Author Topic: Savings/investments/bonds Master Thread. (Read 133853 times)

CountValentine · « **Reply #140 on:** September 08, 2022, 03:18:30 PM »

Quote from: gozalim on September 08, 2022, 02:45:09 PM

isn't half the data on that question in already, and so far pointing towards lower rate?

Last month threw everything up in the air. Will have to wait to see if it was a fluke. We are at 6.06 with 2 months to go.
https://thebusinessnewspaper.com/2022/08/28/what-will-the-i-bond-interest-rate-be-in-november-2022/#:~:text=Assuming%20a%20base%20fixed%20rate%20of%200%25%2C%20the,unadjusted.%20DNE%20estimates%20a%20whopping%2012.4%25%20annualized%20yield.

CountValentine · « **Reply #141 on:** September 13, 2022, 09:34:41 AM »

Great inflation number for the month means bad news for I-bond rate. Went up 0.1% last month.

ShimshonK · « **Reply #142 on:** October 06, 2022, 12:46:05 AM »

https://www.cnbc.com/2022/10/04/as-demand-soars-for-series-i-bonds-treasurydirect-gets-a-makeover.html

shmooz · « **Reply #143 on:** October 12, 2022, 08:58:57 AM »

https://www.wsj.com/articles/that-sky-high-i-bond-interest-rate-will-be-coming-down-to-earth-11665541224?mod=mhp

Predicting 6.4% for next 6 months

but if you buy before November I think you get current rate for first 6 months, correct?

farmbochur · « **Reply #144 on:** October 12, 2022, 09:05:03 AM »

Quote from: shmooz on October 12, 2022, 08:58:57 AM

but if you buy before November I think you get current rate for first 6 months, correct?

Yes

Joe4007 · « **Reply #145 on:** October 13, 2022, 10:43:28 AM »

Quote from: shmooz on October 12, 2022, 08:58:57 AM

https://www.wsj.com/articles/that-sky-high-i-bond-interest-rate-will-be-coming-down-to-earth-11665541224?mod=mhp

Predicting 6.4% for next 6 months

but if you buy before November I think you get current rate for first 6 months, correct?

So 6.6%?

ETA: 6.47%

https://www.wsj.com/livecoverage/stock-market-news-today-2022-10-13-cpi-report/card/i-bond-rate-will-likely-drop-to-xx-after-cpi-report-c1fyusgIbQ9GlSIN3BxD

yungermanchik · « **Reply #146 on:** October 25, 2022, 02:39:27 PM »

I'm trying to buy I-bonds but there was an issue with the routing number I entered for my treasury direct account. (Apparently, Chase NJ has different routing numbers for deposit slips and checks/debit. I copied from a deposit slip.)
Is there any way to get it fixed in time to buy at this rate? Or is there another way to buy I-Bonds?

CountValentine · « **Reply #147 on:** October 25, 2022, 02:47:26 PM »

Quote from: yungermanchik on October 25, 2022, 02:39:27 PM

I'm trying to buy I-bonds but there was an issue with the routing number I entered for my treasury direct account. (Apparently, Chase NJ has different routing numbers for deposit slips and checks/debit. I copied from a deposit slip.)
Is there any way to get it fixed in time to buy at this rate? Or is there another way to buy I-Bonds?

The rumor was they are making changes, so it is easy to change/correct linked bank accounts. I have not seen it yet.

Can another family member (spouse) make/have an account? They can by in your name as a gift.

yungermanchik · « **Reply #148 on:** October 25, 2022, 02:48:55 PM »

Quote from: CountValentine on October 25, 2022, 02:47:26 PM

The rumor was they are making changes, so it is easy to change/correct linked bank accounts. I have not seen it yet.

Can another family member (spouse) make/have an account? They can by in your name as a gift.

I opened an account for my wife with the same mistake

Shaya E · « **Reply #149 on:** October 25, 2022, 03:08:25 PM »

Quote from: yungermanchik on October 25, 2022, 02:48:55 PM

I opened an account for my wife with the same mistake

Anyone you know can buy it as a gift for you. I'm not sure about the tax implications of that though.

CountValentine · « **Reply #150 on:** October 25, 2022, 03:32:58 PM »

Quote from: Shaya E on October 25, 2022, 03:08:25 PM

Anyone you know can buy it as a gift for you. I'm not sure about the tax implications of that though.

