I'm a big fan of I-Bonds. I started buying them because it was less work than maintaining a 3-year CD ladder.
You may not be able to withdrawal for the first year, and there's a penalty for withdrawing within 5 years but if you start now, it's a great way to create an emergency fund. As it grows by adding 10k/year, it can become your car fund and later a part of a home down payment.
After 10 years, if you haven't tapped into it, it'll be 100k of inflation protected spending power. If 100k isn't significant (a criticism I've seen here), then you're probably worrying about tax optimization strategies rather than establishing an emergency fund.
Good Luck!
You may not be able to withdrawal for the first year, and there's a penalty for withdrawing within 5 years but if you start now, it's a great way to create an emergency fund. As it grows by adding 10k/year, it can become your car fund and later a part of a home down payment.
After 10 years, if you haven't tapped into it, it'll be 100k of inflation protected spending power. If 100k isn't significant (a criticism I've seen here), then you're probably worrying about tax optimization strategies rather than establishing an emergency fund.
Good Luck!
Statistics: Posted by AspirationalBH — Sun Jun 02, 2024 8:05 pm — Replies 9 — Views 876
