T-Bills versus CDs | Guaranteed 5%
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- Опубликовано: 14 окт 2024
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T-Bills versus CDs | Guaranteed 5% - In this video I explain what T-Bills and Treasury assets are, and I also define CDs, or certificate of deposits. I go into detail on how to buy treasuries and CDs and things to watch out for. I then provide the latest rates on both of these assets, and finish off the video providing Pros and Cons for each item to help give enough details for others to make an informed decision that is best for him/her.
#bestcdaccounts #highyieldsavingsaccount #investing101 #investingforbeginners #passiveincome #wheretoparkcash #ibonds
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All opinions expressed by Brian are solely provided as content. Do not treat any opinion by Brian as gospel that needs to be recreated. Brian is not a fiduciary or financial advisor. All financial topics are for illustration where the outcomes are not guaranteed or expected. There exists real risks in all forms of investment, so do your homework and make your own decisions.
A viewer asked that I share the sites I use for looking up CD rates. I predominantly use two sites, SaveBetter and The Annuity Expert. I will be very direct and state that SaveBetter is an affiliate link and The Annuity Expert is NOT an affiliate link. I simply want to be transparent. Like anything else when it deals with financials, look around for the best option for you.
The Annuity Expert: www.annuityexpertadvice.com/rates/cd-rates/
SaveBetter: save-better.sjv.io/Py00bj
I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my portfolio for retirement. I'm seeking to invest $200K across markets but don't know where to start.
Due to the ongoing war between Israel and Palestine, the stock market is a huge mess right now, I will suggest you invest in cryptocurrency for a successful long-term strategy and most importantly you have to seek guidance from a broker or financial advisor.
With the help of an investing advisor, I diversified my $400K portfolio across markets, and I was able to earn over $900k in net profit from high dividend yielding equities, ETFs, and bonds.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Thanks, I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get.
@@NotyourBusiness-urto6 I googled her too and its a scam. Be aware!
I found buying from Treasure Direct a very easy experience. Conversely, just to open a CD, Discover Bank makes you jump through ridiculous hoops -- even requiring a notarized statement from your local bank! Just ridiculous!
Learn Friedaannellis she will teach you step by step
I tried T-Bills. When it matured I just received my money back. No interest. I used Charles Schwab. Thank you
The difference between what you paid and the face amount is the interest.
@royharper2003 is correct. T-bills are purchased at a discounted price. I believe I reviewed it in the video. If not, I have other T-bill videos that discuss it. If you buy a $100 T-bill, you'd actually pay something like $95.50 and then at a 1 year maturity you'd get the full $100. I can see how that would be confusing when you see the statement, but you need to look at what you initially paid.
Great video I’ll subscribe to your channel! Question, do you have to pay short term capital gains on CDs if they mature within less than 12 months?
It is not considered short-term capital gains, it is considered interest income and taxed at your normal income tax level. I may not have covered that in this video, but I do review it in many of the other videos. Thanks so much for the comment and question.
I subscribed...............so if you live in a no state income tax state, a higher CD rate is the way to go?
You got it! Glad you subscribed and I hope my content treats you well.
Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 50 and my wife 44 we are both retired with over $3 million in net worth and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income
What do you invest in skoop?
@@Alexedmartin.Okay Martin, so generally speaking, investing calls for more knowledge. For this reason, it's crucial to have a strong support system (financial counselor) to lead you through, particularly while choosing assets. I work with Regina Louise Collaro, a registered wealth management company's partner investment advisor. For the record, it has been the best experience for my finances. You may have heard of her because of how well-known her services are.
She helped me become financially solid through investment, and now I profit from her passive income strategies on a monthly basis.Therefore, I'll suggest that you choose a reliable investment advisor for yourself.
I value your recommendations Skoopqueen. It's challenging to locate a trustworthy person. I could really use your investment advisor after seeing how much money you've made through investing. If you don't mind revealing her information, that is.
You can easily find her details online by searching her name. She even got featured on CNN recently, she's quite easy to work with irrespective of your location
You are correct, and I am only one of many who gained from working with Regina Louise Collaro. I had no reason to live when I lost my job due to COVID in 2020, and it will always be a memorable year in my life. Regina made it possible for me to live comfortably through passive income, thus I owe her my life. To be completely honest, I think she is an angel who was sent to help those who are struggling financially.
