Hi all - recently heard about I bonds and would appreciate it if y’all could poke holes in this strategy.
Currently have 25k emergency savings and 25k in the market (mostly blue chips). I’m thinking of purchasing 20k of I bonds with our emergency account and using that as my (and wife’s) emergency savings account. I assume they are similar to stocks where when you sell it takes several days to clear and funds transfer to your account. For that reason I would build the emergency fund up to 10k and sell stocks if an emergency came up in the first year before I could access the bonds. I don’t think I would keep more than whatever my emergency savings amount is in bonds because historically they earn less than VTO but am in favor because the ~3-7% return is much greater than a savings account.
To me this seems like a no brainer but would appreciate any criticism of this plan.
Submitted December 28, 2021 at 08:03AM by Pretend_Kangaroo_694 https://ift.tt/3JnVeav
