I assume that's subject to income limits? https://www.treasurydirect.gov/indiv/pl ... cation.htm
[edited: answered in another thread - posted response in next post]
Timely post - as I was just asking about adding EE and/or I Bonds to my portfolio to help bridge early retirement as posted here: viewtopic.php?f=1&t=311073&newpost=5168721
But I really like the idea of the "Build Your Own Annuity".SnowBog wrote: ↑Tue Apr 07, 2020 1:29 am Given that I'm on track to "have enough" (I don't need to take additional risk, and arguably I have more to lose than gain), the apparent additional safety seems a big benefit...
And my rough estimates show that even at 0% interest (return of I Bonds capital) with EE Bonds doubling @ 20 years covers roughly 50% of estimated annual expenses (granted those are nominal rates - not adjusted for inflation which could dramatically change things). Based on current conservative portfolio projections - 20% muni bonds @ 55 covers roughly 14 years of expenses (with other 50% covered by I & EE bonds) + 1 year cash = 15 years of "safe"(ish) assets. While not the "highest returns" possible - this seems to remove a lot of risk from our plan (but requires that we start ASAP to get the 20 year clock running.)
I had only thought about this to offset my potential early retirement years, but since I was starting late (age 43), I was struggling if it was worth the effort for only 7 years (63 - 70).
But my projected delayed SS & pensions only cover about 75% of estimated expenses - so using these as an "annuity" to cover some of the delta could give me even more flexibility! And the longer horizon where these "make sense" overcomes most of my concerns on the hassle of managing these (mainly for survivors/heirs).