I Bonds, anyone?

[djAdvocate]

my latest strategy it to "migrate" from equities to TIPS.

every time I sell a stock, I buy TIP, which is a TIPS ETF. right now I am at about 10%. but that number will grow over time.

[tskeeter]

May 23, 2021 13:02:05 GMT -5 susana1954 said:

May 23, 2021 12:42:02 GMT -5 tskeeter said:

As part of our estate plan, we’ve given our trustees a listing of the locations of all of our assets, including account numbers, contact info, phone and website, etc.  That way they can locate the investment accounts, insurance policies, pensions, and everything else.  Update this information every couple of years to keep it relatively up to date.

I use Quicken so it has all the accounts listed.  If my son, who is the executor, isn't smart enough to look at the list of accounts to know where I have my money, then he needs to give back his CPA license. 

I have a list of passwords hidden on the computer, but they don't really need those after you die.  I learned after DH died that the creditors have a special department that will talk with you.

I’m sure that the information you have in Quicken will be helpful.  However, I find that there are a lot of assets that people might have that probably would not appear in Quicken records.  For example, my Dad had long term care insurance.  We got a refund of $1,300 of the premiums he had paid before he died.  I suspect that if you have a safe deposit box, that may not be included in your Quicken info.  How about car insurance?  If you die in a car accident and your car is destroyed, how and where do your heirs file a claim for the loss of your car?  How about things such as stock held in certificate form?  I have stock certificates for several thousand dollars worth of stock that I got back in the ‘80’s as part of an employee stock purchase plan.  Dad had about $60K worth of stock certificates that he got when his life insurance company demutualized.  If heirs don’t know that those types of assets exist and where to find them, a lot of a family’s assets can be lost.

With your son’s background in accounting, he’s much better equipped than the executors of most estates to use your financial records to identify your assets.  Even so, it’s possible that people may have assets that don’t appear in their financial records, or there may be things in financial records that aren’t readily recognizable as assets.  Things such as the opportunity for refunds on insurance premiums, payments related to Medicare, trash removal, cell phone or Internet service, certain memberships, various subscriptions, and probably a bunch of other stuff I’d never think of (Even though I was a CPA, it took about 6 weeks before I realized there might be a refund due on Dad’s LTC insurance.  I attribute my being slow on the uptake to being a first time executor, and not understanding what all of the issues and opportunities might be).

[Artemis Windsong]

May 23, 2021 13:09:42 GMT -5 djAdvocate said:

my latest strategy it to "migrate" from equities to TIPS.

every time I sell a stock, I buy TIP, which is a TIPS ETF. right now I am at about 10%. but that number will grow over time.

What are TIPS?

[dannylion]

May 23, 2021 15:11:47 GMT -5 Artemis Windsong said:

May 23, 2021 13:09:42 GMT -5 djAdvocate said:

my latest strategy it to "migrate" from equities to TIPS.

every time I sell a stock, I buy TIP, which is a TIPS ETF. right now I am at about 10%. but that number will grow over time.

What are TIPS?

Treasury Inflation Protected Securities

[Artemis Windsong]

I did check investopedia but did not get Treasury Inflation Protected Securities page. Thank you for the link.

[Rukh O'Rorke]

May 23, 2021 13:09:42 GMT -5 djAdvocate said:

my latest strategy it to "migrate" from equities to TIPS.

every time I sell a stock, I buy TIP, which is a TIPS ETF. right now I am at about 10%. but that number will grow over time.

so I did read a TIPS vs I-bond comparison on the treasury direct site. TIPS are more liquid, and you are on the secondary marketplace so even more so.

Was liquidity your only motivator? Or is there anything else that swayed you on TIPS vs I-bonds?

