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Treasury Bills 2022: How To Build A T-Bill Ladder (Bond Ladder | CD Ladder) 

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Want to see my $60,000 Treasury bill ladder (Fidelity) that I just built? In this video: “Treasury Bills 2022: How To Build A T-Bill Ladder (Or Bond Ladder | CD Ladder)”, I’ll explain what is T-Bill ladder & show you our Treasury bills investment strategy, including:
1) Which T-bills we bought & why
2) What Treasury bills’ interest rates we got
3) What factors we considered when choosing treasury bills vs bonds &
4) How these factors that we used for our T-bill investment might be able to help you answer similar questions around how to build your Treasury bill ladder, how to build a bond ladder or how to build a CD ladder
CORRECTION - at 0:09, we meant 13-week T-Bills (not 12-week)!
TipsWatch article on laddering: tipswatch.com/2022/09/21/short-term-treasurys-even-more-attractive-now/
Check out the latest Treasury yields here: home.treasury.gov/
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📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details!
⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf
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26 сен 2022

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Комментарии : 721   
@DiamondNestEgg
@DiamondNestEgg Год назад
📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details! ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters ⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf ⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 ru-vid.com/show-UCnexoc6tvesvcCEzZhmI-Agjoin CORRECTION - at 0:09, we meant 13-week T-Bills (not 12-week)! Published this one a bit too quick! In any case, thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances. Everyone's financial journey is different. If you wish to set up a consultation call & discuss whether we can help you on an individual basis, please complete the Work With Us form on our website: www.diamondnestegg.com
@JC-li8kk
@JC-li8kk Год назад
Thanks. If my wife can’t get her TD account unlocked by October 28th (form 5444 is in the mail) can I buy her I-Bond as a gift in my TD account & then transfer it to her TD account once it’s unlocked?
@blippacg
@blippacg Год назад
Can you confirm, the rates you give for your T-Bill investments are annual numbers, correct? So if you're getting 3.5% that's for a 12 month term?
@stephaniedewitt8976
@stephaniedewitt8976 Год назад
How do you reinvest the 4 week funds into the 13 week t bill on treasury direct?
@rb5061
@rb5061 Год назад
When do you believe that the 10-year T-Notes will peak in 2023?
@randomweirdo123
@randomweirdo123 Год назад
Your channel is absolutely amazing. I really wish I had found your channel 15 years ago. But, better late than never. Thank you so much
@joelsarchitectureresearch
@joelsarchitectureresearch Год назад
Thank you so much. You are my favorite finance youtuber right now. Keep it up!
@msheehandub
@msheehandub Год назад
Just found this channel and instantly connected with your information! Binge watching now! Thank you!
@thomasborda2145
@thomasborda2145 Год назад
You're one of the most clear and concise speakers I've ever watched. Great vids. Thanks.
@shoofly529
@shoofly529 Год назад
Another excellent video! And as @Michael McLaughlin posted, you, " always make sense and your illustrations are spot on."!!
@nicholegordon1370
@nicholegordon1370 Год назад
Thanks so much for your educational videos! So super helpful and much better than financial institutions videos/articles.
@sullytyler7514
@sullytyler7514 Год назад
Thank you for this video! So helpful. I was so confused. Now, it makes sense!
@michaelavery3964
@michaelavery3964 Год назад
Dude! Suze Orman just gave a huge shout out to your channel. I was just dying when I heard it! I'd love to be a fly on the wall at your dinner table tonight. (And she's right. Your tutorials are top notch. You're an excellent teacher)
@guyh39
@guyh39 Год назад
thank you. So helpful, as I am researching on getting into t-bill as well into i-bond .
@terrywatt4617
@terrywatt4617 Год назад
Thank you for this carefully explained application on T-Bill laddering!
@melanievongersdorff575
@melanievongersdorff575 Год назад
Your videos are great! Thanks so much!!
@timw491
@timw491 Год назад
Really helpful Jennifer. Heard of CD ladder, but not of T bill ladder. Appreciate your describing the process so well.
@dennehygroup
@dennehygroup Год назад
I'm so happy to have found you! Thank you so much for your expertise in this matter. EXACTLY what I was looking for during this economic uncertainty!
