Be the first to sign up for my soon to launch newsletter! Money, finance, and whatever else is on my mind, free of what an algorithm wants. jayfairbrother.beehiiv.com/subscribe
You can't really "sell" I-Bonds. You can, within certain parameters and caveats, redeem them early. That's a bit pedantic I know but someone might get the wrong idea in thinking you can sell them. You can't sell them to your neighbor, you can't sell them on a marketplace. All you can do is go back to the issuer and ask them to cancel/redeem the bond. This is very much unlike most other bonds.
Yes getting some more for this month and holding is a good idea, even at 5+% it is still a decent amount guaranteed with no risk of dropping like a HYSA. I will do just half the $10K max in April.
Hey Jay, great video and I much appreciate you doing that as I had suggested it. So first - Thank You! As for me, I didn't realize the next 6 months will yield so little. I will not buy another I-Bond this year. I do have an investment from last year. I will consider selling it after I have run the 3 months of lower rate, IF at that point the 1-yr or 2-yr bills will yield higher, then I may cash out, and transfer to those. If by then the yields on 1-yr, 2-yr will get lower than the I-Bond then I may hold even longer. Thanks so much for this video man! Truly appreciated.
My pleasure! I appreciate you guys that take the time to watch and comment regularly, makes these videos much more enjoyable to make! I'm in the same boat. I don't think I'm going to be buying more I-bonds right now. I'll hold on to the ones I bought last year though unless there's another opportunity that really jumps out as something I need to move money towards.
Just be sure to check the current T-Bill rates before you make any moves. Those aren't guaranteed to stay so high either, it'll depend on what happens with interest rates at these next Fed meetings
I got some I-Bonds that will drop to 3.39% over the next several months. If the 6 mo. T-Bill yield is above 3.6% two months and one day after the rate drops, I plan to take the penalty and redeem.
Sell if you are one six month term focused but what does inflation do when the fed inevitably pivots? If inflation isn’t extinguished, it will return and all of the last two years of compounding won’t be in play, albeit only four instances since it happens every six months. Like the 70/80s, the Fed prematurely pivoted and inflation resumed. If your in the camp of this being a period of financial repression and a means to inflated away a lot of the debt, this drop in inflation was expected before the next wave of inflation arrives.
Thanks, Jay! I was looking forward to hearing your latest thoughts after the recent adjustment. I can't say I'm in I Bonds for the "long haul". Maybe two years max. I might jump on the 6.89% for now though.
Redeeming my I bonds and starting a T-bill ladder. I am three years into retirement and have 12 month emergency fund in high yield savings (4.8%) or no penalty CDs (4.75%).
I purchased a $5000 paper i-bond with my tax return that I filed last month. Still haven't heard whether the IRS has evaluated the return and issued the bond. Does the issue date fall back to my filing date or could it be delayed by lazy IRS agents who don't finish until later this summer?
@@ozzielinkin I worked for the government for 30 years. I know exactly what I'm talking about. Workers who have zero chance of getting fired get quite lazy compared to their counterparts outside the government.
So isn't it a way better option to get t-bill for 4.7% now than I bond, as if interest rate falls in next 12 months, the price of t-bill you hold will actually increase if you decide to sell?
Hey Jay I purchased my I bonds on 12-01-21. When the fixed rate was zero. For May 2023 the interest rate will be just 3.4 for me since I will not get the 0.9 fixed rate. Does this mean my last 6 month period before this new rate will be on 06-01-23 which was 6.48. If that is the case and I sell on 09-01-2023 I will Just loose the last 3 months which will be at 3.4. Please confirm.
If you purchased in December you're going to be 3 mos behind the official interest rate changes. So the rate on your Ibonds won't change for another few months. But otherwise yes, you lose the last 3 months if you sell prior to 5 years. So just wait until you've earned 3 mos at the 3.4% before selling if that's your plan
I purchased my Ibonds on 4-27-22, now that rates are coming down on them when is the ideal time to sell it now and put in other opportunities. I’m confused as to what rate and when on my current I bond, can anyone help?
If you're really set on selling, the ideal time would be 3 months after your Ibonds switch to the lower rate, that way you're forefitting the least amount of interest. You can check by logging into treasury direct and clicking into each series of Ibonds you have to see the current rate they're paying
@Jay, another nice video. I have a tax refund amount + amount from checking account around 25K. I never went for HYSA/CD/I-Bonds/T-Bills due to market volatility and less knowledge. I am medium term investor and I can planning for 1 year to start with. Shall I go for I-Bond in April with 10K, so (6.89+3.4)/2 -> 5.2%-last 3mo interest with 3.4%-> 4.2% overall? and also 10K with 12 months of T-bills with 4.2%? I have few grands in robinhood cash interest for 4.3% already. what do you suggest? I know you are not a financial advisor, but want to get your friendly suggestion or your experience.
