I Bonds Mega Thread (I Bond Heads Rejoice!)

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Kevin M
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Kevin M »

smectym wrote: Fri May 20, 2022 11:05 pm
Hector wrote: Thu May 12, 2022 5:33 pm There is no doubt that variable rate for I Bonds in these 6 months (last 6 + this 6 for 12 months) had the best rate yet. At what inflation rate do you slow down or stop buying or start selling I Bonds?

I don't have $$ to buy I Bonds after funding retirement accounts and HSA. I have some equities in taxable. I can sell that, buy I Bond, and rebalance in retirement accounts. But I think that equities perform better than inflation. Also, equities are more tax efficient than I Bonds if you are not going to sell I Bonds to cover tuition expense.

I would sell equities to buy I Bonds, but if I don't have substantial carry over losses, I would miss out on deducting $3k a year. Lesser equities I have, lesser TLH I can do from now on.
The idea is that you should consider I bonds a long-term investment that will extend decades into a future you have no ability to forecast.
Who made this rule?

Many of us only intend to hold our I bonds until other investments provide more attractive returns. Also, TIPS at maturities beyond 5.5 years have positive real yields, so would provide a higher return than I bonds if held to maturity. The 2/15/2045 TIPS (22.75-year maturity) has a real ask yield of 0.84%, so would provide a better return for someone with a 22.75-year investment horizon than a 0% real I bond.

So I think it would be reasonable for someone to favor holding stocks in taxable and TIPS in tax-advantaged, with the TIPS (individual or fund) duration matched to the duration of the liabilities.

If one has enough in taxable to hold their stocks in taxable and still have enough for some fixed income, then I bonds currently are a great deal, but not necessarily for the long term. At least not for me.

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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by HueyLD »

GaryA505 wrote: Sat May 21, 2022 11:27 am I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
Not really. The only restriction is that a co-owner cannot be unilaterally removed without his/her consent.

“ Bonds registered in co-owner form (two names with the connective OR) will be restricted once the bonds are converted. A "Restricted Security" is a converted Series EE or Series I savings bond on which a co-owner (connective OR) is named.

Because the converted savings bonds were originally issued in paper form, the rights of the registrants are still protected by the regulations under which they were issued. For instance, a co-owner cannot be removed from the registration of a Series EE or Series I savings bond during the co-owner's lifetime without his or her consent. TreasuryDirect ® does not permit the account owner to change the registration of converted securities if they are restricted.

The restriction will remain on the bonds until the co-owner who did not request the conversion consents to a change in registration. When the consent is received from the co-owner, a customer service representative can change the registration.

The restriction does not affect your ability to cash the bonds.”

https://www.treasurydirect.gov/indiv/he ... ertpapersb
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by GaryA505 »

HueyLD wrote: Sat May 21, 2022 1:52 pm
GaryA505 wrote: Sat May 21, 2022 11:27 am I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
Not really. The only restriction is that a co-owner cannot be unilaterally removed without his/her consent.

“ Bonds registered in co-owner form (two names with the connective OR) will be restricted once the bonds are converted. A "Restricted Security" is a converted Series EE or Series I savings bond on which a co-owner (connective OR) is named.

Because the converted savings bonds were originally issued in paper form, the rights of the registrants are still protected by the regulations under which they were issued. For instance, a co-owner cannot be removed from the registration of a Series EE or Series I savings bond during the co-owner's lifetime without his or her consent. TreasuryDirect ® does not permit the account owner to change the registration of converted securities if they are restricted.

The restriction will remain on the bonds until the co-owner who did not request the conversion consents to a change in registration. When the consent is received from the co-owner, a customer service representative can change the registration.

