I bonds: October or November?

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letsgobobby
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I bonds: October or November?

Post by letsgobobby » Tue Oct 22, 2013 11:11 pm

The September CPI release originally scheduled for October 16 is now scheduled for October 30 (due to the shutdown).

A FatWallet poster projects the new rate will be between 1.00 and 1.18%:

http://www.fatwallet.com/forums/finance ... #m17993358

Can we assume fixed rate will remain zero? I think #Cruncher projected a higher fixed rate for EE bonds, but not I bonds.

Bottom line: since you won't have much if any time to get the BLS report and get an order in for October, are you buying your I bonds now and guaranteeing the 1.18%, or flying just a bit blind and buying in November?

island
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Re: I bonds: October or November?

Post by island » Tue Oct 22, 2013 11:28 pm

If you buy now does it lock in the current 1.18% for 6mos or does it change to the new rate in Nov anyway?

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Re: I bonds: October or November?

Post by letsgobobby » Wed Oct 23, 2013 12:15 am

Per the wiki, if you buy now you get the current rate until April 1, whereas if you wait until November to buy you get the new rate immediately, beginning November 1. That is the essence of my question, which is better? Normally the CPI for September is released early enough in October that one can calculate the November inflation adjustment (which is not officially announced until November 1) in October, enough time to decide whether to buy in October or November. This year's shutdown changed the timing. With the TreasuryDirect website it's unclear if a purchase entered on October 30 would get credit for an October or November purchase...

http://www.bogleheads.org/wiki/I_savings_bonds

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Re: I bonds: October or November?

Post by Geist » Wed Oct 23, 2013 1:24 am

letsgobobby wrote:Per the wiki, if you buy now you get the current rate until April 1, whereas if you wait until November to buy you get the new rate immediately, beginning November 1. That is the essence of my question, which is better? Normally the CPI for September is released early enough in October that one can calculate the November inflation adjustment (which is not officially announced until November 1) in October, enough time to decide whether to buy in October or November.
.........
With the TreasuryDirect website it's unclear if a purchase entered on October 30 would get credit for an October or November purchase...
Personally, I don't think it's a big deal one way or the other right now. The fixed-rate component is almost assuredly not going to change from 0%, and it's doubtful that the semiannual inflation component will change too significantly either (+/- 0.25%). So even with your full $10k 2013 purchase, the difference in interest earned will likely amount to no more than $50. If that difference in earnings is a pressing concern, you might reconsider your long-term priorities.

Stepping off my soapbox to answer your real question, your best option is to set up purchases to execute on 31 October. When the CPI comes out on the 30th, compute what the rate should be, and decide to either accept those purchases, or cancel them and buy after 1 November.

Per Treasury Direct (under 'How do I-Bonds earn interest'), "An I Bond earns interest monthly from the first day of the month in the issue date." So any purchase executed at any point during the month of October will earn interest for the full month, as if you had owned it from 1 October, with the current rate. If the issue date is anytime in November, you'll get a full month's interest at the next rate.

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Re: I bonds: October or November?

Post by #Cruncher » Wed Oct 23, 2013 7:43 am

The new semi-annual inflation rate to be announced November 1st should be irrelevant in deciding whether to buy in October or November. Whatever it is you will get it with either an October purchase or a November purchase; the only question is when. In comparing two I Bonds held for the same period of time, one bought in October and one bought in November, every single semi-annual inflation rate will be shared between them except for the one applied to the first 6 months of the October bond and the one applied to the last 6 months of the November bond.

We obviously don't know what it will be -- a year or more in the future -- for the last 6 months of the November bond. So we can only guess how it will compare to the 0.59% semi-annual inflation rate to be applied the first 6 months of the October bond. If this were an unusually high rate, I'd say go for it. But since it is unusually low, there is no reason to expect it will be higher than whatever the rate turns out to be for the last 6 months that one holds a bond bought in November.

The other reason to wait is the miniscule possibility, in my opinion, that the fixed rate to be announced in November will be greater than zero. Regardless of how small you think that chance is, I would still wait. The reason is that there is nothing to lose. The fixed rate can't be less than its current 0% level, and, as explained above, there is no reason to grab the current paltry 0.59% semi-annual inflation rate. It doesn't make economic sense (apart from entertainment value) to buy a lottery ticket. But if you're given one, it's sensible to keep it.

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Re: I bonds: October or November?

Post by jendoe » Wed Oct 23, 2013 1:30 pm

I actually just pulled the trigger and purchased some ibonds today, to go ahead and get the 1.18%.

