Comments on: Meager rollover opportunity available http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/ Fri, 19 Mar 2010 01:25:51 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-57326 Mon, 08 Feb 2010 22:08:57 +0000 http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-57326 Robert - you'll be able to answer your own question after you <a href="http://www.savings-bond-advisor.com/series-i-interest-rate-rules/" rel="nofollow">understand how I bond interest rates work</a>. It's silly to invest money in something without understanding how it works. Tom Adams Robert - you'll be able to answer your own question after you understand how I bond interest rates work. It's silly to invest money in something without understanding how it works.

Tom Adams

]]> by: Robert Smith http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-57271 Sat, 06 Feb 2010 16:37:43 +0000 http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-57271 I currently holding I bonds that are not receiving interest. In your opinion, should I cash these in and repurchase at the current 3.36%? I currently holding I bonds that are not receiving interest. In your opinion, should I cash these in and repurchase at the current 3.36%?

]]> by: Tom Adams http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-52577 Fri, 11 Dec 2009 14:25:03 +0000 http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-52577 Jim - The TreasuryDirect site gives the rates for six month terms, which is unlike anything you'll find anywhere else in the investment universe. On my site I give the rates as the more universal annual rates, then point out they they're only good for six months. The 3.4% fixed rate is an annual rate. So if you want to combine it with the -2.78% six-month rate from the Treasury site you'd have to cut it in half to make a six month rate - thus you'd have 1.7% minus 2.78% is less than zero. 5.56%, but the way, is just 2.78 x 2. So your point of confusion is mixing TreasuryDirect's annual rates with its six month rates. I try to avoid that confusion here by never giving six-month rates. Tom Adams Jim - The TreasuryDirect site gives the rates for six month terms, which is unlike anything you'll find anywhere else in the investment universe.

On my site I give the rates as the more universal annual rates, then point out they they're only good for six months.

The 3.4% fixed rate is an annual rate. So if you want to combine it with the -2.78% six-month rate from the Treasury site you'd have to cut it in half to make a six month rate - thus you'd have 1.7% minus 2.78% is less than zero.

5.56%, but the way, is just 2.78 x 2. So your point of confusion is mixing TreasuryDirect's annual rates with its six month rates. I try to avoid that confusion here by never giving six-month rates.

Tom Adams

]]> by: Jim asher http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-52524 Thu, 10 Dec 2009 23:12:39 +0000 http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-52524 Tom- in your reply to my inquiry on Nov 4th, 2009,you stated the following: (The inflation rate used in the calculation for this bond in the Oct 09-April 10 rate period is -5.56% (the annualized change in the Consumer Price Index between Sep 08 and Mar 09). So your rate should really be -2.16%, but the composite rate can't go below zero). However, when I go to TREASURYDIRECT and scroll down to the inflation table it shows a -2.78% for May 09, which I thought was for a period of six months. If that were the case shouldn't I have earned the difference in the fixed rate of +3.4% and the inflation rate of -2.78% or +.62%? I am missing something. I do not understand where where the -5.56% came from. That rate is not shown in the table. Thanks for your help. Jim Asher Tom- in your reply to my inquiry on Nov 4th, 2009,you stated the following: (The inflation rate used in the calculation for this bond in the Oct 09-April 10 rate period is -5.56% (the annualized change in the Consumer Price Index between Sep 08 and Mar 09). So your rate should really be -2.16%, but the composite rate can't go below zero).
However, when I go to TREASURYDIRECT and scroll down to the inflation table it shows a -2.78% for May 09, which I thought was for a period of six months. If that were the case shouldn't I have earned the difference in the fixed rate of +3.4% and the inflation rate of -2.78% or +.62%? I am missing something. I do not understand where where the -5.56% came from. That rate is not shown in the table. Thanks for your help.
Jim Asher

]]> by: Tom Adams http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-50632 Wed, 04 Nov 2009 16:42:20 +0000 http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-50632 Jim - this I bond earns a composite of the 3.4% fixed rate plus the inflation rate. The inflation rate used in the calculation for this bond in the Oct 09-April 10 rate period is -5.56% (the annualized change in the Consumer Price Index between Sep 08 and Mar 09). So your rate should really be -2.16%, but the composite rate can't go below zero. You are very lucky to have an I bond this large with a fixed rate this high. Don't even think of cashing it in. Tom Adams Jim - this I bond earns a composite of the 3.4% fixed rate plus the inflation rate. The inflation rate used in the calculation for this bond in the Oct 09-April 10 rate period is -5.56% (the annualized change in the Consumer Price Index between Sep 08 and Mar 09). So your rate should really be -2.16%, but the composite rate can't go below zero. You are very lucky to have an I bond this large with a fixed rate this high. Don't even think of cashing it in.

Tom Adams

]]> by: Jim asher http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-50567 Tue, 03 Nov 2009 21:51:35 +0000 http://www.savings-bond-advisor.com/meager-rollover-opportunity-available/#comment-50567 Please explain to me how a $10,000. “I” bond, purchased 04/2001,with a 3.4% fixed rate can have a 0% composite return for Oct 2009. Please explain to me how a $10,000. “I” bond, purchased 04/2001,with a 3.4% fixed rate can have a 0% composite return for Oct 2009.

]]>