The restriction does not affect your ability to cash the bonds.”

https://www.treasurydirect.gov/indiv/he ... ertpapersb
Like I said, that makes it more complicated. What does it take to do the change in registration? Is there a form or something?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by alluringreality »

GaryA505 wrote: Sat May 21, 2022 11:27 am I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
Interesting, thanks for posting. I hadn't ran across that one.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BrokerageZelda »

alluringreality wrote: Sat May 21, 2022 4:00 pm
GaryA505 wrote: Sat May 21, 2022 11:27 am I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
Interesting, thanks for posting. I hadn't ran across that one.
See above from HueyLD. "Restricted" doesn't restrict your ability to redeem the bond, it only restricts your ability to change the second name on the bond. If you don't plan on doing that, the restriction doesn't affect you.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by alluringreality »

BrokerageZelda wrote: Sat May 21, 2022 4:56 pm See above from HueyLD. "Restricted" doesn't restrict your ability to redeem the bond, it only restricts your ability to change the second name on the bond. If you don't plan on doing that, the restriction doesn't affect you.
Thanks for the note, I wasn't sure how MFJ was handled when getting paper bonds and converting to digital.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by AlwaysLearningMore »

GaryA505 wrote: Sat May 21, 2022 11:27 am
anon_investor wrote: Sat May 21, 2022 7:09 am
GaryA505 wrote: Fri May 20, 2022 11:23 pm
anon_investor wrote: Fri May 20, 2022 10:34 pm
GaryA505 wrote: Wed May 18, 2022 10:42 am I received my single $5000 tax refund I-Bond on Monday. Now, if they ever get my wife's account approved, we'll buy another $10000.
Did you buy your $10k allotment yet?
Yes, bought my $10000 about a month ago. My wife's account was approved a couple of days ago so we bought her $10000 today.
That's our $25000 for this year.
Very nice. We have been buying $20k/yr since 2020, but haven't gone the tax refund paper I Bond route yet. Maybe next year.
I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
FWIW, Series I Savings Bonds from federal tax refunds can be titled in the name of a trust or entity as well.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by LTCM »

We're in for 10k. Don't let me down i-bonds.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by tj »

LTCM wrote: Sat May 21, 2022 7:25 pm We're in for 10k. Don't let me down i-bonds.


How could they let you down? If the subsequent 6 month variable rate is 0, the 4.8% annual is better than anything else you can find.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by LTCM »

Sorry. I was being facetious in an attempt to highlight the almost bombproof nature of this investment.
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Questions regarding treasurydirect I Savings bonds ?

Post by mk1039 »

[Thread merged into here --admin LadyGeek]

I am planning to purchase I Saving bonds from https://www.treasurydirect.gov/ for $10k

I am not very knowledgeable on this web site. Can anyone please answer following questions.

1 - When we are paid interest ?
1 - What's the Tax rate on its interest? (is it same as our W2 rate ? i don't have state tax)
2 - When we have to pay Tax on its interest?

Any other important thing i need to keep in mind ?
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by SnowBog »

1) Interest is added to the value of the bond monthly. However, the last 3—months are withheld until they reach 5 years. So on your initial purchase, you won't see any interest added in those first 3 months. After 4 months you'll see all the interest except the last 3 months - until the 5 year mark.

2) The interest is considered "ordinary income", and will eventually be taxed at the same rate as your W2 and any bank interest.

3) By default, taxes are deferred - they won't be owed until you redeem the the bonds or they reach their 30-year maturity - whichever comes first. You can optionally recognize the interest every year, and pay taxes every year. If you meet the income threshold and have qualified education expenses (including contributing to a 529) you may be able to redeem them tax free.

If you haven't yet, recommend reading the following:
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by samsoes »

A very important technical consideration: while logged into Treasury Direct, do not, under any circumstances, use the "back" button on your browser. Doing so will immediately kick you off the site and lock your account. Unlocking it requires a phone call with (currently) hours-long wait.

Rather, use the buttons provided on the site to navagate around while logged in.
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by eldinerocheapo »

Good info from the other responders. I've purchased two Series I bonds and three T bills in the last month and can advise it's easy to work with if you go slow and methodically. Also, they pull the funds from your bank account the date of issue, so be sure to have these funds available to transfer a day or two early. They yank them from your account at about 2am in the morning, so be prepared.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by LadyGeek »

I merged mk1039's thread into the ongoing discussion.

