Me too!dcabler wrote: ↑Sat Mar 18, 2023 7:43 pmFor #4, I see that as primarily an advantage for somebody who uses I-bonds as part of their emergency fund. I could easily see having a few of the $5K bonds which were purchased via a tax refund in paper form if that's why I held I-bonds.Mel Lindauer wrote: ↑Sat Mar 18, 2023 2:02 pmSeveral points:coachd50 wrote: ↑Sat Mar 18, 2023 8:31 amI agree wholeheartedly. I think some posters, particularly newer or lesser experienced have been done a disservice the last few months when asking questions and looking for opinions and strategies about purchasing Series I Savings Bonds in 2023- with low fixed rates and a seemingly cooling inflationary environment by posts conflating the issue talking about the benefits of 3% fixed bonds bought 25 years ago that also yielded credit card bonuses.nps wrote: ↑Sat Mar 18, 2023 5:46 amThat's great that you have no need to buy I bonds going forward! You have clearly done well and amassed what you need in paper bonds.Mel Lindauer wrote: ↑Fri Mar 17, 2023 8:33 pm That's simply a risk I'm not willing to take since I already have more than my fair share of high fixed rate I Bonds.
However the people that are trying to evaluate the risk of buying electronic bonds now are not similarly situated. It is not possible for them to buy large amounts of paper bonds. This is a thread about buying I bonds, perhaps there should be a separate one to reminisce about the good old days of I bonds when the fixed rates were high, you could buy $30k worth on your credit card, and those large amounts would be delivered to you in paper form. None of those things apply today.
As for the risk, "you've been warned" therefore "you can't go crying to TD" is simply not an accurate description of one's options in remediating an account breach. Using it as an argument to prefer paper bonds is also not relevant to most people deciding whether to buy bonds today. Once again, the ability to decide between paper and electronic has long since passed for anything but minimal amounts.
I think those looking for info, opinions, and strategies ( myself included) would be so much better served if the knowledge and wisdom of those well versed in I bonds would focus on the current situation and give opinions on that even if they aren't personally themselves in the same situation.
I absolutely think that concerns over TD would be important to factor into the current situation, and I appreciate Mel's candor on that topic.
1. I was a lone voice in the wilderness in support of I Bonds when they first came out. I still am a proponent of them, as my posts have proven over the years.
2. However, having said that, I personally am not a fan of TD for a number of reasons, but I don't try to discourage those who find the website and TD functional.
3. I just want those who use TD to be aware of the risk (granted very low) associated with TD when it comes to having their account cleaned out by a hacker since I never see that discussed.
4. I wonder why, when folks get paper I Bonds from their tax returns, many (most) seem to feel the need to immediately send them off to TD to be added to their electronic bonds. I think that holding on to those paper I Bonds offers a lot of security and flexibility for when money is needed immediately in an emergency and TD is down for maintenance or other reasons, or they are locked out for some silly reason, such as hitting the backspace key.
In the end, I simply present my opinions and let folks decide for themselves. I'm not on a mission against TD; I just personally don't feel comfortable with it for both me and my heirs.
To each his/her own. Whatever works for you.
Currently I own duration matched TIPS to provide me inflation adjusted income till the end of my 89th year and I have I bonds for the rest of the way for that part of my portfolio. Here, simplicity rules.
I only wish I were a BH'er back when you were the lone voice crying in the wilderness!!!!
Cheers.
I learned of I-Bonds a bit late, like 2005, while listening to a financial radio talk show. So I looked into them and immediately tested the waters with a $5,000 buy.
That went well so continued on. Just wish I would have known about them back when the limit was higher (I believe it was $30k annual?) and you could buy them with a cash-back credit card to even get an extra bonus!
But still glad I heard of them at all, even if it was a little late.
P.S. Come to think of it, it was also thru a financial radio talk show that I discovered Bogleheads in 2008!