Nevermind. Found the answer to my own question on TD website: You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond’s value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)ChiKid24 wrote: ↑Tue Apr 20, 2021 5:43 pm Will be doing our first ibond purchase in May. Question for those who have done this before on Treasury Direct. Do you just buy one bond for the full amount you want to invest (up to $10k)? Or do you buy multiple bonds for various denominations? Reason for the question is that my intent here is a 2nd tier emergency fund. There could be an instance where I only need to pull $2-$5k from the ibonds, so wouldn't want to sell the full $10k. Or does it not matter and the funds are treated like a savings account which can be pulled in any denomination at any time, recognizing the 1- and 5-year hold period penalties.
I Bonds Mega Thread (I Bond Heads Rejoice!)
Re: I Bonds variable rate @ 3.54% in May
- anon_investor
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Re: I Bonds variable rate @ 3.54% in May
Yep, it is pretty awesome as an emergency fund once held for over a year.ChiKid24 wrote: ↑Tue Apr 20, 2021 5:46 pmNevermind. Found the answer to my own question on TD website: You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond’s value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)ChiKid24 wrote: ↑Tue Apr 20, 2021 5:43 pm Will be doing our first ibond purchase in May. Question for those who have done this before on Treasury Direct. Do you just buy one bond for the full amount you want to invest (up to $10k)? Or do you buy multiple bonds for various denominations? Reason for the question is that my intent here is a 2nd tier emergency fund. There could be an instance where I only need to pull $2-$5k from the ibonds, so wouldn't want to sell the full $10k. Or does it not matter and the funds are treated like a savings account which can be pulled in any denomination at any time, recognizing the 1- and 5-year hold period penalties.
Re: I Bonds variable rate @ 3.54% in May
After many years of buying them I suggest just getting the full 10K at once, it gets really cluttered to have 20-30 bonds in there.
70% Global Stocks / 30% Bonds
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Re: I Bonds variable rate @ 3.54% in May
I also consider mine part of the emergency fund but if I am liquidating I bonds, it will be a big expense and 10K or more will be needed. Few thousand in the bank account would go first.donaldfair71 wrote: ↑Tue Apr 20, 2021 7:25 pmYep. This is really one of the few downsides. The cluttering that can become cumbersome.
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- Darth Xanadu
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Re: I Bonds variable rate @ 3.54% in May
Good questions. My understanding, which is not gospel, is that you do not receive a 1099-INT every year if you choose not to report the income. In fact, I believe you have to actively log into TD website to download the tax form for the year you redeem. I don't believe they send you anything.ApeAttack wrote: ↑Tue Apr 20, 2021 5:43 pm I have a couple questions regarding paying taxes on redeemed I-Bonds. According to the Treasury Direct website, there are two options for reporting taxes:
(A) Report the interest every year on your federal income tax return
(B) Defer reporting the interest until the bond is redeemed (I prefer this method)
https://www.treasurydirect.gov/indiv/re ... nsider.htm
My questions:
(1) Will I receive the 1099-INT form only when I cash out the I-Bonds, or every year I hold the I-Bonds? This video makes it seem like I may receive a 1099-INT every year (or maybe the user redeemed I-Bonds every year).
https://www.treasurydirect.gov/indiv/to ... 20)-CC.mp4
(2) When purchasing the I-Bonds, do I need to select which option I wish to implement?
Thanks in advance for the input. I plan on making my first purchase of I-Bonds in May and want to be prepared.
I don't know the answer to your 2nd question, I don't recall the process even though I most recently purchased only a year ago. I believe you make a selection. I don't think you can change your selection after the fact.
Re: I Bonds variable rate @ 3.54% in May
Context would help. Do you have a sizeable brokerage account? How many years of living expenses do you have? My thought process is that starting this year equates to sub 1% of allocation. And that percentage should only get smaller with time. In that regards it seems so insignificant that it may not be worth tracking another account, worrying about next 6 month rate, etc.tomsense76 wrote: ↑Tue Apr 20, 2021 3:47 pmPersonally I buy them and am in my 30s. I think they can make sense if one is already filling all of their tax deferred and tax free accounts, is looking for more ways to save, and needs bonds. Using these to act as a hand rolled annuity in early retirement to delay taking social securityMakaveli wrote: ↑Fri Apr 16, 2021 5:50 pmMakes sense. The more I thought about it, for someone that's fortunate with 25x expenses, the stress around getting I Bonds for 10k per year isn't worth the headache. Plan to stay the course with TBM.cork wrote: ↑Fri Apr 16, 2021 2:15 pmI'm a year and a half from retirement, but that isn't why I purchased them. We had a CD mature that was paying 3+% and couldn't find that rate in another "safe" place for holding part of the emergency fund that we wouldn't need right away. It was at about 1.68% when I purchased the IBond.
