I just completed an online I-Bond purchase. The transaction will actually close tomorrow (April 30), giving us the benefit of a full month of interest dating from April 1. (That is one of the buyer-friendly peculiarities of purchasing I-Bonds using the Treasury Direct online buying system.) If you have never bought an I-Bond using the Treasury Direct system, read the rest of this post for a quick review. [Read more…]
Federal income tax refunds present two problems for the retirement saver. That’s right, problems. Let me explain, in just a few words. [Read more…]
Regular readers know that I am a fan of I-Bonds and TIPS for retirement savings. If you are at all concerned about future inflation (and you should be), you should own TIPS and/or I-Bonds as part of a diversified portfolio. This year, the federal government is making it easy for you to buy I-Bonds, also known as Series I U.S. Savings Bonds. [Read more…]
Regular readers of this blog may recall that I have been studying the work of Zvi Bodie, a professor of finance at Boston University. (I mentioned Prof. Bodie in my post on Retirement Income and the Myth of Equity Risk.) After much consideration, I’ve decided to adopt Prof. Bodie’s concepts into our retirement income plan. More particularly, I have created a plan to provide guaranteed retirement income. I will explain.
If you are closing in on retirement, now is a good time to learn more about the proper place for bonds in your nest egg, particularly on the income generating side. [Read more…]
As baby boomers in the home stretch towards retirement, we have two major concerns about our retirement investing. The first is recovering from the severe damage our retirement nest eggs suffered from the recession and market downturn that began in 2008. The second concern is preparing for the threat of inflation that is likely to descend on our economy because of massive government budget deficits. [Read more…]
Every book and article on basic personal finance cautions baby boomers and other working adults to have an emergency fund equal to three months to a year of basic living expenses. [Read more…]
I-Bonds can actually help in two important ways. First, they provide a measure of inflation protection. Second, they can form all or part of what I call the “ride out the market storm” fund that all retirees should have. This stable value fund should provide rock solid stability during turbulent or negative market conditions so that a retiree does not have to sell equities or stock mutual funds during a down market.