Series I Bond Strategy for Y2023

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Kookaburra
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Series I Bond Strategy for Y2023

Post by Kookaburra »

I bought my first Series I Bond this year, to the tune of $10K back in April. I would like to buy $10K each year and build up a position that will complement TIPS as part of inflation protection a few decades down the road in retirement.

Looking ahead to next year. Given my goals above, what is the best strategy for my purchase in 2023 to maximize long term return?

Do I…

1. Buy all 10K in January to get the fixed rate of 0.4% and start the clock on the inflation component.

2. Wait until May 1 with the hope of a higher fixed rate, but risk a lower inflation component then?

3. Wait until November 1 with the hope of a higher fixed rate?

4. Split the contributions to different dates above?

5. Something other?
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ApeAttack
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Re: Series I Bond Strategy for Y2023

Post by ApeAttack »

We don't know the future fixed rate. 0.4% is generous looking at previous years, plus the high variable rate is good now (and likely will decline in May). If I had 10k to spend next year, I would get I-Bonds in January.
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Mel Lindauer
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Re: Series I Bond Strategy for Y2023

Post by Mel Lindauer »

Kookaburra wrote: Wed Nov 23, 2022 1:03 am I bought my first Series I Bond this year, to the tune of $10K back in April. I would like to buy $10K each year and build up a position that will complement TIPS as part of inflation protection a few decades down the road in retirement.

Looking ahead to next year. Given my goals above, what is the best strategy for my purchase in 2023 to maximize long term return?

Do I…

1. Buy all 10K in January to get the fixed rate of 0.4% and start the clock on the inflation component.

2. Wait until May 1 with the hope of a higher fixed rate, but risk a lower inflation component then?

3. Wait until November 1 with the hope of a higher fixed rate?

4. Split the contributions to different dates above?

5. Something other?
When you should purchase your I Bonds depends on how much you like to gamble on an unknown outcome vs what you know now.

I think holding both I Bonds and TIPS is a good combination. Having the I Bonds means you can redeem them, if needed, after one year without any loss of principle. That could allow you to hold your TIPS to maturity and not risk having to sell them when they're down. Nice inflation protection combination.
Best Regards - Mel | | Semper Fi
Jeep512
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Re: Series I Bond Strategy for Y2023

Post by Jeep512 »

Kookaburra wrote: Wed Nov 23, 2022 1:03 am I bought my first Series I Bond this year, to the tune of $10K back in April. I would like to buy $10K each year and build up a position that will complement TIPS as part of inflation protection a few decades down the road in retirement.

Looking ahead to next year. Given my goals above, what is the best strategy for my purchase in 2023 to maximize long term return?

Do I…

1. Buy all 10K in January to get the fixed rate of 0.4% and start the clock on the inflation component.

2. Wait until May 1 with the hope of a higher fixed rate, but risk a lower inflation component then?

3. Wait until November 1 with the hope of a higher fixed rate?

4. Split the contributions to different dates above?

5. Something other?
Timely question, as I had exactly the same thoughts.

Doing a $5k/$5k split on Jan 1 and May 1 would be a sound strategy.

There will be a lot of inflation news that comes out between Jan 1 and Apr 30th, so you could also try to read the tea leaves. And then buy at the end of April if inflation appears to be going down a bunch.

The 0.4% fixed led me to believe that $10k on Jan 1 was the best strategy for me. It's simple. I take care of it in early January, and don't have to worry about it again in 2023.
WillRetire
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Re: Series I Bond Strategy for Y2023

Post by WillRetire »

If you knew now what the fixed component will be May 2023 - Oct 2023, you could decide between buying in January vs May.

The current 0.4% fixed component suggests buying in January 2023. The fixed component lasts for the life of the I-Bond. For most new I-Bond issues, the fixed component is 0%.

If there is an attractive fixed component Nov 2023 - April 2024, you'll get a chance to buy those in January 2024 even if you've already maxed out your purchase for 2023.