I got involved with treasuries a year ago, enticed by the 9.62% offered. My wife and I bought $10K each and also gifts to each other. Since I been experimenting with T-Bills. I bought a variety of T-Bills different amounts and maturation dates. Ugh that required close monitoring. I settled on 17 week and set up a ladder. Later I added an 8 week ladder. Recently with the inversion, 4 wks hit 5.96% so I bought some of them. I agree that treasury direct has a learning curve but I have learned my way around and prefer it how my brokerages handle treasuries. I use Excel to track them and developed a pretty nice spreadsheet that makes it easy to see at glance when they are about to roll (reinvest). I live in Texas so the local tax break isn't helpful in my case. Keep up the good work.
That is fantastic! You are doing great with your treasury expertise. It's like anything if you get in there and learn it and go over it time and again, it becomes second nature. But for someone new attempting it for the first time, I'm not going to lie, it is slightly intimidating. Good for you for creating your own spreadsheet, as I respect that a great deal
you bought Ibonds with a limited variable yield. the other "bonds" the interest rate is fixed.
@@gg80108 I am not sure what your point is. I went with I-Bonds last year because the rate for 6 months was very high. Since those purchases I looked into T-Bills. My current feeling is that I-Bonds aren't presently as good of an option for me. I probably won't buy more. They have too many conditions and lack flexibility, particularly with the$10K/year cap. T-Bills are currently a bit better than bank interest (Marcus is paying 4.15%).
@@gbinman after June 15 rates will be higher for short term. Ibonds will be tied to a lower rate for a long time, probably 8yrs when the inflation cycle returns and these will lead again. The ibond play was over 2 yrs ago, newbies were a year late.
@@gg80108 I do understand that. After I-Bonds, I invested 8 tranches in a 17 week T-Bill ladder, followed by 4 tranches in a 8 week ladder. Recently 2 tranches in 4 week and yesterday 2 tranches in another 4 week.
My banker introduced me to Treasury ladder and we invested around 3 months ago. I am not seeing much of a growth there. Upon asking the banker mentioned the investment is in medium term and I am need better returns I should do short term.
I know you can’t give financial advice but what will you do in this case. Sell medium term and buy short term?
Your info is good, definitely. I've invested in some of these.
As a recently new user, Treasury Direct seems fairly self-explanatory to me... I'm not sure why everyone trashes it, lol. I agree, brokers have that additional flexibility. Thanks for the info
Glad to hear you've had a good experience. They recently updated their site about 4--5 months ago, and it is light-years better than it was.
Wait until you make ANY Bank changes or need to make ANY changes. THEN you will see why every tells it is is abysmal!
@@rightwingprofessor1356 They fixed that a couple of months ago.
The virtual keyboard where you have to key in your long secure password by mouse is painful.
@@Trust_but_Verify That's gone now.
Are the best CD rates you listed call protected? Thanks!
Excellent advice
Glad it was helpful!
Is CD considered as portfolio interest income in the viewpoint of IRS? I think US T-Bills, Notes, Bonds are classified so.
Brian what is the value of our holdings if we keep raising the debt ceiling?
What do we need to do as a nation?
Kicking the can down the road will end with us kicking the bucket...
Sadly that's a philosophical question that I am the last person to be qualified to answer. It's a sad state of affair.
I buy both.If I get 5% for 2 yrs which was there few months ago I would buy it
You're spot on. Good on you.
Might be a dumb questions, but why do the APYs for the treasuries decrease as time goes on. My initial thought is that the longer you have a bond/note for the higher the interest "should" be because you have more locked away.
The yield curve is currently inverted, which often signals a recession. You are correct, during more normal/healthy economic times longer duration bonds tend to pay higher interest rates.
