T-BILLS - EVERYTHING You Ever Wanted To Know

[@w1swh1]

Thanks great video. Took me all me life to realize that T-Bills are a better investment than CDs which often carry early withdrawal penalty. I always wondered how banks etc. could offer guaranteed rates on CDs. Now I know! Take out at a CD at, say , 5% with a bank. Bank takes out a T-Bill at 5.5%. Bank pockets the .5% risk free. Plus I pay state and local taxes as well. Older and wiser now😀😀

[@Zatoichinisanyon]

I purchased t-bills for the first time. It was so easy (treasury direct) -- 26-weeks, $2000 was $1949. Will be doing more. Good short term place to keep money.

[@FemiLotus]

I HAVE BEEN WATCHING MULTIPLE VIDEOS AND THIS IS BY FAR THE CLEAREST EXPLANATION. THANK YOU!

[@ErinTalksMoney]

I'M SO GLAD! 😊

[@cyb_structure]

THANKS FOR YELLING! ^ Also me: I agree, excellent video ❤

[@benji-L]

Just letting you know that I actually did open a Treasury Direct account and started with a $1k 2 month T-bill just to learn the process. It hasn't matured yet, so I haven't gone through the cycle yet, but thought you might like to know that your subscribers actually follow your advice!

[@richiet2222]

Anyday now.....

[@himanshukathuria2700]

United States Allies ' Partners' have STOPPED subscribing to US govt T Bills since January'2022. On Top of it Debt Ceiling has been suspended till Next US Presidential election. ' GOD SAVE THE T-Bills'

[@jahcreativeco]

Have you made any money yet?

[@benji-L]

@@jahcreativeco I did! Not quite enough to retire on, but it's a start!

[@jahcreativeco]

@@benji-L do you mind sharing how much? I was considering putting 1000 in I just put 200.

[@FaintAura]

Just bought my first t-bills earlier this week thanks to you turning me on to them recently.

[@ErinTalksMoney]

Great to hear!

[@max1492a]

you are a great educator! I've listened to similar videos on T-bills in the past and this one was the best by far

[@piper87c]

After one of your earlier videos talked about T bills. I set up an account and have been purchasing some. Thank you for some great information

[@Grilledexpectations]

Great info on T Bills! I have a T Bill ladder ranging from 4-26 weeks and it’s nice to know it’s not all locked up for years, just in case I need it.

[@ErinTalksMoney]

Right on

[@zombitroid84]

how much does it make you ( as a percentage ) ?

[@chrismichaels4463]

Super informative!! Ive been on the ibond train and im just now getting into t bills. I just made a small investment of $100 to get the feel of things and see how it all works. With IR's climbing on them its a no brainer. And i love how once it matures you can chose to rollover it to the next auction automatically!

[@kevinmcnally3811]

I am selling my bond funds and buying CD's and treasuries yielding over 5% for 18-24 months. This is better than bond funds are doing. Doing this within my IRAs on Fidelity to postpone Fed taxes. I may get back into bonds when the market settles out on Fed rate hikes and inflation (probably at least another year).

[@truckingmoney485]

Are you buying brokered cds or bank cds. I’m currently looking at one for 11 month 5% and a 18 month 5%

[@jeffknecht2733]

Opened a Schwab account in Dec '22. Went through a learning curve and finally have it figured as it pertains to T Bills and Money Market Funds. I'm conservatively opting for 4 week bills in deference to the shaky grounds re: "debt ceiling" and low possibility of s default. 4 weeks are paying around 4.6 and the Schwab Money Market is around 4.40. I would go for the 6 month at 5.6 or so, but leary of a "default". Anyway, it's been a good experience. The no state tax with T Bills is a plus. I started buying I Bonds in April of 2022. My wife and I learned and took advantage of purchasing 10K for our own bonds and 10K gifts for each other. When the interest rates get lower, we'll cash them out and lose 3 months interest. Of course we'll have to transfer the gifts to each other. I have a feeling that we'll continue buying TBills instead of more IBonds. Good luck everyone!!

[@dogsarefun2]

Govt. defaults there will be blood in the streets... not gonna happen....

[@hcp8212]

I’m looking to do this now, how do I get into t bills on Schwab ? Which to purchase?

