Buy I Bonds Now or Wait?

[QuarterMillionMan]

I'll be reinvesting at some point but I'm just waiting for a correction or a crash. Not sure if it'll be stocks, banks, or housing, but I'm content sitting on the sidelines for now.

[disneysteve]

I'll be reinvesting at some point but I'm just waiting for a correction or a crash. Not sure if it'll be stocks, banks, or housing, but I'm content sitting on the sidelines for now.

That's fine. Your decision. I was just questioning the logic of cashing out high-interest government bonds because you don't trust the government but then keeping your money in a money market that is all government bonds (and pays a lot less interest). I'm not sure what that accomplished if your concern is that the government is on the brink of failure.

[james.hendrickson]

That's fine. Your decision. I was just questioning the logic of cashing out high-interest government bonds because you don't trust the government but then keeping your money in a money market that is all government bonds (and pays a lot less interest). I'm not sure what that accomplished if your concern is that the government is on the brink of failure.

Actually this is a good point.

A better option might be to move the money outside the US. Like buy a condo in Canada or some farmland in Mexico.

[LivingAlmostLarge]

I keep on buying. Trying to figure out how to buy next year

[QuarterMillionMan]

In a zombie apocalypse, I like James' idea of owning a condo in Canada or Mexico. But ideally, Fishingdude's set up living sort of on a farm where one can grow their own veggies and raise their own chickens or livestock would be ideal. But living in the inner city such as myself would be toast. I've researched moving to Canada & Mexico but both places have strict requirements for granting temporary residences, let alone permanent residence. Canada wants affluent people who have high net worths, or doctors, or caregivers to work in their nursing facilities. Mexico requires an income of at least $3900 so upon retirement in 2031, I should qualify with my pension, deferred compensation, and SS. Compare that to America which boggles my mind.

[QuarterMillionMan]

Cashed out 6/14/23, woke up 6/16/23 and it is in my bank acct, fast. Now to decide on more money market or bitcoin. Leaning towards bitcoin.

[disneysteve]

Cashed out 6/14/23, woke up 6/16/23 and it is in my bank acct, fast. Now to decide on more money market or bitcoin. Leaning towards bitcoin.

You may have shared this before but I'm curious what your overall portfolio looks like. You've said collectibles (gold, silver) are about 10%. You've got some crypto. But what's the big picture? Do you have the rest in conventional investments? Do you fund an employer-sponsored plan like a 401k? Do you have a Roth IRA? Do you own any investment real estate? What's your overall asset allocation?

[QuarterMillionMan]

-10% precious metals
-near 10% cryptos
-10% stocks
-70% cash

No real estate but I wish I had it.

[QuarterMillionMan]

-My largest holding is in a 457 Government deferred compensation plan at $375,000 (see below)
-Money markets $275,000
-3 Roths totaling $120,000 (stocks, precious metals, & cryptos)
-Schwab $30,000, Treasury direct $10,000, misc $90,000 includes more gold/silver & cryptos

My net worth is $900,000 (all the above). No mortgage, no student loans, no car loans. Credit cards paid off monthly.

[disneysteve]

-My largest holding is in a 457 Government deferred compensation plan at $375,000 (see below)

You've got over 345K in a stable value fund probably earning 3% or so, right? Your 3-year average annual return is just 3.04%.

Doesn't it bother you that during that same 3-year period, a total stock market index fund would have had an average annual return of over 12%? While you're sitting on the sidelines waiting for the apocalypse, you've missed out on tens of thousands of dollars of growth on that money.

[QuarterMillionMan]

I know I've missed out on a lot of the gains but I've made my bed so I have to sleep in it. Not only that 457 plan but also the Schwab $30,000 was once a TD Ameritrade $150,000 in mutual funds and individual stocks such as Apple, Moderna, Tesla, etc.

[kork13]

This seems to be the most recent I-Bonds thread, so I'm resurrecting it for big news. I remembered that 1 Nov means new I-Bond rates! Most notably, the fixed component is up to 1.3% .... !!!! This is the highest that it's been since Oct 2007. Remember that the fixed component remains the same for the life of the bond, and reflects the rate above inflation that the I-Bond will grow.

The overall combined rate for new bonds is 5.27%, which will be available through the end of Apr 2024. So who's buying??

I've already used my $10,000 purchase cap for 2023, but come January, I'll plan to buy another one to take advantage of the 1.3% fixed rate. Only question is do I burn the whole $10k for 2024 at once, or only do $5k in Jan then wait until May to see what happens next? ....decisions, decisions....

[QuarterMillionMan]

I'm in the opposite camp and waiting for mid 2024 in order to sell my position of $10k and get out of I-bonds. The overall 5.27% is a pitance which the government uses as a carrot stick to use our money which our government may not be able to repay so no thank you for I-bonds for me.

[disneysteve]

I still can’t buy I bonds because I can’t get into my treasury direct account. I have to call them and just haven’t bothered. But I can buy treasuries in my Vanguard account that pay more than the I bonds (though not for as long). I’m okay with that and they’re more flexible if I need to access them prior to maturity. They’re also state tax exempt.

[QuarterMillionMan]

Just sold my series I bonds @ 3.37% from 2023 where I started with $10,000, made $800. Will use this for my 2025 Roth IRA max contribution in bitcoin.