kiamori t1_iu253ge wrote on October 28, 2022 at 12:09 AM

Reply to comment by 6BigAl9 in Treasury Direct log in issue by Mrs_WorkingMuggle

Isn't that exactly what I said?

6 months good interest and then in 6 months you get whatever that rate is... You lose 3 months interest if you sell before 5 years.

What did I state incorrectly?

6BigAl9 t1_iu25o0q wrote on October 28, 2022 at 12:13 AM

I guess I misunderstood you. We know the next 6 month rate is going to be around 6.48%. I consider 9.62% really good and 6.48% good as well. That averages out to a little over 8% over the year. Let's say I hold 15 months to take into account the 3 month penalty, I'm getting that rate (minus federal taxes). And even if I don't, it's beating any other guaranteed investment.

kiamori t1_iu2hdwx wrote on October 28, 2022 at 1:42 AM

so max contrib is 15k asuming you do 5k with your return. 15k for 15 months will net you about 16020 after federal taxes.

another option would be to sell "safer" puts, for example lets take tsla, what is the lowest you could see tsla stock in 15 months? lets say 180.00 that would give you a gain of $3500 less $500 after tax and you would need $14,500 to cover the margin balance. You could also close the position at any time if needed.

6BigAl9 t1_iu2jn4e wrote on October 28, 2022 at 2:00 AM

Are you really comparing Tesla puts to ibonds? I’m talking about a safe place to put money I will need in the medium term.

kiamori t1_iu2mshv wrote on October 28, 2022 at 2:23 AM

If you wanted to compare the same earnings with tesla puts you would have to go all the way down to a $100 tsla put, tesla going down to $100 is as likely as the fed declaring bankruptcy.