Will I Regret Buying So Many T-Bills?

Рет қаралды 61,465

Күн бұрын

T-Bills are yielding over 5%, but will investing in them come back to haunt me? Let's analyze the pros and cons of buying T-Bills in the current market.
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Пікірлер: 166

@JayFairbrother Жыл бұрын

My Strategy For Buying T-Bills in 2024! kzfaq.info/get/bejne/jMhpZcqJlbTHk6s.html

@daj4740 Жыл бұрын

I agree. Buying short term T bills on a regular basis right now. No regrets!!! Will continue! Love your channel.

@JayFairbrother Жыл бұрын

Keep it up! Thanks for watching!

@MichaelJosephJr934 3 ай бұрын

I'm in an industry where I have a birds eye view of future economics. I've been saying since the last rate increase that they won't be lowering them till 2025. Inflation is still jacked up. I wouldn't be surprised if we only see one rate decrease in 2025.

@davidcooper7339 6 ай бұрын

You're doing a good job of educating and stimulating thought. Thank you!

@JayFairbrother 6 ай бұрын

Thank you, I really appreciate that!

@hrhsophiathefirst4060 Жыл бұрын

Oh man I feel so seen! This has been my exact though process recently as to what to do with my "emergency funds" that will never see the market! I have I-bonds, HYS and now 13 week T-bills and I am comfortable with that spread. The taxes are also a key factor for me living in NJ and working in NY so glad that is validated!

@JayFairbrother Жыл бұрын

I still have to force myself to stick to tbills, Ibonds and even my HYSA sometimes. I always want to throw every extra penny I have into the stock market, so I have to force myself to stay safer and more conservative with money I might need sooner

@ddenuci 10 ай бұрын

@wickedsnipes308_ High Yield Savings account.

@aspreedacore 5 ай бұрын

@wickedsnipes308_ high yield savings account, its basically a normal bank savings account but with much better interest rate, there is also something called money market account which basically is a high yield savings account and checking account at the same time wish I known that sooner...

@PabloChicano 4 ай бұрын

I’m heavily into T-BILLS & 2year Notes. I live in California so am taking advantage of the tax situation!

@dashphonemail Жыл бұрын

Keeping your emergency fund in tbills seems smart. I started taking out 18 month 0% apr credit cards, using them to pay living expenses, groceries, etc., and instead of paying them off monthly like I would normally, I buy tbills to earn a little interest before the 0% credit card rate expires and I pay it off. Not gonna get rich doing this, but no reason to leave money on the table! I feel like Speedy Gonzalez taking the bits of cheese from the mousetraps the banks and credit card companies set out for me

@mlhm5 Жыл бұрын

there is no safer place to put your money and you do not have to pay state or local taxes. If you need $$ now, borrow against your treasuries.

@surfmotor Жыл бұрын

I bought my first $500 t-bill a few months ago on public. Only use it for t-bills. I dont make a lot of money but i make sure to split my investments three ways. 401k, roth ira, regular stock account which i only buy strategic dividend stocks. I will add t-bills to my long term strategy.

@SilverHeist Жыл бұрын

For a savings use of T Bills, sounds like you are on right track. A simple approach would be always hold to maturity and keep 3 equal sized 13 week t bills laddered (or staggered). Basically every month one of them pays out, you can roll it into a 13 week t bill again. Or walk away with your cash. You can get to a portion of your emergency savings every 30 days or let it ride.

@JayFairbrother Жыл бұрын

Great minds think alike 😉 kzfaq.info/get/bejne/nsmGqZaHr53Mcac.html

@criscarter5537 Жыл бұрын

I got 500$ i want to use for t-bills where do i start

@JayFairbrother Жыл бұрын

@@criscarter5537 This is a good place to start if I do say so myself... kzfaq.info/get/bejne/kLOIZcuhxNS8mYE.html

@CraigandJoan 3 ай бұрын

Hindsight is always clear and you will always find better results in something if only....

