Series I Bonds in April/May 2018

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Series I Bonds in April/May 2018

Post by Clever_Username » Fri Apr 06, 2018 11:11 am

I cannot help but feel this is going to be a market timing temptation on my part, but I want to ask because I cannot convince myself that either solution is right.

I have yet to purchase my Series I Bonds for 2018. I will be purchasing $10,000 worth for the year, as I do every year. These are buy and hold investments for me; I don't plan to sell them for many years. I might end up holding them to maturity for that matter.

Is there some reason to believe the fixed rate will be significantly better in May, enough to warrant waiting for May to make the purchase? The interest on the money in my money market account between now and a May purchase is minimal (I've spent more on dinner some days) and I'll very likely hold the bond long enough that the three month interest waiting period won't be an issue.

I can't help but feel this is market timing, but it also doesn't feel to me like there is a market for these.
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Re: Series I Bonds in April/May 2018

Post by aristotelian » Fri Apr 06, 2018 11:13 am

I would wait. Inflation has been ticking up. I doubt it will be lower than the current 0.1%.

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Re: Series I Bonds in April/May 2018

Post by Amphian » Fri Apr 06, 2018 11:39 am

I'm considering buying in November/December, as I expect interest rates to rise further and I would plan to hold these long term. I'm trying to figure out what to do with the money in the meantime, and deciding if there are options I should take other than I Bonds for this money. (This will be my first purchase.)

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Re: Series I Bonds in April/May 2018

Post by welderwannabe » Fri Apr 06, 2018 11:42 am

Amphian wrote:
Fri Apr 06, 2018 11:39 am
I'm considering buying in November/December, as I expect interest rates to rise further and I would plan to hold these long term. I'm trying to figure out what to do with the money in the meantime, and deciding if there are options I should take other than I Bonds for this money. (This will be my first purchase.)
Buy 6 month TBILL.
I am not an investment professional, but I did stay at a Holiday Inn Express last night.

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Re: Series I Bonds in April/May 2018

Post by Marketman » Fri Apr 06, 2018 11:46 am

Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.

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Re: Series I Bonds in April/May 2018

Post by Clever_Username » Fri Apr 06, 2018 12:10 pm

Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Yeah, that was my concern. I certainly don't know much about bonds, definitely not more than the market.
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Re: Series I Bonds in April/May 2018

Post by Amphian » Fri Apr 06, 2018 12:32 pm

welderwannabe wrote:
Fri Apr 06, 2018 11:42 am
Buy 6 month TBILL.
Thanks - that's something I should look into. I haven't had any experience with buying specific securities before, so still going over all the options.

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Re: Series I Bonds in April/May 2018

Post by sport » Fri Apr 06, 2018 12:34 pm

Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Bond market expectations have nothing to do with I-bonds. The fixed rate is set arbitrarily by the Treasury Dept. The variable rate is determined by actual recent inflation.

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Re: Series I Bonds in April/May 2018

Post by lahob » Fri Apr 06, 2018 12:54 pm

Clever_Username wrote:
Fri Apr 06, 2018 11:11 am
Is there some reason to believe the fixed rate will be significantly better in May, enough to warrant waiting for May to make the purchase?
Shorter-term TIPS yields have gone up quite a bit in the past few months, so I think there's a decent chance they'll raise the fixed rate. The worst that can happen is that it goes down 10 basis points. I'd wait. You are right though that it won't make a huge difference either way.

They release the March inflation numbers next week. If there was signifcant deflation in March you could consider buying before the end of April. But since you plan to hold for the long term, the fixed rate is more important.

If this is "market timing" it's about the most benign form I can imagine.

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Re: Series I Bonds in April/May 2018

Post by folkher0 » Fri Apr 06, 2018 1:47 pm

Clever_Username wrote:
Fri Apr 06, 2018 12:10 pm
Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Yeah, that was my concern. I certainly don't know much about bonds, definitely not more than the market.
I don't think this is the right way to think about this. You can't really talk about market timing I bonds, because there is no "market" for I bonds. You can only buy them from treasury direct or through your federal income tax refund. Like other savings bonds (EE series) you can't sell them on the market, only redeem them from TD or a bank. Coupon rates (and thus yields) are set by the treasury based on a fixed component and an inflation adjusted component.

