Wiser Wealth: Worried About Taxes and Inflation? I Bonds Offer a Near-perfect Investment Hedge Against Both

By

Woman holding Cash

As inflation continues to impact many people’s finances, investors have been looking for ways to offset this with what they choose to put their money into.

One option that has been gaining popularity recently is Series I savings bonds, but there are also people who are not clear on all the intricacies behind this investment. The Wall Street Journal ran through some of the crucial details that you need to be aware of as you look into investing.

To start off, this is not an investment option that you can dump limitless money into. They are capped so you can only invest $10,000 per calendar year. Meaning if you invested now in 2022, you would be able to do so again come January of 2023.

As for what makes I Bonds appealing, even if interest rates were to continue fluctuating as they have done lately, you will not ever wind up losing money on this investment. The Treasury has stated that these bonds cannot become worth less than what you paid for them, so at worst you are risking time rather than money.

But you are no doubt hoping that I Bonds would be profitable and that you would wind up receiving significant income in interest on your investment. If you have been worried about losing value through taxes, you can rest easy knowing I Bonds are not subject to either state or local income tax.

And even more good news is that I Bonds can continue to generate interest income for 30 years. So if you can be patient, these are great long-term money makers.

Fred Hubler, President and Chief Wealth Strategist for Creative Capital Wealth Management Group suggests that most of his clients could benefit from purchasing I Bonds. “The only problem I see is that you are capped at $10K/person” jokes Hubler.

Naturally, any investment should be made with professional advisement beforehand. But if everything you read here sounds appealing, that might be a conversation you want to have with your financial expert.

For more on Series I savings bonds and how they can benefit you long term, read through the Wall Street Journal article here.

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Want to know if you’re on the right path financially? CCWMG’S Second Opinion Service (SOS) is a no-obligation review with one of  Creative Capital Wealth Management Group‘s Wealth Strategists. 

It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.

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