I realized that if they announce a >0% fixed rate for November 1, that rate will apply in to the new year (when the purchase limits reset). In that case, I'll probably be buying more in January.

No clue what the inflation rate will do, though I saw the same FW post (predicting 1.00% - 1.18%).

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Re: I bonds: October or November?

Post by discman017 » Wed Oct 23, 2013 2:58 pm

I'm waiting till November. If you buy now, you're locking in a 1.0% to 1.2% rate for the next 12 months. I'd rather lock in the low rate for 6 months only.

Maybe inflation won't rise this year or next year. But in 5 years if inflation is up to 3%, then I'll start getting that 3% rate five months sooner on a November I bond vs. an October I bond.

So if you believe inflation is likely to be higher in the future than it is now (even in the fairly distant future, but within your expected holding period for the I bond), then it makes sense to wait till November. That's my thinking, at least.

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Re: I bonds: October or November?

Post by happymob » Wed Oct 23, 2013 3:06 pm

discman017 wrote:I'm waiting till November. If you buy now, you're locking in a 1.0% to 1.2% rate for the next 12 months. I'd rather lock in the low rate for 6 months only.
You only get that rate for the first 6 months. They quote an annual figure, but you really get half that for 6 months, and then it will adjust to the next 6 month rate. Please, please, somebody correct me if I am wrong.

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Re: I bonds: October or November?

Post by discman017 » Tue Oct 29, 2013 2:35 pm

happymob wrote:
discman017 wrote:I'm waiting till November. If you buy now, you're locking in a 1.0% to 1.2% rate for the next 12 months. I'd rather lock in the low rate for 6 months only.
You only get that rate for the first 6 months. They quote an annual figure, but you really get half that for 6 months, and then it will adjust to the next 6 month rate. Please, please, somebody correct me if I am wrong.
Yes, that's right. If you buy now, you get the current (May to October) rate for 6 months, and then the new (November to next April) rate for 6 months. So 12 months total of 1.0% to 1.2%.

If you buy in November, you get the new (November to April) rate for 6 months.

You get each rate change five months sooner if you buy in November vs. buying now.

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Mel Lindauer
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Re: I bonds: October or November?

Post by Mel Lindauer » Tue Oct 29, 2013 3:20 pm

island wrote:If you buy now does it lock in the current 1.18% for 6mos or does it change to the new rate in Nov anyway?
No, you get that rate for six months and then you get the rate announced in Nov. for the next six months.
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Re: I bonds: October or November?

Post by Mel Lindauer » Tue Oct 29, 2013 3:23 pm

discman017 wrote:I'm waiting till November. If you buy now, you're locking in a 1.0% to 1.2% rate for the next 12 months. I'd rather lock in the low rate for 6 months only.

Maybe inflation won't rise this year or next year. But in 5 years if inflation is up to 3%, then I'll start getting that 3% rate five months sooner on a November I bond vs. an October I bond.

So if you believe inflation is likely to be higher in the future than it is now (even in the fairly distant future, but within your expected holding period for the I bond), then it makes sense to wait till November. That's my thinking, at least.
That really doesn't make sense to me, because you'll get each announced rate for six months and the current rate is higher than the new rate that will be announced in Nov.

And, if you buy even this late in Oct., you'll get a full month's worth of interest for holding just a few days.
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Re: I bonds: October or November?

Post by Kevin21 » Tue Oct 29, 2013 3:32 pm

I think the only reason to wait, would be if the fixed rate is somehow above zero. Trying to game this otherwise is not worth the time or effort.

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Re: I bonds: October or November?

Post by Mel Lindauer » Tue Oct 29, 2013 3:50 pm

Kevin21 wrote:I think the only reason to wait, would be if the fixed rate is somehow above zero. Trying to game this otherwise is not worth the time or effort.
Agree. and I think the odds of the fixed rate being above 0% are about 100-1 or even higher.
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Re: I bonds: October or November?

Post by hsv_climber » Tue Oct 29, 2013 7:56 pm

I agree with discman017. It is an interesting logic.
Yes, it is definitely makes sense to wait till Nov.1 if we expect inflation to be higher in the future.
( BTW, with the current rate of 1.2% (or whatever it is), the difference between Oct 30 and Nov. 1 is $10 on $10,000 purchase. )

So, here is a bit more explanation to his idea.