@ciao4two
@ciao4two Год назад
Great video! .....just what I was waiting for. 😀
@goof260
@goof260 Год назад
Great videos. they have helped me learn and helped push me to pull the trigger on Treasury purchases.
@Dividendless
@Dividendless Год назад
Excellent content. No BS, just data for the long term serious investor. Thank you!!!
@deborahdavis3147
@deborahdavis3147 Год назад
Excellent Video! Perfect for these volatile times.
@cookmaster3626
@cookmaster3626 Год назад
Thank you. You are the TRUE DIAMOND advisor on Fixed Income T Bill investing.
@alvarobarakat1050
@alvarobarakat1050 Год назад
You are a trove of good information. Thank you!
@wtrskiegllk1
@wtrskiegllk1 Год назад
Love this channel. Great job and thank you.
@hrhsophiathefirst4060
@hrhsophiathefirst4060 Год назад
You do an admirable job of researching and explaining these opaque means of investing. I have done CD ladders in the past when they were profitable and will set up a T-bill one for some of my cash on hand!
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you're enjoying our videos!
@Satipatthana2
@Satipatthana2 Год назад
Once again, thank you so much for your investment advices! Love it!
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video
@fresh_mornings
@fresh_mornings 2 месяца назад
Crarity is POWER! thank you for clarity woman!
@ilu8409
@ilu8409 Год назад
Thank you Jennifer for your step-by-step lesson on T-Bill laddering. I just made a purchase of a 26-week T-Bill on Fidelity. Watching for interest rate and set to buy another 26-week T-Bill in November.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing
@britbaber603
@britbaber603 Год назад
Love your reasons for investing in your maturity rates. I also prefer flexibility and liquidity in this current market.
@jimsweeney7339
@jimsweeney7339 Год назад
As always, great video, just started something similar in 15k increments last week using 8-week duration to begin with. Was pleased to see this tonight!
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video!
@apakabar9022
@apakabar9022 Год назад
How did u start it?
@mariceldb2990
@mariceldb2990 Год назад
Thanks for the detailed explanation of treasury bill.
@tariqaziz3486
@tariqaziz3486 Год назад
This is such good content!!
@Vaughnny
@Vaughnny Год назад
Someone on reddit suggested a T-Bill Ladder to me, so I found your video on RU-vid and now I know what he was talking about. Very helpful, thanks. You talk a bit slow so I watched your video at 1.5x speed and it was the perfect speed lol
@jimroberts6176
@jimroberts6176 Год назад
You do a great job of explaining things. I'll be doing this at Vanguard asap
@nancyyoungs933
@nancyyoungs933 Год назад
You gave me the confidence to buy a T bill from Treasury Direct! I like the 13 week and I am thinking of building a ladder using 13 week T bills! Thank you!!!
@DiamondNestEgg
@DiamondNestEgg Год назад
You're welcome - glad you enjoyed the video!
@morganzoeclanthem2847
@morganzoeclanthem2847 Год назад
Great video, which I had seen this before I bought mine!
@eradicator187
@eradicator187 Год назад
Another awesome video 👍
@PA28-181
@PA28-181 Год назад
You’re giving solid advice. Great channel.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for watching!
@frankguzzone827
@frankguzzone827 Год назад
Great insight here thank you
@TheWinghochui
@TheWinghochui Год назад
Thanks for your sharing!
@dsd265
@dsd265 11 месяцев назад
Fantastic content. Thank you!!!
@kasharaspivey967
@kasharaspivey967 Год назад
Wow!!! This was very informative thanks
@spalover3
@spalover3 Год назад
This is such a help for most of the population!!! Thank you!! I sent this to all of my single lady friends!!!
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing!
@michaelmclaughlin1958
@michaelmclaughlin1958 Год назад
Recently done something similar. Bought 3mo, 6mo, 9mo, and 1 year treasuries initially. Intent was to take maturing instruments to 1 year duration. Recently I also added some 2 year durations too. My time horizon isn’t for years and I have only invested about 20% of the usable cash. Love your vlogs. They always make sense and your illustrations are spot on.
