Everything You Need To Know About T-Bills – Treasury Bills Explained



Treasury Bills are a short term government bond that could be the best place to invest your cash right now. This video covers what …

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35 Comments

  1. People wake up. T-Bills are designed for institutions, Foreign Gov and very wealthy Individuals. If you are an ordinary citizen please don't waste your time with T-Bills. Buy Bitcoin or other appreciating asset.
    You will die an slow death waiting to make any money from T-Bills. In the past T-Bills were used as a hedge against inflation because the interest rate was high. Nowadays IT NO LONGER works because the rate is low. If you are experiencing 4 – 5 % inflation and the T-Bills are only paying 5% WELL YOU DO THE MATH!!!

  2. T-Bills purchased from TreasuryDirect cannot be sold at anytime. You cannot sell a T-Bill before maturity. TreasuryDirect is a buy-and-hold-only platform. If you want to liquidate early, you’d need to transfer the T-Bill to a broker (which takes time and paperwork), then sell it on the secondary market. So while it’s not technically impossible to sell early if you used TreasuryDirect, it’s inconvenient and not designed for that use case.

  3. @3:36 the example you gave sounds horrendous. Why would I want to earn 5% in a YEAR? Putting that into a HYSA for a year alone will earn more than that since HYSAs are compounded interest monthly. And I can withdraw at anytime.

  4. I'm just learning about bonds and have a quick question. As I understand it, if interest rates go up that's bad for you unless you hold it until maturity. Does that mean if interest rates were to drop dramatically you should sell before maturity?

  5. I can't believe he mentioned that you can obtain t-bills for free. Indeed, one must become a secure party creditor and submit a chargeback to the treasury with the bill of exchange

  6. at 6:10 it says if new bills offer a higher interest rates than ones you invested in before you may lose money. Why? I would expect you still get interest even if its less than what someone would get with the new higher interest bills.

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