I Bonds variable rate @ 3.54% in May

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averagedude
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Re: I Bonds variable rate @ 3.54% in May

Post by averagedude »

tipswatcher wrote: Tue May 04, 2021 4:14 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Welcome to Hotel California, where you will now scheme and plot to nail down a 0.1% fixed rate ($10 a year, but that’s $10! Grows with future inflation!) :beer
Yes, I believe it is like Hotel California. I invested this money to spend 5 to 10 years from now, but I don't know if I will ever be able to give up on the inflation protection that Ibonds guarantee. I can foresee myself redeeming these when I am in my eighties, instead of my fifties.
retiringwhen
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Re: I Bonds variable rate @ 3.54% in May

Post by retiringwhen »

firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
I have to say, at certain colleges, that initiation could be considered hazing. I will never complain about Vanguard, Fidelity, Ally or my credit union websites ever again!

I too joined the party yesterday I failed at the account creation process at least 15 times in about 12 different ways!
retiringwhen
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Re: I Bonds variable rate @ 3.54% in May

Post by retiringwhen »

averagedude wrote: Tue May 04, 2021 4:56 pm
tipswatcher wrote: Tue May 04, 2021 4:14 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Welcome to Hotel California, where you will now scheme and plot to nail down a 0.1% fixed rate ($10 a year, but that’s $10! Grows with future inflation!) :beer
Yes, I believe it is like Hotel California. I invested this money to spend 5 to 10 years from now, but I don't know if I will ever be able to give up on the inflation protection that Ibonds guarantee. I can foresee myself redeeming these when I am in my eighties, instead of my fifties.
If I am still breathing, the bond I bought yesterday will mature after my 50% SS life expectancy.
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ApeAttack
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Re: I Bonds variable rate @ 3.54% in May

Post by ApeAttack »

surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
I'll happily pay 4 dollars to get I-Bonds off my mind. I was driving my wife crazy talking about I-Bonds for the past couple weeks.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
RubyTuesday
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Re: I Bonds variable rate @ 3.54% in May

Post by RubyTuesday »

ApeAttack wrote: Tue May 04, 2021 5:52 pm
surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
I'll happily pay 4 dollars to get I-Bonds off my mind. I was driving my wife crazy talking about I-Bonds for the past couple weeks.
You could also schedule your purchase today to execute on 5/28. Get your $4 and stop worrying about it both.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
dh
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Re: I Bonds variable rate @ 3.54% in May

Post by dh »

tonyclifton wrote: Mon May 03, 2021 12:42 pm
#Cruncher wrote: Mon May 03, 2021 9:57 am For those interested, here are the composite rates ...
Thank you so much for your work in this area. Hopefully it is a labor of love!! (or at least of interest, har har)
+1
Thank you, #Cruncher :sharebeer
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ApeAttack
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Re: I Bonds variable rate @ 3.54% in May

Post by ApeAttack »

RubyTuesday wrote: Tue May 04, 2021 5:59 pm
ApeAttack wrote: Tue May 04, 2021 5:52 pm
surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm

Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
I'll happily pay 4 dollars to get I-Bonds off my mind. I was driving my wife crazy talking about I-Bonds for the past couple weeks.
You could also schedule your purchase today to execute on 5/28. Get your $4 and stop worrying about it both.
The suspense of waiting for the money to get to TD would be too much for me to handle.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
Thesaints
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Re: I Bonds variable rate @ 3.54% in May

Post by Thesaints »

surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
$4 interest AND 25 days in which to change one's mind, to be accurate.
AlmstRtrd
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Re: I Bonds variable rate @ 3.54% in May

Post by AlmstRtrd »

TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
MishkaWorries
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Re: I Bonds variable rate @ 3.54% in May

Post by MishkaWorries »

AlmstRtrd wrote: Tue May 04, 2021 8:21 pm TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
You can designate a co-owner or beneficiary. Not both.

https://treasurydirect.gov/indiv/help/T ... dsecondary
We plan. G-d laughs.
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anon_investor
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

ApeAttack wrote: Tue May 04, 2021 5:52 pm
surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
I'll happily pay 4 dollars to get I-Bonds off my mind. I was driving my wife crazy talking about I-Bonds for the past couple weeks.
:sharebeer

Some BHs fret over 1 basis point, you gave up 4 basis points for piece of mind!
AlmstRtrd
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Re: I Bonds variable rate @ 3.54% in May