[Rukh O'Rorke]

May 23, 2021 10:02:50 GMT -5 minnesotapaintlady said:

May 23, 2021 0:50:36 GMT -5 Rukh O'Rorke said:

BIG MONEY ROLL!


at my rate I’ll hit 10k in 3-4 years...well, I’ll think more about you example [img src="https://i239.photobucket.com/albums/ff155/JiminiChristmas/ymamsmiles/smile.gif" src="//storage.proboards.com/forum/images/smiley/smiley.png" alt="" class="smile"]

I just wanted to get in on the 3.54%  My emergency fund was pretty fat so I felt comfortable locking up 10K of it for a year. 

yeah - I don't really have a plan for this at all. Your move seems so diligent and logical! I feel like a will-o-the-wisp! now the initial 500 and every 100 is going to be locked up for a year, so it wont work well as a source of emergency cash for quite some time. That part is ok, I guess i need to stcik to working, lol! And then, even after the years, not a whole lot of EF cash anyway, lol. I'm also overspending on my dividend stock. I've dipped heavily into my home improvement fund to invest.

And I'm stalled out on the home improvement front with a stray cat and 5 kittens. I don't want to frighten them away, we've tamed 2 kittens, and working on the others. But getting a new fence, potch, patio, driveway, and fixing the garage roof would likely scare them away to quieter climes, so putting things off until the kittens are weaned, hopefully tamed and found homes for, and then take care of mom. Have been feeding her for 5-6 weeks, and still won't let me touch her. 3 feet closest I've gotten. I do pick up the two tamed kits and take them into the house and she is getting ok with that - I think! She know they will come back, but I'm afraid she will move the brood if I don't take them in overnight! Will keep mom as an outdoor friend with TNR if we can't do better for her. Maybe she will allow more contact when done with kits?

But in the meantime been playing with my dividends and buying too much! I got more than 100k from my refinance, but I need to use it all on the house or not itemize interest for taxes. I'm down to a bit less than 87k. So would need to supplement with other money to put into the house, or sell some of the stocks I've gotten so fond of.

Will see where I'm at at end of summer.

[minnesotapaintlady]

May 24, 2021 16:27:37 GMT -5 Rukh O'Rorke said:

May 23, 2021 10:02:50 GMT -5 minnesotapaintlady said:

I just wanted to get in on the 3.54%  My emergency fund was pretty fat so I felt comfortable locking up 10K of it for a year. 

yeah - I don't really have a plan for this at all. Your move seems so diligent and logical! I feel like a will-o-the-wisp! now the initial 500 and every 100 is going to be locked up for a year, so it wont work well as a source of emergency cash for quite some time. That part is ok, I guess i need to stcik to working, lol! And then, even after the years, not a whole lot of EF cash anyway, lol. I'm also overspending on my dividend stock. I've dipped heavily into my home improvement fund to invest.

And I'm stalled out on the home improvement front with a stray cat and 5 kittens. I don't want to frighten them away, we've tamed 2 kittens, and working on the others. But getting a new fence, potch, patio, driveway, and fixing the garage roof would likely scare them away to quieter climes, so putting things off until the kittens are weaned, hopefully tamed and found homes for, and then take care of mom. Have been feeding her for 5-6 weeks, and still won't let me touch her. 3 feet closest I've gotten. I do pick up the two tamed kits and take them into the house and she is getting ok with that - I think! She know they will come back, but I'm afraid she will move the brood if I don't take them in overnight! Will keep mom as an outdoor friend with TNR if we can't do better for her. Maybe she will allow more contact when done with kits?

But in the meantime been playing with my dividends and buying too much! I got more than 100k from my refinance, but I need to use it all on the house or not itemize interest for taxes. I'm down to a bit less than 87k. So would need to supplement with other money to put into the house, or sell some of the stocks I've gotten so fond of.

Will see where I'm at at end of summer.

I had a 2 part reason. One, I'm super heavy in stocks in my retirement portfolio and I felt more comfortable with this than putting more money in bond funds. It essentially is just an extension of tax deferred space for retirement.

