Hello everyone,
I have been lurking about for a few weeks. Have a weird long-term plan for an emergency fund using I-bonds.
What I know:
I-bonds purchases are capped at 10k/year.
I-bonds must be held for a 1 year minimum.
If redeeming before the 5 years you forfeit the last 3 months of interest as penalty.
I live an abnormal lifestyle and in the future if I make it to FIRE or move to per diem status (I'm still very far away), keeping about 50k-60K as an emergency fund would give me plenty of room.
This might be a bit excessive, the plan would start out with me having 20K in my immediate emergency fund and every year, for 5 years buy I-bonds and ladder in essentially.
So I would keep 10K in a HYSA and 50K staggering in I-bonds. Not sure if this plan is overkill to avoid the 3 months of lost interest. If I ever needed more than the 10K in my HYSA I would take what was needed from the I-bond.
If doing so, is it like a share? If I only needed 5k would I have to sell off the whole 10K I-bond or could I only redeem the 5K?
The limit to holding an I-bond is 30 years, right?
Once you hit retirement, would you still keep an emergency fund? I feel like this is a silly question.
I am just getting serious about my finances and there has been so much information out there. I appreciate this space.
Submitted September 09, 2022 at 01:01AM by TrueCR https://ift.tt/TRBKn0F
