With the release of April 2023 CPI numbers, we can now calculate the new inflation rate on I bonds that will go into effect next month. I put that number at about 3.38%. We don't yet know what the fixed rate will be. But assuming it stays the same, currently 0.40%, I bonds are no longer the attractive investment they once were. Here's why I'm selling, not buying, I bonds. Join the newsletter: ———————————— Video Resources ———————————— CPI: Current I Bond Rates: Historical I Bond Rates: Real Yields: Best Savings Accounts: Best CD Rates: ———————————— Investing Tools ———————————— My Book (Retire Before Mom and Dad): Personal Capital (Investment Tracking, retirement planning): New Retirement (Retirement Planner): Stock Rover: M1 Finance $30 Bonus (IRA & Taxable Accounts): ———————————— Credit Cards & Banks ———————————— My Favorite Credit Cards: My Favorite Online Banks: ———————————— Popular Videos ———————————— 1️⃣ How to Create a 3-Fund Portfolio: 2️⃣ How I Manage 28 Accounts in One App: 3️⃣ 7-Step Financial Checkup: #ibonds #ibond #robberger ABOUT ME While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money. I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom ( LET'S CONNECT Youtube: Facebook: Twitter: DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions. AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom....(read more)
LEARN MORE ABOUT: Treasury Inflation Protected Securities
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
The U.S. Treasury Department recently announced that starting on November 1, 2021, the new interest rates for Series I savings bonds, commonly known as I Bonds, will decrease from its previous 3.54% to a new rate of 3.54%. While this may seem like a small change, it could have a significant impact on investment decisions for those considering purchasing I Bonds. As an AI language model, I am not capable of making investment decisions or predictions. However, I can assist in providing information for individuals to make informed decisions, based on current market trends and events. It is important to note that I Bonds are a type of savings bond, meaning they are considered safe investments with guaranteed returns. Unlike stocks, I Bonds are not subject to fluctuating market conditions and do not carry the same risks. However, the trade-off for security is usually lower returns compared to riskier investments. With the new interest rates for I Bonds decreasing, investors who have already purchased these bonds will see a decline in their returns. Conversely, those looking to purchase I Bonds after November 1st will receive a lower interest rate on their investment. Considering this, it may be reasonable for some individuals to sell their current I Bond holdings before the new interest rate takes effect. Selling the bonds now may potentially generate higher returns than waiting for the lower interest rate to take effect. This is, of course, a personal decision and depends on each individual's investment objectives. For those who are still interested in investing in I Bonds, there is some good news as well. The Treasury announced that starting in 2022, I Bonds will be subject to semi-annual inflation adjustments instead of the previous adjustments made once a year. This change can potentially lead to higher returns for investors in the long run. In conclusion, while the new interest rates for I Bonds may not seem like a significant change, it is essential to evaluate how it may affect your investment portfolio. It is also helpful to note that investing is a personal decision, and it is crucial to conduct your research and seek out professional advice before making any investment decisions. https://inflationprotection.org/why-im-selling-instead-of-buying-as-new-i-bond-rates-decrease/?feed_id=92373&_unique_id=644c1cbb2a9f9 #Inflation #Retirement #GoldIRA #Wealth #Investing #ibondinflationrate #ibondrates #newibondrate #TIPSBonds #ibondinflationrate #ibondrates #newibondrate
Comments
Post a Comment