I bonds

[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/

[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.

[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.

[harpole]

Good info Jim. I've never even considered this...

[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.

[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.

[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!!!

[bloobs]

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.

[jimcasada]

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

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

[Midway]

https://www.usatoday.com/story/money/pe ... 536818002/

[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.

[bloobs]

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.

[Scarfinger]

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.

[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.

[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.