I Bond Investors: April May Be Your ‘Decision Month’

Summary

  • Inflation report on April 14 will set the I Bond’s six-month variable rate, taking effect May 1.
  • Right now, it looks like the new six-month variable rate could be lower than the current 2.76%.
  • However, it’s possible the May 1 fixed rate – which stays with the I Bond forever – will rise above the current 0.0%.

The idea with I Bonds is to build a large inflation-protected cache, as part of an overall portfolio that includes stocks, bonds, nominal Treasurys, TIPS, bank CDs, mutual funds. The difficulty is that there is a $10,000 per person per year purchase limit on I Bonds, so to build a large stockpile you have to buy them every year. And then the question is: When do you make the purchase?

Read my full analysis on SeekingAlpha.com

Advertisements
This entry was posted in Investing in TIPS. Bookmark the permalink.

One Response to I Bond Investors: April May Be Your ‘Decision Month’

  1. Charlie montgomery says:

    Here’s hoping for runaway inflation. Then they will probably cap the variable rate at 5% for folks with our foresight. Rule changers mid game need to be horse whipped. Been maxing out x 2 since 2006.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s