New I-Bond Variable Rate, 10/12/23

[yogibearbull]

New I-Bond Variable Rate, 10/12/23

Semiannual inflation rate 1.9723%

Composite rate = b + 2f + bf, where b is the base/fixed rate (annual), f is the semiannual inflation rate.

Base/fixed rate should go up from 0.90% to 0.90-1.5% (compare with the current 5-yr TIPS rate of 2.39%)

So, the estimated I-Bond rate range for 11/1/23 is 4.86-5.47%.

The actual I-Bond rate will be posted on 11/1/23.

ybbpersonalfinance.proboards.com/post/1209/thread

[yogibearbull]

Social Security COLA for 2024 will be +3.2%.

[anitya]

That New I bond rate would be comparable to the 30 yr rate, without similar Duration risk. Not increasing my allocation though. Have enough.

[yogibearbull]

For many I-Bond holders, the decision may to hold or fold. If they bought last year, they have to wait at least 12 months, and then up to 5 years, there is 3 month interest penalty (Treasury Direct value shown is net of applicable penalty). It is better to sell them at 6 month intervals from the purchase date to make full use of current rates. Also, sell early in the month to still get whole month's interest (flip side is to buy late in the month, although most won't be buying).