DeluxeXL t1_iuk9r11 wrote on October 31, 2022 at 11:41 PM

> Almost everyone should invest in Series I Bonds

For money you need in 1-5 years, sure. Otherwise, I bonds start to lag behind stock investments for long-term real returns.

[deleted] OP t1_iuka6mz wrote on October 31, 2022 at 11:44 PM

Yeah for one year. Pretty much nothing will perform better than this. And for 0 risk this is a cheat code. 😂The rates are already pre determined.

mygirltien t1_iukau4t wrote on October 31, 2022 at 11:50 PM

>Pretty much nothing will perform better than this.

This was valid up to about 1 year ago. Not so much anymore and the new rate is way lower, stocks have bounced back quite a bit and im not so sure the market wont out perform ibonds in the next 8-12 month. Heck you can find 1 year bonds and cd's paying really close to the next ibonds rate without the penalty.

GAULEM t1_iukbn45 wrote on October 31, 2022 at 11:56 PM

Mate you probably shouldn't put $10k into something you don't understand. You're not getting 10% for 12 months. You're getting a 9.62% rate for six months, and then a 6.48% rate for six months, and if you sell at that point then you lose three months of interest.

If I'm doing the math right, then your blended rate after one year including the penalty, for I bonds purchased during the past six months, is about 6.54%.

[deleted] OP t1_iukbvv6 wrote on October 31, 2022 at 11:58 PM

That is exactly how I understand it. Its a no brainer. Tell me something that will return anything like that in the next year for sure with 0 risk.