Investing for Retirement

[sighyoung]

Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how

Wuuuuuuut that's insane. Are people that down on the US economy?

No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.

[Joe Shlabotnik]

Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how

Wuuuuuuut that's insane. Are people that down on the US economy?

No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.

Are TIPS different than these? I can't find an answer in my surfing so far.

[G. Keenan]

Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how

Wuuuuuuut that's insane. Are people that down on the US economy?

No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.

Are TIPS different than these? I can't find an answer in my surfing so far.

I believe with TIPS just the principle is indexed to inflation, not the interest rate.

[CardsofSTL]

Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how

Definitely a good thing to be doing now. Nice tip kripto-Popeye

[vinsanity]

Make inflation work for you! The rate on federal I bonds has skyrocketed to 9.62%. The rate will be re-set in October, but it will still likely be fairly high. You can purchase up to $10k per year through TreasuryDirect.gov.

https://treasurydirect.gov/indiv/resear ... uy.htm#how

Wuuuuuuut that's insane. Are people that down on the US economy?

No--these are I Bonds, which the Treasury Department pegs to the inflation rate to protect against inflation, and provides a small amount of additional interest. The bonds pay so well because the inflation rate is so high right now--over 8%. The Treasury Department will reset the rate in November, and if inflation is lower, the bond interest rate will be lower.

Well, right. But sorta? I thought that the inversion of rates on bonds in the past meant people were anticipating inflation and recession? So when longterm bonds have high rates, it's because of increased risk? Or am I an idiot and thinking about what I think are t-bonds? And I don't know what I-bonds are?

[heyzeus]

Good thing I'm not retiring this year. Bye bye investment account.

[Joe Shlabotnik]

Good thing I'm not retiring this year. Bye bye investment account.

It was worse 2.5 years ago! This too shall pass.

unless it doesn't of course...

[mikechamp]

For those who haven't retired yet, here's something to consider:

P.S. I promise I'm not trying to make a political statement in this thread. I'm merely waving the caution flag for all who will be inheriting money.

Governments are likely to pillage the $80 trillion ‘Great Wealth Transfer’ to fund their national debt, says UBS

If you’re eyeing the $80 trillion promise of the Great Wealth Transfer and wondering what it may do for your personal finances, you’re not the only one. Governments are asking themselves the same, according to UBS.

The eye-watering sums due to change hands via inheritance in the coming decades, will change the financial fortunes of millions of people. But it could also help rectify the fiscal trajectories of some of the world’s most advanced nations. Those funds, UBS says, could be used to balance the books for countries with high levels of unsustainable national debt.

Studies have found that over the next 20 to 30 years as much as $124 trillion will be passed down from older generations to their younger counterparts. The baby boomers—people born between 1946 and 1964—are the wealthiest generation in history. As these individuals begin passing on, sums will go immediately to their Gen X, millennial, and Gen Z successors, and some cash will go to spouses.

But UBS chief economist Paul Donovan believes governments will want to add their names to the list of recipients. He said: “At UBS, our modeling suggests that over the next 20 years, over $80 trillion of wealth will change hands. The change in wealth comes at a time when many governments around the world have high debt and deficits. It seems unrealistic to suppose that governments will just sit idly by as this wealth moves around. We would expect governments to attempt to mobilize that wealth to help fund their debt, but in doing so that denies private sector investment access to some of those funds.”

Much attention has been focused on the budget deficit in the U.S., the world’s largest economy. Economists aren’t worried about the volume of government debt—which recently hit $38 trillion—so much as how quickly it is accruing borrowing costs with no sign of slowing spending. There will be a moment of reckoning, analysts are convinced, when either bond markets bow out of buying any more U.S. debt because they believe the path is unsustainable, or the central bank is forced to intervene with quantitative easing—thus lowering the value of the debt.

https://www.yahoo.com/finance/news/gove ... 31853.html