Watch Next - Updated T-Bill + Ibond strategy kzfaq.info/get/bejne/jMhpZcqJlbTHk6s.html
@bryanstone654 Жыл бұрын
perfect for me at age 63 to make a decent 5% return on my retirement money, avoiding the volatility of the stock market. Thanks.
@kvoncomedyАй бұрын
At 63 you are still a long term investor. Anything over 3 years is. Therefore the volatility doesn’t matter in any 5 to 10 year period. All experts will tell you = You need to get into stocks 70%
@Riley_1955 Жыл бұрын
Just got into T-bills myself and I buy all of them on Treasurydirect and I'm having a wonderfull experience and will continue to do so as long as the rates are up.....My last 4wk T-bill earned over 4% apy and my lousy bank(PNC) is paying 0.01% on my savings account....It's a no brainer.
@JayFairbrother Жыл бұрын
Totally agree!
@teddavis1689 Жыл бұрын
About to jump into them myself. To clarify the 4% apy you mentioned -is it 4% total or if (1/12) of 4%. Or am I totally missing the math on this (totally possible as well).
@JayFairbrother Жыл бұрын
@@teddavis1689 Yep, the 4% is an annualized rate
@Riley_1955 Жыл бұрын
@@teddavis1689 Yeah it's 4% if you took it out to a year and that figure would be a lot less if you figured it just for 1 month.....Just to give you an example I just did one for 8wks for 95K at 4.5% APY and will make $655 interest in those 2 months.
@delt19 Жыл бұрын
@@Riley_1955 shouldn't it be around 712$ in interest in that example?
@michaelvaldez6878 Жыл бұрын
This is exactly what I was looking for. Very clear and concise. Thank you!
@JayFairbrother Жыл бұрын
Glad it was helpful!
@TravisMcGee151 Жыл бұрын
@@JayFairbrother 5% of 95.00 is not 5, hence does not equal 100. 5% of 95 is 4.75 which equals 99.75.
@vKingLouie8 ай бұрын
@@TravisMcGee151 its 5% of 100, which is 5$. So you’d buy it for $95. When it matures in 52 weeks they give you $100. The “interest” is the discount you are getting off the face value of the security.
@user-vw4bh2jl5z2 ай бұрын
@@TravisMcGee151 in the scenario provided in the video the effective interest earned would be 5.26% ($5 earned off of a $95 investment). 5 / 95 = 0.0526
@littlerayofsunshine69 Жыл бұрын
Watched 10 minutes of a 30 minute video from another channel prior to this. All I took away from it was confusion and a headache. Very clear and well explained introduction for the novice. 👍
@JayFairbrother Жыл бұрын
Awesome! (well, not for the other channel I guess) Glad I could help!
@aychkaykay888 ай бұрын
NO ONE HAS EVER EXPLAINED BONDS/BILLS/NOTES TO ME WITH THIS MUCH SIMPLICITY!!!! THANK YOU FOR BEING SO CONCISE AND MAKING AN ANNOYINGLY AND UNNECCSARILY CONFUSING TOPIC SIMPLE
@salessales8509 Жыл бұрын
Great video - Also 6 month cds are at around 5 percent as long u stay below the FDIC insurance amount- theres zero risk
@ceasergert2780 Жыл бұрын
Schwab 5.35 % on 18 month. 👍👍👍👍
@mr.j2776 Жыл бұрын
fingers crossed on the "zero risk" part..... 😵💫
@abhishekshrivastava8916 Жыл бұрын
This is superb! I believe lot of immigrants aren't aware of this short-term investment opportunity. Extremely helpful video. Thank you Jay.
@commonsenseisntcommon1776 Жыл бұрын
Immigrants?
@stinga_8 ай бұрын
@commonsenseisntcommon1776 yes. You think immigrants don't invest in stocks etc?