The other reason is I really, really want to bail in 7 years (if I don't get fired before then!) and I'd like to have 2-3 years worth of fairly liquid assets I can tap or to use to pay off my house if I haven't done that by then. I don't know. There's 100 things I want to accomplish financially before I retire and I don't really make enough to do them all so I should probably prioritize rather than kill myself trying. 😉

[Rukh O'Rorke]

May 24, 2021 17:39:04 GMT -5 minnesotapaintlady said:

May 24, 2021 16:27:37 GMT -5 Rukh O'Rorke said:

yeah - I don't really have a plan for this at all. Your move seems so diligent and logical! I feel like a will-o-the-wisp! now the initial 500 and every 100 is going to be locked up for a year, so it wont work well as a source of emergency cash for quite some time. That part is ok, I guess i need to stcik to working, lol! And then, even after the years, not a whole lot of EF cash anyway, lol. I'm also overspending on my dividend stock. I've dipped heavily into my home improvement fund to invest.

And I'm stalled out on the home improvement front with a stray cat and 5 kittens. I don't want to frighten them away, we've tamed 2 kittens, and working on the others. But getting a new fence, potch, patio, driveway, and fixing the garage roof would likely scare them away to quieter climes, so putting things off until the kittens are weaned, hopefully tamed and found homes for, and then take care of mom. Have been feeding her for 5-6 weeks, and still won't let me touch her. 3 feet closest I've gotten. I do pick up the two tamed kits and take them into the house and she is getting ok with that - I think! She know they will come back, but I'm afraid she will move the brood if I don't take them in overnight! Will keep mom as an outdoor friend with TNR if we can't do better for her. Maybe she will allow more contact when done with kits?

But in the meantime been playing with my dividends and buying too much! I got more than 100k from my refinance, but I need to use it all on the house or not itemize interest for taxes. I'm down to a bit less than 87k. So would need to supplement with other money to put into the house, or sell some of the stocks I've gotten so fond of.

Will see where I'm at at end of summer.

I had a 2 part reason. One, I'm super heavy in stocks in my retirement portfolio and I felt more comfortable with this than putting more money in bond funds. It essentially is just an extension of tax deferred space for retirement.

The other reason is I really, really want to bail in 7 years (if I don't get fired before then!) and I'd like to have 2-3 years worth of fairly liquid assets I can tap or to use to pay off my house if I haven't done that by then. I don't know. There's 100 things I want to accomplish financially before I retire and I don't really make enough to do them all so I should probably prioritize rather than kill myself trying. 😉

I think you're doing fantastic, and I try to model you when I can

I don't know if I'm going to make 7 months in my job, to be honest. I am so drained - waiting to hear on a promotion which my boss supports, plus raise and bonus info, and then I'll know which way I am going. If I don't get this promotion, I honestly don't think I can last very long. I've been doing the job for over a year (in addition to my titled job) and feel so taken advantage of. Either say yes or no, and if no, I'd like to stop doing two jobs immediately. If it doesn't go through.....well, could be time to pull a dark!

Looking at bond/fixed income stuff in my current 401k and I just don't like them! If they had just a tips ETF like DJ mentioned, I could go with it. But it is all focused on that old school stock and bond and I am not liking the usual bonds right now. very little upside and potential for a dip that would have made cash a better option.

The i bonds seem like what I need, but I just don't have enough funds to fund everything I want! Getting a year's worth of expenses into the I bonds would take me forever....I guess I just have to do the best I can and keep moving forward. After a few months, I'll see if I can up my 100/paycheck.

Trying to hang on for this long weekend, then hang on for vacation, and then rethink a little bit more.

[minnesotapaintlady]

May 25, 2021 9:52:03 GMT -5 Rukh O'Rorke said:

Trying to hang on for this long weekend, then hang on for vacation, and then rethink a little bit more.

Same!  Also, on the 7 months part.  Although sometimes I wonder if they won't just let me go, I've been so unproductive and scatterbrained for such a long time.  The labor shortage is my friend right now I think. 

[Artemis Windsong]

I'm pissed being limited to ONE only one I bond.

[minnesotapaintlady]

May 25, 2021 13:17:32 GMT -5 Artemis Windsong said:

I'm pissed being limited to ONE only one I bond.

One as in on 10K bond?  There's only a dollar amount limit.

