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Why/Why not buy I Bonds. #7577495
05/05/22 04:51 PM
05/05/22 04:51 PM
Joined: Mar 2012
Posts: 168
Barbour county,WV
O
Oleo Acres Offline OP
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Barbour county,WV
Yielding 9.62%.interest. Good deal or not. All I see is you lose 3 months interest if cashed before 5 years,and interest income is taxable. Any expert advice?

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7577502
05/05/22 05:03 PM
05/05/22 05:03 PM
Joined: Jan 2007
Posts: 2,288
MD
D
DaveP Offline
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MD
No expert, but I did early first quarter.
LOL, if paying 9.62%, what is inflation rate REALLY at?

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7577507
05/05/22 05:24 PM
05/05/22 05:24 PM
Joined: Mar 2010
Posts: 2,584
wyoming southeast
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danvee Offline
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That rate is good only until the end of Oct. but still may be a good deal better than the bank also you can only put 10K in. Idle money is not a good thing right now some good opportunities are floating around though and more to come.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7577508
05/05/22 05:25 PM
05/05/22 05:25 PM
Joined: Mar 2007
Posts: 33,547
McGrath, AK
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white17 Offline

"General (Mr.Sunshine) Washington"
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McGrath, AK
I think there are variables in this decision. One thing against it is the 10,000$ limit.
Another thing to consider is your age. Also, what opportunities are you passing up by making this investment ?


Mean As Nails
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7577545
05/05/22 06:44 PM
05/05/22 06:44 PM
Joined: Mar 2012
Posts: 168
Barbour county,WV
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Oleo Acres Offline OP
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Barbour county,WV
Thanks. I'm paying into retirement plan at work,have been for years. Start S.S. this summer,still working. Was thinking bonds might be better than just putting some in a savings account. It pays almost nothing.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7578089
05/06/22 10:06 AM
05/06/22 10:06 AM
Joined: Sep 2012
Posts: 1,185
mi. u.p
grapestomper Offline
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mi. u.p
We have a roth and 401k, going to start putting 10,000 each in I bonds. Nothing wrong with that return.

Re: Why/Why not buy I Bonds. [Re: grapestomper] #7578101
05/06/22 10:49 AM
05/06/22 10:49 AM
Joined: Jan 2009
Posts: 99
Olathe , KS
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bwurts Offline
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Olathe , KS
Pretty sure you cant own ibonds in an IRA - only through Treasury direct - I certainly could be wrong though


tough times dont last tough people do

You are the sum of YOUR decisions
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7578135
05/06/22 11:42 AM
05/06/22 11:42 AM
Joined: Dec 2006
Posts: 15,181
Rodney,Ohio
SNIPERB🦝 Offline
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Joined: Dec 2006
Posts: 15,181
Rodney,Ohio
Its gotta be better than the 0.2% CDs at the bank...

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7578145
05/06/22 11:52 AM
05/06/22 11:52 AM
Joined: Jan 2007
Posts: 3,393
Northern Nevada, 31 yrs old
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Bob Offline
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You’d do better over the course of 5 years, and waaay better if you leave it longer than that, with a simple s&p 500 index fund. The average 5 year rate of return on that has been 10.7% AND bonds do not compound, so you’ll leave A LOT of money on the table even if the market severely underperforms.


"I have two guns, one for each of ya."
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7578251
05/06/22 02:25 PM
05/06/22 02:25 PM
Joined: Apr 2021
Posts: 52
Missouri
A
All33 Offline
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Missouri
I bought my yearly quota of I Bonds. As part of a balanced investment program, I think they are great. Then again, I'm getting dang close to 60 and really don't want to ride the market wave more than I need to. Survived Black Monday and the Great Recession and learned to diversify. Would I put all my money in I Bonds if it was allowed? Probably not. I own equities, I bonds, fixed accounts and savings accounts. Bear markets and recessions just plain suck for anyone getting anywhere close to retirement. I think of a I Bond as a better alternative than other bonds, savings accounts or CD's. A year or two or more down the road that may not be the case, but right now it's a good move.

