New iBond rate 1.68%

Discussion of the Cash portion of the Permanent Portfolio

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Kevin K.
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New iBond rate 1.68%

Post by Kevin K. » Wed Oct 14, 2020 7:16 pm

New rate and an interesting strategy for buying them:

https://seekingalpha.com/article/437910 ... quote_news

Best option out there for cash it seems (if you can get past the 10K annual purchase limit and having to have a separate Treasury Direct account).
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jhogue
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Re: New iBond rate 1.68%

Post by jhogue » Sun Oct 18, 2020 10:45 am

1. To give it some context, the 1 November I-bond yield of 1.68% is better than on-line Ally Bank's advertised 5 year CD (1.00%) or a 10 year Treasury (0.77%). The best no-risk short term investment out there today-- and probably the only one without a negative real yield right now.

2. Don't forget that you can buy up to $5,000 of paper I-bonds with your annual income tax refund.

3. Or set up a payroll savings plan with your employer in any amount of $25 or more. Stodgy as that may sound, that is what young investors should be doing as an automatic check-off item on their monthly budget, which is what millions of small savers did during and after World War II.
“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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