@PillCosbylovesPills Жыл бұрын
The ETF way sounds like the most convenient way to buy especially with a roth or 401k account
@nicklatino7157 Жыл бұрын
This seems so perfect! Pretty soon, I'll be migrating from college to the workforce, so I want cash to be quickly availible on hand in the short term if I need it. But I also want a way to fight back against inflation, so my savings don't deplete as much. I think that T-bills are the way!
@mikef445 Жыл бұрын
Jay, it was a pleasure watching your video. Your very plain spoken (I mean that in the nicest way and easy to understand). Your following is very well deserved and I think I'm going to subscribe as well. Keep up the good work. Your friend Mike.
@JayFairbrother Жыл бұрын
I appreciate that! Thanks for the kind words!
@nakulgupta1432 Жыл бұрын
Awesome video which clears all my doubts about T-Bills
@nereidateran156 Жыл бұрын
Thank you for making this kinds of videos, great and simple explanation. Also, a big thanks to you for your so clearly way of speaking, it make it easier for me, who english is not my first language, to understand everything you said. Blessings to you. 😊
@blackrain3466 Жыл бұрын
I lost a lot on your NUSI etf supposedly great investment last year ended up a total bummer! well you live and learn and I sure learned on that! and that being said the whole stock market has crashed a lot since then!, will stay safe for time being with T-bills thanks for the well explained process.
@AlexeyRome Жыл бұрын
Dang your video effects have gotten way better. Super enjoyable to watch! Thanks for the info
@JayFairbrother Жыл бұрын
Thanks! I've been trying to get better at that part of making videos !
@AlexeyRome Жыл бұрын
@@JayFairbrother It shows! Let's get you some more subs :)
@SooperToober8 ай бұрын
New sub - awesome explanation for a neophyte-thanks a bunch!
@frze56456 ай бұрын
If you put in $95 and you get back $100 the return is NOT 5% - it is 5.26%. Obviously.
@jmurphy4975 Жыл бұрын
Super informative! Thank you, Jay!
@JayFairbrother Жыл бұрын
My pleasure, thanks for watching!
@Vista11411 ай бұрын
Correct me if I'm wrong. I've watched a lot of videos about bonds and what I noticed is, the presenter always fail to mention that the buyer of the bond don't get the YTM they look forward to. Example, Treasury bond with 3 mos., 5.5% YTM does not really translate to 5.5% yield on your $5K investment. You're lucky if you get 3/4's of the yield expected.
@Crashnorun01 Жыл бұрын
This is great info, so valuable. Placing the order is clear, but the auction process is a bit unclear. Can you go over the auction process?
@goon5544 Жыл бұрын
Forget t bills, i traded my way to a nice down payment in 2020 buying stocks after the covid sell off. It was extremely never racking and ive learn and change alot since then.
@yonallb Жыл бұрын
I've had my 165k 13week ladder going for a while now. I get a payout every month. As rates are going up steadily, I think shorter length of time is the best option. It's been soo nice to get paid for savings after so many years of 0% interest rates. I prefer to buy them on vanguard over treasury direct. There are several advantages to not buy on treasury direct if you do some research. Really the only advantage treasury direct has is the $100 minimum over $1000 minimum from 3rd parties. In the usual scenario for t-bills this is inconsequential. Cheers.
@TylerBrownT3Homes Жыл бұрын
Stupid question. If one were to purchase a 4 week TBill through an online brokerage (like fidelity), at maturity, its the US treasury paying you face value, not a sale on the secondary...right? Just want to make sure face value is face value and shifting rates/yields dont change the amount paid at maturity...Thus going 4 weeks rather than longer.
@yonallb Жыл бұрын
@@TylerBrownT3Homes I honestly don’t know how they work behind the scenes. I imagine the brokerage makes the purchase with the treasury but I don’t know 100%. From what I have seen so far the rates are consistent with the fed and there are no fees.
