The I Bond Thread

[ronin]

Got locked out of my account over a security question that I had no answer for. I have answers for the other ones but I remember not wanting to use it because there was no obvious answer I would remember (and I did write down my answers and stored them securely, not on the list).

Called early this morning, wait time est. at 45 min. After 1 hour, est. wait was now 1 hr. 15 min. Then 10 min. later the call disconnected. Not a happy camper.

 

[Sunset]

Got locked out of my account over a security question that I had no answer for. I have answers for the other ones but I remember not wanting to use it because there was no obvious answer I would remember (and I did write down my answers and stored them securely, not on the list).

Called early this morning, wait time est. at 45 min. After 1 hour, est. wait was now 1 hr. 15 min. Then 10 min. later the call disconnected. Not a happy camper.

I just make up nonsense answers for the questions and write them down, different for each site,
Example: My first Car: SuperFast84

Nobody will figure that our by researching me on the internet

 

[Gumby]

I just make up nonsense answers for the questions and write them down, different for each site,
Example: My first Car: SuperFast84

Nobody will figure that our by researching me on the internet

If you can do that, couldn't you also just write down the password?

 

[kgtest]

Got locked out of my account over a security question that I had no answer for. I have answers for the other ones but I remember not wanting to use it because there was no obvious answer I would remember (and I did write down my answers and stored them securely, not on the list).

Called early this morning, wait time est. at 45 min. After 1 hour, est. wait was now 1 hr. 15 min. Then 10 min. later the call disconnected. Not a happy camper.

was it VG? Lately they have had 45+ minute wait times the past 3x I've called. Makes me wonder what everyone is calling about... unknown security question answers, perhaps. Or maybe asking what they should do with there dough? I keep getting a sales guy whereas in the past I was getting account representatives... must be competitive sales market this year. I spent about 20 minutes talking to a sales guy about my DIY approach the founder of his company recommended, "stay the course". He didn't seem amused and eventually transferred me to the account rep who kindly showed me to my shock that the "CONVERT TO ROTH" button was literally right in front of my face. Could have DIY that as well...wish I would have seen it.

 

[11522914]

We have to remember that the Treasury Direct web interface and back end are ancient. People expect that an overpurchase would be rebuffed if it were not allowed.

Not so. Just because "Dunmovin" gave it a "test" that "seemed" to work doesn't mean squat.

As pb4uski mentions, we've seen many people share here and elsewhere iBond purchases that were reversed ... eventually. This probably is caught when they run that once a quarter COBOL job (I am not joking).

For me: I find Treasury Direct so fragile and ancient that I don't want to start removing bricks from the foundation to see if it crumbles on me. It is not worth the trouble of dealing with this understaffed and now over-subscribed agency. Years of useless interest rates allowed them to skate along. Now that we have real rates again, people are back and are stressing the system. I'd rather not fall into a stress crack.

+100

I just delivered our 2023 Ibonds yesterday. I found it odd that I could deliver our 2024 Ibonds too. I even went as far as entering all the information just to see if I could proceed. I had not read this information here at the time. I just stopped before submitting.

 

[Sunset]

If you can do that, couldn't you also just write down the password?

I do, but of course some sites ask for the answer to a question, even if you put in the password.

I save all this information in my password manager, I have about 100 different answers to my first car... none of them true.

 

[John Galt III]

Scored $10,000 for my 2023 I bond at 6.8 %. Good, now I can forget about it for 6 months, then check what rate it has changed to.

 

[ronin]

was it VG?

Should have mentioned it was Treasury Direct. My wife and I delivered gifts to each other and I wanted to re-register it as "with" rather than POD. Had no problem with her account.

 

[Slim11]

I did the same. Today the wait was an hour, after an hour it went to an hour 30 mins. What a mess.

 

[Chuckanut]

I did the same. Today the wait was an hour, after an hour it went to an hour 30 mins. What a mess.

Avoiding the beginning of the year rush to buy another $10,000 worth of Ibonds is another reason to wait until we see what happens in April. I am hoping the base rate is raised again, perhaps to 0.7%. I have no reason to think this will happen other than most of us did not foresee the current 0.4% base rate. In the meantime, getting 4%+ in a MM fund is not a bad place to be.

 

[Slim11]

I wasn't trying to beet the rush, but just invest when I had money free. That happened to coincide with the rush.lol Yea, waiting a few isnt a bad idea. I figure this time I will screen shot everything, I dont want to have to wait hours to get access to money if I need it. Almost seems crazy if you think about it.

 

[Slim11]

Ok, since I didnt get acess to the account, I just got a stock. Lol. It shouldn't be this hard to manage or invest. I get these things took off the last year. But, if its a hassle and takes days to straighten out access is it worth it? For me , it wasn't, just easier to get some other kind of investment.

 

[Gumby]

Based on today's CPI release, if inflation for the next three months continues at the same rate as it has for the last three months, then the May 1, 2023 rate reset will be 0% for the inflation adjusted component. Who knows if there will be a fixed component?

CPI Dec 22 = 296.797
CPI Sept 22 = 297.808

Ratio = 296.797/296.808 = .99996

Square that to take us to March = .99992

Which means zero inflation adjustment.

