In today's radio broadcast, Matt and I discuss two major topics: I-Bonds and Pledged Asset Line of Credit.
I-Bonds are issued by the US Government directly on TreasuryDirect.gov. While you can only purchase $10k in a single year, the current yield is over 7%! This could be a good place to park part of your emergency savings and get a good return, however be aware of the fine print which includes:
- You can only purchase $10k each year.
- The interest rate (yield) does change every 6 months.
- You must hold them for at least 12 months time.
- If you cash them in prior to holding for 5 years, you lose the last 3 months of interest.
On the flipside, if you are looking to borrow money, you might qualify for a loan
against your investable portfolio. If you have accounts at brokerages such as E*Trade or Charles Schwab, they offer a line of credit with
low rates. This is very similar to a Home Equity Line of Credit (HELOC) as an interest-only loan. You can potentially negotiate these rates if you give them a call (or perhaps threaten to take your money to another brokerage 🤫).
These are two tools in the kit that might apply to your financial situation.
Find out more about Mike at https://www.mortonfinancialadvice.com and connect at https://www.linkedin.com/in/mwsmorton/