@Nikola83ify 2 ай бұрын

I have been keaping my money in t-bills and selling puts at the same time on the prices I would really like to own stocks. That way I am using my money twice and it works fine to me. You should not be compering t bills with stocks because those are apples and oranges. Compare them with the difference between at the money calls and puts on the best stocks you can find.

@JBoy340a Жыл бұрын

State tax exemption is a reason for me to buy t bills.

@k.6160 Жыл бұрын

You addressed the exact question that was in my mind!😀👍 . Thanks for the video.

@RIGHTNOW108 Жыл бұрын

Great video. Agree with every point. I've laddered T Bills through Treasury Direct and short-term 5.12% CDs through my credit union. And will continue to do so until rates plateau. I live in Florida, so no state income tax. 👍

@irenmolnar221 Жыл бұрын

that;s great but in California T bill is better!!!

@CDaeda 11 ай бұрын

Stock market is not very predictable at the moment.

@staleydu1 Жыл бұрын

I have a fair amount in t bills right now. And in the back of my mind lurks this possibility of default. It’s never happened until it happens.

@JayFairbrother Жыл бұрын

It's not something I'd totally ignore, but I'm not losing sleep over it....yet. Tbills are also short enough duration that we should be able to get our money out and change course if that looked like it was inevitable.

@dashphonemail Жыл бұрын

Not gonna happen. US owns the printing press, we don't default unless we consciously decide to, which we won't. Debt ceiling political debate is 100% pure political theater and nonsense. The folks who own both political parties wouldn't be so stupid as to throw away their wealth and power by choosing to default for absolutely no reason. The purchasing power of the dollar going to 0 is a remote, but actually real, possibility. Default isn't.

@TheBadGuy69 10 ай бұрын

@@JayFairbrotherworst treasury auction in decades yesterday. Be warned

@eggsandtoast741 8 ай бұрын

The strategy I used was to hold extra cash in 5% High yield savings until inflation seemed to have normalized, then I put all that savings into VGLT. My though was, the fund was paying out 5%, and is currently way down from the rise in rates. As the rates come back down, the dividend rate will decrease, but the price will increase. Stays liquid, earning more than inflation, and in case of economic slowdown will massively out perform stocks and be my gunpowder while stocks are on sale.

@pattiel1108 Жыл бұрын

I'm doing the same thing. Moving my savings out of high yield savings into t-bills. I am fully allocated in equities so t-bills currently are a good option for me. I try not to let fear dictate my decisions. If the govt goes belly up, we are all in deep doo-doo. Highly unlikely, I hope.

@JayFairbrother Жыл бұрын

That's my approach too, if the gov't defaults we'll have bigger problems to worry about than Tbills

@kawaiibutterflyeditstwo4672 11 ай бұрын

My banker said that in the history of the US, the Tbills and Bonds have never defaulted. And if they ever did, the government still has to pay you when they have the money available.

@jarc02 7 ай бұрын

I have been buying 3 month T-bills with my emergency fund only. I have a ladder where 1-5 T-bills mature/month. I also keep funds in HYSA's and money market funds.

@jacobtaylor7506 Жыл бұрын

Value investing, find them hidden gem. Research every company and see their history. I have a bit in bonds, but diversify in companies the plummeted hard but with strong financial. Also know customer sentiment.

@brittseverence7221 2 ай бұрын

T bills, cds, and municipal bonds work for me. Safe, predictable, and the bonds are tax free...which is like a higher rate on a taxable investment. I may get back into dividend stocks once this over priced market fully corrects.

@yonallb Жыл бұрын

My money in t-bills has a timeline for use that is hopefully less than five years. If it was longer, it would be in stocks. Different investments = different purposes.

@JayFairbrother Жыл бұрын

This is the way.

@danielprout8987 Жыл бұрын

My only regret is watch this for more than one minute. I cannot unsee this, help me.