The variable component changes every 6 months, so don't time your purchase based on that.
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Kookaburra
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Re: Series I Bond Strategy for Y2023

Post by Kookaburra »

Thanks for the great replies. Regardless of whether I purchase in January or late April, I’ll get the 0.4% fixed rate and 6 months of the current inflation rate, correct?
WillRetire
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Re: Series I Bond Strategy for Y2023

Post by WillRetire »

Kookaburra wrote: Wed Nov 23, 2022 10:50 am Thanks for the great replies. Regardless of whether I purchase in January or late April, I’ll get the 0.4% fixed rate and 6 months of the current inflation rate, correct?
Correct. You'll get the current rate for 6 months even if you buy late April 2023. After that, it will reset to a new variable rate + 0.4%
https://treasurydirect.gov/savings-bond ... est-rates/
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Re: Series I Bond Strategy for Y2023

Post by goodenyou »

I will buy $10k for my wife and $10k for myself in January as I have done for many years. We have a few hundred k in I-Bonds.
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AnnetteLouisan
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Re: Series I Bond Strategy for Y2023

Post by AnnetteLouisan »

I’m just buying 10k in January.
Triple digit golfer
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Re: Series I Bond Strategy for Y2023

Post by Triple digit golfer »

AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
Same. I'm not a market timer, so no reason to split hairs here and try to be. I Bonds are part of my 20% bonds/cash allocation. I don't like selling Total Bond to buy them because I feel like I'm selling low, but I'll probably bite the bullet and do it because selling low is not relevant. What's relevant is what will perform better going forward and nobody really knows. I'd guess I Bonds will outperform Total Bond in 2023, but that's not why I'm buying.
dcabler
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Re: Series I Bond Strategy for Y2023

Post by dcabler »

Will do what I've been doing for the last 6 years. On Jan 1 we will each buy $10K in I bonds and, later, with our Tax refund we will purchase another $5K.

Cheers.
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telemark
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Re: Series I Bond Strategy for Y2023

Post by telemark »

I plan to buy in January. I have the money, the value of inflation protection is more evident than it used to be, and I have no ability to predict the next fixed component, so see no point in waiting.
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Re: Series I Bond Strategy for Y2023

Post by SnowBog »

dcabler wrote: Wed Nov 23, 2022 11:05 pm Will do what I've been doing for the last 6 years. On Jan 1 we will each buy $10K in I bonds and, later, with our Tax refund we will purchase another $5K.

Cheers.
+1 Exactly what we do.
calwatch
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Re: Series I Bond Strategy for Y2023

Post by calwatch »

I think I will buy in April. My HELOC rate is 5.99%, probably will go up at least another 1%, and I would rather pay that down further, and see where rates might go for May-October. I don't think I would roll the dice on the fixed rate going higher, though, so I would buy to lock the fixed rate even if my HELOC rate were in the 7's.
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Re: Series I Bond Strategy for Y2023

Post by anon_investor »

I plan to buy my I Bond allotment before May, the current variable rate and fixed rate seem good to me.
WillRetire
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Re: Series I Bond Strategy for Y2023

Post by WillRetire »

If you have a choice, buy when the fixed component > 0%. It's tempting to buy when the variable portion is high, but that will reset twice a year. The fixed component stays the same for the life of the bond.
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anon_investor
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Re: Series I Bond Strategy for Y2023

Post by anon_investor »

WillRetire wrote: Thu Nov 24, 2022 10:11 am If you have a choice, buy when the fixed component > 0%. It's tempting to buy when the variable portion is high, but that will reset twice a year. The fixed component stays the same for the life of the bond.
Which us why buying before May makes sense since the fixed rate is guaranteed to be 0.4% until then.
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Re: Series I Bond Strategy for Y2023

Post by WestCoastPhan »

Still weighing what to do. We have $20k to deliver Jan 2023, and another $20k to deliver Jan 2024. Do we want to buy in April 2023 for delivery Jan 2025? Maybe. If inflation looks like it's starting to drop significantly next year, we may grab the known 12-month yield in April -- in that scenario I bonds could have a significant real return in the first year.
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Re: Series I Bond Strategy for Y2023

Post by pesteele »

Treasury Direct has a straight forward process for automatic monthly investments. Set and forget for $833.33 each month. Over-withhold and pick up another $5k in a paper bond at tax time. One of the virtues of I Bonds is simplicity - don't overthink this.
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Re: Series I Bond Strategy for Y2023

Post by bowtie »