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you‘re enjoying the channel & thanks for sharing!
@kellymulderino7156
@kellymulderino7156 10 месяцев назад
yeah but how profitable is this strategy really?
@tmack5853
@tmack5853 Год назад
Thank you for your simplified explanation. My children are required to subscribe to your channel
@Joe-dc2qo
@Joe-dc2qo Год назад
Great content 😊
@chickenwingwingwing
@chickenwingwingwing Год назад
+1000% to the other comments here, super helpful content and no bs. I saw on Schwab they offer a predefined Treasury ladder (you can customize # of rungs and time commitment), would be grateful if you can spin a video to explain this further! Thanks again
@DiamondNestEgg
@DiamondNestEgg Год назад
Ok - it's on the list!
@fraa888grindr6
@fraa888grindr6 Год назад
A great video. Thank you very much. Would really enjoy a follow-up video with math.
@Zebra663
@Zebra663 Год назад
Very nice content! Thank yoh
@1linkbelt
@1linkbelt Год назад
I have been investing in T Bills as per the article you spoke about and it works just fine for me. I have moved money from my 2 credit unions into this investment. I buy directly from TD. (Your video explains this procedure very well,)
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for the feedback!
@johnc7279
@johnc7279 Год назад
Just an FYI Suze Orman thankfully recommended your channel on her most recent podcast.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for letting us know!
@xst9880
@xst9880 Год назад
Great, I'm glad Suze is watching these videos, she could learn a great deal from the Professor 🤣
@kindnesstoall
@kindnesstoall Год назад
She certainly did! Apparently Suze Orman has a huge following! She's great!
@kindnesstoall
@kindnesstoall Год назад
@The Pascha Bunny really? You must have had a bad experience.
@julhe8743
@julhe8743 Год назад
@The Pascha Bunny why? Please could explain the reason? Ty
@chriss3625
@chriss3625 Год назад
I have my emergency fund in 52 week T-bills… 12 of them… every month I reinvest for another 52 weeks… I feel better knowing if I ever lost my job I could get by for a year. Plus I don’t pay any state tax on the interest…
@tr7287
@tr7287 Год назад
You earned a subscriber.
@rajdevaraj6296
@rajdevaraj6296 Год назад
Excellent video. Very easy to follow and you have explained the required details that a layman can follow without cluttering. I already invested in Tbills at brokerage and treasury direct account also opened for future use. Thanks and appreciated.
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad it was helpful
@tomm.8892
@tomm.8892 Год назад
Checked this morning ... Vanguard Federal MM has a 7-day SEC yield of 3.3%+. Currently, it's a great place to hold your money while building your ladder.
@seattlemichele664
@seattlemichele664 Год назад
I just found your channel a couple of weeks ago as I am new to fixed income investing and greatly appreciate your explanations! I am now a short term bond holder with more orders placed. Thank you!!
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you‘re enjoying our videos!
@duc6612
@duc6612 3 месяца назад
Great video. Ladder and flexibility are great method.. Thank you
@JoeSouth67
@JoeSouth67 Год назад
Thx, i am planning on doing at least a 6k t-bill ladder! Thx to you, I bought some I bonds at 9.6x%.
@DiamondNestEgg
@DiamondNestEgg Год назад
You‘re welcome!
@nancyyoungs933
@nancyyoungs933 Год назад
Since my 13 wk T bills are maturing I have been buying 17 wk T bills! I like the higher rate yet the 17 wk are fairly short term (just in case). Thanks for giving me the confidence to do this and make more money than leaving it in the bank earning practically nothing! Not sure if I will purchase I bonds for 2023.
@linneisenhower2571
@linneisenhower2571 Год назад
Great channel !!! How about GSE’s vs cd or treasuries ?
@roger47th
@roger47th Год назад
Thank you, please let us know when you decide to go longer term.
@karenk3593
@karenk3593 Год назад
I really appreciate the graphics and explanations. I don’t understand the Tips Watch ladder. I wish they would have included an example. But I’m basically doing what you’re doing, and putting the funds that are waiting to go into the next step of my ladder into shorter term tbills instead of just waiting in the bank.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing Karen!
