5 ms·

This. Also, max put your Series I allocation ($10k/yr/SSN iirc, must be purchased from TreasuryDirect) before bothering with TIPs. If you have kids, the inflati

by ericd 5y ago

This. Also, max put your Series I allocation ($10k/yr/SSN iirc, must be purchased from TreasuryDirect) before bothering with TIPs. If you have kids, the inflation adjustments can be used tax free for educational expenses, which would already make them the best inflation adjusted bond, but on top of that, you can cash it in whenever you want for nominal value rather than selling them on the secondary market, which makes them so much better than TIPs in the scenario where interest rates soar and inflation actually gets beat back (fwiw I don’t think this is as likely as currency devaluation).

Asparagirl 5y ago
It’s $10k/yr/EIN, too. So if you perhaps have a family trust or a single-member LLC, disregarded on your taxes as Schedule C, that LLC or Trust can create an “entity account” at TreasuryDirect. It has slightly stricter restrictions than an account for a natural person, but certainly has the ability to purchase and hold and sell Treasuries too, including I Bonds.
piotrkaminski 5y ago
Note that the tax-free educational expenses apply only to higher education and have an AGI cut-off, though. Read the fine print!
- ericd 5y ago
  Ah thanks for the clarification! Have a link to a good explanation of the limitations?
  - piotrkaminski 5y ago
    I just poked around the Treasury site. It's a maze of little corridors all alike, but this one has some relevant info: https://www.treasurydirect.gov/indiv/planning/plan_education.htm https://www.treasurydirect.gov/indiv/planning/plan_education...
    - ericd 5y ago
      Had a bit of a hard time finding the actual AGI limit, but I found it here: https://www.irs.gov/publications/p970 https://www.irs.gov/publications/p970 Unfortunately, not that high: You may be able to cash in qualified U.S. savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. - You pay qualified education expenses for yourself, your spouse, or a dependent. - Your MAGI is less than $98,200 ($154,800 if married filing jointly). - Your filing status isn't married filing separately.

by ericd 5y ago

Asparagirl 5y ago

It’s $10k/yr/EIN, too. So if you perhaps have a family trust or a single-member LLC, disregarded on your taxes as Schedule C, that LLC or Trust can create an “entity account” at TreasuryDirect. It has slightly stricter restrictions than an account for a natural person, but certainly has the ability to purchase and hold and sell Treasuries too, including I Bonds.

piotrkaminski 5y ago

Note that the tax-free educational expenses apply only to higher education and have an AGI cut-off, though. Read the fine print!

ericd 5y ago
Ah thanks for the clarification! Have a link to a good explanation of the limitations?
- piotrkaminski 5y ago
  I just poked around the Treasury site. It's a maze of little corridors all alike, but this one has some relevant info: https://www.treasurydirect.gov/indiv/planning/plan_education.htm https://www.treasurydirect.gov/indiv/planning/plan_education...
  - ericd 5y ago
    Had a bit of a hard time finding the actual AGI limit, but I found it here: https://www.irs.gov/publications/p970 https://www.irs.gov/publications/p970 Unfortunately, not that high: You may be able to cash in qualified U.S. savings bonds without having to include in your income some or all of the interest earned on the bonds if you meet the following conditions. - You pay qualified education expenses for yourself, your spouse, or a dependent. - Your MAGI is less than $98,200 ($154,800 if married filing jointly). - Your filing status isn't married filing separately.