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Investment Recommendation: I Bonds and T-Bills

One of the best investments is Treasury Direct I Bonds. I Bonds' interest rates are determined by the rate of inflation.

I Bonds can be purchased directly from the Treasury Department without a middle man, brokerage, or bank. There is no risk of losing your principle investment. They are redeemable after 12 months with three months interest penalty. No penalty after 5 years. The maturity is 30 years. Tax reporting of interest can be deferred until redemption or final maturity. If you use the money for qualified higher education expenses, you may not have to pay tax on the earnings.

The bulk of 2023 new investments was in 4-week Treasury Bills. In 2024, the recommendation for younger investors shifted to a 10% holding in 2-year Treasury Notes. Those in or close to retirement age are better suited to remain fully invested in 4-week Treasury Bills.

Savings / Asset Allocation (< 50 years old)
66% Real Estate *
20% Stocks
10% Treasury Bills
2% Treasury I Bonds
1% Precious Metals / Crypto

Savings / Asset Allocation (> 50 years old)
66% Real Estate *
20% Treasury Bills
10% Stocks
2% Treasury I Bonds
1% Precious Metals / Crypto

* Why All Real Estate is at Risk


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