Savings/investments/bonds Master Thread.

[Shaya E]

Are there any projections as to when Inflation rate will go down significantly and what are the odds of it going to near zero in the short term (less than 2 years)? Obviously anything can happen.

Definitely not within a year. After that you can withdraw it so it doesn't really matter. You can always pull it out if rates aren't attractive anymore. You wait 3 extra months so the penalty is those three unattractive rate months.

[CountValentine]

6/mo t-bill today 4.8%

[lazertek]

Reminder to all those who bought bonds to gift it can now be gifted, Happy New Year's.

[CountValentine]

Reminder to all those who bought bonds to gift it can now be gifted, Happy New Year's.

...but only 10k. 

[nucheiner]

Reminder to all those who bought bonds to gift it can now be gifted, Happy New Year's.

Any benefit at all as to when to gift it over? Probably makes sense to be organized and do it sooner. And also to avoid mistakenly purchasing more in 2023 and then being unable to cash out if needed until 2024.

[farmbochur]

Any benefit at all as to when to gift it over? Probably makes sense to be organized and do it sooner. And also to avoid mistakenly purchasing more in 2023 and then being unable to cash out if needed until 2024.

-1

The prudent thing would be to allow yourself time to evaluate if you'd like to purchase more under your own SSN in 2023. That would likely depend on where inflation and interest rates stand in April and/or October. Once you accept the gift, you eliminate (or - in the case of a <$10k gift - reduce) that option.

[Shaya E]

-1

The prudent thing would be to allow yourself time to evaluate if you'd like to purchase more under your own SSN in 2023. That would likely depend on where inflation and interest rates stand in April and/or October. Once you accept the gift, you eliminate (or - in the case of a <$10k gift - reduce) that option.

Yes and No. While receiving a gift does indeed preclude you from buying any more that year, you can always buy again as a gift for the following year. Since I Bonds are locked in for a year there is no practical ramifications to having newly purchased I Bonds sitting in a gift box for a year. As a matter of fact, I would argue that it's better to redeem a gift bond and buy more gifts rather than just leaving them in the gift box and buying new ones straight out since this way the earlier bonds can already be liquidated.

[farmbochur]

As a matter of fact, I would argue that it's better to redeem a gift bond and buy more gifts rather than just leaving them in the gift box and buying new ones straight out since this way the earlier bonds can already be liquidated.

I don't follow this argument. The 1 year minimum holding period on gifts begins at the purchase date, not the gifting date. Accepting the gift does not impact the earliest liquidation date.

[Shaya E]

I don't follow this argument. The 1 year minimum holding period on gifts begins at the purchase date, not the gifting date. Accepting the gift does not impact the earliest liquidation date.

Exactly. Therefore, if someone accepts last year's gifts for his yearly 10k allotment and buys 10k more as a gift for next year he has the first 10k hat he can already withdraw (or whenever it becomes a year old, certainly before 2024). OTOH, if he buys 10k of new Bonds this year then all 20k is locked up until 2024. Last years due to not being able to be claimed until then and this years due to not being a year old.

[CountValentine]

Any benefit at all as to when to gift it over? Probably makes sense to be organized and do it sooner. And also to avoid mistakenly purchasing more in 2023 and then being unable to cash out if needed until 2024.

Just gift it over in 2023. If you want to buy more now it would just be gifted in 2024. Or you can just buy now (not gift) and gift over your current gift in 2024. Just your preference.

[Iz]

Better to buy now or wait until rate change? Going up or down?

[Joe4007]

Going up or down?

If you know the answer to this, you can make a lot more money investing in risk assets.

[CountValentine]

If you know the answer to this, you can make a lot more money investing in risk assets.

I will bet you the next rate goes down. Unless something outrageous happens, this is a certainty.

[mlight]

Wife and I both not able to open the CIT Bank no penalty cd. What's next best option for high yield savings? Need money liquid

[CountValentine]

Wife and I both not able to open the CIT Bank no penalty cd. What's next best option for high yield savings? Need money liquid

Short term t-bills through a brokerage account that can be sold at any time.
Bought more this week and the rates were:
13 week - 4.68
26 week - 4.89

[sillypainter]

Wife and I both not able to open the CIT Bank no penalty cd. What's next best option for high yield savings? Need money liquid

Robinhood Gold 4%. Easy peasy. FDIC insured.

[Euclid]

Short term t-bills through a brokerage account that can be sold at any time.
Bought more this week and the rates were:
13 week - 4.68
26 week - 4.89

How long does settlement take after a sale? Ie how long does it take for the money to become liquid?

[CountValentine]

How long does settlement take after a sale? Ie how long does it take for the money to become liquid?

Have not sold any. I either let them mature and funds are available next day or let them rollover. Going to guess a sale would be 3 days but that is a wild guess.

[Euclid]

Have not sold any. I either let them mature and funds are available next day or let them rollover. Going to guess a sale would be 3 days but that is a wild guess.

So it wouldn't be a 1:1 replacement for a savings account since the money isn't really liquid

[CountValentine]

So it wouldn't be a 1:1 replacement for a savings account since the money isn't really liquid

We are talking about online accounts. Fidelity is same day ACH's for my CU. IIRC Cit Bank is not that fast.
ETA: Someone would have to do a t-bill sale to see the timeframe.
Schwab money fund current 7-day yield is 4.27%.