38 thoughts on “TIPS vs I Bonds–What's the Best Way to Hedge Against Inflation?”
Thanks, Rob. Great video. I invested very little into I-bonds. It's not really for me. I can see why people buy them, though. There are some benefits. This helped me understand TIPS as I didn't really understand how they worked. I'm a nurse and I picking a lot of overtime so that I can invest as much as possible into my portfolio. Learning about all these strategies is so interesting. Thanks again.
great stuff… bonds are a new thing for me (lots of us now ) Is the iBond rate an APY ? its called "Interest Rate" on the site but it compounds each 6 months…meaning its reinvested I assume, so the APY is Higher than 6.89 % . What say you ? Regards
I trust everyone is hedged. I cap out a 403b 457 and a 401k and both IRA ROths, and give all my kids and myself 10k a year Ibonds and who cares. i just want to make sure.
From what I understand, the 3 month penalty could actually be for an amount of $0 if the current 6 month rate of the I-bond is 0.0% at the time the bond is redeemed.
I know very little about finances, but I've been looking for a way to keep a "savings account/emergency fund" that will hedge against this crazy inflation. The value of the cash under my mattress or the money sitting in my checking account is wasting away. I Bonds seem to be the a great answer for me. Thanks for the video.
Hi Regarding the 3 month interest penalty if I sell i bonds within 5 years, how is the 3 month penalty calculated, since rates change every 6 months? Is it based on average monthly interest over the duration of the holding period? Or last 3 months of interest before sale?
Hi Rob! I’m watching this now in May of 2022 and can’t thank you enough for your fantastic explanation between these two options and helping me protect my assets!
Tax deferment on I Bonds is huge! This makes I Bonds effectively an IRA – you get tax-free compounding. I am committing to buying 10K worth of I Bonds per year and I am looking into overpaying my taxes so I get the extra 5K worth of I Bonds.
It's wild how much things have changed since the video was posted. Now the ai bond 7.1 going to go higher in May, due inflation hitting 8.5% currently.
I've never bought I bonds. It looks like the only place you can buy them is through treasury direct…. Anyone ever have a problem getting their money back after their investment is matured?
Thank you Rob. As always a well thought out and presented bit of information. I think I'm going to purchase I-bonds this year and then consider purchasing each year moving forward.
With respect to using you tax refund to buy I-Bonds, if you have enough of a refund due, does each spouse get to buy the additional $5,000 worth of I-Bonds or is it $5,000 per joint tax return?
I suspect you maxed out your I bond limits for both of you this year and will again got next year given the huge increase in CPI. Thanks for the video.
Thanks, Rob. Great video. I invested very little into I-bonds. It's not really for me. I can see why people buy them, though. There are some benefits. This helped me understand TIPS as I didn't really understand how they worked. I'm a nurse and I picking a lot of overtime so that I can invest as much as possible into my portfolio. Learning about all these strategies is so interesting. Thanks again.
Can you comment on the upcoming 10 year TIPS auction? What is the expected rate and how does it compare versus buying an I bond?
great stuff… bonds are a new thing for me (lots of us now ) Is the iBond rate an APY ? its called "Interest Rate" on the site but it compounds each 6 months…meaning its reinvested I assume, so the APY is Higher than 6.89 % . What say you ?
Regards
I agree, the possibility of a negative rate on a TIP makes them a no-go.
I trust everyone is hedged. I cap out a 403b 457 and a 401k and both IRA ROths, and give all my kids and myself 10k a year Ibonds and who cares. i just want to make sure.
Question? what about SCHP?
Great explanation Rob! Plain and clear as usual. Now I seem to understand the specifics
Good video and explanation thank you!
Can you add a beneficiary on an I Bond?
From what I understand, the 3 month penalty could actually be for an amount of $0 if the current 6 month rate of the I-bond is 0.0% at the time the bond is redeemed.
I know very little about finances, but I've been looking for a way to keep a "savings account/emergency fund" that will hedge against this crazy inflation. The value of the cash under my mattress or the money sitting in my checking account is wasting away. I Bonds seem to be the a great answer for me. Thanks for the video.
Hi Regarding the 3 month interest penalty if I sell i bonds within 5 years, how is the 3 month penalty calculated, since rates change every 6 months? Is it based on average monthly interest over the duration of the holding period? Or last 3 months of interest before sale?
Is there an option for the interest compound in the ibond ?
THEY SHOULD TEACH THIS STUFF IN HIGH SCHOOL!
sorry for all caps.
Great video. Very informative.
Excellent video. Appreciate your work 💪🏽
Thank you so much. Mr Rob
Hi Rob! I’m watching this now in May of 2022 and can’t thank you enough for your fantastic explanation between these two options and helping me protect my assets!
Tax deferment on I Bonds is huge! This makes I Bonds effectively an IRA – you get tax-free compounding. I am committing to buying 10K worth of I Bonds per year and I am looking into overpaying my taxes so I get the extra 5K worth of I Bonds.
Update: May 2022 I Bonds yield 9.6% – huge!
@Rob – can I use my I Bonds to pay for my grandchildren's education without taxation?
How is the typical interest in I-bond when inflation is 2% (typically the case)
Great demonstration. I will purchase I-bond …currently pays almost 10% (May 2022). Glad to know that it I-bond won't go negative.
Rob, mirror or upload your vids to Rumble. Extend your reach, maybe make some more cash? Be great to have access to your channel there too.
Hey Rob. Presently the I bond is paying 7.12. Many think it will go to 9 something. Just reviewed your video on the subject. Any updates?
you called this one. great video. keep it up!
It's wild how much things have changed since the video was posted. Now the ai bond 7.1 going to go higher in May, due inflation hitting 8.5% currently.
I've never bought I bonds. It looks like the only place you can buy them is through treasury direct…. Anyone ever have a problem getting their money back after their investment is matured?
I understand that the new rates for I Bonds are at 7.1%! Great video and tips!
Thank you Rob. As always a well thought out and presented bit of information. I think I'm going to purchase I-bonds this year and then consider purchasing each year moving forward.
Thanks for the video! I bonds are unknown to many, but good option at 7.12% right now, with inflation on the rise.
These I series Savings Bonds would be a great investment but you're limited to $10K per year.
With respect to using you tax refund to buy I-Bonds, if you have enough of a refund due, does each spouse get to buy the additional $5,000 worth of I-Bonds or is it $5,000 per joint tax return?
Thanks, excellent video
How does the fixed rate get set on IBonds? Is there a chart of past fixed rate on Ibonds?
With I bonds, do you receive interest every 6 months or does it compound/add to the bond?
My entire Emergency Fund is invested in I-Bonds. Since they are tied to a checking account, there is little issue with liquidating them.
I suspect you maxed out your I bond limits for both of you this year and will again got next year given the huge increase in CPI. Thanks for the video.