Advertising Disclosure
  1. Home
  2. Community
  3. Miscellaneous
  4. I Purchased 10 $1,000 I Bonds Today.

I Purchased 10 $1,000 I Bonds Today.

Ally6770
  |     |   4,310 posts since 2010

5 each for two different people as beneficiaries. Was surprised that it seemed that I had to do each separately. Would have been more convenient if a person could have made 2 submissions.

As the site is so user friendly after you use it the first time this surprised me or maybe I made it harder than it should have been and there was a way I could have done it that way. .

  Post a comment
4


GreenDream
  |     |   358 posts since 2019
Why did you purchase 5 @ 1k for each beneficiary? wouldn't it have been easier to purchase 1 @ 5k bond for each beneficiary?
Reply
1
Ally6770
  |     |   4,310 posts since 2010
Green Dream,
I have been purchasing the $5,000 bonds and someone, I think on this blog, suggested as long as they are for my kids as beneficiaries who are near retirement, I might not get all the taxes paid on them before I die cuz I am converting everything to a Roth first and they are in a much higher bracket and near retirement. Doing this they will have a choice of how many at a time they want to cash if IRMAA is a problem for them. They also will have a lot in Roth's that I will be leaving them so they could use those also as they as of now do not count for IRMAA. I disclaimed my husband traditional IRA's so they have those to pay taxes on with their RMD's each year but at least those will spread throughout their life time. I didn't want to add to their burden if it was close to make their Medicare premium higher. I gift them every Jan so I cannot put the I bonds  in their names. 
Reply
2
GreenDream
  |     |   358 posts since 2019
Unless you have paper bonds, they can redeem any part of the electronic ibond at any time they want (after 5 years since purchase) without penalty. so redeeming a 1k bond or the same amount from a 5k bond is functionally the same.
Reply
4
Ally6770
  |     |   4,310 posts since 2010
I was not aware of that. Thank you for your help. I will put a note in each child's notebook by the list of their I bonds. I purchased them one day and the money was taken out the next day. Love that it is always so fast. Purchasing them near the end of the month maximizing the interest. Always keep your money working.
In the late 60's or early 70's we were able to transfer our bonds and some inherited E bonds to our oldest child's name. Not sure if you can do that now without a tax consequence. I used to have 1 $25 bond take out of my paycheck every week in the 50's when in school. Not sure but I think they paid 4% and when the savings and loan savings accounts started paying more in their savings I went there. Later when Industrial State bank had an 8% CD I bought that. They were sold to Comerica. My godmother's son was manager of the branch near our home.
When in first grade after our Saturday morning upstairs house work was done we walked 1 mile even in the winter to put 25¢ a week in our Christmas club. Came home and we did our homework while listening to the top 10 on the radio from 11 to 12pm and kept a list to mail to our brother who was stationed in Germany. Life was simple back then. No car and my mom would borrow my uncle's car to get groceries on Friday. I remember riding in the car to the window of the paper mill every Friday morning in the summer where my dad worked and he would hand over his check. We would go to the bank she had envelopes at home where she would put some in each of them then going to the A&P, Kroger and National Food Store to get what was on sale. I loved the smell of the coffee when she ground it. And coming home with that bag of what looked like lard with the dot in the middle and squeezing it until it was all yellow and that was our butter. Our Friday treat for lunch in the summer was Vienna bread with poppy seeds toasted with that butter with red raspberry preserves. My kids loved it also with their breakfast with eggs. Now you can't find poppy seeds, I guess people can test positive with drugs. Sesame seeds are not quite the same.
Reply
4
Ltssharon
  |     |   472 posts since 2020
Well I once has to purchase four 1000 buck cds in order to open one 5 year jumbo cds. Then I decided to take the early withdrawal penalty on the jumbo and purchase another jumbo 5 year at the same institution at a higher rate so again I had to open 4 cds of 1000 bucks each. So now when tax time came my H&R Block tax preparer charged me tons of money , saying they charged for each entry. The financial institution had sent ten 1099 forms. The 1000 buck cds had each earned about eleven bucks in interest.
Reply
2
Ally6770
  |     |   4,310 posts since 2010
Ltssharon, I have 11 CD's and do a Roth conversion every year with a basis, interest on 3 savings, and a checking and from my life insurance, dividends from the stock that was given to me at work, and a small inherited IRA also from my mom. . So the time it saves me and the little extra money it costs over Turbo Tax that has had such a bad reputation for the last 2 years I will pay that extra. I hate that working with that basis. If it wasn't for the basis I would do the taxes myself. As soon as IRA's are all converted I will go back to doing my own taxes. Mine are not complicated.
Reply
2
ocsteve
  |     |   96 posts since 2010
Might be better to go to an Enrolled Agent to do your taxes. Some local small accounting firms do taxes and have extra staff on during busy season. Using an EA is always better for someone that does not have the accounting/finance knowledge, than using Turbo Tax blindly. I am a retired CPA and do useTurbo Tax for me and my family, but do sometimes ask for an EA to assist with one time odd situations (for a small fee). Could not recommend HR Block due to too many mistakes I hear others have had with them.
Reply
2
Ally6770
  |     |   4,310 posts since 2010
My income because I have a lot of interest and do Roth conversions is close to the lowest IRMAA limits and is to high for an Enrolled Agent. I will keep that in mind if my income goes down enough. Thank you for your suggestion.
Reply
2


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.