Stocks and investing

[WisNeuro]

Is that rate locked in for as long as you keep the bonds or does the variable part change every 6 months for the life of em?

The rate is locked in 6 months, take a look at that article, it outlines essentially what the first year of returns will be locked in at if you buy before the month is up.

Edit, any purchases today get moves to the next business day. So, you'll still likely have good returns in the short-term, just slightly different figures depending on rates over the next year.

---

Members don't see this ad.

 

[AcronymAllergy]

The rate is locked in 6 months, take a look at that article, it outlines essentially what the first year of returns will be locked in at if you buy before the month is up.

Edit, any purchases today get moves to the next business day. So, you'll still likely have good returns in the short-term, just slightly different figures depending on rates over the next year.

Ah, so if we purchase today, it'll probably get bumped to May and the new rate?

And if you cash after 12 months, you lose 3 months' worth of interest, correct?

 

[WisNeuro]

Ah, so if we purchase today, it'll probably get bumped to May and the new rate?

And if you cash after 12 months, you lose 3 months' worth of interest, correct?

As to the first question, I am not sure if you are locked in to the interest rate at the point of sale, or the point of issuance. My guess is the latter, though. To the second question, yes, if you cash in before the full maturity, you give up the three most recent months interest, from what I recall. So, if inflation goes down considerably and stays there, you may eventually be better off selling the bonds and moving the funds into something else. Still, a fairly liquid investment after a minimum amount of time.

As usual, make sure you are maxing out all of your match retirement options first, peeps. This is a good portion of an investment portfolio at the moment, but should just be a small portion.

 

[AbnormalPsych]

How's everyone feeling about their situation these days

 

[WisNeuro]

How's everyone feeling about their situation these days

Not bad, up and down year for the markets. But, I've got 20ish years til retirement, so I am not concerned about short-term blips. Just staying the course and diversifying. Inflation has definitely raised household costs, but we've also had a sizable increase in household revenue which more than offsets that, so there's that.

 

[Sanman]

How's everyone feeling about their situation these days

Great, everything is on sale.

 

[PsyDr]

How's everyone feeling about their situation these days

Short term: Down a LOT of money. Remind myself that until I cash in, it's just unrealized/imaginary money. Wish I sold off some of my growth stocks, but staying buckled with the ones I have. Happy I have the DRIP account. I'll continue to expect to make my living through my work. Holding my investment in physical items, while monitoring the market for deals. I believe that the banking industry has massively screwed up in car loan derivatives, so I'm monitoring that as a market indicator.

Long term: History and math show I'll come out the other end of this waaay ahead. Holding investment cash for 9 months, with the idea I will dump a bunch of money into the market in about 9 months. I continue to invest with the assumption that the working class with increase.

 

[WisNeuro]

Speaking of diversified investments. New I Bond rate is 6.89, with .4% being fixed. Only a small part of a portfolio, but I like having some safe, somewhat easily liquidable stuff hanging out there. I'll probably re-up the full amount come January.

 

[Sanman]

Short term: Down a LOT of money. Remind myself that until I cash in, it's just unrealized/imaginary money. Wish I sold off some of my growth stocks, but staying buckled with the ones I have. Happy I have the DRIP account. I'll continue to expect to make my living through my work. Holding my investment in physical items, while monitoring the market for deals. I believe that the banking industry has massively screwed up in car loan derivatives, so I'm monitoring that as a market indicator.

Long term: History and math show I'll come out the other end of this waaay ahead. Holding investment cash for 9 months, with the idea I will dump a bunch of money into the market in about 9 months. I continue to invest with the assumption that the working class with increase.

i think that's true for all of us. As long as you didn't invest all your cash in META at $378, I think it will be alright. I agree about the car loans.

 

[PsyDr]

i think that's true for all of us. As long as you didn't invest all your cash in META at $378, I think it will be alright. I agree about the car loans.

Waiting for meta’s data division to spin off to its own company.

 

[WisNeuro]

Waiting for meta’s data division to spin off to its own company.

You don't want to invest whole hog into the VR Metaverse/Second Life 2.0?

 

[AbnormalPsych]

Short term: Down a LOT of money. Remind myself that until I cash in, it's just unrealized/imaginary money. Wish I sold off some of my growth stocks, but staying buckled with the ones I have. Happy I have the DRIP account. I'll continue to expect to make my living through my work. Holding my investment in physical items, while monitoring the market for deals. I believe that the banking industry has massively screwed up in car loan derivatives, so I'm monitoring that as a market indicator.

Long term: History and math show I'll come out the other end of this waaay ahead. Holding investment cash for 9 months, with the idea I will dump a bunch of money into the market in about 9 months. I continue to invest with the assumption that the working class with increase.

Any rationale for 9 months? I too have been DCA this whole time buying on sale, while trying to put aside a bunch more to drop into the markets in early 2023. Got some great offers to shift around and park the emergency fund and this 2023 fund from one HYSA to another for a few months. Easy fun money / Xmas gift $.

 

[PsyDr]

Any rationale for 9 months?

Bloomberg's modeling predicts a crash in 2023. That's data driven, and I don't fully trust Bloomberg or any other data broker telling me to buy more data.

If you look at historical crashes like '29 and '79, the bottom is around March/April. It follows Wall street's thing of "pull your money out in August and go on vacation", and quarterly reporting. I believe that recovery will be much faster than 29 and 79 due to HFT, unless the car loan derivatives crash happens. If that occurs, I'm guessing that the recovery will look similar to '79's recovery including the silver crash (which produced the first psychiatrist billionaire, allowing his son to make The Jinx).

*All guesses.