iSavings bonds yielding 7.12% currently

[fareastwarriors]

1 hour ago, RedLion said:

Is there a way to sell the treasuries that you buy at treasury direct without transferring them to a brokerage account? Liquidity would be my main reason to do this in a brokerage account, but I do have a treasury direct account and did buy some $100 increments of TIPS just to see that it could be done. For me this is a cash/money market substitute that I want to be readily liquid, so I really like being able to sell them right away commission free through Schwab. 

 

 

You could always do a ladder but yeah, you can't just sell. 

[ValueMaven]

I bought the TIP ETF this morning ... might buy some on TDirect as well 

Edited September 19, 2022 by ValueMaven

[ValueMaven]

6m t-bill just hit 3.9% ... upcoming auction on the 26th as well ... seems attractive 

[fareastwarriors]

There’s an Easier Way To Buy Series I Bonds and Earn 9.62%

Fintech app Yotta recently released a feature that lets users avoid the clunky TreasuryDirect website.

[ValueMaven]

terrible article - total marketing spin.  the article doesnt talk about any of the advantages of this new site ... or even how it works.  I expect more from even Bloomberg 

[CassiusKing1]

I have experienced no issues with the TreasuryDirect site.  Link outside account, Buy, wait, redeem.

[longterminvestor]

iSavings bonds going to 6.47% after todays CPI Print.  

[randomep]

On 10/13/2022 at 12:58 PM, longterminvestor said:

iSavings bonds going to 6.47% after todays CPI Print.  

 

huh? sorry are you saying that the ibonds will go from 9.62 to 6.47?

[ValueMaven]

Yes - that is the Nov 1 reset rate

[Gregmal]

Looks like you bigwigs are getting pinched by $30 a month with the new reset. Big drop in purchasing power!

[Spekulatius]

2 hours ago, Gregmal said:

Looks like you bigwigs are getting pinched by $30 a month with the new reset. Big drop in purchasing power!

Actually our purchasing power remains the same.

[valuehawk91]

Tried to buy some I-bonds in the last week. I succeed in creating the account, but never got a verification.

It says account already exists, but no way to retrieve yet.

[CorpRaider]

11 minutes ago, valuehawk91 said:

Tried to buy some I-bonds in the last week. I succeed in creating the account, but never got a verification.

It says account already exists, but no way to retrieve yet.

Aaaaaaand you're locked out.  Now all you have to do is get a wax seal from the white wizard to add a bank account.  No sweat.

[valuehawk91]

2 hours ago, CorpRaider said:

Aaaaaaand you're locked out.  Now all you have to do is get a wax seal from the white wizard to add a bank account.  No sweat.

 

Haaha Decided to give them a call around 3, their office is closes at 5, or 5:30.

I got the message they already have a high volume and aren't taking on any new calls.

[Guest]

Looks like the Nov bonds have a .40% fixed rate on top of the inflation rate. 

[ValueMaven]

Yea that fixed rate is a nice addition and a surprise -- will be maxing out again 

[Ross812]

17 hours ago, valuehawk91 said:

 

Haaha Decided to give them a call around 3, their office is closes at 5, or 5:30.

I got the message they already have a high volume and aren't taking on any new calls.

 

I got locked out of my account earlier this summer and spent 6 hours on hold one day. You are going to lean all the hold music and their fund facts!

[valuehawk91]

On 11/2/2022 at 11:51 AM, Ross812 said:

 

I got locked out of my account earlier this summer and spent 6 hours on hold one day. You are going to lean all the hold music and their fund facts!

 

It only took 1.5 hours. Phew! Call back feature would have been much better if you one has to wait 6 hours.

The issue was with hotmail/live domain during the time I signed up. The sign up emails were not being sent. lol

Glad it got resolved!

[Ross812]

2 hours ago, valuehawk91 said:

 

It only took 1.5 hours. Phew! Call back feature would have been much better if you one has to wait 6 hours.

The issue was with hotmail/live domain during the time I signed up. The sign up emails were not being sent. lol

Glad it got resolved!

 

For me, I was trying to update bank information. I've had an account since 2008 or 09 and had multiple checking accounts linked (you used to not have to get the wizard's seal). I deleted two accounts no problem, deleted the third and my account was locked for suspicious activity. 

 

The agrivating thing was most of the time I called, it would go through the menu and just hang up due to high call volume. They conditioned me to be thankful to be on hold!

 

We have a lot of i-bonds so I was pretty motivated to regain access.

[CorpRaider]

I locked myself out once and couldn't remember my reset questions.  I was guessing favorite movie for like 12 attempts. The guy just finally let me in. haha

Edited November 5, 2022 by CorpRaider

[RedLion]

On 11/1/2022 at 6:48 PM, stahleyp said:

Looks like the Nov bonds have a .40% fixed rate on top of the inflation rate. 

 

But you can lock in about 2% real rate by buying a 20 year TIPS, obviously those will fluctuate in value, but they sure look a lot more attractive with a 2% real rate rather than a negative real rate last year. 

[TwoCitiesCapital]

41 minutes ago, RedLion said:

 

But you can lock in about 2% real rate by buying a 20 year TIPS, obviously those will fluctuate in value, but they sure look a lot more attractive with a 2% real rate rather than a negative real rate last year. 

 

The liquidity is key. Anyone who bought TIPS over the last 12-18 months has lost money on a mark to market basis. 

 

Anyone buying iBonds has made ~8% over the last 12 months. 

 

Which one had the better "real" return? If rates keep rising, which one will have the better return over the next 6-12 months? If equities drop 20% over that time, which one would you want to own to sell to roll into stocks? 

 

"Real" yields only matter if you hold to maturity. If you're not holding to maturity, you're better of just ignoring it.  

[patience_and_focus]

9 hours ago, TwoCitiesCapital said:

 

The liquidity is key. Anyone who bought TIPS over the last 12-18 months has lost money on a mark to market basis. 

 

Anyone buying iBonds has made ~8% over the last 12 months. 

 

Which one had the better "real" return? If rates keep rising, which one will have the better return over the next 6-12 months? If equities drop 20% over that time, which one would you want to own to sell to roll into stocks? 

 

"Real" yields only matter if you hold to maturity. If you're not holding to maturity, you're better of just ignoring it.  

+1

 

And even if the intent is to hold till maturity there is opportunity risk. One could argue that the money (not tied up in 2% real returns for 20 years) could be used to intelligently buy equities when they are so beat up that they result in better than 2% real return over 20 years.

[lnofeisone]

20 hours ago, RedLion said:

 

But you can lock in about 2% real rate by buying a 20 year TIPS, obviously those will fluctuate in value, but they sure look a lot more attractive with a 2% real rate rather than a negative real rate last year. 

I wonder if i-bonds will have a higher fixed component in the future and aren't TIPS a major tax hassle (i.e., you have to pay taxes on your principal adjustments?).

[ValueMaven]

Anyone looking forward to 1/1/23 to add more I Bond exposure?  

I've been reading that you can buy an additional $5,000 in paper-bonds with a US Tax Return.  Although it is a process to convert those paper-bonds into electronic forum at Treasury Direct.