Post by AlmstRtrd »

MishkaWorries wrote: Tue May 04, 2021 8:29 pm
AlmstRtrd wrote: Tue May 04, 2021 8:21 pm TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
You can designate a co-owner or beneficiary. Not both.

https://treasurydirect.gov/indiv/help/T ... dsecondary
Done! Thanks for your help!
arsenal_fan
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Re: I Bonds variable rate @ 3.54% in May

Post by arsenal_fan »

Would you guys buy the 10K now or buy 5k now and 5k in November?
dh
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Re: I Bonds variable rate @ 3.54% in May

Post by dh »

arsenal_fan wrote: Tue May 04, 2021 9:20 pm Would you guys buy the 10K now or buy 5k now and 5k in November?
While anything can happen, I highly doubt that the fixed rate will be changed in November. So for me it was an easy decision to buy 10K and not wait until November. Best wishes to you in your decision!
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Darth Xanadu
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Re: I Bonds variable rate @ 3.54% in May

Post by Darth Xanadu »

dh wrote: Tue May 04, 2021 9:22 pm
arsenal_fan wrote: Tue May 04, 2021 9:20 pm Would you guys buy the 10K now or buy 5k now and 5k in November?
While anything can happen, I highly doubt that the fixed rate will be changed in November. So for me it was an easy decision to buy 10K and not wait until November. Best wishes to you in your decision!
I tend to agree. And as @Tipswatcher likes to point out, if by chance the fixed rate increases effective Nov 1, an investor may purchase an additional $10k in January 2022 and still get the benefit (assuming one purchases annually).

Nothing wrong with $5k and $5k approach though.

I'm personally waiting until later this year, but this is primarily due to liquidity concerns.
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anon_investor
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

arsenal_fan wrote: Tue May 04, 2021 9:20 pm Would you guys buy the 10K now or buy 5k now and 5k in November?
We are buying all $20k this month, we have the cash now. Waiting until November would cost us over $300 in interest (since the money would be sitting in a HYSA earning only 0.5% APY insead of 3.54% APY as I Bonds).
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ApeAttack
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Re: I Bonds variable rate @ 3.54% in May

Post by ApeAttack »

anon_investor wrote: Tue May 04, 2021 8:45 pm
ApeAttack wrote: Tue May 04, 2021 5:52 pm
surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm

Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
I'll happily pay 4 dollars to get I-Bonds off my mind. I was driving my wife crazy talking about I-Bonds for the past couple weeks.
:sharebeer

Some BHs fret over 1 basis point, you gave up 4 basis points for piece of mind!
Interesting way to put it. I'm sure the novelty will wear off by the time of my next big purchase and I can wait until the end of the month. For now, I can hardly wait until the interest appears on my TD account. :beer
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
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anon_investor
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

ApeAttack wrote: Tue May 04, 2021 11:44 pm
anon_investor wrote: Tue May 04, 2021 8:45 pm
ApeAttack wrote: Tue May 04, 2021 5:52 pm
surfstar wrote: Tue May 04, 2021 4:50 pm
Thesaints wrote: Tue May 04, 2021 4:31 pm

You could have waited until the 28th...
Yes! You lost out on like $4 of HYSA interest!!! (lol we're buying later this month when we have more funds or else I'd just buy now)
I'll happily pay 4 dollars to get I-Bonds off my mind. I was driving my wife crazy talking about I-Bonds for the past couple weeks.
:sharebeer

Some BHs fret over 1 basis point, you gave up 4 basis points for piece of mind!
Interesting way to put it. I'm sure the novelty will wear off by the time of my next big purchase and I can wait until the end of the month. For now, I can hardly wait until the interest appears on my TD account. :beer
You will have to wait 3 months then, lol. Since no interest will appear until after 3 months, since TD takes into account the 3 month interest penalty for early redemption until the 5 year mark. :beer
Volando
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Re: I Bonds variable rate @ 3.54% in May

Post by Volando »

This may be a silly question but I'm going to ask it anyway because I'm still learning. I'm planning on purchasing 10k at the end of the month. It would be using 1/6 of my emergency fund. For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both? I would likely be accumulating them yearly and holding for as long as possible.
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vineviz
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Re: I Bonds variable rate @ 3.54% in May

Post by vineviz »