@TylerBrownT3Homes Жыл бұрын
@@yonallb From what I understand, I buy from secondary (my brokerage acct website), then on the maturity date the money (face value) goes back into my bank and the face value gets auto reinvested in more tbills:) My concern was that if bought through my brokerage (secondary) that I would have to sell the bonds on the secondary (subject to losses) rather than just turn in to the US Treasury for payment.
@yonallb Жыл бұрын
@@TylerBrownT3Homes okay, I think I understand a bit more now. I personally don’t ever buy or sell on the secondary market. I only purchase at auction. You can purchase at auction through third party brokers like fidelity, vanguard etc. When you purchase at auction your money minus the interest is locked up. You get the interest immediately. Ex. You buy 45k worth of bonds and they only ever take 44829 of your money. You can sell on the secondary at anytime if you would like. I just keep it to maturity and get the full amount back (45k from my example). I use vanguard and they don’t auto re-invest. The money ends up sitting in a settlement fund for a week between auctions. The fund actually has really good rates so it isn’t a big deal.
@yonallb Жыл бұрын
@@TylerBrownT3Homes and just to clarify a bit more. A brokerage and the secondary market are not synonymous. At a brokerage you can buy at auction and wait until maturity, just like the fed. You can also buy on a secondary market and sell on the secondary market on a brokerage. You may be able to sell on the secondary with treasury direct but is much more of a hassle.
@donyamonique Жыл бұрын
This video was so helpful for me! I just learned about treasury bills and will now be purchasing them. Thank you!
@JayFairbrother Жыл бұрын
Glad it was helpful!
@TrentDressel Жыл бұрын
well made video - learned what I was looking for
@JayFairbrother Жыл бұрын
Glad to hear it! Thanks for watching!
@OrionWinters Жыл бұрын
Thanks for the video. Great help
@gregisaacs7546 Жыл бұрын
While a great way to explain T-bills, all yield rates are annualized. That is not mentioned. A lot of people might get excited to buy T-bills for four weeks at a 5% yield rate, not understanding that it's 5 percent yield interest / 12 months, which is about $4 or so on every $1000 or 42 cents on $100. Still very well done video.
@pumm3l46 Жыл бұрын
Does that mean that in order to get the full 5% then you have to keep your money in there for the full 12 months?
@jcw5002 Жыл бұрын
Awesome video! You literally covered all of my outstanding questions. Thank you :)
@JayFairbrother Жыл бұрын
Glad it was helpful, thanks for watching!
@JohnzoGhonzo Жыл бұрын
Amazing explanation, thank you!!
@JayFairbrother Жыл бұрын
Glad it was helpful, thanks for watching!
@james-kh7oi Жыл бұрын
Jay, very good cover...thanks. Sit in hands...again.
@ericabolding57533 ай бұрын
@JayFairbrother can you explain how selling T bills before they have matured and while interest rates have increased will cause someone to lose money on that sell? Your video is fantastic, that is the only concept I’m not totally grasping. Thank you!!
@JayFairbrother3 ай бұрын
If you're selling early & rates have since increased someone will be willing to pay less for your old t-bill than a new one that gives them a higher interest rate.
@Panzer50005 ай бұрын
Excellent vid and explanation. Thank you very much.
@JayFairbrother5 ай бұрын
Thanks, I appreciate it!
@saichaitanya101 Жыл бұрын
Great video as always, Jay! Made me think of a couple of things on the tax part- 1. If they are priced at a discount and pay no “interest”, is the income taxed as capital gain? 2. Does treasury direct deduct taxes on this?
@JayFairbrother Жыл бұрын
1. It's taxed as ordinary income just like any interest you'd receive from a bank account (though only at the federal level, no state/local taxes on T-Bills). If you're buying and selling Tbills on the secondary market (through a brokerage, not holding to maturity) and you profit on your buy/sell, THAT is taxed a a capital gains. 2. There is an option in TreasuryDirect where you can tell them to withhold up to 50% of the interest you earn for taxes.
@user-uh6iz4tx5h3 ай бұрын
Tbills can blow up should the interest rate start dropping …, inverse relationship with the interest rate!!!
