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PSA - I-Bonds (again) 9.62% May 1st
#14342486
04/13/22 02:19 PM
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Joined: May 2002
Posts: 5,763
JCG57
OP
TFF Celebrity
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OP
TFF Celebrity
Joined: May 2002
Posts: 5,763 |
In December I suggested investing excess cash (up to $10,000 per person/legal entity per year) in I-Bonds and getting a guaranteed, risk-free 7.12% return for six months. The rate resets twice annually and the next reset on May 1 will be at 9.62% (per linked article below). Those who invested already will get the 9.62% rate starting six months from their date of purchase. If you have not invested yet and do so before end of April, you will get 7.12% for six months from date of purchase and 9.62% for next six months. Have to hold for at least one year, penalty of 3-month interest waiver if sold before 5 years, no penalty after 5 years. Can hold for as long as 30 years. If you have excess cash sitting in a bank account earning next to nothing, this is better than any other risk-free investment (CDs or money market) by orders of magnitude. I-Bonds
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14342495
04/13/22 02:24 PM
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Joined: Feb 2006
Posts: 372
GLBoutdoors
Angler
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Angler
Joined: Feb 2006
Posts: 372 |
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14342503
04/13/22 02:30 PM
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Joined: Mar 2010
Posts: 26,055
T Bird
TFF Guru
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TFF Guru
Joined: Mar 2010
Posts: 26,055 |
Maxed out for the year.
Okie by birth, Texan by choice. USAF "Thunderbirds" Alumni 1985-1989
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14342531
04/13/22 02:43 PM
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Joined: Dec 2007
Posts: 14,749
bloo_rainger
TFF Guru
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TFF Guru
Joined: Dec 2007
Posts: 14,749 |
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14346026
04/17/22 10:56 PM
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Joined: Dec 2007
Posts: 14,749
bloo_rainger
TFF Guru
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TFF Guru
Joined: Dec 2007
Posts: 14,749 |
I’m missing the significance of purchasing before May. I don’t understand why that matter’s.
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: bloo_rainger]
#14346063
04/17/22 11:43 PM
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Joined: May 2002
Posts: 5,763
JCG57
OP
TFF Celebrity
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OP
TFF Celebrity
Joined: May 2002
Posts: 5,763 |
I’m missing the significance of purchasing before May. I don’t understand why that matter’s. If you buy before May you get 7.12% for 6 months from date of purchase and then 9.62% for next six months. If you wait until May to buy you get the 9.62% for the first six months and an unknown return for the next six months. So by buying in April you are guaranteed a 6 month return of 7.12%.
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14346064
04/17/22 11:45 PM
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Joined: Dec 2007
Posts: 14,749
bloo_rainger
TFF Guru
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TFF Guru
Joined: Dec 2007
Posts: 14,749 |
I’m missing the significance of purchasing before May. I don’t understand why that matter’s. If you buy before May you get 7.12% for 6 months from date of purchase and then 9.62% for next six months. If you wait until May to buy you get the 9.62% for the first six months and an unknown return for the next six months. So by buying in April you are guaranteed a 6 month return of 7.12%. Ok, Got it.. Makes sense..
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14346082
04/18/22 12:10 AM
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Joined: Jun 2006
Posts: 1,831
cantcatch5
Extreme Angler
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Extreme Angler
Joined: Jun 2006
Posts: 1,831 |
Can you purchase for kids under 18? I know the growth is not taxed if used for college so it seems like a good place to stick some school money for kids who will be attending soon.
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: cantcatch5]
#14347249
04/19/22 01:47 PM
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Joined: Mar 2010
Posts: 26,055
T Bird
TFF Guru
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TFF Guru
Joined: Mar 2010
Posts: 26,055 |
Can you purchase for kids under 18? I know the growth is not taxed if used for college so it seems like a good place to stick some school money for kids who will be attending soon. Read entire article, especially 529 account section. https://thefinancebuff.com/buy-i-bonds-kids-name.html
Okie by birth, Texan by choice. USAF "Thunderbirds" Alumni 1985-1989
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: cantcatch5]
#14347637
04/19/22 08:44 PM
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Joined: Feb 2009
Posts: 10,438
BThomas
TFF Guru
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TFF Guru
Joined: Feb 2009
Posts: 10,438 |
Can you purchase for kids under 18? I know the growth is not taxed if used for college so it seems like a good place to stick some school money for kids who will be attending soon. I used bonds to fund some of my kids college.
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14347669
04/19/22 09:28 PM
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Joined: Mar 2005
Posts: 41,818
butch sanders
TFF Guru
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TFF Guru
Joined: Mar 2005
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14347960
04/20/22 09:47 AM
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Joined: May 2010
Posts: 9,318
Space
TFF Celebrity
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TFF Celebrity
Joined: May 2010
Posts: 9,318 |
We bought some Series E bonds 25 years ago. Don't know what they are worth now but it is a lot more than I expected.
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Re: PSA - I-Bonds (again) 9.62% May 1st
[Re: JCG57]
#14348079
04/20/22 01:31 PM
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Joined: Feb 2005
Posts: 3,627
fivebites
TFF Team Angler
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TFF Team Angler
Joined: Feb 2005
Posts: 3,627 |
I've never invested in bonds, so pardon the ignorance here. I've read along the way that as interest rates rise, bonds generally go down. It looks like the Fed is going to raise rates and continue until (IF) the current dodo's running the show get inflation under control. For those of you who have done bonds, what's your experience with this case? If $10,000 is max you can put in, then not a really big deal, but heck of a lot better than the $1.68/year I make at the bank on amount.
2019 Chevy Tahoe 2018 Basscat Eyra 250 Proxs PB Wife of 32 years! PB Largemouth 9.56 Ray Roberts
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