91–100 of 107 posts
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What sign-up bonuses?
Things like https://account.chase.com/consumer/banking/seo or https://www.bankrate.com/investing/best-brokerage-account-bo... or similar. They're not quite as good as they used to be, but if you had $10k in cash you could cycle through some and collect a few $hundreds.
No one has yet mentioned the tax-advantaged aspect. Interest income from I-bonds is exempt from state income tax, and federal tax can be deferred until you cash them in or 30 years, whichever comes first. Paying tax on the interest when you are in a lower tax bracket later in life makes a lot of sense. The income can also be tax-free if used for qualified educational expenses for you or some family members (not going…
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How do you get a physical bond? I thought they went all virtual these days.
https://www.irs.gov/refunds/using-your-income-tax-refund-to-... You can still get them if you get them as part of your tax return. Overpay estimated tax or increase your withholding. 10. Will I get actual paper bond certificates? Yes. Savings bonds purchased with a tax refund will be issued as paper bond certificates in your name. If you are married and filed a joint return, the savings bonds will be issued in your n…
Things I wish I knew earlier. When you buy them, you lock in the current rate for 6 months from the date you purchase & then you get the next rate for 6 months after that. So today you get 9.62% for 6 months, so you'll technically earn 4.81% interest on your money after 6 months from the date of purchase. You'll then get the next rate which is most likely 3% for 6 months (often quoted as 6% annually). This site does…
Yes, I-bonds are a bit of a meme right now, and IMO, overhyped. The other important things to note are that your money is locked for a year from purchase , you incur a penalty (3 months of interest) if you sell before 5 years, and the APY values being quoted are not indexed to inflation. I-bonds issued today yield essentially zero percent after inflation, and this will be true for as long as you hold them. Do not buy…
Things I wish I knew earlier. When you buy them, you lock in the current rate for 6 months from the date you purchase & then you get the next rate for 6 months after that. So today you get 9.62% for 6 months, so you'll technically earn 4.81% interest on your money after 6 months from the date of purchase. You'll then get the next rate which is most likely 3% for 6 months (often quoted as 6% annually). This site does…
Yes, I-bonds are a bit of a meme right now, and IMO, overhyped. The other important things to note are that your money is locked for a year from purchase , you incur a penalty (3 months of interest) if you sell before 5 years, and the APY values being quoted are not indexed to inflation. I-bonds issued today yield essentially zero percent after inflation, and this will be true for as long as you hold them. Do not buy…
I-series Bond Mega Thread on Bogleheads forum https://www.bogleheads.org/forum/viewtopic.php?f=10&t=346091...
Earlier quoted context omitted.
https://www.irs.gov/refunds/using-your-income-tax-refund-to-... You can still get them if you get them as part of your tax return. Overpay estimated tax or increase your withholding. 10. Will I get actual paper bond certificates? Yes. Savings bonds purchased with a tax refund will be issued as paper bond certificates in your name. If you are married and filed a joint return, the savings bonds will be issued in your n…
Looks like you have to paper file to get them, right?
If every year you invest $10k, in 20 years you will have $200k that will have grown tax deferred to likely $400k, which should be a really nice sum equivalent to perhaps 5-10 years of living expenses, which pairs well with the equity side of the portfolio.
I’ve been building my ibonds position for 8 years now, and to me they are an excellent long term holding to BND that will help me in retirement to dampen the volatility of my equities in my 80/20 allocation.
I think I'd rather just put money into an index fund.