New I-Bond Rate is 2.58%

The Current I Bond Composite Earnings Rate is 2.58% and the Top Rate for older i Bonds is 6.12%!  For a complete listing of rates, See Rates for Older Series I Bonds.

Yesterday the Bureau of the Public Debt announced earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from November 1, 2017 through April 30, 2018.

Series I bond, or iBond, fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I-bonds issued in the six months following the rate determination.
===================

===================

For more about how I Bond Rates are calculated and the new rates for older iBonds, see:

• ==> Current Series I Bond Rates
• ==> Composite Rates for Older Series I Bonds
  

Disclosure: I own Series I Bonds in my personal account ()  I also currently have them in my Newsletter Explore Portfolio.  Some of the old iBonds in my personal account have base rates of 3.0%! Subscribe now and see if I recommend these new I-Bonds for purchase or something better for the fixed income part of your investment portfolio.

Source: Fiscal Service Announces New Savings Bonds Rates, Series I to Earn 2.58%, Series EE to Earn 0.10%

Bob Brinker's Market Outlook and Advice for New Money

Bob Brinker Market Update for August 2017.  In this issue I discuss:

1. Bob Brinker's August 2017 Market Outlook.
2. Marketimer Allocations
3. Advice for new money.
4. Series I-Bonds
5. Timer Digest Update
6. Link to Listen Live on internet radio
7. Newsletter Special Offer - August Issue for Free!

#1 Bob Brinker's August 2017 Market Outlook.  In his August 2017 Marketimer newsletter, Brinker remains bullish on the US stock market.  In the first two pages, he covers his "primary" causes for a bear market.  I guess he changed the name from "five root causes of a bear market" after they completely missed the last bear market where the S&P 500 fell over 50% while Brinker issued "buy alerts" all the way down to the 800s then stopped before the actual bottom in the 600s. Why would he change the name?  Easy, "Google Search."  As such, I take his timing with a grain of salt.  With that said, Brinker:

• says you can get a PE of 17 to 18 times earnings 
• projects the S&P 500 earnings will be $140 in 2018
• thus the market has a "potential" for mid-2500s "going forward."
  [18 x $140 = $2,520]
• At the time of publication, the S&P500 was $2470.30 so $2534 (the lower end of mid $2500s or $2534 to $2567) is only a gain of 2.6%.  Thus, he's not going out on a very big limb with that projection.

#2 Bob Brinker's Marketimer Allocations:   

• Model Portfolio's one and two are 100% in stock funds 
• Model Portfolio three is listed as 50% in stocks but I calculate he has 56% in stocks which means he's more bullish than "balanced."

#3 Bob Brinker's Advice for New Money:   

• Bob continues to recommend a "dollar-cost-average approach, especially during periods of market weakness" but gives no guidance on what he considers weakness or why not just do a typical dollar-cost-average no matter what the market does.  This waiting for "weakness" has kept a good number of individual investors on the sidelines missing this great opportunity to make a lot of money!

#4 Series I-Bonds

• Bob didn't mention Series-I US Savings bonds in the latest Marketimer but he has talked about them in the past on his radio show, Moneytalk. 
• I have iBonds in my "Explore Portfolio" of "Kirk Lindstrom's Investment Letter."  I think iBonds are a good, conservative investment that will keep pace with inflation and defer taxes thus they are great for taxable savings when you are in a high bracket.
• Read more at:  Current Series I Bond Rates  and  Historical Series I Bond Rates

#5 Timer Digest Update

• Here is an update from the August 9, 2017 Timer Digest Hotline.  (Bob Brinker isn't mentioned but I am in the top 10.)

• Last week I added to GE (charts) at $25 and change.  I last took profits in GE last year at $32.50.  It may go lower, but I like the juicy yield here and I have more buy targets in my newsletter to get more shares as I "dollar cost average" back into stocks after I take profits at higher levels.  Send for a free sample issue if you wish to learn more how I do this.
  
• Here is an update from the August 7, 2017 Timer Digest Newsletter.  Bob Brinker isn't mentioned but I am in the top 10 for 1-year and I am tied for first place in "Long-Term" timing.