I think Tbills are better if you're sure it's only for 1 yr. Just a smoother transaction as the money will automatically go back to your account after the 1yr is up, where you'd have to remember to redeem the Ibonds yourself. I-bonds are meant to be for longer term (hence the interest penalty). But it's not a big difference either way as you can see with how much interest you'd earn in each of them
@@JayFairbrother Nice suggestion. I have 40K to invest and never had Ibond, TB, so do you suggest everything to T-Bill ladder or park something to Ibond. Minimum should be 1 year but if I dont need money after 1 year, I can continue longer too.
@@ArunKLogan Totally up to you and what you want out of your money. Remember the Ibond limit is 10k per year, so you couldn't put the full 40k there even if you wanted :)
@@JayFairbrother Yes I understand the limit of 10K, but thinking of 10K in Ibond for 2-3 years, 10K T-bills, 20K in HYSA. Does it pretty ok or 20K in T bill and the rest in HYSA?
@@mattflower3642 I have gifts that I will receive and thus will not buy this last chance to get a good I bond rate. I already have my bond, which I will redeem once it reaches the right month.
Thanks Jay. We keep iBonds long term. We’ll buy half of the limit before 5/1 and see what the fixed rate does before making a decision to buy the remaining half.
Good plan. It doesn't seem like much now, but that 0.4% fixed will only look more and more attractive as interest rates fall in the future. Wasn't too long ago where that would have doubled the return you were getting in a HYSA!
Be the first to sign up for my soon to launch newsletter! Money, finance, and whatever else is on my mind, free of what an algorithm wants. jayfairbrother.beehiiv.com/subscribe
Timely analysis and great presentation, thank you!
Glad you liked it!
You can't really "sell" I-Bonds. You can, within certain parameters and caveats, redeem them early. That's a bit pedantic I know but someone might get the wrong idea in thinking you can sell them. You can't sell them to your neighbor, you can't sell them on a marketplace. All you can do is go back to the issuer and ask them to cancel/redeem the bond. This is very much unlike most other bonds.
Straight to the point, knowledgeable, this guy deserves more subscribers
Yes getting some more for this month and holding is a good idea, even at 5+% it is still a decent amount guaranteed with no risk of dropping like a HYSA. I will do just half the $10K max in April.
That 0.4% fixed will start to look better and better as interest rates fall too.
Hey Jay, great video and I much appreciate you doing that as I had suggested it. So first - Thank You! As for me, I didn't realize the next 6 months will yield so little. I will not buy another I-Bond this year. I do have an investment from last year. I will consider selling it after I have run the 3 months of lower rate, IF at that point the 1-yr or 2-yr bills will yield higher, then I may cash out, and transfer to those. If by then the yields on 1-yr, 2-yr will get lower than the I-Bond then I may hold even longer. Thanks so much for this video man! Truly appreciated.
My pleasure! I appreciate you guys that take the time to watch and comment regularly, makes these videos much more enjoyable to make!
I'm in the same boat. I don't think I'm going to be buying more I-bonds right now. I'll hold on to the ones I bought last year though unless there's another opportunity that really jumps out as something I need to move money towards.
Perfect timing! What happens on ETFs? Say for example WTIP. The last distribution was ridiculous..
Holding. Because 3.8% is still a heck of a lot better than the .01% my savings account is paying...
eww get rid of that savings account and open a money market account or high yield savings account
I bought my I-bond on 5.1.22 and I think that I will sell it 3-months after the May 2023 interest rate adjustment and put the money in a t-bill.
Just be sure to check the current T-Bill rates before you make any moves. Those aren't guaranteed to stay so high either, it'll depend on what happens with interest rates at these next Fed meetings
I got some I-Bonds that will drop to 3.39% over the next several months. If the 6 mo. T-Bill yield is above 3.6% two months and one day after the rate drops, I plan to take the penalty and redeem.
Sell if you are one six month term focused but what does inflation do when the fed inevitably pivots? If inflation isn’t extinguished, it will return and all of the last two years of compounding won’t be in play, albeit only four instances since it happens every six months. Like the 70/80s, the Fed prematurely pivoted and inflation resumed. If your in the camp of this being a period of financial repression and a means to inflated away a lot of the debt, this drop in inflation was expected before the next wave of inflation arrives.
Thanks, Jay! I was looking forward to hearing your latest thoughts after the recent adjustment. I can't say I'm in I Bonds for the "long haul". Maybe two years max. I might jump on the 6.89% for now though.
Really no bad decisions as long as it works for what you're trying to do
Great video!
Thank you for sharing.
Thanks for watching!
Redeeming my I bonds and starting a T-bill ladder. I am three years into retirement and have 12 month emergency fund in high yield savings (4.8%) or no penalty CDs (4.75%).
Perfect use for either I-bonds or Tbills is when you've already got an emergency fund like you have. Good job!
