I'm not in the income bracket where I need to worry about paper iBonds (or even what the max is for electronic!), but, thanks for the info on the later i-Bond rate. I did put some $ into i-bonds for the first time in a while. If you are so rich that you don't personally need your quota of paper I-b...

@ Vinny:

Be sure to check that box.

jhogue, Quick question... Aren't you retired? If so, how are you pulling off the tax refund paper I-Bond deal each year? I think you've written that you overpay your tax. But that must be by thousands of dollars, right? I am retired. I do a draft of my taxes at the end of January. I then compute ho...

@ Vinny: Sorry, I have never tried H&R Block software. Turbotax shows Balance/Refund on the front page of its instructions and in the IRS Form 1040. See IRS Form 1040-SR (2020) page 3: -Refund Line 34: If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpai...

@ Vinny: 1. I-bonds that you buy in your Treasury Direct account after 1 May 2021 will yield 3.54% for the next 6 months. 2. In addition to the above, you can buy $5,000 in I-bonds with your 2020 tax refund. They will also yield 3.54% for the next 6 months. IRS form 8888 has purchase instructions. I...

Fed cant buy ibonds and push down that yield? In a word, no. As you imply, the Fed could adjust the yield on, for instance, 1-year Treasury bills by selling them at auction or buying and selling on the secondary market. The yield on new I-bonds is fixed and guaranteed by the Treasury twice each yea...

1. I submitted my IRS Form 1040 via Turbotax yesterday, along with my request for tax refund in the form of this year's quota of paper I-bonds.Given the IRS's problems issuing refunds last year, I will be watching to see how smoothly I-bond issuance proceeds this year. 2. I share the nostalgia for p...

TreasuryDirect has set the new fixed rate for I bonds at 0.0%. Combined with the previous announced variable rate, the composite rate for newly purchased I bonds will be 3.54% for the next 6 months, as expected. Because the yield is guaranteed not to fall below zero, the yield for the next 12 months...

I am no prepper either, but a few years in the Boy Scouts taught me to "be prepared."

No plan can handle every possible contingency. I am suggesting an emergency fund with multiple layers and some diversification should see you through the most-- and the most likely-- emergencies.

Safety deposit box unlocks mechanically with two keys: the banker has one and I have the other.

I think safety comes in layers. I have a readily accessible emergency fund outside of my brokerage account (held at Fidelity and insured by Lloyds of London). I have a safe deposit box in a local bank. I know my local banker and he knows me. While my local bank account is FDIC-insured, it is just as...

@jalanlong: As Ayn Rand used to say, you need to examine your premises: There isn't anything imprudent about a 25% cash position. At most, a small negative real yield on cash is a premium paid for liquidity. At least, there are strategies available to achieve and maintain a positive real yield on ca...

I think it is quite simple: Buffett is more concerned with the return of his money than he is with the return on his money. In other words, safety and liquidity must come before yield.

@ barrett: Congratulations on your first world problem. A few suggestions, if I may: -Create a spreadsheet from now through final end of I-bond maturity. It could show you that it might make sense to cash some of them in early to smooth out that “lumpiness” of redemption years. -One way to stem tax ...

@ barrett: -I like the idea of “re-loading”: I also switched from EE bonds to I bonds after our daughter graduated from college. So far, it seems like a workable plan. -In the short term, the upcoming minimum variable interest rate guarantees a minimum one year yield on 1 May 2022 of 1.77%. That bea...

@ Barrett, My Cash is currently split as follows: 20% of Cash in tax exempt accounts (FDLXX in Roths) 18% of Cash in tax deferred accounts (FDLXX in T-IRA) 37% of Cash in tax deferred I-bonds 25% of Cash in taxable accounts (FDLXX in Fidelity brokerage) -I am currently holding more Cash than usual i...

@ ppnewbie: 1. Fluctuation in net asset value is fine for stocks, LTTs, and gold-- in fact, that is what the PP investor should want and expect from those volatile assets. Cash, though, is in the PP to create a pool of safe and liquid funds. A money market fund is designed for principal stability, u...

FDLXX did close to new investors when interest rates collapsed in 2020. It has since re-opened. The yield has been close to miniscule, but it remains all invested in US Treasury-issued securities. Yes, the ER is outrageous, but I would rather have a Treasury money market fund than an ETF. @ppnewbie:...

Can you hold FDLXX in your 401k plan? It is less likely to have a net asset value fluctuation than the ETFs, and (as mathjak indicates) part of the expense ratio is currently being waived by Fidelity.

Really appreciate your I-bond updates and generally keeping these great financial tools top-of-mind around here, jhogue. Thanks, Xan. 1. I continue to regard I-bonds as the “swiss army knife” of Cash. They come with multiple unique and cool functions, such as: -30 years federal tax deferral -30 yea...

Vinny, 1. You are correct. Every tax filer has until May 15 2021 to file their 2020 tax form with the IRS this year. An extension form can be returned with the $5,000 overpayment in addition to any tax that you may already owe. I use Turbotax software and have found filing an extension with my overp...

Tipswatch has announced that the new variable component of I-bonds will reset to 3.54% on May 1, 2021. Even if the new fixed rate is announced as 0%, that means that the composite rate for the next six months of I-bonds is guaranteed to be at least 3.54%. 1. If you have not yet purchased your quota ...

The HBPP prescribes a Treasury money market fund for safety and liquidity, not yield. Chasing yield in cash is not necessary and can potentially lead to problems with safety and liquidity at the moment that you can least afford it. BTW, the nominal yield of a 1 year Treasury zero stands at -0.01% to...

Actually, my wife still believes it was her idea to check out the repair video on youtube before calling the professional.

Vinny,
The youtube videos can help diagnose the problem too. To be clear, I did not say that I would never call the repairman; just that I now try to make the repair myself before calling in the costly repairman.