November 2015 I Bond Rates

Discussion of the Cash portion of the Permanent Portfolio

Moderator: Global Moderator

Post Reply
User avatar
Bean
Executive Member
Executive Member
Posts: 389
Joined: Mon May 28, 2012 10:30 pm

November 2015 I Bond Rates

Post by Bean » Tue Nov 03, 2015 9:25 am

Fixed Rate = 0.10%
Inflation Rate = 0.77%
Composite Rate = 1.64%


https://www.treasurydirect.gov/indiv/re ... dterms.htm
“Let every man divide his money into three parts, and invest a third in land, a third in business and a third let him keep by him in reserve.� ~Talmud
User avatar
MachineGhost
Executive Member
Executive Member
Posts: 10054
Joined: Sat Nov 12, 2011 9:31 am

Re: November 2015 I Bond Rates

Post by MachineGhost » Tue Nov 03, 2015 1:12 pm

Wow, may be time to tender in my 0% fixed rate I-Bonds!!!

I feel so rich.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
User avatar
ochotona
Executive Member
Executive Member
Posts: 3353
Joined: Fri Jan 30, 2015 5:54 am

Re: November 2015 I Bond Rates

Post by ochotona » Tue Nov 03, 2015 2:59 pm

so why do we like them? because they don't depend on FDIC, and they are an inflation hedge?
goodasgold
Executive Member
Executive Member
Posts: 387
Joined: Tue Jan 01, 2013 8:19 pm

Re: November 2015 I Bond Rates

Post by goodasgold » Tue Nov 03, 2015 3:03 pm

MachineGhost wrote: Wow, may be time to tender in my 0% fixed rate I-Bonds!!!

I feel so rich.
If and when interest rates go up 2-3% or more, as they have in the past and inevitably will again in the uncertain future, you might regret cashing in those I-bonds. For a good reason, Harry Browne recommended placing our cash in a tax-deferred account, and that advice will probably make sense again.

And when will this new age of renewed high interest rates dawn? My advice is: ask Mathjak and his magic Ouija board.
User avatar
MachineGhost
Executive Member
Executive Member
Posts: 10054
Joined: Sat Nov 12, 2011 9:31 am

Re: November 2015 I Bond Rates

Post by MachineGhost » Tue Nov 03, 2015 3:21 pm

I did mean tender them to roll them into .10%.  But I kind of doubt the penalty is worth it for .10%.  There's a calculator somewhere to determine it.

EDIT: I forgot about the damn limits!
Last edited by MachineGhost on Tue Nov 03, 2015 3:23 pm, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
User avatar
MachineGhost
Executive Member
Executive Member
Posts: 10054
Joined: Sat Nov 12, 2011 9:31 am

Re: November 2015 I Bond Rates

Post by MachineGhost » Tue Nov 03, 2015 3:23 pm

ochotona wrote: so why do we like them? because they don't depend on FDIC, and they are an inflation hedge? 
In the past they were paying ridiculously high fixed rates above inflation.  And you get a 30-year yield without the 30-year duration risk.

They basically set the fixed rate in accordance with TIPS more or less:

Image

Nice chart!

Image
Last edited by MachineGhost on Tue Nov 03, 2015 3:30 pm, edited 1 time in total.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
User avatar
Greg
Executive Member
Executive Member
Posts: 1126
Joined: Sun May 20, 2012 6:12 pm
Location: Maryland

Re: November 2015 I Bond Rates

Post by Greg » Tue Nov 03, 2015 5:05 pm

That last chart looks a little funky. Where is the black line? I only see blue, and heavier blue line.
Background: Mechanical Engineering, Robotics, Control Systems, CAD Modeling, Machining, Wearable Exoskeletons, Applied Physiology, Drawing (Pencil/Charcoal), Drums, Guitar/Bass, Piano, Flute

"you are not disabled by your disabilities but rather, abled by your abilities." -Oscar Pistorius
User avatar
MachineGhost
Executive Member
Executive Member
Posts: 10054
Joined: Sat Nov 12, 2011 9:31 am

Re: November 2015 I Bond Rates

Post by MachineGhost » Tue Nov 03, 2015 8:38 pm

Greg wrote: That last chart looks a little funky. Where is the black line? I only see blue, and heavier blue line.
It was my impression it was the total investment line.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes

Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet.  I should not be considered as legally permitted to render such advice!
Post Reply