Volando wrote: Wed May 05, 2021 6:50 am This may be a silly question but I'm going to ask it anyway because I'm still learning. I'm planning on purchasing 10k at the end of the month. It would be using 1/6 of my emergency fund. For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both? I would likely be accumulating them yearly and holding for as long as possible.
It's not a silly question, but it's a hard one to answer because savings bonds have characteristics of both cash and bonds. So I'd say it's reasonable to account for them as "both", since they do that double duty.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
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tipswatcher
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Re: I Bonds variable rate @ 3.54% in May

Post by tipswatcher »

Volando wrote: Wed May 05, 2021 6:50 am This may be a silly question but I'm going to ask it anyway because I'm still learning. I'm planning on purchasing 10k at the end of the month. It would be using 1/6 of my emergency fund. For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both? I would likely be accumulating them yearly and holding for as long as possible.
This is a great question and I'm not sure there's one right answer. The way I do it: If the investment is in a Treasury-backed or FDIC-insured account and has a term of one year or less, I count it as cash, because probably I have some intention to use that money in the near future. (I'd count a Treasury money market account as cash, but a short-term bond fund would be "bonds.")

So I Bonds, which I have no intention of unloading for near-term cash, I count as "bonds." If you are thinking of using this as part of your emergency fund, though, and sell after 11 months, maybe you should go with "cash."

Like I said, just my opinion.
TIPS: Perfect investment for imperfect times?
Volando
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Re: I Bonds variable rate @ 3.54% in May

Post by Volando »

Good points. Thanks! I suppose my thought is that ideally I would hold onto them until retirement, so I could consider as bonds. I don't anticipate using them unless it's a large emergency that would use up the rest of the EF so in that sense its cash. Seems that looking at is as both is reasonable. I'll probably keep buying annually so it will build up over time as well. I just wanted to make sure I wasn't tricking myself into thinking of them as bonds when they should be categorized as something else.
tonyclifton
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Re: I Bonds variable rate @ 3.54% in May

Post by tonyclifton »

Volando wrote: Wed May 05, 2021 6:50 am For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both?
We count our cash as part of our fixed income asset allocation and have about six months of cash mentally accounted for as an emergency fund. In other words, our emergency fund is part of our fixed income asset allocation. In our house fixed income asset allocation includes cash, TIPS funds and total bond funds. Some people do not count their emergency fund as part of their asset allocation.
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anon_investor
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Re: I Bonds variable rate @ 3.54% in May

Post by anon_investor »

tonyclifton wrote: Wed May 05, 2021 9:05 am
Volando wrote: Wed May 05, 2021 6:50 am For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both?
We count our cash as part of our fixed income asset allocation and have about six months of cash mentally accounted for as an emergency fund. In other words, our emergency fund is part of our fixed income asset allocation. In our house fixed income asset allocation includes cash, TIPS funds and total bond funds. Some people do not count their emergency fund as part of their asset allocation.
We also count our EF (currently in I Bonds, CDs, HYSA) as part of our fixed income allocation.
surfstar
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Re: I Bonds variable rate @ 3.54% in May

Post by surfstar »

Another person that counts I-Bonds as "both" EF/FI allocation. :sharebeer
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ApeAttack
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Re: I Bonds variable rate @ 3.54% in May

Post by ApeAttack »

Volando wrote: Wed May 05, 2021 6:50 am This may be a silly question but I'm going to ask it anyway because I'm still learning. I'm planning on purchasing 10k at the end of the month. It would be using 1/6 of my emergency fund. For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both? I would likely be accumulating them yearly and holding for as long as possible.
I consider them to be high yielding CDs since they can never lose value, and I mentally place CDs in the "cash" category... easy to access + safe. Stuff in the cash category is what I use for my EF. I don't have bonds in a taxable brokerage account.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
Thesaints
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Re: I Bonds variable rate @ 3.54% in May

Post by Thesaints »

Volando wrote: Wed May 05, 2021 6:50 am This may be a silly question but I'm going to ask it anyway because I'm still learning. I'm planning on purchasing 10k at the end of the month. It would be using 1/6 of my emergency fund. For mental accounting purposes, would it be better to consider this as part of the cash/EF portion of portfolio or should I include it in my bond portion or both? I would likely be accumulating them yearly and holding for as long as possible.
For the first 12 months (or 11 months + 1 day, if you do your buying properly) Savings Bonds are definitely NOT cash. Past that, they have the same risk and liquidity as cash and returns typical of treasury bonds. So, it depends what you are trying to classify them for. If estimating your portfolio risk, I'd use "cash". If estimating returns, I'd use "bonds - highest quality".
RubyTuesday
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Re: I Bonds variable rate @ 3.54% in May

