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Started By
Message
3
Posted on 11/15/21 at 2:06 pm to BRIllini07
quote:
Do not use it for investment, as it is only a hedge against inflation.
sure I get it
but the rate will keep changing. who knows what it will be in April 2022
anyways I don't trust govt so just not my thing. gl tho
Posted on 11/15/21 at 3:16 pm to rocket31
quote:
but you have a risk tolerance to trust a govt bond for 5 years or take a penalty. sorry but that makes zero sense lol
Different strokes for different folks rocket.
Posted on 11/15/21 at 4:07 pm to rocket31
quote:
but you have a risk tolerance to trust a govt bond for 5 years or take a penalty. sorry but that makes zero sense lol
Not really, you can sell after 1 year and get 50x-100x whatever what bank is going to give you in the best case for no risk.
The penalty basically changes it from 7.2 to 5.3 after 12 months and that spread gets smaller and smaller as you approach 5 years because it's only the last 3 months. I might re-asses in 1 yr and take the 5.3%, still a win. I will never be 100% invested again; my wife is pregnant.
5.3% risk free; is impossible to pass up for me, I have a ton of money on sidelines currently. It's sitting in a ETRADE savings account yielding .15%, or basically nothing. So starting to stagger these savings I bonds will get me return that is unmatchable for the risk on 10k of that saved money.
The rate will never go below 0, and I doubt CPI will be that much lower in april , which is what the rate is chained to. If CPI goes to 0, it's still beating the shite out of a savings account with just those first 3 months.
If your savings I bond bounces next year; then I'm not sure a billion dollars worth of crypto will do you any good, might need ammo and canned meat instead; and I say this as someone who understands crpyto and buys into it 100%.
Different strokes for different folks is 100% accurate. If I were in my early 20s and had no kids or family to worry about; I wouldn't be buying I-bonds most likely.
This post was edited on 11/15/21 at 5:38 pm
Posted on 11/15/21 at 4:25 pm to rocket31
quote:
that makes zero sense
There’s a huge difference between not trusting the government to use highway funds to build a highway, and insinuating it makes “zero sense” to trust a government to honor a savings bond when it has a history of successfully doing so that lasts centuries.
In a prior post you appeared concerned about the interest/inflation rate changing. So, what happens if it drops to 0. Well, in that case pre-5 year withdrawal penalty ALSO drops to zero. Just pull out it out. The penalty is only a penalty if the interest rate is high.
The risk period is unchanged, it’s a 1 year risk position not a 5 year.
I’m not challenging your position that the government sucks or shouldn’t be trusted in the abstract sense. I will challenge your statements that “who in their right mind?” Would do something or “it makes zero sense.”
Posted on 11/15/21 at 6:08 pm to BRIllini07
i bonds are tax free correct?
Posted on 11/15/21 at 6:12 pm to TigerintheNO
The yield is subject to federal income tax; not state.
Posted on 12/28/21 at 11:36 am to gpburdell
As we build our savings I could see us buying 10,000 worth and adding $100 or so monthly if feasible.
That's looking pretty good in 20-30 years.
Or, like the other recent thread mentioned, where can I put 10,000 for 3-5 years?
Treasury Direct
That's looking pretty good in 20-30 years.
Or, like the other recent thread mentioned, where can I put 10,000 for 3-5 years?
quote:
I bonds earn interest for 30 years unless you cash them first. You can cash them after one year. But if you cash them before five years, you lose the previous three months of interest. (For example, if you cash an I bond after 18 months, you get the first 15 months of interest.)
Treasury Direct
Posted on 12/28/21 at 11:42 am to bayoubengals88
This assumes that inflation is 7% annualized over that time period.
But generally speaking they’re probably sound for a while.
But generally speaking they’re probably sound for a while.
Posted on 12/28/21 at 12:09 pm to LSUcam7
quote:Yeah, after reading this thread I understand now.
This assumes that inflation is 7% annualized over that time period.
Does this accrue monthly??
Would I be getting 7.12% on 10,000 monthly?
Did I ask the right question?
Posted on 12/28/21 at 12:19 pm to bayoubengals88
quote:
Would I be getting 7.12% on 10,000 monthly?
lol no
it's a composite rate that has 3 month penalty if you don't wait 5 years
meanwhile UST on aurora is 20% yield and no lock up
also no chance these stay at 7%. historically the interest rates are a joke. tracking the manipulated inflation rate already tells you it's a suckers pick
Posted on 12/28/21 at 12:33 pm to rocket31
quote:It's semiannually.
lol no
quote:Fuel up buddy.
meanwhile UST on aurora is 20% yield and no lock up
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