7.12% I Bonds - Free money
December 7th, 2021 at 9:51:22 AM
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Christmas present for my fellow man...
Anybody with excess cash should look into these.
Current I Bond (tied to inflation rate) is paying 7.12% for 6 months then changes to a new rate (Fed sets the new rate in May 2022).
These are 30 years savings bond. You can cash out in 5 years with no penalty. If you cash before 5 years there is a 3 month interest penalty. You must hold for a minimum of 1 year.
$10k limit per year. So if you do one this month you can also do another January 2022.
You can lock in the 7.12% for 6 months as long as you purchase before May 2022.
Anybody with excess cash should look into these.
Current I Bond (tied to inflation rate) is paying 7.12% for 6 months then changes to a new rate (Fed sets the new rate in May 2022).
These are 30 years savings bond. You can cash out in 5 years with no penalty. If you cash before 5 years there is a 3 month interest penalty. You must hold for a minimum of 1 year.
$10k limit per year. So if you do one this month you can also do another January 2022.
You can lock in the 7.12% for 6 months as long as you purchase before May 2022.
Son you ain’t paying attention
I’m cutting you but you ain’t bleeding
- Foghorn Leghorn
December 7th, 2021 at 9:55:50 AM
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A couple more details.
You do this online on the Treasury website. This is all electronic - no physical bonds.
You can also do up to an additional $5k by taking these instead of cash for your Federal tax refund (assuming you have a refund). These are actual physical paper bonds.
You do this online on the Treasury website. This is all electronic - no physical bonds.
You can also do up to an additional $5k by taking these instead of cash for your Federal tax refund (assuming you have a refund). These are actual physical paper bonds.
Son you ain’t paying attention
I’m cutting you but you ain’t bleeding
- Foghorn Leghorn
December 7th, 2021 at 9:59:14 AM
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I am not an investment advisor. Just take care of me and my wife’s money.
With that said...Pretty sure this is a no brainer if you have excess cash you can tie up for at least a year.
Wish I could do more than $10k for myself and my wife.
With that said...Pretty sure this is a no brainer if you have excess cash you can tie up for at least a year.
Wish I could do more than $10k for myself and my wife.
Son you ain’t paying attention
I’m cutting you but you ain’t bleeding
- Foghorn Leghorn
December 7th, 2021 at 11:43:50 AM
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Quote: linksjunkieI am not an investment advisor. Just take care of me and my wife’s money.
With that said...Pretty sure this is a no brainer if you have excess cash you can tie up for at least a year.
Wish I could do more than $10k for myself and my wife.
link to original post
Seems like a pretty good deal. If the rate were to drop to zero, you forfeit three months of zero interest when you cash out.
The older I get, the better I recall things that never happened
December 7th, 2021 at 12:34:48 PM
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Lol. Pretty sure we’ll be north of 0% inflation come May 2022. But yes, these are semiannual. After 6 months the interest rolls into the principle and then the clock starts on the new rate for the next 6 months.
Son you ain’t paying attention
I’m cutting you but you ain’t bleeding
- Foghorn Leghorn
December 7th, 2021 at 12:42:43 PM
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Deposit $50,000 into a Citi savings account for 3 months and get 50,000 American miles. That’s about enough for a one-way overseas ticket in business, worth about $3,500.
Risk free 31% annualized return on $50,000
Risk free 31% annualized return on $50,000
It’s all about making that GTA
December 7th, 2021 at 12:46:51 PM
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Quote: Ace2Deposit $50,000 into a Citi savings account for 3 months and get 50,000 American miles. That’s about enough for a one-way overseas ticket in business, worth about $3,500.
Risk free 31% annualized return on $50,000
link to original post
You can get 50,000 American miles just for signing up for a Citi credit card. I see no reason to lock up $50k.
At my age, a "Life In Prison" sentence is not much of a deterrent.
December 7th, 2021 at 12:51:38 PM
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I see no reason for an overseas business trip. Locking up 10 grand at 7% piques my interest.
