Poll: Do you own I Bonds?

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Do you own I Bonds?

Yes
223
67%
No
112
33%
 
Total votes: 335

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timboktoo
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Poll: Do you own I Bonds?

Post by timboktoo » Tue Jan 06, 2015 10:58 am

I am curious what percentage of Bogleheads currently own I Bonds.

(edit: I was corrected on the proper way to spell "I Bonds")

Bill M
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Re: Poll: Do you own I Bonds?

Post by Bill M » Tue Jan 06, 2015 4:07 pm

Once retired you can't contribute to a 401k any longer, you can't contribute to an IRA, after 65 you can't contribute to an HSA, ... So how do you convert taxable investments into tax-deferred ones? Are there ways other than buying IBonds?

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Re: Poll: Do you own I Bonds?

Post by chaz » Tue Jan 06, 2015 4:14 pm

No.... :mrgreen:
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livesoft
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Re: Poll: Do you own I Bonds?

Post by livesoft » Tue Jan 06, 2015 4:18 pm

I have a very small amount in I bonds, so technically my answer is Yes, but practically my answer should be No.

I signed up for Treasury Direct to see what all the fuss was about and bought once. I saw that the hassle factor was not worth my time given the paltry rates that I could buy at. And the rates have gotten lower and lower as time went on, so there is no incentive for me to even remember my TreasDir password.

Maybe the next poll gives options for some ranges of portfolio amounts either in percentages of total, percentages of fixed income, or dollars amounts in I bonds?
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Re: Poll: Do you own I Bonds?

Post by minesweep » Tue Jan 06, 2015 4:19 pm

Bill M wrote:Once retired you can't contribute to a 401k any longer, you can't contribute to an IRA, after 65 you can't contribute to an HSA, ... So how do you convert taxable investments into tax-deferred ones? Are there ways other than buying IBonds?
I'm retired and I have Vanguard's PA Tax-Exempt Bond Fund (I'm in the 25% tax bracket).

Mike

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Re: Poll: Do you own I Bonds?

Post by victork » Tue Jan 06, 2015 4:22 pm

I got some before around 2000, when the fixed rate part was 3%.
I'm keeping them.
I just count them as short term bonds.

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Rob5TCP
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Re: Poll: Do you own I Bonds?

Post by Rob5TCP » Tue Jan 06, 2015 4:35 pm

Over a dozen years ago, thanks to this site (and Andrew Tobias) I bought as much as I could before the rates tanked.
Half are at 3.0% and the balance 1.2%.
I still have them, though I have not bought much since rates dropped below below 1.2% (almost 8 years ago).

I believe it was Mel that was "pushing" them. Thank you Mel.

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Re: Poll: Do you own I Bonds?

Post by livesoft » Tue Jan 06, 2015 4:39 pm

What were the rates of other bonds back then? I bet they were not dissimilar, so one could've bought just about any bonds back then and held on. I know I have TIAA traditional paying more than those 3% rates, but I had to buy them back when everything was paying better rates.
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Jeff7
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Re: Poll: Do you own I Bonds?

Post by Jeff7 » Tue Jan 06, 2015 4:39 pm

Yes.

Savings accounts pay virtually nothing, and interest-bearing checking accounts that I've come across require more monthly debit transactions than I care to have to keep up with.
At the moment, I'm not sure where else to stash money such that it pays something in interest, and is still fairly liquid. CDs maybe, but then wouldn't I pay taxes on interest every year? Not that that would be all that much anyway.

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Re: Poll: Do you own I Bonds?

Post by goalie » Tue Jan 06, 2015 4:44 pm

I also listened to Mel and bought my Mother a decent amount in May of 2000. Wish I had bought more back then. I bought some for myself as part of my emergency fund in 2011-12. I look at them as a tax-deferred savings account/CD. Chip

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timboktoo
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Re: Poll: Do you own I Bonds?

Post by timboktoo » Tue Jan 06, 2015 4:52 pm

livesoft wrote:Maybe the next poll gives options for some ranges of portfolio amounts either in percentages of total, percentages of fixed income, or dollars amounts in I bonds?
I debated that. I like the simplicity of a yes/no poll. I don't think I'd get anything useful out of a percentage question myself, but I think that another useful one to me would be "Do you usually buy I Bonds every year?"

- Tim

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Re: Poll: Do you own I Bonds?