Lets say inflation will be 2% / 6m. (4% annualized) starting from May 2014 and thereafter until you sell in 2015.
You will get:
Buying on Nov. 1:
Nov.1 - Apr. 30 - 0.59%
May 1 - Nov 1., 2014 - 2%
Nov 1 - sell time - 2%

Buying on Oct. 30:
Oct.30 - Apr. 29 - 0.59%
Apr. 30 - Oct 30 - 0.59%
Nov 1 - sell time - 2%.

So, with higher inflation in the future... $10k will provide a higher return. So, ~$130 more in the above case.
Of course, with lower inflation in the future, return will be lower.

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Re: I bonds: October or November?

Post by Mel Lindauer » Tue Oct 29, 2013 8:52 pm

hsv_climber wrote:I agree with discman017. It is an interesting logic.
Yes, it is definitely makes sense to wait till Nov.1 if we expect inflation to be higher in the future.
( BTW, with the current rate of 1.2% (or whatever it is), the difference between Oct 30 and Nov. 1 is $10 on $10,000 purchase. )

So, here is a bit more explanation to his idea.

Lets say inflation will be 2% / 6m. (4% annualized) starting from May 2014 and thereafter until you sell in 2015.
You will get:
Buying on Nov. 1:
Nov.1 - Apr. 30 - 0.59%
May 1 - Nov 1., 2014 - 2%
Nov 1 - sell time - 2%

Buying on Oct. 30:
Oct.30 - Apr. 29 - 0.59%
Apr. 30 - Oct 30 - 0.59%
Nov 1 - sell time - 2%.

So, with higher inflation in the future... $10k will provide a higher return. So, ~$130 more in the above case.
Of course, with lower inflation in the future, return will be lower.
You're overlooking the fact that nothing was said about selling in one year. In fact, he talked about higher inflation in five years and what he'd be earning then.
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Re: I bonds: October or November?

Post by #Cruncher » Wed Oct 30, 2013 12:23 am

Mel Lindauer wrote:[discman017] talked about higher inflation in five years and what he'd be earning then.
The point discman017 and I were making isn't true just for a five year period. It's just simpler when five years is up and redemptions no longer forfeit the last 3 months interest. To repeat, our point is that it doesn't make any difference how the new inflation rate compares to the current 0.59%. It only makes a difference how the last inflation rate on a November purchase compares to 0.59%. And if the inflation rate is likely to be higher in the distant future during the six months before redemption, then one will likely be better off waiting until November to buy.

To illustrate, let the new rate be r1, the next one r2, etc. Here is a table of what rates one would earn each six months on an October and a November purchase over the next 5 years assuming the fixed rate remains at 0%:

Code: Select all

Announced   Rate   Effective if Buy in Oct   Effective if Buy in Nov
---------   ----   -----------------------   -----------------------
May 1 2013  0.59%    Oct 2013 - Mar 2014
Nov 1 2013    r1     Apr 2014 - Sep 2014       Nov 2013 - Apr 2014
May 1 2014    r2     Oct 2014 - Mar 2015       May 2014 - Oct 2014
Nov 1 2014    r3     Apr 2015 - Sep 2015       Nov 2014 - Apr 2015
May 1 2015    r4     Oct 2015 - Mar 2016       May 2015 - Oct 2015
Nov 1 2015    r5     Apr 2016 - Sep 2016       Nov 2015 - Apr 2016
May 1 2016    r6     Oct 2016 - Mar 2017       May 2016 - Oct 2016
Nov 1 2016    r7     Apr 2017 - Sep 2017       Nov 2016 - Apr 2017
May 1 2017    r8     Oct 2017 - Mar 2018       May 2017 - Oct 2017
Nov 1 2017    r9     Apr 2018 - Sep 2018       Nov 2017 - Apr 2018
May 1 2018   r10                               May 2018 - Oct 2018
The relative value after 5 years of an I Bond bought in October to one bought in November is then given by the following fraction:
1.0059 X (1 + r1) X (1 + r2) X (1 + r3) X (1 + r4) X (1 + r5) X (1 + r6) X (1 + r7) X (1 + r8) X (1 + r9)
--------------------------------------------------------------------------------
(1 + r1) X (1 + r2) X (1 + r3) X (1 + r4) X (1 + r5) X (1 + r6) X (1 + r7) X (1 + r8) X (1 + r9) X (1 + r10)

All the terms 1 + r1 to 1 + r9 in the numerator and denominator cancel, reducing the formula to
1.0059
------
1 + r10
So if r10 (the semi-annual inflation rate announced May 1 2018) is greater than 0.59%, the October I Bond will be worth less.