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Re: Series I Bonds in April/May 2018

Post by DaftInvestor » Fri Apr 06, 2018 3:03 pm

What is "significantly better" to you? The fixed rate is 0.1% currently - if the rate is doubled to 0.2% you will get a whopping extra $10 (plus compounding) yearly. On the other hand - they might decide to drop it back down to zero for whatever reason and you might be out $10. Both cases seem pretty insignificant - I would just get the money in now. Years ago I know the fixed rate was significant but since that hasn't been the case for years I don't see why they would suddenly decide now is the time to start paying out to new investors.

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Re: Series I Bonds in April/May 2018

Post by Darth Xanadu » Fri Apr 06, 2018 3:10 pm

aristotelian wrote:
Fri Apr 06, 2018 11:13 am
I would wait. Inflation has been ticking up. I doubt it will be lower than the current 0.1%.
I would wait as well. Daft Investor makes a valid point above but by the same argument it costs you virtually nothing to wait and see. You have all year to buy it.

As I understand it, buying at the very end of the month is the way to go as you get the full month's interest.
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Re: Series I Bonds in April/May 2018

Post by DaftInvestor » Fri Apr 06, 2018 3:15 pm

Darth Xanadu wrote:
Fri Apr 06, 2018 3:10 pm
aristotelian wrote:
Fri Apr 06, 2018 11:13 am
I would wait. Inflation has been ticking up. I doubt it will be lower than the current 0.1%.
I would wait as well. Daft Investor makes a valid point above but by the same argument it costs you virtually nothing to wait and see. You have all year to buy it.

As I understand it, buying at the very end of the month is the way to go as you get the full month's interest.
It might actually cost you more to wait since the current variable rate is 2.48% (so 2.58% total rate). If you wait until May and there is no change and then decide to wait November to see if there is a change then with the $10,000 sitting in a low interest savings account this entire time - even if the fixed-rate doubles - you will have lost out on the 2.48% rate for the months you were waiting and it will be years before you make that up at 0.1%.

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Re: Series I Bonds in April/May 2018

Post by Clever_Username » Fri Apr 06, 2018 3:33 pm

DaftInvestor wrote:
Fri Apr 06, 2018 3:15 pm
Darth Xanadu wrote:
Fri Apr 06, 2018 3:10 pm
aristotelian wrote:
Fri Apr 06, 2018 11:13 am
I would wait. Inflation has been ticking up. I doubt it will be lower than the current 0.1%.
I would wait as well. Daft Investor makes a valid point above but by the same argument it costs you virtually nothing to wait and see. You have all year to buy it.

As I understand it, buying at the very end of the month is the way to go as you get the full month's interest.
It might actually cost you more to wait since the current variable rate is 2.48% (so 2.58% total rate). If you wait until May and there is no change and then decide to wait November to see if there is a change then with the $10,000 sitting in a low interest savings account this entire time - even if the fixed-rate doubles - you will have lost out on the 2.48% rate for the months you were waiting and it will be years before you make that up at 0.1%.
This is a very good point.

At this point, I'm committed to buying either in May or April. Just a matter of which. But you are correct on this.
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Re: Series I Bonds in April/May 2018

Post by Marketman » Fri Apr 06, 2018 3:53 pm

folkher0 wrote:
Fri Apr 06, 2018 1:47 pm
Clever_Username wrote:
Fri Apr 06, 2018 12:10 pm
Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Yeah, that was my concern. I certainly don't know much about bonds, definitely not more than the market.
I don't think this is the right way to think about this. You can't really talk about market timing I bonds, because there is no "market" for I bonds. You can only buy them from treasury direct or through your federal income tax refund. Like other savings bonds (EE series) you can't sell them on the market, only redeem them from TD or a bank. Coupon rates (and thus yields) are set by the treasury based on a fixed component and an inflation adjusted component.
IMHO the Treasury Department looks at the market conditions for fixed income and sets the I Bond rates (the fixed part). If the Treasury is off even a tad nobody or everybody will buy them depending upon the direction they are off. If you are waiting of higher yields, that to me is market timing.

