Do any of you invest in Treasury Bills?

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foolsgold

Big Eyed Bug
GIM2 Refugee
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I need an edumacation. Do all Treasury Bill need to be purchased through a broker?
 
I just watched this video and if understanding correctly interested earned is UN TAXABLE!!

 
Correction to my statement above. Treasury Bills are exempt from State and Local taxes but NOT Federal taxes.
 
Just as an example of what that organization is doing already to enjoin your "full faith and credit" see below.


And finally, the piece de resistance of Fed fuckery - for domestic (large and small) commercial banks, NSA (actual) flows were -$287.6 billion, while SA (magic) flows were +$102.5 billion!
 
They are non-taxable within an IRA, but you can buy short term CDs with the same or better rates too.

I-Savings Bonds are only paying 4.3% right now while 3-9 month CDs are 5%+. You can access many different CDs and bonds thru an E-Trade account. You can even trade them, but ladder short term and hold to maturity.
 
^^^^^ I don't expect to see any more 9% I bonds any time soon. Agree with nick about CDs.
 
You will really love the 50% bonds coming in the not too distant future I suspect.

Waiting to see if I'll get lucky with my bbbyq lottery ticket. A little less than 5.00 for 15 shares. Here's hoping....... 🍺
 
Waiting to see if I'll get lucky with my bbbyq lottery ticket. A little less than 5.00 for 15 shares. Here's hoping....... 🍺

We won't have to wait much longer. Stalking horse bid pushed back to June 8th. Should be done by the end of the month. One way or the other.
 
Those CDs are Federally insured to 250,000. However as the past S&L debacle showed getting you money isn't <redacted - see forum guidelines on epithets> walking up to the counter and getting cash. You have a claim and I wont go into the details.

Treasury's are as secure as the USA's ability to print money and have historically always been paid. They are considered the safest of investments and are easily obtained through Treasurydirect.gov with no brokerage fees. They have to be held to maturity or can be sold on the secondary market. I buy or reinvest every other week and consider them to be a cornerstone of my diversified investments.
Be careful with the I Bonds as they have different liquidation procedures.
I had a thing up about them at the old place
There are times when cash is king and treasuries are very nearly cash
 
Treasuries are secure, but in a rising interest rate environment will lose $ if you need to sell before maturity.
 
I had a thing up about them at the old place

You (and several others) had some pretty good stuff for investments / money.

 
Treasuries are secure, but in a rising interest rate environment will lose $ if you need to sell before maturity.
You are correct on that one. One alternative many have is bond ETFS or funds. On those investment vehicles the loss is immediate while holding the treasury to maturity assure one of getting the principle back but at the agreed upon rate when issued that could very well be below a current market rate in a rising rate environment as you point out. Bear in mind though treasuries can be bought with very short maturities in periods of rising rates. I personally do not have the ability to know what rates will be in the future and many simply buy a mixture of various maturities in order to "ladder" rates.
All in all though considering that the treasuries can be purchased for as little as $100 they should not be beyond the reach of the average person. My bank offers savings accounts at a cost of $3 per month for a $100 account that in my mind equates to what the heck. That's the world today though and it reminds me of the days when the S&Ls paid 5 1/2% on savings while treasuries paid much more. This caused considerable withdrawals from the S&Ls that, along with a few other things, led to their demise.
I know many are strictly PM investors but treasuries have a lot to offer and should be considered in a well diversified portfolio. Today's 30 day rate is 5% + (annualized) ...compare that to my banks charging for having a savings account
 
You are correct on that one. One alternative many have is bond ETFS or funds. On those investment vehicles the loss is immediate while holding the treasury to maturity assure one of getting the principle back but at the agreed upon rate when issued that could very well be below a current market rate in a rising rate environment as you point out. Bear in mind though treasuries can be bought with very short maturities in periods of rising rates. I personally do not have the ability to know what rates will be in the future and many simply buy a mixture of various maturities in order to "ladder" rates.
All in all though considering that the treasuries can be purchased for as little as $100 they should not be beyond the reach of the average person. My bank offers savings accounts at a cost of $3 per month for a $100 account that in my mind equates to what the heck. That's the world today though and it reminds me of the days when the S&Ls paid 5 1/2% on savings while treasuries paid much more. This caused considerable withdrawals from the S&Ls that, along with a few other things, led to their demise.
I know many are strictly PM investors but treasuries have a lot to offer and should be considered in a well diversified portfolio. Today's 30 day rate is 5% + (annualized) ...compare that to my banks charging for having a savings account

If you buy the Bond funds you can NOT hold them to maturity. So if rates go higher you will lose money. I would buy them direct and plan to hold them if you are buying into Treasuries.
 
