Stocks rise as inflation cools

[Indy Texas 🇺🇦🇵🇸]

The interest rate in my high yield savings account has been going up for a month now (after about 10 years of drops) which is going to help me a lot since I don't do stocks at all, just the savings account.

You should look into Series I savings bonds.

 They're from the U.S. government, they pay you inflation, which is currently higher than any high yield savings account.(4.81% for the next 6 months, which is 9.62% annualized)

 At least until inflation cools off this is the best fool proof investment around. Your principal can't go down and you are limited to $10,000 per individual but can buy as little as $50. If you have a spouse they can buy up to $10,000, you can also do up to $10,000 per business, and up to $10,000 if you form a living trust.

 You have to hold the bond for at least 1 year and lose 3 months of interest if you redeem prior to 5 years(even with this, it still beats any HYSA around).

 https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
 
 

IMHO, bonds are suckers game unless you are nearing retirement.

I-Bonds are something to do with emergency fund money.

I don't think anyone is suggesting all of your savings should be going into them.

[GP270watch]

The interest rate in my high yield savings account has been going up for a month now (after about 10 years of drops) which is going to help me a lot since I don't do stocks at all, just the savings account.

You should look into Series I savings bonds.

 They're from the U.S. government, they pay you inflation, which is currently higher than any high yield savings account.(4.81% for the next 6 months, which is 9.62% annualized)

 At least until inflation cools off this is the best fool proof investment around. Your principal can't go down and you are limited to $10,000 per individual but can buy as little as $50. If you have a spouse they can buy up to $10,000, you can also do up to $10,000 per business, and up to $10,000 if you form a living trust.

 You have to hold the bond for at least 1 year and lose 3 months of interest if you redeem prior to 5 years(even with this, it still beats any HYSA around).

 https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm
 
 

IMHO, bonds are suckers game unless you are nearing retirement.

 emailking said "no stocks". without stocks I can't think of a better investment right now that's guaranteed to not go down. Bond funds are sinking due to interest rate increases, cash is trash and losing real purchasing power, CD's are paying basically nothing, real estate is expensive and possibly in a bubble. I Bonds have never been better, and folks who got I Bonds in the early 2000s and held them are getting a tremendous fixed rate and inflation. I Bonds are definitely something nice to have in your back pocket if you can swing it.

The calculator-table in this link shows you the actual amount and month breakdown for prior investments:

 https://eyebonds.info/ibonds/10000/ib_2000_01.html



 

[emailking]

I must say I'm intrigued. I hate having money locked but 10K isn't much compared to my savings.

[Amenhotep Bakari-Sellers]

D's are getting good fundraising numbers on gun control, the outparty is always favored in the Midterms, but soccer mom's may indeed now go for Ds in the Midterms due to Gun control, that's why I make a wave insurance map Beto is only 6 pts behind Abbott it's still a 303 map but we may be able to crack the red Wall

We need red flag laws regulations and universal background checks and R Senators Vance, Budd and Oz are political news
Comers, it's definitely gonna have an effect on PA Senate race where Toomey was pro gun control, that's why he won on the back of Michael Bloomberg in 2016.

Oz is the weakest candidates and there were cross over voters that voted in the R primary so to blanket say that Rs are gonna likely do well just because they have more votes in the primary is just wrong, especially in 303 states, as I have always said there is a hidden bok abd Brown abd female vote, users think Rs are underpolled that's what the insurrection was about white voters thinking that black and brown voters stole the Election from them

Why did we have the Nixon and Reagan and Gingrich Revolution, after MLK assassinated, black and brown voters stayed home and didn't vote they were content with Project living off Welfare, now they are voting in income inequality after the2008 Obama Revolution when NV, CO and VA black and brown states went from R to D

Wave insurance maps aren't wrong it just means that you expect a higher D Turnout model than it's projected, in 2010/2014 in same day we were at 33% 92M we had 65(62M in 2016 and we had 80/75M in Midterms partisan trends don't matter as much as Prez Election that's why Cheri Beasley is still within range to win NC Senate race she is only down two Fox news said D's need to target NC not just WI and PA because Beasley is an excellent candidate

[emailking]

Having a guaranteed 9.6% return exempt from state tax is not a suckers game. It's what every obsessive personal finance individual did in December/January to not hold excess savings in a zero interest account while the stock market was at all-time highs in spite of inflation concerns. It's not a bond market where your holding value can decline - in one year, I will have an extra $2k in income. This is why the federal government caps how much you can put in. The stock market wasn't going to beat that, even in an average year.