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Re: Series I Bonds in April/May 2018

Post by jpsc » Fri Apr 06, 2018 4:38 pm

The potential tariff for import goods, will probably cause CPI/Inflation to go up.

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Re: Series I Bonds in April/May 2018

Post by JBTX » Fri Apr 06, 2018 4:42 pm

sport wrote:
Fri Apr 06, 2018 12:34 pm
Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Bond market expectations have nothing to do with I-bonds. The fixed rate is set arbitrarily by the Treasury Dept. The variable rate is determined by actual recent inflation.
Exactly.

As interest rates are trending upward, and i think TIPS fixed rates have gone up a bit (not sure) I’d say there is better chance of going up vs down. So I would wait.

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Re: Series I Bonds in April/May 2018

Post by Marketman » Fri Apr 06, 2018 7:37 pm

JBTX wrote:
Fri Apr 06, 2018 4:42 pm
sport wrote:
Fri Apr 06, 2018 12:34 pm
Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Bond market expectations have nothing to do with I-bonds. The fixed rate is set arbitrarily by the Treasury Dept. The variable rate is determined by actual recent inflation.
Exactly.

As interest rates are trending upward, and i think TIPS fixed rates have gone up a bit (not sure) I’d say there is better chance of going up vs down. So I would wait.
I don't believe the fixed part is ARBITRARILY set by the Treasury. I believe they set it according to market rates taking into account the unique features of I Bonds. I.e., they set it according to supply and demand. If it's a bad deal nobody will buy them. If it's too good the Treasury will loose money. Also, if inflation is headed up the variable part will take care of that.

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Re: Series I Bonds in April/May 2018

Post by JBTX » Fri Apr 06, 2018 7:57 pm

Marketman wrote:
Fri Apr 06, 2018 7:37 pm
JBTX wrote:
Fri Apr 06, 2018 4:42 pm
sport wrote:
Fri Apr 06, 2018 12:34 pm
Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Bond market expectations have nothing to do with I-bonds. The fixed rate is set arbitrarily by the Treasury Dept. The variable rate is determined by actual recent inflation.
Exactly.

As interest rates are trending upward, and i think TIPS fixed rates have gone up a bit (not sure) I’d say there is better chance of going up vs down. So I would wait.
I don't believe the fixed part is ARBITRARILY set by the Treasury. I believe they set it according to market rates taking into account the unique features of I Bonds. I.e., they set it according to supply and demand. If it's a bad deal nobody will buy them. If it's too good the Treasury will loose money. Also, if inflation is headed up the variable part will take care of that.
Yes, but short term interest rates are set by the Fed. It isn’t arbitrary, but it isn’t necessarily market driven either. It is based upon their economic goals. The ibonds fixed rate is likely highly correlated to short term fed rate less rate of inflation.

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Re: Series I Bonds in April/May 2018

Post by Marketman » Fri Apr 06, 2018 8:19 pm

JBTX wrote:
Fri Apr 06, 2018 7:57 pm
The ibonds fixed rate is likely highly correlated to short term fed rate less rate of inflation.
I agree.

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Re: Series I Bonds in April/May 2018

Post by BlackcatCA » Sat Apr 07, 2018 9:27 am

If you use ibond as an extension of tax-deferred space, as I do, then you should get the money in sooner rather than later. Whatever the next rate may be, your money will get it for 6 months. I seem to remember reading that the current ibond yield is equivalent to 2.58% tax deferred, which is very competitive relative to other available rates in taxable. As noted by others, the amount of potential "missed" interest is small given its only 10k.

A more interesting choice would be whether to put the 10k into total market instead....