@1niklasification Жыл бұрын

So now would be a great time to get some T-bills. Stock market less likely to continue its rocket upwards, and interest rates more likely to fall in the future.

@OurNewestMember Жыл бұрын

There are no "guarantees" in life or in investing. Our lifetimes may never see the US Treasury refuse to pay timely interest or principal, but that doesn't mean we are not subject to counterparty risk.

@lindekarr4715 Жыл бұрын

funny title 😂 happy for you

@virgilio1956 Жыл бұрын

never worry about water under the bridge, it's a useless exercise

@skoopqueen Жыл бұрын

No doubts, a good way of growing and saving your money is through investing ,you don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made.

@Alexedmartin. Жыл бұрын

I am in dire need of investment advice or tips. Last year, I hesitated and failed to take any action until the year concluded. However, this year, I am determined to try something new, as I am very receptive to various investment ideas.

@skoopqueen Жыл бұрын

Okay Martin, so generally speaking, investing calls for more knowledge. For this reason, it's crucial to have a strong support system (financial counselor) to lead you through, particularly while choosing assets. I work with Regina Louise Collaro, a registered wealth management company's partner investment advisor. For the record, it has been the best experience for my finances. You may have heard of her because of how well-known her services are. She helped me become financially solid through investment, and now I profit from her passive income strategies on a monthly basis.Therefore, I'll suggest that you choose a reliable investment advisor for yourself...

@Alexedmartin. Жыл бұрын

@@skoopqueenI value your recommendation Queen. It's challenging to locate a trustworthy person. I could really use your investment advisor after seeing how much money you've made through investing. If you don't mind revealing her information, that is

@skoopqueen Жыл бұрын

By looking for her name online, you can quickly uncover her information. She recently appeared on CNN and she is really simple to deal with no matter where you're located

@ugojazzy7812 Жыл бұрын

@skoopqueen You are correct, and I am only one of many who gained from working with Regina Louise Collaro. I had no reason to live when I lost my job due to COVID in 2020, and it will always be a memorable year in my life. Regina made it possible for me to live comfortably through passive income, thus I owe her my life. To be completely honest, I think she is an angel who was sent to help those who are struggling financially.

@cool2smooth Жыл бұрын

No state tax.

@JiveCinema Жыл бұрын

They always gloss over this fact. That the money grows tax-free and you only have to pay federal when you cash out. That's a plus. No yearly tax drag.

@mbb4302 11 ай бұрын

Savings banks are fluctuating quite a bit now a days, these banks are volitile.

@alphamale2363 Жыл бұрын

You may want to leave the text boxes on screen a little longer for us old folks. 🤠

@JayFairbrother Жыл бұрын

Will do. It’s hard to judge sometimes when I’m editing

@murph8857 Жыл бұрын

I’m all in on Tbills. Buying 13 week so as to not get left behind as interest rates rise. One possible risk though is sometime this summer, the government may actually default which theoretically could not only lose the interest, but the capitol. This has never happened before but thanks to the yahoos in congress this could happen. The debt ceiling has historically been lifted last minute but there are a small minority of republicans who insist they will not raise unless the Dems agree to lower spending. This circus is about to get painful for the WORLD economy. Fasten your seat belts boys and girls.

@JayFairbrother Жыл бұрын

This seems to be a fight every couple of years. I’m fairly confident neither side is dumb enough to actually push us into default

@piggsinablankie Жыл бұрын

This was exactly my thoughts about the congressional yahoos. Glad I'm not the only one. That's why all my T-Bills that I've been laddering every week since last September will be matured by May. If/when the debt ceiling is raised, I'll go back into T-Bills. Interest for everything has been stellar regardless. Between the T-Bills, I-Bonds, and HYSA's, I've been almost living off of interest the past few months. It's a wonderful thing.

