I Bonds: Explained

Hello!

We’ve had some questions about I bonds lately and wanted to breakdown the potential benefits and risks associated with purchasing an I (Inflationary) Bond. This is purely informational and would be something to be purchased on your own through the U.S. Treasury.  These bonds could be useful if you have extra cash that you don’t plan on touching for 1-5 years and could be viewed as a CD alternative. 

Here are a few Key takeaways: 

• Currently providing an annual rate of 9.62% (active through October)

• Issued through the Treasury Department

• You can contribute up to $10k per calendar year (plus an additional $5k if you use your tax refund)

Some areas to be careful: 

• I Bonds need to be held for at least one year

• If redeemed before five years, you lose the last three months of interest

• The annual rate can change every six months

Please consider these factors when deciding if this is the right investment for you.

I Bonds can be purchased on your own (D.I.Y.) through Treasurydirect.gov and attached are the links to learn about these bonds and purchase them directly: 

https://www.treasurydirect.gov/RS/UN-AccountCreate.do

https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm

Please feel free to reach out if you have additional questions or would like to go over additional options if you want to invest over $10k since that is the maximum investment amount allowed into this fund.

Securities and Investment Advisory services offered through GWN Securities, Inc.

A Registered Investment Advisor

11440 N Jog Road, Palm Beach Gardens, FL 33418 561-472-2700, Member FINRA, SIPC

LA Wealth Management and GWN Securities, Inc. are not affiliated