💎Get our popular bond course bundle & save $80: www.diamondnestegg.com/home#_paa2isucf 💎Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners 💎Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters 💎And join our super-supersaver membership for regular market updates & monthly live member Q&As ua-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin >>>>>>>>>> WATCH NEXT >> Our Bond Courses vs UA-cam Membership | Which Is Right For You: ua-cam.com/video/H5h4Eyh0hjo/v-deo.html >> Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: ua-cam.com/video/uXPzbje1g2E/v-deo.html >> Bond Masters Course Sneak Peak | How To Build A Bond Ladder: ua-cam.com/video/p90IDmXn19s/v-deo.html >>>>>>>>>> SOURCES & REFERENCED VIDEOS: Why Are Long Bond Yields Up Despite Fed Rate Cut: ua-cam.com/video/cckNpVQtzVg/v-deo.html I-Bond Fixed Rate Calculation 1: ua-cam.com/video/g1mVtOxYEHE/v-deo.html I-Bond Fixed Rate Calculation 1: ua-cam.com/video/qYXMfQzYhgs/v-deo.html TIPS vs I-Bonds: ua-cam.com/video/uXPzbje1g2E/v-deo.html How To Buy Corporate Bonds on Fidelity: ua-cam.com/video/fMmF59tMPxk/v-deo.html How To Buy Corporate Bonds on Schwab: ua-cam.com/video/bKV2pHqtmiI/v-deo.html www.bea.gov/news/2024/personal-income-and-outlays-august-2024 www.wsj.com/livecoverage/stock-market-today-pce-inflation-data-09-27-2024/card/fed-s-favorite-inflation-gauge-what-to-expect-from-august-pce-j3ZQOVO4Q6ZIpmocDNrt www.bls.gov/news.release/pdf/cpi.pdf www.treasurydirect.gov/auctions/upcoming/ www.fidelity.com/ www.schwab.com www.vanguard.com www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/ >>>>>>>>>> Here is the overview for Bond Beginners: 1. Bond Basics What A Bond Is & How A Bond Works Why Invest In Bonds New Issue vs Secondary Market Bonds Interest Rates & Bond Prices Current Yield & Yield To Maturity Always Remember This! Buying At Par, Above Par & Below Par Different Types Of Bonds Wrap-Up 2. The Risks Of Bond Investing Seven Key Bond Risks Credit Risk Interest Rate Risk Reinvestment Risk/Call Risk Inflation Risk Liquidity Risk Currency Risk & Country Risk Bond Risk Mitigation Strategies Wrap-Up 3. US Treasuries Overview What Are US Treasuries Why Invest In Treasuries Where Can You Buy Treasuries How Are Treasuries Taxed Wrap-Up 4. Treasury Bills What Are Treasury Bills (T-Bills) When Do T-Bill Auctions Happen Where Should You Buy At Auction Auto-Roll When Buying At Auction Where To Find Recent Auction Results High Rate vs Investment Rate Reopening Auctions Cash Management Bills (CMBs) Buying & Selling On Secondary Market Wrap-Up 5. Treasury Notes & Bonds What Are Treasury Notes & Bonds When Do Auctions Happen Buying Treasury Notes & Bonds Auction High Yield vs Interest Rate Floating Rate Notes (FRNs) Treasury Zeros (STRIPS) Wrap-Up 6. TIPS (Inflation-Protected) What Are TIPS When Do TIPS Auctions Happen Nominal vs Real Yields Negative Yields How Do You Adjust TIPS For Inflation Taxes On Phantom Income Secondary Market Liquidity Wrap-Up 7. I-Bonds (Inflation-Protected) What Are I-Bonds How Does I-Bond Interest Work I-Bonds vs TIPS The Annual I-Bond Limit Wrap-Up 8. Agency Bonds The Universe Of Bonds What Are Agency Bonds How Are Agency Bonds Taxed Treasuries vs Agencies Who Might Want To Consider Agencies Yield-To-Call & Yield-To-Worst Where Can You Buy Agency Bonds Wrap-Up 9. Municipal Bonds Our Bond Universe Gets More Complex What Are Municipal Bonds How Safe Are Munis How Are Munis Taxed The De Minimis Rule Social Security & Medicare Premiums Treasuries, Agencies & Munis Who Might Want To Consider Munis Wrap-Up 10. Corporate Bonds Our Bond Universe Is Complete What Are Corporate Bonds How Safe Are Corporates Corporate Bond Hierarchies Five Key Features Of Corporate Bonds How Are Corporates Taxed Treasuries vs Corporates, Etc. Who Might Want To Buy Corporates Wrap-Up >>>>>>>>>> Here is the overview for Bond Masters: 1. Stocks vs Bonds Historical Performance Are Bonds Really Less Volatile Why Invest In Bonds Accumulation vs Decumulation Allocation of Stocks vs Bonds Wrap-Up 2. Which