The only reason people are saying ‘Jan.’ Instead of ‘now/December’ is I assume b/c they’ve already maxed out the 10K for this year? I was wondering why each person said January. The rates won’t change until the end of April 2023.
In my own case I only did 5K this year for I bonds so technically I could buy another 5K if I wanted to do so at the present (November 1st) rate.
However, I might get something else entirely. I was looking at Treasuries on the secondary market and it seemed that the notes and bills were a bit higher interest last week than they are this week.
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Re: Series I Bond Strategy for Y2023

Post by exodusNH »

bowtie wrote: Thu Nov 24, 2022 11:29 pm The only reason people are saying ‘Jan.’ Instead of ‘now/December’ is I assume b/c they’ve already maxed out the 10K for this year? I was wondering why each person said January. The rates won’t change until the end of April 2023.
Yes. And if you contribute by the end of January, you earn 6.48% APR on top of the fixed rate. There's nothing of equivalent safety paying that amount.
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Re: Series I Bond Strategy for Y2023

Post by RamblinDoc »

I plan to buy more in January. This is what we’ve done for several years.

I’ve never purchased the extra $5k in tax refunds though. How is the date of this money calculated? (This answer could affect the fix and or variable rates). For example, is the date on this bond when I receive it, or when the IRS receives my request and processed my taxes? Do s it automatically link to my TD account, or do I have to associate this?
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Re: Series I Bond Strategy for Y2023

Post by dcabler »

bowtie wrote: Thu Nov 24, 2022 11:29 pm The only reason people are saying ‘Jan.’ Instead of ‘now/December’ is I assume b/c they’ve already maxed out the 10K for this year? I was wondering why each person said January. The rates won’t change until the end of April 2023.
In my own case I only did 5K this year for I bonds so technically I could buy another 5K if I wanted to do so at the present (November 1st) rate.
However, I might get something else entirely. I was looking at Treasuries on the secondary market and it seemed that the notes and bills were a bit higher interest last week than they are this week.
For us, it's January because it's always January when we do it. And that means we've already maxed out this year's. Some of us just like to start our new year with a few financially related items to tick off our check list. Nothing more.

Cheers.
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Re: Series I Bond Strategy for Y2023

Post by samsoes »

RamblinDoc wrote: Fri Nov 25, 2022 1:35 am I plan to buy more in January. This is what we’ve done for several years.

I’ve never purchased the extra $5k in tax refunds though. How is the date of this money calculated? (This answer could affect the fix and or variable rates). For example, is the date on this bond when I receive it, or when the IRS receives my request and processed my taxes? Do s it automatically link to my TD account, or do I have to associate this?
The issue date on the paper bonds when Treasury receives your bond order from the IRS, which happens at the time the cash part of your refumd is generated and deposited. The bonds are received by you a week or two alter.
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Doc7
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Re: Series I Bond Strategy for Y2023

Post by Doc7 »

bowtie wrote: Thu Nov 24, 2022 11:29 pm The only reason people are saying ‘Jan.’ Instead of ‘now/December’ is I assume b/c they’ve already maxed out the 10K for this year? I was wondering why each person said January. The rates won’t change until the end of April 2023.
In my own case I only did 5K this year for I bonds so technically I could buy another 5K if I wanted to do so at the present (November 1st) rate.
However, I might get something else entirely. I was looking at Treasuries on the secondary market and it seemed that the notes and bills were a bit higher interest last week than they are this week.

Subject line says “2023”, in which January is the earliest moment.
aristotelian
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Re: Series I Bond Strategy for Y2023

Post by aristotelian »

Triple digit golfer wrote: Wed Nov 23, 2022 7:18 pm
AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
Same. I'm not a market timer, so no reason to split hairs here and try to be. I Bonds are part of my 20% bonds/cash allocation. I don't like selling Total Bond to buy them because I feel like I'm selling low, but I'll probably bite the bullet and do it because selling low is not relevant. What's relevant is what will perform better going forward and nobody really knows. I'd guess I Bonds will outperform Total Bond in 2023, but that's not why I'm buying.
You are selling low. As rates rise your bonds lose value. The only way to get that value back is to hold through the duration. I Bonds do not have a higher expected return going forward. For one thing the current real rate is lower than TIPS currently. The variable rate is unknown but inflation appears to be leveling off. You could certainly come out worse by switching to I Bonds right now.

