I Bonds, anyone?

[Tiny]

You may be cutting it close for the 2021 buy - if you don't have a Treasury Direct account already set up with one of your bank accounts connected to it.

To do the 20K you and your hubby need TD accounts (I think they can both access the same bank account).

[minnesotapaintlady]

Dec 29, 2021 14:40:04 GMT -5 Tiny said:

You may be cutting it close for the 2021 buy - if you don't have a Treasury Direct account already set up with one of your bank accounts connected to it.

To do the 20K you and your hubby need TD accounts (I think they can both access the same bank account).

Not only that, but purchases don't go through right away.  The ones I bought in May say Request Date 5/18, Issue Date 5/28.  I don't know what they go by for deciding what year they were bought in. 

I figured Bogleheads would be talking about it and found this thread.  I would do it today if possible.

www.bogleheads.org/forum/viewtopic.php?f=1&t=366011

[azucena]

Thanks for the push.  I went ahead and opened an account for myself and transferred $10k.  We'll see if it processes in time.  I'll chat with DH when he gets off work to see if he wants to do the same.  I usually wouldn't do something like this without giving him a heads up but he doesn't respond to texts while he's teaching.  I also wonder if he already has an account.

I could also put some in my daughters' names too.

I should branch out and read bogleheads.

[azucena]

Transfer went through.

[Artemis Windsong]

I goofed up and closed out one of my CDs today to fund my 2022 I-bond. With the mailing of the check and forwarding to where I am, I can't get it done as quick as I wanted. I might scramble to gather funds together then buy it and reimburse those sources.

[Rukh O'Rorke]

to celebrate the new year, I put in an order for 2500, then realized I had other ideas on that money, lol. forgot my cc balance was so high after all that christmas shopping! Will look through upcoming bills and see if I can pay those off anyway. I had wanted to pay off the full amount of cc's beginging of the year to start fresh, even though some of those balances won't be due until February.

Oh well, will get another paycheck soon and use that for a lot of the credit card. hope I don't have to take anything out of my savings account, but if I did, it would just be like transferring the savings to the ibonds, right? and that is ok to do too.

I had only bought 200 in i bonds last July, so that is the only ones that flipped over to the 7.12%. in August I had 2200 in ibond purchased, so looking forward to that flipping to the higher interest rate. I only started last year, so from last year's inputs, I have 4800 at the 3.54%, and 5200 at the 7.12%. 

Want to get the 10k for 2022 in there as soon as I can. But not sure if I'm willing to lower the 401k amounts temporarily to do the ibond quicker.

It could be a good move, so fill up ibonds first, then up the 401k?

Will think on it. I do like the set and forget to max by year's end on 401k.

[minnesotapaintlady]

You will get the 7.12% for 6 full months on I bonds purchased all the way up to the end of April so no need to hurry if you have other priorities.  You also get the full months interest and credit for being invested the entire month even if you buy on the last day.  I have money sitting in high yield checking earning 2% right now and for sure won't bother until the end of January.  Get the 2% from my CU and then the 7.12% from TD.  

[Rukh O'Rorke]

Jan 1, 2022 14:08:04 GMT -5 minnesotapaintlady said:

You will get the 7.12% for 6 full months on I bonds purchased all the way up to the end of April so no need to hurry if you have other priorities.  You also get the full months interest and credit for being invested the entire month even if you buy on the last day.  I have money sitting in high yield checking earning 2% right now and for sure won't bother until the end of January.  Get the 2% from my CU and then the 7.12% from TD.  

sounds good! I will pace myself to finish the buy by end of april.

[djAdvocate]

Dec 26, 2021 1:10:14 GMT -5 djAdvocate said:

interesting investment. how does it compare to the TIP ETF?

any takers?

[Rukh O'Rorke]

Jan 11, 2022 15:53:20 GMT -5 djAdvocate said:

Dec 26, 2021 1:10:14 GMT -5 djAdvocate said:

interesting investment. how does it compare to the TIP ETF?

any takers?

it's at 7.12% interest and principal does not get risked....