Bonds Might Be Right For You Treasuries & Other Types of Bonds Nominal vs Real Yields Inflation vs Non-Inflation-Protected Taxable vs Tax-Advantaged Accounts Wrap-Up 3. Bond Ladders & Other Bond Strategies Normal vs Inverted Yield Curve What Is A Bond Ladder 5 Important Bond Laddering Questions Laddering When Rates Are Rising Laddering When Rates Are Falling Laddering When Rates Are Uncertain What Is A Bullet What Is A Barbell Wrap-Up 4. Holding to Maturity vs Selling Early Why Hold to Maturity When To Sell Early Before Maturity Tax Implications Of Selling Early Wrap-Up 5. Individual Bonds, Bond Funds, Etc. Why Buy Individual Bonds Why Buy Bond Funds Bond Fund Considerations Key Bond Fund Concepts CDs vs Treasuries Other High-Yield Investments Wrap-Up 6. Our B.E.S.T. Model Portfolios By Age Our B.E.S.T Model Portfolios By Age Model Portfolios In The Industry B.E.S.T Model Portfolio Difference How Much Do You Need To Retire? How I Use The Rules of 100, 110, & 120 B.E.S.T Model Portfolios (20s) B.E.S.T Model Portfolios (30s & 40s) B.E.S.T Model Portfolios (50s & 60s) B.E.S.T Model Portfolios (70s+) Wrap-Up 7. The Decumulation Phase What Is The Decumulation Phase? Bear Markets & Recessions What Can You Do In Bad/Bear Markets Decumulation Tax Considerations The 4% Rule The Bucket Strategy The Flooring Approach Jen’s Bucket Strategy With A Twist Wrap-Up >>>>>>>>>> Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY
Deficits and debt don't seem matter anymore - - until they do. And they will! I consider my I-bonds to be more of an insurance policy than an investment. So maxing out on annual contributions is more important than if the rate is 0 or 1%. Together with real estate and GLD, I'll be ready for the debt crisis when the day of reckoning arises.
A comment on T-Bills regarding their rates this week: I am thinking about stopping my continuing ladder, not because I think they are a bad investment, but to make a point. The treasury is pushing down rates that they control at the short end. I usually buy the 26-week. The 6-month is now down .89% from the beginning of the year. We just had a .5% rate cut. Even if they go another .25% next time, rates have still fallen more than that. The treasury continues to push the rates down and they are getting free money. The only way that will stop is if the demand goes down. I know my little bit will not even be a blip on their radar, but if people start talking about it, eventually it might achieve critical mass. I get it, rates are going to go down, but they are pushing them down faster than they should go, based on their fiscal policy, just because they can.
I'm lazy. I'll continue to limp along with returns on my money market funds at Vanguard. If you invested and reinvested in bond funds, they are still below water. If you believe inflation is tamed, they might be worth the risk.
@@LogoTimeClark I use I bonds as part of my emergency fund That 1.3 percent base rate is it a great deal considering you get the inflation rate on top of it 4 years ago the 10-year treasury was paying a half a percent I will continue to add to them every month until the base rate goes away
I'm going to use spare cash this year to pay taxes on a roth conversion and take advantage of the lower rate brackets still in effect. By maxing out my bracket I'm in but not spill over to next one. So much uncertainty with the next 10 years and taxes and so forth. I have so many varied investments in ibonds, taxable brokerage, HSA, 401k, and roth ira. I think a conversion this year is in order.
Do what makes sense to you but in my 73 years I’ve made very few good decisions based on fear, and I don’t think the future is more uncertain than it always is.
@@gstlb it's not fear it's that the 22% tax bracket won't be more generous than it is now. Once I get social security in 5 years everything will be in the 24% bracket assuming they don't tighten. It's a strategy to minimize taxes and grow tax free. Then maybe only half my millions will be subject to RMD in my 70s.
