Investing for Retirement

Chat about non-baseball topics. No political discussions!
Post Reply
User avatar
sighyoung
Mayor of GRB
Posts: 37618
Joined: April 17 06, 7:42 pm
Location: Louisville

Re: Investing for Retirement

Post by sighyoung »

vinsanity wrote:
June 2 22, 9:09 am
Popeye_Card wrote:
June 1 22, 2:52 pm
Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how
Wuuuuuuut that's insane. Are people that down on the US economy?
No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.

User avatar
Joe Shlabotnik
Hall Of Famer
Posts: 23105
Joined: October 12 06, 2:21 pm
Location: Baseball Ref Bullpen
Contact:

Re: Investing for Retirement

Post by Joe Shlabotnik »

sighyoung wrote:
June 2 22, 11:45 am
vinsanity wrote:
June 2 22, 9:09 am
Popeye_Card wrote:
June 1 22, 2:52 pm
Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how
Wuuuuuuut that's insane. Are people that down on the US economy?
No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.
Are TIPS different than these? I can't find an answer in my surfing so far.

User avatar
G. Keenan
Sucking on the Rally Nipple
Posts: 23459
Joined: April 16 06, 6:03 pm
Location: Chicago

Re: Investing for Retirement

Post by G. Keenan »

Joe Shlabotnik wrote:
June 2 22, 11:56 am
sighyoung wrote:
June 2 22, 11:45 am
vinsanity wrote:
June 2 22, 9:09 am
Popeye_Card wrote:
June 1 22, 2:52 pm
Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how
Wuuuuuuut that's insane. Are people that down on the US economy?
No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.
Are TIPS different than these? I can't find an answer in my surfing so far.
I believe with TIPS just the principle is indexed to inflation, not the interest rate.

User avatar
CardsofSTL
All Hail the GDT Master
Posts: 47817
Joined: April 26 11, 6:06 am
Location: Columbus, OH

Re: Investing for Retirement

Post by CardsofSTL »

Popeye_Card wrote:
June 1 22, 2:52 pm
Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how
Definitely a good thing to be doing now. Nice tip kripto-Popeye

User avatar
vinsanity
Chili dog truther
Posts: 8772
Joined: July 3 06, 2:19 pm
Location: Indianapolis

Re: Investing for Retirement

Post by vinsanity »

sighyoung wrote:
June 2 22, 11:45 am
vinsanity wrote:
June 2 22, 9:09 am
Popeye_Card wrote:
June 1 22, 2:52 pm
Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how
Wuuuuuuut that's insane. Are people that down on the US economy?
No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.
Well, right. But sorta? I thought that the inversion of rates on bonds in the past meant people were anticipating inflation and recession? So when longterm bonds have high rates, it's because of increased risk? Or am I an idiot and thinking about what I think are t-bonds? And I don't know what I-bonds are?

Online
User avatar
heyzeus
Everday Unicorn
Posts: 41343
Joined: April 21 06, 10:14 am
Location: Austin, TX
Contact:

Re: Investing for Retirement

Post by heyzeus »

Good thing I'm not retiring this year. Bye bye investment account.

User avatar
Joe Shlabotnik
Hall Of Famer
Posts: 23105
Joined: October 12 06, 2:21 pm
Location: Baseball Ref Bullpen
Contact:

Re: Investing for Retirement

Post by Joe Shlabotnik »

heyzeus wrote:
June 13 22, 2:43 pm
Good thing I'm not retiring this year. Bye bye investment account.
It was worse 2.5 years ago! This too shall pass.

unless it doesn't of course...

Post Reply