I BONDS EXPLAINED! (IS 7.12% GUARANTEED FOR REAL?) | Are you looking for a way to fight inflation in your investment portfolio? The U.S. Department of the Treasury is now paying a 7.12% annual rate on I bonds. In this video, I am going to explain why several investors are looking into I bonds and I will give you our honest opinion on this investment strategy.
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0:00 – I Bonds Explained! (Is 7.12% Guaranteed for Real?)
0:30 – What are I Bonds?
1:27 – What is the interest rate on I Bonds?
3:26 – Are I Bonds a good investment?
5:30 – How can you buy I Savings Bonds?
***RECOMMENDED READING LIST***
The One-Page Financial Plan by Carl Richards (easy read, holistic + fun graphics!)
Simple, Smart Investing by Ian Kennedy (can help you construct your investment portfolio)
A Random Walk Down Wall Street by Burton G. Malkiel (classic book that sold me on index funds)
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LEARN MORE ABOUT: Treasury Inflation Protected Securities
REVEALED: Best Investment During Inflation
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HOW TO INVEST IN SILVER: Silver IRA Investing
Skip Ahead Here!
0:00 – I Bonds Explained! (Is 7.12% Guaranteed for Real?)
0:30 – What are I Bonds?
1:27 – What is the interest rate on I Bonds?
3:26 – Are I Bonds a good investment?
5:30 – How can you buy I Savings Bonds?
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?
You can only buy $10,000 worth of these bonds per year, so it's peanuts – this video is a waste of time.
9.62% now
How is it a 3-5% return if the rate is at over 9% right now?
I have a hard time getting excited about an investment that I have to hold for 30 years to earn 6-9% on. I hold a few bonds in my portfolio, but I hope they'll be earning more than 6-9% a year at some point in the next 20. Flexibility and good returns have always been my concern
is that your real voice?
But only us citizens or americans outside can buy I-bonds, it's not for foreigners outside the country
Very poor explanation.
1. If they are bonds, you should be talking about coupons. Not interest rates.
2. You never mentioned the maturity and the 5 years period was confusing. Are they perpetual?
3. You suggested stocks as alternative investments when here we are talking about bonds, a low risk approach to the market.
Please re-do.
Better than nothing.
Well done right to the point thank you
You can purchase up to $15,000. $10,000 plus you are able to use your tax refund to purchase an additional $5,000
Mrs Anna is legit and her method works like magic I keep on earning every single week with her new strategy
I normally give presents to the kids in my life each holiday. I was thinking of switching to I bonds for at least part of it (say $50-$100 per birthday/Christmas) to help them pay for college or to start a business someday but not having paper bonds makes this a pain in the butt. Their parents must set up a minor account for them, and I have to have their SSN (!!) to transfer it to them. That’s crazy to me. 🙁
If someone owns a corporate can he open 2 accounts individual account and corporate account. Thanks
You missed some details. It is $10,000 per person per calendar year. Plus, your rate is locked in for 6 months. Also, if you sell the bond before 5 years, you take a 3 month interest penalty.
All in all, even if the rate goes to 0 next semester, it will be worth 10k, especially with stock market turning into a dumpster fire and commodities markets going wild.
A well explained video, videos like this and insight from an expert goes a long way.
If it's from the government? NO! They don't care about you, they want to abuse and use you, trusting the government to be responsible with YOUR MONEY is like sticking a loaded gum to your head and being told to pull the trigger because all the bullets are duds…
Simply put? DON'T DO IT!
$10000 only? What do you do then if you have 100k-200k or more in cash?
good. helpful. short. Thanks! Still had to play it at 1.75x 🙂
So are we earning 7% interest weekly? Monthly? Or Yearly?
I thought you were Chinese.
Hi very helpful video! Thank you! So should you wait to take it out after 6 years only if inflation is high at that time? Also can you do it in a child's name or put a beneficiary?
How can I add an BENEFICIARY to my purchased I Bonds on Treasury Direct? I currently have I bonds in mine and my wife’s name as primary and co-owner.
Do you just click on the BENEFICIARY circle and put in my name as Primary and say my son as a Beneficiary? Thanks for your expertise!
Hi, liked your video. Do you know why I received a lot of less interest?? I bought $10K at 7.12% starting from 11/12/21 upto 4/30/22, about 162 days. I was credited $116 at some point several months ago and another $60 credited today 5/2/22, totaled $176. Instead of my calculation: $712/ 365 days x 162 days = $316 interest. Do you know why? Appreciate your time.
I WOULD NOT BUY ANYTHING IN THE BIDEN GOVRMENT. HE A CRIMINAL.
If its at 7.12 now and then it drops to 3% do i get 7.12 on the 1st 6 months and then 3% for the second 6 monts? Or does it all just use the current interest rate?
If you make one $10,000 purchase, can you withdrawal only part of it after one year? Or do you have to cash out the entire amount once looking to to take some out?
Great unbiased video
I think a helpful thing to understand with I Bonds is that no matter what happens with rates, you will never pull out less than you’ve put in.
Superb explanation !
Inflation I see dropping or tapering down perhaps around Q3 2023
Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market/crypto market has plenty of opportunities to earn a decent payout even in a downtrend, with the right skills and proper understanding of how the market works.
Thanks for the video! Are the couples that file jointly can set two Primary Owner accounts under the same profile as A with B and B with A for $10K each ($20K in total)?
The limit is actually $15k; you can use $5000 of a tax refund to purchase an additional 5k of Ibonds.
Is that $10k per person per year, or for life?
I am receiving a $2000 ck for tax return 2021. How do I purchase those bond over the max of $10000
The best description I have heard! Thank you!
I got a 7% return on my 10k on last 6 months
Would 700 dollars I have "laying around" be good to invest into this?
So what if the inflation drops after 1 year, you wait another year holding the bonds with lower rate, and then withdraw – which 3 months of interest will you lose? The first three where you earned higher interest or the last 3 where you earned less interest? Or some kind of average?