@K.Stroh_ Жыл бұрын
Great video, i was wondering why they didn’t take the full $$$ out of my account when i bought t bills, your video cleared it all up
@randybates789 Жыл бұрын
I like your style! Keep up the good work!
@JayFairbrother Жыл бұрын
Thanks! I really appreciate that!
@dereefer683411 ай бұрын
Great informative video, Ty!
@thomassanio8745 Жыл бұрын
Thank you Jay. Well done and well explained.
@JayFairbrother Жыл бұрын
Thank you, I'm glad it helped!
@morebeer7673 Жыл бұрын
Based on another video you loaded, I set up a T-Bill ladder with 4, 8, & 13-week maturities. Will roll the 4 and 8 into new 13-week T-Bills, then have a 13-week maturing about every 4-5 weeks. Was curious if there is an auto-roll feature on TreasuryDirect, or did I have to manually reinvest into subsequent T-Bills?
@JayFairbrother Жыл бұрын
There's an auto-reinvest option for the same type of Tbill, but if you want to change lengths you have to do it manually
@msgmak13799 ай бұрын
Sounds like a great place for emergency fund money.
@911jak Жыл бұрын
Can’t sell them at treasury direct. You need to transfer them to your broker with paper documents. It takes about 4 + weeks to transfer so they won’t transfer 4 wk t bills. Treasury direct and brokers don’t charge a fee.
@larrrythecableguysoldneigh8899 Жыл бұрын
Its like having your money in the bank but when you get it back you get slightly more
@PCREPAIRZ17 ай бұрын
I invested $1000.00 in T-Bills with fidelity on December 25,2023, and a few days ago Jan.25 was the maturity date(one month).....They gave me back my $1000.00 with $6.40 cents as gains...I called in and talk to a Fidelity investor, and he told me the 5.34% was not a monthly gain, it was a yearly gain.....can someone tell me if I got scam or not? I think I was supposed to get around $54.00 gain😡😡😡
@royharper20034 ай бұрын
5.24% is the annual yield and you only invested for 1 month, you did not get scammed.
@konstantinestratidis3691 Жыл бұрын
Hi Jay. Great video! Are you concerned about the Government debt ceiling? Do you think investors are at risk with their T Bills or I Bonds if the debt ceiling is not raised? With a U.S. default, would investors lose their principal?
@JayFairbrother Жыл бұрын
I’m not concerned with it…yet. It comes up every few years when they want to play political games but always gets worked out in the end
@Cwho9ss Жыл бұрын
Great video, thank you for the information.
@ronkellam8184 Жыл бұрын
You might have mentioned that if you buy from TD and want to sell early, it is very difficult. As I understand it you must fill out a paper form, mail it to the Treasury, wait for their response which can take up to 13 weeks before approva;l. If you buy from a broker, they can sell your T-bill on the secondary market if they can find a buyer. The financial situation might have changed to the extent that no one will buy your bill because there are more attractive opportunities.
@JayFairbrother Жыл бұрын
Yeah that's why I mentioned if you weren't going to hold till maturity you'd want to buy through your stock brokerage, not treasury direct
@MyDyerMaker3 ай бұрын
I can make more interest in a money mkt. Unless I was retired and rates were low I wouldn't consider treasury bonds.
@ElsaAndAnnie Жыл бұрын
Great and informative video. Thanks for posting.
@hayden17819 ай бұрын
well explained
@BrendaAsonglefac3 ай бұрын
So good but I need the examples of Treasury bill please
@phillyboylaboy11 ай бұрын
Tbills will be better than cd if bought inside a brokerage account for the no state or local tax. Will be doing a ladder for bucket 2. Just subscribed. Ty for a clear explanation. 😊
@SeismicSales3 күн бұрын
You mean no State Tax?
@hannasumner31335 ай бұрын
It wasn't quite this simple. I got confused on how to choose the one I wanted with the amount of interest I wanted. Please help!
