How to Build A T-bill Ladder (Step by Step) - And Why YOU Should!

Today we talk about Treasury Bills, what they are and how to build a ladder of them. We also do a step by step of how to build a t-bill ladder in different ways.

*DISCLAIMER*
-All of the content found in this video is for ENTERTAINMENT purposes only. We are NOT financial advisors and are not responsible for any losses in your personal investing experience.

[freeroamer]

Makes sense. Rates being what they currently are, I'm going with the 4 wk. So great to be doing something productive with my cash! 👍

[noydbwia]

I started a thing with the 4w back in April where I buy one every week and having it run through to the final maturity of DEC 24... I now have weekly multiple reinvestments occurring on the same Tuesdays that new ones are being issued. When I get the price difference refunds, I simply zap that over to a HYSA to collect more interest until there's a justifiable amount to withdraw to add to the game. I started that just after the SVB collapse when I studied on how they lost all that money and ended up learning how I could make more on interest on money in treasuries rather than it sitting around in a bank getting less interest and the bank may or may not collapse itself. I'm also buying monthly 2YR FRN's... That's turning out tot be more profitable than the 4w's.

[gregp]

So with a 13 week ladder, there is no auto reinvest. Do you then automatically deposit the Tbill maturity back into your bank account or do you keep it in the “zero percent C of I” and then buy another tbill?

[ChopsOnTheBlade]

Maybe this is a dumb question but -- as far as laddering goes shouldn't you just theoretically buy a new 4-month T-Bill literally every single day instead of having them spread out by 4 month intervals (a 4 and an 8 and a 13) so that way you can more quickly put the compound interest to use?

[ClassicAutoBrkrSvcs]

Very good explanation. I assume once you get to the 13 week T Bills you can set those up to auto invest so you're not having to log in every five weeks to buy another T Bill.

[JosephDickson]

A staggered weekly ladder might be a great idea for an emergency fund.

[HimalayanArc-zi]

What is your suggestion regarding reinvesting interest amount into T-bills after you have setup the ladder on auto-invest to truly benefit from compounding? I tried purchasing additional T-bills but that leads to multiple lots of T-bills maturing on the same date and definitely not ideal but gets the job done although I have to wait for a few cycles to get to a substantial principal amount to reinvest. I wish there was an option to re-invest the interest automatically increasing the principle amount steadily.

[dre]

How much do you invest in the 1st year to get a decent return? 5k, 10k, or more?

[james-khoi]

I do not think, laddering is a negative, but not for me. thanks

[gulfstrmcaptbob]

if i buy a tbill that matures in 2026 will i show any income in 2025?

[robertjohnson]

You show a 4-year treasury bond. It does not exist.