Check it out!!!

Inflation indexed rate of return on Series I bonds from the U.S. government.

Currently indexed at 9.62% rate of return/interest!!!




"Series I Savings Bonds

NEWS: The initial interest rate on new Series I savings bonds is 9.62 percent. You can buy I bonds at that rate through October 2022. Learn more.

KEY FACTS: I Bonds can be purchased through October 2022 at the current rate. That rate is applied to the 6 months after the purchase is made. For example, if you buy an I bond on July 1, 2022, the 9.62% would be applied through January 1, 2023. Interest is compounded semi-annually.

REMEMBER! You can only purchase up to $10,000 in I bonds each calendar year. If you buy I Bonds exceeding that limit, we will process a refund, which may take up to 16 weeks.

Use I bonds to:

save in a low-risk product that helps protect your savings from inflation
supplement your retirement income
give as a gift
pay for education

..."

Buy one for yourself, your spouse and one in each of your kids names if they aren't going to do it.

YMMV.

I heard the current inflation is transitory.

Let's hope that is all it is. (Fingers crossed while praying.)

I haven't looked into this fully, but on its face it could be a real good thing for those who an afford it.

I wonder if you can use IRA or 401k or the like funds to buy-in and then keep the bonds as part of your retirement portfolio without taxation, until you sell or cash out?

Time to call my people...

Series I bonds is the best place to park any extra cash right now thanks to rising inflation. Right now (and pretty much anytime) a risk free 9.62% annual return is almost unheard of for any investment.

Some things that one should be aware of...
- Your money in I bonds is locked up for a minimum of one year.
- If you sell before then, you'll receive no interest. If you sell before 5 yrs, you'll forfeit the prior 3 months interest. If you sell after 5 yrs there is no penalty.
- The interest rate is adjusted twice a year (May 1st and November 1st).
https://www.treasurydirect.gov [/color] in amounts of $25 or more to the penny. There is no secondary place to buy them so you must go through Treasury Direct. You can get paper versions by using your tax refunds in $50, $100, $200, $500, $1,000, $5,000 increments.
- Limit of $10k per calendar year per Social Security number.

The current interest rate of 9.62% is locked in on bonds purchased from May-October 2022. On Nov 1st, a new I bond interest rate will be set depending on inflation. Bonds purchased on and after Nov 1 will be locked in at that new rate. The following May, a new rate will be determined for those bonds and so on and so forth.

As I understand it, you can buy anytime between now and the last business day before Nov 1 to lock into the 9.62% rate.

If, on Oct 31 of 2022 (a Monday) it looks like inflation is going down, you can still lock in the current 9.62% bond interest rate if you buy on Oct 31st. If i looks like the rate is going up, wait a day (Tues Nov, 1st) and lock in on the new increased bond interest rate.

So you can buy some now and until Oct 31st to lock in the 9.62%. If you want to buy more maybe wait until Oct 31 and see where the interest rate will be going. If i looks like it will be down, buy more on Oct 31 to still get the 9.62%. If it looks like it will be going up, buy the next day or beyond and lock in on the new higher interest rate.

You can't buy them using IRA or 401(k) money. There is no secondary market. Can only buy them from TreasuryDirect.gov

The bond interest earnings are exempt from state tax but are subject to Fed taxes when you cash out unless the money is used for education. Interest-earning period: 30 years or until you cash them, whichever comes first.

At a glance:
https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm [/b][/color]

Bucky be the man!
Thanks for posting this rfenst!

Good work Bucky!

I'll likely buy some as a a safe place to park some cash. It's hard to pass up a 9+% risk free return on investment especially the way the market has been going lately. I'll sock some money away in them try to forget I have them.

I'll buy some in my kids' names too. Since both the stock market and the overall bond market have been taking a $hit lately... it's hard to argue against investing with something with a risk free 9+% return. (Unless the US government takes a complete $hit and is dissolved but in that case we'll have way more issues to worry about than our investments).

NINE!

Wow! That almost keeps up with inflation.

😂

Someone? Somebody? Or something is HIGH ON C.R.A.C.K.
AND L.S.D. AND METHAMPHETAMINE CONCURRENTLY AT THE U.S. TREASURY???

WHAT THE **** IS THIS BULL****???

SOMEBODY HAS GONE CRAZY???

This can't be true???

It's a mirage and a fantasy and a Ponzi scheme all wrapped up in a burrito...

The current state of inflation is *{cough, cough}* transitional.

If you believe the market will bounce back (it always does eventually) I'd DCA into broad market funds while they are "on sale". Nobody knows when the bottom will happen and when it will turn to corner. I personally believe that we have some more rocky roads ahead before things settle down (just my opinion).

Cash is king so it's a good idea to have a cushion sitting around for mid and near term use. An emergency cushion in case you need tap into it right away. You never know when some hospital bills might come into play, your car needs to be fixed, or if you want to buy golden toilets, a kitchen upgrade, your furnace/AC $hits bed, need to buy stone dust and patio pavers...

In my opinion, Series I bonds is a good place to stash some extra cash that you don't plan on using for awhile. With a minimum buy in of $25 and a guaranteed return of 9.6% right now (inflation adjusted every 6 months), it's better than a savings account. Again, one should have a cushion and liquid assets that can be tapped into for any immediate or unplanned things (a short term safety net).

Another option is buying TIPS (Treasury Inflation-Protected Securities). These can be bought on the open market within your IRA or 401(k) (however it's rare that an employer sponsored 401 will have a TIPS option in their investment choices). I don't use TIPS, I think they kinda suck and would rather use the money in other equities. That's just me.

https://www.treasurydirect.gov/indiv/products/prod_tipsvsibonds.htm [/u]

Also, never take financial advice from some blockhead on a discount internet cigar forum.

Put $10K in Tesla and $10K in an I-bond and walk away. Check back in 30 years.

They'll both be in bankruptcy before then.#-o

And Musk will be living on Mars.

In 30 years I might not even be alive. If so, I'd be in my early 80's and not likely able to remember any passwords or account numbers for which to check them with. I'll leave it up to my kids to try to find that $hit.

Maybe I'll have the information stitched into the waistband of my diapers... code name "Rosebud"

Got to get moving. I haven't bought yet. Has anyone else?

We have until Oct 31 to lock into the current rate. On Nov 1, a new rate will be set. I'll probably buy some before Oct 31 and sit and wait to see where the interest rates are going for the next set rate.

NINE! teen.

Gots a little cash rattling around. Will prolly buy the limit for wife and I soon. Still need to read all the rules on the site first.