@royharper20034 ай бұрын
where are you trying to buy them from? you should be able to see the different interest rates and time period offerred. pick the one with the highest rate.
@robertrumfelt7843Ай бұрын
Would have been nice to cover the basics of why the government issues them in the first place. Otherwise was very helpful.
@cherylmares31597 күн бұрын
No compounding with Tbills and notes.
@lazykitten43569 ай бұрын
you did not explain how high yield savings account and treasure bill compound. I think they compound differently. The interest rate might be low for hysa but after compounding, the rate might be higher than treasure bill
@Iris-CreativePro Жыл бұрын
Would have been great to hear how withholding is calculated.
@DmoBrando Жыл бұрын
Very informative I appreciate the breakdown! Made understanding not only T-Bills easier but the alternatives as well
@hownwen Жыл бұрын
Just what I was looking for. I have a Treasury account for an I bond but I've been hesitant to buy t- bills because I'm not schooled in them. I was thinking I had to go the auction route but it seems that's just a more advanced way to buy them....
@UpRiverRafting11 ай бұрын
@JayFairbrother How do you buy t-bills from your stock brokerage for free?? Until I just saw your video, I thought ETFs were how you bought t-bills in your retirement accounts.... Loved the video. Thanks
@terence6664 Жыл бұрын
Hi Jay, great explanation on T Bills. I have a question, can a person purchase multiple T Bills at once? For example, two separate 4 week treasury bonds at once?
@JayFairbrother Жыл бұрын
You have to do it through two separate transactions, but yes, you can hold as many different issue dates of 4 week tbills as they have available whenever you're in treasury direct
@terence6664 Жыл бұрын
@@JayFairbrother Perfect, thanks Jay. Loving your content.
@troyyanda68965 сағат бұрын
Are you saying, if I buy $10k in 30 day t-bills I will yield $500 at the end of the 30 day period on a 5% bill?
@evumies Жыл бұрын
Hey Jay! Great video. Thanks for the info. I think that your videos would be even better if you had better audio. I'm not sure what type of microphone you're using, but getting something like a Blue Yeti microphone would make a huge difference and add IMMENSELY to the viewing experience! It seems like you're using a lot of voice isolation and it's bringing down the quality. I think you can do better. Thanks again for helping us understand T-bills!
@JayFairbrother Жыл бұрын
Thanks, yeah...I don't think it's the mic...I have some compression and EQ on the audio...still a beginner and learning when it comes to sound editing!
@smithraymond0902911 ай бұрын
If I can keep the state of California's greasy paws off my investment gains, I'm all for it.
@berendlansink68716 ай бұрын
Where does the return t bond come from, where is the return created? Cash is created out of nothing, T bonds are sold, Taxpayers pay the interest?
@JayFairbrother6 ай бұрын
Yes its US gov't debt.
@stanlee6436 Жыл бұрын
How is T Bill compare to money market fund? Most people park their money in market fund too?
@JayFairbrother Жыл бұрын
Tbill will usually have a higher rate than a money market fund, but a money market fund will keep your cash more liquid than a tbill.
@JustAddingMy2Cents3 ай бұрын
Very informative. If anyone is able to answer this dumb question - Why do Tbills have a higher interest rate than Bonds when they are held for a shorter period of time? It's a bit counterintuitive to me. Thank you in advance!
@camaranpayne5355 Жыл бұрын
Thank you Public
@stayfly-bb4po Жыл бұрын
Thank you
@SkinnyPe Жыл бұрын
Treasury Direct > what happens EXACTLY when you pull your investment hlf way through the maturity date. Theres no way of tracking to see if your gaining higher i% during that moment, Theres no penalty? ... can you explain it betteer? Why and When?
@user-tk7zn6pc5x18 күн бұрын
what is 'eye' bond? (caption says eye bond at 0:43
@MrJ1ufo10 ай бұрын
Hi Jay, Great video! Quick question, why would i invest in a 8 or 12 week T bill if a 4 week T bill pays about the same interest rate. If i have 50k to invest does it make a big difference in the return?