I bought a 4 week and a 13 week bond, via treasury direct, to test the waters. The auctions are later this week and I expect the interest rates to be over 5%.

To reiterate the Bills are EXEMPT from State and Local taxes - https://www.treasurydirect.gov/forms/sec0011.pdf

Quote - "Like they say, taxes are a certainty, and it’s no different for marketable Treasury securities. But only Federal tax applies; your Treasury securities are exempt from state and local income taxes."
 
$9,868.05 was taken from my bank account on 6/8/2023 for 13 week bill.
$10,000 is to be returned on 9/7/2023, an increase of $131.95 or .05348%

And the $131.95 is ONLY subject to Federal income tax.
 
$9,868.05 was taken from my bank account on 6/8/2023 for 13 week bill.
$10,000 is to be returned on 9/7/2023, an increase of $131.95 or .05348%

And the $131.95 is ONLY subject to Federal income tax.

So basically a net gain of $100 or so while your money is tied up for 13 weeks. Seems like there are better ways to make money, but maybe my view is too myopic?
 
So basically a net gain of $100 or so while your money is tied up for 13 weeks. Seems like there are better ways to make money, but maybe my view is too myopic?

Not for me but I guess if you have a ton just sitting around and your pond is full it's ok. The US is damn near broke so the chances of you not getting that $10,000 back or (really) it's only gonna buy $5,000 worth of stuff when you do is just too high.
 
So basically a net gain of $100 or so while your money is tied up for 13 weeks. Seems like there are better ways to make money, but maybe my view is too myopic?
I am 70+ yo, if there are any risk free ways of earning more interest/money I am all ears.
 
$9,868.05 was taken from my bank account on 6/8/2023 for 13 week bill.
$10,000 is to be returned on 9/7/2023, an increase of $131.95 or .05348%

And the $131.95 is ONLY subject to Federal income tax.

I don't hate it as part of a diversified plan. I'm sure you have the metals covered and maybe still some RE and/or stocks. That 5.3% is annualized so you made about 1% each quarter.

I love how they promote is as Only subject to Federal tax. WAIT a minute. You are taking MOAR money from me because I was nice enough to fund your debts. Ya, totally fair.
 
I don't hate it as part of a diversified plan. I'm sure you have the metals covered and maybe still some RE and/or stocks. That 5.3% is annualized so you made about 1% each quarter.

I love how they promote is as Only subject to Federal tax. WAIT a minute. You are taking MOAR money from me because I was nice enough to fund your debts. Ya, totally fair.
I don't disagree with you. This is money that otherwise would be sitting in a checking or saving account for emergencies.
 
Bump..........

6% Agency Bonds Explained | Investing In Agency Bonds vs US Treasuries (What Are Agency Bonds)​

Jul 9, 2023


11:34

0:52 What are agency bonds & why are new issues paying up to 6%?
3:56 What questions should an investor ask before diving into agency bonds?
8:29 What would my agency bond strategy be if I were to add some to my portfolio right now?
 
In my opinion... Okay, this is my opinion...

When funds that are trustworthy (not scammy) offer you some percentage... They know that the market will be much worse. And your "investment" will profit them today and give them a profit somehow.

The system is set to take your money. One way or another. I suggest that you read the book I have posted many times before, "The Alpha Strategy". His points are (should be) obvious. Do or do not. Your choice. Enjoy your results.
 
In my opinion... Okay, this is my opinion...

When funds that are trustworthy (not scammy) offer you some percentage... They know that the market will be much worse. And your "investment" will profit them today and give them a profit somehow.