Stay below the 16k gift tax exclusion. If you buy 20k for someone as a gift. Transfer 10k this year and 10k next year I believe it still counts as a 20k gift for 2022.

yungermanchik · « **Reply #151 on:** October 25, 2022, 07:15:16 PM »

If I transfer or write a check to a brother/neighbor for a large sum (for him to buy for me) will that raise flags?

yungermanchik · « **Reply #152 on:** October 25, 2022, 08:02:32 PM »

Quote from: CountValentine on October 25, 2022, 03:32:58 PM

Stay below the 16k gift tax exclusion. If you buy 20k for someone as a gift. Transfer 10k this year and 10k next year I believe it still counts as a 20k gift for 2022.

@CountValentine is the 16k an issue for transferring the money to the one who will buy it or just for gifting the bond?
In other words, can I transfer 20k to someone that will buy 10kfor me and 10k for my wife?

nucheiner · « **Reply #153 on:** October 25, 2022, 08:36:53 PM »

Quote from: yungermanchik on October 25, 2022, 08:02:32 PM

@CountValentine is the 16k an issue for transferring the money to the one who will buy it or just for gifting the bond?
In other words, can I transfer 20k to someone that will buy 10kfor me and 10k for my wife?

In this case your wife is gifting 10k and you are gifting 10k. Definitely no issue (better if she is joint on which ever account the funds are being transferred from).

yungermanchik · « **Reply #154 on:** October 25, 2022, 08:41:02 PM »

Quote from: nucheiner on October 25, 2022, 08:36:53 PM

In this case your wife is gifting 10k and you are gifting 10k. Definitely no issue (better if she is joint on which ever account the funds are being transferred from).

I think you misunderstood my question, I was asking, If I write a $20K check to my brother, will that be a problem, or raise flags with the bank/IRS?

CountValentine · « **Reply #155 on:** October 25, 2022, 09:01:35 PM »

Quote from: yungermanchik on October 25, 2022, 08:41:02 PM

I think you misunderstood my question, I was asking, If I write a $20K check to my brother, will that be a problem, or raise flags with the bank/IRS?

Should not be an issue or raise any flags. If that is consider a gift to him you would have to talk to a tax advisor.
Any gifts between spouses is not subject to a gift tax no matter the amount.

He would buy 10k as a gift to you with your spouse as co-owner. Then 10k to your spouse with you as co-owner.

If you are worried about the 20k to him then you and your spouse each give him 10k.

incendia · « **Reply #156 on:** October 25, 2022, 09:08:32 PM »

Quote from: CountValentine on October 25, 2022, 03:32:58 PM

Stay below the 16k gift tax exclusion. If you buy 20k for someone as a gift. Transfer 10k this year and 10k next year I believe it still counts as a 20k gift for 2022.

It might be a "gift" in terms of treasury direct but I think the IRS would treat it as a loan

Quote from: yungermanchik on October 25, 2022, 08:41:02 PM

I think you misunderstood my question, I was asking, If I write a $20K check to my brother, will that be a problem, or raise flags with the bank/IRS?

Probably not* as long as it an account in regular use, but he might have issues if he's applying for a mortgage soon

* banks can shut you down for any reason or no reason at all

CountValentine · « **Reply #157 on:** October 25, 2022, 09:09:00 PM »

DP: Purchased yesterday morning and everything posted today.

CountValentine · « **Reply #158 on:** October 25, 2022, 09:13:20 PM »

Quote from: incendia on October 25, 2022, 09:08:32 PM

It might be a "gift" in terms of treasury direct but I think the IRS would treat it as a loan

It is a gift for both, TD and IRS. The question is does count as 20k this year or 10k this year and 10k next year. The way around it is buy 10k, then another 10k swapping owners.

MeirS · « **Reply #159 on:** October 25, 2022, 11:39:30 PM »

I read some of the 160 messages in this thread, but not all of them, so forgive me if this was already mentioned or if this is the wrong thread.

Can a non profit purchase $10k worth of I bonds?

Do I understand correctly that this is in no way more risky than it sitting in a checking account?

Because I'm dealing with money which isn't mine, I want to be sure I'm not abusing the trust I was given.