Post by Johno » Tue Jan 06, 2015 5:02 pm

Yes. I started buying them when the rates were 2% down to around 1.10% (missed out on 3%), they were paper (so also a hedge against an unknown unknown of massive computer problems) and you could buy them with a rewards credit card for no extra fee. I stopped when the rate got down to 1%, and also in there they stopped letting you use a credit card, then eventually wouldn't let you get paper ones*. And, later there was a nice window in 2009 where long term TIPS went back at 3%, so loaded up on those. However subsequently with TIPS rates way back down, I started buying $10k/yr I-bonds again, even though close to zero fixed rate, no credit card, and electronic only*. That kinda stinks even with the deferred tax on interest, but all reasonably safe investments now stink basically.

*you can still get paper ones up to $5k as tax refund, this year I deliberately overpaid my kids' estimated taxes to get some for them, which is useful as a 'gift' that they don't actually get their hands on, just goes direct to safe deposit box. :D But AIUI they give you a bunch including small denominations, not a single $5k one, which is sort of an extra hassle. All in all it's an interesting case of 'financial repression' how the current investment environment has allowed them to make I-bonds so much less attractive in a variety of ways not only price, but people still buy them, including me.

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Mel Lindauer
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Re: Poll: Do you own I Bonds?

Post by Mel Lindauer » Tue Jan 06, 2015 5:05 pm

Bill M wrote:Once retired you can't contribute to a 401k any longer, you can't contribute to an IRA, after 65 you can't contribute to an HSA, ... So how do you convert taxable investments into tax-deferred ones? Are there ways other than buying IBonds?
Yes, you can buy a low-cost variable annuity like those that Vanguard sells, but that's not something we normally recommend, except in special situations.
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Mel Lindauer
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Re: Poll: Do you own I Bonds?

Post by Mel Lindauer » Tue Jan 06, 2015 5:07 pm

minesweep wrote:
Bill M wrote:Once retired you can't contribute to a 401k any longer, you can't contribute to an IRA, after 65 you can't contribute to an HSA, ... So how do you convert taxable investments into tax-deferred ones? Are there ways other than buying IBonds?
I'm retired and I have Vanguard's PA Tax-Exempt Bond Fund (I'm in the 25% tax bracket).

Mike
Hi Mike:

That fund is tax-exempt, but it's not tax-deferred which is what he asked about.
Best Regards - Mel | | Semper Fi

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Mel Lindauer
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Re: Poll: Do you own I Bonds?

Post by Mel Lindauer » Tue Jan 06, 2015 5:09 pm

Rob5TCP wrote:Over a dozen years ago, thanks to this site (and Andrew Tobias) I bought as much as I could before the rates tanked.
Half are at 3.0% and the balance 1.2%.
I still have them, though I have not bought much since rates dropped below below 1.2% (almost 8 years ago).

I believe it was Mel that was "pushing" them. Thank you Mel.
You're welcome! The only bad part is that with those rates, it's going to be hard to redeem them. :D
Best Regards - Mel | | Semper Fi

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Mel Lindauer
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Re: Poll: Do you own I Bonds?

Post by Mel Lindauer » Tue Jan 06, 2015 5:13 pm

livesoft wrote:What were the rates of other bonds back then? I bet they were not dissimilar, so one could've bought just about any bonds back then and held on. I know I have TIAA traditional paying more than those 3% rates, but I had to buy them back when everything was paying better rates.
The rates that are being discussed were the fixed rates on the I Bonds. That was only one part of the total composite rate which is made up of both the FIXED rate and the INFLATION ADJUSTMENT.

The highest fixed rate was 3.6% and the composite rate on those bonds was ~7-8% back when the market was tanking and inflation was higher than it is now. Currently, those 3.6% I Bonds are yielding 5.11% and have a current yield-to-date of 6.07%/
Best Regards - Mel | | Semper Fi

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Re: Poll: Do you own I Bonds?

Post by friar1610 » Tue Jan 06, 2015 6:07 pm

victork wrote:I got some before around 2000, when the fixed rate part was 3%.
I'm keeping them.
I just count them as short term bonds
I was fortunate to buy a bunch at the 3.4% rate. I consider them long-term bonds as I don't plan on cashing them in for a long time. But (and here's the beauty of these babies) if the need arises I can cash them in anytime with no penalty (other than giving up that great interest rate.)
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Re: Poll: Do you own I Bonds?

Post by sport » Tue Jan 06, 2015 6:17 pm

Mel Lindauer wrote:
Rob5TCP wrote:Over a dozen years ago, thanks to this site (and Andrew Tobias) I bought as much as I could before the rates tanked.
Half are at 3.0% and the balance 1.2%.
I still have them, though I have not bought much since rates dropped below below 1.2% (almost 8 years ago).

