Personal Investment & Financial Planning Q`s/EE Savings Bond, I-Bond, or 529


QUESTION: Hello Bruce.  I hope that you can help me with my question.  At year's end I have found that I have placed a bit too much money into tax deferred investments like our 403b's, I-Bonds, and 529's.  I need some cash for property taxes!  We are in the 28% bracket.  Our $5K EE Savings Bond matures in 2017.  Where would be the wisest place to get $10K from - Cash in the Savings Bond, redeem some of the I-Bonds, or take a non-qualified withdrawal from the 529?  Many thanks -


ANSWER: EE Bond won't give you enough at $5k

I Bonds I don't know how much you have


So in the limited info I have on you, DON'T take the 529 and the bonds are generally not paying much so I would lean on them instead. EE Bonds will cause all the tax built up in them for the years you had them to come all at once. So again, in the limited info world use IBonds first then fill in with EE Bonds. Can you wait until January? You can then put off the tax until 4-17. Can you use a home equity line of credit until January? If not, that is your spanking for not planning for the property taxes.

Good to save, just don't back yourself into this corner

Good luck

Happy Thanksgiving


---------- FOLLOW-UP ----------

QUESTION: Bruce - We have about $65K in I-bonds, $900K in 403b, and $80K in Roth IRA. Do you need other information?35

So it looks like I Bonds

You should get a planner as you have potentially complex enough and sizeable enough assets to want the help

I am in NJ if that works, I have remote clients, but in any event this should be a cursory idea and get your taxes paid at least



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Bruce Julien


I can answer questions on and raise issues clients overlook in the areas of Estate Planning as far as taxes and distribution flow problems, Asset Management as far as appropriateness of assets and allocations for a desired goal and the value a consumer gets for their costs, Tax Planning related to Income and Estates, and Insurance/Annuity questions particularly in light of suitability to the consumer.


I became a CPA in 1991 and began offering financial advice in 1992. I am a Registered Investment Advisor which means I sign off on putting clients' interests first in a fiduciary role.

BA in Accounting, University of Maryland 1990

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