Onyx Wealth Management LLC

Been getting a lot of questions about I-Bonds recently.

If you have "excess" savings lying around (think emergency funds over a few thousand dollars or setting aside cash for a major purchase in the next few years), there is nothing wrong with adding I-Bonds to your balance sheet.

Do keep in mind, however, that you will need to hold the bond for at least one year before you will accrue any interest and five years if you want to avoid forfeiting 3-months worth of interest upon redemption. Also, keep in mind that you can only purchase $10,000 of these bonds each year, so they are not going to be very useful for anyone seeking to allocate a significant percentage of a pre-existing investment portfolio to them.

Taxation of the interest is perhaps the most idiosyncratic aspect of these bonds. The IRS actually gives you a CHOICE of whether to report the interest every year or to wait until you redeem the bond! Convoluted tax planning scenarios aside, just the convenience of avoiding taxation of the interest until redemption makes these bonds a relatively hassle-free way to maintain your savings.

Or as I was told early on in my career - if the government is putting a cap on how much you can invest, not to mention giving you a CHOICE on how you will be taxed - it's probably a deal worth looking into!

Individual - Series I Savings Bonds We're pleased to hear from our customers regarding their satisfaction with our website. Although your browser settings don't allow you to view the website survey we're conducting, please e-mail your comments.

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