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Re: Series I Bonds in April/May 2018

Post by oldcomputerguy » Sat Apr 07, 2018 9:32 am

BlackcatCA wrote:
Sat Apr 07, 2018 9:27 am
A more interesting choice would be whether to put the 10k into total market instead....
I think that, like any other asset allocation decision, it would depend at least in part on one's own risk tolerance and investment timeframe. If I were looking to invest in retirement and had lower risk tolerance, I would probably look more closely at I bonds, especially given their function as a counter to the drag of inflation. On the other hand, if I were thirty years away from retirement, I'd certainly put it in a total stock market index fund.
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Re: Series I Bonds in April/May 2018

Post by Clever_Username » Sat Apr 07, 2018 10:30 am

BlackcatCA wrote:
Sat Apr 07, 2018 9:27 am
If you use ibond as an extension of tax-deferred space, as I do, then you should get the money in sooner rather than later. Whatever the next rate may be, your money will get it for 6 months. I seem to remember reading that the current ibond yield is equivalent to 2.58% tax deferred, which is very competitive relative to other available rates in taxable. As noted by others, the amount of potential "missed" interest is small given its only 10k.

A more interesting choice would be whether to put the 10k into total market instead....
Yes, the iBonds are an extension of my tax-deferred space. There isn't much of a choice if being in total market or not as I look at my total allocation, although it might trigger rebalancing in tax-advantaged space.
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Re: Series I Bonds in April/May 2018

Post by BogleMelon » Sat Apr 07, 2018 10:32 am

I Bond Investors: Here's Your Buying Guide For 2018

Wait at least until the March inflation number is announced on April 11.

You then enter a three-week 'limbo period' when you can decide to buy before or after the May 1 rate reset.

Don't bother buying I Bonds as a short-term investment. You can do better with one-year, best-in-nation bank CDs.
Full Article:
https://seekingalpha.com/article/413617 ... guide-2018
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Re: Series I Bonds in April/May 2018

Post by folkher0 » Sat Apr 07, 2018 12:20 pm

Marketman wrote:
Fri Apr 06, 2018 3:53 pm
folkher0 wrote:
Fri Apr 06, 2018 1:47 pm
Clever_Username wrote:
Fri Apr 06, 2018 12:10 pm
Marketman wrote:
Fri Apr 06, 2018 11:46 am
Current rate expectations are already factored into current yields. If everyone thinks rates are headed up then current rates already reflect that. Unless you know something that the bond market does not know, I would just buy ASAP and start earning interest. Also, you start chipping away at the 5 year holding period if you ever need the money.
Yeah, that was my concern. I certainly don't know much about bonds, definitely not more than the market.
I don't think this is the right way to think about this. You can't really talk about market timing I bonds, because there is no "market" for I bonds. You can only buy them from treasury direct or through your federal income tax refund. Like other savings bonds (EE series) you can't sell them on the market, only redeem them from TD or a bank. Coupon rates (and thus yields) are set by the treasury based on a fixed component and an inflation adjusted component.
IMHO the Treasury Department looks at the market conditions for fixed income and sets the I Bond rates (the fixed part). If the Treasury is off even a tad nobody or everybody will buy them depending upon the direction they are off. If you are waiting of higher yields, that to me is market timing.
I guess you can think about it this way, but I don’t know how helpful it is. The current fixed component is 0.1%, a relatively tiny fraction of the total yield. Maybe it goes up and maybe it goes down, but it probably doesn’t go up or down by much between now and Dec. 31. You can only buy $10,000 a year. I just don’t think 0.1% of $10,000 means very much. They can and have set the fixed portion at 0% and people still buy them because of inflation protection, principal guarantee, tax deferral, use for higher education expenses, etc.

The characteristics of I bonds are appealing to many buyers no matter what the fixed component is.

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Re: Series I Bonds in April/May 2018

Post by Clever_Username » Sat Apr 07, 2018 1:17 pm

BogleMelon wrote:
Sat Apr 07, 2018 10:32 am
I Bond Investors: Here's Your Buying Guide For 2018

Wait at least until the March inflation number is announced on April 11.

You then enter a three-week 'limbo period' when you can decide to buy before or after the May 1 rate reset.