I believe it was Mel that was "pushing" them. Thank you Mel.
You're welcome! The only bad part is that with those rates, it's going to be hard to redeem them. :D
The other bad part is the income tax that will be due when they mature after 30 years of compounding .

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Rob5TCP
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Re: Poll: Do you own I Bonds?

Post by Rob5TCP » Tue Jan 06, 2015 6:28 pm

jsl11 wrote:
Mel Lindauer wrote:
Rob5TCP wrote:Over a dozen years ago, thanks to this site (and Andrew Tobias) I bought as much as I could before the rates tanked.
Half are at 3.0% and the balance 1.2%.
I still have them, though I have not bought much since rates dropped below below 1.2% (almost 8 years ago).

I believe it was Mel that was "pushing" them. Thank you Mel.
You're welcome! The only bad part is that with those rates, it's going to be hard to redeem them. :D
The other bad part is the income tax that will be due when they mature after 30 years of compounding .
I wish ALL my investments had that sort of a problem.
15 or so years from now, i will probably look to sell when I have years that I am in a lower bracket.

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Cosmo
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Re: Poll: Do you own I Bonds?

Post by Cosmo » Tue Jan 06, 2015 6:32 pm

They are probably around 40% of my total bond exposure. I treat them partly as cash for my emergency fund and I am also hoping to roll them into a 529 plan tax-free in 15 years.
Cosmo

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archbish99
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Re: Poll: Do you own I Bonds?

Post by archbish99 » Tue Jan 06, 2015 6:46 pm

I'm in the same boat of site-affected. Tried to purchase as part of my parents' investments, but they make it so hard, especially with a POA, that it's just not worth it.
I'm not a financial advisor, I just play one on the Internet.

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Re: Poll: Do you own I Bonds?

Post by livesoft » Tue Jan 06, 2015 6:52 pm

Mel Lindauer wrote:
livesoft wrote:What were the rates of other bonds back then? I bet they were not dissimilar, so one could've bought just about any bonds back then and held on. I know I have TIAA traditional paying more than those 3% rates, but I had to buy them back when everything was paying better rates.
The rates that are being discussed were the fixed rates on the I Bonds. That was only one part of the total composite rate which is made up of both the FIXED rate and the INFLATION ADJUSTMENT.

The highest fixed rate was 3.6% and the composite rate on those bonds was ~7-8% back when the market was tanking and inflation was higher than it is now. Currently, those 3.6% I Bonds are yielding 5.11% and have a current yield-to-date of 6.07%/
Yes, I understand all that, but I don't think anyone has a 7-figure amount in this high-rate I-bonds.

Just checking now it looks like 10-year Treasuries were paying 6.5% back in early 2000 and over 5% in 2006-2007. I'll these were also a great deal in retrospect.
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Re: Poll: Do you own I Bonds?

Post by mindboggling » Tue Jan 06, 2015 7:01 pm

I've been buying the limit since about 2004. Back then, rates were higher, and the purchase limit was higher, too. Tax exempt for state tax; tax deferred for fed tax. Right now they are about 7 percent of my FI allocation.

Steve
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FelixTheCat
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Re: Poll: Do you own I Bonds?

Post by FelixTheCat » Tue Jan 06, 2015 7:06 pm

I don't own any I Bonds. I understand the mechanics of the bond. I simply don't understand what do use it in my portfolio.

For example, why should I buy an i bond when I can buy a tax-exempt fund?
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Re: Poll: Do you own I Bonds?

Post by LK2012 » Tue Jan 06, 2015 7:18 pm

jsl11 wrote:The other bad part is the income tax that will be due when they mature after 30 years of compounding .
I'm in a low tax bracket now, so I just pay the tax every year. It's not a big deal, and no surprises in 30 years. :happy

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timboktoo
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Re: Poll: Do you own I Bonds?

Post by timboktoo » Tue Jan 06, 2015 7:19 pm

livesoft wrote:Just checking now it looks like 10-year Treasuries were paying 6.5% back in early 2000 and over 5% in 2006-2007. I'll these were also a great deal in retrospect.
This will take us quite off topic, but I often find myself saying that something looks good in retrospect and then wondering what looks good today.

