Why no mention of laddering your emergency fund into I bonds over time? Been doing this for years. Started out with $500 every 6 months until my entire emergency fund was available to me. A 3 month interest penalty is nothing, especially considering the vastly higher rate being paid at the moment compared with savings accounts.
I-bonds should be considered step 7A of the FOO!!!
Given 0% real returns, its guaranteed that your future self will retain $10k in spending power. The fact that Treasury Direct is so clunky and hard to view means that the account is likely to be out of sight and mind. Therefore I-bonds are great for the use cases of an emergency account, a dedicated rebalancing pool, or retirement savings.
Actually, the limit is $10k per registration. One SSN can have multiple accounts. My wife and I each bought $10k last year and this on our respective SSNs. We also bought $10k last year and this in name of our family trust under my SSN. Treasury Direct is happy with that. If you own a business, your ssn or not, could be another registration.
Thanks Mike. Very true in theory, I’m just exploring new ways to stock cash. Only invest the money I am willing to lose in crypto. So far the earn function on stable coin works great for 8-10% APY compared to 0.5% online saving, as I mentioned this is not emergency fund, I saved it in non penalty CD. Unlike the scam comments in YouTube, I’m just starting to learn into crypto basic and defi concept a few months ago, I encourage people absolute against crypto to give it a real look.
Why no mention of laddering your emergency fund into I bonds over time? Been doing this for years. Started out with $500 every 6 months until my entire emergency fund was available to me. A 3 month interest penalty is nothing, especially considering the vastly higher rate being paid at the moment compared with savings accounts.
I-bonds should be considered step 7A of the FOO!!!
Given 0% real returns, its guaranteed that your future self will retain $10k in spending power. The fact that Treasury Direct is so clunky and hard to view means that the account is likely to be out of sight and mind. Therefore I-bonds are great for the use cases of an emergency account, a dedicated rebalancing pool, or retirement savings.
Actually, the limit is $10k per registration. One SSN can have multiple accounts. My wife and I each bought $10k last year and this on our respective SSNs. We also bought $10k last year and this in name of our family trust under my SSN. Treasury Direct is happy with that. If you own a business, your ssn or not, could be another registration.
This article is very similar to Money's January 2022 digital cover, which features 22 ways to make 2022 the best money year of your life
No, high yield crypto stable coin staking and earning interest is a much better bet for short term needed flexible cash reserve (not emergency fund).
Crypto stable coins are neither regulated nor FDIC ensured so there's no guarantee you will get your principle back. Not a smart substitute for cash
Thanks Mike. Very true in theory, I’m just exploring new ways to stock cash. Only invest the money I am willing to lose in crypto. So far the earn function on stable coin works great for 8-10% APY compared to 0.5% online saving, as I mentioned this is not emergency fund, I saved it in non penalty CD. Unlike the scam comments in YouTube, I’m just starting to learn into crypto basic and defi concept a few months ago, I encourage people absolute against crypto to give it a real look.