would you suggest I Bonds before retirement and retirement prep age? I'm still relatively young but I'm really interested in making my money work for me early.
If you need the money in less than a year you should be able to get more interest from CDs, Treasuries, and HY Savings. If you need it more than 12 months from now then consider moving to the new 1.3% fixed I bonds.
if I use zero percent c of I option when redeeming a i bond and then buy a new one using the money in the zero percent option will I receive a 1099 for the tax portion earned on the redeem ibond?
Thank you for the article that brought me to this video. To make sure I understand, if purchased in 4/22, you suggested selling in Jan 2024 so only lose 3 months of 3.38. (oct, nov dec). Now I see that as of the next reset for that bond in April 1 it will raise the rate to 3.94. So that may make some folks thing to hold another 6 months and see what the rates will be for Oct 2024 once announced in May. Does that sound like a proper interpreration of your article and video?
That is correct - so many people bought in April 2022, saw the new rates, and cashed out too early - cashing in some of their 6.5% money. At this point we’re all past that and you need to consider - do I need the money soon? Because HY savings is paying 1% higher, or do I want I bonds for the long run, in which case you probably want to switch to the 1.3% fixed rate.
@@MrRetirement Thank you for such a quick reply. The money in the Ibonds will be needed in 4 years and 8 years. So the timing question in my mind is what multi-year CD rates (or US Notes) will be doing at the time if I let IBonds go for another 6 months. Again, thank you for the great explanation of how to calculate the timing of selling IBonds.
@@MrRetirement Thanks for checking back. It appears as though since the times frames I have are 4 and 8 years, that selling the current Ibonds from 4/2022 and buying new ones is a good idea to do before 4/30/2024. Would you concur?
You can adjust federal tax withholding via "account info" prior to the redemption order.
Thanks for the tip!!
would you suggest I Bonds before retirement and retirement prep age? I'm still relatively young but I'm really interested in making my money work for me early.
So great! I agree with Zvi Bodie that I bonds are great for long term emergency funds.
@@MrRetirementlove the videos! Thanks for sharing!
thank you!
I bought an Ibond on 6/1/22. I am still working, but cut my hours about 20%. When would you suggest selling?
If you need the money in less than a year you should be able to get more interest from CDs, Treasuries, and HY Savings. If you need it more than 12 months from now then consider moving to the new 1.3% fixed I bonds.
Thank you. Would April 1st be the best time to do that?@@MrRetirement
4/1 is nice to sell because it’s so close to it now and if you sell now then you won’t get March interest.
if I use zero percent c of I option when redeeming a i bond and then buy a new one using the money in the zero percent option will I receive a 1099 for the tax portion earned on the redeem ibond?
There will be a 1099 generated - you need to login to Treasury Direct around Feb 1 to print off and give to your tax preparer.
Thank you for the article that brought me to this video. To make sure I understand, if purchased in 4/22, you suggested selling in Jan 2024 so only lose 3 months of 3.38. (oct, nov dec). Now I see that as of the next reset for that bond in April 1 it will raise the rate to 3.94. So that may make some folks thing to hold another 6 months and see what the rates will be for Oct 2024 once announced in May. Does that sound like a proper interpreration of your article and video?
That is correct - so many people bought in April 2022, saw the new rates, and cashed out too early - cashing in some of their 6.5% money. At this point we’re all past that and you need to consider - do I need the money soon? Because HY savings is paying 1% higher, or do I want I bonds for the long run, in which case you probably want to switch to the 1.3% fixed rate.
@@MrRetirement Thank you for such a quick reply. The money in the Ibonds will be needed in 4 years and 8 years. So the timing question in my mind is what multi-year CD rates (or US Notes) will be doing at the time if I let IBonds go for another 6 months. Again, thank you for the great explanation of how to calculate the timing of selling IBonds.
How’s it looking now for you?
@@MrRetirement Thanks for checking back. It appears as though since the times frames I have are 4 and 8 years, that selling the current Ibonds from 4/2022 and buying new ones is a good idea to do before 4/30/2024. Would you concur?
From what you said, yes! Check out TIPS Watch and get his ideas on TIPS too.
Would you buy bonds now and then sell them after they cut interest rates?
Bond rates have already gone down quite a bit!
What is the link to your blog? I'd like to see your redemption date suggestions to optimize interest on I-bonds.
Thanks for your patience!
keilfp.com/blogpodcast/when-to-cash-out-i-bonds/