Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 27, 2023 15:26:56 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. I am soooooooooooooooooo feeling like scrooge mcduck the last year or so! Like the thought of begining to live off the money seems like a terrible idea Losing sight of the purpose, lol.
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minnesotapaintlady
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Post by minnesotapaintlady on Apr 28, 2023 10:13:31 GMT -5
The new rate has been posted. 4.30% This includes a fixed rate of 0.90% For I bonds issued May 1, 2023 to October 31, 2023.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 28, 2023 10:30:04 GMT -5
The new rate has been posted. 4.30% This includes a fixed rate of 0.90% For I bonds issued May 1, 2023 to October 31, 2023. so - not too shabby! the motely fool article wasn't too far off with 1% for the fixed. They did say "at least" so they do get some shade there...... Well - it is finally over! all the speculation. lol, such an event. What all will we do for excitement now? oh yeah, NW posting next week - or later today I guess! But would need to wait for Monday for the treasury direct account to update with interest and new money, so I think I will wait.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 28, 2023 10:32:57 GMT -5
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minnesotapaintlady
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Post by minnesotapaintlady on Apr 28, 2023 11:16:36 GMT -5
Nothing much has changed with me or how I look at savings in the past 25 years or so. I do wish I had more options in my 401K though because I don't really want to go 100% stocks anymore and I'm not thrilled with the bond option available there. I wish I could do CD's or I bonds or something else inside my 401K. Oh well.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 28, 2023 12:23:53 GMT -5
Nothing much has changed with me or how I look at savings in the past 25 years or so. I do wish I had more options in my 401K though because I don't really want to go 100% stocks anymore and I'm not thrilled with the bond option available there. I wish I could do CD's or I bonds or something else inside my 401K. Oh well.
same! I'd like just a money market that did not lose value with nominal interest, but there is nothing! Seems criminal to me! Adding - there are a few ones I haven't explored because if you put the money in less than 2 or 5 years before withdrawal, there is a penalty! WTF? when exactly do you need the cash equivalents? Duh - leading up to your planned withdrawals!
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seriousthistime
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Post by seriousthistime on Apr 30, 2023 6:23:24 GMT -5
The new rate has been posted. 4.30% This includes a fixed rate of 0.90% For I bonds issued May 1, 2023 to October 31, 2023. So that's a semi-annual rate of 3.40% plus a fixed rate of 0.90%? Well, I got my I bond (for tax refund) in the mail yesterday. Figures. I'll be stuck with a fixed rate of 0.40% on that one. But at least interest accrued starting April 1. Interestingly, I received a single bond for $5,000. In years past the bonds were in various denominations adding up to $5,000.
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minnesotapaintlady
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Post by minnesotapaintlady on Apr 30, 2023 9:43:57 GMT -5
The new rate has been posted. 4.30% This includes a fixed rate of 0.90% For I bonds issued May 1, 2023 to October 31, 2023. So that's a semi-annual rate of 3.40% plus a fixed rate of 0.90%? Well, I got my I bond (for tax refund) in the mail yesterday. Figures. I'll be stuck with a fixed rate of 0.40% on that one. But at least interest accrued starting April 1. Interestingly, I received a single bond for $5,000. In years past the bonds were in various denominations adding up to $5,000. Meh. The difference in fixed rate is only going to amount to $25/year on that 5K bond and you are starting out the first 6 months at a much higher variable rate so you won't even notice that fixed difference for several years.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Apr 30, 2023 12:08:56 GMT -5
So that's a semi-annual rate of 3.40% plus a fixed rate of 0.90%? Well, I got my I bond (for tax refund) in the mail yesterday. Figures. I'll be stuck with a fixed rate of 0.40% on that one. But at least interest accrued starting April 1. Interestingly, I received a single bond for $5,000. In years past the bonds were in various denominations adding up to $5,000. Meh. The difference in fixed rate is only going to amount to $25/year on that 5K bond and you are starting out the first 6 months at a much higher variable rate so you won't even notice that fixed difference for several years. Mentioned on another thread - but I ended up getting 2.5 extra ibond from my tax return. so 12.5k into ibonds this year.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 1, 2023 11:12:54 GMT -5
logged in to see the interest and new credit, so have now done the 10k max for 3 years ...surreal! Seems we started talking about this like 6 months ago and it was first I heard about it. interest is down again this month.....got up to a high of 166 in february, but has been dwindling as they change over. down to 134 this month. Not to mention, I have about 5k that is moving over to the new low interest rate, and these all have 0% fixed oh well! better returns than the stocks this month ETA: while things will perk up a bit once the new bonds start getting interest, more of the old will switch over. Will be interesting to see how low it goes over the next few months to a year.....