I am someone who graduated from adult school in a little time in college, and then went on to my own small business. I have had to learn about business, the hard way basically just reading papers and magazines before the Internet. I do have money and property, equity and treasury bills, and a little precious metal very little. I think the best way to be with investing is make sure that you are diversified and I have thoroughly enjoyed working with treasury, direct. Anywhere that you can go and buy investment vehicles with no commissions, and nobody looking out for themselves instead of you. That’s a good thing.. I have a lot of stock in my stock investments are down, so I have learned to invest in treasury bills, and I bonds. I am not the smartest person in the world, but thanks to the Internet. A lot of people who may have not understood finance can learn about finance by watching videos like yours. I want to repeat I already knew everything that’s on your video but I did like your video
As you state, depends on your tax situation. Cds are better in a non-taxable account. But treasuries are not taxed by the state or local income taxes so might be better in taxable accounts.
I agree with you.
Yep. Living in a high tax state, that is one of the reasons I purchase treasuries at Treasury Direct.
I keep hearing about the possibility of the US going into default if the debt ceiling isn't raised this summer. The question is, are T-Bills still a good option even with speculation roaming around?
I have to be objective, since I am not a Financial Advisor. There are a lot of opinions on the matter. If the US defaults, then it will delay the payment process for paying their bills. In this case, if you had a T-Bill maturing if/when the default happens it would delay you being paid. Anything is possible, but my opinion is that it is not probable. If the US defaults it has catastrophic impacts globally. Even politicians can't survive letting that happen. But my intent is NOT to be political, but merely to point out it is a political decision impacting the potential default.
That is BS...scare tactics from your favorite DEMOCRATS! There will be NO DEFAULT!
@@BusinessWithBrian YOUR being paid.
@@wholeNwon as someone who’s not payed. The real answer is, if the US defaults on its loans. You’re in so much more trouble than whatever money you lost.
@@tommyle3243 The word is PAID. Could it happen? Of course, it could. But the probability is so extremely low as to be nonexistent. There are much more likely potentially catastrophic events the possibility of which we live with every day. Worry about something else.
There are many banks online. How do I know whether a bank online offering great CDs is a legitimate bank?
You can look up their FDIC license on the FDIC site, and you can also look up their Moody's rating. The downside with Moody's is that they had given Silicon Valley Bank a high rating last year. The key item is that you absolutely want the bank/credit union to have insurance and you've verified that. You can look up reviews online, but it's so subjective. People may be coerced to give good ratings, and sometimes people give bad ratings for things that aren't important to you are me.
@@BusinessWithBrian This has been my biggest struggle with investing so far. Plenty of details available on rates, but the reviews on all of the banks is really poor! It's so hard to know who to give your money to. I'd love to see a video on trustworthy financial institutions (if there is such a thing!)
sCORED ME SOME t-bills just yesterday, might do more before the slow down
Way to go!
Thanks for your effort
I appreciate your comment
Does the return on a short term T Bill count as interest or capital gain?
I'd like to know this too.
@@SomeUserNameBlahBlah As I now understand, the return is treated as accrued interest, so, I don’t know for sure, but seems it’s exempt from state income tax.
It counts as interest income, and you get a 1099-INT Here's an article to give you more info: www.investopedia.com/ask/answers/013015/how-are-treasury-bills-taxed.asp
I looked it up. You pay federal income on the interest, but T-Bills are exempt from state and local income tax.
It's considered interest if held to maturity. If sold early, it's a capital gain (hopefully) and incurs state and local taxes.
How much do you save by not paying tax in CT is there a percentage u can use? When using treasures
Yes, but it isn't a straight answer. It depends solely on your income and effective tax rate for your state income tax. You may want to look at last year's tax return to give you guidance on your effective tax rate for your state. It will be different for each person due to their state, income level, and effective tax rate for their state. Hope that helps you on the path to your answer.
Also, if your money is in a tax deferred account, the state income tax isn't a concern since you're taxed only on withdrawals. Additionally, if you sell your Treasuries prior to maturity the income is classified as a capital gain, so state and local taxes are incurred.
What would be the interest earned on 26 Weeks CD for $10000 on 5% Interest ? just trying to make an informed decision
2.5% = $250.00
No offense, but did you attend elementary school?
Great video. The FDIC insurance is the same protection as US Treasuries - uncle Sam.
Agreed
Fyi. First horizon CD 11mo - 5.5. I don’t know if callable.