(Thanks to the member who reported the post and explained what's wrong.)
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by bluebird89 »

I've already purchased $10k I bonds for the 2022 year using a personal Treasury Direct account linked to my personal checking account.

I now want to purchase another $10k using a separate Treasury Direct account for an LLC that I own... however that LLC doesn't have it's on business bank account. Does anyone know if it will create any issues or nasty grams from Treasury Direct if I create a separate Treasury Direct acct for my business but fund the purchase from my personal checking account? Or do I have to open a business checking in order to make the transaction kosher?

I've seen previous discussions around Trusts not needing to have a separate bank account, but I'm unsure of whether business accounts need separate bank accounts.

Thank you!
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Ron Ronnerson »

bluebird89 wrote: Thu May 26, 2022 10:48 am I've already purchased $10k I bonds for the 2022 year using a personal Treasury Direct account linked to my personal checking account.

I now want to purchase another $10k using a separate Treasury Direct account for an LLC that I own... however that LLC doesn't have it's on business bank account. Does anyone know if it will create any issues or nasty grams from Treasury Direct if I create a separate Treasury Direct acct for my business but fund the purchase from my personal checking account? Or do I have to open a business checking in order to make the transaction kosher?

I've seen previous discussions around Trusts not needing to have a separate bank account, but I'm unsure of whether business accounts need separate bank accounts.

Thank you!
I used the same personal checking account for my individual account, my wife’s individual account, our joint trust account, my sole proprietorship, and my wife’s sole proprietorship. There were no problems.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by GerryL »

About how long does it take for TD to convert paper bonds that were sent to them? Weeks? Months?

I opened a TD account and went through the steps to create a linked conversion account. I recorded my paper bonds and printed off the manifest. Sent all to the provided address using certified mail. USPS tracking shows that the envelope was delivered.

I understand TD won't email me when the conversion has been completed, that I need to just keep an eye on my account to see that the bonds have landed there. But how long can I expect it to take? (It's been two weeks since they were delivered.)

If you have done a paper-to-digital conversion, what has been your experience?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by et14x »

GerryL wrote: Thu May 26, 2022 2:20 pm
If you have done a paper-to-digital conversion, what has been your experience?
I mailed mine on March 9th and they appeared in my account around April 6th.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Richard1580 »

GerryL wrote: Thu May 26, 2022 2:20 pm About how long does it take for TD to convert paper bonds that were sent to them? Weeks? Months?

I opened a TD account and went through the steps to create a linked conversion account. I recorded my paper bonds and printed off the manifest. Sent all to the provided address using certified mail. USPS tracking shows that the envelope was delivered.

I understand TD won't email me when the conversion has been completed, that I need to just keep an eye on my account to see that the bonds have landed there. But how long can I expect it to take? (It's been two weeks since they were delivered.)

If you have done a paper-to-digital conversion, what has been your experience?
I mailed mine in last week. They received them on the 21st (I think - they did not date the certified mail return receipt). Hopefully they will be processed sometime next month.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by TBillT »

GaryA505 wrote: Sat May 21, 2022 11:27 am

I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
TurboTax allowed me to name and split the bond(s), so I put half in my spouse name and (with me as co-owner) and half in my name (with spouse as co-owner) and was pleasantly surprised it did not take too long to get them back in the mails
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by dan7800 »

What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Random Musings »

dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?
I believe the answer is already embedded in your question.

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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by tj »

dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?

Why would they? And if they did, how could it possibly be enough to offset a guaranteed 9% for 6 months?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by TBillT »

IMHO no chance of Series I increase in the fixed rate...but the interesting question is if Series EE could get decent.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by BrokerageZelda »

TBillT wrote: Thu May 26, 2022 4:54 pm
GaryA505 wrote: Sat May 21, 2022 11:27 am

I discovered one of the downsides of the tax refund $5k purchase is that if you file taxes MFJ then the bond will have both names on it with an "OR", and if you convert it to an electronic in TD, it will be "restricted". I think this just means that there are more steps to redeem it, which adds a little more complexity.
TurboTax allowed me to name and split the bond(s), so I put half in my spouse name and (with me as co-owner) and half in my name (with spouse as co-owner) and was pleasantly surprised it did not take too long to get them back in the mails
There is no difference between A OR B and B OR A paper bonds in terms of ownership - both named co-owners have identical rights to the bond, regardless of whose SSN is printed at the top. You can even convert A OR B bonds into digital bonds in B's TreasuryDirect account even though A's name is first on the registration (I have done this personally). So I would recommend not trying to split/rotate the names for next year's paper bonds.

