IRA before "golden" IBonds?


Recycles dryer sheets
Nov 18, 2003
Our nest egg is essentially now composed of 3 parts; regular IRA, Roth IRAs and IBonds with 3.4 and 3.6% real rates. We are living off IRA and haven't used any of the other monies.

We plan to buy a new car in the not too distant future and I had planned on selling some IBonds as already taxed money. DW says they are deferred money also and those rates are just SO good for such a safe investment she would prefer we get all we need from IRA. I was thinking of cashing $10k bond which would mean $2,500 fed tax we would NOT have to be paying. On the other hand, these are awfully good bonds to have along with the Roths for a long term reserve. Thoughts?... thanks, bill
If I had I Bonds with 3.4 and 3.6% fixed rates(I have mine with 3.0% real rate) I would do almost everything I could not to sell them until I was almost out of other money.

That said, not knowing your tax situation, that could play into my decision.
I mostly agree with Dave J -you have to look at what your IRA holdings are in.

Can you get 3.4%/3.6% + CPI risk free in your IRA? If not, then why not withdraw the $ from the IRA?

I'm also sitting on a horde of them (average 3.3% fixed). Don't need the money now, but trying to imagine under what circumstances I'd cash them in over the next 25 years (I suppose if there was a reason I thought we'd have serious prolonged deflation, I might....although all other fixed income would probably dive to nothing as well).

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