Neither one of these options offer a greater return than a well versed stock market investor that understands fundamental and technical analysis. Making well timed and wise investment decisions in the stock market (blue chips) is always the best choice to invest your money. (IMO)
Fair opinion. But what about when you are 70 years old and you can't risk a recession taking your investments down 35%? That safer 5% becomes more attractive. These options are also great if you need to park some cash for things like a renovation or a down payment. They won't make you rich, but they are safe and earning some money in the process. Everyone is at different stages in life, and have different needs. I recognize and respect all aspects. Thanks for the comment.
Vanguard has some awesome rates !
I agree, you just need to check often.
Really solid, thanks !
I appreciate the compliment! I'm still learning the video process, so I continue to get better.
Thanks for the concise and informative video. Please consider doing a video on rolling over a 401K that has both traditional and Roth IRA's. I can't seem to find information on this topic.
Great suggestion!
If a one month tbill offers the same yield as a 2 month tbill, is there an advantage to getting a 2 month tbill?
Well I think you've answered your own question. One is for one month one is for 2 months. Please keep in mind that even though they're the same interest rate it's annual percentage yield. Meaning they aren't making the same total interest payments. If it happened to be at 12% APY, the one month would earn 1% for that month. And the other for 2 months would earn 1% each month for those two months. Does that make sense?
@@BusinessWithBrian thanks
One CD.
Five CDs in my car.
The CD's (has) matured.
The CD's (possessive) rate is high.
I'm hoping for a haiku next. Thanks for the comment
Thanks for the breakdown. Very informative.
Can you pin a link to where you see the most current/highest APY for CD's? I google them but seems so many have different ones they promote more than others and seems very random and inaccurate. Thanks
I sure can. It's a constant challenge. I'll list the two areas that I use most and pin it. Thanks for the comment.
You can see it in Fidelity but only if you have an account there.
@07:03 - I don't think of the brokerage CD example as an APY, it's the coupon rate or APR since brokerage CDs don't compound.
@7:58 If you look at brokered CDs, they list them as APY throughout the documents. Coupon rates are the same as the fixed rate, and since they do not compound, then they are the same as the APY . I also have a separate video on brokered CDs where I walk thru all the details. ruclips.net/video/k206NBcB1fo/видео.html
@@BusinessWithBrian They do refer to it as APY, which is correct, but it's also APR. So when you're shopping brokered CDs vs bank CDs and comparing them, it's best to compare the APR. That's why I think of it as APR. In other words, a 5% brokerage CD (coupon, APR, APY are all equivalent) that pays monthly is much better than a bank CD at 5% APY. It is identical to a bank CD that is 5% APR.
Why would anyone buy a CD which is going to give you less of a return and tie your money up for much longer? You can get a higher return putting money into 4- or 8-week t-bills and if you need your money it’s not tied up for a year. It takes 10 minutes to set up an account via treasury direct.
And what are your thoughts on no penalty CDs?
@@BusinessWithBrian a little better, but still getting better returns going directly with t-bills and being able to manage my own money. It literally took 10 minutes to get my treasury direct account set up. I also like staggering investments so that auction dates can be spaced out every couple weeks. Really easy to manage reinvestments too.
What is your opinion of ETF TBIL ?
Learn more Friedaannellis she will teach you step by step
Short term t bills are actually paying quite high now. 13 week just went for 5.232% at auction
Yep. Just like I mentioned in the video, the rates will be different after the video posts. For reference I wrote it last week and filmed Monday. Impossible to keep up with as quick as rates are changing. Thanks for the comment.
@@BusinessWithBrian the rates on 4 to 26 week bills change weekly with 13 and 26 week rates announced on Monday, 17 week rates on Wednesday and 4 and 8 week rates on Friday.
@@todddunn945 Yep. I had the calendar on the screen for all to see. Once I film....I'm locked in.
What happens if the govt defaults? There is risk to tbills as they are not fdic insured.
Absolutely true. But sadly FDIC is part of the government agency. If it defaults it will also bleed over into FDIC. What we really need is safety and security from our legislators to ensure we do not go into default
The government can create as much money as necessary to avoid default. Since we left the Gold Standard in 1971, inflation has been steady due to the continuous government creation of more money to pay its obligations. Don't expect this to stop, so be prepared and invested for much inflation in the future.