• Get a Free Issue of Timer Digest here

#6 Click to Listen Live at KFNN from 1-4PM PST, 4-7PM EST

#7 Newsletter Special Offer 

• Subscribe NOW and get my August 2017 Issue for Free!
• Your 1 year, 12 issue subscription will start with next month's issue.
• Get email alerts when I buy or sell securities for my explore portfolio. My "Auto Buy" and "Auto Sell" levels are set ahead of time for target buy and sell levels for my securities.  This allows you to place "limit orders" with your broker in advance so you can go about your business.
• Unlike "others," I will answer All questions about what I write by Email.  If what I write is not clear to you, just ask! 

New and Historical Series I Bond Rates

Bob Brinker used to talk about Series I Bonds on the radio but he never added them to his model portfolios or list of recommended individual issues that he used to recommend things such as Gold via GLD before the price of gold collapsed.  It is too bad as I hold some I bonds from 2001 with 3.0% base rates. That means if inflation is 1.5%, those iBonds pay about 4.5%!

The Bureau of the Public Debt on May 1, 2015 announced earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from May 1, 2015 through October 31, 2015.

I bond fixed rates are determined each May 1 and November 1. Each fixed rate applies to all I-bonds issued in the six months following the rate determination.

The Current I Bond Composite Earnings Rate is 0.00%. That is ZERO, squat, nada, nothing!   Obviously, these CDs are much better:

===========================
For more about how I Bond Rates are calculated, see 

• ==> Current Series I Bond Rates
• ==> Composite Rates for Older Series I Bonds
  

Disclaimer: I own Series I Bonds in my personal account (some have base rates of 3.0%!  I also currently have them in my Newsletter Explore Portfolio.

For my advice on what to do with your older I bonds as well as new money, read my newsletter!

• Subscribe to Kirk Lindstrom's Investment Letter NOW and get the April 2015 Issue for Free!

New Series I Bond & EE Bonds Interest Rates

On November 1, 2013, the Bureau of the Public Debt today announced earnings rates for Series I Savings Bonds and Series EE Savings Bonds, issued from November 1, 2013 through April 30, 2014.

Series i-Bonds: New Series I Bond Rate: 

• Now yielding a 100% safe 1.38% with a 0.20% base rate

• This means you get inflation plus 0.20% for the next 30 years. For more, see Series I Bonds Explained 

• I think Series I-Bonds are very attractive for cash in taxable accounts.  You can buy up to $10,000 per Social Security number.  

• This is the first time the base rate has been above zero since October 2010.

• See Series I Bond Rate History

• Note:  I own a lot of Series I Bonds, some with base rates as high as 3.00%! 

• See Earning Rates for Older I-Bonds

EE Savings Bonds:  Current EE Savings Bond rates

• Now they yield only 0.1% 
• You can do much better in an FDIC insured savings account paying about 1%. 

• See Best Savings Account Rates

• Historical EE Bond Rates

Best CD and Savings Rates:   Best CD Rate Survey

Bob Brinker recommends CDs on his show for those who don't want to take any interest rate risk with GNMAs or any other bonds.  That is bonds will lose net asset value if interest rates go up. 

• I'd keep the term to 2 years or less.  Perhaps make a CD ladder with

Social Security COLA for 2014

"Kirk Lindstrom's Investment Letter"

Don't Miss Out!
Subscribe Now

Gold, I-Bonds, CDs & Savings Account Rates

Gold (chart and Quote) is going crazy! 

• Gold made an all time new high today of $1,818.90 per ounce!
• If you want to buy gold for your portfolio as an investment or to trade , my recommendation has been to buy the exchange traded fund, GLD (chart and quote).  This is the same advice Bob Brinker gives.  Most other methods to buy gold involve high expenses.
• Note: I own gold and silver coins and misc jewelery but currently don't hold GLD. 

Buy i-Bonds: New Series I Bond Rate:

• Now yielding a 100% safe 4.60%, I think Series I-Bonds are very attractive for cash in taxable accounts.  You can buy up to $10,000 per Social Security number.  $5,000 from TreasuryDirect.gov and $5,000 in paper form at your local bank.  This is the last year paper iBonds will be sold so get them while you can.
• The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.  Series I Bonds Explained and 
• Note:  I own a lot of Series I Bonds, some with base rates as high as 3.00%!
  See Earning Rates for Older I-Bonds

Best CD and Savings Rates:   Best CD Rate Survey

Bob Brinker recommends CDs on his show for those who don't want to take any interest rate risk with GNMAs or any other bonds.  That is bonds will lose net asset value if interest rates go up. 

