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We will probably buy T Bills starting in January as our old CD money becomes available.
Current yield is about 5.25% and they can be bought with 4 week maturity. That means we pay roughly $996 and get $1000 back every four weeks. You don't know the exact figures until you actually buy them, but you can guess pretty closely by looking at the history.
This is for money we may actually need, but not right now, this week. I realize we will not be making money, but that's not the point. The point is safety and ready access. We make money elsewhere.
We will probably buy T Bills starting in January as our old CD money becomes available.
Current yield is about 5.25% and they can be bought with 4 week maturity. That means we pay roughly $996 and get $1000 back every four weeks. You don't know the exact figures until you actually buy them, but you can guess pretty closely by looking at the history.
This is for money we may actually need, but not right now, this week. I realize we will not be making money, but that's not the point. The point is safety and ready access. We make money elsewhere.
We will probably buy T Bills starting in January as our old CD money becomes available.
Current yield is about 5.25% and they can be bought with 4 week maturity. That means we pay roughly $996 and get $1000 back every four weeks. You don't know the exact figures until you actually buy them, but you can guess pretty closely by looking at the history.
This is for money we may actually need, but not right now, this week. I realize we will not be making money, but that's not the point. The point is safety and ready access. We make money elsewhere.
FWIW, we are retired, debt free, good cash flow.
Anyone have any experience with T Bills?
To the Bolded - , you can ask your broker (fidelity .. ?) to buy tbills on secondary market and you will know what the exact numbers are at purchase.
I have bought T-Bills at auction through Fidelity.
Buying at auction, you get the same yield as the large banks and Wall Street firms.
You can be set-up so the T-Bills are automatically rolled over at the next auction when they mature.
No costs, easy to do, you get the same yield as the “Big Boys”, no state income tax, very liquid, and, needless to say, backed by the full faith and credit of the US Government.
I buy them on Treasury Direct. It's easy to set up an account and you can make changes in maturity dates , etc. All you have to do is tie a bank account to it and they automatically take the money out and put it back . You don't have to do anything. Real easy .
what makes this better than a money market mutual fund?
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