The Daily Money: Is it time to sell those I bonds?

It may be time to sell the I bonds you bought at record-high interest rates in 2022.

Advertisement Read in browser The Daily Money ALL THE MONEY NEWS YOU NEED TO KNOW Wed Jan 3 2024 Daniel de Visé | Personal Finance Reporter Good morning! It's Daniel de Visé with your Daily Money. The good news: Inflation has eased over the past year. The bad news? So has the variable rate on those I bonds you bought back when inflation hit a 40-year high.  The I bonds you purchased in the summer of 2022, which paid a record 9.62% in annual interest when inflation was soaring, are now paying about a third of that, Medora Lee reports. But with inflation down and interest rates up, thanks to aggressive Federal Reserve rate hikes  over the past year and a half, you've got a lot of options to earn more than those I bonds offer, investment advisers say.   "You should sell them," said Daniel Milan, investment adviser and managing partner at Cornerstone Financial Services in Southfield, Michigan.   Feb 28, 2023; Washington, DC, USA; Protestors gather outside the U.S. Supreme Court ahead of the oral arguments in two cases that challenge President Joe Biden's $400 billion student loan forgiveness plan. Megan Smith/USA TODAY How to avoid student loan debt Last year saw failed attempts to forgive student loans en masse and  a herky-jerky return to loan payments after a long hiatus. It was also a year that raised fresh questions about whether a college degree really pays off in the long run.  Despite that, Nirvi Shah reports, Americans are generally undeterred in their pursuit of higher education. The number of prospective college students creating Common App accounts to apply to schools in 2023  surged, including among those who would be the first in their families to go to college, and among students of color. A disproportionate share of the nation's  nearly $2 trillion in student loan debt  is carried by women. Black women, in particular, owe an outsize sum. Does it have to be this way? Is it possible to go to college without taking out student loans or to find a well-paid job without a degree? USA TODAY spoke with college students, graduates and dropouts about getting the skills or degrees required to become professionals, without going into significant debt. Unless a student's family can underwrite their education or secure a coveted scholarship that covers  the growing price of a degree, it's very difficult.  📰 More stories you shouldn't miss 📰 How much is the 2023 child tax credit? Here's what you need to know about qualifying. What's ahead for the US economy? A peek at inflation, interest rates, more Which EVs qualify for a 2024 tax credit? See the updated list. What does cost of living mean? How we calculate the comparison for states and cities. About The Daily Money Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. These 5 people tried to limit their student loan debt. It wasn't easy Is it possible to go to college or get a high-paying job without student loans? Yes, but without a wealthy family or big scholarship it's difficult. READ MORE Advertisement You may want to sell those I bonds you bought. Here's why. Remember those I bonds you bought to keep up with inflation in 2022? Here's why you should consider selling them. READ MORE Economy, job growth likely to slow in 2024 but overall outlook improves The economy and job growth are expected to slow in 2024. 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Here's what to do and how you can get on your way with minimal hassle. READ MORE What will the housing market be like in 2024? Here's what experts say Real estate activity will vary significantly from market to market with some top-growth areas expected to see double-digit increases, says Hale. READ MORE Only half of us expect to pay off our December credit card bill Only half of America's credit card customers believe they can pay off their December balance in full, signaling a low ebb in "credit card confidence" READ MORE Advertisement Sign up for the news you want Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. SEE ALL NEWSLETTERS ➔ Newsletters   |    eNewspaper   |   Crosswords Follow Us Problem viewing email? View in browser Unsubscribe  •  Manage Newsletters  •  Terms of Service  •  Privacy Policy/Your California Privacy Rights  •   Privacy Notice  •  Do Not Sell My Info/Cookie Policy  •  Feedback