Faith Based Investing

November 19th

The big question for shorter term savings is invest in what? You can invest it in bank CDs for safety but that only gets you about 0.5%. You can open a taxable account at a brokerage like Fidelity, Schwab, or vanguard and invest in practically anything, but be careful with that, you can lose value just as easily as gain. Typically bond funds are appropriate for 2-4 year time frame, but have been doing poorly lately because of inflation. At least a 5-10 year time frame is recommended for stock funds, so there is time to recover if they suddenly go down 30% (see March, 2020 for most recent examples).

November 24th

Benjamin10, the Sound Mind Investing newsletter has a timely article which may provide a solution for a portion of your savings, though not all. Here’s a brief description: Savers and income investors have been stuck living in a low-rate world for a long time, but there is one beacon of hope shining in the darkness! Suddenly, inflation-sensitive I-Bonds have received a massive bump up to 7.12%. As you might expect, that interest rate comes with some caveats, including the fact that the rate will reset again next May, the bonds have to be held for at least 12 months, and if they are redeemed in less than five years, you will forfeit the last three months' worth of interest. Still, compared to the alternatives, I-Bonds are the Best Deal in Fixed-Income Right Now. (or simply go to their website and look at their recent articles for the title I-Bonds…) As noted, there is a short-term redemption fee, but getting that good of interest rate in the short term may be worth forfeiting 3 months. …

November 24th

Also, there is a max limit ($10k per person per year). But if you act now, you could get $10k in this year and another $10k for next year, or double that if your married. Congrats on being mortgage free and best wishes when you look for your next home!

April 14th

Check out I Bonds on the Treasury website.
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