Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 13, 2023 22:15:56 GMT -5
Well, the 3.38% variable rate is OK. It means I will be keeping my 0% fixed rate I-Bonds until the next variable rate change in Nov 2023. I don't feel like chasing interest rates with my I-bond money and 3.38% isn't outrageously low. Holding steady fits my "I Bond" plan. ok - so spill! What is your "i bond plan"? I'm just buying, I guess I just don't know what I'm doing
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Tiny
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Post by Tiny on Apr 13, 2023 23:32:01 GMT -5
My "I-Bond Plan" is to hold them for 5 years or less and to buy 30K total. I moved EF money to them when the variable rate started climbing. I-Bonds are a "short term" investment for me. They are "EF money" and/or money to use between 60 and 65 should I "retire early". Back in 2006/7 - when I was finally maxing my 401K and Roth - I set up a $50 a month purchase of I-Bonds because I was going to slowly bump up the monthly purchase until I was buying approx 5K per year - with the goal that within 15 years I'd have 50K or more in I-bonds... and I'd be 60yo or so. 50K was my estimated 1 year of expenses in retirement. The Great Recession happened and I stopped the automatic I-Bond purchase (I kinda wish I hadn't done that.) I still see some value in having I-bonds short term. I'm 59yo now. I can see using the money in the next 5 years. So that's my I-Bond plan. I wish I had stuck to the "plan" back in 2007. Little "dribs and drams" make a difference long term.
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nidena
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Post by nidena on Apr 14, 2023 7:35:24 GMT -5
I set up the purchase of $25 worth every paycheck from the part-time job. That paycheck goes into an account that is at a different bank than my primary bank. There may be a lull in purchases as I switch jobs but it does seem like an easy thing to keep up: $25 worth every two weeks. It's only $325/yr but if I do it as long as possible, I may get to a couple thousand.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 14, 2023 11:41:54 GMT -5
Little "dribs and drams" make a difference long term. It really does add up over a decade (or two! or three!).........especially when you are young/relatively young and living an exciting life. Now I feel like a boring old broad, sometimes it seems my greatest entertainment is looking at my money pile up, like scrooge mcduck. And perversely, it's taking longer to pile up!
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 14, 2023 11:50:42 GMT -5
ok - I got the Rukh, Inc payload for 2022.
Should I fill out the 2023 ibonds now? or wait until May?
split the difference?
Feel so indecisive!
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Post by minnesotapaintlady on Apr 14, 2023 12:07:03 GMT -5
Well, I have no money to invest, so no horse in the race. LOL. If I was looking at a short-term investment I would put it in now, if it's something you'd hang onto for the long haul then maybe worth gambling on the fixed. This is the break even points based on whatever the fixed comes out at.
0.5% / 14.9 yrs 0.6% / 7.5 yrs 0.7% / 5.1 yrs 0.8% / 3.8 yrs 0.9% / 3.1 yrs 1.0% / 2.6 yrs
Most predictions I see are in the .6-.8 range, but I have yet to find anyone that knows how it is actually calculated so I take fixed rate guesses as just that. Nobody thought they would add a .4% fixed to an already high variable and yet they did.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 14, 2023 13:12:18 GMT -5
Well, I have no money to invest, so no horse in the race. LOL. If I was looking at a short-term investment I would put it in now, if it's something you'd hang onto for the long haul then maybe worth gambling on the fixed. This is the break even points based on whatever the fixed comes out at.
0.5% / 14.9 yrs 0.6% / 7.5 yrs 0.7% / 5.1 yrs 0.8% / 3.8 yrs 0.9% / 3.1 yrs 1.0% / 2.6 yrs
Most predictions I see are in the .6-.8 range, but I have yet to find anyone that knows how it is actually calculated so I take fixed rate guesses as just that. Nobody thought they would add a .4% fixed to an already high variable and yet they did.
Thanks MPL! appreciate you looking into this despite not determining a plan for yourself. Seems it is still a crap shoot on what will be best.....especially since I have no idea when I'm going to withdraw the money! I put in an order for 2500 for next week, and then I'll do the other 5k in May to split the difference. I think that will put my mind at ease.....
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Post by minnesotapaintlady on Apr 14, 2023 13:26:18 GMT -5
I got two $500 bonds with part of my tax refund, but that may be it for me for the year. I think if I make it through the year without cashing any in it will be a win.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 14, 2023 19:33:56 GMT -5
I got two $500 bonds with part of my tax refund, but that may be it for me for the year. I think if I make it through the year without cashing any in it will be a win.
cashing in? would you do that before lowering 401k contributions? That cruise must have really put you over!
