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re: I Bonds right now?
Posted on 3/3/22 at 4:50 pm to bovine1
Posted on 3/3/22 at 4:50 pm to bovine1
I forgot to add that negative yield is the coupon yield. The inflation rate factor is added to that for your actual yield. In other words the coupon yield on the current traded 10 year bond is -.854%. The inflation factor is added to this.
0
Posted on 3/3/22 at 5:03 pm to RedlandsTiger
10K is the limit, but you have get up to another 5K in paper via your tax return refund
Posted on 3/3/22 at 5:53 pm to RedlandsTiger
quote:
Please explain, they are both inflation protected bonds.
I-bonds aren't traded on secondary markets and therefore cannot lose value based on interest rate changes (unless the govt defaults). Also, I-bonds have a feature that their yield can never go below zero.
TIPs (whether individual or fund/etf) are sold on the secondary market and can lose value based on interest rate changes. Also their yield can go below zero. This is not really a concern if you are holding individual bonds to maturity or holding a fund/etf for at least the fund's duration.
Posted on 9/13/22 at 8:45 am to Guillotte335
So what impact will this morning’s inflation data have on I bonds?
Posted on 9/13/22 at 9:38 am to RedlandsTiger
quote:
It's 15k per year.
To get the extra $5k you gotta over pay on your taxes and apply your refund to purchase them. Dumb strategy unless you happen to have the overpayment already.
Posted on 9/13/22 at 10:03 am to Dale Gribble
quote:
So what impact will this morning’s inflation data have on I bonds?
Minimal. Much of the 8.3% has already happened and we knew that already.
Posted on 9/13/22 at 10:18 am to slackster
How do they come up with the number for November? Do they do an average of the last 6 months or is it more of a forward looking estimate?
Posted on 9/13/22 at 10:37 am to OysterPoBoy
quote:
Do they do an average of the last 6 months or is it more of a forward looking estimate?
They compare September CPI vs March. Best case scenario would be ~3.57% for the next 6 months, worst case is 3.01% (which is where we already are with August numbers).
Posted on 9/13/22 at 10:51 am to OysterPoBoy
quote:
How do they come up with the number for November? Do they do an average of the last 6 months or is it more of a forward looking estimate?
https://tipswatch.com/2022/09/13/u-s-inflation-rose-0-1-in-august-what-it-means-for-tips-i-bonds-and-social-security-cola/
Posted on 9/13/22 at 12:03 pm to slackster
So if you buy now do you still lock in the 9.62% rate for the first six months of the bond?
This post was edited on 9/13/22 at 12:51 pm
Posted on 9/13/22 at 1:03 pm to GeneralLee
quote:
So if you buy now do you still lock in the 9.62% rate for the first six months of the bond?
Yes. Anytime before end of October.
Posted on 9/13/22 at 1:04 pm to lsu13lsu
If you are married can you invest $20K/year, $10K for yourself and $10K for your spouse?
I just tried to register and it said my info couldn't be verified so I have to submit an account opening form by mail which takes on average 13 weeks to approve. LOL our government at work. They probably searched a database and saw I donated to Republicans so they didn't want to give me any interest.
I just tried to register and it said my info couldn't be verified so I have to submit an account opening form by mail which takes on average 13 weeks to approve. LOL our government at work. They probably searched a database and saw I donated to Republicans so they didn't want to give me any interest.
This post was edited on 9/13/22 at 1:12 pm
Posted on 9/13/22 at 1:44 pm to GeneralLee
two separate accounts but make each other the beneficiary on your account. $10,000 each account.
On a married filing jointly return, only $5,000 total and not $5,000 per individual.
You could gift each other more but you can only deliver $10,000 in any one year to a person.
On a married filing jointly return, only $5,000 total and not $5,000 per individual.
You could gift each other more but you can only deliver $10,000 in any one year to a person.
Posted on 9/13/22 at 1:46 pm to GeneralLee
quote:
So if you buy now do you still lock in the 9.62% rate for the first six months of the bond
You lock in 4.81% for 6 months, which is equivalent to 9.62% annualized. You’re probably getting 3-3.5% for the next 6 months, or 6-7% annualized.
Posted on 9/13/22 at 1:49 pm to GeneralLee
quote:
If you are married can you invest $20K/year, $10K for yourself and $10K for your spouse?
Doesn't have to be a spouse. You can buy I bond gifts for anyone w/ a ssn.
Also, you can do more than 20k/year between two people. You are able to "front load" gifts as much as you want. If you want to buy $100k in I bonds as a gift for your wife this year, nothing stops you. The catch is it will take several years to deliver all of the I bonds to her.
Between my mom and I, we have put in 80k into I-bonds since Dec 2021. We each bought ourselves 10k in 2021 and 2022. Then we bought $20k in I bond gifts for each other this year. We're thinking about buying more before Nov 1 as well.
https://thefinancebuff.com/buy-i-bonds-as-gift.html
Posted on 9/13/22 at 1:56 pm to gpburdell
quote:
Between my mom and I, we have put in 80k into I-bonds since Dec 2021. We each bought ourselves 10k in 2021 and 2022. Then we bought $20k in I bond gifts for each other this year. We're thinking about buying more before Nov 1 as well.
That’s pretty ballsy, so good luck.
Posted on 9/13/22 at 2:15 pm to slackster
quote:
That’s pretty ballsy, so good luck.
Nah, the funds for this is from our emergency funds that was sitting in a checking account earning minimal interest before. We haven't sold any equities for this.
Fwiw, I keep a 1 year liquid emergency fund and my mom's is 2-3 years. So this isn't changing our risk portfolio at all.
I only found out I bonds/TIPS last year or would have moved my emergency fund to them much earlier. Even after I bonds rates go back down, we won't sell them unless needed. I bonds are perfect for emergency funds as they keep up with inflation and will maintain purchasing power over years/decades.
Posted on 9/13/22 at 2:36 pm to gpburdell
Gotcha.
Obviously be mindful I Bonds aren’t liquid at all in the first 12 months, so people shouldn’t stretch their emergency funds too much.
Obviously be mindful I Bonds aren’t liquid at all in the first 12 months, so people shouldn’t stretch their emergency funds too much.
Posted on 9/13/22 at 3:09 pm to slackster
quote:
Obviously be mindful I Bonds aren’t liquid at all in the first 12 months, so people shouldn’t stretch their emergency funds too much.
Yeah I'm aware. My plan is to keep at least 1/2 of my emergency fund in I bonds. The rest I'm leaving in money market.
Also I recently found out how easy it is to buy individual Treasury bonds at Fidelity; 6 month T bills are at 3.5% which is a nice bump over money market. I was worried about having the money locked up for months at a time. But after doing research it's very easy to sell Treasuries on the secondary market if you need to.
Posted on 9/13/22 at 3:19 pm to gpburdell
if google drops more, may be better to buy half and half.
also look at LUMN
also look at LUMN
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