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Thread: Series I Saving Bond

  1. #41

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    My comments on the US I bond from just looking at it briefly. I looked at it from a purely academic point of view a while ago.



    Biggest problem with it is that you are at the mercy of government to say what the CPI interest rate is. ( vested interest to understate)
    It has no fixed component and it changes each 6 months ( Nov 1 and May 1, I believe)

    So - looking at the last couple months of official CPI and if they keep around there, you are not going to get much after Nov 1st.

    You have a 3 month interest penalty to bail out if you have not held for 5 years.

    It is taxable at Federal level.

    It certainly was attractive a while ago but I am doubtful now. Just my thoughts as I cannot buy in any case. I would need to look more closely at fine print.

  2. #42

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    Quote Originally Posted by brutus2 View Post

    So - looking at the last couple months of official CPI and if they keep around there, you are not going to get much after Nov 1st.

    You have a 3 month interest penalty to bail out if you have not held for 5 years.
    I share your same concerns, Brutus. However, if the combined rate goes to 0, I don't lose anything on the three month penalty (after 1 year and 3 months). I would still pocket half of 9.62% for my 15 month investment. A gamble I'm willing to take with no appreciable downside.

  3. #43

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    Yes indeed, I Savings bonds are not much of a gamble compared to so many other things in the market, even gold. And with current high CPI, makes a lot of sense for those who want a conservative way of savings.

    Very glad I bought a year ago. May buy a little more before 11/1, but it's not as enticing, given typical bond prices are now so low as is gold, stocks, etc. However, it's still a very risk free way, and regarding how they calculate CPI, one should know that effects many financial instruments indirectly, it is so very hard to avoid the effects of CPI data in today's age of central bankers being the high priests of a digitally obsessed secular population.
    “Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)

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