@Jen-ur4ut Жыл бұрын

@@JayFairbrother It’s true this fight has come up often, but those other times the House was not controlled by people this dumb & who actively want to blow up the world because they believe in some insane conspiracy theory. We are now dealing with people who couldn’t pass a GED test & are isolationist morons. I wouldn’t put it past them to throw the world financial system into chaos. It’s what they thrive on. The other side isn’t going to cut social security & Medicare to appease them which is what they want. It’s not like they want to cut military spending. Not putting any more $$ into gov’t instruments until there’s an outcome. Good luck.

@thetapheonix Жыл бұрын

T-bill rate are slaughtering the stock market right now, stock are going down down down. Looks like a great choice.

@pneuma1387 Жыл бұрын

It’s against the 14th amendment for the government to default on its debts

@countdigi 10 ай бұрын

Whenever you feel like you made a mistake buying too many t-bills, just imagine you bought a load of 30y bonds 2 years ago ;-)

@pmmahone1 Жыл бұрын

If you really need a rate of return higher than 5% then you need to consider stocks. If you don't, why need keep it in a safe investment? Why risk it? How much money is enough?

@rodrain2 Жыл бұрын

If you ladder the t-bills, you don’t have to worry about having all of it locked up

@JayFairbrother Жыл бұрын

Yep, you should watch my video on that too 😉

@irenmolnar221 Жыл бұрын

I think is better than bank CD!!! Banks doing the same thing buying treasury and giving less on CD!!!

@SillyHamsterz Жыл бұрын

Buffalonian? first the HSBC account, then I noticed the buffalo in the back lol nice to see someone local

@JayFairbrother Жыл бұрын

Yep, I am!

@slovokia Жыл бұрын

You do NOT lock up your money when you buy US treasury securities and hold them at a broker. You can sell them at any time and have access to your money within one business day. They are among the most liquid securities out there. Granted if you sell them before maturity your total return may be below the interest rate when you purchased the treasury bill, note or bond. However that risk is very low for treasury bills that are 4 week, 8 week and 13 weeks in maturity.

@JayFairbrother Жыл бұрын

Yeah I explained that in another video if I didn’t mention it in this one. I was mainly talking about Treasury Direct here which you do not want to try and sell out early on

@MrDesoto1 Жыл бұрын

I am putting excess cash into buying Treasuries weekly on the short end of the curve. But I have moved up the curve to 17 week and 26 week Tbills.

@JayFairbrother Жыл бұрын

I'm still sticking between 4 and 13 weeks myself....for now....

@orlyii 11 ай бұрын

This is whatvi do pay $200k cash fot my apt. That will rent for $2500 per month but i ppay $800 maint and tax so i save $20400/20000=0.102% an .05 from tbills =.0152/2=.076% per year

@brijeshkukreja7411 Жыл бұрын

you don't have to pay any taxes if you buy T bills in a roth IRA - max contribution of $7500 over 50 old. I bought Tbills in roth ira/ira for all my family earning members and myself

@JayFairbrother Жыл бұрын

Thats true, but for me I'm still a ways off from using Roth IRA money so it's better for me to keep that more aggressively invested to try an accumulate as much as possible over the next couple decades.

@tonyg3389 Ай бұрын

secondary market t-bills same like action t bills on taxes ?

@ValMartinIreland Жыл бұрын

Are you counting inflation? The US Fed is pulling in all the cash depriving business if it.

@djryan8944 Жыл бұрын

Buying a 13w every week this year plus all my bonus money will be going into them. I was paying down my 2.7% mortgage faster but realized I might as well do T bills instead.

@JayFairbrother Жыл бұрын

At these rates Tbills could pay your mortgage!

@arentibbs799 Жыл бұрын

As long as you have an emergency expense that can wait a year for the T-Bill to mature.

@JayFairbrother Жыл бұрын

Yep, that's gonna be the issue when I want to go out to 1 year. For now I'm sticking to the short durations of between 4 and 13 weeks so it's not currently a factor

@sagig72 Жыл бұрын

Good video. I love your videos Jay. I actually am creating a bond ladder, simply buying more TBills and TNotes every month and so ... they're maturing at different times and I can then slowly take the profits and roll it either to another tbill (if rates go higher) or go to the stock market. This way, not only I'm getting good interest, but also I'm not going to "FOMO" or "YOLO" into the stock market so it's a bit "protecting myself from myself" too. I also intend to hold the TBill till maturity so I don't care if their prices fall.