Also: "Restricted" doesn't restrict your ability to redeem the bond in any way, it only restricts your ability to change the second name on the bond (the one that isn't yours). If you don't plan on doing that, the restriction doesn't affect you.
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by delrinson »

samsoes wrote: Wed May 25, 2022 5:34 am A very important technical consideration: while logged into Treasury Direct, do not, under any circumstances, use the "back" button on your browser. Doing so will immediately kick you off the site and lock your account. Unlocking it requires a phone call with (currently) hours-long wait.

Rather, use the buttons provided on the site to navagate around while logged in.
WOW! I knew it didn't work (the back button) but had no idea it could lock the account.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by dan7800 »

tj wrote: Thu May 26, 2022 9:55 pm
dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?

Why would they? And if they did, how could it possibly be enough to offset a guaranteed 9% for 6 months?

What drives the decision for fixed rate? Is there a formula, or is it just that they want to entice more sales?
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by Doom&Gloom »

delrinson wrote: Fri May 27, 2022 5:49 am
samsoes wrote: Wed May 25, 2022 5:34 am A very important technical consideration: while logged into Treasury Direct, do not, under any circumstances, use the "back" button on your browser. Doing so will immediately kick you off the site and lock your account. Unlocking it requires a phone call with (currently) hours-long wait.

Rather, use the buttons provided on the site to navagate around while logged in.
WOW! I knew it didn't work (the back button) but had no idea it could lock the account.
It can lock the account but does not always. It will kick you out immediately. I carelessly used the back button once. I got kicked out but not locked out. I was able to log back in immediately. whew! I would not recommend testing it :wink:
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by GaryA505 »

Doom&Gloom wrote: Fri May 27, 2022 10:11 am
delrinson wrote: Fri May 27, 2022 5:49 am
samsoes wrote: Wed May 25, 2022 5:34 am A very important technical consideration: while logged into Treasury Direct, do not, under any circumstances, use the "back" button on your browser. Doing so will immediately kick you off the site and lock your account. Unlocking it requires a phone call with (currently) hours-long wait.

Rather, use the buttons provided on the site to navagate around while logged in.
WOW! I knew it didn't work (the back button) but had no idea it could lock the account.
It can lock the account but does not always. It will kick you out immediately. I carelessly used the back button once. I got kicked out but not locked out. I was able to log back in immediately. whew! I would not recommend testing it :wink:
When I did it (more than once), I was logged out but not locked out.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by sil2017 »

I already bought my 10k I bond in October 2021 and January 2022.

For January 2023, when will we know the IBOND rate? I like to buy 10k maximum every year.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by aklanche »

sil2017 wrote: Fri May 27, 2022 10:54 am I already bought my 10k I bond in October 2021 and January 2022.

For January 2023, when will we know the IBOND rate? I like to buy 10k maximum every year.
We should know the rate of the iBond you purchase in Jan 2023 by mid october of 2022. That said you'll only know at that point what you'll be getting for the first 6 months of your 2023 purchase. If you'd like to know what rate your 2023 purchase will get for a year wait till mid April 2023 when we will have an idea of what the following 6 month rates on iBonds will be. This way you'll get the rate that will be announced in mid October 2022 for the first 6 months of your 2023 purchase and then the rate announced mid April for the next 6 months of your 2023 purchase. I likely did a terrible job explaining that but made sense in my pea brain atleast. :)
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by exodusNH »

dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?
There is no chance that the Fed will set the rate above 0 because they have no authority here.

The Treasury sets the rate. They have not published how they come up with the rate, other than saying the take the non-marketabilty and the liquidity of the bond into account.