Don't bother buying I Bonds as a short-term investment. You can do better with one-year, best-in-nation bank CDs.
Full Article:
https://seekingalpha.com/article/413617 ... guide-2018
Thanks for that. I think I'll wait for April 11 and see what people here (BH in general, doesn't have to be this thread) and make a decision in those three weeks. Thanks!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Series I Bonds in April/May 2018

Post by Marketman » Sat Apr 07, 2018 1:20 pm

folkher0 wrote:
Sat Apr 07, 2018 12:20 pm
The characteristics of I bonds are appealing to many buyers no matter what the fixed component is.
I'm not sure I agree with that. In this day of razor thin after inflation margins, every basis point counts. I Bonds have to compete with TIPS as well.

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Re: Series I Bonds in April/May 2018

Post by dual » Sat Apr 07, 2018 1:27 pm

DaftInvestor wrote:
Fri Apr 06, 2018 3:15 pm
It might actually cost you more to wait since the current variable rate is 2.48% (so 2.58% total rate). If you wait until May and there is no change and then decide to wait November to see if there is a change then with the $10,000 sitting in a low interest savings account this entire time - even if the fixed-rate doubles - you will have lost out on the 2.48% rate for the months you were waiting and it will be years before you make that up at 0.1%.
The 6 month TBill rate is 1.91% so you do not lose much by waiting and might gain a higher real rate. Since you are going to hold for long term, I would wait.

Latest treasury securities interest rates http://www.treasury.gov/resource-center ... data=yield

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Re: Series I Bonds in April/May 2018

Post by Marketman » Sat Apr 07, 2018 1:35 pm

dual wrote:
Sat Apr 07, 2018 1:27 pm
DaftInvestor wrote:
Fri Apr 06, 2018 3:15 pm
It might actually cost you more to wait since the current variable rate is 2.48% (so 2.58% total rate). If you wait until May and there is no change and then decide to wait November to see if there is a change then with the $10,000 sitting in a low interest savings account this entire time - even if the fixed-rate doubles - you will have lost out on the 2.48% rate for the months you were waiting and it will be years before you make that up at 0.1%.
The 6 month TBill rate is 1.91% so you do not lose much by waiting and might gain a higher real rate. Since you are going to hold for long term, I would wait.

Latest treasury securities interest rates http://www.treasury.gov/resource-center ... data=yield
Market timing may or may not work. Another factor is the 5 year holding period. If you buy the bonds now you start to chip away at that.

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Re: Series I Bonds in April/May 2018

Post by bligh » Tue Apr 10, 2018 1:14 pm

When do the May 2018 rates get announced? I seem to remember that they are announced a few days in advance. I finally have the funds to make my I Bond Purchase for this year.. but I can obviously wait that one extra month an do it at the end of May if the fixed rate goes up to 0.2% or more (one can always hope).

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Re: Series I Bonds in April/May 2018

Post by Mel Lindauer » Tue Apr 10, 2018 1:18 pm

bligh wrote:
Tue Apr 10, 2018 1:14 pm
When do the May 2018 rates get announced? I seem to remember that they are announced a few days in advance. I finally have the funds to make my I Bond Purchase for this year.. but I can obviously wait that one extra month an do it at the end of May if the fixed rate goes up to 0.2% or more (one can always hope).
The May and October rates are announced in May and November. While the inflation component is known before hand, the fixed rate component is not.
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Re: Series I Bonds in April/May 2018

Post by sport » Tue Apr 10, 2018 1:24 pm

Mel Lindauer wrote:
Tue Apr 10, 2018 1:18 pm
bligh wrote:
Tue Apr 10, 2018 1:14 pm
When do the May 2018 rates get announced? I seem to remember that they are announced a few days in advance. I finally have the funds to make my I Bond Purchase for this year.. but I can obviously wait that one extra month an do it at the end of May if the fixed rate goes up to 0.2% or more (one can always hope).
The May and October rates are announced in May and October. While the inflation component is known before hand, the fixed rate component is not.
I think it is May and November. :happy

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Re: Series I Bonds in April/May 2018

Post by bligh » Tue Apr 10, 2018 1:35 pm

Mel Lindauer wrote:
Tue Apr 10, 2018 1:18 pm
bligh wrote:
Tue Apr 10, 2018 1:14 pm
When do the May 2018 rates get announced? I seem to remember that they are announced a few days in advance. I finally have the funds to make my I Bond Purchase for this year.. but I can obviously wait that one extra month an do it at the end of May if the fixed rate goes up to 0.2% or more (one can always hope).
The May and October rates are announced in May and October. While the inflation component is known before hand, the fixed rate component is not.
Thanks Mel!