I still keep my total bond fund at it's original AA within my other retirement accounts.
Re: I Bonds variable rate @ 3.54% in May
Hmmm... I am on Treasury Direct right now going through the motions of making a purchase and I don't see an option for selecting the tax option.Darth Xanadu wrote: ↑Tue Apr 20, 2021 8:06 pmGood questions. My understanding, which is not gospel, is that you do not receive a 1099-INT every year if you choose not to report the income. In fact, I believe you have to actively log into TD website to download the tax form for the year you redeem. I don't believe they send you anything.ApeAttack wrote: ↑Tue Apr 20, 2021 5:43 pm I have a couple questions regarding paying taxes on redeemed I-Bonds. According to the Treasury Direct website, there are two options for reporting taxes:
(A) Report the interest every year on your federal income tax return
(B) Defer reporting the interest until the bond is redeemed (I prefer this method)
https://www.treasurydirect.gov/indiv/re ... nsider.htm
My questions:
(1) Will I receive the 1099-INT form only when I cash out the I-Bonds, or every year I hold the I-Bonds? This video makes it seem like I may receive a 1099-INT every year (or maybe the user redeemed I-Bonds every year).
https://www.treasurydirect.gov/indiv/to ... 20)-CC.mp4
(2) When purchasing the I-Bonds, do I need to select which option I wish to implement?
Thanks in advance for the input. I plan on making my first purchase of I-Bonds in May and want to be prepared.
I don't know the answer to your 2nd question, I don't recall the process even though I most recently purchased only a year ago. I believe you make a selection. I don't think you can change your selection after the fact.
May all your index funds gain +0.5% today.
Re: I Bonds variable rate @ 3.54% in May
TD is not the IRS.
You select the tax reporting option on form 1040.
You select the tax reporting option on form 1040.
- anon_investor
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Re: I Bonds variable rate @ 3.54% in May
I you can redeem only a portion of a single $10k I Bond, so if you need $1k, you only need to redeem $1k and leave the remanining $9k worth as an I Bond.z3r0c00l wrote: ↑Tue Apr 20, 2021 7:59 pmI also consider mine part of the emergency fund but if I am liquidating I bonds, it will be a big expense and 10K or more will be needed. Few thousand in the bank account would go first.donaldfair71 wrote: ↑Tue Apr 20, 2021 7:25 pmYep. This is really one of the few downsides. The cluttering that can become cumbersome.
I only started buying I Bonds last year, but my spouse and I each bought $10k worth at 1 time. We each plan to buy another $10k worth in May.
Re: I Bonds variable rate @ 3.54% in May
Yes, I realize that. Are you saying there is a tax reporting option for I-Bonds on a 1040 form? If not, your answer is a bit vague.
I'm trying to figure out the mechanism of how I can defer taxes on I-Bonds. I don't want to make a mistake and be forced to pay taxes every year until I redeem them. Will I receive a 1099-INT every year even if I do not redeem the bonds that year? If so, I'm trying to understand whether I am obligated to report the interest every year. In the past, the only times I have ever received a 1099-INT form is getting interest from a savings or money market account.
May all your index funds gain +0.5% today.
Re: I Bonds variable rate @ 3.54% in May
The instructions are in Pub 550. Check out pages 7-9.ApeAttack wrote: ↑Tue Apr 20, 2021 9:29 pmYes, I realize that. Are you saying there is a tax reporting option for I-Bonds on a 1040 form? If not, your answer is a bit vague.
I'm trying to figure out the mechanism of how I can defer taxes on I-Bonds. I don't want to make a mistake and be forced to pay taxes every year until I redeem them. Will I receive a 1099-INT every year even if I do not redeem the bonds that year? If so, I'm trying to understand whether I am obligated to report the interest every year. In the past, the only times I have ever received a 1099-INT form is getting interest from a savings or money market account.
http://www.irs.gov/pub/irs-pdf/p550.pdf
You only receive the 1099-INT upon redemption.
