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Jonathan
Jonathan (@guest_1740286)
November 20, 2023 08:27

I’m a bit confused on why I would sell off in December. I bought 10k in march 2022 and now I’m at 11,148.00 so looks like I’m still waiting for the third period of high interest

Jay
Jay (@guest_1749922)
December 2, 2023 19:24

If you’re content with the new variable rate you don’t have to sell. It’s only a recommendation because the last 3mo. offset period was Sept, Oct, Nov at 3.40%, which is lost if redeemed for bonds that are less than 5 years old.

Most of us are content to lose 3mo. interest at 3.40%.

Curmudgeon
Curmudgeon (@guest_1733884)
November 9, 2023 16:17

Is the $10k/year figure a net number, or absolute? What I mean is, if I buy $10k in i-bonds in January, sell $7k of them in July, could I buy that $7k back in December, or do the sales not count towards the $10k limit?

Celia
Celia (@guest_1733887)
November 9, 2023 16:20

10k purchase limit per calendar year.

Besides, you can’t sell within 12 months.

Beltway
Beltway (@guest_1728587)
November 2, 2023 08:57

Charlie
Charlie (@guest_1728348)
November 1, 2023 22:34

So if you have the reduced 3.97 with no fixed: It looks like it would be worth paying the 3 month penalty. it will pay for itself within a year assuming the current inflation rate. (Obviously you want to be at the 3.97 for 3 months so that your penalty is at the low rate.)

Personally I think I will cancel and look at some high yield savings and decide if I want to invest back in Ibonds.

EU
EU (@guest_1728908)
November 2, 2023 16:58

Agreed, was a good inflation mitigation measure for the masses, but has too many limitations now.

It can only track “CPI” if the administration is honest and is willing to share the true CPI data rather than using all sorts of tricks or outright lying in order to make the number look better.

Not to mention that the limit is always on the nominal amount of 10000, while that 10000 might be worth less than 5000 in real terms now depending on your actual purchasing needs.

Thus basically an instrument with poor performance and poor liquidity (hard to get out, and hard to get in) at this point.

Beltway
Beltway (@guest_1729525)
November 3, 2023 14:08

For whatever reason, Treasury Direct reports that my older bonds hitting their 6-month mark just reset to 3.94%, not 3.97%.

Eric 🔗
Eric 🔗 (@guest_1729544)
November 3, 2023 14:29

Beltway,

A couple of people commented in this post that 3.94% is the correct rate. I’m not sure where  Chuck got 3.97% from.

Beltway
Beltway (@guest_1729546)
November 3, 2023 14:34

3.97% is, in fact, the correct variable portion for *new* bonds, which earn 1.3% + 3.97% = 5.27%. See the chart at https://www.treasurydirect.gov/files/savings-bonds/i-bond-rate-chart.pdf

Why the disparity? Beats me.

JD
JD (@guest_1729592)
November 3, 2023 15:40

3.94% is the new variable rate and also the composite rate if your fixed rate is 0%. 3.97% is the rate people incorrectly assume is the new variable rate using your math which is a reasonable approximation but not exact.

Eric 🔗
Eric 🔗 (@guest_1732949)
November 8, 2023 17:20
  JD

Beltway JD

I just logged into TD and noticed the message “Series I 5.27 % (includes fixed rate of 1.30 %)” displayed. So it seems that  Chuck was correct after all.

JD
JD (@guest_1732992)
November 8, 2023 18:01

The exact formula for the composite rate is (2*variable + fixed + fixed*variable).
Currently, variable=1.97% and fixed=1.3%, so fixed*variable gives you the mystery 0.03% (rounded up from .0002561). The difference is negligible which is probably why it’s often glossed over.
For the recent bonds with a .9% and .4% fixed rate, this portion is .02% and .01% respectively.

killdozer
killdozer (@guest_1728105)
November 1, 2023 17:14

The US government counterfeits the currency more then anything they’ll ever pay in interest, and they have no credibility of ever giving accurate inflation numbers. Ive found it better to just park cash in broker money market funds and selling puts on high divvie stocks.

jessie
jessie (@guest_1729314)
November 3, 2023 10:54

The “Federal” Reserve which holds the most bonds, is a private group and also controls the U.S. money supply.

killdozer
killdozer (@guest_1729566)
November 3, 2023 15:01

The Federal Reserve created by congress is controlled by and finances US governments money printing. The chairman of the fed is elected by the president for goodness sake.

