The I Bond Thread

[jldavid47]

The 4.28% rate is for new purchases - 1.30% fixed rate plus 2.98% variable rate.

 

[foxfirev5]

I went all in for this year in January. Hopefully the 1.3% fixed will hold for next January. In any event I'm still a buyer. As a retiree it's the most basic form of insurance.

 

[Koolau]

^^^^^^^

Sounds pretty good!

 

[Chuckanut]

Series I Savings Bonds

4.28%
This includes a fixed rate of 1.30%

For I bonds issued May 1, 2024 to October 31, 2024.

 

[GenXguy]

Series I Savings Bonds

4.28%
This includes a fixed rate of 1.30%

For I bonds issued May 1, 2024 to October 31, 2024.

I just purchased in late April with the same fixed rate of 1.30% and a composite rate of 5.27% for the first 6 months.

 

[jldavid47]

For those of you that use it, the eyebonds.info website was updated yesterday to reflect the latest rate change.

 

[Mulligan]

For those that are sitting on 0% fixed IBonds waiting to slowly transfer yearly to redeem, I have found that unnecessary to wait twice now. I just had my GF move my 18k gifted purchase limit back to me, and after I purchased my annual limit…No problem, just like last year when I dumped all my 0% fixed held inside GF’s giftbox. TD lets you send them all out at once.

 

[Sunrise_Ray]

Folks, I have two big batches of Inflation Bonds that I had purchased in the last 3 years in my name and my wife's name. Have not seen the returns at all, and do not know the rules of the bonds either.

What are you doing, suggesting, and also the outlook? It is time to get it out of there and put it into Fidelity Money Market (SPAXX) earning close to 5%+ before tax equiv yield?

These bonds were a great idea, and it had to be purchased electronically from the Treasury site. I am sure the interest will generate a 1099-INT but hoping that it is still earning something decent (did not check yet).

Thanks for any thoughts of what you have done knowing that inflation is definitely targeted to 2% although it is as stubborn as a teenager wanting to go to a late night party! Hoping that inflation goes down, since it is hurting a lot of people in the low-middle income range (know this from my rental property).

Ken

PS: We should start a discussion on what is the best strategy with Rental Properties as we get close to or into retirement (just a thought, but too new to this forum and do not want to become too bold).

 

[audreyh1]

The information about the current value of your IBonds is there in your TD account if you drill down far enough. We hold a good chunk of IBonds as a long term investment along with several other types of fixed income. I don’t worry about the year to year value much.

 

[Gumby]

Folks, I have two big batches of Inflation Bonds that I had purchased in the last 3 years in my name and my wife's name. Have not seen the returns at all, and do not know the rules of the bonds either.

What are you doing, suggesting, and also the outlook? It is time to get it out of there and put it into Fidelity Money Market (SPAXX) earning close to 5%+ before tax equiv yield?

These bonds were a great idea, and it had to be purchased electronically from the Treasury site. I am sure the interest will generate a 1099-INT but hoping that it is still earning something decent (did not check yet).

Thanks for any thoughts of what you have done knowing that inflation is definitely targeted to 2% although it is as stubborn as a teenager wanting to go to a late night party! Hoping that inflation goes down, since it is hurting a lot of people in the low-middle income range (know this from my rental property).

Ken

PS: We should start a discussion on what is the best strategy with Rental Properties as we get close to or into retirement (just a thought, but too new to this forum and do not want to become too bold).

This site will help you with the value of your I-Bonds. You just click the month you bought your I-Bond and it tells you total value. Just remember that if you have held for less than 5 years, you lose the last three months of interest, so look for the value three months before you actually sell. You may have to do some math if you didn't buy $10k at a crack. Everything above the purchase price is regular interest federally taxable in the year you sell (but not taxable by your state).

I Bonds Home $10,000

Series I Savings Bonds Growth in Value

eyebonds.info

 

[Chuckanut]

Comparing Ibonds to MM fund is like comparing apples to oranges. One is intended for long term inflation protected savings with a one year hold on getting your money back and a penalty for withdrawing in less than five years. The other is a very liquid short term investment that offer no guaranteed inflation protection.

Some people use Ibonds for shorter term money, but to successfully do so they needed to understand the details of how the bonds work, especially when to buy and sell them. It’s not hard but it does take some time and effort.

Two tools for different jobs. What job will your Ibonds be working on? And your money in MM funds?

 

[Al18]

I’ve been converting CD’s to IBonds for 4 years and don’t plan to stop. Unlike CD’s there are no early withdrawal penalties except if you cash in before 5 years. With IBonds, there are no state taxes due ever. You don’t need to pay Federal tax until you cash in the CD. With IBonds, the interest rate resets every 6 months and they continue to pay interest for 30 years.

You can check your IBond balance online - interest posts the 1st of every month and the interest rate for each IBond is listed. Note your interest doesn’t show for the first 3 months. My IBonds are paying between 2.96% and 5.27%.

I use IBonds for large, lumpy expenses such as buying a new car.

 

[GenXguy]

Comparing Ibonds to MM fund is like comparing apples to oranges. One is intended for long term inflation protected savings with a one year hold on getting your money back and a penalty for withdrawing in less than five years. The other is a very liquid short term investment that offer no guaranteed inflation protection.

One key reason I got I Bonds was to reduce my MAGI income for several years while retaining some purchasing power for use several years from now. I recently added a MYGA for the purpose.

 

[jldavid47]

Folks, I have two big batches of Inflation Bonds that I had purchased in the last 3 years in my name and my wife's name. Have not seen the returns at all, and do not know the rules of the bonds either.

You should never invest in anything you do not understand.

 

[Sunrise_Ray]

Pretty decent rate where we do not have to pay for one of the taxes in a high state tax residency.

Thanks.

Ken

 

[braumeister]

Threads merged.