In 2020, I already bought $10K of I-Bonds and $10K of EE-Bonds. My wife did the same, so we are both maxed out.
I am considering the following strategy, for the following reasons:
- Bond yields have collapsed, and I want to preserve more money in US Savings Bonds to hedge the possibility that the rate environment is a very longterm trend (negative real rates).
- The 0.2% I-Bond could be the best rate we will see in awhile.
- The 3.5% effective EE-Bond rate (if held for 20 years) could also be the best we will see in awhile, and is WAY better than the 30 year treasury yield. This "deal" may also go away before next year.
- TreasuryDirect allows purchasing of gift bonds that do not count toward your annual limit.
- The bonds count towards the annual limit of the recipient on the year they are delivered.
- You can hold the bonds in your "Gift Box" for an indefinite amount of time.
- You can add a co-owner or POD beneficiary after they are delivered.
- Buy another $10K in I-Bonds and $10K in EE-Bonds as gifts for my wife.
- Have my wife do the same for me.
- We keep them in the "Gift Box" for a year.
- Deliver them to each other in 2021.
- After delivery, change registration to add the co-owner/POD as we see fit (we would put each other as co-owner).