linksjunkie
linksjunkie
Joined: Feb 28, 2014
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Thanks for this post from:
Joeman
December 7th, 2021 at 9:51:22 AM permalink
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.
Son you ainít paying attention Iím cutting you but you ainít bleeding - Foghorn Leghorn
linksjunkie
linksjunkie
Joined: Feb 28, 2014
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December 7th, 2021 at 9:55:50 AM permalink
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.
Son you ainít paying attention Iím cutting you but you ainít bleeding - Foghorn Leghorn
linksjunkie
linksjunkie
Joined: Feb 28, 2014
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December 7th, 2021 at 9:59:14 AM permalink
I am not an investment advisor. Just take care of me and my wifeís 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.
Son you ainít paying attention Iím cutting you but you ainít bleeding - Foghorn Leghorn
billryan
billryan
Joined: Nov 2, 2009
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December 7th, 2021 at 11:43:50 AM permalink
Quote: linksjunkie

I am not an investment advisor. Just take care of me and my wifeís 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 difference between fiction and reality is that fiction is supposed to make sense.
linksjunkie
linksjunkie
Joined: Feb 28, 2014
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December 7th, 2021 at 12:34:48 PM permalink
Lol. Pretty sure weíll 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 ainít paying attention Iím cutting you but you ainít bleeding - Foghorn Leghorn
Ace2
Ace2
Joined: Oct 2, 2017
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December 7th, 2021 at 12:42:43 PM permalink
Deposit $50,000 into a Citi savings account for 3 months and get 50,000 American miles. Thatís about enough for a one-way overseas ticket in business, worth about $3,500.

Risk free 31% annualized return on $50,000
Itís all about making that GTA
DRich
DRich
Joined: Jul 6, 2012
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December 7th, 2021 at 12:46:51 PM permalink
Quote: Ace2

Deposit $50,000 into a Citi savings account for 3 months and get 50,000 American miles. Thatís 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.
Order from chaos
billryan
billryan
Joined: Nov 2, 2009
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December 7th, 2021 at 12:51:38 PM permalink
I see no reason for an overseas business trip. Locking up 10 grand at 7% piques my interest.
The difference between fiction and reality is that fiction is supposed to make sense.
Ace2
Ace2
Joined: Oct 2, 2017
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December 7th, 2021 at 2:03:14 PM permalink
Iíve already gotten all the credit card miles for now (generally itís 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.
Itís all about making that GTA
linksjunkie
linksjunkie
Joined: Feb 28, 2014
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December 7th, 2021 at 3:42:27 PM permalink
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 Iím basically retired at 55.

This is something I can get her on board with investing in.
Son you ainít paying attention Iím cutting you but you ainít bleeding - Foghorn Leghorn

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