Wed Apr 10 2024, by Tyler Gardner

iBondsInvestment StrategiesTax PlanningFinancial EducationSavings

How to Buy $100,000 in iBonds Legally

Hey Dad, is it true that you bought $100,000 of iBonds even though the annual limit is $10,000?

Absolutely. Here's how.

1. Personal Purchases

I bought $10,000. Your mother bought $10,000.

2. Custodial Accounts

We opened custodial accounts for you and your two sisters. Each of the three of you got $10,000.

3. Tax Refund Conversion

We used Form 8888 to convert our tax refund to paper iBonds. That’s another $10,000.

4. Business and Trust Purchases

I have a business and a living trust. Your mother has a business and a living trust as well. We bought iBonds in the name of each of those four entities. That adds another $40,000.

5. Current Yield

And the return on those is 9.62% through October.

6. Important Considerations

Yep. Redirect.gov. Just have to be willing to hold them for one year. Remember, you lose three months of previous interest if you sell them before five years.

7. Learning Resources

Where did you learn all of this?

Just follow Social Cap. He makes complex finance seem easy.

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