Everything You Need to Know About T-Bills & I-bonds 2024

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Everything You Need to Know About T-Bills & I-bonds 2024

Рет қаралды 42,516

Jay Fairbrother

Күн бұрын

Пікірлер: 108

@JayFairbrother 5 ай бұрын

Easily buy T-bills WITHOUT Treasury Direct on Finvest - Try it Here - finvest.1stcollab.com/jayfairbrother_2_2

@jeffs9850 2 ай бұрын

We had $35k that we were holding for home improvements. I invested that $35k in $5k increments in various maturities between 1-6 months & set them to auto reinvest at maturity. We’re in the midst of the improvements now & changed each from auto reinvest to cash out at maturity to finance the projects. Worked great for us.

@fraydnot 2 ай бұрын

1 year CD @ 5%, I feel is a better option for me. I don't have state taxes. Thanks for the upload

@ScooterOnHisWay2024 4 ай бұрын

Your videos and those from Diamond Nest Egg/Jennifer Lammert have made me a lot more confident in buying fixed income products the last couple of years - and made me a nice chunk of money.

@oldbaygirl8415 3 ай бұрын

This is now the second video of yours I have watched. I cannot thank you enough for making these topics uncomplicated. You have won me over! I hit the Subscribe button!😊

@JayFairbrother 3 ай бұрын

I appreciate that! It means a lot when someone actually finds a video helpful :)

@todddunn945 4 ай бұрын

I don't see why people say why using Treasury Direct is complicated and "Clunky". Three of four clicks is all it takes. Also interest rates are not high right now, they are back to normal after a 20 year excursion to artificially low rates. When I opened my first savings account when I was in grade school I got 4% on my one dollar deposit. As far as I-Bonds go you can't sell them until you have had them for a year and there is a three month interest penalty if you sell them before you have held them for five years. Also you can't put enough money in I-Bonds to matter. finally, if you are getting a big tax refund, you need to reconsider how your withholding is structured because that tax refund was an interest free loan you gave the government.

@JBoy340a 4 ай бұрын

I agree with using Treasury Direct. Not the best UI, but simple enough to use with auto reinvestments if you want.

@dgdrumsounds 4 ай бұрын

Nailed it 💯

@ph00n0 4 ай бұрын

Would like to know where I can get more info on the restructuring of my w2.. I paid out maybe 14k last year and I thought wow I could've been earning interest on this..

@todddunn945 4 ай бұрын

@@ph00n0 Talk to your HR department. However, if you are not getting a significant refund, decreasing your withholding to less than your tax obligation will result in you owing tax penalties for insufficient withholding in addition to the tax you will owe.

@dgdrumsounds 4 ай бұрын

@@ph00n0 have you used the IRS’s Tax Withholding Estimator? I would start there. Once you fill in all the requested info, it will provide you with instructions for the adjustments you should make to your W2 depending on the refund (or lack thereof) you desire. Hope that helps.

@Fastapproaching 4 ай бұрын

They will not lower interest rates any time soon, we just came off of a 40 years of interest rate cuts now we're in a 40 year up cycle.

@Oheeeoh 4 ай бұрын

I bought a 3 month tbill today it's paying 5.44%

@todddunn945 4 ай бұрын

I think you need to check again. The yield on 13 week T-Bills has been 5.374 for the last two weeks. At least that is what is says on the Treasury Direct web site.

@anthonyhicks4401 Ай бұрын

@@todddunn945how much u invested

@sboy1955 Ай бұрын

Appreciate the discussion. I did upload Finvest app but am leary to use it as there are no KZfaq videos out there of users discussing the app?

@nateshiazerothree4666 4 ай бұрын

Hello, thank you for the information. I’ve been learning a lot about those bonds and you provided me with more information. Thank you so much.

@sagig72 5 ай бұрын

Hi Jay. I love your channel and specifically I love your contents about I-Bonds which I barely find anywhere else, so THANK YOU. I do have a few questions, I hope you can help me. I'll ask in a separate comment.