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minnesotapaintlady
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Post by minnesotapaintlady on May 1, 2023 14:06:03 GMT -5
I just creeped over the line to 39,060 in bonds. $3,060 of that is interest. So getting close to enough to cover all of Carrot's 8th grade tuition in August ($3600). I don't think I'll pull it from there though, I want to wait until my 3 month interest loss is lower. He still has 5K in an ESA I can use.
I need to do some maths though. I'm thinking about taking 10K out that I bought in 2021 with a 0% fixed rate, siphoning off what I need for a few things, then re-investing the rest at the new rate.
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Artemis Windsong
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Post by Artemis Windsong on May 1, 2023 15:02:33 GMT -5
The new rate has been posted. 4.30% This includes a fixed rate of 0.90% For I bonds issued May 1, 2023 to October 31, 2023. Does everyone get fixed rate or no?
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minnesotapaintlady
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Post by minnesotapaintlady on May 1, 2023 15:05:45 GMT -5
The new rate has been posted. 4.30% This includes a fixed rate of 0.90% For I bonds issued May 1, 2023 to October 31, 2023. Does everyone get fixed rate or no? Everyone that buys from May 1 to Oct 31 gets the new fixed rate. Old bonds get whatever fixed rate they had when they were purchased. Most of mine are at 0% fixed.
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CCL
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Post by CCL on May 1, 2023 21:22:02 GMT -5
I just creeped over the line to 39,060 in bonds. $3,060 of that is interest. So getting close to enough to cover all of Carrot's 8th grade tuition in August ($3600). I don't think I'll pull it from there though, I want to wait until my 3 month interest loss is lower. He still has 5K in an ESA I can use.
I need to do some maths though. I'm thinking about taking 10K out that I bought in 2021 with a 0% fixed rate, siphoning off what I need for a few things, then re-investing the rest at the new rate.
So if you do that, then your fixed rate portion will be increased to .9% instead of 0%? Does it stay .9% indefinitely? Is that how it works? I'm still learning.
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minnesotapaintlady
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Post by minnesotapaintlady on May 1, 2023 21:34:18 GMT -5
I just creeped over the line to 39,060 in bonds. $3,060 of that is interest. So getting close to enough to cover all of Carrot's 8th grade tuition in August ($3600). I don't think I'll pull it from there though, I want to wait until my 3 month interest loss is lower. He still has 5K in an ESA I can use.
I need to do some maths though. I'm thinking about taking 10K out that I bought in 2021 with a 0% fixed rate, siphoning off what I need for a few things, then re-investing the rest at the new rate.
So if you do that, then your fixed rate portion will be increased to .9% instead of 0%? Does it stay .9% indefinitely? Is that how it works? I'm still learning. Yes, the fixed rate when you buy stays with the bond until you sell. Only the variable rate changes. I haven't bought any of my 10K allotment this year and don't have any money to do so, so I could cash in the 10K from 2021 and buy another 10K in 2023. Of course, it restarts the clock, so there would be 12 months of not being able to access it and while I was 3 years from hitting the 5 year mark and no 3 month penalty now I'd be back at 5 years again.
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seriousthistime
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Post by seriousthistime on May 2, 2023 8:32:49 GMT -5
I've maxed out for the year. One or two of my I bonds are more than 12 months old so in theory I could cash them in and buy a new one with this higher fixed rate. Live and learn. Maybe don't cash out completely until May.
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Artemis Windsong
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Post by Artemis Windsong on May 2, 2023 17:57:17 GMT -5
Let us know if you do the swap and how it works out.
I thought we lost 3 months interest if not held 5 yrs. I'll probably try Tbills.