A prudent question to ask is: Are there any account fees associated in buying a CD. I did that last year, that fee left me with with crumbs, since the broker took over 75% with their fees. I purchased several more from a different broker with NO FEES.
That's a good question to ask with any investment. Fidelity doesn't charge any fee for a new CD, and they do charge you around 0.1% on the secondary market for used ones as I had mentioned. Banks, generally do not charge fees when buying CDs. I haven't found a bank that charges fees on CD purchases to date, but it doesn't mean that one doesn't exist. Which brokerage site did you use that charged you a fee? That is highly unusual. But it's good to share so others can be aware. If you want to learn more on CDs and where to purchase them, I cover it in several other videos.
I buy new issues brokered CDs or some at individual banks but no fee.I never buy in secondary market
In Texas CDs don’t have state or local tax so it’s like owning treasuries
@@BusinessWithBrian I got my most recent CD's from Edward Jones. It was the first question I asked were there any fees associated with CD's - NO. Always ask.
For individual bank CDs rates are higher but you have transfer money to different banks.Keeping track can get tricky
Bond ETFs are risky. My CDs yield 5.1% guaranteed and the capital value cannot go down like bond etfs
You’re production is amazing; I see your channel going far. Can I ask what your education is in? I read your mild bio on your channel, but I feel like when I speak to say a local bank manager if I even talk about the federal reserve they have no clue who that is…
Thanks, I appreciate the compliment! I certainly hope the channel continues to grow. My background is Merchandising, IT, and Marketing. Everything in Merchandising is Finance driven and I've always loved that part of the business. That, and I like investing so I could retire early 😀
Why lock money in...5% available via high interest savings, UFB, Newtek
Different needs from different people, at different stages in life. I cover some of the reasons why in this video: ruclips.net/video/0wSxTAxUVe4/видео.html
good stuff. I would have run a real world example using a high state income tax state, like CA (9.3% to 13.3%) on a 2 x 6 month CD vs TB (true 12 mo yield).
Learn Friedaannellis she will teach you step by step
All of this financial information needs to be taught and made a requirement for a high school diploma. That and real world civil rights.
No point in 5% CD when one can currently get 5+% on high yield savings account and still have access to your money. Now that won't last forever so other plans must be made for when rates drop.
Sounds like a good plan for you. But keep in mind that you can't have a HYSA in your 401K or Roth. For retirees, or those close to retirement, CDs are a guaranteed return in a tax sheltered account. It all depends on your situation.
Did you say treasuries are not taxed at the state, local, or federal level? I thought it was taxed at the federal level.
Taxed at the federal level only.
gracias señor
De nada!
I understand, that you're not worried about US debt defaults at all.
I looked thru the transcript of the video, but I can't find that wording. Is there a time you are referencing? Or are you asking me if I'm worried about US debt default? Because I am worried it could happen. Anything is possible. I hope it isn't probable, but it is possible. The global impact and decline of the dollar would be catastrophic, if that occurred.
@@BusinessWithBrian Right now, since we're at the risk of a default, CDs are much safer option as they're FDIC insured. If you own t-bills, in case of a default you might get nothing.
@@mattmatt245 If the government doesn't have the money (or won't print it) to pay off Treasury debt, I don't think it will pay FDIC obligations either.
I purchased a CD a month ago. The value of the CD fluctuates everyday impacting the balance in my account. I called and they said it's is showing the value if I were to sell the CD early. No plans to do that. But it doesn't make sense why it impacts my balance. Has me a little worried and not sure why it doesn't just list my original investement.
BECAUSE if you withdraw a CD before maturity it will be sold on the secondary market. Rates may change and both parties will charge a small fee. You get a little less than your cost.
Don’t worry about it, if you hold to maturity you get the amount of your original investment. The value shown is usually Pennie’s or at most a dollar or two.
Don’t sweat it
@@g.t.richardson6311 It's fluctuating thousands. Down 4000 at one point. It's back now.
Your videos are informative and high level. In future videos, please have the editor remove the apostrophe from CDs. New subscriber to your content. Thanks!
