Government Securities

With today's inflation at 3%, will doubling my money in twenty years actually mean losing purchasing power? How do the one-year lockup and $10,000 yearly limit affect my need for flexible, inflation-beating options?

Given that Treasuries absorbed $2 trillion in 2024 demand, is the real issue just overconcentration instead of their haven status? Should I add a small amount of gold or cash for flexibility without losing yield?

I was thinking about that tax hit, too. One move people often make is shifting some of that cash into municipal bonds. Because the income is usually tax-exempt, your "after-tax" return often beats that of a regular savings account.

It’s definitely a trade-off, though; you lose some of that instant liquidity, and the price can fluctuate. A good strategy is to split your funds: use cash for immediate needs and municipal bonds for long-term savings.

@HashHustler said in Are they still relevant?:

I understand conservative investors like TIPS, but if the official CPI doesn’t match my living costs, can they actually protect me? In a world of high rates and rising prices, am I better off taking measured risks elsewhere?

It's a valid concern — TIPS follow the official CPI, which often misses the real-world price hikes we all feel. Most people I know balance that by mixing TIPS with stocks or real assets to grow their wealth while keeping things safe.

@CassianD_IT In the U.S. market, many people manage this by setting up a bond ladder or simply sticking with a short-to-intermediate fund. It diversifies your end dates, ensuring you won’t be restricted to a single rate. It’s a great way to smooth out reinvestment risks and catch rate changes as they happen, without having to stress over what the Fed is going to do next.

@Jackson Treasuries are a handy tool, but how you use them really depends on what you’re after. Choosing the right Treasury strategy comes down to matching your investments to your goals. Here is a breakdown of how to think about it:

For Short-Term Needs: If you just need a safe place to stash extra cash, T-bills are an excellent choice. They are highly liquid (easy to sell) and currently offer solid returns with low risk.

For Long-Term Stability: If you’re building a lasting portfolio, longer-dated bonds serve as a great "anchor." They provide much-needed stability to balance things out when the stock market becomes volatile.

Focus on Your Timeline: Since you’re just getting started, don’t worry about trying to "time" or predict the market. Instead, keep it simple and choose the bond that aligns with when you actually need the money back.

For context, as of today, December 23, 2025, the 3-month T-bill is yielding about 3.60%, while the 10-year Treasury is yielding around 4.15%.

You are on the right track!!! If you have already reported the full interest income from the 1995 Series I bond on your 2024 tax return, then there is no need to report it again now.

So for now you can ignore the 1099-INT for 2025, but still you need to enter it and deduct the amount you previously reported on your 2024 return. If you do this, the IRS will get to know that you have already paid the tax on that interest.

Tax-exempt municipal bonds and US Treasury bonds are good options for safe income. Municipal bonds offer tax-free interest, and Treasury bonds are taxable but exempt from state taxes. They offer consistent income without touching your principal.

A Texas municipal bond priced at 102 signifies you're paying $1,020 for a $1,000 face value bond, known as buying at a premium. This typically means the bond's yield is below its coupon rate.

Factors Influencing Pricing:

Several elements affect this pricing, including prevailing interest rates, the bond's credit quality, its maturity date, and market supply and demand. The bond's tax benefits also play a crucial role, as they can enhance its appeal.

Your ultimate after-tax return hinges on both the bond's tax-exempt status and its yield to maturity relative to its purchase price.