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Series I Savings Bonds rates are set to rise to historic levels, again. The Labor Department released Consumer Price Index (CPI-U) data this week that showed prices rising by 8.5% for the 12 months ending Marcy 2022 and 4.81% over the past six months. As a result, the Inflation Rate on I Bonds is expected to rise to a whopping 9.62% in May 2022 (the rate is currently 7.12% annualized). That represents the highest Inflation Rate on I Bonds since they were first introduced in 1998.
In this video, we’ll look at the new rates, whether the fixed rate will rise, buy strategies to maximize the yield, and how to get around the $10,000 I bond purchase cap.
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#ibonds #inflation #robberger
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I’m the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I’m also the author of Retire Before Mom and Dad–The Simple Numbers Behind a Lifetime of Financial Freedom (
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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LEARN MORE ABOUT: Treasury Inflation Protected Securities
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
More details in my updated article on I Bonds: https://robberger.com/i-bond-rates/
Could a married couple filing jointly pay in an additional $10,000 in federal income tax withholding late in the year generating a tax refund and use that $10,000 to purchase the additional $5,000 paper I Bond for each person?
Excellent video. Thanks Rob.
Thanks for the video!!! It is very helpful. When I check the TD web, it does not specify how much I can buy ibond as a gift to someone. It only mentions I can only gift $10,000 to someone each year. Does it mean I can buy, for example $50,000 ibond to my wife as a gift this year and deliver to her $10,000 per year for the next 5 years?
Thank you for your informative video
Can J1 visa holder (with valid SSN) buy ibond?
Need to update your video and website,
Rob–Are you an Ohio State grad? I saw you were wearing a Buckeye hat in an earlier video. Question–I agree with you that it's more likely than not that the inflation rate will be lower in Nov 2022 than in May 2022, but do you believe the I bond's fixed interest rate will still be zero? What macro fundamentals cause the fixed interest rate to rise or fall on an I bond?
If I own an LLC and I've already purchased my 10k limit in my personal account for 2022 earlier this month. Can my LLC purchase and then gift me another 5K and not deliver it until 2023 so I can get 6 months of time passing under that 5k bond? I hear they start earning interest and start the clock on expiration the date its bought.
If I bought my ibonds today can I buy another lot on jan ‘23 or a year from today ?
I bought my I Bond February 1, 2022 at 7.12%. So would that be the rate I get until August 1, 2022?
If I bought the I bond in May 2022, do I have to wait till may 2023 to buy more or I can buy again Jan 2023?
So Rob – to be clear, I can buy up to $10k as an individual AND I can buy an additional $10k via my revocable living trust? The confusion lies in that my RLT uses my SSN so when I heard up to $10k per SSN that threw me off. This is a great low risk option because my TIPS index fund is not performing as well as I would have thought currently…
Can I hypothetically: Setup 100 llcs with 10k I bond each, making a million dollars total?
Can you direct me to a video where you talk about bond ladders? Thanks
$10,000 just isn't hardly enough to matter, however, thats as much interest as $96,000 in a bank at 1%. Wish the limit was $500,000.
Question: I bought an I bond last year but when I look online for the currrent value it only shows a return of 3.5%. Am I missing something?
This aged well
This isn't a strategy but a description of how I bonds work. It is valid, for sure, but call it appropriately.
It’s the middle of June now. Is it still worth buying now?
Everyone seems to forget or not realize, the Fed ( a private bank,) agenda is to perpetuate inflation and acquire real assets! Their ultimate goal, be the lender and buyer of last resort. The Fed could care less about inflation, the government or people.
I wish I had known about all of this a lot sooner! Still, it's great to know now. I'm cutting my losses from stocks and putting that money into I Bonds now.
I'm a little late to the game here. Tell me why I shouldn't still invest.
Great information. Do you know whether this is a limit on the number of Entity Trust accounts an individual can establish on Treasury Direct in order to purchase more than $10,000 per year?