It seems like buying I Bonds during this time was an active move, right? I mean, if it wasn't already part of your normal AA, then it was an active decision, correct? To me, it seems similar to Mr. Bogle suggesting that if you had extra cash laying around in 2009 that it was a great time to invest.

Bogleheads seem to mostly talk about having an asset allocation and a solid plan and sticking to it, which is great for a long-term retirement plan, but if several Bogleheads took advantage of the opportunity that lay before them with I Bonds years ago, then does this justify purchases based on valuation in general?

I realize that not all Bogleheads have the exact same perspectives. I just wanted to point out what seems to be people taking on sensible opportunities they see in the market. I wonder if that's missing from the philosophy. I don't have a clue what the step would be called, though. Be mindful of sensible opportunities? :) Maybe not...

- Tim

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Re: Poll: Do you own I Bonds?

Post by livesoft » Tue Jan 06, 2015 7:24 pm

There is no doubt that I-bonds were a great buy back then and Mel and others were wise to get people to take action when rates were high.

But one's money gets pulled in various directions all the time, so sometimes thinking in historical context is also helpful.
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Re: Poll: Do you own I Bonds?

Post by telemark » Tue Jan 06, 2015 7:38 pm

I'm gradually moving my emergency fund into I bonds. This year's installment goes in at the end of the month. "High yield" savings accounts just don't cut it any more.

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Re: Poll: Do you own I Bonds?

Post by hoops777 » Tue Jan 06, 2015 8:11 pm

As others have said,I look at the recent ones as a short term bond fund and the ones bought back long ago with a rate of 3 as good fortune in todays reality.Unfortunately we only bought one time back then but you could buy 30K so I am happy with that.The 30K has finally doubled so we have about 18 years left for this to grow.I hate buying these 0 base rate I Bonds today to be honest. :annoyed
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Re: Poll: Do you own I Bonds?

Post by nisiprius » Tue Jan 06, 2015 8:52 pm

FelixTheCat wrote:I don't own any I Bonds. I understand the mechanics of the bond. I simply don't understand what do use it in my portfolio.

For example, why should I buy an i bond when I can buy a tax-exempt fund?
1) Inflation indexing. Admittedly there's been no inflation to speak of since I bonds and TIPS were introduced, so it may not matter much, but I find it comforting.

2) No interest rate sensitivity. The redemption value of an I-bond never decreases, no matter what interest rates do. I think this is huge, and it surprises me how many people fail to understand it.
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Re: Poll: Do you own I Bonds?

Post by GerryL » Tue Jan 06, 2015 11:07 pm

friar1610 wrote:
victork wrote:I got some before around 2000, when the fixed rate part was 3%.
I'm keeping them.
I just count them as short term bonds
I was fortunate to buy a bunch at the 3.4% rate. I consider them long-term bonds as I don't plan on cashing them in for a long time. But (and here's the beauty of these babies) if the need arises I can cash them in anytime with no penalty (other than giving up that great interest rate.)

Same here. I got a bunch at that time. I was motivated by good experience buying (and ignoring) a string of EE bonds almost 3 decades earlier and by several newspaper articles about what a good investment they were given the 3%+ rate.

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Re: Poll: Do you own I Bonds?

Post by nedsaid » Tue Jan 06, 2015 11:19 pm

Yes, I own I Bonds. As my old EE bonds mature, I cash them in and roll the amounts into Treasury Direct to buy I Bonds with them. As I am able, I purchase more I Bonds. Interest rates are not great but they beat the pants off of bank savings accounts.
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Re: Poll: Do you own I Bonds?

Post by Whiggish Boffin » Tue Jan 06, 2015 11:28 pm

I have enough in I bonds to support me in genteel poverty for one year. I wanted an emergency fund that would be safe, and hold its purchasing power automatically.

The biggest hassle setting it up is that the latest year's purchase is not acessible. I can handle that now, being of sound mind and having a job. When I'm 87, the hassle will be where's the dadblasted safe deposit key, and how do I get onto consarned TreasuryDirect? Thankfully, I can leave instructions with trusted nephews/nieces.

(Of course, when I turned 59-1/2, my whole nest egg became my emergency fund...)

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Re: Poll: Do you own I Bonds?

Post by bcjb » Tue Jan 06, 2015 11:30 pm

telemark wrote:I'm gradually moving my emergency fund into I bonds. This year's installment goes in at the end of the month.
+1

I think I bonds are perfect for this.

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Re: Poll: Do you own I Bonds?

