wallygator69
Recycles dryer sheets
- Joined
- Jan 27, 2006
- Messages
- 373
The clock starts on the [-]day [/-] month of purchase.
Sorry this is important.....so I could could sell it June of 2023.
Thx again,
Wally
The clock starts on the [-]day [/-] month of purchase.
I don't think you can gift as a couple. I-bonds are purchased by individual entities. But you could buy $5,000 and your wife could buy $5,000 for each of your kids and then gift them, so your end result is still $10,000 to each kid.
Sorry this is important.....so I could could sell it June of 2023.
Thx again,
Wally
This is incorrect. The gift can come from a joint account for the couple. The daughter’s name will be on the iBond registration. A single $10,000 iBond is fine. The key is to not give the daughter more than $10,000 in iBonds in a single calendar year. Each parent can gift up to $16,000/year to the daughter for up to $32,000 total without filing a gift tax return. It can be done jointly.
According to this site: https://tipswatch.com/2021/05/09/ready-to-open-a-treasurydirect-account-here-are-some-tips/
"A married couple must open two separate TreasuryDirect accounts if both spouses wish to purchase I Bonds. Each account is limited to purchasing $10,000 per person per calendar year, so if you want to purchase $20,000 in a year, you need two accounts."
You’re missing the point. That site is referring to each spouse purchasing an iBond for themselves. If they’re purchasing a gift iBond for their daughter only one of them needs a TD account to buy the $10,000 gift iBond. The money can come out of a joint account to purchase the gift iBond. Yes, it can be purchased and stored in the Gift inbox of one of the individual parent’s TD accounts, but the funds to buy that iBond still comes from a joint account making it from both of them with no reason to buy two separate $5,000 iBonds.
I’m not sure how the daughter will cash the gifted I bond without a treasury direct account. It will sit in your gift box (? - not sure of right term) until it moves to the daughter’s account. I don’t understand how the daughter could cash it while it resides in the parent’s account. Same with gifting an I bond to a spouse. They need to have a separate account. And the year it’s transferred to that other account, it will prevent the purchase of other I bonds by that person (assuming it’s $10K). Am I misunderstanding previous posts here?
I’m not sure how the daughter will cash the gifted I bond without a treasury direct account. It will sit in your gift box (? - not sure of right term) until it moves to the daughter’s account. I don’t understand how the daughter could cash it while it resides in the parent’s account. Same with gifting an I bond to a spouse. They need to have a separate account. And the year it’s transferred to that other account, it will prevent the purchase of other I bonds by that person (assuming it’s $10K). Am I misunderstanding previous posts here?
You’re missing the point. That site is referring to each spouse purchasing an iBond for themselves. If they’re purchasing a gift iBond for their daughter only one of them needs a TD account to buy the $10,000 gift iBond. The money can come out of a joint account to purchase the gift iBond. Yes, it can be purchased and stored in the Gift inbox of one of the individual parent’s TD accounts, but the funds to buy that iBond still comes from a joint account making it from both of them with no reason to buy two separate $5,000 iBonds.
One of the best current deals in the bond market—Treasury Series I savings bonds—is likely to get less attractive in November when a new rate on the popular investments is set. Individual investors may want to snap up the inflation-linked I bonds before the end of October to get the current 9.6% interest rate for the first six months. The new rate, applying to bonds purchased in November, is likely to be closer to 6%, Barron’s estimates, based on the formula used by the U.S. Treasury to calculate the semiannual rate.
I disagree.
The November 2022 I-bond rate is calculated as follows:
((CPI Sep 22/CPI Mar 22) - 1)x 200) = new APR
CPI March 2022 was 287.504. CPI August 2022 was 296.171. If CPI stayed exactly the same in September 22 as it was in August 22, the new rate would be ((296.171/287.504)-1) x 200) = 6.03% APR.
Now, let's look at what CPI could reasonably be expected to be in September 2022. The September 2021 CPI was 274.310. If reported annual inflation is 8.0% for September, then CPI Sep 2022 would be 296.245 (274.310 x 1.08 = 296.255), which would make the new rate ((296.255/287.504)-1)x200) = 6.09 % APR.
In fact, for the November I-bond rate to be 8.4%, then the September 2022 annual inflation rate would need to be 9.2%. You can determine this by reversing the above equations:
((8.4/200)+1)x 287.504) = 299.579 >>> this would be the required Sept CPI to make the November I bond rate 8.4%.
299.579/274.310 = 1.092, so year over year inflation would have to run at 9.2% in September. And month over month inflation would then be 1.2% from August to September. (299.579/296.171 = 1.012). I find that unlikely. In fact, the highest month to month inflation over the past year has been only 1.3% May to June.
These guys forecast September CPI to be 297.1, which would make the annual inflation rate in September 8.3% and would make the November I bond rate 6.68% APR. They have proven to be close to the mark in the past (maybe a little high).
https://tradingeconomics.com/united-states/consumer-price-index-cpi
I would love the I-bond rate to be 1.6%, because that means inflation is done ravaging my savings and investments.
IMHO, I-bonds are nothing more than a strategic retreat in the face of an enemy that is mercilessly advancing through my territory, destroying buildings, crops, livestock etc. The goal is survive so as to fight back when the enemy falters for whatever reason.
You misunderstood what she said. Her prediction for the November I-Bond rate was 5.9%-7.6%. She correctly stated that the November-April rate would be 6% if the index remained the same in October. The 7.8%-8.6% range was the blended annual rate if you bought I-Bonds today combining the current 6-month rate with the projected next 6-month rate.The video discusses the math and the range for the Nov. iBonds and concludes it is around the 7.8% - 8.6% range, with 8.4% as the most probably number. She drops the 8.4% number around 6:49 minutes of the video.
Rob Berger predicts 6.03%
....
I just finished funding my child's I-Bonds for the year to grab the current 9+% six-month rate.
These deals are costing me money.
I’ve seen this mentioned before. Do you get the rate you buy at for 6 months?
Sorry for the dumb ?. I’ve just started paying attention to the I bonds.
Thanks
Murf