User Panel
[#1]
Quoted: Too late for those wanting the previous rate locked in for 6 months, but FYI there is a loophole to the $10,000 / yr. If there is a decent rate that will last at least a year (and then add three months so you don't lose the three months at a decent rate), you can always gift ibonds to someone else, such as your wife. The gifts stay in your account earning the current rates, just as if they were purchased for you, and won't count towards the receiver of the gift's yearly purchase limit of $10,000 until they are gifted. So next year or even the year after that person wouldn't have to purchase their $10,000 and you would send the gift ibonds that have been sitting in your account, If you wanted you could buy $20,000 ,etc.. in ibonds and gift $10,000 for your wife and $10,000 for a kid for next year, yet the interest would be the current rates now. View Quote last week, i bought 10k for myself, my wife bought 10k for herself... 2 separate accounts. If I read this right, she can buy me a 10k gift and i can buy her a 10k gift? can we do this yearly until this becomes less attractive? |
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[#2]
I think this might be for me. I'm in a position where I might need cash for purchasing the family farm at some point, so putting 10k into this for my wife and I seems like a great way to hedge against inflation and to keep money available. Thanks guys.
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[#3]
Quoted: thats great. thanks for sharing. I have a question. @broncobisley1 last week, i bought 10k for myself, my wife bought 10k for herself... 2 separate accounts. If I read this right, she can buy me a 10k gift and i can buy her a 10k gift? can we do this yearly until this becomes less attractive? View Quote you can buy as many 10k gifts as you want. the problem becomes that the recipient can only have 10k in bonds per year so the year that you give the ibond that person will not be able to buy her ibonds |
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[#4]
Quoted: you can buy as many 10k gifts as you want. the problem becomes that the recipient can only have 10k in bonds per year so the year that you give the ibond that person will not be able to buy her ibonds View Quote View All Quotes View All Quotes Quoted: Quoted: thats great. thanks for sharing. I have a question. @broncobisley1 last week, i bought 10k for myself, my wife bought 10k for herself... 2 separate accounts. If I read this right, she can buy me a 10k gift and i can buy her a 10k gift? can we do this yearly until this becomes less attractive? you can buy as many 10k gifts as you want. the problem becomes that the recipient can only have 10k in bonds per year so the year that you give the ibond that person will not be able to buy her ibonds ok great. i figure i can buy them as long as the interest stays attractive, then skip a year or two or whatever to cash out.. Be aware that there is a 16000 dollar gift tax exclusion.. so stay under that if you don't want to pay... the giver pays this. I found the following statement in a article about this. You can buy a gift for your spouse and hold it in your gift box. Have your spouse do the same for you. Wait until interest rates drop and the two of you don't buy I Bonds anymore. Then you can deliver the gift to each other. The older gift bonds earned the high interest rates in the years past and they have aged enough for immediate cashout. |
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[#5]
Quoted: Too late for those wanting the previous rate locked in for 6 months, but FYI there is a loophole to the $10,000 / yr. If there is a decent rate that will last at least a year (and then add three months so you don't lose the three months at a decent rate), you can always gift ibonds to someone else, such as your wife. The gifts stay in your account earning the current rates, just as if they were purchased for you, and won't count towards the receiver of the gift's yearly purchase limit of $10,000 until they are gifted. So next year or even the year after that person wouldn't have to purchase their $10,000 and you would send the gift ibonds that have been sitting in your account, If you wanted you could buy $20,000 ,etc.. in ibonds and gift $10,000 for your wife and $10,000 for a kid for next year, yet the interest would be the current rates now. View Quote I missed the previous rate. Is it still worth it for the current rate? Say I purchased at the current rate (9.62) I would get that for six months then whatever the new rate is Nov 1 for six months? |
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[#6]
Quoted: I missed the previous rate. Is it still worth it for the current rate? Say I purchased at the current rate (9.62) I would get that for six months then whatever the new rate is Nov 1 for six months? View Quote View All Quotes View All Quotes Quoted: Quoted: Too late for those wanting the previous rate locked in for 6 months, but FYI there is a loophole to the $10,000 / yr. If there is a decent rate that will last at least a year (and then add three months so you don't lose the three months at a decent rate), you can always gift ibonds to someone else, such as your wife. The gifts stay in your account earning the current rates, just as if they were purchased for you, and won't count towards the receiver of the gift's yearly purchase limit of $10,000 until they are gifted. So next year or even the year after that person wouldn't have to purchase their $10,000 and you would send the gift ibonds that have been sitting in your account, If you wanted you could buy $20,000 ,etc.. in ibonds and gift $10,000 for your wife and $10,000 for a kid for next year, yet the interest would be the current rates now. I missed the previous rate. Is it still worth it for the current rate? Say I purchased at the current rate (9.62) I would get that for six months then whatever the new rate is Nov 1 for six months? Yes it's worth it. Correct, you get the new rate for 6 months and then whatever it is after that.. It never goes negative, so you can't lose any of your money. |
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[#8]
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[#9]
Quoted: It's 9.62 for 6 months. In about 5.9 months they will announce it. View Quote View All Quotes View All Quotes Quoted: Quoted: When do we find out what the new rate will be? It's 9.62 for 6 months. In about 5.9 months they will announce it. The web site was just updated today. At 0800 EST it was still showing the rate info through 04/30. |
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[#10]