@Aren-Tibbs 5 ай бұрын

Thank you for pointing out that now is the best time, since 2007, to buy Series I Savings Bonds. For the past 17 years, the fixed rate component has been at or near zero. Hopefully, the fixed rate will stay steady or increase in May. 🤞

@JayFairbrother 4 ай бұрын

I’d put my money on it holding steady, but I’m ready if it goes up!

@jayhen5969 2 ай бұрын

so, is it worth tying up $1000 to earn $5? Did I get the math right?

@robertminiewski9804 Ай бұрын

More like $50..

@mint7924 2 күн бұрын

What the reason to But T-Bills vs SGOV ?

@christiandominguez2222 Ай бұрын

This is the way

@MiskimVeniceJohnson Ай бұрын

Thank you 👍

@truthalways8071 2 ай бұрын

Interesting video good information I think it would be amazing if you also broke down a savings you make as far as percentage if there were like a little chart you made showing if your income is so and so how much percentage you're saving on state taxes also do you have to pay city taxes or is it also exempt from city taxes thank you in advance for your response

@Sergio-gm4gv 3 ай бұрын

Great video thank you

@truthalways8071 2 ай бұрын

Also you mentioned this Finn vest do you end up making more money if you go to treasury direct and if invest charges how much percentage do you lose by going to finvest thank you in advance for your response

@JayFairbrother 2 ай бұрын

they charge .03% per month. So 30 cents on every $1000

@_gwyneth 4 ай бұрын

haha i always put in my max for ibonds every period!

@sagig72 5 ай бұрын

Hi Jay. I love your channel and specifically I love your contents about I-Bonds which I barely find anywhere else, so THANK YOU. I do have a few questions, I hope you can help me. When will we know the updated/new fixed rate for I-Bond for the period of May-Nov? Can we have a few days where we KNOW both fixed rates (the current one thru end of Apr, and next one) so that we can decide how to make a purchase? without it, we have to "bet" between the two periods. Your thoughts?

@nyameyen.4060 2 ай бұрын

Thank you. Should I buy T bills with zero coupon or a coupon rate?

@kenpstok151 2 ай бұрын

I'm honestly looking into buying factory direct but my question is. I am looking to buy for my son. He turns 15 today and i told him i am willing to help him invest in his future. Can i or should i buy $1200 in bonds in one lump sum or as i was planning , to buy $100 in bonds a month for the next year? (Is that even a viable/logical option)

@TheAndrewLopezFinancePodcast 5 ай бұрын

You know I’m taking that ticket to the moon with BTC! 🚀💎🙌💎🙌

@JayFairbrother 4 ай бұрын

🚀 🌕

@mere_cat 4 ай бұрын

BTC and T-Bills are nothing alike. BTC is like a zero coupon perpetual bond. T-Bills are the shortest duration asset you can own. I don’t think they are mutually exclusive if you are trying to manage risk. I own both. 😉

@nikka4903 29 күн бұрын

But you still have to pay federal taxes each year on the interest

@ghostl1124 4 ай бұрын

Hey, I like that nostalgic pin ball machine you have in the background.

@JayFairbrother 4 ай бұрын

Thanks!

@drrahulkhn 2 ай бұрын

Can both parents buy I bonds for kids as minor ? We have 2 kids, Can i buy1 for myself, my daughter and my son and my wife can do the same so altogether we will have 6 for our family ?

@eliottsutton66 4 ай бұрын

Thank you for the very informative video, i was wondering if you could clarify something for me? You mentioned that you only recomend selling your Ibond and repurchasing a new one with the 1.3 fixed interest rate if you plan on holding "long term" Could you explain what lenght of time you were thinking?

@JayFairbrother 4 ай бұрын

In general I'd say 5yrs or more. The fixed interest rate gets more and more valuable the further inflation & interest rates fall from where they currently are.

@learninglessons7428 3 ай бұрын

a question re I Bonds "interest rate" indicated on the Summary page of TD website... Can you explain this rate? Is this rate what you are getting paid for the current 6 months period and if so, does it change every 6 months? Thanks.

