I Bonds: How to Get an Almost Guaranteed 7.12% Return

I bonds have now been thrown into the spotlight after being in the shadows for many years.

And that is because they are now returning 7.12%!!

Yeah, seriously.

To put that in perspective, the G fund only earned about 1.3% in 2021.

The reason I bonds are returning so much right now is because they are meant to track inflation and inflation was crazy in 2021!

But before investing in them, you are going to want to know all the details.

Here are the main pros and cons:

Pros:

They are returning 7.12% right now and other safe investments don’t get even close to that.
Really Safe

Cons:

The rate does adjust every 6 months so if inflation goes down then so could the rate of return (but lower inflation is a good thing).
You can buy $10,000 per person per year and you have to buy it from treasurydirect.gov which can make it a pain to buy and redeem.
You can’t redeem within the first year and if you sell within 5 years then you lose 3 months worth of interest

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Dallen J. Haws, CFP®, MBA

CEO and Lead Planner

Dallen is one of the most sought after federal retirement experts in the country.

He routinely speaks/consults with thousands of federal employees about their benefits and retirement. He is a self-professed nerd about helping those under FERS to maximize benefits, reduce taxes, and retire confident.

He is a regular contributor to Govexec and FedSmith and many other federal employee new sites.

When he is not perfecting retirement plans, you can find him training for triathlons or going on adventures with his family.

Common Questions

What do you do?

We are the go-to financial planning firm/financial advisors for FERS federal employees all around the country (and the world). We help our clients maximize their benefits, reduce taxes, and retire confident.

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We serve FERS federal employees everyday, all day, and twice on Sunday. We eat and breath federal benefits and are proud to be the go-to financial planners for FERS federal employees all around the world.

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What areas do you help your clients with?

Great question. Here are the 5 areas that we help our clients with:

-Retirement Planning: Planning for the day when work is optional

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-Estate Planning: Planning for those you leave behind

One thing we found that clients really appreciate is that no other financial advisor is able to help them with their federal benefits as well as the rest of their financial lives like we can.

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