5 ms·

Well, if you and your spouse had put in 10k at the end of 2021, and again in 2022, and then put another 10k at the start of 2023 you will have built up your I-B

Well, if you and your spouse had put in 10k at the end of 2021, and again in 2022, and then put another 10k at the start of 2023 you will have built up your I-Bond allocation to $60k in about a 13-14 month timeframe. What is nice about a position of that size is that that amount is in the ballpark of a typical families expenditures in a year (ignoring the occasional big ticket items like a car), which means you have essentially hedged away your exposure to inflation. So yeah, $10k is not a lot, but that is an annual limit, not a lifetime limit. And a good way to hedge inflation is to build an I-Bond allocation that is equivalent to your annual expenses which for most households should only take a few years to get to. And an added bonus is that selling your I-Bonds early has fairly minimal penalties and can be sold at face value (i.e. not subject to market swings) so your I-Bond allocation can double as an emergency fund.

bombcar 4y ago
Yeah, they can be wonderful; but not everyone will want to bother with them (I find one of the easiest is to just get your tax return in physical bonds if you want to dabble).
- giantg2 4y ago
  How do you get a physical bond? I thought they went all virtual these days.
  - bombcar 4y ago
    https://www.irs.gov/refunds/using-your-income-tax-refund-to-save-by-buying-us-savings-bonds https://www.irs.gov/refunds/using-your-income-tax-refund-to-... You can still get them if you get them as part of your tax return. Overpay estimated tax or increase your withholding. 10. Will I get actual paper bond certificates? Yes. Savings bonds purchased with a tax refund will be issued as paper bond certificates in your name. If you are married and filed a joint return, the savings bonds will be issued in your name and your spouse's name. If you purchase savings bonds for someone else, the bonds will be issued in the name(s) that you listed on Form 8888.
    - giantg2 4y ago
      Looks like you have to paper file to get them, right?
      - bombcar 4y ago
        I think it works with e-file, at least TurboTax has asked about it (I’ve never actually done it).
    - hnkiran 4y ago
      Would we be able to request after the refund has processed and deposited into bank account?

bombcar 4y ago

Yeah, they can be wonderful; but not everyone will want to bother with them (I find one of the easiest is to just get your tax return in physical bonds if you want to dabble).

giantg2 4y ago
How do you get a physical bond? I thought they went all virtual these days.
- bombcar 4y ago
  https://www.irs.gov/refunds/using-your-income-tax-refund-to-save-by-buying-us-savings-bonds https://www.irs.gov/refunds/using-your-income-tax-refund-to-... You can still get them if you get them as part of your tax return. Overpay estimated tax or increase your withholding. 10. Will I get actual paper bond certificates? Yes. Savings bonds purchased with a tax refund will be issued as paper bond certificates in your name. If you are married and filed a joint return, the savings bonds will be issued in your name and your spouse's name. If you purchase savings bonds for someone else, the bonds will be issued in the name(s) that you listed on Form 8888.
  - giantg2 4y ago
    Looks like you have to paper file to get them, right?
    - bombcar 4y ago
      I think it works with e-file, at least TurboTax has asked about it (I’ve never actually done it).
  - hnkiran 4y ago
    Would we be able to request after the refund has processed and deposited into bank account?