Buying Small Caps now .EV sector.. seeing Double -digit gains. Hopefully interest rate cuts and China Stimulus continues to help. Thumbs Up video/ comments. Thanks.
EV and "green" energy sector is out of favor and losing support rapidly, even among democrats. Nuclear powered data centers is in with CJJ, CEG and VST poised to outperform!
The only reason I don't wait until the very last week to buy: something happens to the TD website during that time that prevents me from submitting the order and I miss that opportunity. Small chance, but it's happened before.
I can't buy any I Savings Bonds for personal gratification as I maximize my purchase in January. I cash zero fixed Bonds. I'll most likely purchase 10k for my LLC in new money in October. Cash out and upgrade personal account Bonds again in January. Sadly disappointed we can't buy I savings bond with federal income taxes anymore. I over estimate my contributions to grab extra 5k in bond.
@@o4ktr33123 you totally missed my point. I over paid taxes to get the extra 5k in paper bond. Now I'm limited to the 10k electronic which was also planned for. After checking, I don't have any zero fixed bond.
If married, you could buy for your spouse and/or vice versa and hold in the gift box until 2025. Just don't take it out ahead of January and you can't buy more in 2025 (unless you redo the gift box strategy for future years).
a quick question. you have mentioned the current fixed rate of I BOND is lower than the real rate of TIPs of 5, 10 and 30 yrs. what about 7 and 20 yrs TIPs, then? thanks!
Hubby and I will purchase gift I-bonds in Oct. I'm sooo disappointed the option to purchase an additional $5,000 paper bond with a tax refund will no longer be available as of Jan 1, 2025!
Though you can't buy paper I-bonds with income tax refunds anymore, you can still buy electronic/digital I-bonds. I guess if you were wanting to present a paper I-bond as a gift, a digital one would be a letdown, but they're just as valuable.
@@o4ktr33123no. You can max out the digital and still be allowed to get more i bonds in the same year only by getting paper bonds via the tax refund. This sucks they stopped it
Based on the data so far, I'm projecting a fixed rate of 1.2% in November. I've already bought for 2024, and come January I will be buying more, to replace 0% I bonds.
Are you selling your 0% and repurchasing? I considered this, but you’d also have to consider the length of time you’ve had the bond and if it increases your tax bracket.
Hi Jennifer, what's the difference between the "Daily Par Yield Rates" (that you show us) and the "Daily Treasury Bill Rates" page? These numbers don't match on the Treasury website and I'm wondering which one to follow. Thanks
If you look back at the videos from around 2022 you will find one about everything ibond. You can cash them in after 1yr with a penalty or after 5yrs without penalty.
For I bonds issued May 1, 2024 to October 31, 2024. Fixed at 1.30% . My Q is if I buy last week of Oct. My rate is locked in at 1.30% Or in november it will change to the lower fixed rate?
You get 6 months at each rate. So the October rate would be for the first 6 months, then it would be the November rate for 6 months, then it would be the rate from next May for 6months, etc.
If you buy the I bond in the last week of October, the fixed rate will be 1.30% for the life of the bond. It will not change in the future. The inflation rate of the I bond will change every 6 months. The TreasuryDirect site confirms this.
I bought my 10k at the 1.3% fixed rate, what I do in 2025 will determine whether I convert my 10k at a .4% fixed rate into new iBonds or if I consider finding 10k in cash to buy.
So I have been buying some ibonds every year since 2021 so my question is if I want to cash them out I have to wait 5 years since my first purchase on 2021? Or on every purchase is 5 years from that date?
With iBonds, you can cash them out 1 year after issue, but you will lose the last 3 months of interested if the are less then 5 years old. Depending on your circumstances, losing the last 3 months of interest is a small price to pay for the liquidity and/or for the ability to put the funds into an investment with a higher expected return (e.g. possibly even back into iBonds with a better yield).
Thanks for the update Jennifer! We’ll be gifting each other the last week of Oct to lock in those rates. Thanks for the reminder! Do you have the video handy on how to do the gift buying on TD? Also concerning the Verizon corporate bond. Is it local & state tax exempt? Can’t remember off hand. I’m not sure about the 30 year duration though. Thank again!!❤💎🪺🥚
Hi Debra! Is this the I-Bond gifting video you're looking for: ua-cam.com/video/bSoZJJypSAQ/v-deo.html Interest earned on corporate bonds is generally taxable on local, state & federal levels when purchased in a taxable brokerage account.