[@shvideo1]

Thank you for this great video. All the T-Bills I have bought through Fidelity are Zero, meaning you buy at a discount price. You should cover this at some point. Also, the difference between coupon, ask and bid prices. For me only the ask price applies (when buying through Fidelity).

[@BoxOfRain]

A great discussion of the pros and cons of buying T-Bills through brokerage houses vs Treasury Direct. Thanks!

[@ErinTalksMoney]

Glad it was helpful!

[@FIRE_DrNinjaTurtle]

This good for people with cash. I am newly debt free, except rentals, so I am building that E-fund first.

[@Ayao3]

Great video. This is one of the best videos on t-bills that I’ve seen.

[@jdgolf499]

Great video. A lot of people are just learning about t-bills, and they are a great way to invest short term cash. I have been buying both t-bills and cd's for the short term.

[@ErinTalksMoney]

Both are wonderful short term options 👍

[@dopereflx7203]

I had no clue about any of this. Wow to know I can afford to get into the investment game this way is game changing!!!! Thank you for this!

[@seanbebington8377]

Hi there Erin thank you for the great video, I live in South Africa I bought short term T-Bills in the USA, and with our weak Rand to your strong Dollar its a great Investment.

[@tft24tft]

78 times we raised the debt ceiling 😮 SVP owned T Bills, guess they had too many long term ones. Thanks Erin a lot of great stuff. Hey maybe a video on FDIC insurance, along with is my brokerage money safe

[@smack3313]

This is the best video on this subject I've seen so far. Thanks!

[@alishad2666]

I absolutely love your delivery and I was able to follow along! Thank you!!

[@vejoshiraptor]

A major disadvantage of buying on Treasury Direct (so I’ve heard) is that if you ever have any problem, forget your password, etc., it will take months to sort out. With a major brokerage, you can get someone on the phone pretty quickly and probably take care of it then and there. I’d avoid needing to work with government bureaucracy at all costs. Thanks for the video!

[@truckingmoney485]

Where else can you buy them?

[@ErinTalksMoney]

I totally understand how you feel. By them where you feel most comfortable- if your more comfortable with a brokerage, go for it!! I can say, on a personal level, I’ve never had any issues with treasury direct. I have been able to call customer service no problem and talk on the phone with a person.

[@vejoshiraptor]

@@truckingmoney485 you should be able to get them at any major brokerage. Some popular ones are Fidelity and Vanguard, but there are other options. I use Vanguard myself, but not for any particular reason. Like Erin said in the video, you’ll get the same rate regardless of where you buy it.

[@mikecumbo7531]

That is incorrect. I forgot my password and my account got locked. One phone call later and I was back in. My call was late on a Tuesday , perhaps I was lucky? No long hold time, no hassles. Maybe the Treasury Dept. got their act together? Edit- perhaps someone had long delays getting an account reopened but that was not my case.

[@kevinburke7682]

In every family... there is one that handles the money and one that doesn't. The one that doesn't... needs to watch this.

[@benji-L]

Another great video, Erin. Your explanations are clear and concise, and the content is practical and useful. I will look into opening a Treasury Direct account.

[@ErinTalksMoney]

Awesome! Thank you!

[@TreasureShama]

Thank you for sharing, this tutorial has widen my knowledge about T- Bills.

[@LeonardPham]

Thanks!

[@ErinTalksMoney]

Thank you! 🙏

[@LeonardPham]

@@ErinTalksMoney No, thank you! Honestly, this was THE best description and overview of T-Bills. I especially appreciated the example and breakdown that shows how the interest earned is calculated on a $100 T-Bill.

[@garydonwest]

Thank you Erin! This video is a great resource and answered all my questions about T-Bills that I couldn't seem to find anywhere else!

[@ErinTalksMoney]

Glad it was helpful!

[@davidw1732]

I ladder 4 week, 8 week and 12 week on the secondary market with Fidelity. I opened a separate (cash management) account from my investment accounts. I find it much simpler than Treasury Direct.

[@kirklandphil]

Thanks, Erin, well explained. And thanks for the link I will give it a go.

[@ron9665]

0:45 Federal Government has never defaulted, but they seem poised to do so.... "Social Security's trust funds may run out in 2034. These changes may help. Social Security's funds are projected to run out in the next decade, at which point 80% of benefits will be payable." Now as they have predicted this end, but are still willing to extract the full amount form their victims, it is starting to feel something akin to fraud.

