Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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#31
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To clarify, the I bond interest rate changes every 6 months, and you must keep the bond for 5 years or forfeit 3 months of the interest. So, for example, assume that you buy a $10,000 I bond in January that pays 7 percent, and the interest rate stays the same for one year, and then you cash in the bond. Note that the interest is compounded semi-annually. You will receive about $10,534 for the bond, of which $534 is taxable income at your ordinary income tax rate. So, the actual interest rate you receive is about 5.34 percent before taxes because you forfeit 3 months of the interest. In order to receive the entire 7 percent first year interest rate, you would need to keep the bond for at least 5 years. The interest rate for years 2 through 5 is unknown because it changes every 6 months. Just doing the math.
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#32
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I consider this portion of my portfolio the dime hidden in the back of my wallet in case I ever needed to make an emergency phone call. |
#33
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Exactly. There’s been some recent discussion about expanding those limits. Not holding my breath though.
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#34
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Considering many households are couples and the $10k annual limit is per person, the investment amount for couples is $20k annually...a little better.
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#35
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Then you can also buy $5K using your tax refund - now up to $45K is possible. CAUTION - get an education on the limitations of the above two items some call the back door. However it is legal. |
#36
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Bought 3 max in 2001 and put them in a drawer. Never thought about buying more until this thread. Will buy the limit again. Thanks.
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#37
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I'm also invested in a I-bond a year ago, but remember, CD's will be on the upswing again in 2022
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#38
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Not much of a swing, more like a bunt.
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Identifying as Mr. Helpful |
#39
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2022 isn't over with yet
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#40
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Anyone verified the back door concept? appreciate the post
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#41
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#42
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Hmm, this guy thinks that if you have a trust, you can buy another $10,000 per year under the name of the trust.
Buy More I Bonds in a Revocable Living Trust |
#43
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Closed Thread |
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