Staying away from government issued securities because money markets and HY saving accounts have better rates. VMFXX and SPAXX will do for now and I will use Social Security as my inflation protection.
Buying Vangaurds VUSXX Money Market Fund. Does this make sense? Now my question is which is best to buy at this time, despite fluctuations in capital market. I really need to diversify.
Bought me some of the Goldman Sachs Corp Bond to complete my long-term bond portfolio. Keeping the rest of my cash in SPAXX for now. Will invest in the market when it drops.
I would not recommend buying iBonds at this time if you are leaving it to a beneficiary. Treasury Direct is 6 months behind in processing claims if you are inheriting an iBond.
They're behind AT LEAST 6 months, meaning it can take even longer, i.e., 9 months, 12 months, etc. until they get your paperwork completed. I'm now at 7 months and counting for the paper pushers to get my documents processed.
Thinking about tax free withdraws for Ibonds as college savings alternative. My son is 5 yrs old, so 1.3% fixed rate for next 13 yrs growing tax free if used for education sounds like a good idea.
I-bonds are state tax free, but you still pay federal tax on your earnings. You should consider a "529" college savings account. The earnings are both federal and state tax free, as long as the money is spent on college . After he graduates, if there are still funds available, as of this year, you can use the new Secure 2.0 act to transfer unused funds into a Roth IRA for yourself or your beneficiaries (subject to limitations).
Ahh, the I-Bond rate video! 🥳 I've been waiting for you to pull out your crystal ball, Jen! 👍 I've been looking at all the inflation figures over the past few months with the I-Bond rate in mind. Inflation has been coming down and I figured the I-Bond rate will go down with it. I have been pulling in my planned I-Bond purchases to take advantage of the current rate. My goal is to get as much pulled in before the announcement. I have a savings goal in mind with I-Bonds and I'll probably fall a few hundred dollars short of it at the current rate. We do what we can, right? 🙂 I also noticed the corporate bond offers on Fidelity suddenly drying up. 🥺 I'm going to watch your "10 Year T-Note at 6%" next. Gotta get to the bottom of this! 🧐 Verizon's debt load always scares me. They have just as much debt as is their market capitalization. It's really high! Perhaps Verizon has enough pricing power and guaranteed revenue streams to support the debt load. 🤷♂
@@DiamondNestEgg Thanks for the reply, Jen! All is well here. 🙂 I continue to quietly catch up on a small backlog of your videos as I calmly and gently dollar cost average into a mix of fixed income instruments and equities. 👍
2.8%? No thanks, I will stay with 4 weeks bills. Idk who is going to buy I-bonds with 2.8%. And remember, you have to wait 6 month before u get any dividends
Probably not many right away. Those of us who like ibonds will probably try to load up as much as possible in October and then sit out buying again until the new year. Once March or April rolls around, we’ll start making plans for buying again.
💎Get our popular bond course bundle & save $80: www.diamondnestegg.com/home#_paa2isucf
💎Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
💎Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
💎And join our super-supersaver membership for regular market updates & monthly live member Q&As ua-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin
>>>>>>>>>>
WATCH NEXT
>> Our Bond Courses vs UA-cam Membership | Which Is Right For You: ua-cam.com/video/H5h4Eyh0hjo/v-deo.html
>> Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: ua-cam.com/video/uXPzbje1g2E/v-deo.html
>> Bond Masters Course Sneak Peak | How To Build A Bond Ladder: ua-cam.com/video/p90IDmXn19s/v-deo.html
>>>>>>>>>>
SOURCES & REFERENCED VIDEOS:
Why Are Long Bond Yields Up Despite Fed Rate Cut: ua-cam.com/video/cckNpVQtzVg/v-deo.html
I-Bond Fixed Rate Calculation 1: ua-cam.com/video/g1mVtOxYEHE/v-deo.html
I-Bond Fixed Rate Calculation 1: ua-cam.com/video/qYXMfQzYhgs/v-deo.html
TIPS vs I-Bonds: ua-cam.com/video/uXPzbje1g2E/v-deo.html
How To Buy Corporate Bonds on Fidelity: ua-cam.com/video/fMmF59tMPxk/v-deo.html
How To Buy Corporate Bonds on Schwab: ua-cam.com/video/bKV2pHqtmiI/v-deo.html
www.bea.gov/news/2024/personal-income-and-outlays-august-2024
www.wsj.com/livecoverage/stock-market-today-pce-inflation-data-09-27-2024/card/fed-s-favorite-inflation-gauge-what-to-expect-from-august-pce-j3ZQOVO4Q6ZIpmocDNrt
www.bls.gov/news.release/pdf/cpi.pdf
www.treasurydirect.gov/auctions/upcoming/
www.fidelity.com/
www.schwab.com
www.vanguard.com
www.treasurydirect.gov/savings-bonds/i-bonds/i-bonds-interest-rates/
>>>>>>>>>>
Here is the overview for Bond Beginners:
1. Bond Basics
What A Bond Is & How A Bond Works
Why Invest In Bonds
New Issue vs Secondary Market Bonds
Interest Rates & Bond Prices
Current Yield & Yield To Maturity
Always Remember This!
