Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Saving Bonds Wizard
Old 05-06-2009, 08:04 PM   #1
Recycles dryer sheets
 
Join Date: Jul 2008
Location: Joaquin, Texas
Posts: 164
Saving Bonds Wizard

I have some I-Bonds that I keep track of on the Saving Bond Wizard Program..I log in the bond and it calculates my rate, yield and gain..I know I pay a penalty if I cash one before it is five years old but I still don't understand the rate and yield as listed..I have the following I-bonds with the following rates and yields..Anyone care to explain

issue date: 05/2000.....
rate: NA
yield: 6.62%

issue date: 04/2001
rate 8.4%
yield 6.26%

issue date: 2006
rate: 6.35%
yield: 4.05%

I can understand that on the 2006 bonds my yield would be lower due to the penalty if I cashed them now but I don't understand the rates and yields of the older bonds.
__________________

__________________
Life is good. Then you die.
lawman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-06-2009, 08:08 PM   #2
Recycles dryer sheets
 
Join Date: Nov 2003
Location: Charlotte
Posts: 360
I find this pretty straightforward....

Individual - I Savings Bonds Rates & Terms
__________________

__________________
WilliamG is offline   Reply With Quote
Old 05-06-2009, 08:17 PM   #3
Recycles dryer sheets
 
Join Date: Jul 2008
Location: Joaquin, Texas
Posts: 164
I guess my question would be:
Does the indicated yield give the overall yield to date of the bond including penalties?

Or does the yield just refer to a six month period?
__________________
Life is good. Then you die.
lawman is offline   Reply With Quote
Old 05-06-2009, 10:58 PM   #4
Recycles dryer sheets
thefinancebuff's Avatar
 
Join Date: Dec 2008
Posts: 262
Rate is what the bond is currently earning. Yield is what the bond has earned (annualized) since you bought it, taking into consideration the penalty.
__________________
thefinancebuff is offline   Reply With Quote
Old 05-07-2009, 11:58 AM   #5
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by thefinancebuff View Post
Rate is what the bond is currently earning. Yield is what the bond has earned (annualized) since you bought it, taking into consideration the penalty.
Yep. And someone can look at a bond that's about to turn five years old and observe a sudden jump in yield as soon as it turns five. That's because the yield no longer reflects a penalty for redemption.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 05-07-2009, 01:22 PM   #6
Recycles dryer sheets
 
Join Date: Jul 2008
Location: Joaquin, Texas
Posts: 164
gotcha! thanks guys.....I loaded up on them years ago and glad I did!
__________________
Life is good. Then you die.
lawman is offline   Reply With Quote
Old 05-07-2009, 04:37 PM   #7
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by lawman View Post
gotcha! thanks guys.....I loaded up on them years ago and glad I did!
Me too. Although the yield is going to take a hit for 6 months.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
Old 05-07-2009, 05:04 PM   #8
Recycles dryer sheets
 
Join Date: Jul 2008
Location: Joaquin, Texas
Posts: 164
Quote:
Originally Posted by Bikerdude View Post
Me too. Although the yield is going to take a hit for 6 months.
That's okay...They've been my best investment and I think in a couple of years they will shine as the government monetizes all this debt...
__________________
Life is good. Then you die.
lawman is offline   Reply With Quote
Old 05-08-2009, 08:40 PM   #9
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 242
So, the consensus is, hang on for 6 months of 0% interest? Or sell and go to a cd for 1.2%? I'm unsure what to do.
__________________
Sparky is offline   Reply With Quote
Old 05-08-2009, 11:05 PM   #10
Thinks s/he gets paid by the post
Bikerdude's Avatar
 
Join Date: Jul 2006
Posts: 1,901
Quote:
Originally Posted by Sparky View Post
So, the consensus is, hang on for 6 months of 0% interest? Or sell and go to a cd for 1.2%? I'm unsure what to do.
I guess that would depend on your base rate going forward. I-bonds at worst will match (official) inflation plus they are tax deferred investments.
__________________
“I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said” Alan Greenspan
Bikerdude is offline   Reply With Quote
They may also be state tax exempt
Old 05-12-2009, 08:06 AM   #11
Recycles dryer sheets
shotgunner's Avatar
 
Join Date: Jun 2008
Posts: 454
They may also be state tax exempt

In my case interest earned on US Savings Bonds is exempt from New Hampshire's Dividends and Interest Tax of 5%. Which is applied to amounts over $2400 for singles filers and $4800 for married.
__________________
Never surrender what you really want for what you want right now.
shotgunner is offline   Reply With Quote
Old 05-12-2009, 11:59 AM   #12
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by Bikerdude View Post
I guess that would depend on your base rate going forward. I-bonds at worst will match (official) inflation plus they are tax deferred investments.
Actually the best scenario for I bonds is high deflation. You have a high rate of real return (even at 0% nominal yield) with absolutely no taxes.

Of course, it's not the best outcome for our economy, but that's another can o' worms...
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Microsoft Files and Settings Transfer Wizard Midpack Other topics 21 09-21-2008 05:41 PM
Series EE saving bonds rickier55 FIRE and Money 6 08-24-2008 10:54 PM
Exceeds the Saving Bonds Limit huutrinon FIRE and Money 7 05-03-2008 09:00 AM
Muni Bonds - Calif State University Revenue Bonds - 2008A. Disappointed FIRE and Money 0 03-24-2008 10:25 PM

 

 
All times are GMT -6. The time now is 01:22 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.