Gyroscopic Investing

Does anybody know of a calculator to assist with selling I-Bonds? On the TD page it shows me the date each was issued, and the interest rate it's currently earning. It isn't clear how that interacts with the 3-month interest rate penalty, nor does it tell me what the composite vs fixed rate is for the bonds.

Xan wrote: ↑Thu May 04, 2023 11:38 am
Does anybody know of a calculator to assist with selling I-Bonds? On the TD page it shows me the date each was issued, and the interest rate it's currently earning. It isn't clear how that interacts with the 3-month interest rate penalty, nor does it tell me what the composite vs fixed rate is for the bonds.

I am reading through the comments and answers in Tipswatch:

"Tipswatch says:
October 5, 2022 at 10:54 am
You can’t redeem the I Bond until one year after the month you made the purchase. So it will depend on when you made the purchase. The next variable rate is likely to be about 6.4%, so you’ll do fine for those six months. After the year is up, you should look at the composite rate you are earning. If it is high, you should wait another 3 months to redeem because of the three-month interest penalty on withdrawals before five years."

Presumably he could tell you where to find the composite rate if you go to his website and ask the question? Or, maybe answer all of your questions above?

Xan wrote: ↑Thu May 04, 2023 11:38 am Does anybody know of a calculator to assist with selling I-Bonds? On the TD page it shows me the date each was issued, and the interest rate it's currently earning. It isn't clear how that interacts with the 3-month interest rate penalty, nor does it tell me what the composite vs fixed rate is for the bonds.

Hey Xan,

Not sure if this will help or not, but have you used the Savings Bond Calculator from the TD site? Here is the link:

https://treasurydirect.gov/BC/SBCPrice

Note that is says on there:

<< The Savings Bond Calculator WILL NOT:

Give correct values for electronic bonds. The Calculator is for paper bonds only. For values of your electronic bonds, log in to your TreasuryDirect account. >>

But that is not actually accurate, unless they change it when the site updates tomorrow (on May 7). If you just enter the date and amount of your purchase, the serial number will come up as "NA" but the current values will be correct.

If you use that calculator, make sure to do a "save as" on your computer so that you don't lose whatever you have input. I actually do a printout of my inventory every so often and note the fixed rate of each I-Bond on that printout.

Using that calculator you can now get values up to 11/1/23 just by changing the "Value as of" date.

As Vinny's post from Tipswatch indicates, if you are going to redeem any bonds before the five-year mark, it probably makes sense to wait until three months after the new, lower rate kicks in.

If you are unsure of your fixed rate for any bonds, you can find them on this page:

https://www.treasurydirect.gov/savings- ... est-rates/

You'll have to scroll down and for some reason that data only goes back to November of 2018, but it could be helpful for newer purchases.

Hope some of the above helps!