Charles Forelle
speaker
205 appearances
2 recordings
1 series
first heard Jan 2022
last heard Oct 2022
Charles Forelle’s voice in public audio — every appearance, attributed to the second.
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Appearances
You have to hold it for at least 12 months.
Between one year and five years, you can redeem the bond at your option, and the Treasury will take a three-month interest penalty.
After five years, you can redeem it at any point.
This is actually a really interesting and valuable feature of these bonds.
You have options with them.
If you had bought a 30-year bond, you're stuck with it for 30 years.
You could try to sell it to somebody in the secondary market.
But if interest rates have changed, that person may not pay you the full amount that you paid for the bond.
And the I bonds have this great feature, which is that as long as you're willing to hold it for at least a year and take a small penalty between year one and year five, you can always redeem them.
And that is good for a bunch of reasons.
One reason is that it's good is that you can use it as a kind of emergency savings vehicle.
People talk a lot about what should you do with an emergency fund.
Actually, a bunch of I-bonds is a pretty good emergency fund.
Now, of course, you have to sort of pre-fund it a year in advance.
But if you buy I-bonds regularly and build up an emergency fund, you will have a bunch of I-bonds after one year that are available to be redeemed.
It's completely 100% safe.
It's a government security, and you can redeem them whenever you want after that first year.
Another nice benefit of I-bonds is that you can defer paying taxes on them until you cash them out.
So you don't need to pay taxes on the interest every year.
It's a pleasure.
Showing 61–80 of 205 · page 4 of 11
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