Gyroscopic Investing

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


https://www.treasurydirect.gov/indiv/re ... dterms.htm

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

I feel so rich.

so why do we like them? because they don't depend on FDIC, and they are an inflation hedge?

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.

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!

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:



Nice chart!

That last chart looks a little funky. Where is the black line? I only see blue, and heavier blue line.

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.