10x Your I-Bond Returns (Or More) Using This Little Understood Strategy

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Here with a short – and I think pretty interesting – follow up to the explainer video I released back in July on Series I Savings Bonds, otherwise known as I-bonds.

If you haven’t watched that video, I’ll put up the link to it here & again at the end of this video. It explains what I-bonds are and how they work.

But I’m releasing this new video because I-bonds continue to be one of the best deals out there

right now.

They come with all of the security and return-of-principal guarantees of a standard Treasury bill, except they currently yield nearly 3x the income. Right now I-bonds are paying interest at a phenomenal rate of 9.62%.

A risk-free return of 9.62% – who wouldn’t want that? Especially in today’s uncertain markets with reported inflation stubbornly persisting above 8%?

I think just about all of us would. And in most cases, we should take advantage of this. I certainly have been this year.

Though I should specify here up front that only those with a US Social Security number can buy I-bonds. Sorry international folks – if you don’t have one, you can’t take advantage of what I’m about to share here.

Of course, the rub with I-bonds is that the government limits us to buying only $10,000 worth of them, per person, in any given year.

So, if you have a lot of cash to protect from inflation, I-bonds are generally dismissed – they’re viewed as a nice but too small & insufficient shield because folks fixate on the $10,000 limit.

I think thinking this way is a mistake here in September of 2022, because there’s a strategy that today – right now – will allow you to invest more than 10x that.

I-Bonds For Inflation Protection: Why Own Them, How They Work, How To Buy Them, Pros & Cons

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Series I Savings Bonds, also known as I-bonds, are offered by the US Treasury as a way to protect the purchasing power of your money from being eroded by inflation.

This is

protection many investors want badly right now, as inflation has roared back to life over the past year and a half. After decades most spent under 2%, as of the time of this recording, the official Consumer Price Index, or CPI, is currently at a 41-year high of 8.6% annualized:

The way that I-bonds defend against this is they earn a monthly interest rate that’s usually higher than the CPI. So their return beats or comes quite close to the officially-reported inflation rate.

In this video, we explain what I-bonds are, how they work, what their benefits are & how to buy them.