@JayFairbrother 3 ай бұрын

Yes, its the rate you'll get paid for your first 6 months on the I-bond. The following 6 months you'll get whatever the rate adjusts to next and so on for as long as you hold your ibonds.... I explain it in more detail in my "everything you need to know about ibonds" video if you're interested in more

@RobIdemoto 4 ай бұрын

Thank you for sharing your tips and strategy for t-bills. I was able to buy 6-month T bills on the Finvest app. I am wondering given the fed saying that they will drop interest rates thrice this year, does it make sense to lock in the interest rate for 1 year or even buy t-notes for a longer duration?

@JayFairbrother 4 ай бұрын

If it makes sense for your strategy, yes, the longer duration treasuries will be better to hold if if the fed follows through on the plan to drop interest rates this year

@sagig72 5 ай бұрын

Hi Jay. I love your channel and specifically I love your contents about I-Bonds which I barely find anywhere else, so THANK YOU. I do have a few questions, I hope you can help me. I may need to ask them in separate comments tho cause there's a character limit by KZfaq on a comment size. My first question is: When will we know the updated/new fixed rate for I-Bond for the period of May-Nov? Next question is: Can we have a few days where we KNOW both fixed rates (the current one thru end of Apr, and next one) so that we can decide how to make a purchase? without it, we have to "bet" between the two periods. Your thoughts?

@JayFairbrother 5 ай бұрын

We should be able to estimate what the new fixed & variable interest rates on the May-Nov Ibonds will be by Mid-April. But yes, the Treasury will announce what the new rates will be a few days before the new i-bonds will begin being issued. If I remember from October its real close to the end of the period where they announce it, so you have to be ready to pounce if you're waiting on that to make your decision.

@sagig72 5 ай бұрын

@@JayFairbrotherHi Jay, thanks much for addressing my question. So what you're saying is I should prepare in advance and expect the announcement for May-Nov in the last few days of Apr and by being prepared I should be in position to "go all in" in Apr if that would be what I end up preferring. Did I undertsand you?

@JayFairbrother 4 ай бұрын

Inflation numbers just came out & it looks like Ibonds variable rate will drop to around 2.96% (from 3.94% currently) and the predictions I'm seeing now are that the fixed rate will either stay at 1.3% or drop to 1.2%. So buying in April will likely be a better option than buying in the May-October period.

@sagig72 4 ай бұрын

@@JayFairbrother Hi Jay!!! Thank you so much for remembering me and my question. TRULY appreciated. Yes, it looks like it's more worth it to buy now, which I will likely do. Thank you so much again!

@JayFairbrother 4 ай бұрын

@@sagig72 my pleasure!

@raymonddee1059 3 ай бұрын

US debt 40t

@Joe-lk6oc 4 ай бұрын

Tell your wife to be happy with a good used car. New cars are far too overpriced!

@RedReazie 4 ай бұрын

If I fall into the category of buying Ibond a couple years ago when rate was 9%. Why is it better to sell the old bond and use those funds to buy Ibond today versus keeping the old one and just putting in more money to also buy the new Ibond with fixed rate?

@JayFairbrother 4 ай бұрын

If you're willing to add to your I-bond holdings its totally ok to hold the ones you have and just buy more with the fixed rate. I just have a lot of people ask if they should roll their current i-bond investment into new i-bonds with a fixed rate because they can't/don't want to add to the amount they currently have invested in them

@mattw785 5 ай бұрын

I have i-bonds going back t 2014 and 2016. Are those considered fixed or variable rate?

@JayFairbrother 4 ай бұрын

I would guess that the fixed rate was zero on those, but you’d have to check depending on when exactly they were issued

@mattw785 4 ай бұрын

@@JayFairbrother Took your advice, redid 2 i-bonds to check. I went from 3.94 to 5.27%. I did the rest as soon these settled. All are now 5.27.

@argeurasia 4 ай бұрын

What about European investors? How much in taxes one has to pay?

@JayFairbrother 4 ай бұрын

I couldn't tell you, it depends on which country you live in. I'd consult someone familiar with your countries tax laws for that answer

@TheOleOtter 2 ай бұрын

So i didn't understand completely, if i give them 200$ i buy it for 195, and they give me 200 at the end? But they still take the 200?