If not buying for timing reasons, why are you switching now? I bonds should be replacing cash IMO.
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Re: Series I Bond Strategy for Y2023

Post by evelynmanley »

RamblinDoc wrote: Fri Nov 25, 2022 1:35 am I plan to buy more in January. This is what we’ve done for several years.

I’ve never purchased the extra $5k in tax refunds though. How is the date of this money calculated? (This answer could affect the fix and or variable rates). For example, is the date on this bond when I receive it, or when the IRS receives my request and processed my taxes? Do s it automatically link to my TD account, or do I have to associate this?
Harry Sit's article may be helpful:

https://thefinancebuff.com/overpay-taxe ... -tips.html

A recent thread:
viewtopic.php?p=6978472#p6978472
Hola
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Re: Series I Bond Strategy for Y2023

Post by Hola »

pesteele wrote: Thu Nov 24, 2022 12:44 pm Treasury Direct has a straight forward process for automatic monthly investments. Set and forget for $833.33 each month. Over-withhold and pick up another $5k in a paper bond at tax time. One of the virtues of I Bonds is simplicity - don't overthink this.
How does this auto buy mechanism work? Does the bonds show up as 12 x 833 bonds each that have to be managed separately? Is it hard to manage ownership/beneficiary details as compared to buying 1 x t10k Bond?
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anon_investor
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Re: Series I Bond Strategy for Y2023

Post by anon_investor »

bowtie wrote: Thu Nov 24, 2022 11:29 pm The only reason people are saying ‘Jan.’ Instead of ‘now/December’ is I assume b/c they’ve already maxed out the 10K for this year? I was wondering why each person said January. The rates won’t change until the end of April 2023.
In my own case I only did 5K this year for I bonds so technically I could buy another 5K if I wanted to do so at the present (November 1st) rate.
However, I might get something else entirely. I was looking at Treasuries on the secondary market and it seemed that the notes and bills were a bit higher interest last week than they are this week.
If someone has $ now meant for I Bonds, buying in January vs April makes sense since there is no safe alternative offering 6%+, so what else would they do with that money for 3-4 months?
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HueyLD
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Re: Series I Bond Strategy for Y2023

Post by HueyLD »

Hola wrote: Fri Nov 25, 2022 8:26 am
pesteele wrote: Thu Nov 24, 2022 12:44 pm Treasury Direct has a straight forward process for automatic monthly investments. Set and forget for $833.33 each month. Over-withhold and pick up another $5k in a paper bond at tax time. One of the virtues of I Bonds is simplicity - don't overthink this.
How does this auto buy mechanism work? Does the bonds show up as 12 x 833 bonds each that have to be managed separately? Is it hard to manage ownership/beneficiary details as compared to buying 1 x t10k Bond?
You want as few bonds as possible because each lot has to be managed separately.

Just keep it simple unless you prefer complexity.
fundseeker
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Re: Series I Bond Strategy for Y2023

Post by fundseeker »

WestCoastPhan wrote: Thu Nov 24, 2022 12:03 pm Still weighing what to do. We have $20k to deliver Jan 2023, and another $20k to deliver Jan 2024. Do we want to buy in April 2023 for delivery Jan 2025? Maybe. If inflation looks like it's starting to drop significantly next year, we may grab the known 12-month yield in April -- in that scenario I bonds could have a significant real return in the first year.
Just FYI, you are NOT REQUIRED to deliver any in 2023. Once you do deliver, that amount counts again the $10k max for that year. Therefore, if you like the current rate, you may want to purchase new bonds in early 2023, and delay delivery of existing gifts until 2024 and beyond. My source for this is the financebuff.com:

"The principal amount of delivered gifts counts toward the $10,000 annual purchase limit of the recipient in the year of delivery. You can still buy gifts for others even if you already bought the maximum this year for yourself.

"You can buy a maximum of $10,000 for any recipient in one purchase but there’s no limit on how many recipients you buy for or how many times you can buy for the same recipient in any calendar year. If you’d like, you can buy $10,000 worth of I Bonds for each of your 20 family members or you can make five separate purchases of $10,000 each for the same family member, all in the same calendar year.