Post by RubyTuesday »

arsenal_fan wrote: Tue May 04, 2021 9:20 pm Would you guys buy the 10K now or buy 5k now and 5k in November?
Buy $10k now and then if the fixed rate goes up, buy more and (if past is prologue) you’ll get a nasty gram from treasury. Or painting within the lines. Open an entity account for additional purchase if rates go up.
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
chewy8k
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Re: I Bonds variable rate @ 3.54% in May

Post by chewy8k »

Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
I scheduled my 10k purchase on May 28th as well, would memorial day affect this purchase date? Should I schedule my purchase date to May 27th instead just to make sure the purchase happens in May?
AlwaysLearningMore
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Re: I Bonds variable rate @ 3.54% in May

Post by AlwaysLearningMore »

chewy8k wrote: Tue May 11, 2021 10:27 am
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
I scheduled my 10k purchase on May 28th as well, would memorial day affect this purchase date? Should I schedule my purchase date to May 27th instead just to make sure the purchase happens in May?
Why do you insist on getting in "just under the wire?"
Retirement is best when you have a lot to live on, and a lot to live for.
tibbitts
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Re: I Bonds variable rate @ 3.54% in May

Post by tibbitts »

AlwaysLearningMore wrote: Tue May 11, 2021 1:49 pm
chewy8k wrote: Tue May 11, 2021 10:27 am
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
I scheduled my 10k purchase on May 28th as well, would memorial day affect this purchase date? Should I schedule my purchase date to May 27th instead just to make sure the purchase happens in May?
Why do you insist on getting in "just under the wire?"
It's just because it's Bogleheads, and it's what people do for a hobby. Obviously any time now is fine for purchasing in May. It's like on January 1, everybody wants bragging rights for putting in their IRA purchases as close after midnight as possible - even when the markets aren't open.
Last edited by tibbitts on Tue May 11, 2021 1:53 pm, edited 2 times in total.
mervinj7
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Re: I Bonds variable rate @ 3.54% in May

Post by mervinj7 »

AlwaysLearningMore wrote: Tue May 11, 2021 1:49 pm
chewy8k wrote: Tue May 11, 2021 10:27 am
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm
firebirdparts wrote: Tue May 04, 2021 3:57 pm Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
I scheduled my 10k purchase on May 28th as well, would memorial day affect this purchase date? Should I schedule my purchase date to May 27th instead just to make sure the purchase happens in May?
Why do you insist on getting in "just under the wire?"
Cause they want to milk that sweet sweet 0.4% savings account interest for just one more day ...
That's almost 11 cents!
BogleMelon
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Re: I Bonds variable rate @ 3.54% in May

Post by BogleMelon »

tibbitts wrote: Tue May 11, 2021 1:51 pm
AlwaysLearningMore wrote: Tue May 11, 2021 1:49 pm
chewy8k wrote: Tue May 11, 2021 10:27 am
Thesaints wrote: Tue May 04, 2021 4:31 pm
ApeAttack wrote: Tue May 04, 2021 4:30 pm

Made my first large I-Bond purchase yesterday. :D
You could have waited until the 28th...
I scheduled my 10k purchase on May 28th as well, would memorial day affect this purchase date? Should I schedule my purchase date to May 27th instead just to make sure the purchase happens in May?
Why do you insist on getting in "just under the wire?"
and it's what people do for a hobby.
Agree with this. Financial optimizing just feels good regards to how many pennies. Why would you want to shot that green alien creature in a video game when you know it is not real? Just satisfying somehow!
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather
Broken Man 1999
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

AlmstRtrd wrote: Tue May 04, 2021 8:21 pm TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
For a beneficiary with no transact authorization, you can select POD registration.

You cannot register a co-owner, but what you can do is give another person the right to view and transact using WITH registration, with an additional step or two. The process appears to require the person having transact rights to have a TD account, as well. Which totally makes sense.

This might help:

Primary Owner - A Primary Owner type of registration denotes the first-named registrant in the registration of a security held in TreasuryDirect (e.g., registered "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321"). In this example, John Doe is the Primary Owner, and may grant View or Transact rights to the second-named registrant, Joseph Doe. Primary Owner registrations are not available in entity accounts.