@JayFairbrother 2 ай бұрын

No, you they only take the $195, and you get $200 at the end. So the amount you enter to buy is the amount you'll receive at the end, what you'll actually pay when you buy them will be less.

@azimuthbusinesscenter 4 ай бұрын

if I buy a 12 month T bill, how often do I get a dividend?

@JayFairbrother 4 ай бұрын

Only at the end. They’re sold at a discount which represents the interest you’ll earn at the end. If you notice the section of the video where I bought a 4week tbill. I bought $1000 (which is what I’ll get back at the end) but only paid $996 when the money came out of my account

@jevinrainey7206 3 ай бұрын

What does he mean by a four week annualized 5%?

@Tay234. Ай бұрын

If u put it in for a year it’s 5%. If it’s there for four weeks it won’t be 5% it’ll be 1/12 of 5% I think.

@aperson1181 3 ай бұрын

Why do people flock to TIPS? Why would people prefer I Bonds, TIPS over Treasuries, 5, 10, 20+ Treasuries?

@shivpalpatine 23 күн бұрын

i guess the liquidity? and apparently the i-bonds have tax free benefits if using for paying for educational expenses? i cant think of anything else. diversifying investments i suppose. the 5/10/20yr bonds are only attractive right now, maybe not in the future when rates drop

@thethrill2877 4 ай бұрын

When the IBond renews do we automatically qualify for the new fix rate or do we have to sell and buy .

@JayFairbrother 4 ай бұрын

No, fixed rate on ibonds never changes once you buy it, the variable portion will change ever 6months. With Tbills if you renew them you get a brand new rate each time

@thethrill2877 4 ай бұрын

@@JayFairbrother so I will have to cash them out then repurchase them .

@NoName-zm1ks 4 ай бұрын

Yes you do have to sell

@fernandaherrera3353 4 ай бұрын

Does cashing out and repurchasing count against the yearly allowance of I bonds? Or will I be able to buy another 10k on top of this selling and rebuying move? Thanks!

@JayFairbrother 3 ай бұрын

@@fernandaherrera3353 Cashing out doesn't affect your limit. The limit applies to whatever you buy in a given year, no matter what

@JohnMatthew1 4 ай бұрын

SGOV baby SGOV

@ArunKLogan 5 ай бұрын

How much portion of your investment you put in ibonds n tbills? What are the equities you are invested in?

@JayFairbrother 4 ай бұрын

I keep 3-6 mos of expenses in them as a long-term emergency fund behind my normal savings account

@ArunKLogan 4 ай бұрын

@@JayFairbrother I love your content and started investing in Tbills after watching your channel last year. Can you share your stocks portfolio here? I love to see those and pick the good ones

@joshlowell3075 4 ай бұрын

Do IBONDS compound interest just like CD's do; or do they just accumulate interest seperatly from the original price of the investment so the interest on IBONDS does not compound like a CD's interest does?

@JayFairbrother 4 ай бұрын

Interest is paid every 6 mos and does compound as you hold the Ibond

@joshlowell3075 4 ай бұрын

@@JayFairbrother But does the interest make interest? Because it seems to be kept in a different column than the Ibond.

@JayFairbrother 4 ай бұрын

@@joshlowell3075 yes, thats what's meant by compounding.

@commonsenseisntcommon1776 4 ай бұрын

Negative Ghost rider................there are higher high interest savings accounts out there!

@Joe-lk6oc 4 ай бұрын

You are insane to live in New York! There are soooo many better states.

@JayFairbrother 4 ай бұрын

Such as?

@Joe-lk6oc 4 ай бұрын

Florida, Tennessee, Texas for sure and nearly every other state except maybe Commiefornia. @@JayFairbrother

@JayFairbrother 4 ай бұрын

@@Joe-lk6oc lol, sorry you couldn't pay me to live in any of those states. Other than it still being cold & grey in early April, I've got no complaints with it here

@Joe-lk6oc 4 ай бұрын

@@JayFairbrother Really? Why do you like NY better than Fl, Tn, Tx?