TIPs ETF can go down in value.

[Tiny]

Jan 11, 2022 15:53:20 GMT -5 djAdvocate said:

Dec 26, 2021 1:10:14 GMT -5 djAdvocate said:

interesting investment. how does it compare to the TIP ETF?

any takers?

I don't know much about the TIP ETF - and what I need right now is someplace to "store" cash (part of my EF so not a whole lot of $$).   I started moving some of my EF money to i-Bonds back in May when the interest rate was 3.54%.   I had that money in CDs getting less than .25%...    I have a short horizon 12 to 18 months... and not a whole lot of "cash".  I-bonds look really good for the short term.  And I can't loose any of the principle (I know the 3 months of interest get forfeit if I cash out the bond(s) after 12 months. 

In general I don't think I-bonds are a "must" for everyone's financial plan.    They are just another tool in the "financial tool box". 

[minnesotapaintlady]

Well, I wasn't going to bother with the paper tax refund bonds...but...Albert Einstein! 

[seriousthistime]

When cashing in an electronic I Bond, do you need to cash in the entire amount if you bought it in one transaction? 

ETA: I think I answered my own question.  

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.)

[minnesotapaintlady]

Nope.  That's why I just bought a 10K bond to simplify things. 

[plugginaway22]

I am overthinking this and need to just move another $20K from our online savings earning .30% and purchase 2 more Ibonds for DH and I.

[Tiny]

I've been overthinking this as well. I have a 20K CD coming due at the end of January - and I believe I have "talked" myself into moving 10K of it to I-Bonds (I'm single). I may be moving the other 10K to Ally - not sure.

I'm using the line of thought that getting 7% interest on 10K for 6 months and then an unknown rate for 6 months AND then maybe having to loose 3 months of interest (should I need to withdraw some or all of the I-bond money ) is WAY better than letting it collect dust in a 12 month (or "special" 13 or 15 month) CD at what will probably be less than .5% interest.   (being math challenged I haven't actually figured out the possible $$ amounts of interest involved in this - but it sure FEELS like I-bonds are a better deal.   I will have 10K from last year (and older bonds) and 10K for 2022.  I don't think  I'm getting a tax refund for 2021  - I may owe a little - but if I do have a refund - I will go the I-bond route just for "yucks". ) 

I'm telling myself that I-bonds are a great place to "store cash" that I want to keep "cash like" but which I am highly unlikely to need as "cash" for the next 12 to 18 months.



When I look into my Crystal Ball to predict the future rates on I-bonds -   I'm guessing the fixed rate will remain 0%  but the variable rate will perhaps drop to 3.5% rate or perhaps stay in the 6 to 7% range.   It seems unlikely that the variable rate will drop back to the old low.      And I really really really wish I had moved some of my "CD" money to I-bonds back when the CD rates dropped below 1%.      I had my EF cash at stupid low rates for over 2 years.      Hindsight is always 20/20.   

[minnesotapaintlady]

Jan 13, 2022 10:34:39 GMT -5 Tiny said:

I've been overthinking this as well. I have a 20K CD coming due at the end of January - and I believe I have "talked" myself into moving 10K of it to I-Bonds (I'm single). I may be moving the other 10K to Ally - not sure.

I'm using the line of thought that getting 7% interest on 10K for 6 months and then an unknown rate for 6 months AND then maybe having to loose 3 months of interest (should I need to withdraw some or all of the I-bond money ) is WAY better than letting it collect dust in a 12 month (or "special" 13 or 15 month) CD at what will probably be less than .5% interest.   (being math challenged I haven't actually figured out the possible $$ amounts of interest involved in this - but it sure FEELS like I-bonds are a better deal.   I will have 10K from last year (and older bonds) and 10K for 2022.  I don't think  I'm getting a tax refund for 2021  - I may owe a little - but if I do have a refund - I will go the I-bond route just for "yucks". ) 

I'm telling myself that I-bonds are a great place to "store cash" that I want to keep "cash like" but which I am highly unlikely to need as "cash" for the next 12 to 18 months.