Thanks for the comment. I appreciate it. You are correct on the apostrophe. I had someone work on two of my thumbnails, as I am now in need of help going into the summer. Where I'll be balancing my channel and watching our 7 year old being home from school. We'll be working out the kinks for a short while. Thanks again!
KAREN
Great explanation. Fortunately, I understand (before hand) what you said and you confirmed my understanding. Someone new to this might be lost. Also, you did not mention banks borrow your money, like the Fed, but could fail. FDIC is nice if you want to wait for it, should you bank fold. For the small difference, I will buy treasuries. If the US Gov goes belly up, nothing will really matter.
For those exact reasons, I'm steering clear of CDs, because I don't know which banks are going to fail... and there could be more to come.
How long do you think you will wait to get paid?
By FDIC? I don't know. But I am not loaning my money to a bank to re-loan it to some risky borrower. The Feds are bad enough, but like I said, if the Feds can't pay their debt, not much else matters, certainly not banks or the equities or bond markets. It will be anarchy. @@MuzixMaker
Fantastic information, digestably delivered!
Subscribed.
Wonderful, thanks for the sub and the comment.
Why to do a CD lader with funds stuck in the CD for a year when I can do a 5% every 3 months? For example, 5% of 100k every 3 months in a year that would be like 21K that would be more APY than spliting the 100k in a ladder. What am I missing? that in a few months the APY can go down to 2%?
APY stands for annual percentage yield. That's the percentage you get over 12 months not across 3 months. 5% APY on 100,000 every 3 months for a year is $5,000. A 5% APY on a 1-year CD for $100,000 is also $5,000.
@@BusinessWithBrian So if I put 100k in a 3 months CD with 5% APY in the forth month I don't get 105K? and then take the 105k and lock it in another 3 months CD with 5%?
Correct, you would not receive $105,000 in the fourth month. Since it's 5% annual percentage yield, you need to take 5% and divide that by 12 (number of months). That's the percentage that you make each month (.41666).
@@BusinessWithBrian Got it, that's why we need the ladder. Thanks for the quick answer. I'm now subscribed and with notifications on. Great work!!!
I bond can be transferred.
Correct, it can be transferred and it acts more similarly to "gifting" because it goes against the recipient's total allowable limit.
Good presentation done in a concise fashion, yet full of relevant information! I do have a question, though. I thought that interest on treasuries held in IRA account will still be taxed at a state and local level when the distribution is made. I did some quick digging on the web, but didn't come across anything. Brian, can you please clarify this? Or anybody else, please?
That's a very good question, and I haven't been able to find a straight answer. I have looked thoroughly and there are conflicting details. I read some articles that say yes, and others say no. If any other viewers know this answer with certainty, please list a link to the documented fact.
@@BusinessWithBrian I had heard that the treasuries in a rollover IRA would NOT be exempt from state taxes (as in a taxable account). If held in a ROTH - there are no taxes. I have some in all account types. 🤔 I did find an article from The Baltimore Sun which answered the same question. Here is the response:
'Unfortunately, the rules change when Treasury securities are held inside an IRA. In general, all the money you withdraw from an IRA will be subject to state income tax.
It doesn't matter whether the money came from Treasury securities, money market funds or other types of investments.
It's all taxable. Withdrawals from IRAs also get treated as ordinary income, at federal rates as high as 39.6 percent (although most people are in the 15 percent bracket).'
@@mr.j2776 Unless it's non-deductible IRA which is contributed with after-tax money. I believe only the gains are taxed at ordinary income rate.
@@Trust_but_Verify OK. Good point. But, please realize that I used a cut and paste from the Baltimore Sun. (RUclips apparently doesn't like regular quotation marks.) The point is, the gains from treasuries are subject to state and local tax if held in a IRA that is not a ROTH IRA.
well done...somewhat fast (speaking), but that seems to be "the way things are". thanks.
I'm trying to slow a bit in my newer videos. It's a tough balance to keep viewers engaged.
No one ever talks about the financial stability of the banks offering high interest CDs
What about it?