The older I get, the better I recall things that never happened
December 7th, 2021 at 2:03:14 PM
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I’ve already gotten all the credit card miles for now (generally it’s one mileage bonus per 24 months). But this limit usually only applies to a specific type of card. Between American, United and Delta, I probably get 150k in bonus miles per year. Worth around $10,000 if used properly. Business class not business trip
This thread piqued my interest until I saw the $10k limit.
This thread piqued my interest until I saw the $10k limit.
It’s all about making that GTA
December 7th, 2021 at 3:42:27 PM
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Yes. Wish it was higher. However, will be able to do $40k for wife and I. $10k each 2021 and 10k each 2022.
My wife is very risk adverse as she recently retired and I’m basically retired at 55.
This is something I can get her on board with investing in.
My wife is very risk adverse as she recently retired and I’m basically retired at 55.
This is something I can get her on board with investing in.
Son you ain’t paying attention
I’m cutting you but you ain’t bleeding
- Foghorn Leghorn
December 7th, 2021 at 4:54:10 PM
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Quote: DRichQuote: Ace2Deposit $50,000 into a Citi savings account for 3 months and get 50,000 American miles. That’s about enough for a one-way overseas ticket in business, worth about $3,500.
Risk free 31% annualized return on $50,000
link to original post
You can get 50,000 American miles just for signing up for a Citi credit card. I see no reason to lock up $50k.
link to original post
100,000 miles are better than 50,000 miles. You realize the two events would be additive, not mutually exclusive?
December 7th, 2021 at 8:48:44 PM
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I'll stay in the mutual funds that average about 25% per your over the last 10 years.
ZCore13
ZCore13
I am an employee of a Casino. Former Table Games Director,, current Pit Supervisor. All the personal opinions I post are my own and do not represent the opinions of the Casino or Tribe that I work for.
December 7th, 2021 at 8:52:40 PM
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25% per year for 10 years would be 831% total gain. Which fund?Quote: Zcore13I'll stay in the mutual funds that average about 25% per your over the last 10 years.
ZCore13
link to original post
It’s all about making that GTA
December 7th, 2021 at 9:37:35 PM
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Quote: Ace225% per year for 10 years would be 831% total gain. Which fund?Quote: Zcore13I'll stay in the mutual funds that average about 25% per your over the last 10 years.
ZCore13
link to original post
link to original post
Here's one. This is my 401K.
ZCore13
I am an employee of a Casino. Former Table Games Director,, current Pit Supervisor. All the personal opinions I post are my own and do not represent the opinions of the Casino or Tribe that I work for.
June 16th, 2022 at 3:46:24 AM
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______________
highlights:
currently paying 9.62% interest
interest rate adjusted every 6 months
it's a 30 year bond
Treasury limits purchases to $10K once each year
a savings bond that earns interest combining fixed rate and inflation rate
The interest that your savings bonds earn is subject to: federal income tax, but not to state or local income tax any federal estate, gift, and excise taxes as well as any state estate or inheritance tax
downside:
cannot cash out for one year
if you cash out before 5 years you lose 3 months interest
limited to $10K per year but if married or trusted partner each can have meaning actually $20K per 2 person household
my personal rating_________excellent deal__________*******________________just bought one 10 minutes ago
Note - Zcore's comparing this to his high performing mutual fund is not particularly useful imo
he's comparing apples and oranges
his fund is highly speculative - this investment is guaranteed
most investors would want to have at least some portion of their holdings at very low or no risk
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm
.
highlights:
currently paying 9.62% interest
interest rate adjusted every 6 months
it's a 30 year bond
Treasury limits purchases to $10K once each year
a savings bond that earns interest combining fixed rate and inflation rate
The interest that your savings bonds earn is subject to: federal income tax, but not to state or local income tax any federal estate, gift, and excise taxes as well as any state estate or inheritance tax
downside:
cannot cash out for one year
if you cash out before 5 years you lose 3 months interest
limited to $10K per year but if married or trusted partner each can have meaning actually $20K per 2 person household
my personal rating_________excellent deal__________*******________________just bought one 10 minutes ago
Note - Zcore's comparing this to his high performing mutual fund is not particularly useful imo
he's comparing apples and oranges
his fund is highly speculative - this investment is guaranteed
most investors would want to have at least some portion of their holdings at very low or no risk
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds.htm
.
