I bond rate November 2019

Discussion of the Cash portion of the Permanent Portfolio

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jhogue
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Re: I bond rate November 2019

Post by jhogue » Tue Jan 07, 2020 3:05 pm

Kbg wrote:
Mon Jan 06, 2020 9:07 pm
What strategies are folks using to decide (that aren't simply trying to predict the future) between normal Ts and I-bonds.
: If you are just starting, don’t buy STTs or savings bonds until your TMMF covers 6 months living expenses. After that, add STTs and savings bonds in equal amounts. When Cash reaches 2 years living expenses, put all new money in your savings bond ladder. I-bonds really hit their stride in the 5-30 year time frame after they become penalty-free, as well as inflation-adjusted and tax-deferred. The older they get, the more important these last two features become.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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ochotona
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Re: I bond rate November 2019

Post by ochotona » Tue Jan 07, 2020 3:18 pm

jhogue wrote:
Tue Jan 07, 2020 3:05 pm
Kbg wrote:
Mon Jan 06, 2020 9:07 pm
What strategies are folks using to decide (that aren't simply trying to predict the future) between normal Ts and I-bonds.
: If you are just starting, don’t buy STTs or savings bonds until your TMMF covers 6 months living expenses. After that, add STTs and savings bonds in equal amounts. When Cash reaches 2 years living expenses, put all new money in your savings bond ladder. I-bonds really hit their stride in the 5-30 year time frame after they become penalty-free, as well as inflation-adjusted and tax-deferred. The older they get, the more important these last two features become.
But you need to eat them at 30 years, as no more interest accrues
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Kbg
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Re: I bond rate November 2019

Post by Kbg » Tue Jan 07, 2020 3:35 pm

I have both, but other than calculating post tax equivalent rates I don't have a good plan and I tend to ETFs as I like the convenience/instant liquidity aspect. I'm just beginning to get my head around post career retirement planning and it appears to be highly temporal in nature (i.e. what is best is based on how various milestones and needs flow through time more than anything)
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