If you choose to pay tax as you go, you manually report the increase in redemption value each year. There is no formal election when you buy the bond. Then when you redeem the bond, you need to remember yourself that some of that 1099-INT income was already taxed/reported in previous years. It gives this example specifically:
Quite a hassle if you choose that method, IMO.However, your Form
1099-INT may show more interest than you
have to include on your income tax return. For
example, this may happen if any of the following
are true.
• You chose to report the increase in the re-
demption value of the bond each year. The
interest shown on your Form 1099-INT will
not be reduced by amounts previously in-
cluded in income.
If you want to defer, you simply don't do anything taxwise until you redeem and receive the 1099-INT that year.
Re: I Bonds variable rate @ 3.54% in May
MrJedi wrote: ↑Tue Apr 20, 2021 9:47 pmThe instructions are in Pub 550. Check out pages 7-9.ApeAttack wrote: ↑Tue Apr 20, 2021 9:29 pmYes, I realize that. Are you saying there is a tax reporting option for I-Bonds on a 1040 form? If not, your answer is a bit vague.
I'm trying to figure out the mechanism of how I can defer taxes on I-Bonds. I don't want to make a mistake and be forced to pay taxes every year until I redeem them. Will I receive a 1099-INT every year even if I do not redeem the bonds that year? If so, I'm trying to understand whether I am obligated to report the interest every year. In the past, the only times I have ever received a 1099-INT form is getting interest from a savings or money market account.
http://www.irs.gov/pub/irs-pdf/p550.pdf
You only receive the 1099-INT upon redemption.
If you choose to pay tax as you go, you manually report the increase in redemption value each year. There is no formal election when you buy the bond. Then when you redeem the bond, you need to remember yourself that some of that 1099-INT income was already taxed/reported in previous years. It gives this example specifically:
Quite a hassle if you choose that method, IMO.However, your Form
1099-INT may show more interest than you
have to include on your income tax return. For
example, this may happen if any of the following
are true.
• You chose to report the increase in the re-
demption value of the bond each year. The
interest shown on your Form 1099-INT will
not be reduced by amounts previously in-
cluded in income.
If you want to defer, you simply don't do anything taxwise until you redeem and receive the 1099-INT that year.
Thanks! I really appreciate you breaking it down for me like that. I'm very new at dealing with savings bonds and I don't want to make a silly mistake.
May all your index funds gain +0.5% today.
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Re: I Bonds variable rate @ 3.54% in May
Smart, try to do the same.z3r0c00l wrote: ↑Tue Apr 20, 2021 7:59 pmI also consider mine part of the emergency fund but if I am liquidating I bonds, it will be a big expense and 10K or more will be needed. Few thousand in the bank account would go first.donaldfair71 wrote: ↑Tue Apr 20, 2021 7:25 pmYep. This is really one of the few downsides. The cluttering that can become cumbersome.
The WORST was when I sold several dozen small lots (I have regular contributions automated for years that piled up), then had to keep the basis/gain for each small lot to write off the interest on and use toward a 529 plan. I had to document these basis/gains in the 529 paperwork. The gains became tax free, which is nice, but man the work necessary with these small amounts!
Re: I Bonds variable rate @ 3.54% in May
Thank you so much #Cruncher! I couldn't have asked for more. Actually, in hindsight, I shouldn't have expected anything less. I think you have a beautiful mind.#Cruncher wrote: ↑Tue Apr 20, 2021 4:59 pmI'm much better at putting together arcane analyses than anything practical like forecasting, Angst. (To paraphrase one member's, signature, I find it particularly hard to forecast the future.) But since you ask ... I'd probably wait until May, but I don't think it would make a lot of difference. My personal case is based on the following scenario:
[SNIP...]
Re: I Bonds variable rate @ 3.54% in May
is it good idea to sell low yield international bond BNDX move the asets to I bonds next month ?
Thanks!
Re: I Bonds variable rate @ 3.54% in May
Probably not if you're simply chasing yield: the yield on BNDX appears to be higher than 3.54%.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch
Re: I Bonds variable rate @ 3.54% in May
I may know someone who accidentally bought 15K$ (they confused an EE bond purchase vs. an I-Bond) and had 15K in ibonds last year. They received a nastygram saying not to do it again. YMMVpetercooperjr wrote: ↑Thu Apr 15, 2021 7:57 amI'm actually not aware of a rule limiting each person to only one trust. I think that if one was sufficiently motivated and didn't mind a ton of paperwork, one could create a bunch of trusts and put $10k in each. There might be some rule that I haven't seen, though, and perhaps they'd create one if enough people did this.