[Tiny]

May 25, 2021 13:17:32 GMT -5 Artemis Windsong said:

I'm pissed being limited to ONE only one I bond.

Yeah,  I noticed that 'complication' when I purchased the first 1K I bond.   It didn't give me any options (like the ability to do 2 $500 bonds). 

Kind of sucks that if you want to use some of the bond money - you have to cash out the whole big lump sum bond... 

I'm not able to do a big lump sum I bond purchase - so mine will be in smaller denominations (1K, 2K, 2K and then maybe a 5K one...) because I will buy them on different days.   So, I think I will have some flexibility with "cashing" them out if I need some of the $$ in the next year or within 5 years.  

I can see where this might be an issue with having one's EF in large denomination I bonds - and having a smaller amount emergency.    I'm using this for EF "overflow" so I don't ever expect to need this money in a suitcase at midnight on Friday. 

I'm thinking that the people who are using the 10K  as part of their retirement income might be willing to pull the whole 10K at once when it's needed.  And so a single 10K I bond isn't such a big deal.  

[minnesotapaintlady]

May 25, 2021 15:17:26 GMT -5 Tiny said:

May 25, 2021 13:17:32 GMT -5 Artemis Windsong said:

I'm pissed being limited to ONE only one I bond.

Yeah,  I noticed that 'complication' when I purchased the first 1K I bond.   It didn't give me any options (like the ability to do 2 $500 bonds). 

Kind of sucks that if you want to use some of the bond money - you have to cash out the whole big lump sum bond... 

I'm not able to do a big lump sum I bond purchase - so mine will be in smaller denominations (1K, 2K, 2K and then maybe a 5K one...) because I will buy them on different days.   So, I think I will have some flexibility with "cashing" them out if I need some of the $$ in the next year or within 5 years.  

I can see where this might be an issue with having one's EF in large denomination I bonds - and having a smaller amount emergency.    I'm using this for EF "overflow" so I don't ever expect to need this money in a suitcase at midnight on Friday. 

I'm thinking that the people who are using the 10K  as part of their retirement income might be willing to pull the whole 10K at once when it's needed.  And so a single 10K I bond isn't such a big deal.  

Can't you just submit an order for a $500 bond.  Then go back in and do it again?  I have a pending order for a 10K one so I'd be over the limit otherwise I'd test it out.  

eta:  Keep in mind, you don't have to cash out the entire bond so there really isn't any advantage to having it in multiple smaller ones.

You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond’s value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)

[Tiny]

May 25, 2021 15:30:41 GMT -5 minnesotapaintlady said:

May 25, 2021 15:17:26 GMT -5 Tiny said:

Yeah,  I noticed that 'complication' when I purchased the first 1K I bond.   It didn't give me any options (like the ability to do 2 $500 bonds). 

Kind of sucks that if you want to use some of the bond money - you have to cash out the whole big lump sum bond... 

I'm not able to do a big lump sum I bond purchase - so mine will be in smaller denominations (1K, 2K, 2K and then maybe a 5K one...) because I will buy them on different days.   So, I think I will have some flexibility with "cashing" them out if I need some of the $$ in the next year or within 5 years.  

I can see where this might be an issue with having one's EF in large denomination I bonds - and having a smaller amount emergency.    I'm using this for EF "overflow" so I don't ever expect to need this money in a suitcase at midnight on Friday. 

I'm thinking that the people who are using the 10K  as part of their retirement income might be willing to pull the whole 10K at once when it's needed.  And so a single 10K I bond isn't such a big deal.  

Can't you just submit an order for a $500 bond.  Then go back in and do it again?  I have a pending order for a 10K one so I'd be over the limit otherwise I'd test it out.  

eta:  Keep in mind, you don't have to cash out the entire bond so there really isn't any advantage to having it in multiple smaller ones.

You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond’s value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)

Good to know!    I'm buying the bonds as I have the money it's just "falling out" that way.   When the next 2K is available I will try to submit two 1K orders just for yuks.    I probably should have looked at the redemption process.   I was doing a "here take my money!" thing... since I don't expect to need the money (and I was feeling dissappointed with the low interest rates on all the other places I could put the money.) 

