1 00:00:33,010 --> 00:00:39,370 Suze: August 21st 2022. It's a great Sunday morning, if you 2 00:00:39,370 --> 00:00:44,350 Suze: ask me, KT is already out in the dark, tending 3 00:00:44,350 --> 00:00:49,510 Suze: to her garden Colo is already up and about because 4 00:00:49,520 --> 00:00:53,550 Suze: number one we caught, believe it or not, Colo caught 5 00:00:53,560 --> 00:00:57,750 Suze: a wahoo on a slow pitch jig which is like 6 00:00:57,760 --> 00:01:00,970 Suze: a pole that's like half an inch thick. 7 00:01:01,680 --> 00:01:06,319 Suze: It's August, it's not even wahoo season. And somehow he 8 00:01:06,319 --> 00:01:11,070 Suze: caught a 32 pound wahoo on his jig plus he caught 9 00:01:11,080 --> 00:01:15,200 Suze: a tuna. So he's already down there now for laying them. 10 00:01:15,209 --> 00:01:19,510 Suze: So everybody is very happy and it's a beautiful Sunday 11 00:01:19,510 --> 00:01:20,180 Suze: morning 12 00:01:20,880 --> 00:01:23,470 Suze: and you know I have a saying one should always 13 00:01:23,470 --> 00:01:26,740 Suze: see the sunrise and the sunset. So it's one of 14 00:01:26,740 --> 00:01:29,800 Suze: our greatest pleasures to get up at four or five 15 00:01:29,810 --> 00:01:33,220 Suze: in the morning when it's really, really quiet and there 16 00:01:33,220 --> 00:01:36,690 Suze: are no workers, there's nobody around and just to bring 17 00:01:36,690 --> 00:01:40,080 Suze: in the morning fabulous thing to do. 18 00:01:40,930 --> 00:01:45,500 Suze: Also, I just have to say Lori Brown, one of 19 00:01:45,500 --> 00:01:51,350 Suze: my oldest friends in the world, it was her birthday yesterday. 20 00:01:51,360 --> 00:01:55,370 Suze: She was 71. Happy birthday. My dear Lori. You know 21 00:01:55,370 --> 00:01:57,460 Suze: Lori and I have been friends now 22 00:01:57,630 --> 00:02:02,610 Suze: for over 60 years. It's really something maybe even over 23 00:02:02,610 --> 00:02:07,790 Suze: 65 years and it's just so incredible to have friends 24 00:02:07,800 --> 00:02:13,180 Suze: like Lori and like Roxanne and Leslie who go all 25 00:02:13,180 --> 00:02:16,279 Suze: the way back with you until you were like you 26 00:02:16,280 --> 00:02:19,760 Suze: know 11, 10, 8 years of age and none of 27 00:02:19,760 --> 00:02:23,940 Suze: them would believe that I became who I became but 28 00:02:23,950 --> 00:02:25,370 Suze: they were wrong I did 29 00:02:25,660 --> 00:02:28,840 Suze: but how fabulous it is. Lori for you to still 30 00:02:28,840 --> 00:02:33,650 Suze: have another birthday because with every birthday it's another year 31 00:02:33,650 --> 00:02:35,970 Suze: that we get to love each other up. 32 00:02:36,990 --> 00:02:40,360 Suze: I also told you that today I was going to 33 00:02:40,360 --> 00:02:44,340 Suze: be making an announcement about something every single one of 34 00:02:44,340 --> 00:02:48,429 Suze: you is going to want to do with Alliant Credit Union. 35 00:02:48,440 --> 00:02:51,530 Suze: And I told the team at Alliant, I said guess what, my 36 00:02:51,530 --> 00:02:55,359 Suze: Sunday podcast, I'm gonna tell everybody. And they said no, no, no, 37 00:02:55,370 --> 00:02:59,260 Suze: you can't. So what you mean I can't, they said Suze, 38 00:02:59,270 --> 00:03:04,590 Suze: it doesn't officially start until August 22nd. 39 00:03:05,010 --> 00:03:09,630 Suze: Your podcast is on the 21st. You can't tell them 40 00:03:09,630 --> 00:03:15,760 Suze: yet and I'm like, oh so tomorrow I will be 41 00:03:15,760 --> 00:03:20,360 Suze: doing another podcast, August 22. I will be telling you 42 00:03:20,370 --> 00:03:24,660 Suze: all about it. And it is a podcast that every 43 00:03:24,660 --> 00:03:28,540 Suze: single one of you should absolutely listen to and get 44 00:03:28,550 --> 00:03:33,180 Suze: every friend that you have post it everywhere because it 45 00:03:33,180 --> 00:03:34,649 Suze: really is 46 00:03:35,000 --> 00:03:39,770 Suze: a transformational idea that you're going to hear about tomorrow. 