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What are the negatives for I Bonds?

We are 3 years from retirement and are building a
ladder of 6 years of "safe" investments to use if the
stock market does not provde sufficient income. In
other words, we should be able to last through 6
years of a bear market before we have to sell stocks
in a down market.

We already have 3 years of living expenses in municipal bonds that do not pay out interest and will mature at face value. These were purchased from a full service broker before we discovered the Fools. I suspect that we paid a substantial
commission.

I would like to be able to set up the next three years without using a full service broker. However, I don't know how to judge the quality of munis nor how to find these discounted munis.

Therefore, we are considering I Bonds because:

1: They are indexed to inflation and will preserve our capital

2: They do not pay out interest ( we plan not to need it) and therefore the interest is not taxed until the bond is cashed in or they mature in 30 years

3: The interest is automatically reinvested

4: After 5 years, the bonds can be cashed in without penalty

5: We can buy the I Bonds at a local bank


Are there any pitfalls or downside that I am missing?

Thanks for your help.

mkt
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