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I-Bond maturity value estimator?
Old 01-17-2015, 09:09 AM   #1
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I-Bond maturity value estimator?

I bought a few I-bonds 5-15 years ago & know how to determine their present value, but am searching for a tool to estimate their value at maturity (and, ideally, other future dates prior to maturity). (I understand it can only be an estimate due to 1 component of the interest rate being subject to changing every 6 months.)
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I-Bond maturity value estimator?
Old 01-17-2015, 10:01 AM   #2
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I-Bond maturity value estimator?

If you only have a few IBonds and they all have different fixed rates, you could easily run them through a simple savings calculator like they have at Bankrate. You will have to make an assumption on inflation. Many choose 2-3% though it will be a guess. The simple savings calculators will show a balance for every year you project out to. Don't plan on the upcoming 6 month cycle providing you any interest. It is way under 0% and running out of time.
I have started ditching mine this month only keeping the few that have a small fixed attached... They might get sent packing too sometime soon.


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Old 01-17-2015, 10:30 AM   #3
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Quote:
Originally Posted by HtownRose View Post
I bought a few I-bonds 5-15 years ago & know how to determine their present value, but am searching for a tool to estimate their value at maturity (and, ideally, other future dates prior to maturity). (I understand it can only be an estimate due to 1 component of the interest rate being subject to changing every 6 months.)
Rose,
As you imply, there's no accurate way to know the future nominal value of the bonds, because we don't know what inflation will be. Luckily, for most practical purposes, there's not much reason to try to figure out the nominal value of our investments in the future. What is most useful is knowing the "real" value of investments, the amount of purchasing power they will have. Luckily, this is very easy to tell with I-bonds: Their real growth rate is the fixed component of the interest rate they have.
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Old 01-17-2015, 10:36 AM   #4
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I would assume that you are using the SBW Ibonds calculator that the government provides, so one click gives you the current value.

As to 30 years... If you are already past the penalty date, why would you care about the 30 year value? In my case, with base rates of 3+% from years ago, I am still getting beteen 4% and 6%, so have no intent to cash them right now, but if we were to get to high inflation of 4% or 5% CPI (very unlikely but...) then I would cash them in and reinvest.

In any case, here's the government calculator for estimating compound interest.

Compound Interest Calculator | Investor.gov
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Old 01-17-2015, 01:13 PM   #5
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Originally Posted by samclem View Post
Rose,
As you imply, there's no accurate way to know the future nominal value of the bonds, because we don't know what inflation will be. Luckily, for most practical purposes, there's not much reason to try to figure out the nominal value of our investments in the future. What is most useful is knowing the "real" value of investments, the amount of purchasing power they will have. Luckily, this is very easy to tell with I-bonds: Their real growth rate is the fixed component of the interest rate they have.
+1

I don't have much use for future nominal numbers.
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Old 01-17-2015, 05:06 PM   #6
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Quote:
Originally Posted by HtownRose View Post
I bought a few I-bonds 5-15 years ago & know how to determine their present value, but am searching for a tool to estimate their value at maturity (and, ideally, other future dates prior to maturity). (I understand it can only be an estimate due to 1 component of the interest rate being subject to changing every 6 months.)
Just use a "simple compound interest" formula. In the Microsoft calculator program, put it on "scientific" mode, and use the following formula:

Future value = Starting value times (1+R)^Y

R = interest rate you want to assume, entered as a decimal (10% = 0.10)
Y = number of years from starting to end point

for the (1+R)^Y, you have to use the calculator's (X^Y) button.
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Old 01-18-2015, 09:02 AM   #7
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Thanks y'all.
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