This week is the last week to lock in a record high rate for an I bond. Currently the rate is sitting at 9.62% but will drop to 6.48% after October 28th. The change in rate is based on the Consumer Price Index (CPI) which showed a drop from March to September. The Treasury Department allows individuals to purchase up to $10,000 worth of I bonds per calendar year. If you would like to purchase an I bond, you can do so by visiting TreasuryDirect.gov. If you already own an I bond, you don’t need to do anything. Your rate will adjust automatically every 6 months, as the rates adjust. These investments are only taxed at the federal level and are excluded from state and local taxes which can make them more attractive for many investors.
I bonds have been one of the few bright spots in an otherwise negative investment world for 2022. They are built specifically for times like these when inflation is running high.
Reach out if you have any questions or need guidance on how to purchase an I Bond.
Steven C. Dengler, CFP®
Financial Advisor / Director of Planning
Mosaic Asset Partners, LLC
1122 Kenilworth Drive, Suite 310
Towson, MD 21204
410.821.0089 fax 410.821.5993
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Mosaic Asset Partners, LLC is not affiliated with Kestra IS or Kestra AS. Disclosures. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.