Given the demand for the bonds, it seems unlikely that they'll raise it until inflation returns to the target.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Mel Lindauer »

exodusNH wrote: Fri May 27, 2022 12:06 pm
dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?
There is no chance that the Fed will set the rate above 0 because they have no authority here.

The Treasury sets the rate. They have not published how they come up with the rate, other than saying the take the non-marketabilty and the liquidity of the bond into account.

Given the demand for the bonds, it seems unlikely that they'll raise it until inflation returns to the target.
Agree with this assessment. Why would they raise the fixed rate when they're already overwhelmed with the demand for the current high composite rate? Answer: There's simply no need to do so.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by sil2017 »

aklanche wrote: Fri May 27, 2022 11:32 am
sil2017 wrote: Fri May 27, 2022 10:54 am I already bought my 10k I bond in October 2021 and January 2022.

For January 2023, when will we know the IBOND rate? I like to buy 10k maximum every year.
We should know the rate of the iBond you purchase in Jan 2023 by mid october of 2022. That said you'll only know at that point what you'll be getting for the first 6 months of your 2023 purchase. If you'd like to know what rate your 2023 purchase will get for a year wait till mid April 2023 when we will have an idea of what the following 6 month rates on iBonds will be. This way you'll get the rate that will be announced in mid October 2022 for the first 6 months of your 2023 purchase and then the rate announced mid April for the next 6 months of your 2023 purchase. I likely did a terrible job explaining that but made sense in my pea brain atleast. :)
LOL....I had to read it twice. I will just buy in January 2024 . No matter what, it would be much better rate than my savings and checking accounts.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by mega317 »

Mel Lindauer wrote: Fri May 27, 2022 12:10 pm
exodusNH wrote: Fri May 27, 2022 12:06 pm
dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?
There is no chance that the Fed will set the rate above 0 because they have no authority here.

The Treasury sets the rate. They have not published how they come up with the rate, other than saying the take the non-marketabilty and the liquidity of the bond into account.

Given the demand for the bonds, it seems unlikely that they'll raise it until inflation returns to the target.
Agree with this assessment. Why would they raise the fixed rate when they're already overwhelmed with the demand for the current high composite rate? Answer: There's simply no need to do so.
Your assessments suggest supply and demand are a factor. If so, why do they artificially limit supply?
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Re: Questions regarding treasurydirect I Savings bonds ?

Post by SnowBog »

GaryA505 wrote: Fri May 27, 2022 10:30 am
Doom&Gloom wrote: Fri May 27, 2022 10:11 am
delrinson wrote: Fri May 27, 2022 5:49 am
samsoes wrote: Wed May 25, 2022 5:34 am A very important technical consideration: while logged into Treasury Direct, do not, under any circumstances, use the "back" button on your browser. Doing so will immediately kick you off the site and lock your account. Unlocking it requires a phone call with (currently) hours-long wait.

Rather, use the buttons provided on the site to navagate around while logged in.
WOW! I knew it didn't work (the back button) but had no idea it could lock the account.
It can lock the account but does not always. It will kick you out immediately. I carelessly used the back button once. I got kicked out but not locked out. I was able to log back in immediately. whew! I would not recommend testing it :wink:
When I did it (more than once), I was logged out but not locked out.
I've used the back button more than I'd care to admit... I've never been locked out as a result...

Maybe that used to be an issue... But i haven't noticed it in several years...
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Mel Lindauer
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Mel Lindauer »

mega317 wrote: Fri May 27, 2022 2:43 pm
Mel Lindauer wrote: Fri May 27, 2022 12:10 pm
exodusNH wrote: Fri May 27, 2022 12:06 pm
dan7800 wrote: Thu May 26, 2022 9:14 pm What is the likelihood that people feel that the fed could raise the fixed rate above 0 in the fall?
There is no chance that the Fed will set the rate above 0 because they have no authority here.

The Treasury sets the rate. They have not published how they come up with the rate, other than saying the take the non-marketabilty and the liquidity of the bond into account.