.. I guess I will just roll the dice and take the plunge in May then. :happy

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Re: Series I Bonds in April/May 2018

Post by Mel Lindauer » Tue Apr 10, 2018 2:22 pm

sport wrote:
Tue Apr 10, 2018 1:24 pm
Mel Lindauer wrote:
Tue Apr 10, 2018 1:18 pm
bligh wrote:
Tue Apr 10, 2018 1:14 pm
When do the May 2018 rates get announced? I seem to remember that they are announced a few days in advance. I finally have the funds to make my I Bond Purchase for this year.. but I can obviously wait that one extra month an do it at the end of May if the fixed rate goes up to 0.2% or more (one can always hope).
The May and October rates are announced in May and October. While the inflation component is known before hand, the fixed rate component is not.
I think it is May and November. :happy
Yep, you're right. :oops: Thanks for catching that. I corrected my post.

After all these years writing about them and hyping I Bonds, you'd think I'd have those two months indelibly inscribed in my brain.
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Re: Series I Bonds in April/May 2018

Post by Mel Lindauer » Tue Apr 10, 2018 2:23 pm

bligh wrote:
Tue Apr 10, 2018 1:35 pm
Mel Lindauer wrote:
Tue Apr 10, 2018 1:18 pm
bligh wrote:
Tue Apr 10, 2018 1:14 pm
When do the May 2018 rates get announced? I seem to remember that they are announced a few days in advance. I finally have the funds to make my I Bond Purchase for this year.. but I can obviously wait that one extra month an do it at the end of May if the fixed rate goes up to 0.2% or more (one can always hope).
The May and October rates are announced in May and October. While the inflation component is known before hand, the fixed rate component is not.
Thanks Mel!

.. I guess I will just roll the dice and take the plunge in May then. :happy
You can always buy $5k now and another $5k in May. At least you'd be half-right.
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Re: Series I Bonds in April/May 2018

Post by Clever_Username » Wed Apr 11, 2018 11:51 am

Mel Lindauer wrote:
Tue Apr 10, 2018 2:23 pm
You can always buy $5k now and another $5k in May. At least you'd be half-right.
I have been debating doing this as I have been agonizing the decision quite a bit and don't quite know how to interpret today's numbers for a prediction of the May rates. Is this a course of action you'd suggest to me also?
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Series I Bonds in April/May 2018

Post by Chuck » Wed Apr 11, 2018 1:31 pm

I'd suggest you don't agonize over something so insignificant. Flip a coin if it helps. There's no wrong choice.

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Re: Series I Bonds in April/May 2018

Post by Clever_Username » Fri Apr 27, 2018 11:08 am

Ultimately, I decided I can't agonize over this; I bought $5000 today and I will buy $5000 in May. In the coming months, I will reflect and adjust my written IPS to exactly how I plan to fund my Series I Bond purchases (and all post-403(b) investments, for that matter) so I can get out of my head about it.

Thank you to everyone who offered their feedback. I do appreciate it.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ | | I survived my first downturn and all I got was this signature line.

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Re: Series I Bonds in April/May 2018

Post by drummerboy » Tue May 01, 2018 8:18 am

Are the new I-Bonds rates announced today (May 1st)?

I'm assuming that it will be greater than the last 6 month period. I also noticed their site will be down for maintenance tomorrow morning (the 2nd).

When do they announce new rates?

