Announcement

Collapse
No announcement yet.

Anyone buying I bonds this year? Fixed rate .5%

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Anyone buying I bonds this year? Fixed rate .5%

    I have never bought I bonds before but they seem more appealing now that the return is .5% above inflation.  I was thinking of buying 20k this year for myself and spouse.  Any downsides for high bracket investors?

  • #2
    downsides, no. if you need FI in taxable they are an easy option.

    Comment


    • #3
      I’ve been using mostly muni intermed fund from vanguard but am now thinking of buying I bonds.

      Comment


      • #4
        Loss of liquidity x 1 yr is main downside.

        Comment


        • #5
          I will be buying I-bonds before the end of the year as part of my bond allocation.  Safe, reasonable rate, tax deferred.

          Comment


          • #6
            How does everyone who is buying feel about dealing with treasury directs website? I’ve heard not great things about it from bogleheads

            Comment


            • #7




              How does everyone who is buying feel about dealing with treasury directs website? I’ve heard not great things about it from bogleheads
              Click to expand...


              Its clunky but not hard. Like vanguard....

              Comment


              • #8
                agree it’s fine.

                Way easier to buy future auction T bills from TD than a brokerage

                Comment


                • #9
                  TD in this case being Treasury Direct, not TD Ameritrade. (Took me a few seconds to figure that one out, even with the context.)

                  Comment


                  • #10
                    slightly related question. I have several i-bonds left from residency era now worth about 10K.  Compared to a portfolio of ballpark $1 million.  Seems trivial, I mostly just forget they are there, since I have to log in to Treasury Direct.  Their fixed yield is 2.75% on average, so around 4-5% currently.  I figure it's hardly worth it to sell, I wouldn't get a guaranteed better return.

                    Comment


                    • #11




                      slightly related question. I have several i-bonds left from residency era now worth about 10K.  Compared to a portfolio of ballpark $1 million.  Seems trivial, I mostly just forget they are there, since I have to log in to Treasury Direct.  Their fixed yield is 2.75% on average, so around 4-5% currently.  I figure it’s hardly worth it to sell, I wouldn’t get a guaranteed better return.
                      Click to expand...


                      Nope don't sell unless you have a year of low taxes or education to pay for,

                      Comment


                      • #12
                        Any downsides for high bracket investors?

                        I love them for high bracket investing. Redeem them on your own timeline, and pay the taxes on your own strategy.

                        Comment


                        • #13
                          I’m not buying Ibonds. Nothing against them per se, but my IPS is committed to index funds and I don’t see any need to add complexity. As an aside, I’m also settling an estate and observe it is a pain tracking down individual bonds. (Yes, I know, TD has an account. Fine if executor knows it is there.)

                          Comment


                          • #14
                            “I’m also settling an estate and observe it is a pain tracking down individual bonds. (Yes, I know, TD has an account. Fine if executor knows it is there.)”

                            At least keep a list of active accounts (name & number).
                            Mark files closed when you zero them out. I found an uncashed dividend check from 1985, about $20.
                            Two different account statements from Mellon Bank dated in the 70’s. The one had been closed out in the grandmothers name. I had been “told” by a relative everything was closed out by the attorney.
                            Phone call was able to get “active “, that’s all. Two new court documents and a medallion signature they could talk. I was afraid it was going to be $5. Nope, over $140k. It turns out Mellon then set up an account for each investment. It was one mutual fund. They had asked for one of them instead of everything by social security number.

                            Comment

                            Working...
                            X