September 2017 CPI-U numbers released: November 2017 I Bonds are a buy!

The U.S. Bureau of Labor Statistics released the September 2017 Consumer Price Index (CPI-U) inflation data last week, which increased by 0.53% over the past month.

As always, now is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for October 2017 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from March 2017 (243.801) and September 2017 (246.819) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for October 2017 issue I Bonds.

That means these bonds would earn the current rate of 1.96% (using 0% fixed & 0.98% variable) for the first 6 months and 2.48% (combined 0% fixed & 1.24% variable) for the second 6 months. IMO, the current 1.96% rate makes it a toss up when it comes to deciding on an October vs. November purchase. You can either buy now and lock in the known attractive rates for twelve months, or you can hold off until November and hope that the fixed portion rises from the 0% currently offered. Either option is attractive when compared to short term investments like the 1 year CD @ 1.65% APY currently being offered at The First State Bank.

I already maxed out my 2017 purchase limit in January, so I'm only an observer at the moment. However, I will likely be buying in January 2018 due to the 2.48% (minimum) rate that will be available to me next year.

October 2017 Financial Asset Roundup

Here are my current financial assets as of the market close on October 10th, 2017:

Asset	Sep 2017	Oct 2017	Change
Checking	832	491	-341
Money Market	69,541	66,489	-3,052
Savings Bonds	136,721	137,015	294
Treasury Bills	0	0	0
CDs	41,558	41,671	113
Brokerage	160,442	153,160	-7,282
401k	159,792	161,984	2,192
Roth IRA	136,948	139,904	2,956
SEP IRA	661,119	685,532	24,413
529 Savings	164,194	166,232	2,038
Total Assets	$1,531,147	$1,552,478	$21,331
			1.39%

The S&P 500 has continued to hit all time highs since the last update, rising 2.51% during that time:

(chart courtesy of google.com)

On the jobs front, the unemployment rate for September dropped to 4.2%, although 33,000 jobs were lost courtesy of Hurricanes Harvey and Irma. Oil prices are up slightly to the $51 level, while hurricane-inflated gas prices have started to fall locally ($2.52 at my last fillup).

On the financial front, my asset levels have reached an all-time high for the ELEVENTH month in a row, breaking the previous high from September 2017. I don't foresee any money moves, although I will be keeping an eye on the September CPI-U numbers when they are released on Friday even though I have already maxed out my 2017 I Bond limit.

As for the non-financial, I've spent most of my time tinkering on various small projects around the house. I've been enjoying the seasonably warm weather, but am not looking forward to the cold weather that will follow.