ANOTHER way to buy more than the $10,000 limit per year/SSN is to GIFT I-BOND purchases. I.E. my plan is to buy $10,000 for me and to buy $20,000 as a GIFT for my wife to be held in my account and have the GIFT DELIVERED in 2023 and 2024–each gift being $10,000. That would allow me to buy $30,000 in I-BONDS this month. ( and I could have my wife do the same) for a GRAND total of $60,000 in I-BOND purchases for 2022. What This would accomplish is to have all $60,000 in I-bonds get that sweet 9.62% annualized rate. Since all the I-Bonds were purchased this month the interest accumulates from the month of purchase. The caveat is that when you DELIVER the GIFT I-BOND to your spouse (or to anyone for that matter) it counts against the recipients $10,000 limit. That is why I can only gift her my $20,000 of I-bonds over 2 years–$10,000 each year. (and vice versa for my wife)
Bought my first in late December. Bought my second in late April. The May inflation rate was just announced and it was historically bad. It may not be so bad in November but I doubt they'll have got it back below 4% let alone 2%.
How do banks perform during times when interest rates go up but also during a recession??
Hi, thanks or the informative video. I have put 5,000.00 in I-Bonds at the current post May rate for 2022 – would you say it is worth waiting until November to invest the other 5,000.00 in case they increase the fixed rate?
You missed talking about buying Gift I bonds. You can purchase any dollar amount for future gifting, and leave in your gift box for future gifting (like to your spouse).
I see rates increasing to 20 percent
timely and spot on thanks–btw–you mentioned an LLC–i'm a Sole Proprietor (with an EIN). can i buy iBonds in this realm?
Back when you made this video, how did you predict the 9.6% interest rate?
How about including a strategy to sell the I Bonds. If inflation starts dropping between 1-5 years of holding the bond, hold on to the I Bond for 3 months of low inflation rate, therefore minimizing the penalty of selling before 5 years of possession. Let it go to near zero and if fixed rate is zero, then no penalty! Bottom line, after 1 year possession, monitor I bond inflation rates if you know you’ll sell before 5 years.
You make 9.62% of interest every 6 months or per year?
Good and honest review, but really nobody knows if inflation is going up, staying the same, or continuing to grow! I'm interested in buying some with my MRD for the year, but missed buying in April. All the other YouTube financial gurus are saying the best and only time to buy I Bonds is April and October.
Is there a way to gift one to your spouse and vise versa? I saw someone posted on YouTube
I put in a request for the purchase of an iBond one month ago, and received a (false) reply a day later confirming the purchase. But looking into my TreasuryDirect account, there was no purchase; looking into my bank account showed no withdrawal. After inquiring by e-mail, I was lectured: “…we will respond only to questions satisfying the following two criteria” both of which were met previously. After waiting for another two weeks, I called and was given the message that “it could take up to 8 weeks to process” — not one day as told by theoretical experts here on YouTube. How long is the wait for a human to answer my phone call? “We are experiencing a traffic heavier than usual… your call will be answered in about 2 hours”.
Don’t know if others are met with the same experience.
on what basis due you think the rates will be lower then todays? The fed will raise rates to at least 6-7% to decrease the money supply? The gov't we not be increasing the debt? We'll get responsible leadership?
If you buy and I bond for $6000 and then you come up with 4000 more dollars can you get another I bond for $4000?
Since we have to hold onto them for 5 years to get the most out of the investment, what are the expectations of the interest rates over that whole time. Yes it's great now to invest at 9.62% and you're guaranteed that interest for 6 months, but what is expected to accrue after November, after May 2023, etc. until I cash them in?
If I put in $5000 now, what can I realistically expect to have after 5 years?
if you have a tax refund of 5k in 2022 you can buy 5k more in paper i bonds as well! you need to submit an IRS form. but you can do 15k per year
I think the fed is way behind inflation. The other thing is we have so much debt that the fed can't raise rates to the level to bring inflation down below 2%. If rates go too high we can't service our debt. the fed knows that and wont go too far. the real inflation rate is way higher than the official rate. i think these bonds will probably pay to keep up with inflation for several years in the future. Of course the huge bubble economy we are in with housing and stocks could deal a big blow to the economy if it deflates too quickly…and common sense says it needs to cool! they say that there is 2 trillion in cash due to all the cash sent to consumers during covvid. Its there and most will spend it all. 2 trillion waiting to add to inflation!
I had no idea I could purchase I bonds for my company. I'm an S corp. Thanks for your info !
If I buy I-bond in May5 (say), I would get 9.62% till end of October correct ? It is unlikely it will drop to 2% or something in November considering today's inflation !
Thanks for the video. I don't receive interest the first 3 months after my Bond purchase. When do I get that back? After 5 years?
So glad I found this channel when I did!