   

[Rukh O'Rorke]

May 25, 2021 15:30:41 GMT -5 minnesotapaintlady said:

May 25, 2021 15:17:26 GMT -5 Tiny said:

Yeah,  I noticed that 'complication' when I purchased the first 1K I bond.   It didn't give me any options (like the ability to do 2 $500 bonds). 

Kind of sucks that if you want to use some of the bond money - you have to cash out the whole big lump sum bond... 

I'm not able to do a big lump sum I bond purchase - so mine will be in smaller denominations (1K, 2K, 2K and then maybe a 5K one...) because I will buy them on different days.   So, I think I will have some flexibility with "cashing" them out if I need some of the $$ in the next year or within 5 years.  

I can see where this might be an issue with having one's EF in large denomination I bonds - and having a smaller amount emergency.    I'm using this for EF "overflow" so I don't ever expect to need this money in a suitcase at midnight on Friday. 

I'm thinking that the people who are using the 10K  as part of their retirement income might be willing to pull the whole 10K at once when it's needed.  And so a single 10K I bond isn't such a big deal.  

Can't you just submit an order for a $500 bond.  Then go back in and do it again?  I have a pending order for a 10K one so I'd be over the limit otherwise I'd test it out.  

eta:  Keep in mind, you don't have to cash out the entire bond so there really isn't any advantage to having it in multiple smaller ones.

You can cash a minimum of $25 or any amount above that in 1-cent increments. If you cash only a portion of the bond’s value, you must leave at least $25 in the TreasuryDirect account. Redemptions are comprised of principal and interest. (In a partial redemption, we pay interest only on the partial amount you cash.)

Another fine point - I'm assuming that the 10k limit is per calendar year, so on Jan 1st it resets? not that you buy 10K in may and have to wait till may 2022 to buy again?

[minnesotapaintlady]

May 25, 2021 19:31:41 GMT -5 Rukh O'Rorke said:

May 25, 2021 15:30:41 GMT -5 minnesotapaintlady said:

Another fine point - I'm assuming that the 10k limit is per calendar year, so on Jan 1st it resets? not that you buy 10K in may and have to wait till may 2022 to buy again?

Yes, per calendar year.  You can also get up to an additional 5K in paper bonds if you elect to have your tax refund given to you that way. 

[Rukh O'Rorke]

May 25, 2021 21:20:05 GMT -5 minnesotapaintlady said:

May 25, 2021 19:31:41 GMT -5 Rukh O'Rorke said:

Another fine point - I'm assuming that the 10k limit is per calendar year, so on Jan 1st it resets? not that you buy 10K in may and have to wait till may 2022 to buy again?

Yes, per calendar year.  You can also get up to an additional 5K in paper bonds if you elect to have your tax refund given to you that way. 

Does that mean if like your house burnt down they’re toast?

[susana1954]

I buy 2 bonds every time.  I have 2 kids so I make each of them a beneficiary of a separate bond.

[susana1954]

May 25, 2021 21:25:47 GMT -5 Rukh O'Rorke said:

May 25, 2021 21:20:05 GMT -5 minnesotapaintlady said:

Yes, per calendar year.  You can also get up to an additional 5K in paper bonds if you elect to have your tax refund given to you that way. 

Does that mean if like your house burnt down they’re toast?

No.  And they will replace them if you lose them.  Remember they are tied to your SS number.

[Tiny]

May 25, 2021 21:25:47 GMT -5 Rukh O'Rorke said:

May 25, 2021 21:20:05 GMT -5 minnesotapaintlady said:

Yes, per calendar year.  You can also get up to an additional 5K in paper bonds if you elect to have your tax refund given to you that way. 

Does that mean if like your house burnt down they’re toast? 

You can always follow the instructions on the TreasuryDirect page for sending in your paper bonds and having them added to your electronic account. Which is probably worth the effort - as I'm hearing that not all banking locations can cash in your paper bonds.
I'm guessing what that really means is the storefront Big Name banks with a greeter and a single teller and a bank of ATMs might be hard pressed to know what to do with your bonds.