47 00:03:39,780 --> 00:03:43,560 Suze: Also for those of you who also have the ultimate opportunity, 48 00:03:43,560 --> 00:03:47,240 Suze: savings account. And you've been writing me saying Suze, I 49 00:03:47,240 --> 00:03:50,930 Suze: got my $100. Can I get another $100? Well if 50 00:03:50,930 --> 00:03:55,010 Suze: you listen tomorrow, you'll find out, not only can you 51 00:03:55,010 --> 00:03:58,870 Suze: get another $100 but how through you, you can give 52 00:03:58,870 --> 00:04:00,340 Suze: another $100 53 00:04:01,040 --> 00:04:03,430 Suze: and you'll find out more tomorrow. 54 00:04:04,040 --> 00:04:07,720 Suze: Now are we ready to go to Suze School on 55 00:04:07,720 --> 00:04:10,550 Suze: what I think is one of the more complicated topics 56 00:04:10,560 --> 00:04:14,980 Suze: I've ever tackled even though it really shouldn't be. And 57 00:04:14,980 --> 00:04:20,990 Suze: that topic is how does Treasury Direct, credit the interest 58 00:04:20,990 --> 00:04:24,850 Suze: rates to you on your I bonds? 59 00:04:25,150 --> 00:04:28,750 Suze: And the reason that I'm doing this is because all 60 00:04:28,750 --> 00:04:32,810 Suze: of you have bought I bonds now at least six 61 00:04:32,810 --> 00:04:35,860 Suze: months ago, a year ago, a year and a half 62 00:04:35,860 --> 00:04:39,260 Suze: ago and you're all seeming to write me all at once. 63 00:04:39,260 --> 00:04:41,779 Suze: I don't know why this is, there's like a topic 64 00:04:41,779 --> 00:04:44,349 Suze: that kind of catches fire. And even though you don't 65 00:04:44,350 --> 00:04:47,050 Suze: know what you're writing me on ask Suze podcast at 66 00:04:47,050 --> 00:04:49,900 Suze: gmail dot com, it all seems like you've gotten together 67 00:04:49,900 --> 00:04:52,479 Suze: and maybe you're all friends in writing the same question. 68 00:04:52,490 --> 00:04:53,650 Suze: And it's Suzy, 69 00:04:54,130 --> 00:04:59,200 Suze: I look at my online statements for my I bonds 70 00:04:59,210 --> 00:05:02,250 Suze: and I don't have anywhere near as much interest in 71 00:05:02,250 --> 00:05:06,690 Suze: there as I think I should have. What is that about? 72 00:05:07,380 --> 00:05:10,159 Suze: And I can relate to all of you because remember 73 00:05:10,160 --> 00:05:13,740 Suze: I've been doing I bonds since 2001 and I remember 74 00:05:13,740 --> 00:05:17,210 Suze: years ago, you know, 10 years ago, you know, 20 75 00:05:17,210 --> 00:05:20,150 Suze: years ago now even I would go on Treasury direct 76 00:05:20,150 --> 00:05:24,220 Suze: dot gov when it was available and I would go 77 00:05:24,230 --> 00:05:26,690 Suze: wait a minute. I'm not making any interest on my 78 00:05:26,690 --> 00:05:28,250 Suze: I bonds. Why is that? 79 00:05:29,450 --> 00:05:33,610 Suze: And it was very very confusing now back then it 80 00:05:33,610 --> 00:05:36,180 Suze: was easy for me to pick up the phone call 81 00:05:36,180 --> 00:05:39,060 Suze: Treasury Direct, anybody could do it. You could get them 82 00:05:39,060 --> 00:05:42,000 Suze: to answer you via email. It was very easy back 83 00:05:42,000 --> 00:05:42,529 Suze: then 84 00:05:43,279 --> 00:05:46,779 Suze: because not that many people were doing it and they 85 00:05:46,779 --> 00:05:49,640 Suze: were able to explain to me over and over again. 86 00:05:49,640 --> 00:05:52,170 Suze: It took quite a few calls by the way how 87 00:05:52,180 --> 00:05:58,300 Suze: interest on I bonds are actually calculated according to their formula. 