How To Build A T-Bill Ladder 2025 (And Why You Should!)

A T-Bill ladder strategy is the best way to invest in Treasury Bills. By building a bond ladder with your T Bills you give your self several advantages as an investor and avoid many of the downsides to Treasury Bills.

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0:00 Intro
0:36 What Is A T-Bill Ladder?
1:27 Why Build a T Bill Ladder?
2:51 T-Bills vs CDs vs I Bonds
3:57 Why I'm Building a T-Bill Ladder
4:57 My T-Bill Ladder

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#TBills #treasuryBills #bondladder

[calitune]

IMO ladders work and make sense with a normal yield curve. Normal meaning longer terms pay higher rates. Right now that is not the case. IMO right now you just cycle through 1 month T-Bills until things change. Max rate and max liquidity. Why wouldn't you?

[bayodaman]

I'm building a super aggressive T-Bill ladder. Doing only 4 week T bills. I just started my first one last week invested $5, 000. Adding another $2000 today, 2k next and week after that. The plan is to have to the point where I can pull out of at least one T bill at any point. I will be aggressively dumping cash into T bill for the near future. In May putting 8k more and waiting for tax return so I can also put that in. After that I plan on putting an extra 3k a month. Not big on stocks so don't really care to much about them. I'm more looking for short term returns. If I can get 20% or 3% a month that is all I need. I will continue to add 3k a month for the next 10yrs. Super blessed that being an RN allows me to be able to dump so much money in investing. Don't have a bunch of bills so I just have to stay super strict.

[gbinman]

I had a ladder of 17 week T-Bills but ended up changing to a ladder of 4 week T-Bills. Using the reinvestment option simplifies management as there is lag time when they are cashed out and then manually reinvested. With my ladder a T-Bill matures every week but is automatically reinvested. If I needed the cash all I have to do change the reinvestment counter to zero. Right now the difference in interest rates for the various term T-Bills is less than 0.1% so switching to T-Bills that pay a bit more isn't worth the trouble. Currently the 13 week have the highest rate. I keep cash in a HSA savings account but the 4 weeks ready access made it comfortable to significantly increase the face amounts.

[michaeld]

Thank you for your video. Question…If the 4 and 8 week interest rates are similar, why not just take the gain + initial investment after 4 weeks and purchase another 4 week again. What is the advantage of the 8 or 13 week, if the rates are so similar?

[mariaaguado-cn]

The title says 2024. I don't get it. There is an inverted curve where shorter term maturities currently make more than longer term. So, why would I buy a tBill at 52 weeks when 4 week autoroll tbills are higher. I'd much rather have access to my money every 4 weeks and get a higher rate then a year.

[rangerdoc]

My ladder has one rung. Gotta love that inversion.

[gonzchi]

Thanks. Makes sense. But the question is .. why not build a ladder using only 4-week T-bills? I understand that new T-bills are issues every week, right? So let's say I buy $ 1000 now of a 4-week T-bill, then next week I buy another $1000 in a new auction, then a 3rd week and then the 4th week. I select auto-re invest for all of them and forget. Wouldn't I have money available every week ? (cancelling the reinvestment option if I need the money).
I would have Tbills coming to maturity and being reinvested every single week. Why is this not better than buying different term Tbills like you suggest?

[janwilliams]

This video is helpful. I decided to do as you did and replicated the 4, 8, and 13-week strategies. I used Treasury Direct. I only used 20 K in each Bill. You state that you take the bill and reinvest it into a 13-week with both the 4 and 8-week bill so you have a maturity date every 5 weeks. I like that. However, during the purchasing process, it asks about re-investing and defaults to a "no." I left it a no. Should I have clicked the yes box to be able to continue to buy after maturity?

[MonicaMovieStar]

You said we are FDIC protected per CD (go to minute 3:27). Actually, you we FDIC protected "per depositor, per institution".

[InfoSecGuardian]

As normal people's bills come due monthly, I was hoping you would talk about creating an income stream using the ladder via combined T-Bill, T-Notes, and T-Bond strategy. To do this I'm always looking at when interest is paid which, if buying previously issued notes, means going into each one to inspect the terms.

[patriciaingraldi]

Great info and just what I needed. Thank you

[yonallb]

Great pacing, great production, great info. Subscribed. I went through vanguard and am currently rotating 135k in 13 week t-bills. Getting 400-500 per month at current rates. I realize this is quite a bit to have tied up in essentially cash. Sadly houses are expensive in CA, trying to save up a downpayment.

[roryholmes]

So after your initial 13 week tbill matures do you roll that into another 13week tbill. Then moving forward you constantly have 3 separate 13 week tbills going at the same time?

[Devinm]

Thanks for sharing. So I'm confused, from what I see, it looks like the month and other durations provide the same amount of money. So if I buy a 1 year vs a month, am I counting on gaining the interest state plus inflation? If not that, then what is the benefit of locking my money up for a whole year instead of rolling over month to month to use the compounding effect?

[DopeNope]

How much better is the return than a high interest bank account? Is it worth the extra time?

[shockwave]

So once the initial 13 weeks is up those also get reinvested in a new 13 weeks, correct? That would create the monthly on going availability of cash if needed.

[DavidO.Cobra]

Do you ever buy FRNs on Treasury Direct and what’s the advantages?

[TobyMayne]

after maturity does the money go directly to my bank? or do i have to sell it somehow?

[vtrep]

Should I use the auto-roll feature Fidelity offers when buyin t bill ladder?

[orlyii]

Just. Bought som tb of 8&16 bout I’m ready tu use your recom that’s what I need until house market go down to my like of 50% like on 2008