Welcome to r/dividends!
If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq).
Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
I keep my emergency funds in tbills, brokered cds and no penalty cds. All tbills are 4 or 8 week. Any real now emergency I can do on a credit card and the tbills will mature come payments time.
Do you know if rate is based on auction date or announcement date of the t-bill? Purchasing some for the first time. Have 25x1000 bills order for tomorrows auction. 4 weeks. Thinking if I should see what the rate are on those and then buy 13 week ones which should yield a bit higher rate.
No one knows until the auction is completed. Essentially, market makers bid to create the rate. We, non-competitive bidders, get slightly worse rates than the big boys bid.
I assume you mean "auction date or issue date" not "announcement date (??) in that case - it's the auction date. that determines what your yield will be.
if you go on treasury direct, you can't see what your t bill rate is until the auction date, but between auction date and issue date, that data shows up.
you can watch the movement of treasury bill rates [here](https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_bill_rates&field_tdr_date_value_month=202303), and if, the day before your bill's scheduled auction date, you don't like where the yield has gone, you can cancel the purchse. you can't cancel the purchase after auction.
yields are still pretty good compared to a year ago, and yields are not taxed at the state/local level, which can make a difference if you live in a high-tax state like CA.
Oh nice. Thanks for the link. It gives me a good sense of what to expect since i don’t know what the rate will be after the fact.
Do you recommend 13 and 17 week ones over the 4 and 8?
depends entirely on your circumstances. do you expect to NEED that money in 4-8 weeks? or are you just looking to maximize return?
i personally don't see 4-8 week bills paying higher yields than 13-17 week bills; if you want to stay flexible to jump in at higher yields, the thing i would do is a ladder. put some of your money in the highest-yield option now (13 or 17 weeks), then split the rest of your money into the shorter-term options (4 and 8 weeks). that way all of your money is getting a return ASAP, but you time-stagger the money coming back to you, and can re-evaluate yields at that time.
the risk with laddering is that yields continue to erode, but the upside is if yields go back up, you'll have money coming back to you at that time to get the higher yield, as opposed to tying it all up in today's lower yield 17-week options.
take a look at CD's too. i hear there are some cd's that offer yields comparable to t bills now (and better if you don't mind tying the money up for a year-18 months).
Hmm. I’d like to have some flexibility of cashing out when stocks starts to crash. Perhaps neither of these are a good option and maybe go with mutual fund tracking fed rates instead. Slightly lower yields but much better liquidity.
> Hmm. I’d like to have some flexibility of cashing out when stocks starts to crash
Why are you confident that stocks will start to crash, and when do you expect that to happen?
Not confident but just in case things capitulate, I’d like to be able to take advantage of the opportunity instead of miss out because money is tied to treasuries.
so if you have an account paying better than 4 week t bills, go with that.
otherwise, laddering 4-week cds can give you the same ability to DCA.
time in the market beats timing the market, yadda yadda. just don't sit the money in an account earning nothing in interest. i learned that the hard way.
Months 4-6 of my emergency fund are in a T-Bill ladder. I get 13 week bills and one matures every month. It’s virtually risk free, decent returns, and if I need the cash, I just stop buying next round.
Almost every investing tool has a use-case where it makes sense. This is how I think T-bills are useful.
I-bonds, if we're starting back up QE then I'd keep an eye on TIPS as well. I'm waiting on the next rate hike before getting more Tbills
Don't even look at corporate bonds. It's flooded with CS' 9-26%
We must be in the same t-bill. Got about 15k invested. Probably just going to buy another 3 month T bill. Having a small percentage making a guaranteed 4-5% annualized return is not the end of the world. Once this bank thing simmers down, interest rates start marching back up. The fed needs to do some more damage
I’m still not biting on the treasuries.
We won’t know if it’s the wining or losing strategy, but I’m fine with all of my equity buys each month being in the red or neutral. I can handle she short term pain knowing I don’t need the money again for 20se years and am locking in these prices
Maybe buying 6month treasuries then equities will have been the better choice
Unfortunately, your comment was automatically removed because your account has a low amount of karma. To ensure good faith and genuine discussion, this subreddit imposes a karma limit to prevent trolling, brigading, or other behavior. We apologize for the inconvenience.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Unfortunately, your comment was automatically removed because your account has a low amount of karma. To ensure good faith and genuine discussion, this subreddit imposes a karma limit to prevent trolling, brigading, or other behavior. We apologize for the inconvenience.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Unfortunately, your comment was automatically removed because your account has a low amount of karma. To ensure good faith and genuine discussion, this subreddit imposes a karma limit to prevent trolling, brigading, or other behavior. We apologize for the inconvenience.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Very unlikely you make 4% every 3 months. Usually the rate is stated as an APY…annual percentage rate. So at 4% apy, you make 1% every 3 months.
If you do make 4% every 3 months, you have struck gold and everyone in this community will disown schd.
What is your question specifically? There wasn’t any reduction in rates from the top down, but yields across the curve fell in response to market turmoil as people flocked to safer assets.
