I bonds

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jimcasada
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Joined: Mon Jan 12, 2015 4:40 pm

I bonds

Post by jimcasada »

Anyone have any experience with US government I bonds? This guy at work was telling me that they were currently paying over 9% interest. The main drawback I see is that there is a $20k/yr limit. I'm thinking maybe that could add up if I can do $20k each for wife and kids.

https://www.treasurydirect.gov/savings- ... est-rates/

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12squared
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Re: I bonds

Post by 12squared »

The annual limit is $10k per person, i.e. $20k per couple. I'm not sure that dependents qualify.

This year I Bonds seem to be the best place for new cash. I've reduced my tsp contributions to the minimum required to get the maximum match, putting cash into I bonds instead of the Credit Union.
“The genius of investing is recognizing the direction of the trend — not catching the highs or the lows.”
- Dean Witter

"You'll have to adapt or you'll be out of style."
- Robert Smith

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bloobs
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Re: I bonds

Post by bloobs »

I would love to stash cash into I bonds right now with the 10% yields (better than the stock market for sure) but their illiquidity is holding me back (I need most of that cash for planned expenses within the next 2-3 years). Maybe if stock market downturn lasts several years (like during 2000-2004) I'll just dump my IRA/TSP contributions into these instead.

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harpole
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Re: I bonds

Post by harpole »

Good info Jim. I've never even considered this...
Never underestimate the true intentions and overreach of the regime.
Less Government, More Freedom!

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TopNotch
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Re: I bonds

Post by TopNotch »

I'm thinking of buying these as well, in small denominations so that large chunks of money don't get tied up, so they can be cashed out when needed. The rate is very attractive.
David Tepper - "There is a time to make money and a time to not lose money."

Warren Buffett - "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1."

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12squared
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Re: I bonds

Post by 12squared »

Right now they're paying three times the G fund rate. The main catch is that you can't redeem them for 12 months. After that you pay the 3-month penalty for withdrawal within the first 5 years. In that regard they're not much different than CDs. Until the banks are paying more than the I Bond rate, this seems to be the best place to put emergency cash assuming you built it up over a number of years.
“The genius of investing is recognizing the direction of the trend — not catching the highs or the lows.”
- Dean Witter

"You'll have to adapt or you'll be out of style."
- Robert Smith

wingchaser
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Re: I bonds

Post by wingchaser »

Let us not forget about ROTH IRA(s), as we move to diversify our various investments…

https://www.fool.com/investing/2021/07/ ... make-rich/

Sorry for this inclusion, but I have to take every opportunity to promote this TAX-FREE Investment Vehicle…

Best of Luck (everyone) in all you choose to endeavor!!!
“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t... pays it.” ~ Albert Einstein

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bloobs
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Re: I bonds

Post by bloobs »

wingchaser wrote: Sat Oct 08, 2022 11:38 am Let us not forget about ROTH IRA(s), as we move to diversify our various investments…



Sorry for this inclusion, but I have to take every opportunity to promote this TAX-FREE Investment Vehicle…
Roths are fine, especially its flexibility. The problem is that my Fidelity Roth core or sweep account earns crappy interest even in today's rising rate environment (I've mostly sat in cash all year). My checking accounts earn much more.

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jimcasada
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Re: I bonds

Post by jimcasada »

How to get 9.62% annual interest for Series I bonds before November

https://www.cnbc.com/id/107136485?&view ... idappshare

Midway
Posts: 232
Joined: Tue Feb 28, 2012 6:09 pm

Re: I bonds

Post by Midway »


Midway
Posts: 232
Joined: Tue Feb 28, 2012 6:09 pm

Re: I bonds

Post by Midway »

Wish we could buy I Bonds within the TSP. I guess it would be to confusing: I Fund/I Bond. But it would make sense to be able to buy Treasury Bonds directly within the TSP.

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bloobs
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Re: I bonds

Post by bloobs »

Midway wrote: Thu Oct 20, 2022 12:07 pm Wish we could buy I Bonds within the TSP. I guess it would be to confusing: I Fund/I Bond. But it would make sense to be able to buy Treasury Bonds directly within the TSP.
In a perfect world, the new TSP website would have added Treasuries as an offerring, instead of that terrible "Mutual Fund" garbage.

Strategically speaking, the ideal solution to this US/global debt bubble is for all ALL of US to buy Treasuries instead of stocks/equities. Ultimately, that's what the Fed wants to encourage with QT. Bond funds prices are rock bottom while yields are rocketing, right?

But of course, banks, corporations, and us dumb money retailers continue to pile our money into crypto, gold, stocks, iPhones, big screen TVs, and real estate--all the while blaming the Fed, whoever's in the WH/Congress, BLM, Karens', martians, [insert your scapegoat of choice].

We're doomed. Enjoy the reset.

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Scarfinger
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Re: I bonds

Post by Scarfinger »

jimcasada wrote: Fri Oct 07, 2022 1:03 am Anyone have any experience with US government I bonds? This guy at work was telling me that they were currently paying over 9% interest. The main drawback I see is that there is a $20k/yr limit. I'm thinking maybe that could add up if I can do $20k each for wife and kids.

https://www.treasurydirect.gov/savings- ... est-rates/
I was under the impression that 10K was the limit + up to 5K from your tax return per individual (15K total).
In a calendar year, one Social Security Number or one Employer Identification Number may buy:
up to $10,000 in electronic I bonds, and
up to $5,000 in paper I bonds (with your tax refund)
For individual accounts, the limits apply to the Social Security Number of the first-named in the registration.
I am just an average Joe. I have no clue to what the market will do.
TimboSlice wrote: "People really need to stop overthinking this."
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation of

jimmyk
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Joined: Mon Dec 08, 2014 6:47 pm

Re: I bonds

Post by jimmyk »

Anybody put any money into I-bonds? The deadline to contribute and capture 9.6% is October 28th I believe. After that the rate is readjusting. Still considering this option for some college money we have saved for use in about 3 yrs but have not pulled the trigger. Was looking at a CD ladder but I think even with an early withdrawal penalty the I-bond return wins out.

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12squared
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Re: I bonds

Post by 12squared »

I have put about 8K into I bonds this year. The rate for new bonds is adjusted every 6 months. Anything purchased in the month of October will have a effective date of October 1st and will retain that rate for the following 6 months at which point the rate changes to what it was set to in November. The treasury takes about a day to process so if you want get into the October window, you'll need to submit it by close of business on the 27th.
“The genius of investing is recognizing the direction of the trend — not catching the highs or the lows.”
- Dean Witter

"You'll have to adapt or you'll be out of style."
- Robert Smith

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