Comments on: The Motley Fool on emergency funds http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/ Fri, 29 Aug 2008 20:30:20 +0000 http://wordpress.org/?v=2.0.4 by: Ken http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/#comment-1369 Sun, 19 Nov 2006 23:54:24 +0000 http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/#comment-1369 Seems like I-bonds could also come in handy for those who retire early before they're eligible for penalty-free withdrawals from their 401K/IRA. During that time, you could just redeem the I-bonds that you need to pay for your expenses. If you have like $40K in expenses, just redeem $40K value in I-bonds. If half of that is interest, then you would have a very low tax rate. In that case you could almost consider the I-Bonds as tax-free. Seems like I-bonds could also come in handy for those who retire early before they're eligible for penalty-free withdrawals from their 401K/IRA.

During that time, you could just redeem the I-bonds that you need to pay for your expenses. If you have like $40K in expenses, just redeem $40K value in I-bonds. If half of that is interest, then you would have a very low tax rate. In that case you could almost consider the I-Bonds as tax-free.

]]> by: Tom Adams http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/#comment-1361 Sat, 18 Nov 2006 16:21:07 +0000 http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/#comment-1361 Ferdinand - Good point. I agree. Tom Adams Ferdinand - Good point. I agree.

Tom Adams

]]> by: Ferdinand Francisco http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/#comment-1348 Fri, 17 Nov 2006 18:54:42 +0000 http://www.savings-bond-advisor.com/the-motley-fool-on-emergency-funds/#comment-1348 I would point out a caveat with putting your emergency funds in I bonds - the twelve month restriction on redemption. Woe to the person who moved their entire fund into I bonds and then needed it six months later. If taking this path, I would recommend laddering into I bonds by spacing out purchases perhaps quarterly. If one wanted the security of Treasury obligations, the "unladdered" funds could perhaps be parked in notes or marketable securities. I would point out a caveat with putting your emergency funds in I bonds - the twelve month restriction on redemption. Woe to the person who moved their entire fund into I bonds and then needed it six months later.

If taking this path, I would recommend laddering into I bonds by spacing out purchases perhaps quarterly. If one wanted the security of Treasury obligations, the "unladdered" funds could perhaps be parked in notes or marketable securities.

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