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What is the advantage of investing in Series I Savings Bonds?

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Adam Nash, a seasoned financial expert and the CEO and co-founder of Daffy, has been teaching "Personal Finance for Engineers" at Stanford since 2017. He has covered a range of topics from compensation and investing to real estate. His experience as the Former President and CEO of Wealthfront and Former Vice President of Product & Growth of Dropbox, along with his current position on the Board of Directors at Acorns, has given him a unique perspective on financial matters. One of the topics he often discusses is the difference between Treasury Inflation-Protected Securities (TIPS) and Series I Savings Bonds. While TIPS are convenient for building a portfolio due to their large liquid market and daily trading on the secondary market, Series I Savings Bonds are a great option for those looking to stash away some money for the long term that is saved from inflation. The main advantage of investing in Series I Savings Bonds is that you cannot lose capital investing in them. The government guarantees your principal back, unlike TIPS which can fluctuate with interest rates and market conditions. However, Series I Savings Bonds do have limitations, such as a maximum purchase of $10,000 per year online and an interest rate penalty if sold before five years. While both TIPS and Series I Savings Bonds have their place depending on your financial goals, it's important to note that Daffy offers a unique and modern platform for giving. As a not-for-profit community, Daffy simplifies your giving with the Donor Advised Fund for You™. You can easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place. Daffy waives all membership fees for members with less than $100 in their fund, making it an accessible and affordable option for those looking to make a difference. So, whether you're investing in Series I Savings Bonds, TIPS, or looking for a way to give back, Daffy is a great option to consider.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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