[minnesotapaintlady]

May 25, 2021 21:25:47 GMT -5 Rukh O'Rorke said:

May 25, 2021 21:20:05 GMT -5 minnesotapaintlady said:

Yes, per calendar year.  You can also get up to an additional 5K in paper bonds if you elect to have your tax refund given to you that way. 

Does that mean if like your house burnt down they’re toast?

The paper ones are actually more secure than the TD ones.  They'll replace them even if someone fraudulently cashes them.  There's no guarantee like that with the online bonds. 

[Artemis Windsong]

I need to add a beneficiary to my TD acct.

[susana1954]

May 26, 2021 8:11:19 GMT -5 Artemis Windsong said:

I need to add a beneficiary to my TD acct.

I don't think it is to the "account."  Each of my bonds has a separate beneficiary.  You can go back and designate one for each bond, but you need the beneficiary's SSN.  Once  you designate that person, the info is auto-saved to make it more convenient.  I choose from two drop-downs each time, either my son or my daughter.  I don't have to re-enter their information.

In my case, I buy 2 each time, designating one of my two adult kids as beneficiary.  Now when I look at the list, it is sorted by beneficiary.  All of the ones listing my daughter are together and all of the ones listing my son are together.  I imagine that will make it easier on them one day when I die and they cash them in.

ETA:  I could still choose not to make either one of them the beneficiary, having no beneficiary or a different beneficiary.

[Artemis Windsong]

I gave up as I couldn't find the link to add beneficiary.

[Rukh O'Rorke]

May 23, 2021 13:09:42 GMT -5 djAdvocate said:

my latest strategy it to "migrate" from equities to TIPS.

every time I sell a stock, I buy TIP, which is a TIPS ETF. right now I am at about 10%. but that number will grow over time.

Also - looking into tips etfs, they can lose a bit as well as gain. That is a concern for me.

but the I-bonds lack of liquidity - especially immediately after purchase, is a concern.

[Rukh O'Rorke]

I've added a goal to get to 10K I-bonds by end of the year. Will see if that happens.

[minnesotapaintlady]

May 28, 2021 20:11:02 GMT -5 Rukh O'Rorke said:

but the I-bonds lack of liquidity - especially immediately after purchase, is a concern.

I kind of like that part.  Keeps me away from it.  But I still have other EF money I can hit. 

The 10K left my account today and I bought a car today as well.  I was used to a really fat checking account.  It's much "trimmer" now. 

[Tiny]

but the I-bonds lack of liquidity - especially immediately after purchase, is a concern.

I'm thinking of them as "CDs" - I already have it in my head that I would only "close" or "break" my oldest CD (and loose 3 months of interest or whatever it is). In 30 years I've never needed to "break" or "close" a CD before it's due date. I have access to my "first tier" of very liquid EF money so if I need to get at an I-Bond (or a remaining CD) what every emergency I'm having has got to be catastrophic. I think I will be moving more CD money to I-Bonds - the one year "lock" isn't that big an issue  and the loss of 3 months interest is the same as a CD. 

I kind of wished I hadn't let so much money sit in CDs for the last 3 or 4 years - but the money served it's purpose.

[djAdvocate]

May 24, 2021 13:24:38 GMT -5 Rukh O'Rorke said:

May 23, 2021 13:09:42 GMT -5 djAdvocate said:

my latest strategy it to "migrate" from equities to TIPS.

every time I sell a stock, I buy TIP, which is a TIPS ETF. right now I am at about 10%. but that number will grow over time.

so I did read a TIPS vs I-bond comparison on the treasury direct site. TIPS are more liquid, and you are on the secondary marketplace so even more so.

Was liquidity your only motivator? Or is there anything else that swayed you on TIPS vs I-bonds?

I like the behavior of these bonds in inflationary markets.

I also owned some TLT, and this behaved VERY POORLY every time

the market reacted to changes in inflation/interest rates.

so, I just kind of developed a distaste for standard issue treasuries over time.