Post by Dandy » Wed Jan 07, 2015 9:14 am

I think they are a great product but since you can only buy in relatively low amounts I don't want to add another small allocation to a product - I am trying to simplify my portfolio in retirement and especially for my spouse/heirs.

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Re: Poll: Do you own I Bonds?

Post by englishgirl » Wed Jan 07, 2015 11:39 am

I own I bonds, but I don't count them as part of my portfolio but as part of my emergency fund.

I have a bunch of 2002 and 2003 paper I bonds that would sustain me for up to 6 months if I was careful with my spending. It used to be 3 months, but I have gotten better at budgeting as the bonds have been sitting earning interest. I also kind of like the fact that the paper bonds are relatively hidden. I had to disclose assets to sign an office lease for a new business, and oops, forgot them. It's my stealth wealth. What I had in bank accounts and investments was more than enough to prove my credit worthiness, so...meh. I think the highest fixed rate ones I have are 2% and I have quite a few at 1.6%.

I started buying electronic I bonds more recently, having sworn off Treasury Direct for a while. I just transfer a small amount per month.
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Re: Poll: Do you own I Bonds?

Post by HomerJ » Wed Jan 07, 2015 11:45 am

jsl11 wrote:The other bad part is the income tax that will be due when they mature after 30 years of compounding .
I plan to use them to pay for the last 1-2 years of college for my kid (if I retire before my kid finishes college, I'll be in a low enough tax-bracket)... They are tax-free if you use them for education (and you qualify with a low enough income).

If I'm still working when my kid is in college, then I'll wait to redeem until I retire, so at least I'll be in a lower tax bracket when I redeem them...

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Re: Poll: Do you own I Bonds?

Post by poker27 » Wed Jan 07, 2015 11:53 am

I have moved 1/2 of my emergency fund to Ibonds, will move another 1/4 this year, and will keep 1/4 in online savings. After that I will decide annually if its worth to contribute above and beyond. Tax deferred is nice, hopefully rates will slowly tick up.

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Re: Poll: Do you own I Bonds?

Post by Bill M » Wed Jan 07, 2015 2:40 pm

jsl11 wrote:The other bad part is the income tax that will be due when they mature after 30 years of compounding .
This does put a limit on the maximum you can buy, $15K(single)/25K(couple) * 30 years, and then they roll over.
While it's next to impossible to project tax rates 30 years in advance, I suspect my tax rate in my 90s will be much lower than today (pension without COLA, and taxable account being all equities by then). So deferring taxes for 30 years is a great aspect; granted better would be an infinite deferral.

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Re: Poll: Do you own I Bonds?

Post by Castanea_d. » Wed Jan 07, 2015 3:09 pm

Yes. Like some others here, I was fortunate enough to get a few of them in the range around 3% fixed yield, starting in 1999. I also bought some EE bonds during that period and I wish that I had stuck with just the I bonds, which have done much better. All told, I and EE bonds are about 10% of our total assets.

Even though in hindsight the I bonds were a good deal, at the time they seemed like a stodgy place to put your money, when according to many of the "experts" you should have been buying dot.com stocks, etc. And the rates (as Mel said, around 7% at that time including the inflation adjustment) didn't seem that much better than some of the alternatives, such as bank CDs.

I quit buying the I bonds when the fixed-rate portion got below about 1.5%; I see that the last one I bought was in fall 2007, fixed rate 1.4%.

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Re: Poll: Do you own I Bonds?

Post by dratkinson » Wed Jan 07, 2015 5:03 pm

Yes. But I don't own any with a decent fixed rate. So thinking of redeeming them for a home project, or the better tax advantage (higher fed vs. lower state) and simplicity of a muni fund.
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Re: Poll: Do you own I Bonds?

Post by beyou » Wed Jan 07, 2015 5:14 pm

HomerJ wrote:
jsl11 wrote:The other bad part is the income tax that will be due when they mature after 30 years of compounding .
I plan to use them to pay for the last 1-2 years of college for my kid (if I retire before my kid finishes college, I'll be in a low enough tax-bracket)... They are tax-free if you use them for education (and you qualify with a low enough income).

If I'm still working when my kid is in college, then I'll wait to redeem until I retire, so at least I'll be in a lower tax bracket when I redeem them...
That was my plan from day 1, if I have no job (voluntarily or otherwise) then use for college,
but if I do work through college, then redeem when retired.

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Re: Poll: Do you own I Bonds?