[@SilverHonda0767]

Im still confused about buying a t-bill. The website seems too confusing. I have Fidelity as my brokerage but they want $1,000.

[@ron9665]

9:49 If you set it up to auto-reinvest you 4 week T-bills for the nest 18 months and then decide that you need the money after 3 months, then how do you go about stopping the cycle? And, if it is set to reinvest, how long do you actually have to pull that money before it does reinvest?

[@GNX157]

You can go in and edit it to not reinvest at the end of the current 4 week period. Conversely, you can set it from the beginning to no reinvest, but as maturity approaches (do at 7-10 days before the maturity), you can go in to manage direct section and make it roll over right into the next 4 week bill. Your original corpus will invest same as before and the interest will go into your bank account.

[@nguye1971]

How do we get taxed on the interest? Federal only? Where on form 1040 we need to declare the accumulated interest? Thanks

[@myjunkmail2880]

Erin I understand the interested paid on Bills. Can you explain on the redeeming of T bills interest and pay out od reinvested T Bills?

[@nathanyoder4509]

Really enjoy your channel! I learn so much!

[@ErinTalksMoney]

I'm so glad!

[@mymax43]

Best video you have done so far! Very good information. Thank you!🙂

[@em65]

Very informative, thank you. Now to learn about T-bonds.

[@Rudyboy1975]

Thank you! What is the % of taxation on the gain?

[@aben3182]

Very informative! Q: If T-bills are purchased in a Treasury Direct account and subsequently mature, are the mature funds automatically re-deposited in the Purchaser's source account or do they remain in the Treasury Direct account? If that is the case, is this account (at Treasury Direct) Interest bearing at all and accessible 'on Demand' and how SECURE are moneys left in a Treasury Direct account BUT NOT reinvested?

[@ErinTalksMoney]

When the treasury bill matures, if you have not selected the reinvest option - your funds will automatically be transferred into the account of your choosing - generally your checking or savings. It does not stay with treasury direct 😊

[@aben3182]

@@ErinTalksMoney Have heard rumors of people being unable to get immediate (post maturity) access to (large) funds. Is this possible and does the Debt ceiling shambles have anything to do with it?

[@g.t.richardson6311]

@@aben3182 my maturity deposits hit my bank like clockwork No issues

[@GNX157]

Rolling over (reinvesting) is better done at treasury direct. Using their set up and editing tools your money will roll right into the next t bill with no gap or loss, whereas that’s probably not going to be the case at a lot of brokerages.

[@kvisu2000]

Thanks for the info. Could you please share the differences between T-bills and I-bonds?

[@HowardT1879]

Thank you so much. You explained it so well.

[@ErinTalksMoney]

Glad it was helpful!

[@seagull2912]

Sorry I was cut off. I just trying to say that Treasury Direct dont need a protection like FDIC or SIPC. As I understand no limits on the amount for individual or institutional account holdings. The $10 million is a limit for order to be placed on auction for institutional. Please correct me if I am wrong. Thank you again.

[@jefferymccauley9548]

Thank for the amazing video Erin! I just set up an account with Treasury direct a few days ago. This was perfect timing for me. Jeff

[@JS-bn1hn]

Folks quick question. What's the difference between putting 2k towards a 4wk TB vs a 13wk TB? is it just the small amount of % you might make more off doing a 13wk TB the only difference basically? I might be looking at this the wrong way but having 2k tied up for 4wks vs 13wk and making almost the same % but money held for less time seems better..?

[@GNX157]

Usually the rates for the various times aren’t so close together like they are right now. When they start heading down again is when you’ll see ppl trying to lock in a high rate for the longer period.

[@BeaterBlade]

Hello, great video. Question...as of today, the 3-month is at 5.38 and goes lower as the time gets longer. Why would someone choose to invest in a longer time period when the return % goes down? While it's more work, isn't it best to keep reinvesting in the short term higher yield t-bills?

[@jeffbandy7065]

What a FANTASTIC video! THANK YOU!!

[@ErinTalksMoney]

Thanks!!

[@primoxxl71]

This was excellent. Thank you 🙏

[@ErinTalksMoney]

Thanks!

