New I-Bond Rate Is Out: Should You Invest?

And, get thousands off the purchase of hybrid or electric cars. Created for {EMAIL} | [Web Version]( May 7, 2024 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [X]( [Instagram ]( [Youtube]( [SIGN UP]( ⋅ [WEBSITE]( [] Introduction [] [Stepping Into Social Security COLAs]( Every year, Social Security payments are increased by a Cost of Living Adjustment (COLA) that uses a formula sensitive to inflation. There is a proposal out now from some lawmakers to update the formula to better reflect costs faced by retirees, they say. Kiplinger personal finance writer Erin Bendig gives you [more details about the proposed formula change](. Meanwhile, there’s some news on what next year’s COLA could look like – more on that below. - Donna LeValley, personal finance writer [Prepare For Retirement Using a Dividend Growth Investment Strategy]( If you invested in an S&P 500 index fund starting in January 2000 until September 2020 your average annualized return would have been 4.2%, a cumulative return of 136%. But if you reinvested all dividend payments your annualized return would have been 6.2%, a cumulative return of 247%. Just reinvesting dividends would have nearly doubled your gains. [READ MORE]( ADVERTISEMENT [] TOP STORY [] [I-Bonds: Pros and Cons of Investing]( [I-Bonds: Pros and Cons of Investing]( (Getty Images) The new I-bond rate was released a few days ago and it is less than 1% lower than the previous rate. These bonds had a historic run during the pandemic when rates hit over 9%. I’m a fan of I-bonds because you can buy more of them annually than others, and they have built-in inflation protection and offer tax advantages. Use this guide to [learn more about low risk I-bonds and if they fit into your portfolio](. [] SOCIAL SECURITY COLA [] [Latest Social Security COLA Forecast]( [Latest Social Security COLA Forecast]( (Getty Images) This news is a mixed bag. On the brightside, forecasts have increased their projected COLA for 2025, but the figure still falls short of keeping pace with inflation. Read on to see [what the COLA is now expected to be for 2025](, and why it’s not all good news. [Is your money working hard enough?]( It should be! Learn how Betterment's automated investing and savings technology can make your money hustle, while you don't. [LEARN MORE]( ADVERTISEMENT [] BUYING A CAR [] [Get Thousands Off Hybrid and Electric Car Models with the Costco Auto Program]( [Get Thousands Off Hybrid and Electric Car Models with the Costco Auto Program]( (Getty Images) If you are a Costco member and have been thinking of buying a hybrid or electric car, you can save thousands of dollars with its auto program. You don’t have to worry about getting blank stares from salespeople when you go to a dealer to buy a car eligible for the savings; Costco trains dealers about their offers to give you a smooth ride through the purchasing process. Keep reading to [learn how much you can save and when you need to take delivery of your new (or used) car](. [How Do I Plan for RMDs?]( If you have tax-deferred retirement accounts, you'll need to take required minimum distributions (RMDs) eventually. If not properly planned for, these distributions could take a tax toll on your retirement nest egg. Find out how to plan for RMDs, so you can help potentially avoid hefty fines. [Learn more]( ADVERTISEMENT [] OTHER KIPLINGER ARTICLES WE THINK YOU'LL ENJOY [] [Fed rate cuts still on hold]( Learn when our staff economist thinks the first rate cut is likely to happen. [Final EV tax credit rules don’t change much for consumers]( Get up-to-speed about the point of sale credit available to certain EV buyers. [Kiplinger jobs outlook: job growth takes a step back]( Slower job and wage growth buoys hopes of Fed rate cuts sooner rather than later. [Sign Up Free for Kiplinger's Retirement Tips E-Newsletter to plan for and make the most of a rewarding retirement](. ABOUT KIPLINGER When we write about money, we get it right. So the decisions you make with your dollars are also right. Kiplinger is a trusted provider of unbiased financial advice, objective business and economic forecasts, and practical help to millions of business professionals, investors, and individuals seeking to make more profitable decisions with their money. Our [flagship publications]( include [Kiplinger Personal Finance]( magazine, [The Kiplinger Letter]( [The Kiplinger Tax Letter]( [Kiplinger Retirement Report]( and [Kiplinger Investing for Income.]( All are regarded as the leading publications in their respective fields. Every day, millions of readers rely on our [free e-newsletters]( for help on everything from getting the best rate on a mortgage or car loan, to managing their businesses in an uncertain world, avoiding an IRS audit, building wealth for a secure retirement, or investing wisely in any kind of market. Now it’s your turn to reap all the rewards Kiplinger has to offer. Visit [Kiplinger.com](, your gateway to all of the above and much more. Check in any time for our latest advice on how to make more money, and keep more of the money you make. Stay right on the money, with Kiplinger. [Sign Up]( | [Print Publications]( | [Unsubscribe]( [Privacy Policy]( | [Cookies Policy]( | [Terms and Conditions]( CONTACT US: [FEEDBACK](concat('mailto:',$brief_feedback_email)) | [ADVERTISE]( [Future]( Future US LLC © Full 7th Floor, 130 West 42nd Street, New York, NY, 10036