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

[Raddoc123]

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?

[Peds]

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

[Raddoc123]

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

[jacoavlu]

Loss of liquidity x 1 yr is main downside.

[GXA]

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

[Eagleeyes]

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

[Peds]

Eagleeyes wrote:

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

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

[jacoavlu]

agree it’s fine.

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

[Hank]

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

[gap55u]

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.

[Peds]

GPGP wrote:

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,

[jz]

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.

[Larry Ragman]

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.)

[Tim]

“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.