[@robertewalt7789]

My account at Schwab lists about a dozen federal securities maturing in each close in month. I buy $10k (face value) every month I have enough excess cash.

[@alexng4]

Very helpful video..Thanks to the video, T-bills isnt for me. Interest return is too low vs investing in stock market

[@fdbassociatesllc7889]

Clear and informative presentation of the subject!! Thank you-first time viewing your content and am subscribing!!

[@ErinTalksMoney]

Thanks and welcome to the channel! 😊

[@vapeking466]

Just a fun fact ufb direct is offering a savings account with a 5.2% interest rate. It's actually the highest rate I have been able to find anywhere. However like you say taxes maybe an issue for some for me it's irrelevant as I don't have enough income to pay taxes. Also the bank is known for Not raising your rate when new rates come out. However if you just shoot them a message and they will give you the new rate if one is available. I know this because I did it I was being paid 4.80% I believe it was then I saw them advertising the new 5.02% rate. I went into the account and sent them an email saying I wanted the new rate and they just did it.

[@annaJL2024]

Great video! Can you explain how to sell T-bills when they mature? Thank you!❤

[@gonzchi]

Thanks! great video. And very clear. But regarding the ladder... my question is .. why not build a ladder using only 4-week T-bills? I understand that new T-bills are issues every week, right? So let's say I buy $ 1000 now of a 4-week T-bill, then next week I buy another $1000 in a new auction, then a 3rd week and then the 4th week. I select auto-re invest for all of them and forget. Wouldn't I have money available every week ? (cancelling the reinvestment option if I need the money). I would have Tbills coming to maturity and being reinvested every single week. Why is this not better than buying different term T-bills like you suggest?

[@mikehemmis5202]

Great video. Thanks. I already have a Treasury Direct account with some Series I bonds in it. That is what I will be using.

[@nostaljiq]

Great video! Everything I needed in a clear, concise way. Thank you!

[@ErinTalksMoney]

Glad it was helpful!

[@fumblerooskie]

This is very very useful info. Thank you.

[@warrenkatz1469]

Your information is great Because interest rates on T BILLS were so low for so long it wasn't worth considering them . But now that the interest rate is up its certainly worth considering.

[@jeffknecht2733]

State tax on CD's. Also with some CD's there are penalties for early withdrawal.

[@gonzchi]

Very clear. Thank you.

[@ysk249]

This is a very informative video on T-bills, Erin. Is there anyway we can continue to invest with the interest payments at the end of the maturity? I received the interest payments in my bank account, but I wanted to keep the money and continue to invest in T-Bills instead. Please help!

[@reginaholloway4733]

Thanks clear and concise

[@leena118]

Thanks for this content! It's really helpful!

[@ErinTalksMoney]

Glad it was helpful!

[@irenmolnar221]

Hi how about if the goverment default???? Bankrupt do we lose the money????

[@davJanko8052]

We have bigger problems then.

[@chemistry800]

Much bigger

[@hanwagu9967]

all these people worrying about holding t-bills that mature after the projected debt ceiling are uniformed. any t-bills that you purchase now are already included in the debt, so it isn't new debt. You would still get the face value of a t-bill even if the debt ceiling isn't raised, because the face value is already included in existing debt and isn't considered new debt.

[@kevinhoock9742]

Great info Erin ! Wondering if you can shed more light on the banking industry ? Janet Yellen said there are more that are in trouble that she's keeping an eye on .

[@edwardsullivan861]

Quick question, when the T-Bills mature and I don’t click reinvest does the entire amount get deposited by into my linked bank account? One KZbin video made it sound as if it may be difficult & cumbersome to retrieve the invested money once mature. Thank you for everything you share and educate me about. I’ve shared you videos to my nieces who have financial questions.

[@ErinTalksMoney]

Yep! The money (principal and interest) goes right back into the account you link upon maturity! Super simple!

[@abuwadie3]

Thanks for the vid. Watching this 2024. Rates same to be roughly same. Is there any type of treasury bond that pays out in installments?

[@hownwen]

Wow! Thank you so much💙

[@ErinTalksMoney]

You're welcome 😊

[@dayzen1512]

SGOV, USFR, and TFLO, are they more convenient and easier to buy/sell?