Last edited by: lilredrooster on Jun 16, 2022
the foolish sayings of a rich man often pass for words of wisdom by the fools around him
June 16th, 2022 at 5:08:32 AM
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Quote: lilredrooster______________
highlights:
currently paying 9.62% interest
interest rate adjusted every 6 months
it's a 30 year bond
Treasury limits purchases to $10K once each year
a savings bond that earns interest combining fixed rate and inflation rate
I just bought 2 I-bonds on Tuesday. With shaky markets and crazy inflation I am very happy to get 9.62% guaranteed.
At my age, a "Life In Prison" sentence is not much of a deterrent.
June 16th, 2022 at 5:15:17 AM
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You might want to add that currently, the "fixed rate" interest component is 0.00%. All of the return for iBonds purchased today is due to the "inflation rate" component, which changes every 6 months. Although I would consider it extremely unlikely, in theory, these bonds could be paying 0.00% come November.Quote: lilredrooster
downside:
cannot cash out for one year
if you cash out before 5 years you lose 3 months interest
limited to $10K per year but if married or trusted partner each can have meaning actually $20K per 2 person household
Just as a(n extreme) historical example, if you bought an iBond in April 2009, it was initially paying 5.64%. The very next month, it was paying 0.00%. So, it can happen. However, given the current economic environment, I seriously doubt this will happen this November. It's just something to be aware of.
That said, I agree that it is a good idea to buy some iBonds today, if you have not already.
Last edited by: Joeman on Jun 16, 2022
"Dealer has 'rock'... Pay 'paper!'"
June 16th, 2022 at 5:52:08 AM
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_______________
the Feds raised the interest rate 3 basis points or .75% yesterday to try to tame inflation
money's not as cheap now - so retailers won't have to hike prices as much to cover their expenses
it will probably slow but it won't stop inflation - retailers just love to raise prices - it's what they live for
the only thing that ever completely stopped inflation were wage and price controls under Nixon
and he pissed off a whole lot of people with that
kinna funny - to me anyway
most Dollar Stores long ago stopped selling everything for $1.00 and started calling themsleves "Dollar Plus"
but there were a few - one near me - where everything stayed $1.00
but last week they raised everything to $1.25
𝙚𝙫𝙚𝙧𝙮𝙩𝙝𝙞𝙣𝙜 𝙝𝙖𝙙 𝙗𝙚𝙚𝙣 𝙟𝙪𝙨𝙩 𝙤𝙣𝙚 𝙙𝙤𝙡𝙡𝙖𝙧 𝙩𝙝𝙚𝙧𝙚 𝙛𝙤𝙧 𝙨𝙤𝙢𝙚𝙩𝙝𝙞𝙣𝙜 𝙡𝙞𝙠𝙚 𝙛𝙤𝙧𝙩𝙮 𝙮𝙚𝙖𝙧𝙨
for all that time they did tricky stuff - mainly there was less of the product in their packages
.
the Feds raised the interest rate 3 basis points or .75% yesterday to try to tame inflation
money's not as cheap now - so retailers won't have to hike prices as much to cover their expenses
it will probably slow but it won't stop inflation - retailers just love to raise prices - it's what they live for
the only thing that ever completely stopped inflation were wage and price controls under Nixon
and he pissed off a whole lot of people with that
kinna funny - to me anyway
most Dollar Stores long ago stopped selling everything for $1.00 and started calling themsleves "Dollar Plus"
but there were a few - one near me - where everything stayed $1.00
but last week they raised everything to $1.25
𝙚𝙫𝙚𝙧𝙮𝙩𝙝𝙞𝙣𝙜 𝙝𝙖𝙙 𝙗𝙚𝙚𝙣 𝙟𝙪𝙨𝙩 𝙤𝙣𝙚 𝙙𝙤𝙡𝙡𝙖𝙧 𝙩𝙝𝙚𝙧𝙚 𝙛𝙤𝙧 𝙨𝙤𝙢𝙚𝙩𝙝𝙞𝙣𝙜 𝙡𝙞𝙠𝙚 𝙛𝙤𝙧𝙩𝙮 𝙮𝙚𝙖𝙧𝙨
for all that time they did tricky stuff - mainly there was less of the product in their packages
.
the foolish sayings of a rich man often pass for words of wisdom by the fools around him
June 16th, 2022 at 8:25:48 AM
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Glad a couple of you have gotten on board with these. I originally purchased in December for my wife and I. I then purchased again first week of January.
