T-bills a good investment?

[LouAvul]

For a year?

[LouAvul]

Just curious as to the thinking of the FR brain trust.

[Roccus]

If your life horizon is short and you desire liquidity, stagger purchase of 13 week bills and keep repurchasing as you see fit.

[Romulus]

You might get better interest rates on CDs. Just make sure they have the FDIC insurance.

[woodbutcher1963]

I bought a $10K Tbond about 6 months ago because they were around 8%. First time I have ever bought one in my life. You buy them through the US Treasury. They adjust monthly based on the inflation rate. Maximum per person/year is $10K.

[Night Hides Not]

Good advice from all. I’m finally at a point where I have some money to set aside. My first small purchases have gone to shares of Arbor Realty Trust, current yield of 11%. They’ve raised their dividend each of the last ten quarters.

Not for everyone, I understand that.

[gloryblaze]

ELEVEN per cent!!!!!!

Thud.

[Starboard]

A ‘good investment’ is one that is suitable for your needs and meets your tolerance for risk. In other words, this is highly dependent on what works for you.

It sounds like you’re looking for a safe place to park money for the short term. One advantage to T-bills is that they’re not subject to state and local tax. There are other alternatives such as CD’s and short term government bond funds you may want to look into. And as always, do your due diligence.

[FtrPilot]

a $10K Tbond

Is it a T-bond or is it the I-bond.

Here's a link for I-bonds. They are inflation adjusted, but the interest is taxed at the federal level.

https://treasurydirect.gov/savings-bonds/i-bonds/

[JesusIsLord]

The biggest mistake I made investing in my younger years was pulling out of the market when it tanked. E.g. 2002 Tech bubble & 2008 general recession. A question for you is, 'how would you respond if you see your investment lose 30 - 40 - 50 % of its value'? Many retail investors (average Joe's like me) can't tolerate seeing their portfolio shrivel. With hindsight, age and experience, I would not sell in a recession.

So, if you are up in years you have a short time horizon for investing, which means you lack time to recover from a market downturn. That's my situation. My current investments? 50% are in laddered and brokered Agency bonds yielding an average of 4%/year. The other 50% are in a diversified mutual fund (S&P 500 fund). I use Vanguard to purchase my investments because they offer the lowest fees in the industry and they are owned by the investors themselves.

If your investment time horizon is > 15 years, and you're willing to buy and hold through a deep recession, Warren Buffett's investment advice for his wife is not bad, namely: "When it comes to Buffett’s advice for his own wife should he pass away — it’s simple.

The Sage of Omaha has left these instructions in his will: “My advice to the trustee [for my wife] could not be more simple: Put 10 per cent of the cash in short-term government bonds and 90 per cent in very low-cost S&P 500 index fund.” That’s it.

Also, I strongly advise you check out this website named after John Bogle, a great Vanguard advisor for the "little guy": https://www.bogleheads.org/

[woodbutcher1963]

It must be an I bond. Current rate is 6.89 %.

[KarlInOhio]

My first small purchases have gone to shares of Arbor Realty Trust, current yield of 11%.

Their price has dropped 22% in the past year. Are they chewing up their capital to get that 11% dividend or have they just been hit like other stocks.

[cgbg]

Your investment concept makes sense but imho you should gradually phase out of the stock market (rebalance) as you get older.

Eighty years olds should not be taking any risk with capital.

[billorites]

People are talking about at least three different animals here.

T-bills are 12 months or less, subject to Federal, not state, income tax.

I-bonds adjust for inflation, but limited to $10,000 purchase/year.

TIPS, Treasury Inflation-Protected Securities, pay a fixed interest, but have a principal that adjusts for changes in inflation rate. That floating principal makes them best suited for tax-protected accounts such as IRAs.

[Starboard]

Eighty years olds should not be taking any risk with capital.

**************

Generally true, but that depends on one’s financial situation. Some well off octogenarians may have some play money to speculate with.

[CivilWarBrewing]

Don’t have any investments that are NOT in your physical possession because IT’S ALL GOING TO CRASH AND BURN AND YOUR PAPER OR DIGITAL INVESTMENTS WILL EVAPORATE INSTANTLY.

[the_Watchman]

Please state the current rate for T- bills. I have scanned this thread twice and have not seen anyone mention it!

[LouAvul]

Re FDIC. As an aside, if one has other accounts with a particular bank that total the FDIC cap ($250,000 for a single person, for example), and one purchases CDs in addition to the above, the cap total is still $250K?

If yes, then that one should get the CDs elsewhere?

[Night Hides Not]

IMO, just a function of the current environment. Their earnings are more than sufficient to cover dividends.

I work for a real estate company in Dallas, and they’re taking advantage by acquiring properties at lower prices. Our multi family properties are 95% leased, primarily in the Southeast.

[TrumpisRight]

Cash is a GREAT investment!