[@stburks]

Appreciate the great info. You mention the tax benefits of T Bills vs CDs. If I have a Roth IRA that was recently converted from Traditional IRA would it be any better to invest in one over the other. I won’t be touching the Roth for at least five years.

[@hughosborn7292]

Great video !! Perfect timing !

[@Ali22665]

Thank you for that. Can you tell me please what is the symbol?

[@mikehart6708]

Concerning automatic reinvestments, the only time i have been able to schedule an automatic reinvestment is when I am making my non-competitive bid. Any time i have gone back some time later and attempted to schedule a reinvestment, it simply did not happen. At first I thought maybe that was because it was too near the maturation date so I tried doing it earlier and it still did not work. What am I doing wrong?

[@madisenmus2135]

Can you cancel an automatic reinvestment if you need the money?

[@raygold1]

Yes

[@hanwagu9967]

automatic reinvestment doesn't cash out your t-bill, though. If you have t-bills with treasury direct, you cannot cash out a t-bill before maturity. if you purchased new auction t-bill through a brokerage, you could sell the t-bill on the secondary market if you needed the money; however, you will take a loss. treasury direct doesn't allow secondary market sales or purchases. to sell on the secondary market, you would have to request treasury direct to trasnfer the t-bill to a bank or brokerage that allows you to sell on the secondary market.

[@madisenmus2135]

@@hanwagu9967 thank I caught that from Erin. I just ment if you needed it near renewal phase in the case of an automatic ladder

[@cbbcbb6803]

I missed something. When I make a purchase, how do I pay? Do I send a check, use a credit/debit card, give them access to a bank account (I would not like that), or do go to some building and hand over cash?

[@wb1738]

Link your checking or savings account with Treasury Direct.

[@daneflanigan]

Solid breakdown - thank you

[@pisonpc]

Hi, I'm wondering at which point is the rate locked in for T bills. Is it locked in at the time of the purchase request or a few days later when the security is issued. Thanks

[@truthalways8071]

Can you please explain to me how it can be that you would put down an order for a million-dollar t-bill not knowing what the rate will be for example if a bank is paying $5.25 yield what if the TV comes out much lower like 4.75 he would probably end up losing right? Or am I missing something thank you in advance for your response

[@jwells4335]

Great content thank you my question is if you set up t-bill ladder with auto invest how hard is it to cancel the reinvestments using treasury direct

[@Funexpected]

There will be a box you can check ☑️ if you want to reinvest or uncheck if you want the money (automatically) deposited back into your bank account. You have you make the decision to check or uncheck the box a number of days before the bill matures, because it won't let you make changes while in the "pending maturity" phase. I found that out when I wanted to redeem my investment instead of reinvesting, but wasn't allowed. My T bill didn't mature for about 5 more days, so be sure to make changes about a week out.

[@davidhastings2603]

Great Job ❤

[@daralynx2]

When the t-bill yields are higher than money market mutual funds, they are a great alternative. But not now for me.

[@moneymanfernando1594]

So, you basically have to build a ladder if you want monthly income. Are there ETF`s that do this kind of thing (ladder) for you??

[@doglover56100]

Can our non-profit VFW invest in T-Bills with some of our excess cash?

[@in-oz]

Thanks Erin. A question... If you automatically reinvest and the maturity date is the same day as an auction date, does it go into that auction or the next one?

[@nicolasrumboll608]

Great video Erin! I have a question and a comment. Question: can you clarify tax implications of rollover/ladder t-bills? Are you taxed in between transactions or when you "exit" the ladder at the end only? Comment: consider the use of IE instead of AKA when you want to rephrase something. AKA (also known as) precedes another name for something, not an actual explanation. Take it or leave it. Your video is great!

[@ErinTalksMoney]

You are taxed in the year you receive the interest. If you by a 26 week t-bill now, that will reach maturity in this year, 2023 - so it will be part of your 2023 taxes. If you bought a 52 week t-bill now, that would mature in 2024, that’s when you would receive the interest and thus would be part of your 2024 taxes. (Regardless of ladder status - simply when that t-bill purchase matures).

[@MeltingRubberZ28]

Erin, what if you don't want to reinvest and the bill hits maturity. Does the money just end up back in your checking account, or is there some "money market" type account that you can either withdraw and reinvest, or.....? Thank you for the video. Overall the most clear picture of everything regarding t-bills.