88 00:05:58,320 --> 00:06:01,190 Suze: So I get why all of you would be confused. 89 00:06:01,200 --> 00:06:04,600 Suze: So let's see if I can straighten this out 90 00:06:05,310 --> 00:06:09,279 Suze: via a podcast. I wish I had a little chalkboard 91 00:06:09,279 --> 00:06:11,320 Suze: that I could go here. This is how it works. 92 00:06:11,330 --> 00:06:14,780 Suze: Do this, do that. But this is an audio podcast. 93 00:06:14,790 --> 00:06:17,099 Suze: So I would advise that you might want to take 94 00:06:17,100 --> 00:06:21,200 Suze: out some paper as well as a pen or pencil 95 00:06:21,210 --> 00:06:26,409 Suze: and maybe just write down a few notes for yourself. Alright, 96 00:06:26,410 --> 00:06:29,430 Suze: let's get some basics about I bonds. 97 00:06:30,210 --> 00:06:33,479 Suze: The first basic you have to know is that when 98 00:06:33,480 --> 00:06:36,320 Suze: you invest in an I bond 99 00:06:37,750 --> 00:06:42,790 Suze: you cannot take any money out the first year whatsoever. 100 00:06:42,810 --> 00:06:47,060 Suze: And years two through five, if you redeem any amount 101 00:06:47,060 --> 00:06:51,580 Suze: of money, there is a three month interest penalty. 102 00:06:52,710 --> 00:06:54,990 Suze: So the Treasury 103 00:06:55,920 --> 00:06:58,339 Suze: during those five years 104 00:06:59,420 --> 00:07:04,030 Suze: decided that when you look up the amount of interest 105 00:07:04,450 --> 00:07:08,260 Suze: that is showing in your account, they're going to only 106 00:07:08,260 --> 00:07:09,450 Suze: show you 107 00:07:10,160 --> 00:07:16,040 Suze: what you have minus the three month interest penalty. 108 00:07:16,710 --> 00:07:22,010 Suze: So therefore if any time after year one through year five, 109 00:07:22,020 --> 00:07:27,620 Suze: you decide to redeem you're going to see exactly what 110 00:07:27,630 --> 00:07:29,220 Suze: you would get 111 00:07:30,580 --> 00:07:35,670 Suze: now. That doesn't mean that you aren't earning more interest 112 00:07:35,680 --> 00:07:40,900 Suze: because your money actually is earning interest from the very 113 00:07:40,910 --> 00:07:45,160 Suze: first month. But they're not going to show you that 114 00:07:45,170 --> 00:07:49,040 Suze: interest because they are going to assume that there is 115 00:07:49,040 --> 00:07:51,580 Suze: a three month interest penalty. 116 00:07:52,310 --> 00:07:54,850 Suze: The other thing you have to know and this is 117 00:07:54,850 --> 00:07:58,260 Suze: where it gets weird. Do you remember like it was 118 00:07:58,270 --> 00:08:03,890 Suze: April 2022 we were debating should you put money into 119 00:08:03,890 --> 00:08:08,150 Suze: your I bond account now and lock in the 7.12% 120 00:08:08,160 --> 00:08:11,240 Suze: interest rate, which is what it was paying or should 121 00:08:11,240 --> 00:08:13,760 Suze: you wait until May 1st to do it 122 00:08:14,310 --> 00:08:18,860 Suze: to get the 9.62% and I went back and forth 123 00:08:18,870 --> 00:08:21,920 Suze: on it, Oh no, wait until May, no do it 124 00:08:21,920 --> 00:08:26,250 Suze: in April. Finally I decided let's do it in April, 125 00:08:26,260 --> 00:08:31,380 Suze: let's lock up the 7.12 for six months. You know, 126 00:08:31,380 --> 00:08:36,670 Suze: you're gonna get 9.62% guaranteed after that for six months 127 00:08:36,679 --> 00:08:40,670 Suze: because none of us really know in November what the 128 00:08:40,670 --> 00:08:42,840 Suze: new interest rate is going to be. 129 00:08:43,600 --> 00:08:48,640 Suze: So we decided yes, yes, do it in April and 130 00:08:48,640 --> 00:08:51,580 Suze: by the time we decided this, it was already like 131 00:08:51,590 --> 00:08:56,580 Suze: April 20 or even the 25th 2022. And let's just 132 00:08:56,580 --> 00:08:59,729 Suze: say you did it at that point in time, 133 00:09:00,570 --> 00:09:05,310 Suze: even though you invested in I bonds at essentially the 134 00:09:05,320 --> 00:09:07,060 Suze: end of the month. 