Frey
Frey (@guest_1729568)
November 3, 2023 15:06

The Chairman of the Federal Reserve is nominated by the President and has to be confirmed by Congress.

LNK
LNK (@guest_1730178)
November 4, 2023 13:45

But you are still parking your cash in US currency and most money market contained short term US Treasury bills issued by the US government which you accused of no credibility.

If you are any serious .
You need to convert all of your US currency in other country currency or buy PHYSICAL GOLD/SLIVER and put it under your bed, also I suggest you buy a few barrels of crude oil snd store it in your bathtube.

Avoid US currency at all cost since the government counterfeits the currency more then anything🤣

JD
JD (@guest_1730242)
November 4, 2023 15:50

Lmao, don’t crush the old man’s dreams…

adam d
adam d (@guest_1732437)
November 8, 2023 05:01

bullish that you didnt mention btc as an option. after etf, those who despise or ignore it will unknowingly have allocation through their tardfi money manager and be none the wiser.

Puck
Puck (@guest_1732479)
November 8, 2023 07:12

Taking investment advice from a bike messenger….priceless.

adam d
adam d (@guest_1734230)
November 10, 2023 02:33

who are you referring to

frogger
frogger (@guest_1728024)
November 1, 2023 16:23

Are these tax free as you can basically get short term treasury fund paying the same thing. And you get dividends each month.

TDD
TDD (@guest_1727893)
November 1, 2023 13:52

Since you have 6 months to get this 1.3% rate, you might as well wait until mid-April to see where CPI goes. If CPI is trending down further, you might be better off waiting until May to buy an i-Bond as the fixed rate will go even higher. If CPI is trending up (which is what I expect to occur), then you will be rocking that 1.3% rate with higher variable rates going forward and you should lock it in before end-of-April before a lower fixed rate is announced.

Mitchell LeVett
Mitchell LeVett (@guest_1728653)
November 2, 2023 10:39

You can only do 10k a year. Assuming you have high wealth buying now makes sense.

usernamechuck
usernamechuck (@guest_1727881)
November 1, 2023 13:35

wouldn’t it be 4.47%? Edit – oh i get it, never mind. So even during the 9.62% moment, the fixed rate was 0%. Sigh.

tamago
tamago (@guest_1727846)
November 1, 2023 12:36

i just want to get rid of ibonds because of how it doesn’t play nicely with plaid..yes a very sad reason

Jared
Jared (@guest_1728053)
November 1, 2023 16:44

That’s an absolutely pathetic reason.

hrney
hrney (@guest_1729962)
November 4, 2023 03:45

is it that hard to enter 10k or 20k or 30k or 40k in mint?

Ian Pearson
Ian Pearson (@guest_1741831)
November 21, 2023 17:55

It will be come January 1, 2024.

Joey
Joey (@guest_1730161)
November 4, 2023 13:22

Lol. So do you just ignore any bank bonuses if they don’t have Plaid functionality?

Ace M
Ace M (@guest_1731395)
November 6, 2023 16:43

i didnt even know you could get a – vote in this site lol
it shows upvote only for me there is no downvote button

most banks have plaid functionality, i churn alot and havent come across any really that dont, only treasury does not

Tony
Tony (@guest_1727811)
November 1, 2023 11:26

I purchased $10,000 I-bond on 01-01-2022, and today the interest rate showing on treasurydirect website is 3.38% (I think I do not have the fixed rate), is it a good time to sell it today? I can get a 5% CD rate.

Betelgeuse ㊙️
Betelgeuse ㊙️ (@guest_1727815)
November 1, 2023 11:34

Yeah the fixed rate is set when you bought your i-bond and won’t change.