How To Buy T-Bills On Schwab | Treasury Bills 2023 (Secondary Market)

[@DiamondNestEgg]

Thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Everyone's financial journey is different. Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances. >>WATCH NEXT ⭐ Four Reasons For Buying T-Bills In The Secondary Market: kzbin.info/www/bejne/oWKsd4qOoq-HiM0 ⭐ Top Four Brokers For T-Bills: kzbin.info/www/bejne/m6KZaZSCaLeLrsU ⭐ My New $60,000 T-Bill Ladder: kzbin.info/www/bejne/apjEdaaEjtGrd5o ⭐ Brokered CDs vs T-Bills: kzbin.info/www/bejne/sJmomqyNZ7Nqgac

[@k.t.1594]

You are extremely good and efficient at providing exactly what it needs for a video, that is no more no less.

[@white710]

Thanks!

[@johbee4462]

I just did this for the first time side-by-side using your tutorial (pausing it many times along the way). Very helpful, thank you!

[@winduncan9818]

That was great, thanks. What if I just leave it till maturity? Does the money just pop back into my account automatically?

[@TheSailor5757]

Steve I must use Schwab because it’s my employer’s 401K plan. Even though I’ve already used this Schwab tool, this video taught me more.

[@gpags0205]

Does your employer let you buy treasuries through your 401k? Mine doesn't☹️, I asked they said don't have to pay state taxes when selling, but if in 401k then you pay both state&fed when you take those distributions out of 401k. I said ya but I want to do with my Roth 401k funds, guy was like🤔, I didn't make the rule🙄. Anywho you are lucky if your plan allows this.

[@yking333]

Hi, I have a question no one seems to be able to answer! When you buy secondary market t-bills and treasury bonds at a discount, there are 2 sources of gain. 1) the coupon and 2) appreciation. We know that the is tax advantaged (state/local tax exempt), but how is treated? If I buy a treasury at a discount, say $96, and it matures to $100, is the $4 of appreciation treated as a capital gain or ordinary income (and if so, what's the tax treatment?)

[@redrooster626]

Thank you for making this tutorial video, I had a few funds just sitting in Schwab that I wasn't investing into anything. It gives me another option other than long-term stocks.

[@jamesd.salehi4752]

Very clear, informative video. THANK YOU!

[@flipflopbob]

Do you lose some interest from the time a t bill matures and when it is automatically reinvested? There usually is approximately 5 days between maturity and reinvested date.

[@Seniormexico1968]

Thanks for the great videos on T Bills! I have a Treasury Direct account-- so easy to use! I have used the ladder strategy for my emergency funds-- getting more than 4% return! Thanks for the guidance.

[@DiamondNestEgg]

Glad you're enjoying the videos!

[@cloudsrain8753]

Very well explained again. Can you talk about Repo Rates correlates with Swvxx and also M2 money supply (shrinking) vs inflation (economy) please.

[@Frank50505]

Great video. Exactly what I needed. Thank you.

[@stephenpelletier8947]

Love your channel! Can you please do a video on *selling* T-Bills? Especially trade-offs between fastest sale vs getting the best price? Best brokers etc? I think practical liquidity is something everyone needs to take into account when parking money in treasuries...

[@DiamondNestEgg]

I talk about selling T-Bills in the second half of the video

[@stephenpelletier8947]

@@DiamondNestEgg Yes, but that only addresses T-Bills bought at Schwab or transferred to Schwab. What about the scenario of someone like myself who purchased T-Bills at Treasury Direct and might need to sell some or all of them before maturity to raise cash quickly, say for an emergency? Given that a T-Bill ladder is a higher yield alternative to a money market account, understanding what kind of practical liquidity you can get should be part of that trade-off decision. So a video covering the process of selling T-Bills purchased at Treasury Direct would be really comforting, even if we intend to hold our T-Bills to maturity. And a "top broker" analysis for selling in this scenario (like the one you did for purchasing) would be really useful too. Thanks for the consideration!

[@kellylee514]

What does it mean when there is an amount in the coupon column? and accrued interest? Does that mean we aren't getting the actual YTM that is listed?

[@DiamondNestEgg]

This should help: Accrued Interest On Treasury Notes & Bonds | What Is Accrued Interest? kzbin.info/www/bejne/hpWpnKebhZWrnqs

[@ursulamadrid4006]

what is the secondary market?

[@kd568]

Hi DNE and SuperSavers! I opened a Schwab account and purchased TBills. However, I can’t figure out how to set up Autoroll prior to buying. I’ve watched this video several times, but don’t see guidance on how to do this? Any thoughts? Thanks!

[@danncork1967]

Auto roll doesn't work if purchasing on the secondary market.

[@hoa-mpls2422]

Question, when your CD has matured on Schwab secondary market do you have to do anything to get that money back?

[@DiamondNestEgg]

Proceeds go back to your designated account at maturity

[@joe2guns]

Hello thanks alot for all the information, I had a question for you am I mistaken I advised my buddy since the rate of the current t Bill is 4.56% on 4 week bill will 100k investment earn 4k? When it matures after 4 weeks or is it based off annual rate?

