iBonds Explained! (Is 9.62% Guaranteed For Real?)

I hate clickbait, and clickbait isn’t just here on YouTube but it’s everywhere. Buy this car and 0% interest rate for 5 years ( you go and they well you need to have a perfect credit score since birth), get this free iphone ( you have to bring a person and the iphone isn’t free, we just pay it off over 24 months and if you leave you pay ). And now the biggest clickbait of them all is Series I bond, they are offering 9.62%. Basically, Risk free, because if you don’t get paid, it means the country is over.

So in this video we are going to break down the clickbait, what exactly a bond is, how much you can invest into, and if this is actually worth the investments.

One Gold piece weight 5oz, and they melt it down and put 1oz per gold piece, is it still worth the same, the answer is no, but you do have more.

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1. What are these I bonds

-These are savings bonds issued by the US government to us the consumer directly

-You can buy them by going to treasury direct or buy paper bond via your federal tax return

-and whenever you think about a bond, think about a loan ( you are lending money to someone )

-so the most important factor is not how much they are going to pay you, but the likely hood that they will be able to pay you

I remember once: I lent a cousin of mine some money, for a crazy interest rate its been 8 years, I’m not kidding and he still hasn’t paid me.

Balance Sheet for the Gov: https://fiscal.treasury.gov/reports-statements/financial-report/balance-sheets.html

2. How Do these I bonds Work Exactly

-They work very similarly to a CD, but better

–You buy $10k worth that’s the limit and 5k paper bonds via federal tax return for a total of 15k ( but I found method to get 65k worth I’ll but a link down below )

But the idea is that these bonds are made up of factors, a fixed rate and inflation rate

Here are the details:

-The fixed rate is set for the life of the bond when you buy it ( right now its 0% )

-The inflation rate changes every year and when do the max add both of these up

-That’s how you get 9.62% ( which you will be paid but….)

Here is the catch:

-The fixed rate doesn’t change but the inflation rate is set every 6 months, so for now that’s what you’ll get but we don’t know what’s going to happen in the next 6 months

-You can’t cash out for at least 12 months

-Also, if you cash before 5 years you have penalized 3 months interest but you can keep the bond for 30 years

3. What I think is going to happen

-The Fed literally said they are going to whatever it takes to lower inflation

4. my opinion

-There are some obvious benefits, number 1 is preservation of capital

-Number 2 is taxes ( no state or local tax and federal taxes can be deferred until you cash out, and you could potentially pay no tax at all for educational purposes )

-Number 3 is safety ( which should be number 1, but the US government is the Risk Free investment and they will never let these bonds go below 0%)

But if I’m being honest: this makes me feel like I’m picking between two women that I don’t want to marry

-I don’t like these bonds because they aren’t making any money, they are just —–preventing me from losing money and they also tie me up for 12 months

-And I don’t like Cds because the rates are so stupidly low

Hack to get $65k worth: https://thefinancebuff.com/how-to-buy-i-bonds.html

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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