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Post by minnesotapaintlady on Apr 14, 2023 23:21:41 GMT -5
I got two $500 bonds with part of my tax refund, but that may be it for me for the year. I think if I make it through the year without cashing any in it will be a win.
cashing in? would you do that before lowering 401k contributions? That cruise must have really put you over! Oh, I would LOVE to just cut my 401K contributions, but with the tax credits my marginal rate is so high it makes no sense to keep the bonds and cut the 401K. I can't get past the math of how much money I'd be throwing away. Having said that, I did cut it by 12% earlier this week because even at that percentage I will still have it maxed out by year end even if we don't get any more bonuses and don't work any more OT. It's not going to be a huge difference in take-home, maybe a few hundred a check, but it's something.
It's not the cruise really. I owe $4600 there and it's no interest until next July, so $312/month.
I'm just saving too much in general. They keep raising the damn limits on me! Plus last year I decided saving for college for 2 kids wasn't enough, so I started 529's for my oldest son's other siblings as well.
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susana1954
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Post by susana1954 on Apr 15, 2023 10:43:01 GMT -5
cashing in? would you do that before lowering 401k contributions? That cruise must have really put you over! Oh, I would LOVE to just cut my 401K contributions, but with the tax credits my marginal rate is so high it makes no sense to keep the bonds and cut the 401K. I can't get past the math of how much money I'd be throwing away. Having said that, I did cut it by 12% earlier this week because even at that percentage I will still have it maxed out by year end even if we don't get any more bonuses and don't work any more OT. It's not going to be a huge difference in take-home, maybe a few hundred a check, but it's something.
It's not the cruise really. I owe $4600 there and it's no interest until next July, so $312/month.
I'm just saving too much in general. They keep raising the damn limits on me! Plus last year I decided saving for college for 2 kids wasn't enough, so I started 529's for my oldest son's other siblings as well.
You mean your ex's kids?
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Post by minnesotapaintlady on Apr 15, 2023 14:06:47 GMT -5
Oh, I would LOVE to just cut my 401K contributions, but with the tax credits my marginal rate is so high it makes no sense to keep the bonds and cut the 401K. I can't get past the math of how much money I'd be throwing away. Having said that, I did cut it by 12% earlier this week because even at that percentage I will still have it maxed out by year end even if we don't get any more bonuses and don't work any more OT. It's not going to be a huge difference in take-home, maybe a few hundred a check, but it's something.
It's not the cruise really. I owe $4600 there and it's no interest until next July, so $312/month.
I'm just saving too much in general. They keep raising the damn limits on me! Plus last year I decided saving for college for 2 kids wasn't enough, so I started 529's for my oldest son's other siblings as well.
You mean your ex's kids? Yes. I'm their Auntie MPL and they are sooo smart and driven. They won't get any financial aid and my ex is not a saver. It's not something I've revealed to anyone so they won't be expecting it and it's not a lot anyhow. $25/month each.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 15, 2023 15:09:32 GMT -5
Yes. I'm their Auntie MPL and they are sooo smart and driven. They won't get any financial aid and my ex is not a saver. It's not something I've revealed to anyone so they won't be expecting it and it's not a lot anyhow. $25/month each.
so sweet! awesome auntie MPL!
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seriousthistime
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Post by seriousthistime on Apr 19, 2023 8:14:21 GMT -5
I filed my tax return about 3 weeks ago, and this morning my refund was deposited to my checking account.
The refund is to be issued in the form of cash and I bonds. Since we're so close to the adjustment date of May 1, I wondered if the bonds would be issued at the 6.89% rate with the 0.4% fixed component or if the bonds would be issued after May 1.
I found this on the Treasury Direct website:
What will the issue date of my bonds be?
The issue date for paper bonds will be the first day of the month in which IRS submits payment for the bonds to Treasury Retail Securities Services in Minneapolis. For example, if Minneapolis receives your order from IRS on February 18, the issue date of your savings bonds will be February 1.
So unless it takes FOREVER for the IRS to submit payment for the bonds, it looks like they will be issued as of April 1. But it is the government, after all, so it may actually TAKE forever.
We'll see.
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Post by minnesotapaintlady on Apr 19, 2023 8:21:09 GMT -5
I filed my tax return about 3 weeks ago, and this morning my refund was deposited to my checking account. The refund is to be issued in the form of cash and I bonds. Since we're so close to the adjustment date of May 1, I wondered if the bonds would be issued at the 6.89% rate with the 0.4% fixed component or if the bonds would be issued after May 1. I found this on the Treasury Direct website: What will the issue date of my bonds be?
The issue date for paper bonds will be the first day of the month in which IRS submits payment for the bonds to Treasury Retail Securities Services in Minneapolis. For example, if Minneapolis receives your order from IRS on February 18, the issue date of your savings bonds will be February 1.So unless it takes FOREVER for the IRS to submit payment for the bonds, it looks like they will be issued as of April 1. But it is the government, after all, so it may actually TAKE forever. We'll see. My I bonds through tax return were in my mailbox in about 3 weeks, but it only took a week for my refund as well.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 19, 2023 9:59:01 GMT -5
guess I'm in limbo again on taxes, lol!!