135 00:09:07,800 --> 00:09:13,300 Suze: Listen closely everybody, your interest rate that you are credited 136 00:09:13,320 --> 00:09:17,780 Suze: started April one of that month. 137 00:09:18,570 --> 00:09:22,330 Suze: So any time you invest in an I bond, 138 00:09:23,190 --> 00:09:27,429 Suze: you're actually better off investing at the end of the 139 00:09:27,429 --> 00:09:32,330 Suze: month because then you almost get an entire free month 140 00:09:32,340 --> 00:09:37,750 Suze: of interest because interest starts accumulating the first of the 141 00:09:37,750 --> 00:09:41,090 Suze: month that you invested in. Even 142 00:09:41,730 --> 00:09:44,430 Suze: if it was at the end of the month that 143 00:09:44,429 --> 00:09:45,270 Suze: you did it, 144 00:09:45,950 --> 00:09:48,439 Suze: you should all write that down 145 00:09:49,179 --> 00:09:53,410 Suze: Because when interest rates are especially this high, that's a 146 00:09:53,410 --> 00:09:58,140 Suze: big deal, that's an extra $60 or $80 for that 147 00:09:58,140 --> 00:10:00,000 Suze: one month of interest 148 00:10:01,000 --> 00:10:02,860 Suze: and you did it at the end of the month. Now, 149 00:10:02,860 --> 00:10:04,690 Suze: I just have to say this, I'm going to deviate 150 00:10:04,690 --> 00:10:08,650 Suze: for one second. The same is true by the way, 151 00:10:09,309 --> 00:10:14,040 Suze: when you redeem when you redeem a bond, 152 00:10:14,690 --> 00:10:17,810 Suze: so when you redeem a bond, you want to redeem 153 00:10:17,809 --> 00:10:22,140 Suze: a bond at the very first of the month, because 154 00:10:22,150 --> 00:10:25,860 Suze: even if you redeem a bond at the end of 155 00:10:25,860 --> 00:10:30,280 Suze: the month, you're gonna lose the entire interest for that month. 156 00:10:31,040 --> 00:10:33,710 Suze: So it's not like they do it per day, they 157 00:10:33,710 --> 00:10:36,220 Suze: do it by the first. 158 00:10:36,870 --> 00:10:41,710 Suze: All right. So when you are investing in I bonds, 159 00:10:41,720 --> 00:10:44,930 Suze: you want to invest in the last few days of 160 00:10:44,929 --> 00:10:48,550 Suze: the month that allow you to qualify in your interest 161 00:10:48,550 --> 00:10:52,590 Suze: will start the very first of that month. When you 162 00:10:52,590 --> 00:10:56,040 Suze: are redeeming an I bond you do not want to 163 00:10:56,040 --> 00:10:58,940 Suze: wait to the end of the month. You want to 164 00:10:58,940 --> 00:11:02,000 Suze: redeem the very first of the month. 165 00:11:02,559 --> 00:11:08,699 Suze: Now, why is that? So listen closely again because this 166 00:11:08,710 --> 00:11:13,209 Suze: has a lot to do with when you see your 167 00:11:13,220 --> 00:11:17,770 Suze: interest shown in your Treasury direct dot gov account. 168 00:11:19,020 --> 00:11:21,380 Suze: So because the Treasury 169 00:11:22,240 --> 00:11:28,199 Suze: gives you essentially one month of free interest, remember you 170 00:11:28,200 --> 00:11:32,070 Suze: invested at the end of the month in April, but 171 00:11:32,070 --> 00:11:34,660 Suze: you started to get interest April one 172 00:11:35,840 --> 00:11:40,599 Suze: because they're essentially giving you one free month of interest. 