Cashing in 30 year EE Bonds

[bookman51]

I am faced with cashing in several series EE bonds this year since they will no longer be paying interest after thirty years. I have purchased as much as I can of the Series I bonds. The EE bonds were paying 4%. Now with inflation, I am concerned about just letting the money stay in the bank at an absurdly low interest rates.

I am in my mid-70s and cannot say I need the money, but also a shame to let it be and inflation eat away at it.

Any recommendations as to relatively safe investments that pay at least in the 3% to 4% interest rate? I am afraid I know the answer but I thought I would toss the question out for the collective wisdom of the group. Thanks in advance.

 

[disneysteve]

Any recommendations as to relatively safe investments that pay at least in the 3% to 4% interest rate?

Sure. You can get government or municipal bonds in that range with maturities as short as 5 years.

 

[mrfeh]

I am faced with cashing in several series EE bonds this year since they will no longer be paying interest after thirty years. I have purchased as much as I can of the Series I bonds. The EE bonds were paying 4%. Now with inflation, I am concerned about just letting the money stay in the bank at an absurdly low interest rates.

I am in my mid-70s and cannot say I need the money, but also a shame to let it be and inflation eat away at it.

Any recommendations as to relatively safe investments that pay at least in the 3% to 4% interest rate? I am afraid I know the answer but I thought I would toss the question out for the collective wisdom of the group. Thanks in advance.

I don't know what MYGAs are paying right now, but you could investigate (if you'r willing to hand your money over to an insurance company).

Otherwise, maybe just wait a couple months? Hopefully CD rates will be improving soon...

 

[finnski1]

I don't know what MYGAs are paying right now, but you could investigate (if you'r willing to hand your money over to an insurance company).

Otherwise, maybe just wait a couple months? Hopefully CD rates will be improving soon...

3 year MYGA's are around 2.7% right now from top insurance companies. Not too bad.

 

[24601NoMore]

I don't know what MYGAs are paying right now, but you could investigate (if you'r willing to hand your money over to an insurance company).

Otherwise, maybe just wait a couple months? Hopefully CD rates will be improving soon...

Mass Mutual (through Fidelity and elsewhere) has a 3.2% MYGA with a 5 year duration.

 

[RE2Boys]

I am faced with cashing in several series EE bonds this year since they will no longer be paying interest after thirty years. I have purchased as much as I can of the Series I bonds. The EE bonds were paying 4%. Now with inflation, I am concerned about just letting the money stay in the bank at an absurdly low interest rates.

I am in my mid-70s and cannot say I need the money, but also a shame to let it be and inflation eat away at it.

Any recommendations as to relatively safe investments that pay at least in the 3% to 4% interest rate? I am afraid I know the answer but I thought I would toss the question out for the collective wisdom of the group. Thanks in advance.

It was a very nice ride the last ten years getting a very safe liquid 4% return. But has resulted in a balloon in income tax interest earned for me over 2020 to 2022, it pushed me into the 22% marginal tax bracket. From a tax standpoint, this is the last year of cashing EE bonds. Next balloon is when my I Bonds mature about 10 years from now.

For me, I have no need to take any risks chasing yield. I'm in the process of buying 6 and 12 month T-bills at auction through a brokerage to park cash, may move out longer as interest rates rise. Just looked and the Federal Home Loan Bank is currently offering 3 and 5 year bonds at 3+ percent yield. Tempted.