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Re: I bonds: October or November?

Post by letsgobobby » Wed Oct 30, 2013 12:51 am

all the intervening 29 6 month periods are shared, right?

since I'm earning 2% in my checking account there's really no rush to buy so I'm waiting til late December. I realize none of this matters a whit in the grand scheme of things but that's what makes this forum so fun!
Last edited by letsgobobby on Wed Oct 30, 2013 1:55 am, edited 1 time in total.

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Re: I bonds: October or November?

Post by taegirain3 » Wed Oct 30, 2013 1:23 am

letsgobobby wrote:all the intervening 29 6 month periods are shared, right?
All shared, correct.

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Re: I bonds: October or November?

Post by Mel Lindauer » Wed Oct 30, 2013 6:32 pm

#Cruncher wrote:
Mel Lindauer wrote:[discman017] talked about higher inflation in five years and what he'd be earning then.
The point discman017 and I were making isn't true just for a five year period. It's just simpler when five years is up and redemptions no longer forfeit the last 3 months interest. To repeat, our point is that it doesn't make any difference how the new inflation rate compares to the current 0.59%. It only makes a difference how the last inflation rate on a November purchase compares to 0.59%. And if the inflation rate is likely to be higher in the distant future during the six months before redemption, then one will likely be better off waiting until November to buy.

To illustrate, let the new rate be r1, the next one r2, etc. Here is a table of what rates one would earn each six months on an October and a November purchase over the next 5 years assuming the fixed rate remains at 0%:

Code: Select all

Announced   Rate   Effective if Buy in Oct   Effective if Buy in Nov
---------   ----   -----------------------   -----------------------
May 1 2013  0.59%    Oct 2013 - Mar 2014
Nov 1 2013    r1     Apr 2014 - Sep 2014       Nov 2013 - Apr 2014
May 1 2014    r2     Oct 2014 - Mar 2015       May 2014 - Oct 2014
Nov 1 2014    r3     Apr 2015 - Sep 2015       Nov 2014 - Apr 2015
May 1 2015    r4     Oct 2015 - Mar 2016       May 2015 - Oct 2015
Nov 1 2015    r5     Apr 2016 - Sep 2016       Nov 2015 - Apr 2016
May 1 2016    r6     Oct 2016 - Mar 2017       May 2016 - Oct 2016
Nov 1 2016    r7     Apr 2017 - Sep 2017       Nov 2016 - Apr 2017
May 1 2017    r8     Oct 2017 - Mar 2018       May 2017 - Oct 2017
Nov 1 2017    r9     Apr 2018 - Sep 2018       Nov 2017 - Apr 2018
May 1 2018   r10                               May 2018 - Oct 2018
The relative value after 5 years of an I Bond bought in October to one bought in November is then given by the following fraction:
1.0059 X (1 + r1) X (1 + r2) X (1 + r3) X (1 + r4) X (1 + r5) X (1 + r6) X (1 + r7) X (1 + r8) X (1 + r9)
--------------------------------------------------------------------------------
(1 + r1) X (1 + r2) X (1 + r3) X (1 + r4) X (1 + r5) X (1 + r6) X (1 + r7) X (1 + r8) X (1 + r9) X (1 + r10)

All the terms 1 + r1 to 1 + r9 in the numerator and denominator cancel, reducing the formula to
1.0059
------
1 + r10
So if r10 (the semi-annual inflation rate announced May 1 2018) is greater than 0.59%, the October I Bond will be worth less.
I wasn't a math major, so I have to ask if you included earning one month's interest for holding just a day or two if purchased in Oct. in your calculations?
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Re: I bonds: October or November?

Post by #Cruncher » Wed Oct 30, 2013 7:25 pm

letsgobobby wrote:all the intervening 29 6 month periods are shared, right?
All the periods are shared except the first one for an October purchase and the last one for a November purchase. In my example covering 5 years, Bobby, there are 9 such intervening periods (when rates r1 to r9 apply). If instead each I Bond were held 15 years, there would be 29 such periods as you state.
Mel Lindauer wrote:I have to ask if you included earning one month's interest for holding just a day or two if purchased in Oct. in your calculations?
Yes, I include the entire 6 months interest from October 1st through March 31st for an I Bond purchased at the end of October. This is because, as you have pointed out, Mel, I Bonds earn a full month's interest if they are held even one day during a month. So technically both the October and November purchases would only have to be held 4 years, 11 months, and two days to earn 5 years interest.