just think how bad inflation really is if they're willing to set the bonds that high
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[#11]
Quoted: The web site was just updated today. At 0800 EST it was still showing the rate info through 04/30. View Quote View All Quotes View All Quotes Quoted: Quoted: Quoted: When do we find out what the new rate will be? It's 9.62 for 6 months. In about 5.9 months they will announce it. The web site was just updated today. At 0800 EST it was still showing the rate info through 04/30. Sorry. I misunderstood his question. |
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[#12]
Quoted: new I-bond 6 month rate starting May 1st 2022 will be 9.62% buy now before May and get 6 Months at the current 7.1 % then 6 months at 9.62% for an annual yield of 8.36% glad i bought last year and I am buying the max this year View Quote Hope in 6 months the rate is still good. Btw, thanks to whoever mentioned them a few months ago. Nice way to keep 20k at a better rate than a savings account. |
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[#13]
are these i bonds still something to get into at this time , any guidance would be apreciated
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[#15]
Quoted: Locked for a year which is why I only moved a portion of my emergency fund over. I might move some more over in six months, will have to see what the savings account interest rates versus the CPI are doing. Also if you sell before five years you lose the prior quarter's interest. View Quote but you continue to get compounded interest? for 5 years? |
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[#16]
is treasury direct really the site we use? looks like 3rd grader made it
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[#17]
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[#18]
Quoted: but you continue to get compounded interest? for 5 years? View Quote View All Quotes View All Quotes Quoted: Quoted: Locked for a year which is why I only moved a portion of my emergency fund over. I might move some more over in six months, will have to see what the savings account interest rates versus the CPI are doing. Also if you sell before five years you lose the prior quarter's interest. but you continue to get compounded interest? for 5 years? This link was posted on pg 1 but it looks like a lot of people missed it. It explains exactly how the interest rate changes work. https://tipswatch.com/2022/04/13/ready-to-invest-in-i-bonds-for-the-first-time-my-advice-act-quickly/ |
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[#19]
Quoted: per person. also, you can buy gifts for your spouse... the answers are all on this page a few posts above. @bakkbakk View Quote View All Quotes View All Quotes Quoted: Quoted: 10k per person?/household? the answers are all on this page a few posts above. @bakkbakk There are other ways to buy more if you are so inclined. You can buy $10,000 personally. How to Buy I Bonds (Series I Savings Bonds): Soup to Nuts You can also buy $10,000 in your trust, if you have one. Buy More I Bonds in a Revocable Living Trust You can also buy $10,000 in your business, if you have one. Buy I Bonds for Your Business: Sole Proprietorship, LLC, S-Corp Each is considered a different entity by Treasury Direct. |
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[#20]
Started buying I-bonds this month. 9.62% beats anything my bank offers. My wife only makes 3% on her stock. Buying a few shares of VOO periodically since the share price is down.
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[#21]
If you are maxed out for Ibonds, TIPS are paying a real yield again. Only about .2% but that's better than the Ibond rate. Personally I wouldn't own TIPS outside of a retirement account though since you get taxed on interest before you actually get the interest. I think they call that phantom interest.
https://tipswatch.com/2022/05/19/10-year-tips-reopening-auction-gets-a-real-yield-of-0-232-a-strong-result-for-investors/ |
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[#22]
In that article they admitted that I bonds still have a slight Edge over TIPS because of the deflation protection but if you're looking to do something more diverse than that's a good option
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[#24]
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[#26]
tag.
https://districtcapitalmanagement.com/i-bonds/#How_long_do_you_have_to_hold_an_I_Bond https://districtcapitalmanagement.com/i-bonds/#How_long_do_you_have_to_hold_an_I_Bond |
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[#27]
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[#28]
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[#30]
So the wife and I can each purchase $10k and then each business can purchase another $10k for a total of $40k?
Seems too good to be true |
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[#31]
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[#33]
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[#34]
I copied this from a website I was looking at. But I have a dumb question. So your making 9 percent or whatever the current rate is every month, and that’s added to the total amount, right. So does that compound? I mean are you getting interest on the total or just making interest on the initial 10 k ?
Do I Bonds earn interest monthly? Yes, I Bonds earn interest monthly. However, you only get access to those interest payments when you cash out the bonds. The interest you earn is added to the value of the bond twice per year (May and November). |
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[#35]
The 9.62% rate is per year not per month. Interest is just compounded monthly.
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[#36]
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[#37]
Quoted: I copied this from a website I was looking at. But I have a dumb question. So your making 9 percent or whatever the current rate is every month, and that’s added to the total amount, right. So does that compound? I mean are you getting interest on the total or just making interest on the initial 10 k ? Do I Bonds earn interest monthly? Yes, I Bonds earn interest monthly. However, you only get access to those interest payments when you cash out the bonds. The interest you earn is added to the value of the bond twice per year (May and November). View Quote I believe the I-bond interest rate is reset every 6 months. It can go up or down depending on economic conditions. |
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