'If the recipient already received $10,000 in principal amount as gifts this year, buying additional I Bonds on their own will put them over their annual purchase limit. They’ll have to wait until they’re not receiving the maximum gifts."
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Re: Series I Bond Strategy for Y2023

Post by curiouskitty »

How is the fixed rate set? Does some entity choose it arbitrarily based on their economic expectations or does it reflect some data that could be examine for clues? My sense is the former so probably just buy January 1 and forget about it. Otherwise split 50%/50% across the two rates for the year if you think you might get a higher rate
RamblinDoc
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Re: Series I Bond Strategy for Y2023

Post by RamblinDoc »

samsoes wrote: Fri Nov 25, 2022 6:06 am
RamblinDoc wrote: Fri Nov 25, 2022 1:35 am I plan to buy more in January. This is what we’ve done for several years.

I’ve never purchased the extra $5k in tax refunds though. How is the date of this money calculated? (This answer could affect the fix and or variable rates). For example, is the date on this bond when I receive it, or when the IRS receives my request and processed my taxes? Do s it automatically link to my TD account, or do I have to associate this?

The issue date on the paper bonds when Treasury receives your bond order from the IRS, which happens at the time the cash part of your refumd is generated and deposited. The bonds are received by you a week or two alter.

Thank you.
evelynmanley
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Re: Series I Bond Strategy for Y2023

Post by evelynmanley »

curiouskitty wrote: Fri Nov 25, 2022 10:27 am How is the fixed rate set? Does some entity choose it arbitrarily based on their economic expectations or does it reflect some data that could be examine for clues? My sense is the former so probably just buy January 1 and forget about it. Otherwise split 50%/50% across the two rates for the year if you think you might get a higher rate
https://tipswatch.com/2022/04/24/lets-h ... -equation/

viewtopic.php?t=117959
YoungSisyphus
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Re: Series I Bond Strategy for Y2023

Post by YoungSisyphus »

Worrying about future rates seems like needless timing (in my mind) for a chance at a marginal difference in interest earned. I plan to buy all iBonds in January and start the one year clock sooner rather than later. There's nothing else paying the variable + fixed rate that I can get with iBonds currently (except for maybe TIPS) and so I'd rather just set it and forget it. If for some reason I don't like my 2023 purchase in retrospect, I can sell January 1 2024 and re-invest.
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Re: Series I Bond Strategy for Y2023

Post by bowtie »

My intent was to clarify buying in January vs now, not vs April, and yes as was pointed out it does say 2023 is the subject too.
Thank you.
BT
macheta
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Re: Series I Bond Strategy for Y2023

Post by macheta »

Pausing my purchasing right now and holding what I got. Feels safe to have this in my bond allocation.
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Re: Series I Bond Strategy for Y2023

Post by RamblinDoc »

evelynmanley wrote: Fri Nov 25, 2022 7:59 am
RamblinDoc wrote: Fri Nov 25, 2022 1:35 am I plan to buy more in January. This is what we’ve done for several years.

I’ve never purchased the extra $5k in tax refunds though. How is the date of this money calculated? (This answer could affect the fix and or variable rates). For example, is the date on this bond when I receive it, or when the IRS receives my request and processed my taxes? Do s it automatically link to my TD account, or do I have to associate this?
Harry Sit's article may be helpful:

https://thefinancebuff.com/overpay-taxe ... -tips.html

This is a great source- thank you.
evelynmanley
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Re: Series I Bond Strategy for Y2023

Post by evelynmanley »

:sharebeer you're welcome! The archives of his articles about I-Bonds are a wealth of information: https://thefinancebuff.com/tag/i-bonds
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Re: Series I Bond Strategy for Y2023

Post by Mr. Potter »

My only decision is do I deliver the Ibond gifts I bought in October of 2022 or do I hold them for now and buy additional Ibonds for 2023. Either way I’ll do one of the other in January.
fundseeker
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Re: Series I Bond Strategy for Y2023

Post by fundseeker »

Oak&Elm wrote: Sat Nov 26, 2022 8:15 am My only decision is do I deliver the Ibond gifts I bought in October of 2022 or do I hold them for now and buy additional Ibonds for 2023. Either way I’ll do one of the other in January.
Information to help with that decision may be in the post nine above your post. But the bottom line is that is the gifts say are between you and your spouse, and you give those to each other next year instead of buying new $10k bonds, then you have not increased your I Bond holdings at all. If you buy new and let the old ones ride, their clock continues to run to remove the three month penalty and they continue to earn interest, and you add $20k to your holdings.
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Rainier
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Re: Series I Bond Strategy for Y2023

