Re: Why/Why not buy I Bonds.
[Re: Oleo Acres]
#7594488
05/30/22 10:34 AM
05/30/22 10:34 AM
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Joined: Dec 2008
Posts: 1,749 eastern washinghton
70sdiver
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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]
#7627719
07/16/22 12:31 AM
07/16/22 12:31 AM
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Joined: Jan 2016
Posts: 10,074 WI - Wisconsin
AJE
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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]
#7636878
07/28/22 09:52 AM
07/28/22 09:52 AM
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Joined: Jan 2007
Posts: 2,333 Hancock Co., Indiana
Kart29
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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.
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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
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Joined: Feb 2014
Posts: 13,135 Ky
jbyrd63
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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. 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.
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Re: Why/Why not buy I Bonds.
[Re: Tim64]
#7643429
08/05/22 11:05 PM
08/05/22 11:05 PM
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Joined: Feb 2014
Posts: 13,135 Ky
jbyrd63
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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
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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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Joined: Feb 2014
Posts: 13,135 Ky
jbyrd63
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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. 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.
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Re: Why/Why not buy I Bonds.
[Re: Oleo Acres]
#7656693
08/23/22 10:59 PM
08/23/22 10:59 PM
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Joined: Jan 2016
Posts: 10,074 WI - Wisconsin
AJE
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I predict new iBond purchases will be popular at least throughout the rest of the year. I wish COLA raises at work would keep up with inflation.
Last edited by AJE; 08/23/22 10:59 PM.
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