Are I Bonds A Good Investment Right Now?
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As an AI language model, I cannot give financial advice or an opinion. Hence, below is a general article about investing in I bonds:
I Bonds, also known as Series I Savings Bonds, are a type of government bond issued by the United States Treasury Department. They are designed to offer protection against inflation while providing a safe and secure investment option for individuals.
The interest rate on an I bond consists of two components – a fixed rate and an inflation-adjusted rate that is adjusted every six months. The fixed rate remains constant over the life of the bond while the inflation-adjusted rate varies depending on changes in the Consumer Price Index.
Investors who are considering investing in I Bonds may be wondering if now is a good time. While there is no one definitive answer, there are a few factors that can help investors make an informed decision.
One significant advantage of I Bonds is that they offer protection against inflation. These bonds are particularly attractive to investors who are concerned about inflation because they are designed in such a way that their interest rate is adjusted based on inflation rates. Therefore, I Bonds could be particularly useful for long-term investors who want to protect their assets in case of inflation.
Moreover, I Bonds offer several additional benefits, including tax-deferred interest, are exempt from state and local taxes, and are backed by the full faith and credit of the United States government.
However, I Bonds have several limitations. One of the major downsides of investing in I Bonds is that they are illiquid, meaning that they cannot be easily sold or traded. Investors who want access to their funds may have to wait up to one year after purchasing an I bond.
The interest rate on I Bonds is another factor that investors should consider. The fixed rate of I Bonds is currently at 0.00%, while the inflation-adjusted rate varies based on changes in the Consumer Price Index. Therefore, the interest rate on I Bonds may not be as competitive or attractive as other investment options.
In conclusion, whether or not I Bonds are a good investment right now ultimately depends on the investor’s individual circumstances, goals, and risk tolerance. Investors who are looking for safe and secure investment options may find I Bonds attractive, particularly those concerned about inflation, and who intend to hold their investment for the long term. However, investors who are concerned about liquidity, or who are looking for higher returns may want to consider other investment options. As always, it’s important to do your own research and to seek professional financial advice before making any investment decisions.
Definitely many people's are better than Ramsey. He's famous for what he does and is an influencer. Popular people. Like Lauren Molk / Helen James / Sheryl Nicomedes and other investor's out there. Even YouTube, here people are testify about them.
Dave stocks are down 20% as a whole !
Savings account 4.85% Alliant Bank
Dave is a salesmen to get you to believe he knows it all, he is an entertainer,,
12%!!!!!!
I mean…maybe if your fund/ETF if QQQ….
So basically, he's paid to have you keep your money in stocks so his friends can cash out. The deeeep bait and switch. Beware sheeple
A shill for mutual fund providers obviously
i dont know if i would trust the govt
He is not thinking about ZERO counter party risk
On what planet can you make "a lot more than 9.62%" in mutual funds? Especially when you subtract out all the fees. I noticed he said "a good mutual fund." If he is defining a "good" fund as one that, in hindsight, returns a lot more than 9.62% then yeah but unfortunately you can't retroactively invest your money.
Came to this video just to know if it's "eye"-bonds or "one"-bonds, thanks haha
Dave, your wrong. It (the interest rate) could not be "anything". The rate is not pulled out of thin air, and it's not a myth.
So, Dave what do you think about a high yield saving account that's paying 3.30 percent with Capital One Bank???
I bank with Chase and my emergency fund is only earning 0.15
I'm goin all in on puts for cramers picks! Can't lose!
Dave also doesn’t talk about the taxes. You only pay federal taxes on ibonds. Did Dave read it???
Still waiting for Dave to disclose his magic 12% fund
Not many of the very wealthy and educated people listen to Dave Ramsey
I love how everyone hates Dave lol
2:41 is worth the video lol
Mutual funds with a return “well north” of 12%???? I’d like to see that
12 % on a mutual fund except this year which wiped most of your gains for a whole year. Also, inflation is going to be here for a long time!
ok but with all the downsides you noted they're still a better place to keep my money than my savings account??? I only have emergency funds at this point looking for somewhere to protect them from inflation. Seems like a good choice after the video so it must be the right decision.
No guarantee you get 12 percent on a mutual fund the I bond has no risk I think Dave is wrong on this one
If you want to get out of debt, follow Dave. For investing, look somewhere else
Hey Dave what’s the penalty for early withdrawal on a CD? Also please show me a CD rate that’s better than an Ibond rate. IMO I believe it’s a great place for older Americans to put money in as part of a diversified savings. Especially if they want a near zero place to put their money. It will combat inflation and give them a fixed interest rate. Plus Dave they can only buy 10k a year. It’s not like they are investing 500k in one investment. You paint with a broadbrush Dave. Everyone is in a different situation. This would work well for my parents that don’t like risk and are in their 70’s. Probably not for me being that I am in my 40’s.
I don't understand why Mr. Ramsey seems to assume that his viewers/ listeners haven't done the proper research on their own to make an educated decision on whether to buy I-Bonds. It feeds into the criticism that I have heard from some that his concepts are geared toward people who are far from savvy when it comes to their finances.
Dave is great when it comes to getting out of debt. When it comes to investing not so much.
Finally, someone who told the truth about I Bonds.
Remember, folks, Dave Ramsey is an entertainer. If you can outlast a year, an inflation-protected place is an excellent place to put an emergency fund.
Also I-bonds limited to $10k per person. That’s chicken scratch to the big D.
Perhaps one of the worst money advice dude in the world.
I was under the impression it was fixed 9.6% lol
Makes sense why there is better investments that I bonds at the moment
Mutual funds. Sounds like Dave is still stuck in the 90's
I Bonds have been horrible investments since 2003. They've only returned about 2- 3% interest rate. The EE bonds purchased in 2003 have performed better than the I bonds with a 4.16% interest rate for 17 years in which they were guaranteed to double in value.