Earlier this week I set up accounts with each grandchild being the beneficiary of the bond when I pass using the POD.

I'll try setting up an account with DW as the WITH person and buy a bond and try setting up the view and transact rights, just for grins.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
Stubbie
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Re: I Bonds variable rate @ 3.54% in May

Post by Stubbie »

Broken Man 1999 wrote: Wed May 12, 2021 11:19 am
AlmstRtrd wrote: Tue May 04, 2021 8:21 pm TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
For a beneficiary with no transact authorization, you can select POD registration.

You cannot register a co-owner, but what you can do is give another person the right to view and transact using WITH registration, with an additional step or two. The process appears to require the person having transact rights to have a TD account, as well. Which totally makes sense.

This might help:

Primary Owner - A Primary Owner type of registration denotes the first-named registrant in the registration of a security held in TreasuryDirect (e.g., registered "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321"). In this example, John Doe is the Primary Owner, and may grant View or Transact rights to the second-named registrant, Joseph Doe. Primary Owner registrations are not available in entity accounts.

Earlier this week I set up accounts with each grandchild being the beneficiary of the bond when I pass using the POD.

I'll try setting up an account with DW as the WITH person and buy a bond and try setting up the view and transact rights, just for grins.

Broken Man 1999
Yes, this is exactly how it works. My wife can see and has full control of the bonds I own WITH her.
Broken Man 1999
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Re: I Bonds variable rate @ 3.54% in May

Post by Broken Man 1999 »

Stubbie wrote: Thu May 13, 2021 2:27 pm
Broken Man 1999 wrote: Wed May 12, 2021 11:19 am
AlmstRtrd wrote: Tue May 04, 2021 8:21 pm TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
For a beneficiary with no transact authorization, you can select POD registration.

You cannot register a co-owner, but what you can do is give another person the right to view and transact using WITH registration, with an additional step or two. The process appears to require the person having transact rights to have a TD account, as well. Which totally makes sense.

This might help:

Primary Owner - A Primary Owner type of registration denotes the first-named registrant in the registration of a security held in TreasuryDirect (e.g., registered "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321"). In this example, John Doe is the Primary Owner, and may grant View or Transact rights to the second-named registrant, Joseph Doe. Primary Owner registrations are not available in entity accounts.

Earlier this week I set up accounts with each grandchild being the beneficiary of the bond when I pass using the POD.

I'll try setting up an account with DW as the WITH person and buy a bond and try setting up the view and transact rights, just for grins.

Broken Man 1999
Yes, this is exactly how it works. My wife can see and has full control of the bonds I own WITH her.
Good to hear! I only bought a $25 bond to do a test run. I didn't want DW to be tempted to have me whacked. :D

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven then I shall not go." - Mark Twain
Xigris1234
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Re: I Bonds variable rate @ 3.54% in May

Post by Xigris1234 »

I'm 33 and currently max out my 403b and RothIRA, as well as investing about 10% of gross income in a taxable accounts (50%/50% VTSAX/VTIAX). My current AA is 83%/8%/9% (stock/bonds/cash), and I'd like to get to 80%/15%/5%. Is there any reason I shouldn't consider purchasing $10k of I-bonds on an annual basis to shift my AA and diversify fixed income? Assuming I followed this strategy for the next 5 years I have the added benefit of creating a $50k emergency fund that would be inflation adjusted and entirely liquid after 6 years (other than the loss of last 3 months of interest if redeemed before 5 years). Compared to other options of leaving money in a HYSA (low yields) or purchasing additional share of VBTLX (potential decrease in NAV if interest rates rise), this seems like best option or am I misguided in my thinking?
BogleMelon
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Re: I Bonds variable rate @ 3.54% in May

Post by BogleMelon »

Xigris1234 wrote: Sat May 15, 2021 9:33 am I'm 33 and currently max out my 403b and RothIRA, as well as investing about 10% of gross income in a taxable accounts (50%/50% VTSAX/VTIAX). My current AA is 83%/8%/9% (stock/bonds/cash), and I'd like to get to 80%/15%/5%. Is there any reason I shouldn't consider purchasing $10k of I-bonds on an annual basis to shift my AA and diversify fixed income? Assuming I followed this strategy for the next 5 years I have the added benefit of creating a $50k emergency fund that would be inflation adjusted and entirely liquid after 6 years (other than the loss of last 3 months of interest if redeemed before 5 years). Compared to other options of leaving money in a HYSA (low yields) or purchasing additional share of VBTLX (potential decrease in NAV if interest rates rise), this seems like best option or am I misguided in my thinking?
The possibility of having HYSA paying 3% while I-bonds paying 1%. The 3.54% may not last forever.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather
Kookaburra
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Re: I Bonds variable rate @ 3.54% in May