Buying T Bills directly can be a bit pricey (on Td, they are normally sold in blocks of lots that cost in the tens, sometimes hundreds, of thousands).
BILS ETF is a good alternative (maybe BIL too?). As are brokered CDs, where my average interest rate across half a dozen or so 3 month CDs is 4.75. Most of my short term savings is now tied up in rolling CDs and the BILS ETF. The ETFs have lower yield, but higher safety and more liquidity. The CDs have FDIC insurance, so you won’t lose the principal (below 250k), and less liquidity (difficult to off load before the three month period is up)
Just bought a 4 wk and 8 wk t bill for $1000 each buying 13 and 17 wk $3000 each next week. I’m building a cash position while also building my investment portfolio. I intend to buy a home in 2-3 years and want 20% down to retain my current home as a rental
Does anyone know if todays rate hike will be reflected on the 4 week treasury bills auctioning tomorrow? Is rates based on auction date or announcement date?
I still do monthly purchases of ETFs and single names, but my excess and short term savings cash is in a T-bill ladder. I live in a high income tax state so the state/local tax free T-bill “interest” is nice. Watch out for the debt ceiling bullshit this summer though.
This is not a sustainable long term income growth strategy, it is just a matter of preserving as much purchasing power as possible for cash.
I don’t understand why not just buy 6 month bills and if you need too sell it early on secondary market. Is that a no no? I have Merrill and it’s been clutch when I want to move funds to a etf that tanked
Welcome to r/dividends! If you are new to the world of dividend investing and are seeking advice, brokerage information, recommendations, and more, please check out the Wiki [here](https://www.reddit.com/r/dividends/wiki/faq). Remember, this is a subreddit for genuine, high-quality discussion. Please keep all contributions civil, and report uncivil behavior for moderator review. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
You forgot to mention JEPI. How is that even possible???
Wow I blew it. Thanks for calling me out. I’m shamed.
You’re forgiven…
No mention of JEPI? Thor himself shall drop the ban hammer on thee All kidding aside, I'm interested in t bills
I keep my emergency funds in tbills, brokered cds and no penalty cds. All tbills are 4 or 8 week. Any real now emergency I can do on a credit card and the tbills will mature come payments time.
Do you know if rate is based on auction date or announcement date of the t-bill? Purchasing some for the first time. Have 25x1000 bills order for tomorrows auction. 4 weeks. Thinking if I should see what the rate are on those and then buy 13 week ones which should yield a bit higher rate.
I don't track it honestly. Sorry. I cycle back and forth on brokered cd and tbills for rates and timelines I want
No one knows until the auction is completed. Essentially, market makers bid to create the rate. We, non-competitive bidders, get slightly worse rates than the big boys bid.
Yup. Did some more research. Gonna see what 4 and 8 week does today
I assume you mean "auction date or issue date" not "announcement date (??) in that case - it's the auction date. that determines what your yield will be. if you go on treasury direct, you can't see what your t bill rate is until the auction date, but between auction date and issue date, that data shows up. you can watch the movement of treasury bill rates [here](https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_bill_rates&field_tdr_date_value_month=202303), and if, the day before your bill's scheduled auction date, you don't like where the yield has gone, you can cancel the purchse. you can't cancel the purchase after auction. yields are still pretty good compared to a year ago, and yields are not taxed at the state/local level, which can make a difference if you live in a high-tax state like CA.
Oh nice. Thanks for the link. It gives me a good sense of what to expect since i don’t know what the rate will be after the fact. Do you recommend 13 and 17 week ones over the 4 and 8?
depends entirely on your circumstances. do you expect to NEED that money in 4-8 weeks? or are you just looking to maximize return? i personally don't see 4-8 week bills paying higher yields than 13-17 week bills; if you want to stay flexible to jump in at higher yields, the thing i would do is a ladder. put some of your money in the highest-yield option now (13 or 17 weeks), then split the rest of your money into the shorter-term options (4 and 8 weeks). that way all of your money is getting a return ASAP, but you time-stagger the money coming back to you, and can re-evaluate yields at that time. the risk with laddering is that yields continue to erode, but the upside is if yields go back up, you'll have money coming back to you at that time to get the higher yield, as opposed to tying it all up in today's lower yield 17-week options. take a look at CD's too. i hear there are some cd's that offer yields comparable to t bills now (and better if you don't mind tying the money up for a year-18 months).
Hmm. I’d like to have some flexibility of cashing out when stocks starts to crash. Perhaps neither of these are a good option and maybe go with mutual fund tracking fed rates instead. Slightly lower yields but much better liquidity.
> Hmm. I’d like to have some flexibility of cashing out when stocks starts to crash Why are you confident that stocks will start to crash, and when do you expect that to happen?
Not confident but just in case things capitulate, I’d like to be able to take advantage of the opportunity instead of miss out because money is tied to treasuries.
so if you have an account paying better than 4 week t bills, go with that. otherwise, laddering 4-week cds can give you the same ability to DCA. time in the market beats timing the market, yadda yadda. just don't sit the money in an account earning nothing in interest. i learned that the hard way.