Buying At Par, Above Par & Below Par
Different Types Of Bonds
Wrap-Up
2. The Risks Of Bond Investing
Seven Key Bond Risks
Credit Risk
Interest Rate Risk
Reinvestment Risk/Call Risk
Inflation Risk
Liquidity Risk
Currency Risk & Country Risk
Bond Risk Mitigation Strategies
Wrap-Up
3. US Treasuries Overview
What Are US Treasuries
Why Invest In Treasuries
Where Can You Buy Treasuries
How Are Treasuries Taxed
Wrap-Up
4. Treasury Bills
What Are Treasury Bills (T-Bills)
When Do T-Bill Auctions Happen
Where Should You Buy At Auction
Auto-Roll When Buying At Auction
Where To Find Recent Auction Results
High Rate vs Investment Rate
Reopening Auctions
Cash Management Bills (CMBs)
Buying & Selling On Secondary Market
Wrap-Up
5. Treasury Notes & Bonds
What Are Treasury Notes & Bonds
When Do Auctions Happen
Buying Treasury Notes & Bonds
Auction High Yield vs Interest Rate
Floating Rate Notes (FRNs)
Treasury Zeros (STRIPS)
Wrap-Up
6. TIPS (Inflation-Protected)
What Are TIPS
When Do TIPS Auctions Happen
Nominal vs Real Yields
Negative Yields
How Do You Adjust TIPS For Inflation
Taxes On Phantom Income
Secondary Market Liquidity
Wrap-Up
7. I-Bonds (Inflation-Protected)
What Are I-Bonds
How Does I-Bond Interest Work
I-Bonds vs TIPS
The Annual I-Bond Limit
Wrap-Up
8. Agency Bonds
The Universe Of Bonds
What Are Agency Bonds
How Are Agency Bonds Taxed
Treasuries vs Agencies
Who Might Want To Consider Agencies
Yield-To-Call & Yield-To-Worst
Where Can You Buy Agency Bonds
Wrap-Up
9. Municipal Bonds
Our Bond Universe Gets More Complex
What Are Municipal Bonds
How Safe Are Munis
How Are Munis Taxed
The De Minimis Rule
Social Security & Medicare Premiums
Treasuries, Agencies & Munis
Who Might Want To Consider Munis
Wrap-Up
10. Corporate Bonds
Our Bond Universe Is Complete
What Are Corporate Bonds
How Safe Are Corporates
Corporate Bond Hierarchies
Five Key Features Of Corporate Bonds
How Are Corporates Taxed
Treasuries vs Corporates, Etc.
Who Might Want To Buy Corporates
Wrap-Up
>>>>>>>>>>
Here is the overview for Bond Masters:
1. Stocks vs Bonds
Historical Performance
Are Bonds Really Less Volatile
Why Invest In Bonds
Accumulation vs Decumulation
Allocation of Stocks vs Bonds
Wrap-Up
2. Which Bonds Might Be Right For You
Treasuries & Other Types of Bonds
Nominal vs Real Yields
Inflation vs Non-Inflation-Protected
Taxable vs Tax-Advantaged Accounts
Wrap-Up
3. Bond Ladders & Other Bond Strategies
Normal vs Inverted Yield Curve
What Is A Bond Ladder
5 Important Bond Laddering Questions
Laddering When Rates Are Rising
Laddering When Rates Are Falling
Laddering When Rates Are Uncertain
What Is A Bullet
What Is A Barbell
Wrap-Up
4. Holding to Maturity vs Selling Early
Why Hold to Maturity
When To Sell Early Before Maturity
Tax Implications Of Selling Early
Wrap-Up
5. Individual Bonds, Bond Funds, Etc.
Why Buy Individual Bonds
Why Buy Bond Funds
Bond Fund Considerations
Key Bond Fund Concepts
CDs vs Treasuries
Other High-Yield Investments
Wrap-Up
6. Our B.E.S.T. Model Portfolios By Age
Our B.E.S.T Model Portfolios By Age
Model Portfolios In The Industry
B.E.S.T Model Portfolio Difference
How Much Do You Need To Retire?
