447 | Mailbag: Breaking up with your Advisor, I Bonds, 4% Rule, Accounts for Kids, Roth IRAs | Sean Mullaney
ChooseFI
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How to Invest in High Interest I Bonds
The I bonds are sort of a funny product in terms of how they work. The default, which most people do, is the interest income is not taxed until you exit. For those higher earners out there, we subject to 3.8% net investment income tax. In theory, you can affirmatively elect to tax yourself on the interest payments as they're coming.
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