Buy I Bonds Now or Wait?

[Bozzdivine]

Guys, is it a good time now to buy any bonds? I'm new to this and I've been thinking about investing some of my income into bonds, because I am under an impression that it could help me get some additional income. What do you say?

[kork13]

Guys, is it a good time now to buy any bonds? I'm new to this and I've been thinking about investing some of my income into bonds, because I am under an impression that it could help me get some additional income. What do you say?

I would argue that it's almost always worthwhile to buy I-Bonds. In my experience, they've always been within .5-1% of top online savings account rates (or better), and they're guaranteed to protect your money from inflation.

Personally, I like I-Bonds as an Emergency Fund (rainy-day money) -- they earn a decent return, remain inflation protected, and can be accessed within a couple days (after the first year) in the event of need.

[james.hendrickson]

Are you guys still buying I-bonds? I was thinking about picking up a few more. The amount they pay is well off its 12 month high though, so I'm having second thoughts.

[disneysteve]

I haven’t bought any because I can’t get into my Treasury Direct account and haven’t bothered sitting on hold forever to get it corrected. Otherwise I would have. I still think it’s a great deal.

[kork13]

Are you guys still buying I-bonds? I was thinking about picking up a few more. The amount they pay is well off its 12 month high though, so I'm having second thoughts.

I-Bonds are almost never going to earn what they have for the last 1.5yrs. Plus, today's rate is still 4.3% -- what's your savings account paying? Ally is only giving me 3.75%.

Besides, the inflation component (which drove the >9% rate) is all smoke & mirrors, effectively net zero after inflation eats away at your money. What really makes a difference is the fixed component, which never changes for the life of the bond. Right now, the fixed component is 0.9% -- the highest it's been since Apr 2008! Whatever happens with the inflation component, today's bonds will always earn . 9% extra.

So am I still buying I-Bonds? Heck yes I am! The purchase for my second $5k of this year will go through at the end of May.

[QuarterMillionMan]

I haven’t bought any because I can’t get into my Treasury Direct account and haven’t bothered sitting on hold forever to get it corrected. Otherwise I would have. I still think it’s a great deal.

just “reset password.”

[disneysteve]

just “reset password.”

Nope. That's not the issue. I get an error that it can't verify my information. There's no way around that. I have to call, but anytime I've tried the estimated hold time was way longer than I wanted to sit on hold.

[Bozzdivine]

I-Bonds are almost never going to earn what they have for the last 1.5yrs. Plus, today's rate is still 4.3% -- what's your savings account paying? Ally is only giving me 3.75%.

Besides, the inflation component (which drove the >9% rate) is all smoke & mirrors, effectively net zero after inflation eats away at your money. What really makes a difference is the fixed component, which never changes for the life of the bond. Right now, the fixed component is 0.9% -- the highest it's been since Apr 2008! Whatever happens with the inflation component, today's bonds will always earn . 9% extra.

So am I still buying I-Bonds? Heck yes I am! The purchase for my second $5k of this year will go through at the end of May.

Hey @kork13,
Thanks for sharing your thoughts on I-Bonds! As a newbie to the world of investing, your insights are truly appreciated. The idea of having an investment that's both inflation-protected and easily accessible sounds like a great strategy, especially for an emergency fund. It's also reassuring to hear about their decent return rates. I'm definitely going to look into this. Once again, thanks for taking the time to share your experience - it's invaluable to me as I dip my toes into this!
Cheers!

[LivingAlmostLarge]

I am just building an ibond ladder. It's been about 5 years of $10k each. I guess i look at it as a fixed rate component of my portfolio.

[AllyStreelman]

I bought I bonds at the 9+ rate last year and am glad I did, but I'd still do it now. They're a safe way to store $10,000 and protect against inflation.

[QuarterMillionMan]

I just sold $10,700 worth today. Purchased on 5/1/22. I still have another $10,000 purchassed on 2/1/23 which I wish I didn't purchase but I'll have to wait until 2024 to cash out but cannot cry over spilt milk. I'm losing faith in big government.

[disneysteve]

I'm losing faith in big government.

I know you’re into gold and silver. Where is the rest of your money invested? If you believe that the United States is going to fail in your lifetime, I’m curious what investments you feel are safe.

[QuarterMillionMan]

Majority of my holdings is in money market, I know not a good investment. But I don't feel safe investing at the moment.

[QuarterMillionMan]

[disneysteve]

Majority of my holdings is in money market, I know not a good investment. But I don't feel safe investing at the moment.

And what do you think your money market is invested in? It’s probably 100% or close to it in US government bonds.