I recently reviewed my treasury I bond holdings and discovered that 80% of the cash I have invested in I bonds are locked into I bonds with fixed rates between 1.0 and 1.1%.The next question I asked is- what inflation rate is needed so that the combined fixed and inflation rates is greater then a bank CD.Using the equation provided on the treasury web site that shows the relationship between inflation rate and fixed rate, I reverse calculated a required inflation component of approximately 2%.I don't see this occurring in the foreseeable future, as the Fed is determined to keep inflation under control.I'm therefore considering cashing in my government I bonds to reinvest in CDs, payoffs a small amount of margin I have in a brokerage account, and invest in some stock opportunities.I'm posting this just to encourage others to review their I bond holdings and consider other options as I have done.
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