Nov 1, 2012 I-Bond Rate

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Nov 1, 2012 I-Bond Rate

Postby Sammy_M » Wed Oct 10, 2012 7:44 pm

It is pretty clear that the real/fixed rate for I-Bonds will remain at zero for 11/1/2012. Has anyone calculated a projection for the semiannual inflation rate? I am wondering whether to buy now or after the new rate takes effect.
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Re: Nov 1, 2012 I-Bond Rate

Postby sscritic » Wed Oct 10, 2012 7:56 pm

Can't anyone wait until next week? SSCola, maximum 401(k) contribution, I bond rate, etc., the questions don't stop.
All will be revealed in good time; it's just not good time yet.
September 2012 CPI data are scheduled to be released on October 16, 2012, at 8:30 A.M. Eastern Time.

You won't need a projection once you have the facts.
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Re: Nov 1, 2012 I-Bond Rate

Postby Mel Lindauer » Wed Oct 10, 2012 8:00 pm

FWIW, if I were buying, I'd be buying now. Don't see how the composite rate could possibly be higher come Nov. 1st.
Best Regards - Mel | | Semper Fi
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Re: Nov 1, 2012 I-Bond Rate

Postby shipwreck » Wed Oct 10, 2012 8:21 pm

Unless you think the fixed rate will be greater than 0, I would buy now and grab the current rate of 2.2% for 6 months.
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Re: Nov 1, 2012 I-Bond Rate

Postby surfer1 » Wed Oct 10, 2012 8:53 pm

shipwreck wrote:Unless you think the fixed rate will be greater than 0, I would buy now and grab the current rate of 2.2% for 6 months.


Exactly. Max it out. Then buy again, come January. Whatever the fed sets the rate to, it's bound to beat savings accounts and CDs. Unless of course, it goes negative.
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Re: Nov 1, 2012 I-Bond Rate

Postby Mel Lindauer » Wed Oct 10, 2012 9:34 pm

surfer1 wrote:
shipwreck wrote:Unless you think the fixed rate will be greater than 0, I would buy now and grab the current rate of 2.2% for 6 months.


Exactly. Max it out. Then buy again, come January. Whatever the fed sets the rate to, it's bound to beat savings accounts and CDs. Unless of course, it goes negative.


Keep in mind that the composite rate can never go below zero (negative).
Best Regards - Mel | | Semper Fi
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Re: Nov 1, 2012 I-Bond Rate

Postby Browser » Wed Oct 10, 2012 9:56 pm

Estimated SS COLA is about 1.3%, so you can go from there.
If we have data, let’s look at data. If all we have are opinions, let’s go with mine. – Jim Barksdale
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Re: Nov 1, 2012 I-Bond Rate

Postby sscritic » Wed Oct 10, 2012 10:03 pm

Browser wrote:Estimated SS COLA is about 1.3%, so you can go from there.

This is wrong; well it's not wrong that it's an estimate, but 25% is also an estimate. It's going to be wrong too. Back in July, the Congressional Budget Office had to come up with a number to score a bill in Congress. Knowing almost nothing about the actual numbers, they made up 1.3%.

I suggest you wait until Tuesday.

P.S. The thread from yesterday that stated the same thing has been removed.
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Re: Nov 1, 2012 I-Bond Rate

Postby Browser » Wed Oct 10, 2012 10:15 pm

sscritic wrote:
Browser wrote:Estimated SS COLA is about 1.3%, so you can go from there.

This is wrong; well it's not wrong that it's an estimate, but 25% is also an estimate. It's going to be wrong too. Back in July, the Congressional Budget Office had to come up with a number to score a bill in Congress. Knowing almost nothing about the actual numbers, they made up 1.3%.

I suggest you wait until Tuesday.

P.S. The thread from yesterday that stated the same thing has been removed.

Yeh, I know it was removed because I posted it. Censorship run wild...
If we have data, let’s look at data. If all we have are opinions, let’s go with mine. – Jim Barksdale
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Re: Nov 1, 2012 I-Bond Rate

Postby Phineas J. Whoopee » Thu Oct 11, 2012 2:19 pm

surfer1 wrote:
shipwreck wrote:Unless you think the fixed rate will be greater than 0, I would buy now and grab the current rate of 2.2% for 6 months.


Exactly. Max it out. Then buy again, come January. Whatever the fed sets the rate to, it's bound to beat savings accounts and CDs. Unless of course, it goes negative.

(emphasis added)

Hi surfer1,

I know I'm just being super picky, but the fixed portion of the rate is set by the Treasury Department, not the Fed. :D

PJW
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