If it was me right now I'd be purchasing Treasury Bills. They're paying over 4.6% interest for 6-month bills. If you buy them through a broker like Fidelity, Schwabb, etc. you can sell them early if you need the cash.
The way it works is you buy them at a discount to face value. So at 4.6% even you could buy about $204,600 worth of 6-month Treasury Bills for $200,000. At the end of 6 months they deposit $204,600 in your account. Rinse, lather, repeat. You can buy them as short as 4-weeks or as long as 1-year.
If it was me right now I'd be purchasing Treasury Bills. They're paying over 4.6% interest for 6-month bills. If you buy them through a broker like Fidelity, Schwabb, etc. you can sell them early if you need the cash.
The way it works is you buy them at a discount to face value. So at 4.6% even you could buy about $204,600 worth of 6-month Treasury Bills for $200,000. At the end of 6 months they deposit $204,600 in your account. Rinse, lather, repeat. You can buy them as short as 4-weeks or as long as 1-year.
I-bonds are better to max out first.
I-bonds are better to max out first.
Yes, but they have some drawbacks. I have $30k in I-bonds this year because I have some in my kids names.
- You cannot redeem them for the first year no matter what.
- When you redeem them before 5 years you pay a penalty equal to the last 3 months' interest
- You can only buy $10,000 a year ($15k if you use your tax refund to buy $5,000 worth).
Yes, but they have some drawbacks. I have $30k in I-bonds this year because I have some in my kids names.
1. You cannot redeem them for the first year no matter what.
2. When you redeem them before 5 years you pay a penalty equal to the last 3 months' interest
3. You can only buy $10,000 a year ($15k if you use your tax refund to buy $5,000 worth).
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