I Bond, iBonds, i-Bonds or Series I bonds.: Re: Mixed Feelings on I bonds

» bamala - Re: Mixed Feelings on I bonds

In response to Mixed Feelings on I bonds posted by pbradford6:

For me I-bonds are a holding place for cash I don't want to invest just yet. In that case, my goal is to make a decent short term gain without risking the principle and I'd like the gain to be tax free. (The author of the article failed to mention the state tax bennie.) That's the I-bond for you. When I do investment planning I use the current I-bond rate, minus 3 month's interest, as my risk-free rate because it's the best I've been able to find. For long term I would think you need to aim for a higher fixed rate portion of the bond -- but still it's inflation protected and state tax free and the principle is not at risk so I still don't see how you can lose -- you will just not see the big gains those gambling in the equity markets might experience.

-- posted by bamala