I Bond, iBonds, i-Bonds or Series I bonds.
- BSexton1
- pbradford6
- Thruhiker
- pbradford6
- Katrina75
- Katrina75
- pjstack
- pbradford6
- pjstack
- pzoo
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» pbradford6 - Re: Legal to buy $60K per SS # in 2003
In response to message posted by Kirk wrote:==You can also continue to invest up to $30,000 (issue price) in paper I bonds and up to another $30,000 (issue price) in electronic I bonds in TreasuryDirect.:Kirk, are you sure that each SS# can buy $30,000 of paper I bonds and an additional $30,000 of TreasuryDirect I bonds for a total of $60,000? I agree after reading your IRS post that it sure sounds like a couple could then buy in total $120,00 each year!
I really appreciate your 101 site and have picked up some wonderful ideas. I intend to support you through your web site. Good Luck.
-- posted by pbradford6
» Thruhiker - Re: Fixed rate on I Bonds
In response to message posted by BSexton1:Theoretically, there is NO reason for the fixed portion to EVER change.
However, it doesn't work that way in practice. The rate has continued to change ever since I-Bonds were created. I've got some with fixed rates of 3.6% and 3.0%. The government changes it with no justification. My gut feeling is that the fixed rate is based upon how many Bonds they want to sell at that particular point in time.
-- posted by Thruhiker
» pbradford6 - Treasury Direct I Bonds
I purchased TreasuryDirect I bonds for the first time and learned the following.Unlike paper I bonds, you do not buy them in multiples, i.e. 10 bonds @ $500.00, The investor places an order of not less than 25$ nor more than $30,000 per year.
He can purchase these from several different accounts: cking, savings, brokerage, etc.
A couple can invest a total of $120,000 in I bonds this year!!!!!
When liquidating, the investor can stipulate any amount over $25.00 which will be deposited in an account you designate. This is very convenient IMO.
All in all it was very simple to place this transaction and is much better than a one year CD.
-- posted by pbradford6
» pjstack - I Bonds in an IRA.
There must be some miscommunication going on concerning the person who wants to put I Bonds in his/her IRA, so I'm going to ask a question.Are you really asking can you make a tax deductible contribution to your IRA and use it to buy I bonds?
I'm pretty sure the answer to that is "no".
Unless it's the deduction you're thinking of, I can't imagine any other reason to try and force I Bonds into an IRA because they are already tax deferred.
Phil S.
-- posted by pjstack
» pbradford6 - I bonds
There is a very interesting article on no-load inflation-indexed bond funds in the WSJ today. I have posted a small part of it concerning I bonds.Enjoy
One option is to buy Series I savings bonds. I bonds also provide a guaranteed return above inflation. But the bonds don't fluctuate in value and you don't have to pay income taxes on your earnings until you cash in your savings bonds.
If you buy I bonds today, however, I wouldn't plan on holding them for very long. Why not? If you go to www.treasurydirect.gov1, the Treasury Department is advertising a nominal yield on I bonds of 4.66%. But that yield is deceptively high, the result of a spurt in inflation earlier this year. The after-inflation yield is a miserable 1.1%.
What to do? You could hold off buying I bonds until Nov. 1, when the real yield is next reset, in the hope of getting a higher interest rate.
Alternatively, you could buy I bonds today, with the idea of swapping into inflation-indexed Treasury bonds or newer I bonds, if the yield on either becomes temptingly high. But be warned: You can't sell your savings bonds in the first year. Moreover, if you sell in the first five years, you will lose your last three months of interest.
-- posted by pbradford6
» pzoo - Re: I Bonds in an IRA.
No this is not a contribution, just the moving of IRA funds.I simply don't know where else I can get 4.66% interest rate (which I understand may go down some) and if at some time I want to do something else, cash the bond in and lose at most 3 months interest. If at some point, I don't like the interest rate, simply cash it in.
Money markets are paying less than 1%, bond funds NAV are going down, and I don't want to buy other corporate or government bonds and be either locked in or face principle fluctuation.
It seems to me just because something is tax advantaged, doesn't mean it doesn't make sense to hold in a deferred account. One of the great advantages of index fund is their tax benefits, but they still are good for deferred accounts.
I'm pretty new at this and just trying to learn good investment ideas. I appreciate being set straight.
-- posted by pzoo
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