Given the demand for the bonds, it seems unlikely that they'll raise it until inflation returns to the target.
Agree with this assessment. Why would they raise the fixed rate when they're already overwhelmed with the demand for the current high composite rate? Answer: There's simply no need to do so.
Your assessments suggest supply and demand are a factor. If so, why do they artificially limit supply?
While one can never seem to outguess Treasury, I did question why they raised the fixed rate years ago when we had all expected them to lower it (or at least keep it the same). At that time, Treasury told me that they wanted to stimulate I Bond sales.

Times change and so does Treasury. They no longer seem to need to stimulate sales. I've found that trying to figure out their reasoning is a lost cause that's certainly beyond me.
Best Regards - Mel | | Semper Fi
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by mega317 »

Lol probably a good decision. If they want to stimulate sales in the future they could just post on this thread a code that removes the purchase limit.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by Mel Lindauer »

mega317 wrote: Fri May 27, 2022 3:47 pm Lol probably a good decision. If they want to stimulate sales in the future they could just post on this thread a code that removes the purchase limit.
I love it! A secret Boglehead code!
Best Regards - Mel | | Semper Fi
moorso
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by moorso »

Quick question. What is the procedure for a beneficiary to cash in an I Bond upon death of the original I Bond owner ? Also, for an I Bond that is held by an LLC, I understand there can be no beneficiary of that bond. If the LLC owner were to pass away, would that bond then become the property of the owners estate and then potentially have to go through probate ?
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by evelynmanley »

moorso wrote: Sat May 28, 2022 4:29 am Quick question. What is the procedure for a beneficiary to cash in an I Bond upon death of the original I Bond owner ? Also, for an I Bond that is held by an LLC, I understand there can be no beneficiary of that bond. If the LLC owner were to pass away, would that bond then become the property of the owners estate and then potentially have to go through probate ?
Harry Sit's articles are great! This one addresses your questions:

1. https://thefinancebuff.com/i-bonds-bene ... irect.html

<<After You Die

After you die, your second owners and/or beneficiaries need to contact TreasuryDirect by phone or email, effectively saying:

The owner of this account died. I’m the [second owner or beneficiary] of some bonds in the account. Please give those bonds to me.

If your beneficiary has their own TreasuryDirect account, you can let the beneficiary see which I Bonds they’re a beneficiary of by granting them View rights on those I Bonds. The process to grant View rights to the beneficiary is the same as the process to grant Transact rights to the second owner, as I showed in the previous post. You also have to do it bond by bond.

After your second owner or beneficiary inherits your I Bonds, they can name a second owner or beneficiary again on those inherited I Bonds.<<


2. https://thefinancebuff.com/buy-i-bonds- ... r-llc.html

<<After You Die: A business account in TreasuryDirect can’t designate a second owner or a beneficiary. If you die, whoever takes over the ownership of the business also takes over the I Bonds the business owns. The new owner needs to change the business account’s Account Manager with FS Form 5446. This form also requires a signature guarantee.>>


Archives: https://thefinancebuff.com/tag/i-bonds
moorso
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by moorso »

Thanks for that information evelynmanley . So as I understand for an LLC, you can transfer those bonds from the LLC to the owners personal account. But it appears that transfer would be included in your maximum annual limit, so best to do it when not buying any personal bonds I guess. The other thing would be bonds held by a trust, but it seems that disposal of those bonds on death would be simply dictated by the wording of the trust.
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by ondarvr »

I may have missed this, so if it was already mentioned, sorry.

I had been locked out of my account and instead of doing anything I added $ to my wife's account and figured I get back to mine later.

