Rush on I bonds paying 9.62% is crashing TreasuryDirect website(washingtonpost.com)
washingtonpost.com
Rush on I bonds paying 9.62% is crashing TreasuryDirect website
https://www.washingtonpost.com/business/2022/10/26/treasurydirect-website-crash-i-savings-bonds/
8 comments
IBonds are a no brainer. A great rate, no risk and few constraints. I've got them for myself, my wife, my kids and my LLC
Main constraint being $10k a year per person.
I’m actually really curious about this. I’m a bond-market ignoramus.
Is it capped because it’s a government subsidy to people who know that it’s a good deal? If so, wtf with the regressive tax?
Or is it capped because of some bond-math/bond-market reason that a novice would miss?
Is it capped because it’s a government subsidy to people who know that it’s a good deal? If so, wtf with the regressive tax?
Or is it capped because of some bond-math/bond-market reason that a novice would miss?
Effectively, yes. It's a subsidy to individuals of moderate means, particularly those who have spent decades maxing out their holdings.
If you think that's regressive and absurd, wait until you hear about the mortgage interest deduction, 1031 exchanges, depletion allowances, accelerated depreciation, ....
If you think that's regressive and absurd, wait until you hear about the mortgage interest deduction, 1031 exchanges, depletion allowances, accelerated depreciation, ....
...and capital gains taxes, the carried interest loophole, the unlimited step up basis rule, private yacht tax deductions, and Texas...
If inflation goes to 20% it won't be a great rate.
I Bond rates are recalculated every 6 months. If inflation goes to 20%, the rate will be great. If inflation goes back down to 2%, not so much
Interesting.