The Treasury Department is set to announce the new rate for I bonds on Tuesday following a surge in purchases last week. CNBC's Sharon Epperson joins 'Squawk Box' with the details. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV...(read more)
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When it comes to investing your money, there are a lot of options out there. Two popular choices for those looking for a safe and low-risk investment strategy are I bonds and TIPS. However, understanding the differences between these two options is essential for choosing the best path for your money. First, let's take a closer look at I bonds. These are savings bonds issued by the U.S. government that pay interest based on a fixed rate plus inflation. The interest earned on I bonds is not taxable at the state level and is only taxable at the federal level when they're redeemed. On the other hand, TIPS (Treasury Inflation-Protected Securities) are a type of government bond that is also indexed to protect against inflation. They work by adjusting the principal value of the bond based on changes in the consumer price index (CPI), so the interest earned on these bonds is based on the adjusted principal value. One key difference between I bonds and TIPS is that the earnings on TIPS are taxable at both the state and federal level. However, investors can hold TIPS in tax-advantaged accounts like IRAs or 401(k)s to avoid paying taxes on the earnings until they withdraw the funds. Another important factor to consider is the liquidity of these investments. Both I bonds and TIPS are non-marketable securities, which means they are not traded on a secondary market like stocks or mutual funds. However, I bonds can be redeemed after one year and are subject to a three-month interest penalty if sold before five years. In contrast, TIPS can be sold at any time without penalty. So which investment is better? It depends on your individual needs and financial goals. For investors looking for short-term, low-risk options, I bonds may be the best choice. Because they have a fixed interest rate that adjusts based on inflation, they're great for those looking to protect against inflation while still earning a return on their investment. On the other hand, TIPS may be a better fit for those looking for a longer-term investment strategy. Because they're more volatile than I bonds, TIPS can provide higher returns, although they also carry a higher risk. To summarize, both I bonds and TIPS are safe investment options that can protect against inflation while earning a steady return. However, understanding the differences between these two options is essential for choosing the best path for your money. Factors such as taxation, liquidity, and investment goals will all come into play when making this decision. Ultimately, the key to getting the most bang for your buck is to carefully consider your options and choose an investment that fits your individual needs and financial goals. https://inflationprotection.org/maximizing-returns-a-comparison-of-i-bonds-and-tips/?feed_id=90735&_unique_id=644583e03359d #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #businessnews #cable #cablenews #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #SquawkBoxU.S. #stockmarket #stockmarketnews #Stocks #usnews #worldnews #TIPSBonds #breakingnews #businessnews #cable #cablenews #CNBC #financenews #financestock #financialnews #money #moneytips #newschannel #newsstation #SquawkBoxU.S. #stockmarket #stockmarketnews #Stocks #usnews #worldnews
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