• I'd keep the term to 2 years or less.  Perhaps make a CD ladder with
• a 6-month, 1.05% CD at Nexity Bank
  
• a 1-yr, 1.40% CD at Nexity Bank and
  
• an 18-month, 1.32% CD at Aurora Bank  and
  
• a 2 year 1.45% CD at Aurora Bank

Kirk Lindstrom's Investment Letter

• Subscribe to my service NOW and get the August 2011 Issue for FREE! !  
  
• Get email alerts when I buy or sell securities for my explore portfolio
• "Auto Buy" and "Auto Sell" levels set ahead of time for target buy and sell levels for my securities.  This allows you to place "limit orders" with your broker in advance so you can go about your business.  I send email alerts after these execute as reminders.
  
• All questions about what I write answered by Email.  If what I write is not clear to you, just ask!
  

Your 1 year, 12 issue subscription will start with next month's issue.

Long Term Results that Speak for Themselves

Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 200%
vs. the S&P500 UP only 21% vs. NASDAQ UP only 17% (All through 8/15/11) 
(More Info & Portfolio Returns)

"Highest CD RatesSurvey" 
as of August 15, 2010

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.02%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.05%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	1.15%	Best Savings Account Rate Survey
6 Month CD	1.05%	AloStar Bank merging into Nexity Bank
6 Mo US Treasury	0.07%	US Treasury Rate Quote
1 Year CD	1.40%	AloStar Bank merging into Nexity Bank
1 Yr US Treasury	0.10%	US Treasury Rate Quote
18 - Month CD	1.32%	Aurora Bank
2 Year CD	1.45%	Aurora Bank
3 Year CD	1.98%	Security Service CU
4 Year CD	2.07%	Melrose CU & 2.06% @ TAB Bank
5 Year CD	2.57%	Security Service CU
5 Yr US Treasury	0.95%	US Treasury Rate Quote
7 Year CD	3.30%	Security Service CU &  2.75% PenFed CU
10 Year CD	3.00%	Discover Bank
10 Yr US Treasury	2.25%	US Treasury Rate Quote
30 Yr US Treasury	3.73%	US Treasury Rate Quote

 

Inflation Protected Series I Bonds Now Pay 3.36%

The Bureau of the Public Debt today announced an earnings rate of 3.36% for Series I Savings Bonds issued from October 2, 2009 through April 30, 2010.

The 3.36% earnings rate for I bonds bought from November 2, 2009 through April 30, 2010 will apply for their first six months after issue. The earnings rate combines a 0.30% fixed rate of return with the 3.06% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).

Bob Brinker says on the radio we are seeing deflation but that is due to a bubble in inflation a year ago due to higher oil prices. Those good at math can easily see the bubble in the CPI-U data corresponding to oil prices near $150. If the CPI stays where it was for the last (Sept.'09) reading then we will see significant ANNUAL inflation in November and December. For example:

Dec. 2008 CPI-U = 210.228
Sept. 2009 CPI-U = 215.969
Change = 5.741 / 210.228 x 100%
or 2.73% annual inflation!
CPI-U Table

The fixed rate for Series-I Bonds applies for the 30-year life of I bonds purchased during this six-month period.

Minimum purchase:

• $50 for a $50 I Bond when purchasing paper bond certificates
• $25 for a $25 I bond when purchased electronically via TreasuryDirect

Maximum purchase(per calendar year):

• $5,000 in TreasuryDirect and $5,000 in paper bonds
• $10,000 total per social security number
  

Denominations:

• Paper bonds: $50, $75, $100, $200, $500, $1,000, and $5,000
• Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more

For more information, see:

• I Bonds Explained
  
  
• Current iBond Rates
  
  
• iBond Rate History
  
  
• CPI-U Table
  
  
• IBOND Press Release

For older ibonds and what they will pay, see:

I Bond Composite Rates (iBonds)

Disclaimer: I own Series I Bonds in my personal account. Due to the small amount of i-bonds you can buy now, I own far more TIPS and TIPS funds in my personal and newsletter (FREE SAMPLE) portfolios.

Questions and Comments: "Anonymous" posters should sign your name if you want questions answered. Please use your first name and city at the end of the question such as "Pete from Pittsburgh" or Mark from Maui." Even better, register with Google and get an account with your picture in it then follow this group! Your picture will then show on the "Followers" list on the right hand side of this blog.

