Is now a good time to buy I bonds?

[joecaf53]

This year I am barely in the 25% fed tax bracket and my be in the 15% bracket next year.

I have maxed out my tax deferred accounts and want to increase my bond holdings, but don't want to pay any taxes if I can avoid it. I know that muni funds would not make much sense given my tax bracket, and was thinking of purchasing I bonds in my taxable account.

What are my options for bonds in taxable account, if I am looking to avoid taxes?

Thanks

 

[teejayevans]

You can defer taxes on ibond interest, which can be attractive if you are close to retirement. You also don't pay state taxes if in a state like CA or NY, that can save you up to 10%.
TJ

 

[Mulligan]

Like TeeJay was saying IBonds can be tax deferred up to 30 years. If you buy before end of Oct. the rate is 2.2% for your first 6 months. If you are wanting to hold long term, the series EE maybe a better deal, as they are required to double in value if held 20 years which would equate to something north of 3.5% yearly return if held the 20 years. Appears to be some value in that play as the 30 yr. US treasury bond currently pays a lot less than that. If needing to use income stream, the EE bond would not benefit you, though.