The tax refund option is of course ancient history for this year. The annual limit on I Bond purchases is $10,000 per Social Security Number per calendar year with an added $5000 which may be taken as part of your tax return. This may be your last chance to do this by jumping in with both feet and doubling up. There's nothing like starting a race way out in front. It just means that this may be the last huge pop of one-year returns from the inflation component. Many factors will continue to work in their favor. This doesn't mean that I Bonds won't continue to be a great investment in the future. The reason is that this is quite possibly the high point in I Bond yields for a while. It asks readers to straighten up in their chairs and listen carefully. Over the past two years I have published five articles on this site attempting to give SA readers a detailed and accurate picture of the workings of I Bonds. Andrew Bary of Barron's came out with a reasonably accurate piece two days ago (with just a small mistake on the months applicable to the upcoming November 1 reset). The recent high inflation rates have reached a level where the virtues of I Bonds can't be missed, The quality of these articles has also improved somewhat although many still don't grasp some of the subtleties which make I Bonds truly special. Even the world of mainstream financial journalism has started to catch on, albeit about a year late. Quite simply, they do something no other assets does as well: keep up with inflation. While I Bonds are still a minor niche in the fixed income world, they may deserve a max position in your portfolio. What this means for you as I Bond investors is that it may be time to think strategically and creatively about I Bonds. This happened because the odds of longer and stronger Fed rate hikes increased. Treasuries fell and rates rallied, especially at the shorter maturities. The year over year rate of 8.2% was interpreted as a "hot" number and roiled the markets a bit, immediately sending the Dow Jones Industrial Index ( DJIA ) down about 800 points, from positive 300ish to negative 500ish. This morning, October 13, 2022, at 8:30 AM Eastern time, the Treasury released inflation data for September.
0 kommentar(er)