About a week ago TD sent an email saying my account was unlocked and that there was a new way to handle passwords and things in place on the site to make life easier for users. And when I logged in everything was back to normal, I didn't need to do anything to resume using it.
moorso
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by moorso »

I have a question about rates indicated on the TD website. I purchased an I bond in August and November of 2021 as well as 2 in January of 2022 (one for personal account and one for an LLC). TD is saying the interest rate for all these bonds is 7.12% except for the one November 2021 purchase which TD says has an interest rate of 9.62%. Does this make any sense to anyone or did TD simply screw up entering the current rate for that bond?
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You Know What I Mean
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by You Know What I Mean »

moorso wrote: Mon May 30, 2022 6:13 am I have a question about rates indicated on the TD website. I purchased an I bond in August and November of 2021 as well as 2 in January of 2022 (one for personal account and one for an LLC). TD is saying the interest rate for all these bonds is 7.12% except for the one November 2021 purchase which TD says has an interest rate of 9.62%. Does this make any sense to anyone or did TD simply screw up entering the current rate for that bond?
It makes sense. The rates adjust every six months from the issue dates of the individual bonds. So, the August bond reset in February to the prevailing rate, 7.12%, at that time. The January bonds are still in their initial six-month period with the prevailing rate at issue time in January, 7.12%. On the other hand, the November bond reset in May to the current rate, 9.62%.
"Well, she was just seventeen, You Know What I Mean, and the way she looked... was way beyond compare."
evelynmanley
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by evelynmanley »

moorso wrote: Mon May 30, 2022 6:13 am I have a question about rates indicated on the TD website. I purchased an I bond in August and November of 2021 as well as 2 in January of 2022 (one for personal account and one for an LLC). TD is saying the interest rate for all these bonds is 7.12% except for the one November 2021 purchase which TD says has an interest rate of 9.62%. Does this make any sense to anyone or did TD simply screw up entering the current rate for that bond?
These are nifty:

https://eyebonds.info/ibonds/index.html

https://eworkpaper.com/ibond.php
AlwaysLearningMore
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by AlwaysLearningMore »

ondarvr wrote: Sun May 29, 2022 1:19 pm About a week ago TD sent an email saying my account was unlocked and that there was a new way to handle passwords and things in place on the site to make life easier for users.
Can you please elaborate (in general terms) about the "new way to handle passwords?" When I log in, the process is the same.
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
ondarvr
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by ondarvr »

Dear TreasuryDirect® Customer:

We recently made a system update to streamline and simplify the account unlock and password reset self-service function.  Please see below for an important message on steps you can now take to attempt to login into your account or reset your password.

The lock has been removed from your TreasuryDirect account. You may now log into your account using your account number and password.  If you don’t remember your password, please select the “Forgot your Password?” link on the log in page and follow the onscreen directions. 

Please be aware, entering an incorrect password or answering a security question incorrectly three times will cause you to be locked out of your TreasuryDirect account again.

If you become locked out of your account again, you will receive a message advising you to contact our office at 844-284-2676 between the hours of 8:00 a.m. and 5:00 p.m. Eastern Time, Monday through Friday. You must call this number and speak to a customer service representative if you receive this message. We cannot assist you by e-mail. Please also be aware that wait times for reaching a customer service representative are substantial at this time.  

Additional information and instructions to avoid future lock outs:

Security Questions: If you have not written down the answers to your security questions, please take the time to do so now.  To view the answers to your security questions, access your account using your account number and password. Once logged in, click the ManageDirect® tab, then under the heading Manage My Account click View/Change my Security Questions. You will be presented with a security question that you must answer correctly, then you can view your Security Questions and Answers. Write down this information and store in a safe place for future reference. Password: If you do not remember your password, during the login process when you reach the Access Your Account>>Password screen, scroll to the bottom and click the link Forgot your Password. Your password reminder will be displayed. If it does not help, click No, then enter your social security number. You will then need to answer your three security questions. If you successfully enter the information requested, you will then be prompted to create a new Password and Password reminder, asked to enter the new Password, then you will be logged into your account.

Thank you for using TreasuryDirect!
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Re: I Bonds Mega Thread (I Bond Heads Rejoice!)

Post by young danny »

I dove in and just purchased $10,000. We are holding off to do my wife until 2023 starts when by then she'll have a semester in teaching complete, we'll have agreed what her asset allocation is for her 403B (which we'll max out), figure out other savings buckets and how much we'll (car, vacation, college fund for future kiddos), etc. Hopefully we'll max her out next year.
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