[@ErinTalksMoney]

Yep, exactly

[@Gwinter452]

I selected the treasury direct option to have the funds go into a C of I account. I'm assuming doing so, it'd be easier for the next buy. Purchased my very first one for 4 weeks!

[@Thisishard2333]

Or the money smoothly just is put back into you savings/checking account.

[@davidmcright232]

Thanks for sharing.

[@ErinTalksMoney]

Thanks for watching!

[@w1swh1]

PS yes I agree. Treasury Direct is best place to buy T-Bills.

[@barbaramorgan6742]

Thanks for all your information on T-Bills. I'm still uncertain if once you lock in the interest rate at purchase, like for 17 months, does the interest rate stay the same for the entire 17 months?

[@brandon8531]

TBills don’t last 17 months. I’m assuming you mean 17 weeks? The rate is annualized, so you will get the interest for the full 17 weeks, annualized.

[@Xxxxxrrr6464]

Thanks

[@vistahawk1688]

Thanks Erin. liked the part about taxes and the differences between what brokers offer and Treasury Direct

[@ron9665]

If I build a 4 or 8 week t-bill ladder and set them to auto-reinvest, do the bills that just matured then get taxed as short term capital gains, or is that only figured when you actually take the money out (possibly long term if over 1 year with reinvesting? If I am paying $950 for a $1k t-bill then it matures and reinvests, am I buying a fractional bill with the $50 difference if the new t-bill costs $950 once again?

[@g.t.richardson6311]

You pay your ordinary tax rate on the interest, same as on a cd or money market interest.. you download your 1099int at end of year. No capital gains involved

[@sunshineiv1]

Hello I am new to Bills. I am wondering if I can purchase on TDirect the day before the auction or is it too late? And can I purchase Bills that have been auctioned a week earlier?

[@seagull2912]

Thank you Erin. You are very articulated. I used to park money at Treasury Direct before COVIT, so I know for sure you covered it all. I just looking to use Treasuries bill for our Home Owner Association and wondering if it is any different from individual accounts? If you know anything defer for accounts other than Individuals, please let me know? The other big advantage Treasuries Direct have over brokers and CD's efficient

[@dogsarefun2]

just put in a buy order for a 4 week t-bill, auction 3-22-23

[@nickka2009]

Bonds same as bills, other than term duration?

[@bobwaller9043]

Erin, I saw in the video that you can reinvest or rollover into the next T-Bill for a period of up to 2 years. Is there a simple way to keep that going beyond 2 years. I don't want to have to start a T-Bill Ladder all over again.. Thanks

[@petervelez594]

If you choose auto-enroll, later on how to un auto-enroll?

[@daveschmarder-US1950]

99-44/100% of my IRA is in T Bills purchased at a brokerage. To keep my asset allocation in line, I'm forced t o have some cash or fixed income in my taxable account. I use TBs as well as ETFs with Treasuries, such as SCHO. I have a tiny bit of long Treasury ETFs (VGLT and EDV) too. I will add more when I expect the Fed to lower rates again. For now it is a placeholder.

[@hanwagu9967]

add more of what? Why would you buy more treasuries or treasury based ETFs if the Fed lowers rates? Also, treasury ETFs are not the same as treasuries and have no protection or tax treatment as treasuries.

[@daveschmarder-US1950]

@@hanwagu9967 If I buy LONG Treasuries ETF just before the Fed lowers rates, the NAV of those ETFs will go up. I can then sell and receive a capital gain. The same would happen if I bought a long term Treasury now, and sell after the rates go down, on the secondary market. The holdings of Treasury ETFs are safe, therefore the ETF assets are safe. The NAV will move up and down. Whether I own the actual Treasury or Treasury ETF, they are free of State income tax. I hope that explanation helps, Han. I will be happy to answer further questions.

[@renebonilla2070]

I wish you would have explained how to fund the T-Bill at the Government website and how to get your money out.

[@wb1738]

You can do it with a checking or savings account. but you link that account to Treasury Direct. The money is returned to the link account once it matures or you could simply reinvest the money up to two years while earning interest.

[@hmarbermudez2660]

thank you.