I bonds Explained

With the market volatility we've experienced in 2022, many folks are looking at different types of investment vehicles.  One that Richard Oring's clients have been asking about lately is the I Bond.  Today, Rich explains what they are and more.

I bonds are securities issued by the US Treasury, that are 20 year notes and continue paying interest for an additional 10 years, for 30 total.   They can be purchased electronically or by paper. Rich explains the differences, and the limits on what you can buy.

The interest rate on I bonds is comprised of a Fixed Rate plus an Inflation Rate - and we go through how these numbers add up for you, using a specific example for illustration.

These I Bonds are exempt from state and local taxes, and the interest CAN be used to help pay for qualified higher education expenses, with restrictions. Rich explains those.

As with all financial decisions, your situation is unique.  Before making an investment, talk to your financial advisor, and/or CPA.  You can also research this topic more at https://treasurydirect.gov/

You can always reach out to Richard Oring and his team at New Century Financial Group.  You can schedule an appointment from their website: https://ncfg.com/

Or you can reach out directly to Rich:  [email protected]
Or call him at  (609) 924-2049, extension 126.