[@jeffknecht2733]

Annual

[@bobcheng5179]

I am getting 4.35% 7 day average yield on the Vanguard Federal Money Market Fund. It is fully liquid. So, I just wonder if there is any advantage in buying T-bills. Your advice?

[@howulikedemrice]

Expense ratio is .11%

[@travelnuts]

On Schwab, when you're looking at the list of T-Bills, some have a coupon rate and some have accrued interest. Can you explain what these mean?

[@DiamondNestEgg]

Accrued Interest On Treasury Notes & Bonds | What Is Accrued Interest? kzbin.info/www/bejne/hpWpnKebhZWrnqs

[@lindalyc]

Please make one over Merrill Edge. thanks

[@DiamondNestEgg]

Noted

[@michaelminauro4180]

Good stuff I like the 17-week on Schwab and treasury direct which I have both just like to spread it around

[@DiamondNestEgg]

Thanks for sharing Michael!

[@gousheng1234]

Hi, do you know how to cancel t-bill autoroll on fidelity? Thanks

[@San_Dee]

You have to call them. I called and they said the option doesn’t exist on their website. The reason why is that the treasury security aspect of their website never got much attention or use until recently (because treasuries until recently have yielded next to nothing). They’re working to update and upgrade the website now that people are buying t-bills again.

[@DiamondNestEgg]

Correct - you can call them or when they email you about placing the order, there is a link in there to cancel.

[@gousheng1234]

@@San_Dee Thank you for the answer

[@gousheng1234]

@@DiamondNestEgg Got it. thanks

[@stevel6220]

I've gotten the hang of T-Bills, but can you buy Treasury Notes on Schwab? Can't seem to find that poking around on there.

[@salahglobal3026]

What if I want to keep the tbill to maturity, do I still have to sell?

[@vannevar50]

If you hold to maturity Schwab automatically credits the proceeds to your account.

[@danhanson9101]

No

[@kindnesstoall]

Why did it look like the buy of the bill for 1000.00 look as if it was less the amount you purchased for which was 1 for $1,000.00 Maybe an error on my end but that's what it looked like. Will take a tour and try this process tomorrow. Thank you!!!

[@norcalpacific]

So in thjs video, you were only going to make 77 cents on the $1k of t-bills? You bought it for $999.33. Is that right, 77 cents?

[@stallingssandra]

Recently, I bought a t bill on TD Ameritrade. They charged a $25.00 fee. They said it was the auction charge. I don't understand.

[@SpaceClick]

I bought treasury bills at auction on TDAmeritrade in January and they did not charge any fees. Are you sure the ones you bought were new issue t-bills sold at auction? Did you use a broker or did you do it yourself on their website (they may charge for broker assisted trades).

[@DiamondNestEgg]

I think I've already answered this in another video, but per SpaceClick, you may have been charged if you called in & spoke to someone over the phone.

[@gabechavarin9190]

Can you show purchasing a T Bill on Wells Trade?

[@mikethomas7138]

i was able to buy 30 and 60 day tbills on TD ameritrade, is that no longer available on schwab

[@DiamondNestEgg]

It is - you just have to go after it's been announced

[@gerardomora7574]

I'm not sure what the advantage of doing the auctions vs. just doing a search of treasuries maturing at a certain month/year. It seems that by doing a search, it gives you an idea of what your APY will be, vs doing the auction, there is no information on either the E*Trade or Schwab accounts of what your APY will be (via Auction). However, by doing a search instead, the rates are right there. Different ways to skin a cat, I guess. The search by maturity date seems a better way to skin it though.

[@DiamondNestEgg]

This T-Bill 101 video goes into this further, but what you choose to do will depend on your personal situation: kzbin.info/www/bejne/qHfYmnZjirOYg8U

[@rnbsn777]

Can someone here give me advice on the 1 year t bill I have that matures in 10/2023. Should I sell before maturity to protect my principle? The debt ceiling has been reached so iam concerned.

[@jboy1757]

So on the Bill you purchased, how much will you make?

[@DillyDogSays]

Why does a 4 week T bill state the interest rate is 3.86% yet you do not earn that much in 4 weeks???

[@DiamondNestEgg]

Investment rates are typically quoted on an annualized basis

[@phineas737]

The annualized interest rate is given to make it easier to compare the interest rates of treasuries that have different maturities (i.e. 4wk vs. 8wk etc.)

[@lesliephillips2985]

Also gives you the annualized so you can compare it to other vehicles like cds.

[@tedmanuel6963]

As the others have pointed 3.86% is annual rate and since you are holding for 4 wks, your interest is way lower 3.86% x 4/52 = 0.3%

[@tonymosley6951]

Just look at as credit card cash back rewards... It starts adding up if you stick with it.

[@vivisimonvi]

I know this may go against a lot of the investment wisdom of "don't put all your eggs in one basket," but t-bills seems almost too good to be true currently. Frankly it's the only thing that makes sense to me but unfortunately only thinking short term (when I should be thinking long term).