@kenstanczak3159
@kenstanczak3159 Год назад
All Great videos! Regarding the purchase of new issue CDs: Just wondering if any of your videos address the issue of which sponsoring banks to avoid or if there is any way to judge the relative financial stability of a sponsoring bank when selecting a CD for purchase?
@laurasamaniego5937
@laurasamaniego5937 Год назад
Hi Jennifer, Awesome content! I just found your channel. Love your dimple easy way to explain T-Bill laddering. I am know at this and very nervous to try it, but your explanation put me at ease. Inflation is eating up my cash and this is a great alternative. Thanks
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video
@kayab5827
@kayab5827 Год назад
Hi Jennifer. I love your dimples too...and your great financial educational channel!!
@aaronwilliamson4045
@aaronwilliamson4045 Год назад
Great presentation... my thinking entirely.
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video!
@tonle1830
@tonle1830 Год назад
This is amazing. This is gold. I’m implementing this exact strategy now. LOVE it! Thank you!!!
@DiamondNestEgg
@DiamondNestEgg Год назад
If it works for your situation, that’s good to hear - glad you enjoyed the video!
@jcchelsea
@jcchelsea Год назад
great video, going to buy my first T-bill today
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video!
@vencebuchanan
@vencebuchanan Год назад
fantastic strategies! I will definitely follow these tips when buying my T bills
@DiamondNestEgg
@DiamondNestEgg Год назад
Is there any video you haven't watched yet on the channel :-)
@vencebuchanan
@vencebuchanan Год назад
@@DiamondNestEgg lol 😂 Yes there's more to explore.
@tmack5853
@tmack5853 Год назад
Thank you for your simplified explanation are required to subscribe.
@snowlion777
@snowlion777 Год назад
You are awesome lady!) I truly enjoyed this video. Excellent explanation, please and clear. I am right now choosing between T-bills and I-bonds. What would you recommend?
@DiamondNestEgg
@DiamondNestEgg Год назад
Stay tuned - this vid will out in a bit
@productivecough7148
@productivecough7148 10 месяцев назад
Question: Based on the Treasury Direct schedule, 4 and 8 week bills are both auctioned off on Thursday's of each week and 13 week bills are auctioned the following Monday. To maintain the 4 week spacing you mentioned, after your 13 week ladder gets rolling, you should buy on these three days bunched together and not space these purchase dates out...correct? Great channel by the way!
@kensalome483
@kensalome483 Год назад
Keep these helpful videos coming! I'd appreciate a deeper dive into annuities.
@DiamondNestEgg
@DiamondNestEgg Год назад
I’ll add it to my list - what specific questions do you have in mind? I ask because we already have a few annuity videos on this channel so want to see what I should dive deeper into. Thanks.
@kensalome483
@kensalome483 Год назад
@@DiamondNestEgg Subjects such as: Can an annuity funded with money from an individual IRA designate both a husband and wife as the annuitants where payments are made while either are alive? (Similar to a company pension.) If yes, the pros and cons. Will annuity payouts be more attractive with higher interest rates. Does an inflation rider make sense? Laddering annuities in higher inflation periods? I purchased an indexed annuity that has not be annuitized and would like explore any/all options when/if I do. Your channel is terrific. I recommend it to everyone I know looking to investments. You do such a great job of breaking down, simplifying and explaining the pros/cons, etc. You have a gift for it.
@helenpeng8679
@helenpeng8679 Год назад
@@DiamondNestEgg, thanks for the video, learnt a lot on T-bills. I would also like to have a comparison of T-Bills vs MYGA (Multi-Year Guarantee Annuity) which shows a 5.2% interest for a 3-year term (min $20k investment).
@jcspaziano
@jcspaziano Год назад
This is awesome! Seems like a great way to dip my toe in to T-Bills
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video
@nuevegasti
@nuevegasti Год назад
In your 26-wk ladder example, where you buy every month for the next six months, I would suggest that on your first month, buy 26-wk using 1/6 of principal and buy 4-wk using 5/6 of principal. On the second month, your 5/6 P becomes due. You then keep rolling your 4-wk P until it is consumed buying the 26-wk bills. You may also introduce 13-wk buys. Not entirely 4-wk buys while waiting for the 1/6 to become in play.
