Time to sell I-Bonds ?

My 2021 iBonds are still earning 2.96%, that were purchased in April and June.

If your iBonds were purchased electronically, you can redeem them partially or in full and the money will be returned electronically in two days. You could also use some or all of the money to buy new iBonds, paying 3.11% (includes 1.20% fixed)
 
It depends on your reason for owning. I personally dumped all my 0% and sub 1% fixed issues. But not abandoning the IBonds, I doubled down past year or so in buying and multi gifting to repurchase them all back as 1.3% fixed issues. Will initiate one more round of the 1.2%’s come January, then sit on that allocation amount. But my purpose though is long term inflation protected, cash equivalent emergency money that is tax deferred.
+1

I have just enough risk in my investments. Ibonds for emergencies or to get me through a tough financial period help to keep the risk at tolerable levels.

I also use TIPS for some inflation protection. But, as we all know TIPS can go down in value from time to time. Ibonds never go backwards in value, Other than the three month interest penalty if not held for five years.
 
You may already know this, but you can change from defurring taxes to reporting all you have earned to date, pay taxes, and then report interest each year going forward to not hit a big tax bill when they mature. I did this maybe 6-7 years ago on I-bonds I bought in 2001.
Thanks. I'll look into that. I did not know that was an option. Blessings and aloha.
 
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