Find I Bonds Interest Rates BEFORE They're Published (Series I Savings Bonds)
Finance KZreadrs and bloggers like me share I Bonds rate predictions all the time, but here's a little secret: You don't need us!
These predictions aren't magic. It's easy to calculate upcoming interest rates on Series I Savings Bonds (including both the inflation rate and the fixed rate) - before the US Treasury announces them - by following a formula that works in any year.
Make sure to save this video so you can continue to reference it in the future!
As an example, this video also includes an I Bonds rate prediction for November 2022.
Relevant links:
- CPI-U data: www.usinflationcalculator.com...
- TIPS rates: home.treasury.gov/resource-ce...
- Why You Should ONLY Buy I Bonds in April or October: • Why You Should ONLY Bu...
- My actual investment portfolio: www.tripofalifestyle.com/mone...
00:00 - Introduction & Basics
01:51 - Why Calculate I-Bonds Rates Early?
03:03 - How To Calculate Future I-Bonds Rates
07:43 - Only Buy I-Bonds in April & October
#investing #finance #economics
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We're Lauren and Steven, and we followed some simple financial guidelines that allowed us to quit our full-time jobs forever by age 29. We created Trip Of A Lifestyle to share the knowledge that changed our lives for the better. All of our content is free.
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www.tripofalifestyle.com
Пікірлер: 34
Super informative! I was looking for how to calculate future I-bond rates. Thank you
@TripOfALifestyle
Жыл бұрын
Awesome. Really happy it helped you!
Steven, another no-nonsense, detailed, easy-to-understand video. Well done!
@TripOfALifestyle
Жыл бұрын
Thank you!
Update 10-13-2022: The September 2022 CPI-U number is 296.808. Plugging it into the TreasuryDirect formula yields 6.47% implied reset for November 2022 inflation-adjusted annualized rate. Dunno about the fixed rate (probably still 0%) ((296.808-287.504)/287.504)x2 a.k.a. ((Sep CPI-U - Mar CPI-U) / (Mar CPI-U)) x 2 (Both math formulas give the same answer -- just the one I'm using is what is posted on TreasuryDirect) Still not too shabby. A I-bond purchased during October 2022 would have a semi-annualized compounded rate of return (I think I got the terminology right) of 8.2% for the 1st year.
Thanks for the video, was wondering about this
@TripOfALifestyle
Жыл бұрын
Glad we could help!
Great video thank you!
@TripOfALifestyle
Жыл бұрын
Our pleasure. Don't forget to subscribe. 😊
Where can I find CPIU numbers? Could you share with me the link for that? Thank you.
@TripOfALifestyle
Жыл бұрын
The links to those resources are in the video description!
Is it possible to transfer my old ibonds that i have held for over 5 years into new ibonds with the much higher interest rate?
@TripOfALifestyle
Жыл бұрын
Your old I Bonds should already be earning the new rate. Remember, the inflation rate renews every 6 months for all existing I Bonds. In fact, your old bonds may be earning even more than new ones, because you might have bought them when the fixed rate component was higher than the current 0%!
I-bonds are a good place to keep emergency fund money tho right? since you can cash it out any time after the 1st year..
@TripOfALifestyle
Жыл бұрын
As long as you have even more emergency fund money in cash during that first 1-year period 😉
So what do you predict the CPI-U will be on thursday and the consequent I-bond rate November 1st?
@TripOfALifestyle
Жыл бұрын
That's all in the video! 😅
@wallace_n_gromit3180
Жыл бұрын
September 2022 CPI-U number is 296.808. Implied I-bond rate 6.47% in November. If you buy your I-bond during October your semi-annual compound rate of return will be 8.2% for the 1st year.
If April 2023 inflation CPI-U is less than that of September 2022, will I get negative I bonds rate for May 2023, as I bought I bonds in August 2022?
@TripOfALifestyle
Жыл бұрын
Nope. The composite rate of an I Bond can never be less than 0%.
@elachang
Жыл бұрын
@@TripOfALifestyleIf CPI-U for April 2023 is 274.310, and known CPI-U for Sept 2022 was 296.808, According to your formula: (274.310/296.808-1)x2=-15%
@TripOfALifestyle
Жыл бұрын
@@elachang Yes, but in the video, it also says "if the sum is negative, round up to 0%" for the composite rate. It can't go negative. 🙂
If the April 2023 cpi-u rate is exactly the same as the current October rate, does that mean the I-bond May rate will be zero?
@TripOfALifestyle
Жыл бұрын
Check out this video for a detailed answer: kzread.info/dash/bejne/c4JkmqOqk5vOZsY.html
@gabymalembe
Жыл бұрын
@@TripOfALifestyle So, according to your formula, if inflation is just as high as it is now, the May 1 2023 (super high) new rate will be zero. That seems odd.
@TripOfALifestyle
Жыл бұрын
@@gabymalembe If CPI-U is the same number on two different dates, then it means that the average inflation rate was 0% between those two dates. CPI-U isn't a rate; it's an index value that is proportional to the average price of goods at a given time.
Good information
@joe2guns
Жыл бұрын
Can you answer this question, can someone with a business and a trust buy 30k worth of I bonds?
What are you investing in right now? What should I buy? The market is taking a hit is this an opportunity to jump on?
@TripOfALifestyle
Жыл бұрын
We don't pay any attention to recent price changes when making investment decisions in the stock market. Here's how we do it: www.tripofalifestyle.com/money/how-to-invest-in-stocks/
@BurgerBoy-yv1vh
Жыл бұрын
@@TripOfALifestyle thank you I was looking for this section in the blog I've read almost the whole thing! I love everything about it thank you truly 🙏
@TripOfALifestyle
Жыл бұрын
@@BurgerBoy-yv1vh Glad to hear it! 🙂
if only there weren't a 10k limit.
@jaymontelongo7368
Жыл бұрын
Look into the gift box method of doubling.