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Any real risk in dumping 10k in these and forgetting about it for a decade. Have these ever lost money ? 7% yield is outrageously good assuming you can't lose
by 999900000999 5y ago
Any real risk in dumping 10k in these and forgetting about it for a decade.
Have these ever lost money ?
7% yield is outrageously good assuming you can't lose money. Then again US currency might be worthless if they default on these.
- arthurcolle 5y agoThe bonds can go down in value lol EDIT: Never mind, these are savings bonds and can't be traded
- staticcaucasian 5y agoBecause the fixed rate is based on treasurys and the inflation rate is based on inflation, they're essentially locked-in at zero truly real return. Which is not a bad 'floor' position for your portfolio!
- sacred_numbers 5y agoThe only risk is losing out on greater gains from investing in a higher yield asset. Keep in mind that the yield on these will probably drop in 6 months, since the dividend is adjusted semiannually. If inflation keeps going the dividend will stay high, but other assets will also appreciate due to inflation.
- 999900000999 5y agoCurrently I'm maxing out my 401k, this seems like a good plan once I hit the 20k annual max.
- mhb 5y agoNo risk other than situations in which there will be much bigger problems. They can't lose money.
- loeg 5y agoThe 7% is adjusted every six months to match inflation. The real inflation-adjusted yield on these is 0.0%. It’s better than cash, but has some short term redemption restrictions.
- ryandrake 5y agoI have TreasuryDirect set up to purchase $X in I-bonds quarterly. It's been set and forget. I consider them the "medium term" component of my emergency fund, rather than an investment I expect significant yield from. They generally perform better than CDs, worse than corporate bonds, and are inflation protected. They're not too bad tax-wise either. The interest is subject to Federal income tax but not state or local tax. All of the above have their place in a well-diversified savings strategy.