When I look into my Crystal Ball to predict the future rates on I-bonds -   I'm guessing the fixed rate will remain 0%  but the variable rate will perhaps drop to 3.5% rate or perhaps stay in the 6 to 7% range.   It seems unlikely that the variable rate will drop back to the old low.      And I really really really wish I had moved some of my "CD" money to I-bonds back when the CD rates dropped below 1%.      I had my EF cash at stupid low rates for over 2 years.      Hindsight is always 20/20.   

Even if both rates dropped to 0 at the next reset, you'd still be way better off with 6 months of 7.12%.  That comes to $356 compared to the $50 you'd get in the .5% savings.

[countrygirl2]

Can you still buy paper bonds, thought they were all treasury direct now.
Ok, I see, that is if you get a tax refund, what's that, never see those.

[countrygirl2]

Not unhappy with them, mine run the gamit from low interest to high. In January will accrue $655 on $132k, hope that will be through year end, will be happy.

I could kick myself in those first years not buying the limit. I have them earning from 3.54% only 3 to several at 8.16% and 2 at 9.19%.  

With the national debt I imagine these rates will hold.

I just wish I could still buy paper bonds. Maybe in future years I could overpay my deposits so I could get the refunds in bonds.

[Artemis Windsong]

I figured out my issue on the account number. The account number you use to fund your first I-bond is IT. To change that, a government form has to be downloaded, filled out, taken to the bank to verify as you sign.

More waiting.

Note to self. Slow down, read the directions. That I couldn't find when I was looking a few days ago.

[seriousthistime]

Jan 13, 2022 11:53:34 GMT -5 countrygirl2 said:

Not unhappy with them, mine run the gamit from low interest to high. In January will accrue $655 on $132k, hope that will be through year end, will be happy.

I could kick myself in those first years not buying the limit. I have them earning from 3.54% only 3 to several at 8.16% and 2 at 9.19%.  

With the national debt I imagine these rates will hold.

I just wish I could still buy paper bonds. Maybe in future years I could overpay my deposits so I could get the refunds in bonds.

That is what I did this year.  I have no idea if I've overpaid by $5k, but I have certainly overpaid.  I need to do my taxes and find out where I am for 2021.  It was my first year of retirement so my income was vastly different from previous years.  

[seriousthistime]

Jan 25, 2022 13:50:46 GMT -5 Artemis Windsong said:

I figured out my issue on the account number. The account number you use to fund your first I-bond is IT. To change that, a government form has to be downloaded, filled out, taken to the bank to verify as you sign.

More waiting.

Note to self. Slow down, read the directions. That I couldn't find when I was looking a few days ago.

In that reading, did you find out whether redemptions are paid out to the first bank, and if you want the redemption sent to a different bank you have to go through the government paper form process?  I guess this would be a good reason not to close the original account.  Not that I have to, because it's an online bank and there are very few physical locations. 

[minnesotapaintlady]

Jan 25, 2022 17:26:56 GMT -5 seriousthistime said:

Jan 25, 2022 13:50:46 GMT -5 Artemis Windsong said:

I figured out my issue on the account number. The account number you use to fund your first I-bond is IT. To change that, a government form has to be downloaded, filled out, taken to the bank to verify as you sign.

More waiting.

Note to self. Slow down, read the directions. That I couldn't find when I was looking a few days ago.

In that reading, did you find out whether redemptions are paid out to the first bank, and if you want the redemption sent to a different bank you have to go through the government paper form process?  I guess this would be a good reason not to close the original account.  Not that I have to, because it's an online bank and there are very few physical locations. 