Re: Why/Why not buy I Bonds. [Re: Bob] #7578723
05/06/22 10:35 PM
05/06/22 10:35 PM
Joined: Jan 2016
Posts: 7,971
WI - Wisconsin
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AJE Offline
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WI - Wisconsin
Originally Posted by Bob
You’d do better over the course of 5 years, and waaay better if you leave it longer than that, with a simple s&p 500 index fund. The average 5 year rate of return on that has been 10.7% AND bonds do not compound, so you’ll leave A LOT of money on the table even if the market severely underperforms.

iBonds do offer compounding interest. They offer a great way to diversify too. A $10k iBond is a wise investment in many situations. Nobody is suggesting pulling funds from your stocks & putting it in a bond. I'm still going to keep putting the same amount of $ into stocks, but I will be buying 1 of these low risk iBonds with $ earning next to nothing in the bank. Your point is something for investors to consider though.

Last edited by AJE; 05/06/22 10:50 PM.

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Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7579141
05/07/22 11:00 AM
05/07/22 11:00 AM
Joined: Jan 2013
Posts: 151
Pennsylvania
T
Tim64 Offline
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Pennsylvania
The 9.62% yield is only guaranteed for six months. The CPI is announced in May and November of each year. The yield on the I bond will change as the CPI changes. If you believe inflation will stay high for years, then the investment would be better than an index fund. Knowing you must hold this investment for five years to avoid redemption penalty makes it somewhat risky of opportunity loss. Your final yield is called composite interest which can't be known until maturity of the bond.

Last edited by Tim64; 05/07/22 11:01 AM.
Re: Why/Why not buy I Bonds. [Re: Tim64] #7593680
05/29/22 01:37 AM
05/29/22 01:37 AM
Joined: Jan 2016
Posts: 7,971
WI - Wisconsin
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AJE Offline
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Originally Posted by Tim64
Knowing you must hold this investment for five years to avoid redemption penalty makes it somewhat risky

I'm loving my iBond & am not worried about this at all. I could sell it after only 1 year if I had to, and pay only the most recent 3 months interest as the penalty.

Last edited by AJE; 05/29/22 01:38 AM.

WTA Member
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7593733
05/29/22 07:16 AM
05/29/22 07:16 AM
Joined: Jul 2010
Posts: 84
SE Pennsylvania
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Pafoxman Offline
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SE Pennsylvania
Anyone that can post where/how to purchase for us investment ignorant people?

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7593744
05/29/22 07:30 AM
05/29/22 07:30 AM
Joined: May 2010
Posts: 9,049
mn north of blakely
S
Steven 49er Offline
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Steven 49er  Offline
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Joined: May 2010
Posts: 9,049
mn north of blakely
If 6ou are interested in purchasing Ibonds there are 2 ways.

One is to open an account at the US Treasury https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm and buy them electronically. You will not get a a paper certificate like this way we used to.

Another 8s to use your tax refund,if you qualify for one, to purchase them. Doing it this way they will send you a paper certificate


"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
Re: Why/Why not buy I Bonds. [Re: Bob] #7593775
05/29/22 08:25 AM
05/29/22 08:25 AM
Joined: Aug 2021
Posts: 1,063
MA
F
Flicker Shad Online content
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Posts: 1,063
MA
Originally Posted by Bob
You’d do better over the course of 5 years, and waaay better if you leave it longer than that, with a simple s&p 500 index fund. The average 5 year rate of return on that has been 10.7% AND bonds do not compound, so you’ll leave A LOT of money on the table even if the market severely underperforms.

Bad advice.

Re: Why/Why not buy I Bonds. [Re: jbyrd63] #7593787
05/29/22 08:40 AM
05/29/22 08:40 AM
Joined: Mar 2010
Posts: 3,860
Oklahoma
Blaine County Offline
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Posts: 3,860
Oklahoma
Originally Posted by jbyrd63
Originally Posted by Bob
You’d do better over the course of 5 years, and waaay better if you leave it longer than that, with a simple s&p 500 index fund. The average 5 year rate of return on that has been 10.7% AND bonds do not compound, so you’ll leave A LOT of money on the table even if the market severely underperforms.

