Let’s talk about money. How is your money aging? Given that the financial forecast in this country at this time is on the down stroke, this is a good time to put some extra attention on helping our money to age awesomely. Whether you are retired or anxiously awaiting that glorious day when you can tell your employer, “Thank you, but no thank you,” you want your money to surpass you in the marathon.

For many women, one of their biggest fears is outliving their money. It’s easy to see why this is such a concern when the stock market is so volatile, the crypto market collapsed, and the average interest paid in a savings account is 0.6%. Need I mention that the annual inflation rate in the US accelerated to 9.1% in June of 2022, the highest since November of 1981.

Let me be clear, I am not sharing this information to be Debbie Downer, but rather to remind you that some of the best money wins have been in depressed financial times. And I have a little tip that may benefit you if you’re trying to save money. I’m no financial planner, but I can recognize a deal when I see one.

If you have been trying to figure out where to save your money that can yield more than 1% interest or less, I highly recommend you consider Series I Savings Bonds. Here are the…

Pros:

• The I-Bond’s variable interest rate is based on inflation, which means the asset currently has a high yield. The current rate on the I-Bond is 9.62% through October 2022. (The variable rate is set by the government every May and November.)
• Backed by the U.S. government, the bond doesn’t lose value.
• If you are saving for a goal that’s more than a year out and would otherwise be saving in a checking or savings account, I-Bonds could offer you a better risk-adjusted return on your money.
• You can defer the tax on the interest received on an I-Bond until you sell it, which is not the case with standard bonds.
• You can invest as little as $25 and as much as $10,000 per year.

Cons:

• You can’t cash in the bond for one year, and if you cash one in before five years, you’ll lose the previous three months of interest.
• Of course, there are taxes. While exempt from state taxes, the money you earn on I-Bonds is taxed as ordinary interest income at a Federal level.

Good to note:

• Be aware that I-Bonds interest adjusts every six months, so if inflation gets back under control, the current rate of return you get on your I-Bonds will shrink, however, it can’t be as bad as traditional savings yields.

Check it out for yourself at www.treasurydirect.gov

Keep in mind thatAwesome Aging addresses all of you – the health of your body, mind, and finances.