@JayFairbrother10 ай бұрын
If interest rates were to fall, you'd lock in the higher rate for a longer period on your money with the 8 or 12 week.
@rombsix Жыл бұрын
What happens to T-bills we're holding to maturity if the US government defaults on its debt?
@jennien6091 Жыл бұрын
What a great video!!! I have a question, if the bank offers for liquidity management investment with 5% rate (basically bonds, I believe) and treasury yield bond for short term 1-3 yrs for 5-6%( I'm not sure if it is the same thing as T-bills), would you go for both or if one is better than the other like lowest risks, or any recommendations that you can share as an advice for a newbie that about entering to the market? Thank you!!🙂
@eugenedd Жыл бұрын
Are T-bills safer than, lets say, parking your money at Fidelity money market ? Pros? Cons? No tax ?
@JayFairbrother Жыл бұрын
They’re both extremely safe, pros to Tbills are likely a slightly higher return and no state/local taxes…cons are they’re not as liquid as a MM acct
@mikos19866 күн бұрын
So if I invest 50k to t bills, in fidelity ? What am I going to get in a month in a year? Can someone explain me ?
@mauricecola94432 ай бұрын
I'm new to the concept entirely. What would be the benefit at this current rate to invest longer than in 4 week bills? Isn't that 5% a month ?
@JayFairbrother2 ай бұрын
The interest rates are annual rates. The benefit to longer tbills would be if you think the rate will drop, you'd have the higher rate locked in for longer
@Melanie-gu4vu Жыл бұрын
Thanks for the video! Very concise! How do I find out if Treasury Securities bought on secondary market has capital gains (not the interest paid by Treasury) which is subject to State tax.
@jeanah6859 ай бұрын
If they just subtract the interest from the money you invested and you're just getting back what you paid in, why bother?
@JayFairbrother9 ай бұрын
You buy at a discount. So depending on the interest rate at the time you'd purchase for something like $975 and receive $1000 when the Tbill matures
@cjngeh Жыл бұрын
Thanks for the content! I'm still trying to figure out how the interest rates work for T-bill. I see on the announcement site, there is High Rate and Investment rate. What are the difference? They range around 4.5-5%. However, I recently bought a T-bill but I think my discounted rate when I calculated, it is only 1.67% interest. Is it because the rates are for annually? It was for 17 weeks and if i calculate 1.67x3, that would be 5%.
@JayFairbrother Жыл бұрын
high rate is calculated on a 360 day term, investment rate is the annualized rate (idk why they give two different ones). The stated interest rate is annualized though, so yes you're earning 17 weeks worth of an annual interest rate.
@gmaureen9 ай бұрын
My bank saving account is paying 4.25% monthly so how are T-bills worth my time/money? What am I missing here?
@lizakh618111 ай бұрын
Ah the interest rate on the website is for annual not for duration.
@Str8UpFax Жыл бұрын
One thing I don't understand though, is why 1 month APY like 5.5% but 1 year like 4.5%? Why wouldn't I just keep buying 1 month instead of locking my money away longer for less return
@JayFairbrother Жыл бұрын
Longer dates usually pay higher rates but we’re in a weird interest rate situation right bow
@brandonminiman Жыл бұрын
great info
@DynastyJr Жыл бұрын
I bought t bills and the interest rate says 5.010% but the price i paid per t bill is $99.61
@sportshulk8109 Жыл бұрын
thanks
@joesmith94211 ай бұрын
I have been looking at a lot of video and have not yet found the answer to the following question, "Why are tbills sold at a discount to par rather than being sold with an associated interest rate?". I get that the result is the same, but why is it done this way for these securities?
@heathsanders722611 ай бұрын
No mention of 2yr notes or 10-year notes? Am I missing something.
@finance2873 Жыл бұрын
Dai you are looking like Adam Sandler
@mattw785 Жыл бұрын
Great vid!
