Let's Talk Series I BondsJul 17, 2022
There are four steps to investing in the stock market.
- Choose your brokerage firm
- Choose your investment account
- Set-up your contributions
- Choose your assets
If you want to buy Series I bonds, the steps look a little different but before I tell you how to buy them, let's talk about why you would buy them.
Series I Bonds, are savings bonds that are 100% backed by the U.S. government and are designed to protect your money from inflation. This security earns interest based on both a fixed rate and a rate that is set twice a year based on inflation. Right now with inflation, being high you can earn 9.62% back from Series I bonds.
Sounds good, right? Here are some things to keep in mind:
- When you buy Series I bonds, you can not sell them for one year. This means your Emergency Fund should remain in your high-yield savings account.
- The maximum purchase of digital Series I bonds is $10,000 per person/social security number.
- Unlike stocks, Series I bonds can never lose value since the interest rate can not go below 0%.
- Series I Bonds are a great choice for short-term savings goals like a house down payment for a home or a car purchase not so much for retirement.
- You do not have to pay state or local taxes on the interest earned from your Series I Bonds when you cash them out, but you WILL have to pay federal taxes.
So now let's talk about HOW to buy Series I Bonds:
- Go to TreasuryDirect.gov
- Open an account (watch this video)
- Log-in to your Account
- Click "Buy Direct" from the top blue bar
- Go to "Saving Bonds" and select Series I
- Decide a purchase amount and purchase frequency
- Review your purchase
- Celebrate... you just purchased Series I Bonds
If you got questions, feel free to reply back to this email or send me a DM on Instagram. The more of us talking dinero the better!
Todo con tiempo,
Announcements + Reminders
- I want to work 1:1 with YOU to create your financial plan to retire early. Apply here!
- On Wednesday, July 20th at 3pm PST/6pm EST I will be going live on Instagram with my client Tania Mendes to discuss battling imposter syndrome in the workplace, perfectionism, & taking the leap into a new career. I will also be getting all the details on how you can work with Tania in her upcoming workshop and group coaching program. I hope you will join us live or watch the replay.
- Watch the replay of my IG Live discussing what is REALLY getting in the way of your wealth building journey here. I know I was supposed to answer the top five dinero questions I get but after journaling on my rooftop, I felt compelled to share different information.
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