I was planning on buying our 10,000 each limit in January which gets us up to 200,000 total in our TD accounts.SnowBog wrote: ↑Sat Dec 11, 2021 4:09 pmA person can either buy for themselves or have a gift "delivered" of at most $10k per year. So if today you bought $50k as gifts for each spouse, and assuming that they also bought $10k individually. You could "deliver" the first of the $10k in 2022, the next $10k in 2023, etc., with the last of the original $50k delivered in 2026.ivgrivchuck wrote: ↑Sat Dec 11, 2021 2:50 pmI don't expect it to be true, but it seems that nobody in the board knows for sure...ObiQuiet wrote: ↑Sat Dec 11, 2021 2:43 pmI don't think that's true, is it?nydoc wrote: ↑Sat Dec 11, 2021 2:00 pm If you need that money for something I guess you can’t redeem it yourself as it was designated as a gift to someone else. Recipient can only receive 10k a year and then have to wait additional year to redeem it. Your 100k may be stuck in TD account for a long time.
As to what could go wrong with the plan, all that's known right now is the 7% for the first 6 months. While unlikely, the remaining nine 6-month periods could all be 0%, but you've locked up money for 5 years and are stuck with it. So for those who are only interested in I Bonds due to the 7% rate, they may end up very disappointed.
Some recognize I Bonds for what they are, essentially a preservation of capital. I Bonds aren't really earning anything, even at 7%, instead they are keeping up with inflation (minus taxes eventually). Granted this is much better than you can get in a bank, but you aren't going to "make money" on I Bonds. For these people, they were probably buying I Bonds years ago, and we'll be buying I Bonds years from now when the interest rate is [hopefully] no longer an eye popping 7.12%. So for them to front load purchases, they aren't really concerned about future rates - as they already know it will be whatever inflation is - and that's fine for them.
I am very conservative and have CD’s maturing so I thought might as well take advantage of this rate now to fill up what I wanted as a max in our IBonds.
Buy now as gifts vs rolling the dice on new rates the next few years. If nothing else it feels good to get that 7% for 6 months and if inflation stays high all next year the bonds will catch that as well.They will be what they will be in the future.