173 00:11:40,650 --> 00:11:46,410 Suze: They want that one free month back when you redeem 174 00:11:46,420 --> 00:11:50,140 Suze: within the five year period of time. 175 00:11:51,110 --> 00:11:56,250 Suze: So what that means is that even though your money 176 00:11:56,260 --> 00:12:02,550 Suze: is accumulating interest, they do not show you any interest 177 00:12:02,559 --> 00:12:09,420 Suze: accumulation until your fifth month that you have had a 178 00:12:09,420 --> 00:12:11,410 Suze: series I bond 179 00:12:12,230 --> 00:12:16,360 Suze: the fifth month. So you may want to write these 180 00:12:16,360 --> 00:12:21,459 Suze: months down. What that means for you. Is that if 181 00:12:21,460 --> 00:12:25,280 Suze: you bought an I bond in January the first of 182 00:12:25,290 --> 00:12:28,280 Suze: any year doesn't matter if you buy an I bond 183 00:12:28,290 --> 00:12:32,400 Suze: in January, you are not going to see any interest 184 00:12:32,400 --> 00:12:36,370 Suze: accumulation until May of that year, 185 00:12:37,120 --> 00:12:42,089 Suze: Five months later, January, February, March, April, May. 186 00:12:43,090 --> 00:12:45,750 Suze: If you bought it in February, you won't see it 187 00:12:45,750 --> 00:12:52,610 Suze: till June, March, July, April, August may not till September, 188 00:12:52,679 --> 00:12:57,260 Suze: June not till October. July not till November. August, not 189 00:12:57,260 --> 00:13:03,390 Suze: till December. September, not till January. August, not til February. November, 190 00:13:03,390 --> 00:13:08,280 Suze: not till March. December, not till April, you do not 191 00:13:08,280 --> 00:13:10,660 Suze: see any interest at all 192 00:13:10,950 --> 00:13:17,370 Suze: on your statements till the fifth month again. Why is that? 193 00:13:17,420 --> 00:13:21,850 Suze: It's the first three months of an interest penalty that 194 00:13:21,850 --> 00:13:26,040 Suze: they are assuming year one through five 195 00:13:26,630 --> 00:13:31,280 Suze: and that one extra month, that fourth month of free 196 00:13:31,290 --> 00:13:33,710 Suze: interest that they gave you. 197 00:13:35,110 --> 00:13:39,880 Suze: Now, that does not mean that you have not been 198 00:13:39,890 --> 00:13:41,660 Suze: earning interest. 199 00:13:42,280 --> 00:13:48,270 Suze: So let's just say back in November of '21, which 200 00:13:48,270 --> 00:13:51,700 Suze: I was really pushing this heavy at that time when 201 00:13:51,710 --> 00:13:55,630 Suze: interest rates first were announced at 7.12%. 202 00:13:56,530 --> 00:14:00,770 Suze: And let's just say you bought it November of 21 203 00:14:00,780 --> 00:14:03,349 Suze: because the one person who really has written in five 204 00:14:03,350 --> 00:14:08,170 Suze: times now, that's when she actually bought $10,000 of an 205 00:14:08,170 --> 00:14:10,910 Suze: I bond . So I'm kind of doing this for you 206 00:14:10,920 --> 00:14:17,770 Suze: Deborah anyway, now remember when they quote an interest rate 207 00:14:17,820 --> 00:14:21,090 Suze: such as 7.12% 208 00:14:21,690 --> 00:14:24,450 Suze: that is the annualized interest rate. 209 00:14:25,070 --> 00:14:29,270 Suze: But that interest rate is only good for six months. 210 00:14:29,310 --> 00:14:37,000 Suze: So that means you will only be getting 3.56% actual 211 00:14:37,010 --> 00:14:40,370 Suze: interest on the $10,000 212 00:14:41,040 --> 00:14:46,460 Suze: In May when it switched to 9.62%, that was the 213 00:14:46,470 --> 00:14:54,350 Suze: annualized yield, you will only get 4.81% for those six months. 214 00:14:54,430 --> 00:14:57,260 Suze: So when you do the math 215 00:14:58,250 --> 00:15:02,590 Suze: And let's say you bought $10,000 of an I bond in 216 00:15:02,590 --> 00:15:07,530 Suze: November 2021, your actual interest rate for those six months 217 00:15:08,620 --> 00:15:11,670 Suze: Is 3.56%. 218 00:15:12,220 --> 00:15:17,730 Suze: And you do the calculation and a few times $10,000 219 00:15:17,740 --> 00:15:26,540 Suze: by 3.56% in your head, you should have earned $356. 