hello everyone and thanks for tuning
into the financial investor channel my
name is Brent today we're going to be
covering series EE and I savings bond
basics how you can get rich with EE and
I bonds now this is a lending type of
investment that we've covered in the
previous videos of series EE and I bonds
now that goes very in-depth while we're
covering the governor the Treasury
website and this is more of a breakdown
if you want to just have a breakdown of
how they are the same and then how the E
and the I bond are unique just come
check out my website it's the very first
post that I just made and it's gonna
have a breakdown so very quick and easy
how are the bonds the same they can both
be used to pay for higher education and
can be part or fully excluded from
paying taxes on both can earn they both
earn a fixed rate of interest from the
purchase date and interest compound
semi-annually both cannot be sold for
the first 12 months if sold after five
years you lose three months of the
interest and they stop earning interest
at thirty years both of them can be
purchased to the penny amount between
$25 and $10,000 with a maximum limit of
$10,000 per calendar year for each
social security number both of them can
be purchased electronically and both of
them are taxed at the federal income tax
level so that is how they are currently
the same how our bonds unique
EEE bonds earn a fixed rate from the
time of purchase let me go ahead and
zoom in there we go
EEE bonds earn a fixed rate from the
time of purchase for 20 years and may
have a one-time adjustment at 20 years
basically they may make an adjustment
based on the inflation rate maybe I've
never actually seen that happen all of
mine I think have stayed the same even
after they hit their 20-year mark ie
bonds are sold electronically and cannot
be purchased in paper format any longer
ie bonds are paid for initially at half
the face value if after 20 years it has
not reached the face value that will
automatically become its face value and
continue earning interest for the next
ten years an example of this as you
purchase a $1000 face value ie bond it
is purchased if purchased right now it
would earn a one-point zero percent
interest rate and it'll reach five
hundred and fifteen dollars and seventy
four cents and 30 years base off 0.1 0
and your initial starting point of five
hundred dollars so so with the EE bond
at twenty years it will automatically
become $1000 face value and will earn an
additional 0.1% for the next ten years
to a final value of one thousand eleven
dollars and six cents
how our iPhones unique iPhones earn a
fixed rate from the time of purchase for
the first or for all 30 years plus it
has an adjusting inflation rate that
adjust semi-annually per calendar year
iPhones currently have a fixed rate of
0% meaning if you buy it right now
it's going to have a fixed rate of 0%
but it still does it just because of
inflation and the current inflation rate
is 1.96 meaning if the inflation rate
drops to 0%
you will not earn any interest that year
and that actually happened to me in 2008
iPhones can return a better investment
between 5 to 19 year period but will not
double at the 20 year mark making the EE
bond usually come out on top after 30
years i bonds average interest can vary
per year my lowest average is 1.4
percent this was bought in May 2004 and
my highest is 3.25 buy in September of
2006 so the ions can really average you
can see this is almost double
it is it is actually over double what
the my lowest average is compared to my
highest average and of course on here
it's gonna have all three of the videos
that are part of this series how are a
bonds amazing I talked about that and
then I cover how are you know the I
bonds and the breakdown and how I have a
couple of them and then my final video
I'll actually be doing a comparison in
depth between EE and I bonds with a very
detailed graph and my personal ie and I
bond experience and some of them are
about the 20 year mark so I hope you
guys enjoyed the video I took some time
to kind of create this article and I
believe that bonds are you know they are
a safe investment and they can sometimes
be better investments during times of
recession just because they are
guaranteed to double after 20 years and
yes we will go ahead and talk more on
that in the last video that's going to
be coming out here mom I do get into why
I prefer II over I bonds for the long
term so that is it for this video
just a quick 5-minute video I hope you
guys have enjoyed it if you guys want
anything new go ahead and leave that in
the comments below remember to like the
video and subscribe to my channel for
future financial videos I hope you have
a great day and I will see you next time
bye
