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Investing in Treasury I bonds!

Article by Eric Wimbush of Seraphim Wealth Advisors

Originally published in SOFU Lifestyle

Seraphim Wealth Advisors would like to bring attention to a government bond program that provides inflation protection to investors. This program cannot be accessed through normal investment accounts or through an advisory firm. Individuals that want to invest in this bond offering must sign up and open an account at You don’t need any past investment experience to invest in this government-backed program. 

These bonds are extremely simple to understand and initiate. Here are a few of the specifics that one should focus on:

-       Low risk rate of return – currently set at a 9.62% annual rate that is paid semi-annually

-       Investment maximum of $10,000 per individual each calendar year (electronic bonds have a minimum purchase of $25 and paper bonds a minimum of $50)

-       Rate of return is a combination of a fixed rate that stays the same for the life of the bond and an inflation rate that is set twice per year (charts are available on the Treasury Direct website,, with the historical return and the component pieces since 1998)

-       Can be given as a gift

-       Can be used for education purposes

-       Hold period – can be cashed in after one (1) year, but investors lose the last 3 months of interest if they are redeemed within the first five (5) years (the website has a great example)

There are tax implications for this security type that individuals need to be aware of as they move forward. The interest on these bonds is taxable at the federal level and not subject to taxes at the state level. If the money is used for higher educational purposes, it may not incur the tax implications at the federal level. To be fully aware of the tax implications, individual investors need to consult with their tax professional to fully evaluate the way that this investment will fit with the full financial picture of a household.

It is our professional opinion that every household should take advantage of this program, regardless of whether you have investment experience or use a financial firm for advice (hint, hint: you don’t need to pay a professional for access to this offering). There are no fees related to this program and the return is “low risk” which makes it a perfect vehicle for every client regardless of risk level.