Will I Regret Buying So Many T-Bills?

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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#tbills #treasurybills #bonds

[daj]

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

[surfmotor]

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.

[hrhsophiathefirst]

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!

[SilverHeist]

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.

[MichaelJosephJr]

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.

[davidcooper]

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

[mlhm]

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.

[dashphonemail]

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

[CraigandJoan]

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

[RIGHTNOW]

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. 👍

[jarc]

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.

[jacobtaylor]

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.

[pattiel]

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.

[LeviConquersAll]

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.

[Nikolaify]

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.

[staleydu]

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.

[k.]

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

[danielprout]

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

[JBoya]

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

[slovokia]

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.