So I see you can buy 10K a year, but can you keep holding onto the ones you have while buying more, and still keep 9.6% for everything?

Correct, you can have $300,000 in holdings accruing interest if you buy every year for 30 years, and twice that if you marry. The interest rate resets every six months and may eventually go to zero if inflation settles, but then you just need to wait three months to cash out without foregoing the last month of interest (unless this inflation/rate keeps up for five years).

You will owe federal income tax on the profits at your marginal rate and thus less beneficial to higher earners (typically slightly higher rate than stock gains/dividends)

Let me repeat myself when I say everyone should have I-Bonds! It's locked for a year and you loose 3 months interest if you pull out before 5 years. But. If you have an emergency fund, what money market account are you going to get that with?

I must say I'm intrigued. I hate having money locked but 10K isn't much compared to my savings.

Took me a few weeks to get up the courage, but I just put 10K in series I bonds.

[GP270watch]

Having a guaranteed 9.6% return exempt from state tax is not a suckers game. It's what every obsessive personal finance individual did in December/January to not hold excess savings in a zero interest account while the stock market was at all-time highs in spite of inflation concerns. It's not a bond market where your holding value can decline - in one year, I will have an extra $2k in income. This is why the federal government caps how much you can put in. The stock market wasn't going to beat that, even in an average year.

So I see you can buy 10K a year, but can you keep holding onto the ones you have while buying more, and still keep 9.6% for everything?

Correct, you can have $300,000 in holdings accruing interest if you buy every year for 30 years, and twice that if you marry. The interest rate resets every six months and may eventually go to zero if inflation settles, but then you just need to wait three months to cash out without foregoing the last month of interest (unless this inflation/rate keeps up for five years).

You will owe federal income tax on the profits at your marginal rate and thus less beneficial to higher earners (typically slightly higher rate than stock gains/dividends)

Let me repeat myself when I say everyone should have I-Bonds! It's locked for a year and you loose 3 months interest if you pull out before 5 years. But. If you have an emergency fund, what money market account are you going to get that with?

I must say I'm intrigued. I hate having money locked but 10K isn't much compared to my savings.

Took me a few weeks to get up the courage, but I just put 10K in series I bonds.

 It's a no brainer in the short term, after a year you can re-evaluate the financial landscape and see how you like it.

[Amenhotep Bakari-Sellers]

Yeah, the state by state polls are giving D's the edge again, the Rs we're favored due to the Ukraine War and Gas prices but we are adapting to inflation, I am crossing my fingers for a Secular Trifecta, Rs were getting giddy again users and politicians about a Red wave and they forgot about Student Loan forgiveness gonna help D's when Biden does it even if it's 10 K because a Secularist Trifecta will give us a 50 K Student Loan Discharge

Student Loans Discharge doesn't just favor D's it favors everyone and if Rs kept the SEN would of gotten only 600 Stimulus not 2K

One hint that the state by state polls are in fact favoring D's was the ME polls Golden is supposed to lose and he is AHEAD

It's 8.5 percent inflation but only 3 percent unemployment when has the Incumbent party ever lost at 3.5 and Gore and Hillary only lost due to scandal, Martin OMalley not Bernie with Tim Kaine could of won in 2016 with low unemployment or BIDEN

Just remember in 22/26 there are 20 Rs up and 14 D's up in the Sen it's 20 D's and 14 Rs up in 24 but we have entrenched incumbentts in the swing states in 24