Post by LateStarter1975 » Wed Jan 07, 2015 5:48 pm

I do not own I bonds at this time. Still in the rudimentry level of setting up my investing portfolio. In the next 3 years, it's possible I may start considering adding this
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Bustoff
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Re: Poll: Do you own I Bonds?

Post by Bustoff » Wed Jan 07, 2015 6:09 pm

We just started buying the max per year a couple of years ago. Not too excited about buying more at 1.48%.
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Re: Poll: Do you own I Bonds?

Post by Trader Joe » Wed Jan 07, 2015 6:15 pm

No, not worth it.

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Re: Poll: Do you own I Bonds?

Post by aceoperations » Wed Jan 07, 2015 6:41 pm

Whiggish Boffin wrote:I have enough in I bonds to support me in genteel poverty for one year. I wanted an emergency fund that would be safe, and hold its purchasing power automatically.
+1. I hold I-bonds for the same reason. Inflation protection and interest rate insensitivity is the main rationale.
Whiggish Boffin wrote: When I'm 87, the hassle will be where's the dadblasted safe deposit key, and how do I get onto consarned TreasuryDirect?
:mrgreen: I find logging into TD pretty hard as is. No saying what will happen at 87!

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Re: Poll: Do you own I Bonds?

Post by Angst » Wed Jan 07, 2015 6:58 pm

Right now, poll results show 33% not holding I Bonds. My suspicion is that this group includes a fair number of high income earners for whom I Bonds would be something of a bother and an over-complication, contributing so little to their overall portfolio as to not to be worth the trouble.

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Re: Poll: Do you own I Bonds?

Post by DVMResident » Wed Jan 07, 2015 7:07 pm

nisiprius wrote:
FelixTheCat wrote:I don't own any I Bonds. I understand the mechanics of the bond. I simply don't understand what do use it in my portfolio.

For example, why should I buy an i bond when I can buy a tax-exempt fund?
1) Inflation indexing. Admittedly there's been no inflation to speak of since I bonds and TIPS were introduced, so it may not matter much, but I find it comforting.

2) No interest rate sensitivity. The redemption value of an I-bond never decreases, no matter what interest rates do. I think this is huge, and it surprises me how many people fail to understand it.
I use to worry about #2. A funny thing nisiprius: one of your famous charts showing the "Bond massacre of '93" made me not worry (for short or intermediate-duration, high quality bonds). Maybe that wasn't your intent, but now I hold my ER in a intermediate-term, tax-managed bond fund because of that chart showed the volatility was a small, acceptable risk.

***

I don't own iBonds, but I think they're a good alternative for CDs to avoid the "rate lock-in" regret due to the floating component or if you need the extra advantaged space. Personally, I don't need the extra tax-advantaged space.

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Re: Poll: Do you own I Bonds?

Post by Artsdoctor » Fri Jan 09, 2015 1:41 pm

I arranged for my parents to buy as many I-bonds as possible when the real rate was so high several years ago. However, I was always convinced that my tax bracket would make them a poor investment for me. My way of thinking has changed. I'm now transitioning into a true capital preservation mode and could use more "liquid" savings. The current rates are awful but to have a savings account which is indexed to inflation and one where I don't have to pay federal and state income tax during my working years is not such a bad thing. A couple can save $20,000 per year and if they're interested, add another $5,000 from federal tax overpayment. If you multiply this times 10 years, it's really not a paltry sum since by then there will be no penalty for cashing them in on an as-needed basis. And you're really under no obligation to sell before 30 years if that fits with your plans.

If I'm using a Barclays Online Savings account and earning 1%, I'll have to pay now. Federal plus state, plus the net investment tax. If I-bonds are earning 1.48% and are subject to only deferred federal tax, I'll save on the CA state income tax and perhaps might be able to avoid the net investment tax in the future as well.

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Re: Poll: Do you own I Bonds?

Post by lack_ey » Fri Jan 09, 2015 2:26 pm

Angst wrote:Right now, poll results show 33% not holding I Bonds. My suspicion is that this group includes a fair number of high income earners for whom I Bonds would be something of a bother and an over-complication, contributing so little to their overall portfolio as to not to be worth the trouble.
Quite possibly.

On the other side, I don't have them because I want everything not in equities to be immediately liquid. I have almost $40k in cash and bond funds (combined investments, emergency funds, and day-to-day usage) that I would tap for a home down payment once done with my Ph.D. and getting a job somewhere, if buying a cheap condo or place is a better deal than renting in the area. Given needs, desired flexibility, complexity, current tax rate, and current rates, I don't see it worthwhile for me for at least several years.

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