
Inflation is still high. It could be years before it comes back down. This is bad for consumers, but it could be good for you as an investor.
The US government offers a bond that is tied to the Inflation rate, it is called a Series I Bonds
1. Series I Bond is a US Treasury
The US government offers a bond that is tied to the US inflation rate. The payout will fluctuate based on what the government deems the economic inflation is.
2. 2 payout rates
There is a fixed payout rate.
Then there is the fluctuating rate based on the current US inflation rate.
3. $10,000 yearly max
As an individual you are only allowed to purchase up to $10,000 in bonds per year. Every year you immediately purchase $10,000 or you can dollar cost average into these bonds.
4. You can hold it for 30 years
The max you can hold a Series I bond is 30 years.
5. Minimum of 1 year holding period. You lose previous 3 months of interest if cash out before 5 years
You must hold the bond for a minimum of 1 year, but really you need to hold it for at least 5 years.
If you withdraw before 5 years you lose 3 months worth of interest accrued.
Every time you deposit money into your TreasuryDirect account, you are purchasing a new bond whether $25 or $1,000.
6. You and your spouse can buy I bonds
Each person can buy $10,000 worth of Series I bonds.
7. Your LLC can buy I Bonds and you can gift I Bonds
Your LLC or trust can buy their own Series I bonds.
As an individual you can also purchase Series I bonds to gift to another person.
8. Where do you buy I bonds
You buy them directly from the US Treasury Department.
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