How To SAFELY Invest $10,000 | iBonds Step By Step
Published: 2022-10-21
Status:
Available
|
Analyzed
Published: 2022-10-21
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
I Bonds are currently offering a 9.62% interest rate.
"I series savings bonds which right now are paying a mind-blowing mind melting super juicy 9.62 interest"
Pending
The 9.62% interest rate on I Bonds is only available for purchases made before October 28th. After this date, the rate is expected to decrease.
"if you want to get this return which remember is guaranteed by the United States government you will have to do this before October 28th because after 28th the interest rate on these bonds will most likely go down a little bit"
Pending
The speaker considers I Bonds to be the best investment for $10,000 if the money is not needed for at least one year.
"if all I had was just ten thousand dollars that I had to invest right now that I knew I did not need access to this money for at least one year I cannot think of a single better investment that I would make right now"
Pending
The variable interest rate on I Bonds is tied to the Consumer Price Index (CPI), which measures inflation.
"the rate we care about is the variable interest rate because that's the rate that's attached to What's called the CPI the Consumer Price Index which is how economists measure the rate of inflation"
Pending
Due to high inflation (above 8%), the variable interest rate on I Bonds is increasing.
"inflation was skyrocketing and remember inflation as it's measured by the CPI the Central Bank wants that number closer to two percent is actually above eight percent which is why the variable interest rate on these I bonds is also going higher"
Pending
I Bonds guarantee the return of principal plus interest after a one-year holding period, meaning no loss of money if held for at least a year.
"if you can keep your eye bond for at least one year after it's been created you are guaranteed to make all of your money back plus interest that means you could never lose money investing in these I bonds unless you try to sell them before that one year period"
Pending
Even if inflation becomes negative, the interest rate on I Bonds will not go below zero.
"if inflation ever goes negative the variable interest rate on your bond will never be negative the worst it'll do is it'll go to zero"
Pending
Taxes on the interest earned from I Bonds can be deferred until the bond is sold or redeemed.
"you can defer the taxes on the interest that you've earned so for example if you've held an i bond for a year and you made a hundred dollars on it you don't have to pay taxes on it until you sell or redeem that bond"
Pending
Interest earned on I Bonds may be tax-free if used for qualified education expenses.
"you may not have to pay anytime on that interest if you use that money to pay for college"
Pending
The maximum amount that can be invested in I Bonds per person per year is $10,000, with a minimum investment of $25.
"for me personally I put in the maximum allowed limit of ten thousand dollars you do not have to put in that much money you can put in as little as 25 or whatever you're comfortable with"
Pending
To ensure the higher interest rate, purchases of I Bonds should be completed before October 27th due to settlement times, to avoid getting the next month's potentially lower rate.
"please remember to do all of this but before October 27th because it takes some time for the funds and the account to settle and the last thing you want to do is buy in October only to realize that you got November's newer lower rates"
Pending
The interest rate on I Bonds is estimated to drop from 9.6% to approximately 6.48%-6.5% after the initial period.
"the lower rate is estimated to go down from 9.6 percent that it's at right now to about 6.48 6.5 percent"
Pending
If I Bonds are sold before the five-year mark, investors will receive their principal back plus at least nine months of accrued interest.
"even if you do sell before five years you will get all of your money back plus at least nine months of super juicy interest"
Pending
I Bonds cannot be held in joint accounts with a spouse or within tax-deferred accounts like IRAs.
"you cannot create an account with your spouse you can't have a joint account and you can't keep your assets inside of a tax deferred account like an IRA"
Pending
I Bonds are presented as a guaranteed method to earn a needed return on investment, especially in the current economic climate.
"I think it's a guaranteed way to make a return on your money that is really needed especially in times like this"
Pending