Re: I Bonds variable rate @ 3.54% in May
You can also create a separate TD entity account for a sole proprietorship. Others have done it but I never felt it was worth yet another TD login for an extra $10,000 a year in bonds.
Re: I Bonds variable rate @ 3.54% in May
Quick question about I-Bonds... I know the interest compounds semi-annually, but I just wanted to confirm this is what happens by default. That is, I don't need to opt-in to compounding, correct?
The reason I ask is because my only prior experience with bonds is through bond funds in a 403b where I have to select the option to reinvest dividends.
The reason I ask is because my only prior experience with bonds is through bond funds in a 403b where I have to select the option to reinvest dividends.
May all your index funds gain +0.5% today.
Re: I Bonds variable rate @ 3.54% in May
Yes, it happens by default. The balance on your (individual) bonds just grows every month.
Re: I Bonds variable rate @ 3.54% in May
Thanks. I'm looking forward to watching the miracle of compound interest in the years ahead.
-->
May all your index funds gain +0.5% today.
Re: I Bonds variable rate @ 3.54% in May
Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
Re: I Bonds variable rate @ 3.54% in May
Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?Angst wrote: ↑Thu Apr 22, 2021 10:59 am
Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
May all your index funds gain +0.5% today.
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Re: I Bonds variable rate @ 3.54% in May
Yes - the TD online list of your holdings has a column for 'face values' at purchase and another column for current redemption values.ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pm Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?
Re: I Bonds variable rate @ 3.54% in May
Thanks for the info.BrokerageZelda wrote: ↑Thu Apr 22, 2021 12:24 pmYes - the TD online list of your holdings has a column for 'face values' at purchase and another column for current redemption values.ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pm Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?
(I wish there was an I-Bond emoji)
May all your index funds gain +0.5% today.
Re: I Bonds variable rate @ 3.54% in May
Yes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pmVery neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?Angst wrote: ↑Thu Apr 22, 2021 10:59 am Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
Re: I Bonds variable rate @ 3.54% in May
What? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pmVery neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?Angst wrote: ↑Thu Apr 22, 2021 10:59 am Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
May all your index funds gain +0.5% today.
- anon_investor
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Re: I Bonds variable rate @ 3.54% in May
But that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pmVery neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?Angst wrote: ↑Thu Apr 22, 2021 10:59 am Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
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Re: I Bonds variable rate @ 3.54% in May
I mean if you are in your 30s and have a $10M portfolio, agree this is probably peanuts.Makaveli wrote: ↑Tue Apr 20, 2021 8:24 pm Context would help. Do you have a sizeable brokerage account? How many years of living expenses do you have? My thought process is that starting this year equates to sub 1% of allocation. And that percentage should only get smaller with time. In that regards it seems so insignificant that it may not be worth tracking another account, worrying about next 6 month rate, etc.
For me personally this is a smallish, but important part of my portfolio. Don't have much fixed income anyways (90/10). So any fixed income I hold is small as well.
It's nice to have effectively annuitized part of my portfolio. Additionally it could be a nice emergency fund if needed as it acts kind of like a stable value fund, but in taxable (with tax-deferred for decades or until used). Though it behaves a bit better than a stable value fund as it actually tracks inflation and is backed by the US Government as opposed to a private company.
"Anyone who claims to understand quantum theory is either lying or crazy" -- Richard Feynman
Re: I Bonds variable rate @ 3.54% in May
A couple nights ago I was trying to figure out how to add a beneficiary and grant transact rights to my wife, and after 15 minutes I couldn't figure out if I did it successfully. I called my wife over and said, "You know, I not a stupid man, but ..."anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pmVery neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?Angst wrote: ↑Thu Apr 22, 2021 10:59 am Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
May all your index funds gain +0.5% today.
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Re: I Bonds variable rate @ 3.54% in May
It takes longer to read through this thread than to log into Treasury Direct and complete a transaction.
Retirement is best when you have a lot to live on, and a lot to live for. * None of what I post is investment advice.* |
FIRE'd July 2023
- anon_investor
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Re: I Bonds variable rate @ 3.54% in May
Hope you figured it out. The instructions are on TD... some where!ApeAttack wrote: ↑Fri Apr 23, 2021 9:35 amA couple nights ago I was trying to figure out how to add a beneficiary and grant transact rights to my wife, and after 15 minutes I couldn't figure out if I did it successfully. I called my wife over and said, "You know, I not a stupid man, but ..."anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pm
Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?
