/biz/ - Business & Finance

>>53073555
No. Treasury bills are for boomers and homosexual White men.

>>53073555
/smg/ uses them to safely generate yield on gains allocated for taxes

>>53073555
I am an expert in bills. I use to get at least 10 per week. AMA

>>53073596
After you hut maturity on the bill how do you "cash it out" does it go straight to your bank?

Is there any strategy when buying t bills?

>>53073571
>risk free 4.5% during a recession is boomer
Ngmi

>>53073712
I use the treasurydirect website. I buy out of an online savings account. When the tbill matures treasurydirect pays automatically back into my online savings.
Other anons may cry about using the website. There complaints are generally moot and/related to personal issues like switching around buying and receiving accounts which require notarized paperwork. Just set up your account where you want your money to come and go from correctly from the start. Everything is smooth sailing if you do.

>>53073555
For me, it's ibonds

>>53074062
>buying and receiving accounts which require notarized paperwork
So I need to go to a notary to get setup? Why not just buy bank CD’s?

>>53073555
Tblisi? Never been to Georgia

>>53074102
Definitely max out on these first

>>53073555
Made 50% with puts bought yesterday

>>53074102
I maxed out my ibonds before.
How do you "cash out" the ibond after 1 yr? Does it go straight to your bank automatically?

>>53073596
I bought my first 4 week t-bill about a week ago for $10,000 at ~3.7% but treasureydirect only took $9,971.92 from my savings account. So, when the t-bill matures I will only receive $28.08...? Last time I checked 3.7% is 370. Shouldn't they have taken $9,630? What happened why am I being jewed with 0.28%?

>>53073720
What's the inflation rate right now?

>>53073555

Yes. What's up?

>>53075619
All rates are annualized

>tranny bills
>>53074102
Based

>>53075619

All yields are annualized.

>>53073555
no but i'm into T girls

Honestly I don't think T-Bills are better than keeping my money in Vanguard's money market. I do have some Tbills with 4-13week maturities, but honestly I think the better play is to hold in money markets paying the same ~4% and maybe wait for a good time to long treasuries (around the time the yield curve "uninverts")

>>53075676
>>53075689
What does this mean?

>>53075747

https://www.fool.com/knowledge-center/how-to-calculate-the-percentage-return-of-a-treasu.aspx

>>53075619
put very simply, since it's a 4 week (1 month) bill..
3.7% divided by 12 months is about 0.31%

>>53074134
Because the 6 month tbill is the highest rate that can be had right now.
Show me a straight 6 month CD that pays better than 4.58% which is the current six month treasury rate.
You can't.
Only one I have seen is some credit union that you have to pay a fee to join, have to keep money in their bank and its not available to current members, ie its a special intro offer.
Other ones I have seen advertised as more than 4.58% are actually less by the time you get past the ads and see the real rate.

>>53075724
What does this mean?

>>53075724
This option is only good if you want your money somewhere on cruise control. You will make less. The trade off is you don't need to pay attention to what is going on. But in all serious right now as things are volatile and its easy to pay attention to what is going on there is no reason not to get a higher rate than Vangaurd pays by handling your money yourself. If the higher rate is not worth your efforts than yah, VMFXX is the way to go.

>>53075858
>>53075911
God damn it.. I thought I was getting $370
>sorry goy its actually divided by 12

>>53076180
Read hear >>53076215
Get more info here https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx

>>53076218
We've been jewed

>>53076163
also the tbill is not subject to state income tax which makes its competitors even less attractive..
>>53076180
When long term treasuries pay more than short term the yield curve is "uninverted".
We are currently in a (somewhat rare) situation where the yield curve *is* "inverted", meaning that short term treasuries pay more than long term
Eventually when the Fed finds their target rate and stops hiking, the short term treasuries will stop paying more than long term. In my view, that would be a great time to get into some long term treasuries
>>53076215
I was thinking for more of a market timing reason.
My estimate is that some time in 2023 will be a good buying opportunity for both equity and bonds.. Want to be pretty liquid. 6 months may be doable though.
>>53076218
it makes it easier to compare the rates, "ALL YIELDS ARE ANNUALIZED" means that all the yields are based on if you had the security for 12 months rather than whatever the actual maturity is on it.

>>53074062
I use the website too. It's a bit outdated but whatever I was able to figure it out eventually