@JayFairbrother Жыл бұрын

I'm doing something very similar, I have to do a lot of protecting myself from myself. Because my natural urge is to put every last penny I can into the stock market, so I have to force myself to keep some "safe" money elsewhere for shorter term needs

@sagig72 Жыл бұрын

@@JayFairbrother EXACTLY. I actually became quite fond of investing in bonds. It's a very good yield, perhaps slightly lower than inflation but still good yield. The protecting-myself-from-myself is really key. I've burned enough with the stock market to realize I must do that. I feel this bond laddering is one technical to guarantee I won't fomo and instead I'll dollar cost average into the stock market, also to keep my allocation to stocks in check. Thanks for taking the time to reply to me Jay.

@Thisishard2333 4 ай бұрын

I have a million in tbills.No interest in stocks anymore . Don’t care if they go up or down. Cant take it with you.

@briaf3370 Жыл бұрын

So what's the better investment now that you are frightened not to be part of!

@imdoc7872 Жыл бұрын

Its worth buying t bills if banks go under. You dont want to park money in a bank account

@JayFairbrother Жыл бұрын

I wouldn't worry too much about banks going under. But yes, holding T-Bills would be a good way to diversify your risk from something like that happening

@michaelperkins3003 Жыл бұрын

What's next, you questioning about the toothpaste change that you made.?

@jimsmith8324 Жыл бұрын

yes. I would rather buy 3 mo CDs and roll them. Give up a few bps for more control.

@JayFairbrother Жыл бұрын

No more control with a 3 month CD than a 17 week Tbill

@mtb3553 Жыл бұрын

Does it pay to buy 2 yr notes? And how do you calculate interest you receive? How does that work

@mattmatt245 Жыл бұрын

Don't buy anything that matures after mid June or you might never see your money again.

@thethrill2877 7 ай бұрын

Hello there can you explain how 5 years bonds payout.

@gargamel3966 Жыл бұрын

Any investment where you can’t wait 13 weeks isn’t an investment.

@JayFairbrother Жыл бұрын

hard to disagree with that!

@dnah02 Жыл бұрын

It's a flip

@markniefer8420 Жыл бұрын

Good to hear from a fellow Buffalonian. The New York State Taxes is what I am also looking at. Also, if the banks go bankrupt, and there is a run on the banks, and the banks lock their doors, T-Bills might be more accessible. How do I get my money out of a T-Bill at maturity? Do I get a paper certificate that I can redeem at any bank as guaranteed funds like a cashiers check. Do I establish an account on the US Treasury website? Please explain how this works.

@JayFairbrother Жыл бұрын

Easiest way is to create an account on TreasuryDirect dot gov. and buy them through there. They're all electronically issued, no paper copies anymore. When they mature the money gets automatically deposited back into the bank account you linked to make the purchase. It's all pretty easy and straight forward. Hope that helps, Go Bills!

@TheAndrewLopezFinancePodcast Жыл бұрын

Yea, I've been having a similar predicament of dumping some my EF into a 1-3 month T-Bill ETF such as BIL to try to milk the low-to-mid 4%+ yield on it. But because my exegeses are largely pretty low and in turn, don't have a huge emergency fund, I feel like I'm kind of debating over getting an extra like $50 tops throughout the year in interest over a high yield savings account

@JayFairbrother Жыл бұрын

Yeah, I'm cutting a real thin line on how little of an emergency fund I'm comfortable keeping in a HYSA right now lol

@Juan-tb2ww Жыл бұрын

I dont understsnd. If its an ETF cant you get your money out at any time?