How I Use The Rules of 100, 110, & 120
B.E.S.T Model Portfolios (20s)
B.E.S.T Model Portfolios (30s & 40s)
B.E.S.T Model Portfolios (50s & 60s)
B.E.S.T Model Portfolios (70s+)
Wrap-Up
7. The Decumulation Phase
What Is The Decumulation Phase?
Bear Markets & Recessions
What Can You Do In Bad/Bear Markets
Decumulation Tax Considerations
The 4% Rule
The Bucket Strategy
The Flooring Approach
Jen’s Bucket Strategy With A Twist
Wrap-Up
>>>>>>>>>>
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that:
1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances
2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY
Deficits and debt don't seem matter anymore - - until they do. And they will! I consider my I-bonds to be more of an insurance policy than an investment. So maxing out on annual contributions is more important than if the rate is 0 or 1%. Together with real estate and GLD, I'll be ready for the debt crisis when the day of reckoning arises.
Nobody on YT does this better than Jennifer does here.
I like the fixed rate on the IBond. It's good for the life of the bond and at 4.8 combined, is right in line with other notes and bonds currently.
The interest rate on a Series I savings bond changes every 6 months, based on inflation. The rate can go up. The rate can go down.
A comment on T-Bills regarding their rates this week: I am thinking about stopping my continuing ladder, not because I think they are a bad investment, but to make a point. The treasury is pushing down rates that they control at the short end. I usually buy the 26-week. The 6-month is now down .89% from the beginning of the year. We just had a .5% rate cut. Even if they go another .25% next time, rates have still fallen more than that. The treasury continues to push the rates down and they are getting free money. The only way that will stop is if the demand goes down. I know my little bit will not even be a blip on their radar, but if people start talking about it, eventually it might achieve critical mass. I get it, rates are going to go down, but they are pushing them down faster than they should go, based on their fiscal policy, just because they can.
Curious about Tennessee Valley bonds after this hurricane. Did i see that a dam failed or did it hold?
I'm lazy. I'll continue to limp along with returns on my money market funds at Vanguard. If you invested and reinvested in bond funds, they are still below water. If you believe inflation is tamed, they might be worth the risk.
@@LogoTimeClark
I use I bonds as part of my emergency fund
That 1.3 percent base rate is it a great deal considering you get the inflation rate on top of it
4 years ago the 10-year treasury was paying a half a percent
I will continue to add to them every month until the base rate goes away
I'm going to use spare cash this year to pay taxes on a roth conversion and take advantage of the lower rate brackets still in effect. By maxing out my bracket I'm in but not spill over to next one. So much uncertainty with the next 10 years and taxes and so forth. I have so many varied investments in ibonds, taxable brokerage, HSA, 401k, and roth ira. I think a conversion this year is in order.
Good plan.👍🏻
Do what makes sense to you but in my 73 years I’ve made very few good decisions based on fear, and I don’t think the future is more uncertain than it always is.
@@gstlb it's not fear it's that the 22% tax bracket won't be more generous than it is now. Once I get social security in 5 years everything will be in the 24% bracket assuming they don't tighten. It's a strategy to minimize taxes and grow tax free. Then maybe only half my millions will be subject to RMD in my 70s.
@@mamalovesthebeach437
Buying Small Caps now .EV sector.. seeing Double -digit gains. Hopefully interest rate cuts and China Stimulus continues to help. Thumbs Up video/ comments. Thanks.
EV and "green" energy sector is out of favor and losing support rapidly, even among democrats. Nuclear powered data centers is in with CJJ, CEG and VST poised to outperform!
@@DavidLitman-ph9lu Green Semi tractors should lead with Govt emission regulations globally, EV vehicle sales should pick up by summer.
I'm going to buy some more I Bonds and take your advice
The only reason I don't wait until the very last week to buy: something happens to the TD website during that time that prevents me from submitting the order and I miss that opportunity. Small chance, but it's happened before.