Post and Read Comments

New I-Bond Rates; New iBond Composite Rates

The Bureau of the Public Debt today announced an earnings rate of 0.00% for Series I Savings Bonds issued from May through October 2009. Earnings rates (also know as the composite rates) for I bonds are set each May 1 and November 1. Interest accrues monthly and compounds semiannually. Bonds held less than five years are subject to a three-month interest penalty. I Bonds have an interest-bearing life of 30 years.

I Bond Earnings Rate 0.00%, Fixed Rate 0.10%

For more information, see:

• I Bonds Explained
  
  
• Current iBond Rates
  
  
• iBond Rate History

The earnings rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the life of the bond, and the semiannual inflation rate.

The 0.00% earnings rate for I bonds bought from May through October 2009 will apply for their first six months after issue. The earnings rate combines a 0.10% fixed rate of return with the -5.56% annualized rate of inflation as measured by the Consumer Price Index for all Urban Consumers (CPI-U). When the inflation rate is less than zero, a bond's earnings rate is less than its fixed rate (but the earnings rate is never less than zero).

The fixed rate applies for the 30-year life of I bonds purchased during this six-month period.

The CPI-U decreased from 218.783 to 212.709 from September 2008 through March 2009, a six-month change of -2.78%.

For older ibonds and what they will pay, see:

I Bond Composite Rates (iBonds)

I-Bond Rates To Soar on High Inflation Data

Bob Brinker should have fun explaining how this high inflation data is good news for iBonds this weekend. The US Bureau of Labor Statistics released its March 2008 Consumer Price Index data today. PRESS RELEASE.

Currently newly purchased I Bonds pay 4.28% for 6 months after purchase with a base rate of 1.20%. This rate is good through May 2008 when they will calculate a new inflation adjustment for the next six month period which we estimate will be over 6% after the latest inflation adjustment!

March CPI up 0.9%; Yearly Inflation Rate Over 4%

If you own iBonds (Inflation protected bonds) that both Bob Brinker and I have recommended in the past, then the number you care about is the "Consumer Price Index for All Urban Consumers (CPI-U) without seasonal adjustments (SA)":

• CPI-U increased 0.9 percent in March, before seasonal adjustments. The March level of 213.528 (1982-84=100) was 4.0 percent higher than in March 2007.

Runner26 posted the current estimate for Ibonds in our I Bonds or iBonds forum on facebook's "Investing for the long term" this morning.

The March jump in CPI was large. [Kirk's Comment: I-bonds use the Not Seasonally Adjusted (NSA) data, so while the headline CPI number with "seasoinal adjustments" was only 0.3%, the NSA was a whopping 0.9% increase for the month. This number matches what many feel in their pocketbooks too.]
.
My estimate for the new rates for existing bonds will be the following when their 6-month reset period arrives.
.
Base----Rate
1.0%----5.86%
1.1%----5.97%
1.2%----6.07%
1.3%----6.17%
1.4%----6.27%
1.6%----6.48%
2.0%----6.89%
3.0%----7.91%
3.3%----8.22%
3.4%----8.32%
3.6%----8.53%
.
Current I-Bonds are at a 1.2% base rate, which means if you buy them before the end of this month, you will get 4.28% for 6 months, followed by 6.07% at their next reset in 6 months. You may find this attractive.
.
If they leave the base rate at 1.2%, new May issue bonds would carry a 6.07% rate. My guess would, given the low current base rates being paid for TIPS, the base rate for new May issue I-bonds will be LOWER, and it likely better to purchase before the end of this month. Be aware however, that I have been surprised before by the actions of the Treasury.

For CA residents in the 9.3% state tax bracket, the equivalent taxable rates for the two periods are 4.719%/6.692%.

So, high inflation before seasonal adjustments is not bad news for holders of I bonds and TIPS but inflation is bad news for consumers not making six figure plus incomes who spend most of what they make.

Vanguard's TIPS index fund (VIPSX) was up 11.59% in 2007 and is up 4.74% YTD in anticipation of these high inflation readings. With inflation expected to moderate, I don't expect to see this level of performance continue.

Disclaimer: I have a fairly large position in TIPS in both my personal account and some of the newsletter porfolios in "The Retirement Advisor" investment letter. I also recommend TIPS as part of a 3-item alternative to the easy to track "Total Bond Fund" in "Kirk Lindstrom's Investment Newsletter" where I may again recommend iBonds with these attractive rates.
.