@blue-fj9ky
@blue-fj9ky Год назад
I'd be interested in a video on the pluses and minuses of buying short-term commercial paper instead of T. Bills and T. Notes. Thanks again. I appreciate your clean, direct style!
@DiamondNestEgg
@DiamondNestEgg Год назад
Noted - thanks for the video idea
@rightangletriangle3188
@rightangletriangle3188 Год назад
Thanks for sharing. I have built a CD/T-bill ladder. Choosing CD sometimes is the expiration date I want, typically they expire before the FOMC meeting. I'll compare CD and T-bill rate for the same duration and buy whichever is higher interest rate. So far T-bill wins. My overall duration is short, the longest one is 6 months and have equal amount expiring each month. I also look for deploy the cash into equity, mainly S&P 500 index ETF. I believe next year it can go down to about 3000 if Fed doesn't blink. I'll wait for Fed blinks before buying in. Equity PE is still high if we are looking at a recession, it should be around 14, 15.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing your strategy with the community
@TheRetirementTrainStraightTalk
Thanks, I purchased a 75K treasury ladder last week and getting ready to purchase a I-bond for 10K
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing!
@tomwest3878
@tomwest3878 Год назад
Exceptionally well done! Never did I think I'd be buying T Bills...but here we are!
@danflaherty1132
@danflaherty1132 Год назад
Same here. Cashed in my bleeding bond funds and started my first ladder today. This was done inside my IRA so no tax consequences.
@markhayes9130
@markhayes9130 Год назад
@@danflaherty1132 Could you explain "done inside my IRA"? Are you referring to moving money from an IRA directly to T-Bills? Does that not require a withdrawal from the IRA...which is then taxed? Thank you for your time. Newbie here!
@danflaherty1132
@danflaherty1132 Год назад
@@markhayes9130 No problem. My IRA is in a brokerage account. So I just sold bond funds within the IRA and bought T-Bills within the IRA. As long as no money leaves the IRA, no taxable withdrawal exists. Similarly there are no tax consequences from capital gains from selling the bond funds, nor T Bill interest earned within the IRA, until withdrawal.
@perkycloud
@perkycloud Год назад
Excellent video- this laddering strategy is what I've been building up as well. Except that I'm doing them with 52-week T-bills that expire every month.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing!
@visionpiping1048
@visionpiping1048 Год назад
Diamond, what do you think?My 22 year old daughter starts paying me $500 a month rent in January. After seeing this maybe I will open a joint account with her, and she could buy a $500 52 week T- bill every month. When she moves out, if no emergencies arise, she could just have that money for her future. She already has investments going in the market. Channel is wonderful! Thank you
@peipeitan7557
@peipeitan7557 Год назад
I actually discovered your channel because of TIPs Watch (and who can resist chicken McNuggets...?)!
@blippacg
@blippacg Год назад
Good info, thanks for posting. I'm parking cash in CDs right now (brokered through Vanguard). Will look at more of your videos and the article you linked to understand T-Bills better and their benefits compared to CDs. Kind of seems very similar between the two. My goal is to realize better rates and returns than I can get at my bank. I hate banks.
@DiamondNestEgg
@DiamondNestEgg Год назад
T-Bills generally offer tax advantages over CDs
@nancyyim1266
@nancyyim1266 Год назад
Interestingly, because those T-Bills are 13 week and not 12 week bills, one of the intervals between rungs on the ladder will be 5 weeks instead of 4 weeks. Thanks for the video, it confirmed some of my own thinking in a much quicker and clearer way than the circuitous journey I took to get there. And thanks for the link to the yield projections.
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you enjoyed the video
@hlaulis
@hlaulis Год назад
Amazing content! I'm going to implement your strategy :)
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad the tutorial was helpful
@hlaulis
@hlaulis Год назад
@@DiamondNestEgg One question....when doing the ladder, should they be set to auto roll? My guess is no since we would want to manually reinvest the 4 and 8 week t-bills into a 13 week. Is that correct?