You can add another account, but you have to go through the Medallion seal deal that she's going through right now.  Once it's in there you can delete the current one or have it not be primary. 

[countrygirl2]

I just looked at my Walmart statements. The $1200 of stock I bought long ago with letting earnings reinvest is now worth $31,000+. So between I bonds and stock, I'm happy.

Need to check hubs Vanguard, likely lost some, Principal is usually churning along well, but we don't have much in it.

I have a cash stash that I need to put in I's. It's in a MM earning nothing about $60k.

[Tiny]

I checked my TD account (because I ended the CD and now have 10K I could buy more I-bonds with). It appears that the $1300 purchase done right before 12/31/2021 bumped over into 2022. I'm not sure if it's because I miscalculated the amount that would get me to 10K for 2021 (I should have purchased $1200 - I'm math challenged... so while this is annoying it's just who I am...) and since I wanted to purchase more than the 10K limit - it bumped the full amount to 2022 OR if I really did miss the cutoff for 2021 purchases.

Regardless, I put in a purchase of $8800.00 to get me to the 10K for 2022.

When I look at my older I-bonds I've got interest rates at or over the 3.45% from last May... some are 8+% .(or these were purchased monthly for $50 each so while cool not life changing. )

Any suggestions for what to do with an additional 10K (that I cannot use to buy I-Bonds)?   I'm thinking Ally... or do I sit on the money until the Fed increases rates - which might make CD rates go up?  but will they really be more than 1%?    I do NOT want to invest this money - I need it to remain 10K (or a little more). 

[Artemis Windsong]

Jan 25, 2022 17:26:56 GMT -5 seriousthistime said:

Jan 25, 2022 13:50:46 GMT -5 Artemis Windsong said:

I figured out my issue on the account number. The account number you use to fund your first I-bond is IT. To change that, a government form has to be downloaded, filled out, taken to the bank to verify as you sign.

More waiting.

Note to self. Slow down, read the directions. That I couldn't find when I was looking a few days ago.

In that reading, did you find out whether redemptions are paid out to the first bank, and if you want the redemption sent to a different bank you have to go through the government paper form process?  I guess this would be a good reason not to close the original account.  Not that I have to, because it's an online bank and there are very few physical locations. 

I didn't read anything on redemptions.  I mailed the check to the original account bank.  The next issue could be that bank has changed it's name.  I can feel the interest not accruing.  I also lost the last quarters interest on the CD I cashed early.  Harsh but going from .5% to 7.1%.

The information that treasury direct sent was very clear.

[Artemis Windsong]

Redemption is to the account on the drop down menu. Which means to me the original bank.

[Rukh O'Rorke]

thankfully, the activity on the thread brought it to my attention......I put in my order for 2500 and it looks like it will go through on the 31 so hopefully will count as a Jan purchase if that all goes well.

[seriousthistime]

Has anybody with a Treasury Direct account managed to figure out if it's possible to name multiple beneficiaries for I bonds?

If so, how? I can see information about naming someone as payable on death (POD) but it looks like it needed to be done at the time I set up the account (which is ridiculously because people's lives change) and it doesn't look like I could even name multiple people for POD. What if I want a few kids? 

[minnesotapaintlady]

Jan 31, 2022 18:48:46 GMT -5 seriousthistime said:

Has anybody with a Treasury Direct account managed to figure out if it's possible to name multiple beneficiaries for I bonds?

If so, how? I can see information about naming someone as payable on death (POD) but it looks like it needed to be done at the time I set up the account (which is ridiculously because people's lives change) and it doesn't look like I could even name multiple people for POD. What if I want a few kids? 

You can only have one joint owner or one beneficiary.  You can change it after the fact though.


thefinancebuff.com/i-bonds-add-joint-owner-change-beneficiary.html#:~:text=%20How%20to%20Add%20a%20Joint%20Owner%20or,Now%2C%20you%20need%20to%20create%20a...%20More%20