T Bills ladder: I'll be putting some of our cash to work in T
Bills as previously mentioned. We will be doing some 13 week bills
at this point with the rates being over 3.3% at last glance. Just
an estimate until the upcoming auction is complete, though it looks
like that will be the case. They can be automatically reinvested
for up to 2 years. No limit on purchase of the T Bills, unless you
have over $10 million to put in haha.
Since we already have some I Bonds, those will serve as the
longer term part of our ladder as they continue to renew rate wise
over and over. The plan is to hold the I Bonds until the 5 year
maturity, though it is good to know we can access the cash anytime
after the 1 year of holding them. Yes, there is a 3 month interest
penalty if we would do that, though with rates being what they are,
currently 9.62% on those it would be minor and our rate would still
crush what we would be getting elsewhere for guaranteed return on
cash. We also have available cash in our brokerage account. So for
our personal situation we have a good plan for now.
Another benefit of buying the T Bills is that I get some cash
out of our traditional banks and directly into safety of being
backed by the full faith and credit of the US government. FDIC
insurance is fine, though if there were any bank disruptions, I'm
sure there would be some delay on cash. Someone who likes details
I'm sure will point out a difference between the two. Likely all ok
in the long run, it is just peace of mind for me.
I've also taken some cash out of the bank and have it on hand
here (I've practiced that ongoing since some years back). These
crisises, either real or perceived seem to be happening more and
more frequently over the years. I'm not a good survivalist, so you
won't see me on any of those shows anytime soon. I do have some
friends who are pretty good, so I'll buddy up with them if the time
comes. There, good time to get all the boogeyman stuff out of the
way, it is October after all. Enjoying the day. I can only do what
I can do. Living happy, not watching news (as usual), and spending
my time on my priorities.
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T Bills ladder: I'll be
Posted by fundamentalvalues on 3rd of Oct 2022 at 07:16 am
T Bills ladder: I'll be putting some of our cash to work in T Bills as previously mentioned. We will be doing some 13 week bills at this point with the rates being over 3.3% at last glance. Just an estimate until the upcoming auction is complete, though it looks like that will be the case. They can be automatically reinvested for up to 2 years. No limit on purchase of the T Bills, unless you have over $10 million to put in haha.
Since we already have some I Bonds, those will serve as the longer term part of our ladder as they continue to renew rate wise over and over. The plan is to hold the I Bonds until the 5 year maturity, though it is good to know we can access the cash anytime after the 1 year of holding them. Yes, there is a 3 month interest penalty if we would do that, though with rates being what they are, currently 9.62% on those it would be minor and our rate would still crush what we would be getting elsewhere for guaranteed return on cash. We also have available cash in our brokerage account. So for our personal situation we have a good plan for now.
Another benefit of buying the T Bills is that I get some cash out of our traditional banks and directly into safety of being backed by the full faith and credit of the US government. FDIC insurance is fine, though if there were any bank disruptions, I'm sure there would be some delay on cash. Someone who likes details I'm sure will point out a difference between the two. Likely all ok in the long run, it is just peace of mind for me.
I've also taken some cash out of the bank and have it on hand here (I've practiced that ongoing since some years back). These crisises, either real or perceived seem to be happening more and more frequently over the years. I'm not a good survivalist, so you won't see me on any of those shows anytime soon. I do have some friends who are pretty good, so I'll buddy up with them if the time comes. There, good time to get all the boogeyman stuff out of the way, it is October after all. Enjoying the day. I can only do what I can do. Living happy, not watching news (as usual), and spending my time on my priorities.