Buying I-Bonds Online

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

Should You Buy I-Bonds Now?

It’s decision time again for those considering the purchase of I-Bonds. The interest rates will adjust again on May 1. (Here are some reasons why you should consider owning I Bonds for retirement.) Let’s take a brief look at the purchase options. Read more

Income Tax Refunds and Your Retirement Plan

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

Your Tax Refund Introduction to I Bonds

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

Risk Free Yield with I-Bonds and Other Boomer and Retirement Readings

I am a fan of I-Bonds and use them in our retirement emergency fund and-with TIPS-as part of our plan for guaranteed retirement income. Now a “Boglehead” financial expert has written a series for Forbes, presenting his arguments for using I-Bonds to provide risk-free yield. Read more

Creating a Plan for Guaranteed Retirement Income

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.

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Bonds and Your Retirement Portfolio

Are bonds part of your retirement portfolio? If not, they probably should be. The question is how to properly use bonds in your portfolio.

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

Inflation and Retirement Investing

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

Building a Retirement Emergency Fund

Let me start by saying that a retirement emergency fund is different from the “cash flow” emergency fund that Dave Ramsey, Suze Orman, and many others have been counseling us all to have.

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

Why I Like I-Bonds in My Retirement Portfolio

I am a strong believer in the role that I Savings Bonds (I-Bonds for short) can play in the portfolio of the average retirement investor.

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.
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