Post by Kookaburra »

Broken Man 1999 wrote: Wed May 12, 2021 11:19 am
AlmstRtrd wrote: Tue May 04, 2021 8:21 pm TD noob here. Just made my first online I-Bond purchase yesterday (have a bunch of vintage paper I-Bonds sitting around here somewhere). How and where on the TD website do I designate a beneficiary? Could I instead designate a co-owner?

Many thanks in advance for any help!
For a beneficiary with no transact authorization, you can select POD registration.

You cannot register a co-owner, but what you can do is give another person the right to view and transact using WITH registration, with an additional step or two. The process appears to require the person having transact rights to have a TD account, as well. Which totally makes sense.

This might help:

Primary Owner - A Primary Owner type of registration denotes the first-named registrant in the registration of a security held in TreasuryDirect (e.g., registered "John Doe SSN 123-45-6789 WITH Joseph Doe SSN 987-65-4321"). In this example, John Doe is the Primary Owner, and may grant View or Transact rights to the second-named registrant, Joseph Doe. Primary Owner registrations are not available in entity accounts.

Earlier this week I set up accounts with each grandchild being the beneficiary of the bond when I pass using the POD.

I'll try setting up an account with DW as the WITH person and buy a bond and try setting up the view and transact rights, just for grins.

Broken Man 1999
Looking for advice on how I should set up TD accounts for DH and myself. Our goals are for the spouse to inherit the other’s I-bonds when one of us passes, and to be able to liquidate those holdings whenever they want. Should I set up each of our accounts as “WITH” for the transact capability AND specify each other as beneficiary on our individual accounts to make clear what the inherit intention is? If so, will TD allow this set up?
BrokerageZelda
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Re: I Bonds variable rate @ 3.54% in May

Post by BrokerageZelda »

Kookaburra wrote: Sat May 15, 2021 10:03 am Looking for advice on how I should set up TD accounts for DH and myself. Our goals are for the spouse to inherit the other’s I-bonds when one of us passes, and to be able to liquidate those holdings whenever they want. Should I set up each of our accounts as “WITH” for the transact capability AND specify each other as beneficiary on our individual accounts to make clear what the inherit intention is? If so, will TD allow this set up?
Simulcasting: I just replied on the other thread in Personal Investments about this question.
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ApeAttack
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Re: I Bonds variable rate @ 3.54% in May

Post by ApeAttack »

BogleMelon wrote: Sat May 15, 2021 9:57 am
Xigris1234 wrote: Sat May 15, 2021 9:33 am I'm 33 and currently max out my 403b and RothIRA, as well as investing about 10% of gross income in a taxable accounts (50%/50% VTSAX/VTIAX). My current AA is 83%/8%/9% (stock/bonds/cash), and I'd like to get to 80%/15%/5%. Is there any reason I shouldn't consider purchasing $10k of I-bonds on an annual basis to shift my AA and diversify fixed income? Assuming I followed this strategy for the next 5 years I have the added benefit of creating a $50k emergency fund that would be inflation adjusted and entirely liquid after 6 years (other than the loss of last 3 months of interest if redeemed before 5 years). Compared to other options of leaving money in a HYSA (low yields) or purchasing additional share of VBTLX (potential decrease in NAV if interest rates rise), this seems like best option or am I misguided in my thinking?
The possibility of having HYSA paying 3% while I-bonds paying 1%. The 3.54% may not last forever.
In that case, you can sell the I-Bonds and put the money back in a HYSA. That would mean you lose the hedge against significant inflation (and maybe 3 months of interest), so I would only do it if there is a large difference between I-Bonds and HYSA rates.
Just another lazy index investor who recently found out about I-Bonds (https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm).
Dyloot
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Re: I Bonds variable rate @ 3.54% in May

Post by Dyloot »

Proud BH for more than a decade. Never heard of I Bonds until a couple weeks ago.

I’m in. My wife is already sick of hearing about them—even though she now owns them.