@JayFairbrother Жыл бұрын

@@Juan-tb2ww of an ETF yes. I'm buying them directly though, not through an ETF.

@offhamsterwheel2789 Жыл бұрын

but if Govt Defaults when they can't raise Debt ceiling, Ibonds and T Bills are at risk?

@JayFairbrother Жыл бұрын

Likely, yes. But I'm still of the opinion they'll get something worked out before that point. Nothing drives compromise like a looming deadline!

@sagig72 Жыл бұрын

On top of my previous comment: you may want to make a video on the difference between buying an actual bond and buying a bond fund. With a bond fund/etf then if interests go higher than your fund's value declines, same true for a bond, but you can hold a bond to maturity and avoid having to sell. that's not really the case with an etf, there you will have to sell at some point and it may be at a loss. I think it's a major difference which is why I prefer to buy bolds directly and not invest in bond "bundles" or bond 'fund'. Does that make sense? am I missing something?

@JayFairbrother Жыл бұрын

I think I got to that in this video : kzfaq.info/get/bejne/btBnq5NesNa7gZc.html check it out if you haven't and let me know if that explains it well enough

@sagig72 Жыл бұрын

@@JayFairbrother GREAT! Thanks much. I just watched it, not sure how I missed that video, I'm watching pretty much all your videos. It is a helpful video, yet I do have a question about it. I entered my question in the comments for that video, I hope you can look at it and respond. Will TRULY appreciate it if you can reply to my question there. Thanks again.

@sagig72 Жыл бұрын

oh ... so strange, I don't see my comment/question made it to that other video. Do you see it there?

@JayFairbrother Жыл бұрын

No, I don't see a comment from you over there. Checked the spam folder and everything!

@sagig72 Жыл бұрын

@@JayFairbrother Yep, I noticed KZfaq is not publishing long comments. I commented there are, this time I broke my comment to two parts. I can see it there now, hopefully you can take a look. Thank you SO MUCH!

@kkru9384 Жыл бұрын

How do you feel now?

@TheNamche Жыл бұрын

If Fed changes course and opportunity cost becomes too much just sell your t-bills. Not much is more liquid than short term treasuries. Loss will be minimal unless rates absolutely fall off of a cliff (which would require a black swan event). Normal at your age I’d say ride out the equity markets but coming out of a black swan event and the massive demographic changes going on globally along w/ threats of war, famine, etc I think you’d be smart to diversify into t-bills and perhaps even a little at the long end. And of course any money you need in the next 3 years should absolutely be in 4 week to 17 week t-bills, taking advantage of auto roll. No need for that 3 year horizon to be negated by equity market volatility And for god sake don’t touch anything longer than 17 week t-bills. Rates look like the will continue to rise or pause much more than the likelihood of a steep drop. The flexibility of shorter durations in a rising rate environment is well worth the marginally lower rate

@ceasergert2780 Жыл бұрын

CD paying 5.35% at Schwab

@j.corona8118 Жыл бұрын

The government has endangered itself in order to bail out the market therefore I am also questioning it my self. I bought a CEF that buys T bonds when the price had dropped thinking that it was a good buy on the drop with the government having unlimited taxing power to collect. T bonds now are in harms way of a banking bailout.

@invisiblesun6595 16 күн бұрын

The government is NOT bailing out the market. Maybe they did in 2008 but Powell told the market in no uncertain terms it is NOT the Federal Reserve's job to make them comfortable. This whole recent fiasco with the market is proof positive of that. Basically Japan was taking out loans in Yen when it was struggling against the dollar. The Yen bulked up and now all those people have to pay back those loans, hence the sell off. Wall Street ran to daddy Powell and screamed for an emergency rate cut. Didn't happen. Nor will it for them.

@briaf3370 Жыл бұрын

Proper asset allocation with tbills a part of this strategy is appropriate. Stop obsessing. Next topic please.