However, for simplicity, I did omit a couple of issues in comparing the October and November purchase that arise because the 5-year periods start and end one month apart.
  • A November purchaser can wait until Nov 30th to buy and can therefore earn a little interest by leaving his funds in a bank account until the purchase.
  • An October purchaser can redeem his I Bond October 1, 2018 -- one month earlier than the November purchaser. He will therefore be able to earn a little interest by depositing these funds in a bank account during the month of October 2018.

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Re: I bonds: October or November?

Post by Mel Lindauer » Wed Oct 30, 2013 8:32 pm

#Cruncher wrote:
letsgobobby wrote:all the intervening 29 6 month periods are shared, right?
All the periods are shared except the first one for an October purchase and the last one for a November purchase. In my example covering 5 years, Bobby, there are 9 such intervening periods (when rates r1 to r9 apply). If instead each I Bond were held 15 years, there would be 29 such periods as you state.
Mel Lindauer wrote:I have to ask if you included earning one month's interest for holding just a day or two if purchased in Oct. in your calculations?
Yes, I include the entire 6 months interest from October 1st through March 31st for an I Bond purchased at the end of October. This is because, as you have pointed out, Mel, I Bonds earn a full month's interest if they are held even one day during a month. So technically both the October and November purchases would only have to be held 4 years, 11 months, and two days to earn 5 years interest.

However, for simplicity, I did omit a couple of issues in comparing the October and November purchase that arise because the 5-year periods start and end one month apart.
  • A November purchaser can wait until Nov 30th to buy and can therefore earn a little interest by leaving his funds in a bank account until the purchase.
  • An October purchaser can redeem his I Bond October 1, 2018 -- one month earlier than the November purchaser. He will therefore be able to earn a little interest by depositing these funds in a bank account during the month of October 2018.
You're obviously the solid numbers guy around here, so I defer to your math.
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Re: I bonds: October or November?

Post by sscritic » Wed Oct 30, 2013 8:44 pm

#Cruncher wrote: However, for simplicity, I did omit a couple of issues in comparing the October and November purchase that arise because the 5-year periods start and end one month apart.
  • A November purchaser can wait until Nov 30th to buy and can therefore earn a little interest by leaving his funds in a bank account until the purchase.
  • An October purchaser can redeem his I Bond October 1, 2018 -- one month earlier than the November purchaser. He will therefore be able to earn a little interest by depositing these funds in a bank account during the month of October 2018.
And our assumption is that the interest rate in October 2018 will be much greater than the interest rate in November 2013. That in fact is the basis of your argument, that r10 will (most likely) be greater than 0.59%. For completeness, I think you should include those months, using nominal rates that you make up off the top of your head. :)

P.S. and the amount invested in 2018 will be much larger than the amount invested in 2013, as it will include all the earnings and inflation adjustments.

P.P.S. I just realized I mixed up inflation with interest rates, but if inflation is 5%, I don't expect that banks will be paying 0.5%.

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Re: I bonds: October or November?

Post by #Cruncher » Thu Oct 31, 2013 6:53 am

sscritic wrote:For completeness, I think you should include those months [Nov 2013 & Oct 2018], using nominal rates that you make up off the top of your head.
OK. For illustration here are some some assumptions "off the top of my head":
  • Fixed rate stays at 0% November 1st.
  • Semi-annual inflation rate November 1st is 0.59%, by coincidence, the same as the current rate.
  • The next 9 semi-annual inflation rates announced May 2014 - May 2018 are all 2.5%.
  • November 2013 interest in savings account @ 1.2%.
  • October 2018 interest in savings account @ 6.0%
Given these assumptions here are the growth factors for an October and a November purchase:

Code: Select all

Oct purchase: 1.2390 = 1.0059 * 1.0059 * 1.025 ^ 8 * 1.005 (last factor  is 1 mo @ 6%)
Nov purchase: 1.2575 = 1.001  * 1.0059 * 1.025 ^ 9         (first factor is 1 mo @ 1.2%)
Assuming a $1,000 I Bond purchase, the two values after 5 years are $1,239.00 and $1,257.50, a difference of $18.50. (Maybe a couple of meals at McDonalds even in 2018, but not enough to sweat over.) The corresponding annual growth rates over 5 years are 4.38% and 4.69%.
sscritic wrote:P.S. and the amount invested in 2018 will be much larger than the amount invested in 2013, as it will include all the earnings and inflation adjustments.
This makes no difference. Whether the 1.005 factor representing the Oct 2018 growth is first or last in the equation doesn't affect the result. (The same issue applies when comparing the after tax returns from a Roth and traditional IRA. See thefinancebuff.com/commutative-law-of-multiplication.html.)