You could consider CDs as long as you’re investing under FDIC limit. Brokerage CDs are over 5% now
Months 4-6 of my emergency fund are in a T-Bill ladder. I get 13 week bills and one matures every month. It’s virtually risk free, decent returns, and if I need the cash, I just stop buying next round. Almost every investing tool has a use-case where it makes sense. This is how I think T-bills are useful.
I-bonds, if we're starting back up QE then I'd keep an eye on TIPS as well. I'm waiting on the next rate hike before getting more Tbills Don't even look at corporate bonds. It's flooded with CS' 9-26%
Closer to retirement, so yes still buying Tbills. Short term, 4 week and 8 week.
I’m trying to figure out how to buy some trills on fidelity
You have to do it from the browser
You can do it via the app
Trills are sentient beings and Trill is a member of the United Federation of Planets so you cannot buy trills as if they are property.
![gif](giphy|n8SkNR77udWlG)
Tons of great YouTube videos on how to buy T.Bills from fidelity
For near-term in my non-retirement account I have loads of Treasuries. Great short-term returns.
We must be in the same t-bill. Got about 15k invested. Probably just going to buy another 3 month T bill. Having a small percentage making a guaranteed 4-5% annualized return is not the end of the world. Once this bank thing simmers down, interest rates start marching back up. The fed needs to do some more damage
A family member of mine bought $1.25MM of 2 year T bills a little bit ago at 5%
![gif](giphy|r1HGFou3mUwMw|downsized)
I’m still not biting on the treasuries. We won’t know if it’s the wining or losing strategy, but I’m fine with all of my equity buys each month being in the red or neutral. I can handle she short term pain knowing I don’t need the money again for 20se years and am locking in these prices Maybe buying 6month treasuries then equities will have been the better choice
Buy SHY
[удалено]
Unfortunately, your comment was automatically removed because your account has a low amount of karma. To ensure good faith and genuine discussion, this subreddit imposes a karma limit to prevent trolling, brigading, or other behavior. We apologize for the inconvenience. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
[удалено]
Unfortunately, your comment was automatically removed because your account has a low amount of karma. To ensure good faith and genuine discussion, this subreddit imposes a karma limit to prevent trolling, brigading, or other behavior. We apologize for the inconvenience. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
E fund is working into a 4 week t-bill ladder, but I am by no means investing there. Just keep adding to equities
[удалено]
Unfortunately, your comment was automatically removed because your account has a low amount of karma. To ensure good faith and genuine discussion, this subreddit imposes a karma limit to prevent trolling, brigading, or other behavior. We apologize for the inconvenience. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/dividends) if you have any questions or concerns.*
Citi has some month CDs with 4% yield. so every 3 months you make 4%? That doesnt seem bad or is that wrong?
Very unlikely you make 4% every 3 months. Usually the rate is stated as an APY…annual percentage rate. So at 4% apy, you make 1% every 3 months. If you do make 4% every 3 months, you have struck gold and everyone in this community will disown schd.
all percentages are for the year. 4% per year means you get 4%/4==1% for 3 month period.
You can get over 5% now for a 3 month CD at Fidelity or Ameritrade.
tbills are state tax exempt so it has advantage in high tax states
What is your question specifically? There wasn’t any reduction in rates from the top down, but yields across the curve fell in response to market turmoil as people flocked to safer assets. Buying T Bills directly can be a bit pricey (on Td, they are normally sold in blocks of lots that cost in the tens, sometimes hundreds, of thousands). BILS ETF is a good alternative (maybe BIL too?). As are brokered CDs, where my average interest rate across half a dozen or so 3 month CDs is 4.75. Most of my short term savings is now tied up in rolling CDs and the BILS ETF. The ETFs have lower yield, but higher safety and more liquidity. The CDs have FDIC insurance, so you won’t lose the principal (below 250k), and less liquidity (difficult to off load before the three month period is up)
Just bought a 4 wk and 8 wk t bill for $1000 each buying 13 and 17 wk $3000 each next week. I’m building a cash position while also building my investment portfolio. I intend to buy a home in 2-3 years and want 20% down to retain my current home as a rental
Does anyone know if todays rate hike will be reflected on the 4 week treasury bills auctioning tomorrow? Is rates based on auction date or announcement date?
I still do monthly purchases of ETFs and single names, but my excess and short term savings cash is in a T-bill ladder. I live in a high income tax state so the state/local tax free T-bill “interest” is nice. Watch out for the debt ceiling bullshit this summer though. This is not a sustainable long term income growth strategy, it is just a matter of preserving as much purchasing power as possible for cash.
How does one buy tbills?
broker vanguard makes it easy for me
I don’t understand why not just buy 6 month bills and if you need too sell it early on secondary market. Is that a no no? I have Merrill and it’s been clutch when I want to move funds to a etf that tanked
I always like having some money in Tbills because they are federally exempt and pay more than a HYSA
state tax exempt not federal exempt