Jennifer has mentioned in past videos the importance of giving yourself a window for the unexpected! 👍
I can't buy any I Savings Bonds for personal gratification as I maximize my purchase in January. I cash zero fixed Bonds. I'll most likely purchase 10k for my LLC in new money in October. Cash out and upgrade personal account Bonds again in January. Sadly disappointed we can't buy I savings bond with federal income taxes anymore. I over estimate my contributions to grab extra 5k in bond.
Though you can't buy paper I-bonds with income tax refunds anymore, you can still buy electronic/digital I-bonds.
@@o4ktr33123 you totally missed my point. I over paid taxes to get the extra 5k in paper bond. Now I'm limited to the 10k electronic which was also planned for. After checking, I don't have any zero fixed bond.
If married, you could buy for your spouse and/or vice versa and hold in the gift box until 2025. Just don't take it out ahead of January and you can't buy more in 2025 (unless you redo the gift box strategy for future years).
Can you please do a video on quantitative easing and tightening? How does this impact the bond markets?
a quick question. you have mentioned the current fixed rate of I BOND is lower than the real rate of TIPs of 5, 10 and 30 yrs. what about 7 and 20 yrs TIPs, then? thanks!
Hubby and I will purchase gift I-bonds in Oct. I'm sooo disappointed the option to purchase an additional $5,000 paper bond with a tax refund will no longer be available as of Jan 1, 2025!
Though you can't buy paper I-bonds with income tax refunds anymore, you can still buy electronic/digital I-bonds. I guess if you were wanting to present a paper I-bond as a gift, a digital one would be a letdown, but they're just as valuable.
@@o4ktr33123no. You can max out the digital and still be allowed to get more i bonds in the same year only by getting paper bonds via the tax refund. This sucks they stopped it
Based on the data so far, I'm projecting a fixed rate of 1.2% in November. I've already bought for 2024, and come January I will be buying more, to replace 0% I bonds.
Are you selling your 0% and repurchasing? I considered this, but you’d also have to consider the length of time you’ve had the bond and if it increases your tax bracket.
@@mamalovesthebeach437 No, i'll sell the 0% later.
We bought in 2024 also, but am considering gifting each other to lock in the rate before November.
I’m doing the same thing! That’s fun when I read your comment
What will I get if I buy the ibond now?
Hi Jennifer, what's the difference between the "Daily Par Yield Rates" (that you show us) and the "Daily Treasury Bill Rates" page? These numbers don't match on the Treasury website and I'm wondering which one to follow. Thanks
When is the next live video going to be done? I have some ideas on content you could offer in the future.
How do you buy corporate bonds on vanguard?
Thank you so much for video. Mu questions is can bonds be sold and how to do that step by step ? Thank you.
If you look back at the videos from around 2022 you will find one about everything ibond.
You can cash them in after 1yr with a penalty or after 5yrs without penalty.
For I bonds issued May 1, 2024 to October 31, 2024. Fixed at 1.30% . My Q is if I buy last week of Oct. My rate is locked in at 1.30% Or in november it will change to the lower fixed rate?
You get 6 months at each rate. So the October rate would be for the first 6 months, then it would be the November rate for 6 months, then it would be the rate from next May for 6months, etc.
If you buy the I bond in the last week of October, the fixed rate will be 1.30% for the life of the bond. It will not change in the future. The inflation rate of the I bond will change every 6 months. The TreasuryDirect site confirms this.
@@hey_casey thanks. 1.30% "life" of the bond is great!!! Ok, I'll buy some last week of October. Thank you.
I bought my 10k at the 1.3% fixed rate, what I do in 2025 will determine whether I convert my 10k at a .4% fixed rate into new iBonds or if I consider finding 10k in cash to buy.
How can the inflattion rate only be 1.58perc? Everything else I've been reading states 2-2.5perc.
So I have been buying some ibonds every year since 2021 so my question is if I want to cash them out I have to wait 5 years since my first purchase on 2021? Or on every purchase is 5 years from that date?
On every purchase it is 5years from that date.
With iBonds, you can cash them out 1 year after issue, but you will lose the last 3 months of interested if the are less then 5 years old. Depending on your circumstances, losing the last 3 months of interest is a small price to pay for the liquidity and/or for the ability to put the funds into an investment with a higher expected return (e.g. possibly even back into iBonds with a better yield).
I'm Thinking of Cashing in my 02-01-2023 3.37% I-Bond and Buying Vangaurds VUSXX Money Market Fund. Does this make sense?
