What exactly are

[Rebl2]

I-Bonds. Are they a good investment? I read the interest rate is 9.6 something now until November.

[multigraincracker]

1. Pretty much a long term investment.

Can’t cash for 5 years and 30 years to maturity.

[Rebl2]

2. From what

I understand you pay federal tax but not state or local tax?

[multigraincracker]

3. I think they are the new version of

US savings bond. Great gifts for kids and grand kids.

[doc03]

4. I think they are a great investment. They are backed by the US government you can't

lose money. You can cash them after one year, there is a 3 month penalty but that is offset because
there is no State or Local tax. After 5 years there is no penalty for cashing them and again they are
state and local tax free. Only downside I know is you can only buy $10000 in 1 calendar year you can
also have your tax refund in I-Bonds up to an additional $5000.

[Rebl2]

5. So I

am in my mid sixties. Still a good idea for someone my age?

[progree]

6. Yes, it's literally metaphysically impossible to make the case otherwise. Unless you held them for

less than 6 months.

If held just 6 months: earn 9.62%/2 = 4.81%. Less 3 months interest penalty = 9.62/4 = 2.405%, Leaving you ahead 2.405% for the 6 month period (state and local tax free). An annualized 4.81% rate of return.

Note: can't be held in an IRA.

[doc03]

7. I am 74 I bought one in 2021 and one in 2022 May 1st I got 7.12%/$120 interest. After May 1st

the interest is 9.62%. Sure beats .30% interest in a bank.

[Rebl2]

8. For sure better

interest rate. Can I go through my financial advisor to get these I-Bonds or directly to treasury department.

[doc03]

9. I think you have to buy them on Treasury Direct. I don't think you can get them

through a financial advisor but I am sure he will come up with something else that will give him a
good potion of your money.

[Rebl2]

11. No doubt 🫤

Thanks for info

[progree]

10. Only from TreasuryDirect.gov

Zweig / Wall St Journal 5/1/22 :

You can buy them only from the U.S. government on its archaic and creaky TreasuryDirect.gov website

. -- https://www.democraticunderground.com/11213974

[Rebl2]

12. Thanks for info

[progree]

13. 👍