It's obvious from the many times you extolled the virtues of I bonds that you are a major fan of them.jhogue wrote: ↑Fri Jun 08, 2018 11:41 amTax simplification: yet another reason to buy I bonds!
With I bonds, you get 30 years of tax deferral outside the increasing complications of an IRA. And that means no RMDs after age 70 ½.
Besides that, in a rising interest rate environment a ladder of I bonds is the best guaranteed protection against inflation. Currently, I-bonds are yielding 2.52%, with a fixed income component (real yield) of +0.3%. Should the Fed raise interests again, I bonds’ variable rate will reset twice per year.
I do like STTs in taxable, and Treasury zeroes in tax deferred accounts, but only after I fill my quota of I bonds.
However, in the case of either a flat interest rate environment or a declining one what are the downsides to holding I bonds rather than their alternatives?
Also, it seems due to the limitations on the $$$$ asmount a single person can purchase in a year any actual achieved advantages from holding I bonds would be fairly tiny in a portfolio of any size?