I have 2 other things that are impacted by the inflation rate. 1. The taxable value of my home can only increase the lower of 5% and the inflation rate, (because my appraised value is much higher than my taxable value) 2. Cost of living increases at my company.
I find it anecdotal that any calculated increase that would benefit me is low: I bonds: 1.18% Cost of living increases: around 1.3%
and any calculated increase that would cost me is higher: The taxable value of my home: 2.4% The real inflation rate: X.X%
ursugardaddy said: Since I am whinning I suggest sticking it in your @ss because with the government low rates you would get a better feeling. Let them make all the money from your money and give you crumbs. 0% interest rate plus low CPIU rate.What if the CPIU rate continue to fall with a zero percent fixed interest rate? Within the future when interest rate go higher,you would have to take a lost on your money so you could obtain the higher fixed interest rate. Now is not the time to repeatedly throw your money into I-bonds. They say that a old fool use to be a young fool and that is currently what all you people are being used as...Fools
Take Care.
You still completely avoid the question on where one you should stash their short term cash, yet add another paragraph to the whining.
I Bonds are meant to be long-term investments and were never created for short term cash.This is the reason for the fees if you redeem them before 5yrs. It is for people that are scared of or do not want to take risk with their money. Within this economy even with risk high yield investments are going to perform well example Junk Bonds, Floating Rate and Mortgage Back Securities. When interest rate climb, the listed examples are going to perform well because interest rates do not have any other place to go but up. If you have all this extra cash as you are making it seem via this website than why not attempt to make the most of your money. This is why the world is going to hell because we can not help each other and people do not want to listen so enjoy your zero percent fixed rate and 3 month fees due to upcoming repeatedly higher interest rates. The worst performers in a rising-rate environment are likely to be longer-term low risk bonds, especially U.S. Treasuries. Short-term bonds have a lower duration of interest rate sensitivity than longer-term debt....I made 10% last year on one of my bond account, 13% on another and 15% on my high yield account. Currently at your going rate on the I-bonds it would take over 7yrs to obtain what I made within one year on my highest earning bond account. Timing any market is difficult, and timing the direction of interest rate movements is next to impossible for most investors but we are within the perfect economy that we can embrace and reap some serious rewards because we know where interest rates are heading....UP
You guys really need to seek a professional investment advisor anyway ~I'll focus on love because hate is such a burden to bear~
bbmak said: Thank for the update. However, the rate is really killing me, 1.18%
I feel your pain. PenFed credit union new CD rates were released today. You have to go over 4 years to get this rate.7 year rate is 1.25%. Hard to believe.
dj said: bbmak said: Thank for the update. However, the rate is really killing me, 1.18%
I feel your pain. PenFed credit union new CD rates were released today. You have to go over 4 years to get this rate.7 year rate is 1.25%. Hard to believe.
Ally has 1.3% with two rate increases and only 60 days penalty for 4 years.
No need to worry... inflation is way less than 1.18%... so you're still getting fairly compensated and increasing your purchasing power by loaning your money to the US government!
brettdoyle said: No need to worry... inflation is way less than 1.18%... so you're still getting fairly compensated and increasing your purchasing power by loaning your money to the US government! sarcasm here?
I just redeemed my ibonds and didn't get charged a penalty, even though I've had them for less than the minimum. The full balance + interest was deposited into my checking account 1 day after redeeming
stormdog123 said: How did you figure the "full balance"?
If you used one of the treasury direct tools, they show you the balance with the 3 month penalty if under five years.
+1. If you do the math yourself, you will see that the Treasury Direct tools automatically take the penalty into account when spitting out the current value of the bond.
thetobster said: I just redeemed my ibonds and didn't get charged a penalty, even though I've had them for less than the minimum. The full balance + interest was deposited into my checking account 1 day after redeeming
anyone else have a similar experience? Penalties are collected in person. They will be wearing black coats, and they will not be friendly.
CycloneFW said: stormdog123 said: How did you figure the "full balance"?
If you used one of the treasury direct tools, they show you the balance with the 3 month penalty if under five years.
+1. If you do the math yourself, you will see that the Treasury Direct tools automatically take the penalty into account when spitting out the current value of the bond.
oh, i had just been assuming they were showing the current value. oh well. thanks for clarifying
Since it hasn't been posted by MoneyOCD yet and has been out a few days, here you go. If anyone has any problems with my numbers, let me know. MoneyOCD, not trying to steal your thunder. Feel free to post your usual monthly synopsis and I will delete this post.
April CPI-U is posted = 232.531 Base line for next change (March) = 232.773 Total inflation for Apr = -0.1%
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