Thanks for the update Jennifer! We’ll be gifting each other the last week of Oct to lock in those rates. Thanks for the reminder! Do you have the video handy on how to do the gift buying on TD?
Also concerning the Verizon corporate bond. Is it local & state tax exempt? Can’t remember off hand. I’m not sure about the 30 year duration though.
Thank again!!❤💎🪺🥚
Hi Debra! Is this the I-Bond gifting video you're looking for: ua-cam.com/video/bSoZJJypSAQ/v-deo.html
Interest earned on corporate bonds is generally taxable on local, state & federal levels when purchased in a taxable brokerage account.
@@DiamondNestEgg thank you so much!
News this morning on Schwab’s CEO Walt Bettinger retirement at EOY may mean changes on the horizon into 2025. Thoughts?
Stay tuned!
Is Canadian bond interest taxed by Canada? Or, does the tax treaty preclude that? If it is taxed I assume we can claim a tax credit on our tax return.
For US residents purchasing CDN bonds in US brokerage accounts, bond interest is not taxed/withheld by Canada Revenue Agency (CRA)
@@erniedacho5913 Thanks
Thank you very much...
Fantastic presentation!
Staying away from government issued securities because money markets and HY saving accounts have better rates. VMFXX and SPAXX will do for now and I will use Social Security as my inflation protection.
Thanks for sharing Joanie - hope you are well!
Buying Vangaurds VUSXX Money Market Fund. Does this make sense? Now my question is which is best to buy at this time, despite fluctuations in capital market. I really need to diversify.
Bought me some of the Goldman Sachs Corp Bond to complete my long-term bond portfolio. Keeping the rest of my cash in SPAXX for now. Will invest in the market when it drops.
I have another one I will be posting later which maybe of interest to some of our members - so stay tuned.
I would not recommend buying iBonds at this time if you are leaving it to a beneficiary. Treasury Direct is 6 months behind in processing claims if you are inheriting an iBond.
Not bad for gov't work! 🥴
They're behind AT LEAST 6 months, meaning it can take even longer, i.e., 9 months, 12 months, etc. until they get your paperwork completed. I'm now at 7 months and counting for the paper pushers to get my documents processed.
Also IRS is about 2 years behind on deceased personal income tax returns
Thinking about tax free withdraws for Ibonds as college savings alternative. My son is 5 yrs old, so 1.3% fixed rate for next 13 yrs growing tax free if used for education sounds like a good idea.
I-bonds are state tax free, but you still pay federal tax on your earnings. You should consider a "529" college savings account. The earnings are both federal and state tax free, as long as the money is spent on college . After he graduates, if there are still funds available, as of this year, you can use the new Secure 2.0 act to transfer unused funds into a Roth IRA for yourself or your beneficiaries (subject to limitations).
Ahh, the I-Bond rate video! 🥳 I've been waiting for you to pull out your crystal ball, Jen! 👍
I've been looking at all the inflation figures over the past few months with the I-Bond rate in mind. Inflation has been coming down and I figured the I-Bond rate will go down with it. I have been pulling in my planned I-Bond purchases to take advantage of the current rate. My goal is to get as much pulled in before the announcement. I have a savings goal in mind with I-Bonds and I'll probably fall a few hundred dollars short of it at the current rate. We do what we can, right? 🙂
I also noticed the corporate bond offers on Fidelity suddenly drying up. 🥺 I'm going to watch your "10 Year T-Note at 6%" next. Gotta get to the bottom of this! 🧐
Verizon's debt load always scares me. They have just as much debt as is their market capitalization. It's really high! Perhaps Verizon has enough pricing power and guaranteed revenue streams to support the debt load. 🤷♂
Thanks for sharing Boris - we haven’t heard from you in a while!
@@DiamondNestEgg Thanks for the reply, Jen! All is well here. 🙂 I continue to quietly catch up on a small backlog of your videos as I calmly and gently dollar cost average into a mix of fixed income instruments and equities. 👍
Ibond yields not attractive now, especially if not in a state with income tax.
2.8%? No thanks, I will stay with 4 weeks bills. Idk who is going to buy I-bonds with 2.8%. And remember, you have to wait 6 month before u get any dividends
3 months
Probably not many right away. Those of us who like ibonds will probably try to load up as much as possible in October and then sit out buying again until the new year. Once March or April rolls around, we’ll start making plans for buying again.