Will give the tax place time to recover, and ask for a timeline on getting filed Monday.
stinky diapers
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 24, 2023 11:34:14 GMT -5
In case any are trying to get their ibonds before the change:
from treasury direct site.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 26, 2023 9:42:55 GMT -5
Well, I have no money to invest, so no horse in the race. LOL. If I was looking at a short-term investment I would put it in now, if it's something you'd hang onto for the long haul then maybe worth gambling on the fixed. This is the break even points based on whatever the fixed comes out at.
0.5% / 14.9 yrs 0.6% / 7.5 yrs 0.7% / 5.1 yrs 0.8% / 3.8 yrs 0.9% / 3.1 yrs 1.0% / 2.6 yrs
Most predictions I see are in the .6-.8 range, but I have yet to find anyone that knows how it is actually calculated so I take fixed rate guesses as just that. Nobody thought they would add a .4% fixed to an already high variable and yet they did.
i'm still torn on this, lol! I said I would do 5k now and 5k after may 1st......but.....maybe I should do the rest now?
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seriousthistime
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Post by seriousthistime on Apr 26, 2023 9:47:03 GMT -5
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azucena
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Post by azucena on Apr 26, 2023 9:49:03 GMT -5
FWIW, I figure the main win is saving in the first place and not spending 'extra' money. I try not to obsess over the best returns or I'd drive myself crazy.
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Post by minnesotapaintlady on Apr 26, 2023 10:49:51 GMT -5
If I had money to invest, I would be inclined to throw it in now myself, but that's mainly because I know it's unlikely to be long-term savings for me. My I bonds (over the 1 year mark) make up most of my "cash" savings.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 26, 2023 13:31:20 GMT -5
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Artemis Windsong
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The love in me salutes the love in you. M. Williamson
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Post by Artemis Windsong on Apr 26, 2023 15:48:36 GMT -5
Rukh O'Rorke - it's not silly to be wracked with uncertainty. I know the I-bonds and CDs are holding areas to let cash grow. I got this feeling buying a new CD from Brio Bank Direct at 5.25%. I chose that instead of possible carpet for the house. I can live with the old carpet but can't replace the cash spent.
My friend is sold on the T-bill auctions of various months offered. She said no federal tax.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 27, 2023 11:36:08 GMT -5
put in the PO for may 1st.
common! big money!!
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Post by minnesotapaintlady on Apr 27, 2023 12:17:45 GMT -5
put in the PO for may 1st. common! big money!! You may as well wait until the end of May. You get the full month's interest even if you buy on the last day, so let it earn money sitting in a high yield savings account or something until then.
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azucena
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Post by azucena on Apr 27, 2023 13:24:08 GMT -5
put in the PO for may 1st. common! big money!! You may as well wait until the end of May. You get the full month's interest even if you buy on the last day, so let it earn money sitting in a high yield savings account or something until then. MPL - don't make Rukh overthink it some more LOL! Rukh - you done good on saving...move on
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 27, 2023 13:27:08 GMT -5
put in the PO for may 1st. common! big money!! You may as well wait until the end of May. You get the full month's interest even if you buy on the last day, so let it earn money sitting in a high yield savings account or something until then. Missing out on aprils interest was hard to wait on ibonding it, but it's in checking doing nothing, and need to get it locked down before something else takes it!! I dont have a HY account, just money market at vanguard and fidelity, but transfers take time, and make my internally accounting more difficult, so while your councel is wise, we have to face facts on who I am as a person. But I am unhappy with chase, so maybe I should make fidelity my default account? for direct deposit and bill pays ans such? Not sure!
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 27, 2023 13:27:34 GMT -5
You may as well wait until the end of May. You get the full month's interest even if you buy on the last day, so let it earn money sitting in a high yield savings account or something until then. MPL - don't make Rukh overthink it some more LOL! Rukh - you done good on saving...move on
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Post by minnesotapaintlady on Apr 27, 2023 14:16:13 GMT -5
You may as well wait until the end of May. You get the full month's interest even if you buy on the last day, so let it earn money sitting in a high yield savings account or something until then. MPL - don't make Rukh overthink it some more LOL! Rukh - you done good on saving...move on Hey, if the goal is maximizing return.
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seriousthistime
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Post by seriousthistime on Apr 27, 2023 14:35:38 GMT -5
I mentioned before that I measure my I bond earned interest in terms of airline tickets.
I now have more than 5 airline tickets' worth of I bond interest. None of them are more than 5 years old, but I have no current intention of cashing them in.
I feel like Scrooge McDuck sometimes.
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