Doing a whole lot better with these than I am with my mutual funds. Fortunately we’re pretty diversified. Only down about 10-12% YTD on those.
Good luck to all.
Doing a whole lot better with these than I am with my mutual funds. Fortunately we’re pretty diversified. Only down about 10-12% YTD on those.
Good luck to all.
Son you ain’t paying attention
I’m cutting you but you ain’t bleeding
- Foghorn Leghorn
June 16th, 2022 at 10:29:11 AM
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?????Quote: lilredrooster
the Feds raised the interest rate 3 basis points or .75%
It’s all about making that GTA
June 16th, 2022 at 11:06:58 AM
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The 10 Year U.S. Treasury just broke 3.2% this week, and it seems it was last at that level in Oct-Nov. 2018 at the peaks. Highest ever (since 1980) was 15.8% in July 1981.
CNBC: U.S. Treasury yields pulled back Wednesday after the Federal Reserve delivered on an expected rate hike at the conclusion of their two-day policy meeting.
The yield on the benchmark 10-year Treasury note dropped by 18 basis points to 3.301% — a day after touching an 11-year high above 3.49%. The 2-year rate — which is more sensitive to changes in Fed policy — dropped more than 22 basis points to 3.216%.
The Federal Open Market Committee raised interest rates by 75 basis points, or its largest hike since 1994, in an aggressive bid to rein in inflation. The U.S. consumer price index rose by an annual 8.6% in May, its highest year-on-year increase since 1981.
****************
Bill Gates says crypto and NFTs are ’100% based on greater fool theory’
****************
The Dow Jones is suffering another 800 point down day and just fell through 30,000.
CNBC: U.S. Treasury yields pulled back Wednesday after the Federal Reserve delivered on an expected rate hike at the conclusion of their two-day policy meeting.
The yield on the benchmark 10-year Treasury note dropped by 18 basis points to 3.301% — a day after touching an 11-year high above 3.49%. The 2-year rate — which is more sensitive to changes in Fed policy — dropped more than 22 basis points to 3.216%.
The Federal Open Market Committee raised interest rates by 75 basis points, or its largest hike since 1994, in an aggressive bid to rein in inflation. The U.S. consumer price index rose by an annual 8.6% in May, its highest year-on-year increase since 1981.
****************
Bill Gates says crypto and NFTs are ’100% based on greater fool theory’
****************
The Dow Jones is suffering another 800 point down day and just fell through 30,000.
Last edited by: ChumpChange on Jun 16, 2022
June 16th, 2022 at 12:57:36 PM
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Quote: Ace2?????Quote: lilredrooster
the Feds raised the interest rate 3 basis points or .75%
link to original post
that was a mistake - it was 75 basis points - but the .75% was correct - my bad
.
Last edited by: lilredrooster on Jun 16, 2022
the foolish sayings of a rich man often pass for words of wisdom by the fools around him
June 16th, 2022 at 1:17:48 PM
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Quote: ChumpChange
The Dow Jones is suffering another 800 point down day and just fell through 30,000.
you post about a big down day which will obviously happen fairly often in a bear market
are you going to post the stats on a big up day_____________?????
very, very doubtful
you're cheering the negativity - to try and prove that you're right - if you want to brag about being right - in an earlier post you said that society will collapse - you need to give things time to play out
when I'm homeless I'm going to post about how right you were - I'll use the computers at the libraries if they haven't also closed
then you will have shown everybody the true value of your great predictive abilities
.
the foolish sayings of a rich man often pass for words of wisdom by the fools around him
June 16th, 2022 at 1:30:20 PM
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I watch at least 10 new YouTube videos a day with boundless doom & gloom by super excited researchers.
If they lose over a million dollars each, it probably won't affect them.
If they lose over a million dollars each, it probably won't affect them.
