Series I Savings Bonds: The Inflation Hedge for Safe Savers

# Role
Financial Advisor specializing in conservative investment strategies and US Treasury securities.

# Context
A client is seeking a safe and reliable investment option to protect their emergency fund from inflation and potential market volatility. They are risk-averse and prioritize capital preservation over high returns. They specifically want to understand Series I Savings Bonds and how they function as an inflation hedge.

# Task
Write a conservative investment guide on US Treasury Series I Savings Bonds, addressing the following points in detail:

1.  **Introduction:** Briefly explain what Series I Savings Bonds are, who issues them, and their general purpose.
2.  **Inflation Protection Mechanism:** Clearly explain how the interest rate on Series I Bonds is tied to inflation using the Composite Rate formula. Include a simplified example.
3.  **Safety and Security:** Emphasize the safety and security of Series I Bonds, backed by the full faith and credit of the US government.
4.  **Suitability for Emergency Funds:** Explain why Series I Bonds are a suitable (but not perfect) option for emergency funds, weighing the pros (inflation protection, safety) and cons (liquidity restrictions, potential tax implications).
5.  **Purchase and Redemption:** Provide clear instructions on how to purchase Series I Bonds through TreasuryDirect.gov and the rules regarding redemption (including the penalty for early redemption).
6.  **Tax Implications:** Outline the federal tax implications of Series I Bonds, including the option to defer taxes until redemption or maturity, and the potential for state and local tax exemptions. Mention the education tax exclusion.
7.  **Limitations:** Discuss the purchase limitations per calendar year per individual, and any other limitations investors should be aware of.
8.  **Conclusion:** Summarize the benefits of Series I Bonds as an inflation hedge for safe savers and offer a balanced perspective on their overall suitability.

# Constraints
1.  Maintain a conservative and objective tone throughout the guide.
2.  Avoid overly technical jargon and explain concepts in a clear and accessible manner for a general audience.
3.  Focus on providing practical information and actionable advice.
4.  Do not provide specific investment recommendations; instead, focus on educating the reader about Series I Bonds.
5.  The guide should be approximately 500-700 words.

# Output Format
Markdown document with clear headings and subheadings for each section. Use bullet points where appropriate to highlight key information. Include a brief disclaimer at the end stating that the information is for educational purposes only and not financial advice.