Inflation is reported at 6.5% year-over-year, but for the last 6 months has been at an annual rate of 0.3%

 

[Montecfo]

Based on today's CPI release, if inflation for the next three months continues at the same rate as it has for the last three months, then the May 1, 2023 rate reset will be 0% for the inflation adjusted component. Who knows if there will be a fixed component?

CPI Dec 22 = 296.797
CPI Sept 22 = 297.808

Ratio = 296.797/296.808 = .99996

Square that to take us to March = .99992

Which means zero inflation adjustment.

Inflation is reported at 6.5% year-over-year, but for the last 6 months has been at an annual rate of 0.3%

Rush into I-bonds now to turn into a rush out of them?

 

[aja8888]

Rush into I-bonds now to turn into a rush out of them?

It kind of looks that way. I'm not buying any Ibonds for this year. Heck, yesterday, I picked up a 6 month T bill yielding 4.87% for my Roth. I'm starting to think about locking in some longer duration stuff soon.

 

[Montecfo]

It kind of looks that way. I'm not buying any Ibonds for this year. Heck, yesterday, I picked up a 6 month T bill yielding 4.87% for my Roth. I'm starting to think about locking in some longer duration stuff soon.

No time like the present. Actually the best time was in Oct/Nov but now is second best time.

 

[pb4uski]

Rush into I-bonds now to turn into a rush out of them?

It kind of looks that way. I'm not buying any Ibonds for this year. Heck, yesterday, I picked up a 6 month T bill yielding 4.87% for my Roth. I'm starting to think about locking in some longer duration stuff soon.

Yup, looks like the party is over. If I bought some with my tax refund in February, held a year and then redeemed, I'd yield ~3.65% and the 1-year UST is much more than that.

So after the current 6.48% runs off you'll hear a giant sucking sound from the US Treasury.

 

[aja8888]

Yup, looks like the party is over. If I bought some with my tax refund in February, held a year and then redeemed, I'd yield ~3.65% and the 1-year UST is much more than that.

So after the current 6.48% runs off you'll hear a giant sucking sound from the US Treasury.

Ally Bank will be hearing a sucking sound after the 15th when the lock on the $500 bonus is off.

 

[jollystomper]

Yup, looks like the party is over. If I bought some with my tax refund in February, held a year and then redeemed, I'd yield ~3.65% and the 1-year UST is much more than that.

So after the current 6.48% runs off you'll hear a giant sucking sound from the US Treasury.

+1

Funny, I had also just calculated "what if I bought some I Bonds before May and held them for a year" and came up with that number. It does not seem worth paying an additional $5K estimated tax payment for 2022 to be able to redeem the refund as I Bonds after I file .

 

[pb4uski]

+1

Funny, I had also just calculated "what if I bought some I Bonds before May and held them for a year" and came up with that number. It does not seem worth paying an additional $5K estimated tax payment for 2022 to be able to redeem the refund as I Bonds after I file .

Not when I can put the same $5k in a 1 year Treasury and earn 100bps more with more liquidity and less hassle.

 

[JoeWras]

Not when I can put the same $5k in a 1 year Treasury and earn 100bps more with more liquidity and less hassle.

I don't look at iBonds like that. For me, they are long term. I've been buying them since the mid aughts and all are currently enjoying interest rates from 6.48% to 10.88%.

The inflation adjusted component will do what it does over the years. Missing a year of buying them misses a year of having one during high inflation times.

For my fixed portfolio, 10k is not that much in the scheme of things.

And... we really don't know what inflation will do these next months if China starts sucking down fuel again.

 

[jldavid47]

Avoiding the beginning of the year rush to buy another $10,000 worth of Ibonds is another reason to wait until we see what happens in April

Well, one reason for getting in in January is that the sooner you get in the sooner you can get out, if needed.

 

[pb4uski]

I don't look at iBonds like that. For me, they are long term. ....

You are correct, we look at them differently. I'm looking at them as simply a substitute for 1-5 year US Treasuries and will invest in them when they are attractive compared to 1-5 year UST. You are looking at them as a long term investment.

And we can buy $50k a year if we want to, not including gifts.

 

[pb4uski]

Yup, looks like the party is over. If I bought some with my tax refund in February, held a year and then redeemed, I'd yield ~3.65% and the 1-year UST is much more than that.

So after the current 6.48% runs off you'll hear a giant sucking sound from the US Treasury.

+1

Funny, I had also just calculated "what if I bought some I Bonds before May and held them for a year" and came up with that number. It does not seem worth paying an additional $5K estimated tax payment for 2022 to be able to redeem the refund as I Bonds after I file .

I just adjusted my inclusion of ibonds in my fixed income ladder assuming that they are redeemed 3 months after the 6.48% crediting rate ends... it puts a lot of redemptions in 2023 and 2024 with the last being 1/1/2025.

 

[REWahoo]

I just adjusted my inclusion of ibonds in my fixed income ladder assuming that they are redeemed 3 months after the 6.48% crediting rate ends... it puts a lot of redemptions in 2023 and 2024 with the last being 1/1/2025.

What about the tax hit of all those redemptions in the same year? Is that a concern?