220 00:15:26,680 --> 00:15:33,620 Suze: But when you in fact look in April of 2022, 221 00:15:33,680 --> 00:15:37,260 Suze: which would be six months after November 21 222 00:15:38,130 --> 00:15:43,310 Suze: You look and on your statement online, all you see 223 00:15:43,320 --> 00:15:50,670 Suze: is $116 of interest and you freak out. And then 224 00:15:50,670 --> 00:15:53,910 Suze: you write me now, why is that? 225 00:15:54,500 --> 00:16:03,050 Suze: Again, listen closely, you actually did earn $356 of interest. 226 00:16:03,050 --> 00:16:07,600 Suze: That is your cumulative interest that you earned in those 227 00:16:07,610 --> 00:16:08,820 Suze: six months. 228 00:16:09,710 --> 00:16:13,990 Suze: But remember I told you that for the first four 229 00:16:13,990 --> 00:16:17,650 Suze: months and not until the fifth month you do not 230 00:16:17,650 --> 00:16:18,550 Suze: see 231 00:16:19,720 --> 00:16:24,250 Suze: any interest because why they're taking away the three months 232 00:16:24,250 --> 00:16:27,390 Suze: of interest penalty in case you redeem and the one 233 00:16:27,390 --> 00:16:29,080 Suze: month of free interest. 234 00:16:29,820 --> 00:16:34,710 Suze: So if you do the math, you actually are making 235 00:16:34,720 --> 00:16:39,360 Suze: approximately $60 of interest a month. 236 00:16:40,130 --> 00:16:44,870 Suze: And that really started in November 2021. 237 00:16:45,810 --> 00:16:49,450 Suze: But what happens is because they do not count it 238 00:16:49,460 --> 00:16:53,740 Suze: online for you to see for those first four months 239 00:16:53,760 --> 00:16:59,630 Suze: in the fifth month, which would be March 2022 which 240 00:16:59,630 --> 00:17:04,440 Suze: is the first time you see interest, that's online, 241 00:17:05,010 --> 00:17:07,330 Suze: they only show you 242 00:17:08,300 --> 00:17:13,180 Suze: $60 of interest because they're not showing you the first 243 00:17:13,190 --> 00:17:17,440 Suze: four months because they're assuming you have redeemed but your 244 00:17:17,440 --> 00:17:23,460 Suze: cumulative interest that you have earned by April 2022. If 245 00:17:23,460 --> 00:17:29,560 Suze: in fact you bought it November 21 is $356. 246 00:17:30,410 --> 00:17:36,870 Suze: Now obviously in may the interest rate change to 9.62%. 247 00:17:37,020 --> 00:17:41,230 Suze: You're only going to get 4.81%. 248 00:17:42,250 --> 00:17:49,240 Suze: However I want you to remember that that 4.81% you're 249 00:17:49,240 --> 00:17:56,190 Suze: going to be earning that on $10,356 which is truly 250 00:17:56,190 --> 00:17:58,419 Suze: what you have in your account. 251 00:17:59,330 --> 00:18:04,780 Suze: So if you did the math and you times 4.81% 252 00:18:04,790 --> 00:18:10,490 Suze: by $10,356, you would realize that over the next six 253 00:18:10,490 --> 00:18:17,139 Suze: months you will earn $498. You add that to the 254 00:18:17,140 --> 00:18:22,120 Suze: $356 that you already earned in the first six months. 255 00:18:22,420 --> 00:18:27,820 Suze: And truthfully you have a total of about $854. It 256 00:18:27,820 --> 00:18:29,870 Suze: may be a little bit more because interest rate is 257 00:18:29,869 --> 00:18:34,500 Suze: compounding but that is how much interest at the end 258 00:18:34,510 --> 00:18:39,899 Suze: of October 2022 you would have earned. Now listen closely 259 00:18:39,900 --> 00:18:40,570 Suze: again 260 00:18:41,220 --> 00:18:45,470 Suze: however you go online you look it up and you 261 00:18:45,470 --> 00:18:53,660 Suze: see the value is $520 because remember November 1st, you 262 00:18:53,660 --> 00:18:58,460 Suze: could actually redeem this bond if you wanted to. So 263 00:18:58,460 --> 00:19:03,469 Suze: all you would get back would be $10,520 because of 264 00:19:03,470 --> 00:19:07,850 Suze: the interest penalties. However if you didn't redeem it, 265 00:19:08,090 --> 00:19:15,820 Suze: You would have $10,856 in there to earn whatever is 266 00:19:15,820 --> 00:19:21,439 Suze: going to be declared on November one of this year. 267 00:19:22,760 --> 00:19:27,030 Suze: Now, truthfully, this really only is a problem during the 268 00:19:27,030 --> 00:19:31,490 Suze: first year. Everybody because it's the first year that you're 269 00:19:31,490 --> 00:19:34,479 Suze: going online and you're looking in the first month of 270 00:19:34,480 --> 00:19:36,989 Suze: the second month and the third month in the fourth month. 