You can’t say that with any certainty. NO investment in any stocks can guarantee a return of an I bond RIGHT now! With the recession almost certain and idiots in control don’t be surprised to see you s& p fund down 20-30% by fourth quarter. Read the tea leaves Biden is riding a race horse to the crash of our economy and every time he picks up a pen or opens his mouth he is spurring it on. Friday’s rally is an anomaly because high fuel prices are going to take its toll when the cold air hits and furnaces fire up ! Gas usage and grocery prices will eat up most people’s savings waaaay before the first frost . So better get the guaranteed money while it’s there
I bond is the only thing I know with that return that CANNOT go negative Will never drop below your initial investment


Both of you experts should post screenshots of your investment accounts with holdings, balances and 10 year rate of return.

Scratch out real names and SSNs, of course.


MOLON LABE
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594016
05/29/22 04:14 PM
05/29/22 04:14 PM
Joined: Feb 2007
Posts: 1,133
Ohio
BuckMink Offline
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Ohio
i did online and bought one single I bond... just gonna wait otherwise. got atleast another 30 years to go so im gonna dump it in the s&p index... supposingly my 401k is well rounded with blue chip, small cap and international markets as well as the s&p 500 but somehow Its just as worse if not more then only owning the s&p index which doesnt make sense....4 years ago i made a seperate roth account with ONLY the s&p 500... compared to the "well rounded' 401k from work and it actually provided positive return yeild instead of neg while my other account is a neg 17...clueless

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594468
05/30/22 10:01 AM
05/30/22 10:01 AM
Joined: Feb 2008
Posts: 770
WI
B
BvrRetriever Offline
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WI
One thing to consider is to buy multiple Ibonds of smaller denominations instead of one large one. It provides for more flexibility when cashing out.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594476
05/30/22 10:12 AM
05/30/22 10:12 AM
Joined: May 2010
Posts: 9,049
mn north of blakely
S
Steven 49er Offline
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Steven 49er  Offline
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mn north of blakely
Good point.


"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594488
05/30/22 10:34 AM
05/30/22 10:34 AM
Joined: Dec 2008
Posts: 1,517
eastern washinghton
7
70sdiver Offline
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7

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Posts: 1,517
eastern washinghton
Iif you cash them before 5 years you only lose 3 months interest. Also you must hold them 1 year. if you had purchased an I-bond in 2000 it would be earning 13.39 percent right now.


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Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594714
05/30/22 04:33 PM
05/30/22 04:33 PM
Joined: Aug 2010
Posts: 8,862
Asheville, NC
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charles Offline
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Asheville, NC
No state income tax on US Bond interest.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594732
05/30/22 05:02 PM
05/30/22 05:02 PM
Joined: Apr 2010
Posts: 3,491
Ohio
S
stinkypete Offline
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Joined: Apr 2010
Posts: 3,491
Ohio
I have been buying bonds on Treasury direct since 2006. I bonds. Minimum of 25.00 is allowed. EE Bond Minimum is 50.00. Since low interest rates. I Bond always a better rate. Easy way to set aside for an undisciplined person like myself. When it comes to saving. Guaranteed to double your money after 20yrs. Interest as well. Just another saving tool. Nice way for a young person to start saving. Better than a bank savings account. Better interest IMO.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7594942
05/30/22 09:06 PM
05/30/22 09:06 PM
Joined: Mar 2009
Posts: 649
Deer lodge, MT
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Dean Chapel Offline
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Deer lodge, MT
I wonder what coonman recommends? I'm not buying in until I know.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7595012
05/30/22 10:30 PM
05/30/22 10:30 PM
Joined: Apr 2010
Posts: 3,491
Ohio
S
stinkypete Offline
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stinkypete  Offline
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Ohio
laugh. Dean. That’s funny right there

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7612210
06/25/22 02:59 AM
06/25/22 02:59 AM
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Posts: 7,971
WI - Wisconsin
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AJE Offline
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AJE  Offline
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I'm happy with my iBond.


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Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7627713
07/16/22 12:23 AM
07/16/22 12:23 AM
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WI - Wisconsin
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AJE Offline
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If this outrageous inflation continues, I may buy another iBond later this year.