@maabrahams
@maabrahams Год назад
Hi! Great videos: thank you! Here's a question re: T-bills I have if you're looking for video topics: Assume I do not need access to any cash for a full year & assume all bills will be held until maturity. Which strategy will result in best return at the end of a year: A 4-week Tbill bought and rolled over 12 times. OR a 52 week Tbill. I'm guessing the answer is different depending on how rates rise and/or fall during that time period... Hmmm
@MarkFillmore
@MarkFillmore Год назад
Great content - will give this a whirl :)
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad you liked the vid
@michaelbrennan7148
@michaelbrennan7148 Год назад
Thank you
@blue-fj9ky
@blue-fj9ky Год назад
Today I loaded the boat with 13 week bills. The yield beats my broker's interest rate on cash and money market funds. Will evaluate again when they mature! Thank you for the expert opinion and perspective!
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing!
@dbk9555
@dbk9555 Год назад
Thanks !
@angela.lindstrom
@angela.lindstrom Год назад
Thank you so much for breaking down the mystery of T-Bills in very understandable format. I've never bothered with such a "boring" asset until recently when interest rates are enticing, especially considering the current stock market. My first ever T-bill (auto-roll) will mature in a couple of weeks. I'm wondering how quickly Fidelity re-invests the proceeds. In looking at the Treasury's auction and settlement dates, it can be several business days for a purchase to settle. I assume the same in redeeming T-Bill. That being the case, if you are auto-rolling 4-week T-Bills throughout the year, you can lose weeks and months of precious days of earning yield. Can you share your experience on Fidelity?
@angela.lindstrom
@angela.lindstrom Год назад
OK answering my own question above. With Fidelity autoroll, there is no lag. For example, my 4-week T-Bill matures on 2/7, the autoroll feature was going to re-invest in the upcoming auction on 2/2 with an issuance date of 2/7 (forgive me if I don't have the exact dates correct). So you get to purchase the next T-bill before your current one matures and settles. I actually canceled my autoroll the night before the auction and tried to use the same upcoming maturing T-bill proceeds to purchase a longer maturing T-bill with auction on 2/2. Fidelity would not allow me to do that due to insufficient funds. I called Customer Service who could not clarify the funds availability timing if not using autoroll. Anyhow based on this experience, I think having autoroll is really important to reduce the lag in fund settlement and availability for new investment. I'm considering avoiding the 17 week T-Bills since Fidelity does not yet supported autoroll for it.
@shoofly529
@shoofly529 Год назад
@Susan Sounds like a good plan to me. The bond market has been 'fluctuating' since Jennifer's post to say the least! With this environment, "staying short" is the way to go... with your extra $$ not in your emergency fund or retirement fund; essentially the $$ leftover in the bank account earning .01%...
@sandrahoward5512
@sandrahoward5512 Год назад
Thank you! I’m investing $1,000 every week into 13 week T-Bills.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing!
@freddy4ification
@freddy4ification Год назад
This was super helpful, I appreciate how clearly you showed your reasoning. So now I am wondering, since you intend to maintain the ladder as long as interest rates are rising, where do you pivot your short term investments when rates peak and then begin to fall?
@DiamondNestEgg
@DiamondNestEgg Год назад
I'll let the community know when the time comes - it's too early to start thinking about that now
@digdoug9678
@digdoug9678 Год назад
I'm guessing you would take advantage of a rising economy by buying stocks, ETFs, etc.
@TheNewCarryTrade
@TheNewCarryTrade Год назад
good strategy...I've been doing the same...for the same reasons.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing!
@WhittyPics
@WhittyPics Год назад
One strategy that can be employed is to take the interest off your tbills and buy call or put options on the stock market as a risk free way to invest in the stock market. I would buy calls at least 90 days out with around the money options.
@longhorn99
@longhorn99 Год назад
What would you recommend for someone with large cash position but needs liquidity to occasionally fund hard money bridge loans or Mezz debt between $500k-2.5m per loan? I may see one deal a month or so but often see multiple funding deals near end of year.