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countrygirl2
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Post by countrygirl2 on May 2, 2023 18:27:06 GMT -5
I have a bunch with fixed rates, haven't checked them for the next earnings periods to see what they will earn. They are all on my computer back home. I expect them to do well though. It's comforting to know they are chugging along earning in case I ever need them. I have some that are at least 20 years old now and then newer. Can't remember when I stopped buying them; When no more fixed component and rates dropped to nothing. But I did good with the ones I do have.
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minnesotapaintlady
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Post by minnesotapaintlady on May 2, 2023 21:01:22 GMT -5
Let us know if you do the swap and how it works out.
I thought we lost 3 months interest if not held 5 yrs. I'll probably try Tbills.
You do lose 3 months interest if you cash in before 5 years, but that is already reflected in the balance on Treasury Direct.
I'm thinking now I probably won't do that because I'm at a super high marginal tax rate right now. If I cash in the entire 10K bond from 2021 it would be with $1300 in interest and I would have to forfeit 30% of that interest to taxes.
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azucena
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Post by azucena on May 3, 2023 4:03:46 GMT -5
Isn't there a way around taxes if used for college? Thought I read something about that.
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minnesotapaintlady
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Post by minnesotapaintlady on May 3, 2023 7:13:53 GMT -5
Isn't there a way around taxes if used for college? Thought I read something about that. Yes, if you are under the income limit and over the age of 24 you can use them for yourself or a dependent for higher ed expenses (so it doesn't work to buy them in your kids name and use them for college tax-free).
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 3, 2023 13:34:47 GMT -5
Let us know if you do the swap and how it works out.
I thought we lost 3 months interest if not held 5 yrs. I'll probably try Tbills.
You do lose 3 months interest if you cash in before 5 years, but that is already reflected in the balance on Treasury Direct.
I'm thinking now I probably won't do that because I'm at a super high marginal tax rate right now. If I cash in the entire 10K bond from 2021 it would be with $1300 in interest and I would have to forfeit 30% of that interest to taxes. 30%?? how?? they are exempt from state income tax, yes?
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minnesotapaintlady
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Post by minnesotapaintlady on May 3, 2023 13:44:35 GMT -5
You do lose 3 months interest if you cash in before 5 years, but that is already reflected in the balance on Treasury Direct.
I'm thinking now I probably won't do that because I'm at a super high marginal tax rate right now. If I cash in the entire 10K bond from 2021 it would be with $1300 in interest and I would have to forfeit 30% of that interest to taxes. 30%?? how?? they are exempt from state income tax, yes? 10% federal tax bracket plus 21% in reduction in Earned Income Credit.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 3, 2023 13:46:58 GMT -5
30%?? how?? they are exempt from state income tax, yes? 10% federal tax bracket plus 21% in reduction in Earned Income Credit.
got it! wow, what a bite!
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minnesotapaintlady
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Post by minnesotapaintlady on May 3, 2023 15:29:48 GMT -5
10% federal tax bracket plus 21% in reduction in Earned Income Credit.
got it! wow, what a bite! Yep. My 401K Golden Handcuffs, especially when that includes another 10% for state.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 15, 2023 11:16:14 GMT -5
still waiting on my paper ibonds.......
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nidena
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Post by nidena on May 22, 2023 12:30:08 GMT -5
Now that my part-time income has resumed, so has the purchasing of $25 worth. Only, now, I can purchase every week instead of every other week.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 22, 2023 13:44:00 GMT -5
Now that my part-time income has resumed, so has the purchasing of $25 worth. Only, now, I can purchase every week instead of every other week.
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Rukh O'Rorke
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Post by Rukh O'Rorke on May 22, 2023 13:45:42 GMT -5
still waiting on my paper ibonds....... have received these....have not been able to deal with them as yet, just buried them in a draw of important papers..... I only got 2 1000, and one 500. There was another 60 dollars owed they just sent to checking..... So I guess the big question is - should I adjust my withholding? Or let this roll so I can have extra next year?
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seriousthistime
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Post by seriousthistime on May 23, 2023 8:45:39 GMT -5
I would not reduce my withholding. I would be more inclined to increase it, but hey, that's just me.
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