Ibonds: 7.1% return

[npaden]

Can you buy $5k before May 1 and $5k after?

Yes

 

[npaden]

Dumb question is there a penalty for pulling the money out or can you not pull it out?

You can’t for a year. After a year you can with a penalty of 3 months of interest. After 5 years no penalty.

 

[schmalts]

Just set up my account and purchased 10K. Tried to set up the Wife account and it did not go through for some verification BS and I would have to mail in some notarized for to complete it. Bummer.

 

[schmalts]

Can you buy $5k before May 1 and $5k after?

looks like it, you can buy 25$ every day if you want up to 10K

 

[Brittany Chukarman]

Just set up my account and purchased 10K. Tried to set up the Wife account and it did not go through for some verification BS and I would have to mail in some notarized for to complete it. Bummer.

Wife and I had to use separate email address's to set it up.

 

[MarvB]

Wife and I had to use separate email address's to set it up.

That’s odd, both of our accounts (wife and my own) are on the same email just had to do separate passwords for Treas. Direct

 

[MarvB]

Just set up my account and purchased 10K. Tried to set up the Wife account and it did not go through for some verification BS and I would have to mail in some notarized for to complete it. Bummer.

One other thing, you can purchase $10k each via separate accounts or you can purchase all $20k on one acct with the second $10k being as a “gift” and then transfer it over to her when her acct is set up.

 

[schmalts]

One other thing, you can purchase $10k each via separate accounts or you can purchase all $20k on one acct with the second $10k being as a “gift” and then transfer it over to her when her acct is set up.

Is there any tax difference if I gift it to my wife vs buy it in her name when cashed in?

 

[Wildabeest]

Just set up my account and purchased 10K. Tried to set up the Wife account and it did not go through for some verification BS and I would have to mail in some notarized for to complete it. Bummer.

They are using a third party authentication system called ID.me. It doesn’t work very well, and there’s tons of controversy about it. I’m actually heading to DC tomorrow to brief some politicians on alternatives.

 

[Big Fin]

Is there any tax difference if I gift it to my wife vs buy it in her name when cashed in?

No, not if you file a joint return.

 

[schmalts]

No, not if you file a joint return.

Thanks Randy. You should be an accountant with that knowledge of yours

 

[MarvB]

Lol, no Pat like Randy said
Once she gets her account set up you just go back into yours (I believe you have to hold them 5 days first for some reason) and then select her name, hit transfer (as a gift) in the drop down (mine has multiple names as I also use it to buy/gift/transfer EE bonds to the grandkids) and hit send!
Then when she goes into her acct they should be there.

 

[schmalts]

That’s odd, both of our accounts (wife and my own) are on the same email just had to do separate passwords for Treas. Direct

It isn't telling me what the problem is. Wish I knew

 

[MarvB]

It isn't telling me what the problem is. Wish I knew

Sound like something…gov’t

 

[Wind Gypsy]

Correct me if I'm wrong. If you buy before the end of April you will get six months of 7.1%, followed by six months of ~9%, followed by six more months of whatever the inflation is at six months from now, etc. However, if you wait until May you will go directly to 9% and miss the six months of 7.1%.

By the way, it takes a day or two to process the sale so factor that in when buying.

Can you help clarify - when you say "you will get six months of 7.1%, followed by six months of 9%" do you mean that if you bought on 4/30/22, your $ from 4/30-10/31 would grow at rate of 7.1%, and then increase on 11/1 compared to if you bought on 5/1 it would grow at a rate of 9% between 5/1 and 11/1?

I bought 10k in January and have $5k in returns going to ibonds but need to buy for the wife yet.

 

[MarvB]

Can you help clarify - when you say "you will get six months of 7.1%, followed by six months of 9%" do you mean that if you bought on 4/30/22, your $ from 4/30-10/31 would grow at rate of 7.1%, and then increase on 11/1 compared to if you bought on 5/1 it would grow at a rate of 9% between 5/1 and 11/1?

I bought 10k in January and have $5k in returns going to ibonds but need to buy for the wife yet.

The rate applies for the first six months you own the bond. If you bought at 7.12 on the “last day” of that 6-month series it would be locked there for the next 6 months even though the new series went to 9+ the next day. But the sword cuts both ways so you just have to go with gut/trends on pulling the trigger. Won’t ever go “negative” however.

 

[MarvB]

Current estimates:



So If you purchase I Bonds before April 30, you can guarantee a one-year return of very close to 8.4%.

 

[RobG]

Can you help clarify - when you say "you will get six months of 7.1%, followed by six months of 9%" do you mean that if you bought on 4/30/22, your $ from 4/30-10/31 would grow at rate of 7.1%, and then increase on 11/1 compared to if you bought on 5/1 it would grow at a rate of 9% between 5/1 and 11/1?

I bought 10k in January and have $5k in returns going to ibonds but need to buy for the wife yet.

I agree with MarvB, although I'm not sure what he means by the sword cutting both ways.

Again, don't try to buy on the last day of the month because it takes a day or two to process.

 

[Southern Elk]

Thanks Randy. You should be an accountant with that knowledge of yours

Are you going to take advice from some random guy on the Internet?

 

[MarvB]

I agree with MarvB, although I'm not sure what he means by the sword cutting both ways.

Mean that just like trying to time anything market based, you win some you loose some. Though I-bonds aren’t really short term volatile.