Series I - Sell

[2023Dreaming]

Hello! I purchased $20k in Series I a couple of years ago, right before and then after the New Year. It's only gained 3.37%, and I want to sell it and move it into VTO or VTSAX. Can you let me know what the financial implications would be for that? Also, if there is anything I should know? I am not experienced and learning as I go. Thank you so much!

Your Series I current holdings total amount is: $20,000.00
Your Series I current holdings current value is: $21,568.00

[Stimpy]

Taxes (Obviously, what ever that means in your situation). And 3 months of interest is removed if taken out in less then 5 years.  (https://www.treasurydirect.gov/savings-bonds/i-bonds/)

Other then that, No issues I am aware of.

[seattlecyclone]

The $1,568 increase will be taxable income unless you qualify for the exemption for low-/middle-income folks paying education expenses.

I believe the current value listed on the site takes the three months' penalty into account. The other way of thinking about this is if you hold to the fifth anniversary you get three months of bonus interest at that time.

[markpst]

Yes, the current value does have the three month penalty already factored in.

I decided to cash mine in this year. In my situation, I'd rather pay the tax now, then when I should be retired. I will still be in the same tax bracket but would prefer to keep AGI lower for a potential ACA subsidy.

[MustacheAndaHalf]

Hello! I purchased $20k in Series I a couple of years ago ... and I want to sell it and move it into VTO or VTSAX.

In 2022, stocks crashed and you bought bonds.  Then in 2023-2024, stocks did well, and now you want to sell bonds and buy stocks.  If stocks crash in 2025, will you sell stocks and buy bonds?

Chasing performance like that is a big factor in why retail investors don't get the full return of the ETFs they buy.  After stocks lose, they lock in the loss by selling and moving to cash or bonds.  They miss the recovery.