We want to remind you about an investment option that takes advantage of higher inflation.
Series I Savings Bonds have low risk and the return is currently 6.89%. These bonds are limited to $10,000 per person (based on SSN) and they are only available directly from the Treasury. Brixton Capital Wealth Advisors cannot purchase them for you, but it only takes minutes to set up an account at treasurydirect.gov.
Series I bonds are 30-year bonds with a variable interest rate linked to the consumer price index published by the Bureau of Labor Statistics. They pay interest based on a combination of a Fixed Rate and current Inflation Rates. The Fixed rate is currently 0.4% and is locked in at the time of purchase for the life of the bond. But the Inflation Rate resets every 6 months and is equal to the annualized percentage change in CPI-U over the previous 6 months.
Why would we address investment optons outside of Brixton Capital Wealth Advisors? Because we are on your side and want to make you aware of potentially beneficial investment opportunities.
There are terms to be aware of, like a 3-month interest penalty if the bonds are redeemed before 5 years, (taken out of the most recent 3 months of interest). Interest is tax-deferred until you redeem the bond, or it reaches maturity (30 years). Interest will be reported as ordinary income on 1099- INT the year it is redeemed/matures, unless used for higher education. For details on rates and terms, see this page: Series I Savings Bonds Rates & Terms: Calculating Interest Rates.
After the 1-year minimum holding period, the money is as liquid as a savings account. Partial redemption can be taken in any dollar amount of a bond. The rate of return quoted are for illustrative purposes only. Your actual return may very different than that shown in this article. Past Performance is no guarantee of future performance. All investments carry risk. You should consult with your financial advisor and or tax advisor to determine if this product is suitable for you based upon your specific goals and objectives.