Re: I Bonds variable rate @ 3.54% in May
Eventually. I wrote down the steps in case I need to do it again in the future. For anyone who is interested in granting transact rights to a spouse (which nisiprius said was important to do)...anon_investor wrote: ↑Fri Apr 23, 2021 10:56 amHope you figured it out. The instructions are on TD... some where!ApeAttack wrote: ↑Fri Apr 23, 2021 9:35 amA couple nights ago I was trying to figure out how to add a beneficiary and grant transact rights to my wife, and after 15 minutes I couldn't figure out if I did it successfully. I called my wife over and said, "You know, I not a stupid man, but ..."anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?
To grant transact rights if you are the owner:
In your account, go to ManageDirect tab > Assign View or Transact rights link > Select the lot (and the rest should be self-explanatory)
To check whether transact rights have be granted to the other person:
In the spouse's account, go to ManageDirect tab > Access Securities link (and the rest should be self-explanatory)
May all your index funds gain +0.5% today.
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Re: I Bonds variable rate @ 3.54% in May
I also know "someone" who made this mistake a few years ago, buying my ... er ... his spouse's allocation in the same account, thinking that was OK. It wasn't. TD sent me ... er, him ... a note saying, "How dare you!" but let this criminal get away with it. After that, separate accounts. I don't think this is a strategy for cheating, and I don't recommend it.
TIPS: Perfect investment for imperfect times?
- anon_investor
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Re: I Bonds variable rate @ 3.54% in May
Which begs the question, why doesn't the TD account prevent you from buying $10k in a calendar year or at least warn you (kind of like how Vanguard has the tally for that year's IRA contributions)...tipswatcher wrote: ↑Fri Apr 23, 2021 9:41 pmI also know "someone" who made this mistake a few years ago, buying my ... er ... his spouse's allocation in the same account, thinking that was OK. It wasn't. TD sent me ... er, him ... a note saying, "How dare you!" but let this criminal get away with it. After that, separate accounts. I don't think this is a strategy for cheating, and I don't recommend it.
Re: I Bonds variable rate @ 3.54% in May
It's better than 10 years ago when they sent out Little Orphan Annie decoder card things that you had to use to crack a code each time you logged in.anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pmVery neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?Angst wrote: ↑Thu Apr 22, 2021 10:59 am Thanks to #Cruncher's website, you can easily track the progress of any I Bonds here:
http://eyebonds.info/ibonds/home1000.html
- anon_investor
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Re: I Bonds variable rate @ 3.54% in May
It feels like they haven't updated their website since then.GTBuzz wrote: ↑Fri Apr 23, 2021 10:23 pmIt's better than 10 years ago when they sent out Little Orphan Annie decoder card things that you had to use to crack a code each time you logged in.anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pm
Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?
Re: I Bonds variable rate @ 3.54% in May
So which of us is going to roll the dice again to see if they give a 2nd warningtipswatcher wrote: ↑Fri Apr 23, 2021 9:41 pmI also know "someone" who made this mistake a few years ago, buying my ... er ... his spouse's allocation in the same account, thinking that was OK. It wasn't. TD sent me ... er, him ... a note saying, "How dare you!" but let this criminal get away with it. After that, separate accounts. I don't think this is a strategy for cheating, and I don't recommend it.
Re: I Bonds variable rate @ 3.54% in May
Fun times. Worth the tradeoff for getting cash back for buying bonds though!GTBuzz wrote: ↑Fri Apr 23, 2021 10:23 pmIt's better than 10 years ago when they sent out Little Orphan Annie decoder card things that you had to use to crack a code each time you logged in.anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pm
Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?
Re: I Bonds variable rate @ 3.54% in May
Ha, I forgot about that. That thing has to floating around here somewhere. A bit of a throwback for sure.GTBuzz wrote: ↑Fri Apr 23, 2021 10:23 pmIt's better than 10 years ago when they sent out Little Orphan Annie decoder card things that you had to use to crack a code each time you logged in.anon_investor wrote: ↑Fri Apr 23, 2021 12:35 amBut that is half the fun of TD! You also get to do that all again when you hit the browser back button!ApeAttack wrote: ↑Fri Apr 23, 2021 12:07 amWhat? You don't like having to find and copy/paste your account number, then go to your email for a one time code because TD doesn't recognize your computer, then use a mouse to type/click your password, then click through a half dozen tabs and submit buttons to check on your interest?Angst wrote: ↑Thu Apr 22, 2021 10:22 pmYes, but it's a LOT easier to "login" to #Cruncher's website!ApeAttack wrote: ↑Thu Apr 22, 2021 12:06 pm
Very neat website -- I just bookmarked it. If I make an I-Bond purchase, at some future date will the TD website tell me its current redemption value? For example, if I purchase $1000 of I-Bonds in May 2021 and I check on the lot in June 2023, will TD tell me its redemption value?
