201–210 of 512 posts
Quick question for HN people: Is there a instrument like a I bond that doesnt have a 10k limit?
Quick question for HN people: Is there a instrument like a I bond that doesnt have a 10k limit?
Earlier quoted context omitted.
It's not really golden. It' just i-bond inflation rates are high at the moment. The bond rates are set per 6 month window - but you get it relative to the purchase date. So if you buy before the last possible day before the rate change date you would get 7.12% (annualized) for 6 months then 9.6% (annualized) for 6 months. If you buy after the rate change, you would get 9.6% (annualized) followed by some yet to be det…
So the undetermined inflation rate for November 2022 has to go down to less than 7.12% (annualized) for that (the April case) to be a real "golden" opportunity? How likely is that?
Bear in mind there are some other technicalities with i-bonds. They are all documented on the treasury direct website:
- you have to hold it for a minimum of 12 months
- there are two parts of the bond a fixed rate (currently 0%) which is set for the lifetime of the bond, and the variable rate which is tried to inflation
- if you hold it for less than 5 years when you withdraw there will be a 3mo interest penalty
- you're limited to 10k purchased per SSN, you can get over 10k if you get your tax refund in i-bonds.
Regarding virtual keyboard, of course it would be better to use physical keys, but for reasons I don't understand they don't have a wide adoption that they deserve.
I'm missing the logic of the second 10k. He had already exceeded the limit. Why did he think that doing it again would change the outcome? It looks to me like he was going to get the extra $25 returned to him and have 10k in bonds. It's definitely vague though.
They thought they exceeded the limit by trying to send $10000+$25, so given that the $10000 was coming back, they expected that they're again $9975 under the limit.
Is there no way to purchase these bonds besides this website?
I-Bonds have rules. For example, you have to hold the bond for five years or you must pay back three months interest. I expect in about 12 months there will be a horde of people upset when they find that out.
The venn diagram of internet users that read about super specific financial products, decide to buy them, while not even understanding the need to keep an emergency fund such that a move like this leaves them with under $200 in their account seems to be growing. It seems to be a weird mix of wall street cosplay and financial ineptitude.
This move was calculated though. With incoming pay he knew that he'd be fine regardless. Sure, another emergency before the payback might suck but likely not catastrophic given the $10k coming back in a few weeks.
Earlier quoted context omitted.
That's an odd interpretation of the refund. The email clearly states, > "A refund of the excess purchase..." So they'd be refunded the excess, i.e. $25. Putting another $9,975 through just feels like being "too smart".
It’s bad English. The unambiguous terminology would be simply “excess” or “excess part of the purchase”. The term “excess purchase” sounds like the entire purchase is excess i.e. the adjective “excess” is modifying the noun “purchase” [the purchase was excess]. But they intended it as a noun adjunct where the noun “purchase” is modifying the noun “excess” [the excess was a purchase]. But this parse is not at all pref…
Alternative title: "I purposefully tried to make a transaction that breaks the rules, it didn't end well."