If you’ve seen your retirement account dwindle and the price of everything soar this year (of course you have), you might be interested in finding a method of investment that will weather this current economic storm. As it turns out, you’re not alone. Folks everywhere are clamoring to sink their money into the I bond market, which is designed to be impervious to inflation and recessions.
What is an I bond?
While the market has seen a meteoric rise in attention due to the present situation, many people are completely unfamiliar with what I bonds actually are. If you’re one of the uninitiated, here’s a brief rundown of the concept:
- They are a type of savings bond with a relatively high yield and low risk of loss.
- Interest rates are tied to the cost of living to diminish the impact of inflation.
- I bonds aren’t taxed at the state and local level, so they’re a great option for residents of high-tax jurisdictions.
- There’s a $10,000 direct annual cap and you can buy another $5,000 with tax refunds.
Where can you get them?
Although investing in I bonds is a fairly straightforward process using the Treasury Direct website, buying these assets is easier said than done these days. Since so many people are eager to find an inflation-proof solution, the increased traffic actually knocked the site offline recently.
Visitors were greeted with the following inauspicious message: “We cannot guarantee that your bond purchase will be completed before this deadline if your account or purchase requires additional customer support for issues such as identity verification.”
For those of you out there who have been trying to get your hands on some I bonds lately, keep it up. It might be the safest bet in an increasingly uncertain economy.