In a year that’s been highlighted by uncertainty and volatility, iBonds have risen in popularity thanks to a guaranteed interest rate that’s been on the rise alongside inflation. Being able to generate a return of over 9% on your cash is pretty appealing, but should iBonds be a part of your portfolio right now?
Laura Stover, RFC® and Michael Wallin, CFP® will break it all down on this episode and help you understand all of the important details about iBonds, which we didn’t hear much about in 2021 because the stock market was in a strong position. We understand that people are searching for safety and guarantees right now, and iBonds hit a lot of those comfort words that clients talk about.
With a minimum investment of $25 and a maximum of $10,000 each year, it’s a tool that all investors can utilize. But should you? We’ll take you through the fine print, help you understand how they’re used, and then take you through the factors we consider when determining where they fit into a client’s financial plan.
Redefining Wealth® Custom Blueprint Income Plan: https://redefiningwealth.info/schedule/
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Timestamps (show notes):
5:39 – Specifics on buying iBonds and what they provide
7:43 – Where do iBonds fit into a portfolio?
15:11 – What clients are surprised to learn
18:34 – Cashing out the iBonds
21:40 – Interest rate vs income planning
23:52 – Sequence of return risk