Keep them. That's still a decent rate. Great video!
I purchased a $5000 paper i-bond with my tax return that I filed last month. Still haven't heard whether the IRS has evaluated the return and issued the bond. Does the issue date fall back to my filing date or could it be delayed by lazy IRS agents who don't finish until later this summer?
That's a good question. Honestly I don't know!
Yeah , blame it on the “lazy “ irs agents . Get a life .
@@ozzielinkin I worked for the government for 30 years. I know exactly what I'm talking about. Workers who have zero chance of getting fired get quite lazy compared to their counterparts outside the government.
4.30%
This includes a fixed rate of 0.90%
So isn't it a way better option to get t-bill for 4.7% now than I bond, as if interest rate falls in next 12 months, the price of t-bill you hold will actually increase if you decide to sell?
You could do that for sure
Hey Jay I purchased my I bonds on 12-01-21. When the fixed rate was zero. For May 2023 the interest rate will be just 3.4 for me since I will not get the 0.9 fixed rate. Does this mean my last 6 month period before this new rate will be on 06-01-23 which was 6.48. If that is the case and I sell on 09-01-2023 I will Just loose the last 3 months which will be at 3.4. Please confirm.
If you purchased in December you're going to be 3 mos behind the official interest rate changes. So the rate on your Ibonds won't change for another few months. But otherwise yes, you lose the last 3 months if you sell prior to 5 years. So just wait until you've earned 3 mos at the 3.4% before selling if that's your plan
isn't 10k the limit for I-Bonds? What do you mean "adding to position". It's such a low amount, how is this relevant?
Yes, 15k if you get a tax refund. Many people max them out every year and end up with sizeable I-bonds positions after a few years
I purchased my Ibonds on 4-27-22, now that rates are coming down on them when is the ideal time to sell it now and put in other opportunities. I’m confused as to what rate and when on my current I bond, can anyone help?
If you're really set on selling, the ideal time would be 3 months after your Ibonds switch to the lower rate, that way you're forefitting the least amount of interest. You can check by logging into treasury direct and clicking into each series of Ibonds you have to see the current rate they're paying
@@JayFairbrother thank you
How can you have a crash when the rate for the bonds are fixed the moment that you buy them?
The rate adjusts every 6 months. So it’ll be earning half of what it was this period…
@@JayFairbrother I have so little invested in I bonds that it really doesn't make a difference.
@Jay, another nice video. I have a tax refund amount + amount from checking account around 25K. I never went for HYSA/CD/I-Bonds/T-Bills due to market volatility and less knowledge. I am medium term investor and I can planning for 1 year to start with. Shall I go for I-Bond in April with 10K, so (6.89+3.4)/2 -> 5.2%-last 3mo interest with 3.4%-> 4.2% overall? and also 10K with 12 months of T-bills with 4.2%? I have few grands in robinhood cash interest for 4.3% already. what do you suggest?
I know you are not a financial advisor, but want to get your friendly suggestion or your experience.
I think Tbills are better if you're sure it's only for 1 yr. Just a smoother transaction as the money will automatically go back to your account after the 1yr is up, where you'd have to remember to redeem the Ibonds yourself. I-bonds are meant to be for longer term (hence the interest penalty). But it's not a big difference either way as you can see with how much interest you'd earn in each of them
@@JayFairbrother Nice suggestion. I have 40K to invest and never had Ibond, TB, so do you suggest everything to T-Bill ladder or park something to Ibond. Minimum should be 1 year but if I dont need money after 1 year, I can continue longer too.
@@ArunKLogan Totally up to you and what you want out of your money. Remember the Ibond limit is 10k per year, so you couldn't put the full 40k there even if you wanted :)
@@JayFairbrother Yes I understand the limit of 10K, but thinking of 10K in Ibond for 2-3 years, 10K T-bills, 20K in HYSA. Does it pretty ok or 20K in T bill and the rest in HYSA?
Buy in April for 6.89% followed by 3.79% for the second six months. And then hold for 16 months and redeem for 5.4% return.
Aren’t you the same guy that said you are selling/redeeming ibonds in 2023??
@@brandon8531 for those who didn’t load up in 2022, April is the last time to buy. But I won’t need to do so!
@@brandon8531 I saw that a few days ago too
@@IwasRetired Make up your mind dude
@@mattflower3642 I have gifts that I will receive and thus will not buy this last chance to get a good I bond rate. I already have my bond, which I will redeem once it reaches the right month.
Thanks Jay. We keep iBonds long term. We’ll buy half of the limit before 5/1 and see what the fixed rate does before making a decision to buy the remaining half.
Good plan. It doesn't seem like much now, but that 0.4% fixed will only look more and more attractive as interest rates fall in the future. Wasn't too long ago where that would have doubled the return you were getting in a HYSA!