{"id":9983,"date":"2024-01-15T19:09:26","date_gmt":"2024-01-15T23:09:26","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=9983"},"modified":"2024-01-15T19:11:06","modified_gmt":"2024-01-15T23:11:06","slug":"i-bonds-were-paying-nearly-10-in-2022-no-more-time-to-sell","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=9983","title":{"rendered":"I bonds were paying nearly 10% in 2022. No more. Time to sell"},"content":{"rendered":"
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The jury is in.<\/span><\/div>\n<\/div>\n
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It\u2019s a good time to sell those I bonds you bought when they became fashionable two years ago amid blisteringly hot inflation, which pumped up the annualized rate to 7.12% in November 2021 and a record 9.62% in May 2022.<\/p>\n

The lofty annual rate has since settled as inflation has been tapped down, and the I bonds scooped up during those heady days are paying about a third of those beguiling rates, or 3.97%.<\/p>\n

Read on Yahoo Finance<\/a><\/strong><\/p>\n

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Here\u2019s why: The I bond rate is made up of a fixed rate, which applies for the 30-year life of the bond, and a semiannual variable inflation rate calculated from the six-month change in the Consumer Price Index.<\/a><\/p>\n

The annualized yield for the\u00a0latest I bonds<\/a>\u00a0is 5.27% \u2014 a hefty fixed rate of 1.30%, plus the 3.97% variable rate, which will reset again in May.<\/p>\n

By contrast, the I bond fixed rate in November 2021 and May 2022 \u2014 when inflation was soaring \u2014 was 0%. That means those older bonds are now earning the current variable rate, period.<\/p>\n

The takeaway? Redeem and reinvest.<\/p>\n

“I personally sold my own and am advising clients to do the same,” Danielle Howard, a certified financial planner with\u00a0Wealth By Design<\/a>\u00a0in Glenwood Springs, Colo., told Yahoo Finance. “Depending on individual cash flow considerations, we are looking at money markets, laddered CD’s, and corporate bond bullets.”<\/p>\n

Read more: Learn more about\u00a0<\/em>high-yield savings<\/em><\/a>,\u00a0<\/em>money market<\/em><\/a>, and\u00a0<\/em>CD accounts<\/em><\/a>.<\/em><\/p>\n