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Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7627714
07/16/22 12:26 AM
07/16/22 12:26 AM
Joined: May 2010
Posts: 9,049
mn north of blakely
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Steven 49er Offline
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mn north of blakely
If?


"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7627719
07/16/22 12:31 AM
07/16/22 12:31 AM
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WI - Wisconsin
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AJE Offline
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Lol. Yeah, I am afraid you are right

Last edited by AJE; 07/16/22 12:31 AM.

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Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7636675
07/28/22 12:17 AM
07/28/22 12:17 AM
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WI - Wisconsin
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AJE Offline
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It'll be interesting to see what all these interest rate hikes do to inflatiom


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Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7636878
07/28/22 09:52 AM
07/28/22 09:52 AM
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Posts: 2,195
Hancock Co., Indiana
Kart29 Offline
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I just bought my first I-bond last night. I plan to buy several more over the next few months. This is just some money I've had sitting in my savings account earning practically nothing in interest. I'm not replacing the investments into my retirement accounts. But even the little bit of money I have in my savings account should be earning more interest than it is.


What from Christ that soul can sever,
Bound by everlasting bands?
None shall take thee
From the Strength of Israel's hands.

Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7643417
08/05/22 10:50 PM
08/05/22 10:50 PM
Joined: Jan 2016
Posts: 7,971
WI - Wisconsin
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AJE Offline
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I think you'll be happy with it, Kart29.


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Re: Why/Why not buy I Bonds. [Re: Bob] #7643426
08/05/22 11:03 PM
08/05/22 11:03 PM
Joined: Feb 2014
Posts: 9,950
Ky
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jbyrd63 Offline
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Ky
Originally Posted by Bob
You’d do better over the course of 5 years, and waaay better if you leave it longer than that, with a simple s&p 500 index fund. The average 5 year rate of return on that has been 10.7% AND bonds do not compound, so you’ll leave A LOT of money on the table even if the market severely underperforms.

You might want to look into it a little deeper I bonds compound semi annually but is calculated each month if you buy one right now the 9.62 is locked in for 6 months Yes the interest is set again in October but you receive that locked rate. The bond starts earning interest from day one but it doesn’t show up in your account until the 5 th month They show you what you would receive minus the 3 month penalty Once it becomes vested after five years the entire interest will be included on your statement. Look into the formula they use to calculate the interest much better than the way a bank or investment co does it . I’ll try to post the video of the lady showing how I bonds are paid out

Last edited by jbyrd63; 08/05/22 11:09 PM.
Re: Why/Why not buy I Bonds. [Re: Tim64] #7643429
08/05/22 11:05 PM
08/05/22 11:05 PM
Joined: Feb 2014
Posts: 9,950
Ky
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jbyrd63 Offline
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Ky
Originally Posted by Tim64
The 9.62% yield is only guaranteed for six months. The CPI is announced in May and November of each year. The yield on the I bond will change as the CPI changes. If you believe inflation will stay high for years, then the investment would be better than an index fund. Knowing you must hold this investment for five years to avoid redemption penalty makes it somewhat risky of opportunity loss. Your final yield is called composite interest which can't be known until maturity of the bond.

You will know your interest it’s on your statement in your account

Re: Why/Why not buy I Bonds. [Re: Bob] #7643565
08/06/22 07:24 AM
08/06/22 07:24 AM
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Posts: 9,950
Ky
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jbyrd63 Offline
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Ky
Originally Posted by Bob
You’d do better over the course of 5 years, and waaay better if you leave it longer than that, with a simple s&p 500 index fund. The average 5 year rate of return on that has been 10.7% AND bonds do not compound, so you’ll leave A LOT of money on the table even if the market severely underperforms.


One thing you left out is With an I bond you cannot loose money! It will never go below your investment! How many stocks in that S&P you recommend can say that ?

Last edited by jbyrd63; 08/06/22 07:24 AM.
Re: Why/Why not buy I Bonds. [Re: Oleo Acres] #7644161
08/07/22 12:17 AM
08/07/22 12:17 AM
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WI - Wisconsin
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AJE Offline
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I don't have confidence this new bill the Senate passed will solve inflation


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