Green grass and
high tides
| I am leary of many things these days. Too good to be true? 10% interest? I do not know. But I am not buying them. Probably missing the boat. But oh well.
"Practice like you want to play in the game"
|
| | |
Eschew Obfuscation
| quote: Originally posted by bonfire:
what are some legit companys to go through?
You buy them direct from the gov at https://www.treasurydirect.gov/
_____________________________________________________________________
“One of the common failings among honorable people is a failure to appreciate how thoroughly dishonorable some other people can be, and how dangerous it is to trust them.” – Thomas Sowell
|
| | | Posts: 6653 | Location: Chicago, IL | Registered: December 17, 2007 | 
IP
|
|
No, not like
Bill Clinton
| "What's the interest rate on an I bond you sell today? For the first six months you own it, the Series I bond we sell from May 2022 through October 2022 earns interest at an annual rate of 9.62 percent. A new rate will be set every six months based on this bond's fixed rate (0.00 percent) and on inflation." Hmmm, may need to drop some $$$ on this
|
| | |
Green grass and
high tides
| quote: Originally posted by CoolRich59: quote: Originally posted by bonfire:
what are some legit companys to go through?
You buy them direct from the gov at https://www.treasurydirect.gov/
And that makes me very leary right there.
"Practice like you want to play in the game"
|
| | |
Drill Here, Drill Now
| The big issue is that iBonds use the Fed's inflation calculation methodology (aka CPI), and Greenspan and other slimeballs cooked the books on inflation back in the 90s. Their changes to consumer price index (CPI): CPI no longer measures the cost of maintaining a constant standard of living.
CPI no longer measures full inflation for out-of-pocket expenditures.
With the misused cover of academic theory, politicians forced significant underreporting of official inflation, so as to cut annual cost-of-living adjustments to Social Security, etc.
Use of the CPI to adjust retirement benefits, private income or to set investment goals impairs the ability of retirees, income earners and investors to stay ahead of inflation.
Most egregious of all: Substitution Theory Essentially, consumers shift their buying patterns in response to changing prices, substituting one product for another. The [CPI] index is based on a fixed market basket of goods and services. But, for example, if the price on an item like steak gets too expensive, consumers may switch to hamburger. 
Fortunately, there is a website called ShadowStats that still calculates inflation using both the 1980 and 1990 methodology. Over 15% CPI using 1980 methodology and over 10% CPI using 1990 methodology. We've surpassed Jimmy Carter level inflation.
The other iBond flaw is going through the governments website and having their holding less than 5 year penalties. I bought iBonds a few years back and I couldn't wait to get away from them.
Ego is the anesthesia that deadens the pain of stupidity
DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer. |
| | | Posts: 24399 | Location: Northern Suburbs of Houston | Registered: November 14, 2005 |
IP
|
|
Member
| In theory yes... But the money isnt doing me any good in my 0.5% interest bank account. I bought $5k last week. Im OK w the limitations that tatortodd points out, despite the .gov finger on the scale on the interest rate. JB quote: Originally posted by Ivan:
Is it me, or does anyone else have an issue loaning this trash administration any cash?
---------------------------------------
It's like my brain's a tree and you're those little cookie elves.
|
| | | Posts: 3625 | Location: Cary, NC | Registered: February 26, 2013 |
IP
|
|
Optimistic Cynic
| Treasury Direct is not your only option. There are several ETFs that hold I Bonds exclusively, any broker should have access to these. I do not know how the rules regarding amounts and holding periods apply to these instruments, nor are these explicitly enumerated in the online documentation I've found. |
| | |
Savor the limelight
| I bought $80k of the I-bonds because I didn’t see any reason not to. |
| | |
Member
| quote: Originally posted by tatortodd: The other option is going with an Inflation Protect Bond ETF which allows the owner to get out sooner and gets rid of the $10k cap. Here is a list.
Considering these all show negative YTD yields, why are they better than self-purchased I bonds? Or am I reading it wrong? |
| | | Posts: 1273 | Location: NE Indiana | Registered: January 20, 2011 |
IP
|
|
Member
| quote: Originally posted by trapper189:
I bought $80k of the I-bonds because I didn’t see any reason not to.
You did that over several years, correct? |
| | | Posts: 1273 | Location: NE Indiana | Registered: January 20, 2011 |
IP
|
|
His Royal Hiney
| You're limited to how much you can put in, $10k a year per person plus any tax refund that you want to put in. It does recalculate the interest periodically, IIRC every six months. You have to hold it for five years otherwise, you give up three months of interest. I don't think it's that bad like if interest rates tumble, then it's not too painful to give up three months of interest. If you have the cash to tie up, then no other vehicle gives you that kind of interest with that amount of "safety."
"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.
|
| | | Posts: 20707 | Location: The Free State of Arizona - Ditat Deus | Registered: March 24, 2011 |
IP
|
|