The system is set to take your money. One way or another. I suggest that you read the book I have posted many times before, "The Alpha Strategy". His points are (should be) obvious. Do or do not. Your choice. Enjoy your results.

For anyone interested - here's a link where you can read the book online for free.

 

Floating Rate Note Auctions On TreasuryDirect | What Are Floating Rate Notes (FRN)​

Jul 24, 2023


11:58

This week's floating rate note auction on TreasuryDirect - should I buy floating rate notes. That's a question that that many of you have asked us often.So what are floating rate notes? Why do we prefer T-Bill ladders over floating rate notes & who might consider buying the 2-year floating rate note at this week’s TreasuryDirect auction? Watch on & find out!

*Lotta links if you watch on youtube.
 

Where Are T-Bill Rates Going | Have They Peaked: The Almost Generational Opportunity In Fixed Income​

Jul 29, 2023


12:07

The Fed’s recent 25 bps rate hike - is this the peak or will T-Bill yields go up from here? The “almost” generational opportunity in fixed income - what do we mean by this? And are we still laddering T-Bills? Watch on & find out fixed income fans!

Channel: https://www.youtube.com/@DiamondNestEgg/videos

SOURCES
https://www.newyorkfed.org/markets/re...
https://www.federalreserve.gov/mediac...
https://oilprice.com/Latest-Energy-Ne...
https://fiscaldata.treasury.gov/ameri...
https://www.bls.gov/news.release/pdf/...
https://www.wsj.com/articles/federal-...
https://www.bloomberg.com/news/articl...
https://home.treasury.gov/news/press-...
https://fred.stlouisfed.org
 
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6.4% Federal Farm Credit Banks Agency Bonds | Who Are The Federal Farm Credit Banks?​

Aug 10, 2023


9:37

6.4% and 6.3% agency bonds from Federal Farm Credit Banks - that's what's available for purchase as a new issue on Fidelity at the time of this posting. I know the thumbnail says 6.25%, but it seems rates on some fixed income instruments are still moving up quickly these days!

Here's what I'm talking about in today's video:
1. Who are the Federal Farm Credit Banks & why do they issue agency bonds?
2. What safety, tax & other important factors should you consider before purchasing these agency bonds?

SOURCES
https://www.fidelity.com/
https://www.farmcreditfunding.com/ffc...
https://www.farmcreditfunding.com/ffc...
 
Not a "how to." Liked the article and thought it would fit in here.

Dear Quentin,

I’ll be inheriting about $100,000 very soon. It all depends on when probate is settled. I’ve never had this kind of money before, or access to this kind of money, so I know nothing about investing. I am only interested in zero risk. I saw a billboard for a bank that has a 13-month certificate of deposit for 5.5%.

Is that a good interest rate, or an average one?

I don’t even know what my savings account pays, since I usually have about $2,000 deposited in it, and based on that low amount, the interest is basically negligible. For that CD, I’d be perfectly happy to earn $5,000 a year on it, but are there more lucrative zero-risk options?

 
There is a strong correlation here as to why this person never had any money. " I am only interested in zero risk". It'll be gone quite quickly.
 
Cuban cigars up 300-500% in the last 3 years. Way better than I bonds. If the world turns to poop you can just smoke em and enjoy em.
 

T-Bill Ladder Update | Where Are Treasury Rates Going?​

Sep 10, 2023


9:07

How are Treasury rates trending? Where have we seen the biggest moves recently & are we still laddering T-Bills? That's what we're talking about in this month's T-Bill laddering update before inflation numbers are released this week & before another big Fed meeting at the end of this month!

REFERENCED VIDEOS⭐ Have T-Bill Yields Peaked: • Where Are T-Bill Rates Going | Have T...
 

How High Will Treasury Yields Go | Should I Buy Treasury Bonds Now​

Oct 5, 2023


16:59

The 10-year Treasury’s new highs, when we think rates will peak & when we’ll pick up longer-maturity bonds - plus who might want to consider going long now despite our thinking on peak rates 💡that's what we'll be talking about in today's video! Join our live member Q&A immediately after this video as we continue the conversations around "How high will Treasury yields go?" & the question of "Should I buy Treasury bonds now?" 👉 / @diamondnestegg
 
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