@xtctrader1467
@xtctrader1467 Год назад
I've constructed my T Bill ladder with a maturity each month for the next 6 months. When one matures, I roll out 6 months. Since the new one is bought at a Discount, I take the difference (currently about 2.25% of the Face Value) and invest in a Stock Index ETF (Dollar Cost Averaging)
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing
@Me-xm4tg
@Me-xm4tg Год назад
Thank you for all your advice. So to get the 5.25% not 5.12% you must roll over to another 6 month or comparable CD . Is that correct. Thanks again for all your great content .
@xst9880
@xst9880 Год назад
Expecting the inflation to jump once the US oil reserves are depleted. I think I'm going to hold off until end of Oct 2022 (expected depletion date) before deciding on t bills investing. Great video as usual 😀👍🏽
@DaniElle-di4ho
@DaniElle-di4ho Год назад
If you invested in 4-week t-bill you could be making money in the meantime though
@TheRetirementTrainStraightTalk
@@DaniElle-di4ho Yes, I agree. Timing the market is never good
@goofball6180
@goofball6180 Год назад
So are you just sitting in cash while you wait?
@xst9880
@xst9880 Год назад
@@DaniElle-di4ho done! Thank you! Just bought the 6 week t bill with a ytm around 2.8% 😀👍🏽
@DiamondNestEgg
@DiamondNestEgg Год назад
You guys are great - I really appreciate how you support one another here!!
@scottenglish1588
@scottenglish1588 Год назад
Hi Jennifer your channel is awesome, thank you! I have a question. When purchasing T-Bills to build your ladder from treasury direct at the end you're asked if you want your funds at time of maturity to automatically reinvest. I'm not sure what to do. Any advice?
@DiamondNestEgg
@DiamondNestEgg Год назад
That really depends on you & what you’re investing strategy is - if you want to reinvest your funds, then select yes. If not, select no.
@taloweryus
@taloweryus Год назад
FYI, Charles Schwab has a fixed income ladder builder tool that looks pretty interesting. It lets you pick between CDs and Treasuries. You can pick from one of their predefined ladders or set up your own. The DIY options looks pretty flexible and detailed. Note, this is not an endorsement as I haven't actually used it to set up a ladder. Just thought you all might be interested.
@DiamondNestEgg
@DiamondNestEgg Год назад
Thanks for sharing Tim
@alena9887
@alena9887 Год назад
Thanks so much for your clear, concise explanations. I didn't see anything about adding a beneficiary when buying T-bills through Fidelity. Would the beneficiary on my regular Fidelity account carry over automatically to the T-bills?
@DiamondNestEgg
@DiamondNestEgg Год назад
Yes, the beneficiary/ beneficiaries are set at the account level with Fidelity.
@user-gq4wy3xw5k
@user-gq4wy3xw5k Год назад
Thank you, Jennifer, for your very informative videos. Are you going to manually reinvest upon each maturities? Or did you set up "ladder builder" or some sort with your brokerage for automatic reinvestment?
@DiamondNestEgg
@DiamondNestEgg Год назад
In my first example, for the 4 & 8 week T-Bills, I have to do it manually. Once it gets to the 13-week(s), I can auto-roll/ invest via Fidelity.
@user-gq4wy3xw5k
@user-gq4wy3xw5k Год назад
@@DiamondNestEgg That makes sense. Please keep us posted on your progress. Btw, opening TD account and buying I-Bond for me was quicker than ordering a Frappuccino. It was a pleasant surprise!
@DiamondNestEgg
@DiamondNestEgg Год назад
Glad it was pleasant!
@terriabbott1374
@terriabbott1374 Год назад
Hi Jennifer, would you do a video explaining annualized interest with 3, 6, 9, and 12 month CD's or T-bills and how that compares to keeping money in a money market account that is currently above 2%. When it is really more advantageous to get that short term CD or Bond?
@DiamondNestEgg
@DiamondNestEgg Год назад
I’ll add it to our list - thanks
@danflaherty1132
@danflaherty1132 Год назад
MM accounts are completely liquid, but offer less yield. CDs and Bills will tie up your cash. Also the interest from T-Bills is tax-exempt at the state level.