271 00:19:37,000 --> 00:19:40,920 Suze: And you don't see any interest accumulated whatsoever and you're 272 00:19:40,920 --> 00:19:44,740 Suze: going like what's going on well now, you know, 273 00:19:45,200 --> 00:19:48,010 Suze: and after this first year and you're sitting in there, 274 00:19:48,020 --> 00:19:51,330 Suze: you'll be able to see everything you need to see 275 00:19:51,359 --> 00:19:54,590 Suze: that you really are earning the interest rate that you 276 00:19:54,590 --> 00:19:56,360 Suze: want to be earning. 277 00:19:57,880 --> 00:20:00,940 Suze: Now that may be confusing to all of you. 278 00:20:01,890 --> 00:20:05,470 Suze: But the what your takeaways from this need to be 279 00:20:05,480 --> 00:20:09,660 Suze: is this when you buy a Series I bond, buy 280 00:20:09,660 --> 00:20:12,870 Suze: it the latest at the end of the month as 281 00:20:12,869 --> 00:20:15,880 Suze: you possibly can so that you know, you will be 282 00:20:15,880 --> 00:20:19,899 Suze: able to purchase it and it's cleared because interest starts 283 00:20:19,910 --> 00:20:23,420 Suze: earning day one of that month even though you did 284 00:20:23,420 --> 00:20:25,139 Suze: it at the end of the month 285 00:20:25,810 --> 00:20:29,500 Suze: when you do one day go to redeem redeem on 286 00:20:29,500 --> 00:20:33,840 Suze: the first of every month because if you waited even 287 00:20:33,840 --> 00:20:37,090 Suze: till the last day of the month to redeem 288 00:20:37,790 --> 00:20:41,000 Suze: you're not going to make any interest on that because 289 00:20:41,000 --> 00:20:45,120 Suze: they're getting back that one month of free interest that 290 00:20:45,119 --> 00:20:50,350 Suze: they gave you when you first bought. You are not 291 00:20:50,359 --> 00:20:54,460 Suze: going to see any interest show up on your online 292 00:20:54,470 --> 00:20:55,420 Suze: account 293 00:20:55,940 --> 00:20:59,719 Suze: Until the 5th month after you have purchased. 294 00:21:00,619 --> 00:21:04,970 Suze: And that fifth month is only going to show you 295 00:21:04,980 --> 00:21:08,949 Suze: what you actually earned in interest the first month. 296 00:21:09,470 --> 00:21:14,650 Suze: Your money is truthfully compounding for you. After the fifth year. 297 00:21:14,660 --> 00:21:19,159 Suze: You will see it all there without any penalties whatsoever. 298 00:21:20,190 --> 00:21:20,960 Suze: So 299 00:21:21,490 --> 00:21:27,570 Suze: that's how it works. It's really just that simple. All right. 300 00:21:27,570 --> 00:21:31,560 Suze: Everybody don't forget to tune in tomorrow to hear what 301 00:21:31,560 --> 00:21:34,470 Suze: I think is one of the greatest offers the Alliant 302 00:21:34,470 --> 00:21:38,020 Suze: Credit Union has ever made to help make this world 303 00:21:38,030 --> 00:21:41,750 Suze: a better place as well as your personal financial world. 304 00:21:41,760 --> 00:21:44,020 Suze: But until then, there's really only one thing that I 305 00:21:44,020 --> 00:21:46,780 Suze: want you to remember when it comes to your money. 306 00:21:46,970 --> 00:21:52,070 Suze: And that's for you to be smart, Strong, safe and secure. 307 00:21:52,420 --> 00:21:55,399 Suze: See you tomorrow. Bye bye.