@JayFairbrother Жыл бұрын

Yet this is the topic you’re watching 🤔🤷🏼‍♂️

@LouieLouie1218 10 ай бұрын

Why lock up dollars in bills even for a month when vanguard vmfxx is paying 5.29% I am gradually starting to go long in treasury bonds

@TomTom-bh2wf 2 ай бұрын

Because with T bills there is no state and local taxes.

@LouieLouie1218 2 ай бұрын

@@TomTom-bh2wf true if you live in a state with a state income tax and moot if in a non taxable account

@TomTom-bh2wf 2 ай бұрын

@@LouieLouie1218 Yes. You are correct.

@andrewmoland7180 Жыл бұрын

I have my extra money in governments treasury mutual funds in my Charles Schwab account so I can take it out right away when there’s a opportunity.

@joelh5445 8 ай бұрын

I have been laddering t-bills since early 2023. Do you still say that you don't regret buying t-bills given that the QQQ went from 268 to 386 YTD?

@JayFairbrother 8 ай бұрын

I don't regret buying Tbills (still). The money I'm putting towards Tbills was never money that I was going to put in the stock market anyways. It's more of a secondary emergency fund for me. I always invest in the stock market too, just that money is money I'm sure I won't need to touch for 3-5 years or more.

@joelh5445 8 ай бұрын

@@JayFairbrother thank you

@kevcorb2 Жыл бұрын

Jay, Recently found your videos as I've been researching tbills. I'm suffering from paralysis analysis. Is there an easy way to calculate the upside of moving cash from HYSA to Tbills? 5% is great, but bc that's Annual the actual money is likely to be less than many might expect especially for 8 week or 13 weeks. If I can afford to buy 4 tbills (laddering) at say $7k each is the process even worth it remembering this is cash replacement so if I need it will have to wait for a maturity date. HYSA are at 3.5% APR so the actual delta here is 1.5% which per quarter (13 week) is only a .375 gap. Is that how the plus side is calculated? Feels like the right thing to do, but at what amount does added maintenance and work become worth it/not?

@JayFairbrother Жыл бұрын

I wouldn't over analyze it. It's not a decision that's going to make or break your finances either way. It's just nice to earn some extra interest on money that was going to be held as cash anyway. Plus they're such short duration that even if you decide it was a mistake, you'll get your money out of them in a month or two anyway

@colemoye8136 Жыл бұрын

Hi Jay, great video as always! I'm curious as to why you would rather buy T-bills than put the money into Fidelity's Government Money Market Fund (SPAXX), which is yielding 4.11% currently? It seems like a lot of hassle for an extra 1%. But then again, I'm a relatively new investor, so purchasing T-bills is probably much less of a hassle for you than it is for me. Interested to hear your thoughts!

@JayFairbrother Жыл бұрын

They're easy to buy (check out the video linked in the pinned comment to this video if you dont know how), and earning the extra 1% is worth it to me because I can go a few months without needing that money even if I had to tap into my emergency fund

@bradlee2594 Жыл бұрын

Keep in mind you can purchase T-Bills with no fees, however SPAXX has an expense ratio of .42%. Add in the savings from not having to pay State or Local taxes on the earnings of the T-Bills, and the comparison becomes even more different. When investing (or simply preserving) relatively small amounts, these differences may not matter much or be worth it, but imagine you were managing a lot of money. Some day, you may be managing a lot of money - so developing good practices today will pay off in the long run. Regardless, do what is comfortable and reasonable for you (not someone else).

@colemoye8136 Жыл бұрын

@@bradlee2594 Excellent point. I hadn't considered the expense ratio and taxes. Thank you!

@yungmi1214 Жыл бұрын

1% is a lot

@jimmy6886 Жыл бұрын

Can't I just put 30,000 in a 4-week T-bill and do it every 4 weeks instead of doing a ladder of, say.. 10,000 4-week and 10,000 8-week, and 10,000 13-week?

@JayFairbrother Жыл бұрын

You can, yes

@jimmy6886 Жыл бұрын

@@JayFairbrother Thank you for the fast reply.

