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A comment on I Bond’s variable rate will rise to 9.62% with the May reset. Parent comment

Re:I Bond’s variable rate will rise to 9.62% with the May reset by Apes on Tuesday April 12, 2022 @05:58PM (#31008736)
In theory, but not in practice. Inflation is up over 8% YoY, but short term TIPS are down over 2% - for a realized loss against inflation of over 10% on what should be a "safe" asset class:

https://www.google.com/finance/quote/VTAPX:MUTF?sa=X&ved=2ah...

The longer they exist, the more it feels TIPS are a sucker's bet.

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Re:I Bond’s variable rate will rise to 9.62% with the May reset by redisman on Tuesday April 12, 2022 @09:11PM (#31010125)
You’re forgetting the dividend. But yes it’s not as good as an I bond

https://ycharts.com/mutual_funds/M:VTAPX/dividend_yield

https://ycharts.com/mutual_funds/M:VIPSX/dividend_yield

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Re:I Bond’s variable rate will rise to 9.62% with the May reset by Spellman on Tuesday April 12, 2022 @06:06PM (#31008824)
It's a very different thing to compare a fund vs holding the actual certificate. Same with the Bond Mutual Funds vs holding a Bond.

The Funds will decline because you have to sell old Bonds at a discount to buy up the new higher interest payout bonds. But if you held on to the original bond, then you'd still get the fixed payout. You'd just miss out on the opportunity of the new higher payout bonds on the market.

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