I-bond manifesto

[Anonymous]

I-bonds come up occasionally here, when people ask about where to keep cash or e-fund and I figured it might be helpful to post this explanation of their advantages and rules, written by some well respected financial planning experts.

https://retirementincomejournal.com/article/how-to-stop-worrying-and-love-i-bonds/?pdf=13017

[Anonymous]

That was a helpful read.

So to avoid probate, I should add a co-owner or a beneficiary?

Each year can both my spouse and I purchase a 10K I Bond each and we make each other co-owners on our I Bonds. Or do we need to be beneficiaries because this would take us over the 10K max per person each year?

[Anonymous]

Anonymous wrote:That was a helpful read.

So to avoid probate, I should add a co-owner or a beneficiary?

Each year can both my spouse and I purchase a 10K I Bond each and we make each other co-owners on our I Bonds. Or do we need to be beneficiaries because this would take us over the 10K max per person each year?

You can each have the other on the i-bond (for most bonds— those held at treasury direct— a “co-owner” doesn’t really have any rights except to become the primary owner when the first primary owner dies)

[Anonymous]

thanks Op

[Anonymous]

For this inclined, the author of the I Bonds manifesto posted the article on the bogleheads forum, which generated a good bit of discussion. There’s also an EE manifesto posted on the same forum, which I have not read.

[Anonymous]

Anonymous wrote:For this inclined, the author of the I Bonds manifesto posted the article on the bogleheads forum, which generated a good bit of discussion. There’s also an EE manifesto posted on the same forum, which I have not read.

Yes— one of the interesting points made was that ibonds are relatively unknown because there is absolutely no way for financial firms to make money off them (and because they are more useful to low/moderate income people than really high income people).

[Anonymous]

Interesting read. Thanks for posting it.

[Anonymous]

Thanks for this! I bought $10k worth since interest rate is good and will see what the inflation rate looks like in November. Going to convert my long-term emergency fund over to these.

[Anonymous]

you can get another 5k (total of 15k) using fed tax return.

[Anonymous]

Anonymous wrote:you can get another 5k (total of 15k) using fed tax return.

I wish they would just allow you to do that electronically via treasury direct rather than just paper bonds!

[Anonymous]

Anonymous wrote:

Anonymous wrote:you can get another 5k (total of 15k) using fed tax return.

I wish they would just allow you to do that electronically via treasury direct rather than just paper bonds!

Their website seems even more archaic than handling paper bonds. Any common complaints dealing with treasury direct?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you can get another 5k (total of 15k) using fed tax return.

I wish they would just allow you to do that electronically via treasury direct rather than just paper bonds!

Their website seems even more archaic than handling paper bonds. Any common complaints dealing with treasury direct?

Some people like to complain about it but I have never had a problem. You do have to remember that you can't use the "back" button on your browser or you will be kicked out, and it prompts you for a one-time passcode (a second password that is emailed to you) if you go more than a month or two between log ins. Generally it works well and is pretty straightforward. I would link a bank account you intend to keep for a while because I think to add or change a bank account may require a medallion signature guarantee on a form and that can be a pain to get sometimes.

I don't get the paper ibonds from tax returns because at this point I'd much rather deal with TD than paper bonds but ymmv (it's not that hard to send in paper bonds to be "converted" to electronic ibonds but it hasn't seemed necessary/worthwhile to me).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you can get another 5k (total of 15k) using fed tax return.

I wish they would just allow you to do that electronically via treasury direct rather than just paper bonds!

Their website seems even more archaic than handling paper bonds. Any common complaints dealing with treasury direct?

Some people like to complain about it but I have never had a problem. You do have to remember that you can't use the "back" button on your browser or you will be kicked out, and it prompts you for a one-time passcode (a second password that is emailed to you) if you go more than a month or two between log ins. Generally it works well and is pretty straightforward. I would link a bank account you intend to keep for a while because I think to add or change a bank account may require a medallion signature guarantee on a form and that can be a pain to get sometimes.

I don't get the paper ibonds from tax returns because at this point I'd much rather deal with TD than paper bonds but ymmv (it's not that hard to send in paper bonds to be "converted" to electronic ibonds but it hasn't seemed necessary/worthwhile to me).

I've only used the webstite to purchase I bonds a couple of times. No issues. It does seem very basic but as a tax payer I appreciate it isn't super fancy (i.e. expensive). It does the job. What else does it need to do?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:you can get another 5k (total of 15k) using fed tax return.

I wish they would just allow you to do that electronically via treasury direct rather than just paper bonds!

Their website seems even more archaic than handling paper bonds. Any common complaints dealing with treasury direct?

Some people like to complain about it but I have never had a problem. You do have to remember that you can't use the "back" button on your browser or you will be kicked out, and it prompts you for a one-time passcode (a second password that is emailed to you) if you go more than a month or two between log ins. Generally it works well and is pretty straightforward. I would link a bank account you intend to keep for a while because I think to add or change a bank account may require a medallion signature guarantee on a form and that can be a pain to get sometimes.

I don't get the paper ibonds from tax returns because at this point I'd much rather deal with TD than paper bonds but ymmv (it's not that hard to send in paper bonds to be "converted" to electronic ibonds but it hasn't seemed necessary/worthwhile to me).

I've only used the webstite to purchase I bonds a couple of times. No issues. It does seem very basic but as a tax payer I appreciate it isn't super fancy (i.e. expensive). It does the job. What else does it need to do?

basic =/= cheap
fancy =/= expensive

[Anonymous]

So if I buy an iBond by the end of the month (Thursday), I'll get an entire month's worth of 3.54% annual interest, right?

When the rate is reset on Nov. 1, will interest then accrue at the new rate? With inflation pretty high, any thoughts if this will go above 3.54?

Sorry for the basic questions, but this is all new to me.