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Re: I bonds: October or November?

Post by tipswatcher » Thu Oct 31, 2013 8:50 am

I think the only reason to wait, would be if the fixed rate is somehow above zero. Trying to game this otherwise is not worth the time or effort.
I agree there is near-zero likelihood of the I Bond base rate rising above 0% tomorrow, and I've already bought my 2013 I Bonds for this year, so not much of an issue. Usually, I just buy up to the limit each January.

But here is the question: Should I delay my usual January 2014 purchase until at least May, or even November, given the somewhat more likely possibility that the base rate could rise above zero? Although the Treasury doesn't say how it sets this rate, the I Bond does seem to link to the 10-year TIPS, and when the 10-year TIPS rises above 1.2%, the I Bond then rises above zero.

In November 2009 the spread was down to 1.11% (producing an I Bond rate of 0.30%) and in May 2010 the spread was 1.12% (I Bond rate of 0.20%). On the other hand, back in May 2008 the I Bond rate went to zero when the TIPS was yielding 1.52%.

This year, on Sept. 5, the 10-year TIPS yield rose to 0.92%, very close to the magical 1%. But then the Fed back off tapering and the yield has dropped a nasty 55 basis points. Next year, if the Fed actually does beginning tapering or even halts its bond-buying, we could see a TIPS rate above 1% or even 1.5%

Will that be enough to raise the I Bond above 0%?
TIPS: Perfect investment for imperfect times?

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Re: I bonds: October or November?

Post by taegirain3 » Thu Oct 31, 2013 11:00 am

Speaking of I bonds, it looks like a non-draft 2013 form 8888 is available: http://www.irs.gov/pub/irs-pdf/f8888.pdf

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Re: I bonds: October or November?

Post by Mel Lindauer » Thu Oct 31, 2013 12:53 pm

taegirain3 wrote:Speaking of I bonds, it looks like a non-draft 2013 form 8888 is available: http://www.irs.gov/pub/irs-pdf/f8888.pdf
One year at a time, any of which could be the last.
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Re: I bonds: October or November?

Post by Mel Lindauer » Thu Oct 31, 2013 1:22 pm

We need to remember that the inflation factor could also be LOWER in 2018, and that favors buying in October. We also need to remember that predicting the future of interest rates, inflation, taxes, etc. with any degree of certainty can be a humbling experience. Personally, if I were making the decision, I'd be a buyer in Oct. A bird in the hand . . .
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Re: I bonds: October or November?

Post by discman017 » Fri Nov 01, 2013 11:41 am

Wow, I didn't expect to spawn such a flood of comments. Thanks for the feedback. Couple of replies:
Mel Lindauer wrote:We need to remember that the inflation factor could also be LOWER in 2018, and that favors buying in October.
True. It can't be much lower, since it doesn't go negative, but it's possible that it could be lower. In that case, buying in October would have made sense (assuming that like me, you didn't expect the bump in the fixed component that we got).
Mel Lindauer wrote:if you buy even this late in Oct., you'll get a full month's worth of interest for holding just a few days.
True. And this bonus applies whether you buy in late October or late November. So in the "buy now vs. buy later" calculus, this bonus isn't a factor.

Of course, it's moot now, since October is over. And those of us who waited got a nice (and unexpected) bonus of a 0.2% fixed rate. But the original logic still holds: If you expect inflation to be higher in the future than now, then you're better off delaying a month, since November I bonds get those new (expected higher) rates 5 months sooner than October I bonds.

sscritic
Posts: 21858
Joined: Thu Sep 06, 2007 8:36 am

Re: I bonds: October or November?

Post by sscritic » Fri Nov 01, 2013 11:49 am

discman017 wrote: Of course, it's moot now, since October is over.
And the correct response is "WE HAVE A WINNER!"

http://www.youtube.com/watch?v=x8JRPrwxhAg

letsgobobby
Posts: 11272
Joined: Fri Sep 18, 2009 1:10 am

Re: I bonds: October or November?

Post by letsgobobby » Fri Nov 01, 2013 12:13 pm

fixed rate 0.2%. cool - glad I waited. Isn't market-timing fun?

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