@JayFairbrother Жыл бұрын
I appreciate it! Thanks for watching!
@mattw785 Жыл бұрын
@@JayFairbrother I came across i-bonds about 2015. Bought a bond and converted many EE bonds. Would you still recommend EE bonds for long term?
@JayFairbrother Жыл бұрын
@@mattw785 I'm not a big fan of EE bonds, I just think there's so many better options that accomplish the same goals
@mattw785 Жыл бұрын
@@JayFairbrother yah.. im convertng the ones i got..
@seanorourke847011 ай бұрын
So a month t bill doesn't pay out monthly? What's the point in buying anything less than a yearly then?
@maxplank4083 Жыл бұрын
PERFECT......!!
@shadowx0897 ай бұрын
Now if only it was federally tax exempt also...happy days.
@adityahpatel Жыл бұрын
$100 on $95 = 5.3% return not 5%, right? Secondly, T-bill at 5% means purchase price = $95.23 not $95. Please confirm
@JayFairbrother Жыл бұрын
Yeah I screwed up the math, but the point is still correct
@JohnJohn-nt9mf16 күн бұрын
can i sell tbills upon maturity? will it be an automatic sell?
@neboat Жыл бұрын
When the t-bill matures, does it sell automatically on its own or do you need to sell it once it matures?
@JayFairbrother Жыл бұрын
You don’t need to do anything when it matures. The money will automatically be deposited back right into your account
@rudyyarbrough512210 ай бұрын
I am having a hard time understanding why a person would buy a 52-week TB vs a 4-week TB at the same rate. If I can get the 5% in 4 weeks, why would I want to wait a year for the same payout?
@vKingLouie8 ай бұрын
Thats what I was thinking but I think the interest rate is a yearly interest rate so 4 week you wouldn’t earn 5% you would earn .41%. (5% divided by 12 months)
@legopadawanlearner83905 ай бұрын
10MM T Bill investment? Challenge accepted.
@tellwilliams449310 ай бұрын
What happens if I buy a one month T-bill and the interest rate goes down are my profits bigger
@AnyssaYeje-yi7sx28 күн бұрын
Can someone help me ? How is the return calculated ? If i buy a 4 week bill for 1000 at 5.33 rate then what is the actual return ?
@CraigJS9119 күн бұрын
the return after one month would be about $4.17 as 5% is the annual rate, not the monthly rate.
@scrapking774 ай бұрын
T bills are a perfect for short term investment for the extra cash you don't need month over month. Kepping it in the safe, with inflation eating the value away, is pointless. I'll take the 3-4% on a 4 week T-bill any day. If i don't need the cash at maturity, i roll it back over. I put my monthly auto payment in T-bills for the life of the auto loan. Why would i let that money rot in a savings account when there is an easy to use, short term way to claw back some dollars being eaten by inflation? For sure T-bills aren't a long term money maker but they do provide a short term money making option without much risk.
@timrosandick491 Жыл бұрын
Great job. The other detail I learned about the hard way was when did I have to have the $$$ in my linked account for the draw from Treasury...that's the issue date...why significant?-- keep my money in my high-yield account as long as possible and not transfer too soon....do I have this right?
@JayFairbrother Жыл бұрын
I'm pretty sure the money comes out of your account on the issue date, but to be honest I've never watched it that closely. I wouldn't risk overdrawing an account just to earn another day or two of interest in a high yield account if that's not where the Tbill $$ will be drawn from though
@adolphwhitejr.4416 Жыл бұрын
Even if the government doesn’t collapse, what about a hyper inflationary event. wouldn’t something like precious metals, be a good hedge against the inflationary risk associated with T-bills?
@JayFairbrother Жыл бұрын
Maybe? I'm generally not a fan of investing in precious metals because they're quite volatile and unpredictable. I'm also not worried about hyper inflation, I think we've already seen the worst of the inflation we're going to experience for the near future