Post by Rainier »

AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
End of January, obviously.
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Re: Series I Bond Strategy for Y2023

Post by macheta »

Rainier wrote: Sat Nov 26, 2022 10:01 am
AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
End of January, obviously.
Why?
exodusNH
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Re: Series I Bond Strategy for Y2023

Post by exodusNH »

macheta wrote: Sat Nov 26, 2022 10:09 am
Rainier wrote: Sat Nov 26, 2022 10:01 am
AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
End of January, obviously.
Why?
Purchases and interest are always backdated to the first of the month. Buying at the end means you can continue to accrue interest elsewhere. You're not going to get rich on the arbitrage, but $1 is $1.
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Re: Series I Bond Strategy for Y2023

Post by Grt2bOutdoors »

macheta wrote: Sat Nov 26, 2022 10:09 am
Rainier wrote: Sat Nov 26, 2022 10:01 am
AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
End of January, obviously.
Why?
Because whether you buy at the beginning or end of month, the purchase allows you to capture the entire months worth of interest. Meanwhile you can keep your money invested in a money market fund earning interest for the first 3 weeks of the month of January. Now that’s a way to ensure you are collecting maximum earnings with no risk.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
exodusNH
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Re: Series I Bond Strategy for Y2023

Post by exodusNH »

Oak&Elm wrote: Sat Nov 26, 2022 8:15 am My only decision is do I deliver the Ibond gifts I bought in October of 2022 or do I hold them for now and buy additional Ibonds for 2023. Either way I’ll do one of the other in January.
If you intend to buy $10k more in January, then it doesn't matter if you gift the 2022 ones and buy 2023 gifts or keep the 2022 ones in the gift box and buy $10k directly.

Interest accumulates in the gift box. The 1 year / 5 year redemption clock counts down from purchase, not gift delivery.
buyer
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Re: Series I Bond Strategy for Y2023

Post by buyer »

I'm planning to buy $10k toward the end of January 2023, adding to the $10k each from 2021 and 2022. Treating these as long-term bond holdings in my portfolio.
Raspberry-503
Posts: 362
Joined: Sat Oct 03, 2020 6:42 am

Re: Series I Bond Strategy for Y2023

Post by Raspberry-503 »

I have some ibonds I purchased on March 2021, so they are liquid, currently earning over 9% until next March, at which time they would switch to 0+6.4%, but if I sell them now I lose 3 months interest.

I think I'm not interested in buying more iBonds (they're 5% of my portfolio, I think that's enough, although I also think of them as 2nd level emergency fund).

So I think I should cash out the March 2021 iBonds in April and buy the new 0.4+ inflation as a replacement?

I also bought reciprocal gift iBonds I'm October 2022 for my wife and I. The intention was to receive them in Jan 2023, but if I do that I can't buy the iBonds I'm April, so I have to wait till Jan 2024 to receive the gifts. It it means that from April through Dec I'd have $40k tied up I'm non-liquid iBonds: the 2x$10k gifts, and the new iBonds purchased in April.
I can then get the gifts in Jan 24 (they'd be immediately liquid) and the next batch would become liquid in April.
JS-Elcano
Posts: 726
Joined: Wed Jun 10, 2020 7:29 pm

Re: Series I Bond Strategy for Y2023

Post by JS-Elcano »

AnnetteLouisan wrote: Wed Nov 23, 2022 7:12 pm I’m just buying 10k in January.
Me too.
JS-Elcano
Posts: 726
Joined: Wed Jun 10, 2020 7:29 pm

Re: Series I Bond Strategy for Y2023

Post by JS-Elcano »

I have a question regarding the amount of I-Bonds to hold: Let's say I want to retiree 10 years from now and my expenses in retirement will be 100k annually. If until then I buy 10k of I-bonds every year, i.e. 100k in total by the time I retire, wouldn't this protect me exactly against whatever inflation will be in retirement? For example, if inflation is 9% my 100k in I-bonds will provide me with 9k, which would be exactly the amount by which prices increased if I spend 100k annually. That's what I am thinking of doing. Am I missing something?
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