@phillyboylaboy 11 ай бұрын

Better than any ark etf🤬

@afterdark6822 Жыл бұрын

T-bills don't pay enough. IMO.

@benvastine257 Жыл бұрын

Can the Fed roll over a T-Bill and not pay you back when due? Like if I buy a 6 mo T-Bill, is the Fed obligated to pay me at 6 months?

@JayFairbrother Жыл бұрын

No, once the 6months is up the money you put in + interest will be deposited right back into the account it came from unless you tell it to auto-renew

@dnah02 Жыл бұрын

I just bought my first T bill and I out in 6100 to start some cash flow for my house savings

@zacharywissinger3996 Жыл бұрын

I am considering getting some T-Bills. The way I see it playing out is eventually the new bills rates will eventually drop making the older higher rates more valuable. Less people will want to newer ones leaving the government hard up for cash, stifling the economy, drop the stock market. Sell T-bills if not matured and get into stocks. A lot of things could go wrong, this is just my theory.

@JayFairbrother Жыл бұрын

Rates getting lower would be better for stocks because companies could borrow at lower rates (see: much of the past few decades).

@zacharywissinger3996 Жыл бұрын

@@JayFairbrother Someone would have to be willing and able to lend the companies money. Those with good reserves might be offered fair rates, but those that need it might get gauged if banks and investors get greedy. I bet on them being greedy. Yes it will eventually correct but I think there will be a lag to capitalize on (timing the pivot). Btw I am a WSB degen, so I could be completely wrong.

@madhatter9001 11 ай бұрын

Nope, not going to happen.

@jdavis6650 Жыл бұрын

Uh, I'm betting on "Yeah I think so." If you have figured out when to turn liquid assets into illiquid assets you shouldn't be wasting time creating KZfaq content. But heh, I wish you luck.

@hampton162 Жыл бұрын

Are you concerned about the Debt Ceiling issue causing a potential default?

@JayFairbrother Жыл бұрын

Not yet. It seems to come up as a debate every few years and always gets worked out. The current congress being more extreme than past ones is worrying, but I don't see how either side can claim it as a win if they pushed us that far. I trust they'll work it out

@bradlee2594 Жыл бұрын

@@JayFairbrother - I think you have previously suggested T-Bills would become worthless if the government defaulted. Is that literally the case? I think the world would explode if the government did not come back with some kind of restitution if there was an actual default. Any thoughts?

@JayFairbrother Жыл бұрын

@@bradlee2594 If the government were to default, yes, Tbills would be affected. I'm not sure which treasuries would be hit first or hardest in that scenario, but like I said I'm not super worried about it right now. I think there's just a bunch of political posturing going on and someone will bend before theres a true default.

@bradlee2594 Жыл бұрын

@@JayFairbrother - "Affected" and "worthless" may also have different meanings. I agree there will be a resolution, however just to wrap my head around any/all possibilities, I ponder the what if - and then what if?

@JayFairbrother Жыл бұрын

@@bradlee2594 Yeah, I don't really know. My instinct is to say T-Bills should be relatively safe still because they're so short term that they'll mature before s**t potentially hits the fan. And no new ones can/will be issued once a default happens.

@gatewaypartners8018 Жыл бұрын

You must be laughing now

@TheBadGuy69 10 ай бұрын

This video didn’t age well. The rate ur getting not nearly keeping in tandem with massive inflation which the cpi report is lying to the American public. Food prices in Costco nearly double on average compared to a year ago. Your money is best put to use in shorting the us stock market

@martyc2637 7 ай бұрын

Costco food prices have not nearly doubled. Do not exaggerate.

@ILovePancakes24 6 ай бұрын

They always juice the CPI in order to extract wealth from everyone. They get it via hook (taxes fees) or crook (inflation)

@g.t.richardson6311 5 ай бұрын

This comment didn’t age well either, if you’d have shorted the broad market over past 4 months you’d have had a lot of margin calls.