The I Bond Thread

[Mulligan]

I have a friend who is 70. He has a 40 year old wife. And a child who will be in kindergarten in a year or two.

As far as 7%+ I-bond rates, I would prefer going back to 1 or 2% rates based upon much lower inflation. I chuckle when I see all of the concern of the price of gasoline, while inflation steals so much more from us than even the most rapacious energy Mega Corp.

Food is just a blip on my monthly expenditures. But, for people who are just getting by on limited incomes, the increases are just crazy. I eat a few crappy low end food items because of my simpleton tastes and have noticed crazy increases. A $2.50 Jacks pizza a year ago (and had been that price for a long time) is now suddenly $3.50. My favorite ready made ice tea half gallon jug went from 1.98 to $2.48 pretty much at once. Oddly enough though after my peeps jumped from $1.00 to $1.24 last year, the price remains unchanged this year. Plus they have a nice new cotton candy flavor, I am stocking up on, ha.

 

[Accidental Retiree]

Accidental Retiree, did you set up a new account # and separate login on TD from your individual accounts? I have a revocable trust and want to setup and purchase I bonds in that. Thanks.

I opened a new Entity account, and it has a separate log in.

The instructions are here:

https://www.treasurydirect.gov/indiv/TDTour/default_entity.htm

 

[pb4uski]

PB, That base case seems most reasonable. And as you are doing, the comparative marker should be the 3 yr Tbill, for state income tax free purposes (if applicable, as it is for me). If you wait past April to fund 2025, the variable becomes more undefined and likely a worse bet. As the likely hood of banging out future 7% 6 month cycles decreases as the odds of 3 yr TBill yield increases.

Yup, I agree. I haven't funded 2025 his/her gifts yet, just 2023 and 2024, but I'm thinking about it and have to make a decision soon.

 

[MandM]

I opened a new Entity account, and it has a separate log in.

The instructions are here:

https://www.treasurydirect.gov/indiv/TDTour/default_entity.htm

Thanks for confirming, I just wanted to make certain. Appreciate the quick response.

 

[Gearhead Jim]

Not in IL , as it's expensive to do it here.
Some States it costs next to zero dollars.
…

.

We have a legal service through our daughter, we just got POAs, wills, etc revised at no charge.
The attorney is checking, he thinks that will cover simple trusts also.

 

[11522914]

Wow, inflation for March was 8.5%. I assume that means I bonds rates are going to hold steady or possibly increase over the current 7.12%?

 

[shotgunner]

I Bond Rate May 2022

If my math is right the I Bond variable rate will increase from the current 7.12% to 9.62% effective 5/1/22.

(287.504 - 274.310) / 274.310 = 4.81% x 2 = 9.62% annualized.

 

[Fermion]

That is not really good news at all

 

[USGrant1962]

I'm pulling the trigger on gift ibonds for 2024 today.

 

[karen1972]

Yes, thats what Tipswatch posted, so math seems good.

It did seem like we may have hit a top in a number of areas with Food/Gas being the two biggest things still pushing the numbers up.

 

[pb4uski]

I've done 2023, 2024 and 2025 anticipating that this rate would be 8% and the Nov 1, 2022 declared rate will be 6% or more.

I'm not sure that the increase from 8% to 9.62% will cause me to do any more.

 

[Exit 2024]

Wow, inflation for March was 8.5%. I assume that means I bonds rates are going to hold steady or possibly increase over the current 7.12%?

By my own calculation next 6 months will pay 9.62%

 

[njhowie]

By my own calculation next 6 months will pay 9.62%

That is correct:
I Bonds’s new variable rate will rise to 9.62% with the May reset

https://tipswatch.com

 

[Gumby]

I've done 2023, 2024 and 2025 anticipating that this rate would be 8% and the Nov 1, 2022 declared rate will be 6% or more.

I'm not sure that the increase from 8% to 9.62% will cause me to do any more.

We are in the exact same boat. Holding money in the gift box until 2026 seems a bridge too far at this point.

 

[jollystomper]

That is not really good news at all

It depends. For those who are FI, inflation has less of an impact on us, and we still have money available to take advantage of these interest rates. So it is "good" news.

For those living paycheck to paycheck, it is not good news.


I have been considering the gift box thing. At these rates I am going to do it this month for our 2023 gifts.

 

[Retiired]

I wonder how much longer they will keep the "fixed rate" at 0%?

 

[Accidental Retiree]

I'm pulling the trigger on gift ibonds for 2024 today.

Next week’s our wedding anniversary. DH and I just agreed on our gifts.

 

[Gumby]

I wonder how much longer they will keep the "fixed rate" at 0%?

I would expect it will require TIPs to sell at a positive yield before they feel the need to do that.

 

[monte1022]

When buying as a gift for spouse, do I register as sole owner or primary owner?

 

[Accidental Retiree]

When buying as a gift for spouse, do I register as sole owner or primary owner?

I clicked the “beneficiary” button. That allowed me to set DH as owner and myself as POD.

 

[USGrant1962]

I clicked the “beneficiary” button. That allowed me to set DH as owner and myself as POD.

That's what I do. I found out by accident that you cannot title it as Giftee WITH Self. It has to be Giftee POD Self. The former is buying a gift for yourself which is not allowed.

 

[Gumby]

"I-bond rate 11/2021" and "I-bond rate May 2022" threads have been merged for continuity of I-bond discussion.

 

[Chuckanut]

It depends. For those who are FI, inflation has less of an impact on us, and we still have money available to take advantage of these interest rates. So it is "good" news.

I would not call it 'good' news. Maybe 'better' news would be more like it.

8% inflation is taking a big chunk out of our retirement investments. Interest rates don't begin to approach the inflation rate even before considering taxes. After taxes, the loss is even worse. I would love to buy a bunch if I-bonds, but the limits are the limits. I did just get a 2% one year t-bill. Lucky me. Back in the days of double digit inflation of the '70s and '80's at least we also had very high interest rates. Today, the war on savers has gone nuclear. 8% inflation and the Fed keeps rates at less than half that. Aren't we lucky?

Yes, the lower income people are going to be hit the hardest. The Law of Unintended Consequences strikes again.

 

[audreyh1]

"I-bond rate 11/2021" and "I-bond rate May 2022" threads have been merged for continuity of I-bond discussion.

So did someone calculate the May 2022 bond rate now that March CPI is out?

 

[RetiredAndLovingIt]

Yes, 9.62%