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06-16-2022 , 05:32 AM
#1
FallawayJumper's Avatar
FallawayJumper
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adept
Join Date: Nov 2019 Posts: 1,103
_______________


highlights:


currently paying 9.62% interest
interest rate adjusted every 6 months
it's a 30 year bond
Treasury limits purchases to $10K once each year
a savings bond that earns interest combining fixed rate and inflation rate


downside:


cannot cash out for one year
if you cash out before 5 years you lose 3 months interest



my personal rating__________________excellent deal________________*****



https://www.treasurydirect.gov/indiv...res_ibonds.htm



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06-16-2022 , 07:06 AM
#2
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FallawayJumper
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adept
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_________________



The interest that your savings bonds earn is subject to: federal income tax, but not to state or local income tax any federal estate, gift, and excise taxes as well as any state estate or inheritance tax


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06-16-2022 , 09:11 AM
#3
pokerfan655
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Eh who really cares - 9.62% is great but 10k limit, if you cashout before 5 years you lose 3 months interest, and that rate adjusts. I'm assuming it'll come down every 6 months so with all things considered who cares.
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06-16-2022 , 09:50 AM
#4
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Quote:
Originally Posted by pokerfan655
Eh who really cares - 9.62% is great but 10k limit, if you cashout before 5 years you lose 3 months interest, and that rate adjusts. I'm assuming it'll come down every 6 months so with all things considered who cares.

Eh - who really cares - I really care - I just bought one

if you're married or have a partner you can get 2 - $20K per year

if you lose 3 months interest because you want to cash that means the rate you got for the year was 7.52% - if you held it for one year and the rate was the same - it will adjust downward but not that fast

at at time when banks are still paying less than 1% on savings accounts - looks real good to me

most investors want to have at least some portion of their portfolio that is very low risk or no risk

you don't like it___________________Eh



.
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06-16-2022 , 10:33 AM
#5
pocket_zeros
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Join Date: Jun 2008 Posts: 4,390
Quote:
Originally Posted by FallawayJumper
Eh - who really cares - I really care - I just bought one

if you're married or have a partner you can get 2 - $20K per year

if you lose 3 months interest because you want to cash that means the rate you got for the year was 7.52% - if you held it for one year and the rate was the same - it will adjust downward but not that fast

at at time when banks are still paying less than 1% on savings accounts - looks real good to me

most investors want to have at least some portion of their portfolio that is very low risk or no risk

you don't like it___________________Eh



.
You can buy an additional $5k/year if you apply your tax refund to it (you can overpay estimated taxes to assure you get a refund).

Unofficially many have been able to buy much more than $10k/year by buying gift bonds for their spouse but only transferring $10k of the gift to their spouse per year. Before transferring the bond sits in a custodial account (yours) earning interest but with no assigned "owner".
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06-26-2022 , 09:50 AM
#6
pokerfan655
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old hand
Join Date: Jun 2012 Posts: 1,386
Quote:
Originally Posted by FallawayJumper
Eh - who really cares - I really care - I just bought one

if you're married or have a partner you can get 2 - $20K per year

if you lose 3 months interest because you want to cash that means the rate you got for the year was 7.52% - if you held it for one year and the rate was the same - it will adjust downward but not that fast

at at time when banks are still paying less than 1% on savings accounts - looks real good to me

most investors want to have at least some portion of their portfolio that is very low risk or no risk

you don't like it___________________Eh



.
This isn't an investment vehicle it's a way to protect your money from inflation. You're not making anything on this - all they're saying is the current inflation rate is 9.62% so we'll match that so your dollar is worth the same next year. Listen it's still not a bad deal but more importantly you should be figuring out how to use that 10k towards a business or some investing that will offer returns to beat inflation - that is the only way to get ahead. If your returns just match inflation every year you're not making money.
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06-26-2022 , 12:14 PM
#7
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SoCalQuest
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Quote:
Originally Posted by pokerfan655
This isn't an investment vehicle it's a way to protect your money from inflation. You're not making anything on this - all they're saying is the current inflation rate is 9.62% so we'll match that so your dollar is worth the same next year. Listen it's still not a bad deal but more importantly you should be figuring out how to use that 10k towards a business or some investing that will offer returns to beat inflation - that is the only way to get ahead. If your returns just match inflation every year you're not making money.
You aren't making anything in real terms, but you are taking zero risks to maintain purchasing power. Risk free adjusted rate is the best you'll get during inflationary times.
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06-26-2022 , 02:17 PM
#8
onemoretimes
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Join Date: Sep 2012 Posts: 3,535
Quote:
Originally Posted by pokerfan655
This isn't an investment vehicle it's a way to protect your money from inflation. You're not making anything on this - all they're saying is the current inflation rate is 9.62% so we'll match that so your dollar is worth the same next year. Listen it's still not a bad deal but more importantly you should be figuring out how to use that 10k towards a business or some investing that will offer returns to beat inflation - that is the only way to get ahead. If your returns just match inflation every year you're not making money.

But all the "investing" was way over inflated with crazy PE's in the stock market and with the sudden rise in interest rates, real estate is a tough bet. So what's better then a risk free 9.62% at this time? NOTHING. If people could put more then $10k per year in they would have it ALL in there.

Also, most people have money because they make money from doing something so going out and starting a business to beat inflation isn't an option because they are already busy doing something.
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06-27-2022 , 09:38 AM
#9
ddmullet02
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journeyman
Join Date: Apr 2014 Posts: 208
Quote:
Originally Posted by FallawayJumper
Eh - who really cares - I really care - I just bought one

if you're married or have a partner you can get 2 - $20K per year

if you lose 3 months interest because you want to cash that means the rate you got for the year was 7.52% - if you held it for one year and the rate was the same - it will adjust downward but not that fast

at at time when banks are still paying less than 1% on savings accounts - looks real good to me

most investors want to have at least some portion of their portfolio that is very low risk or no risk

you don't like it___________________Eh



.
Can you buy an additional $10k per kid if you have kids?
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06-27-2022 , 11:51 AM
#10
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Quote:
Originally Posted by ddmullet02
Can you buy an additional $10k per kid if you have kids?
Yes, 10k per social. I have a family of four and did 4 of them in December and 4 more in Jan.
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06-27-2022 , 12:01 PM
#11
ddmullet02
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Quote:
Originally Posted by SoCalQuest
Yes, 10k per social. I have a family of four and did 4 of them in December and 4 more in Jan.
Nice, thanks.
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