Thanks, all!
Swimmer
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Re: I Bonds variable rate @ 3.54% in May

Post by Swimmer »

beets wrote: Wed Apr 14, 2021 4:13 pm
Nowizard wrote: Wed Apr 14, 2021 4:01 pm If we have a Revocable Trust with spouse and I as Trustees, can we each purchase IBonds to the maximum amount? A 2017 thread stated that could be done, even saying each could purchase individually and for the Trust while advising against transferring those purchased outside the Trust to the Trust. Does this still hold? I noticed the amount mentioned in that thread was $20,000 rather than $15,000, also.

Tim
$10k per person + $10k for the trust + $5k paper bonds with an overpayment / tax refund = $35k total

I got a different answer when I spoke with TD recently. They told me the limit is 10k PER SSN. So if the trust is listed under my SSN, I can buy 10k within the trust and spouse can open another account using his SSN with a 10k limit. No double dip.

We didn’t discuss the 5k tax refund.
beets
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Re: I Bonds variable rate @ 3.54% in May

Post by beets »

Swimmer wrote: Sat May 15, 2021 4:47 pm I got a different answer when I spoke with TD recently. They told me the limit is 10k PER SSN. So if the trust is listed under my SSN, I can buy 10k within the trust and spouse can open another account using his SSN with a 10k limit. No double dip.

We didn’t discuss the 5k tax refund.
I’ve personally never bought I-bonds through a trust, but there’s plenty of reports here about it working. Even reports of people buying over $10k per account through TD with nothing more than a “please don’t do that again.”

Some people have cautioned that TD could finally catch up, and perhaps do something, but I wouldn’t worry about it personally.
calwatch
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Re: I Bonds variable rate @ 3.54% in May

Post by calwatch »

It's $10k per SSN or TIN, so the EIN for the trust would count as a separate account.
averagedude
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Re: I Bonds variable rate @ 3.54% in May

Post by averagedude »

I bonds right now are a great investment product for fixed income. I have purchased 30k worth over the last 7 months and plan on purchasing 30k more over the next 18 months. Definitely is a better deal than CD's, nominal bonds, or TIPS that have a negative fixed yield. If it wasn't for the low yearly purchasing limit, I woud have all of my fixed income in series I savings bonds.
Escapevelocity
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Re: I Bonds variable rate @ 3.54% in May

Post by Escapevelocity »

averagedude wrote: Sat May 15, 2021 11:03 pm Definitely is a better deal than CD's, nominal bonds, or TIPS that have a negative fixed yield. If it wasn't for the low yearly purchasing limit, I woud have all of my fixed income in series I savings bonds.
I think this is a popular sentiment. The limit implicitly communicates to the consumer that these are a market-beating investment.
Swimmer
Posts: 542
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Re: I Bonds variable rate @ 3.54% in May

Post by Swimmer »

Escapevelocity wrote: Sun May 16, 2021 11:01 am
averagedude wrote: Sat May 15, 2021 11:03 pm Definitely is a better deal than CD's, nominal bonds, or TIPS that have a negative fixed yield. If it wasn't for the low yearly purchasing limit, I woud have all of my fixed income in series I savings bonds.
I think this is a popular sentiment. The limit implicitly communicates to the consumer that these are a market-beating investment.
Does anyone know how long the limit has been in place? Seems weird that if you aren’t aware of the limit, the TD system lets you proceed with the purchase.
FactualFran
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Re: I Bonds variable rate @ 3.54% in May

Post by FactualFran »

Swimmer wrote: Sun May 16, 2021 11:45 am Does anyone know how long the limit has been in place? Seems weird that if you aren’t aware of the limit, the TD system lets you proceed with the purchase.
The $10,000 limit was announced in 2012. See the Treasury news release Treasury Department Sets Online Savings Bond Annual Purchase Limit at $10,000 per Series.
Swimmer
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Re: I Bonds variable rate @ 3.54% in May

Post by Swimmer »

FactualFran wrote: Sun May 16, 2021 6:23 pm
Swimmer wrote: Sun May 16, 2021 11:45 am Does anyone know how long the limit has been in place? Seems weird that if you aren’t aware of the limit, the TD system lets you proceed with the purchase.
The $10,000 limit was announced in 2012. See the Treasury news release Treasury Department Sets Online Savings Bond Annual Purchase Limit at $10,000 per Series.

Thank you!
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