The fool, with all his other faults, has this also - he is always getting ready to live. - Seneca Epistles < c. 65AD
Re: I Bonds variable rate @ 3.54% in May
For those interested, here are the composite rates that will take effect from May 2021 to October 2021 [ 1 ] and run for six months for all outstanding I Bonds, including newly issued ones with a 0.00% fixed rate. [ 2 ] They incorporate the new semi-annual inflation rate of 1.77%:
These composite rates summarize the 521 column near the left side of the I Bond Composite Rates triangle. The source is TreasuryDirect's What have the rates been in the past?.
Code: Select all
Fixed Rate Announced Fixed Composite
# Times First Last Rate Rate
------- ------ ------ ----- ---------
1 May 00 3.60% 7.20% [3]
3 Sep 98 Nov 00 3.40% 7.00%
2 Nov 98 May 99 3.30% 6.90%
1 May 01 3.00% 6.59%
2 Nov 01 May 02 2.00% 5.58%
1 Nov 02 1.60% 5.17%
2 May 06 Nov 06 1.40% 4.96%
1 May 07 1.30% 4.86%
Code: Select all
2 May 05 Nov 07 1.20% 4.76%
2 May 03 Nov 03 1.10% 4.66%
3 May 04 Nov 05 1.00% 4.56%
1 Nov 08 0.70% 4.25%
2 Nov 18 May 19 0.50% 4.05%
2 Nov 09 May 18 0.30% 3.85%
3 May 10 Nov 19 0.20% 3.74%
5 May 09 Nov 17 0.10% 3.64%
14 May 08 May 21 0.00% 3.54% <-- new purchase
- New composite rates take effect every six months based on the month an I Bond is purchased. For an I Bond purchased in May or November, the composite rates above will take effect May 2021 and run through October 2021. But for an I Bond purchased in April or October, they won't take effect until October 2021 and will run through March 2022. See When does my bond change rates?
- Click here for my post from six months ago with the previous composite rates.
- Composite rates are computed as follows and rounded to 4 decimal places:
Code: Select all
composite rate = fixed rate + ( 2 * inflation rate ) + ( fixed rate * inflation rate ) 0.0720 = 0.0360 + ( 2 * 0.0177 ) + ( 0.0360 * 0.0177 )
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Re: I Bonds variable rate @ 3.54% in May
I bought an array of I-Bonds for several years starting in 2000. I was amazed when I ran the Savings Bond Calculator on my portfolio. Monthly average interest is up 44% for the next 6 months vs the previous 6 months. I-Bonds are an investment that requires a very long term time horizon. It looks like they may start really paying off in the current inflation environment. 20-30 years from now - no one knows.
- firebirdparts
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Re: I Bonds variable rate @ 3.54% in May
Well, here we are. I've went through the whole boojum snark initiation ritual and I am now an I series bond enthusiast.
This time is the same
- tipswatcher
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Re: I Bonds variable rate @ 3.54% in May
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!)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.
TIPS: Perfect investment for imperfect times?
Re: I Bonds variable rate @ 3.54% in May
Made my first large I-Bond purchase yesterday.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.
May all your index funds gain +0.5% today.
Re: I Bonds variable rate @ 3.54% in May
You could have waited until the 28th...ApeAttack wrote: ↑Tue May 04, 2021 4:30 pmMade my first large I-Bond purchase yesterday.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.
Re: I Bonds variable rate @ 3.54% in May
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)Thesaints wrote: ↑Tue May 04, 2021 4:31 pmYou could have waited until the 28th...ApeAttack wrote: ↑Tue May 04, 2021 4:30 pmMade my first large I-Bond purchase yesterday.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.
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Re: I Bonds variable rate @ 3.54% in May
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.tipswatcher wrote: ↑Tue May 04, 2021 4:14 pmWelcome 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!)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.