Last week, the
U.S. Treasury announced it would be reducing the maximum amount
of savings
bonds individuals could purchase starting January 1st. The new limit
will be $5,000
per individual for paper and electronic savings bonds ($10,000
total) which
is down significantly from the current limit of $30,000.
Currently,
Series EE Savings Bonds pay an annual interest rate of 3.00% and the
Series I
Savings Bond pay 4.28% (which is comprised of inflation plus a fixed
rate of
1.20%). In the past, we have used the Series I Savings Bonds as a hedge
against higher
inflation.
While we will
continue to use savings bonds for clients' portfolios, we only
have a few
weeks left to purchase the larger amounts.
Sincerely,
Justus Morgan,
CFP, EA
Financial
Service Group, Inc.
6011 Durand
Avenue, Suite 100
Racine, WI
53406
(262) 554-4500
x1
justus@toyourwealth.com