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I-Bonds: When 4.3% Is Better Than 9.6% – Episode 138

For the past year or so, I-Bonds have come into favor among people who are looking for a higher rate of return on Treasuries. A little over a year ago, they were paying an annualized 9.6 percent rate of return. Today, they’re paying right around 4.3 percent. It would seem, then, that you’d have been better off buying them at that higher rate.

But maybe not – because of the way I-Bonds pay their interest, the current “lower” rate may actually be more attractive today. How is that possible? Learn all about it from podcast host Johnny Dean and “Professor” Rick Plum, CFP® on this week’s episode of Managing Your Financial Future!

Important Information:

You should always seek counsel of the appropriate advisor prior to making any investment decision. All investments are subject to risk including the loss of principal. This material was gathered from sources believed to be reliable, however, its accuracy cannot be guaranteed.

This material should not be considered a solicitation of an offer to sell/buy any specific security or offering. Investors should consult a financial professional to determine whether risks associated with an investment in the shares are compatible with their investment objectives.

It is important to keep in mind that investments in fixed income products are subject to liquidity risk, interest rate risk, financial risk, inflation risk and special tax liabilities. Interest may be subject to the alternative minimum tax. Treasury securities are backed by full faith and credit of the U. S. Government but are subject to inflation risk.

Rick Plum is a registered representative with, and securities and advisory services offered through LPL Financial, a registered investment advisor and member FINRA/SIPC. The investment professionals are affiliated with LPL Financial and are conducting business using the name Lucia Capital Group, a separate entity from LPL Financial.

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