Do I need to explain basic economics to you? Favorite oil is olive oil by the way.

I know that the bonds are paying 9.62 % interest and that the rates change on May 1 and November 1. Is the 9.62% from the time you buy them? Or is it from May 1? For example, if I buy one one on October 15, do I only get the 9.62% for 16 days? Or do I get the 9.62% for six months from date of purchase - whether I buy it on May 1 or October 31?

:1rotfl::1rotfl::1rotfl:

Believe it or not the way it works is whatever the present 6 months rate is at the time of purchase that is the rate you get for the next 6 months while you hold the bond. Thus a bond purchased at the end of April will expire just prior to Nov this year. End of April - end of Oct will be 7.2%. Well the 6 month expiration is now just prior to the Nov 2022 announcement thus you get the May rate (9.62%) for the next 6 months. Couple this to the idea you can cash out after one year (with last 3 months interest forfeited as penalty since 5 years are not up) you know exactly what you are getting for a whole year with no unknown risk. Hope it helped. Hard to put into words. Go watch a youtube video. There is a lot of them on this subject. Search I bonds for beginners.

Gee thanks, Uncle Sam!

So you're saying I can get a tenth of the real inflation rate, on $20k of the nest egg that took us 30 years to save? Wow, that's almost as much as a burger flipper makes! Let's see, when you let me have it back, five years of 100% inflation from now, that'll be worth, what, one month's groceries and CDD fees? Gee, a whole other month before we go on the Alpo diet!

And I thought you were mad at me or something!

But howcome only $20K? Since all it costs you is funny money, anyway, why not let us do the whole thing? Even 10% is better than playing Wall Street Roulette!

Thanks!!

[QUOTE=Blueblaze;2091758]Gee thanks, Uncle Sam!

So you're saying I can get a tenth of the real inflation rate, on $20k of the nest egg that took us 30 years to save? Wow, that's almost as much as a burger flipper makes! Let's see, when you let me have it back, five years of 100% inflation from now, that'll be worth, what, one month's groceries and CDD fees? Gee, a whole other month before we go on the Alpo diet!

And I thought you were mad at me or something!

But howcome only $20K? Since all it costs you is funny money, anyway, why not let us do the whole thing? Even 10% is better than playing Wall Street Roulette![/QUOTE

One reason is the government does not want mass exodus from the stock market every time there is a hiccup. It would collapse the economy.

There is a way for a married couple to do up to $45K per year . Not easy but possible. I know we have been raised in the I want it all and I want it now society but if one would have started and maxed out a few years back the nest egg getting a little bigger. So if it is so insignificant as many complain max out what you can today. If it is insignificant it won't put a dent into whatever sure fire investment scheme you've discovered. Just a little tiny bit of insurance.

Where do you buy these bonds?
 

Do you buy them on the internet, from a bank or from an investment advisor? Also, when it is time to redeem them, where do you do this?

You can only buy them from the U.S. Treasury with a Treasury Direct account. To me, that is an obstacle. Also, the $10K annual purchase limit makes it not worth the effort for a lot of investers.

The Treasury Direct website (I know this will be hard to believe) was easy peasy. I set up an account and purchased an I bond in less than 10 minutes with no confusion.

Same here. Online account for each of us. Electronic record. Linked to bank account.

The $10,000 purchase limit per year is problematic for many. At 9%, with the 3 month penalty, $675 return for the year. With the current inflation rate, sort of a wash, but better than most other choices. Raising the $10,000 limit would be awesome.

Qyld and Xyld generate ten percent. Bond limits too low to be material to me

Are those funds FDIC insured and guaranteed 10% rate of return ?

Fake News!!!

Year-to-Date QYLD = (5.9%)
Year-to-Date XYLD = (1.1%)

NEGATIVE RETURNS.

:ohdear::ohdear: