Inflation remains very high and the Federal Reserve's monetary policy tightening is creating significant downward pressure on equity markets. However, we wanted you to know about a unique opportunity to buy a bond issued by the US Government with a relatively good return.
I-Bonds are protected from inflation, and such are paying 9.62% interest rate currently.
Because of the uniqueness of this Bond, we do not have access to purchase it directly through Charles Schwab and it would not be 'managed' by Blue Anchor. However, we still think it could be good for some moderate to conservative investors with the correct time horizon.
Here are some facts to know:
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Current interest rate is 9.62% for bonds issued May-October 2022
- You must hold the bonds for at least one year. If you hold the bonds for less than 5 years, the last three months of interest will be surrendered.
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Maximum purchase is $10,000/year/person
- You can exclude dividend earnings from gross income tax if used for higher education
- Consider gifting to a loved one
As always, please give us a call to discuss whether this might be a good option for your investment goals and time horizons.
