Early Retirement & Financial Independence Community - View Single Post - I-bonds or money market for Emergency Fund?

Helen · 07-09-2005, 10:43 PM

Hi Bigfoot,

I've been researching whether to use I bonds for my after tax early retirement money.

One thought in using I bonds for an emergency fund is that you can not withdraw the money for 1 year. *Between 1 - 5 years you can cash them in and take the 3 month penalty. *After holding them for 5 years they are penalty free.

So in your case, I bonds may not meet your needs.

-helen

07-09-2005, 10:43 PM	#3
Helen Full time employment: Posting here. Join Date: Oct 2004 Posts: 567	Hi Bigfoot, I've been researching whether to use I bonds for my after tax early retirement money. One thought in using I bonds for an emergency fund is that you can not withdraw the money for 1 year. Between 1 - 5 years you can cash them in and take the 3 month penalty. After holding them for 5 years they are penalty free. So in your case, I bonds may not meet your needs. -helen