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Re: Series I Bonds in April/May 2018

Post by TdF fan » Tue May 01, 2018 8:51 am

It should be today around 10 am.

https://www.treasurydirect.gov/news/news.htm

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Re: Series I Bonds in April/May 2018

Post by TdF fan » Tue May 01, 2018 9:03 am

Fixed rated 0.3%

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Re: Series I Bonds in April/May 2018

Post by StaTiK » Tue May 01, 2018 9:03 am

Edit: deleted post
Last edited by StaTiK on Tue May 01, 2018 9:13 am, edited 1 time in total.
"M is the amount of money you need to retire, Y is how many years you'll live, R is your future rate of return, and I is the future rate of inflation. Y, R, and I are unknown. Solve for M."

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Re: Series I Bonds in April/May 2018

Post by llama » Tue May 01, 2018 9:04 am

The new I Bond fixed rate is 0.30%. (Composite rate is 2.52%)

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Re: Series I Bonds in April/May 2018

Post by motorcyclesarecool » Tue May 01, 2018 9:11 am

Are we in “back up the truck” territory yet?
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

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Re: Series I Bonds in April/May 2018

Post by samsoes » Tue May 01, 2018 9:18 am

motorcyclesarecool wrote:
Tue May 01, 2018 9:11 am
Are we in “back up the truck” territory yet?
What does that mean?
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Re: Series I Bonds in April/May 2018

Post by motorcyclesarecool » Tue May 01, 2018 9:21 am

samsoes wrote:
Tue May 01, 2018 9:18 am
motorcyclesarecool wrote:
Tue May 01, 2018 9:11 am
Are we in “back up the truck” territory yet?
What does that mean?
viewtopic.php?f=10&t=64679&start=500
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

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Re: Series I Bonds in April/May 2018

Post by samsoes » Tue May 01, 2018 9:27 am

motorcyclesarecool wrote:
Tue May 01, 2018 9:21 am
samsoes wrote:
Tue May 01, 2018 9:18 am
motorcyclesarecool wrote:
Tue May 01, 2018 9:11 am
Are we in “back up the truck” territory yet?
What does that mean?
viewtopic.php?f=10&t=64679&start=500
Sorry, I have neither the time nor the energy to sift through a two year old thread which is 11 pages long to glean the answer.

Can you give a hint?
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)

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Re: Series I Bonds in April/May 2018

Post by motorcyclesarecool » Tue May 01, 2018 9:29 am

samsoes wrote:
Tue May 01, 2018 9:27 am
motorcyclesarecool wrote:
Tue May 01, 2018 9:21 am
samsoes wrote:
Tue May 01, 2018 9:18 am
motorcyclesarecool wrote:
Tue May 01, 2018 9:11 am
Are we in “back up the truck” territory yet?
What does that mean?
viewtopic.php?f=10&t=64679&start=500
Sorry, I have neither the time nor the energy to sift through a two year old thread which is 11 pages long to glean the answer.

Can you give a hint?
The title of the linked thread is my hint.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

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Re: Series I Bonds in April/May 2018

Post by johan851 » Tue May 01, 2018 9:31 am

motorcyclesarecool wrote:
Tue May 01, 2018 9:11 am
Are we in “back up the truck” territory yet?
With a $10K/person limit, the truck is a little smaller for some. But it's a higher rate than recent years, so if you don't max out it may make sense to replace past purchases with new ones. Make sure you do the math on penalties and expected holding periods for bonds from the last five years.

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Re: Series I Bonds in April/May 2018

Post by samsoes » Tue May 01, 2018 9:41 am

motorcyclesarecool wrote:
Tue May 01, 2018 9:29 am
samsoes wrote:
Tue May 01, 2018 9:27 am
motorcyclesarecool wrote:
Tue May 01, 2018 9:21 am
samsoes wrote:
Tue May 01, 2018 9:18 am
motorcyclesarecool wrote:
Tue May 01, 2018 9:11 am
Are we in “back up the truck” territory yet?
What does that mean?
viewtopic.php?f=10&t=64679&start=500
Sorry, I have neither the time nor the energy to sift through a two year old thread which is 11 pages long to glean the answer.

Can you give a hint?
The title of the linked thread is my hint.
Forget about it. Sorry I asked.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)

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