An Update on I-Bonds

Remember when I-bonds were all the rage??

If you purchased I-bonds in August of 2022 when a popular investing website article declared "Run, Don't Walk, for I-Bonds," your investment would be yielding 2.96% right now.
​
Why? Inflation has come down, and the I-bonds issued during that time had no fixed coupon rate. So the entire 9.62% interest rate that you receive has come down as CPI inflation has cooled.
​
As a reminder: You can only buy $10,000 in I-bonds per year. Also, if you sell before 5 years, you surrender 3 months of interest.
​
Were I-bonds a good investment? Depends why you made the decision to buy them in the first place. Were the bonds part of a long term investment plan? Or were you merely caught up in "running" after the latest investing fad perpetrated by the financial media?

There will always be the next "latest and greatest" trade, but the key is to not get swept up in the emotions of the moment. Research is critical to building diversified long term portfolios.

If you would like to discuss portfolio construction further, click Book A Meeting.

The change in the rate of interest paid on I-bonds.