You didn’t address money market brokerage funds that hold government debt. 🤷♂️
You don’t need to “roll it over,” there’s no early withdrawal penalty, the expense ratio is microscopic and they’re paying five percent at this time, also.
You're correct I didn't cover that in this video. But I did cover that in some of my other videos where I talk about other areas to park your cash.
Thanks for this. I'm using Vanguard. Do you have a video on buying T-Bills and CD's via a brokerage like Vanguard vs other places/ways?
Thanks for the note. Yes, I have several videos on buying T-Bills and CDs from a brokerage site. Here's a couple examples: ruclips.net/video/k206NBcB1fo/видео.html ruclips.net/video/xRuRTanUUYE/видео.html
@@BusinessWithBrian Here ARE a couple....
Who offers the ability to purchase CD ladders already built like you mentioned in the video? TIA
Schwab does. I’ve never used it but I’ve seen the options under “Bonds and CD ladder”
To Brandon's point, Schwab does and so does Fidelity. Most all of the major brokerages do. Fidelity is the one I had shows in the video. I walk thru the process in several of my videos, and here is one of the more recent on ladders: ruclips.net/video/J_wCv8TtnIk/видео.html
Fidelity and Vanguard both do it.
@@rightwingprofessor1356 you have an FA with vanguard? If so, how has your experience been? Thanks
Great program, thanks a lot. One question that is not related directly to this topic. If the U.S gov defaults later this year, my understanding is the treasury bills purchased will worth nothing anymore, meaning you will not get anything back. But we all know the U.S gov won't be defaulting forever, once the debt ceiling is raised after defaults, would those funds including its interests be paid back after?
I've searched for that answer for a long time, and I can't seem to find cold hard facts. There's a lot of speculation, and here' s a link to an article that I felt explained it best thehill.com/opinion/finance/3942281-could-the-treasury-selectively-default-on-the-feds-debt/
When he was President Trump once said the way to handle the US Federal Debt was to pay off only 50% of it. and let the lenders take a loss. A very good reason not to vote for him.
Any good way to earn more than 3-4% on idle cash with virtually no risk right now? Willing to lock up for up to a year or so if needed. What are good options? I have about $150k retirement funds that i want to grow.
Is this a real question? Buy T-Bills.
Anyone have recommendations for a reliable monthly investment? I hope to ultimately supplement my income from work with a monthly income from investments. I will still make long-term investments, but it would be wonderful to have a little additional money each month.
Bear and bull markets offer great opportunities. I used to discredit people who made money in bear markets until I did it myself. The US stock market is currently experiencing a long bearish season but if you zoom out it's actually a bull run as the market always comes around, so it's understandable that people are panicking. However, there are opportunities if you know where to look. With the help of an investment advisor, I made over $250k in profit last year.
@@MatthewVinson Please can you leave the info of your investment advisor here? I’m in dire need for one.
I have "Jill Marie Carroll" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
Awesome video! Information shared was very helpful to my current decision making process.
Glad you enjoyed it. Thanks for the comment!
My state (NC) has a flat rate income tax of 4.99% so CD's have to pay that much more than Treasuries. For now I have I-bonds and a single 2yr Treasury. I may buy the max amount of I-bonds again as the way it works I'll average over 5% for the 1st year as long as I buy before April 27th, at least that's what I've read. Then, assuming the I-bond rate gets a lot lower, I'll sell 3 months after the year is up. Assuming I understand all this anyway.
You have to hold I-bonds for a minimum of one year and until you have held them for five years there is a 3 month interest penalty if you redeem them.
That's a high tax rate. Looks like your taking the right approach to save the most on taxes. You are correct, the window on I-bonds having the high rate are closing quickly. If you're interested, I do have a video on ways to get the most out of your I-bonds. ruclips.net/video/yz5yx1Tsgy4/видео.html
@@BusinessWithBrian you're
I disagree with your assessment of the Treasury Direct web site for buying treasuries. I find it very easy to use. Once you have an account set up it only takes a few clicks to buy a treasury. Setting the account up can be a bit cumbersome, but they recently made it much easier. One point you failed to mention about treasuries is that there is no limit on how much you can have invested in treasuries and ALL with the same level of safety. That said, I think there is a limit of 10 million on any one purchase, but you can make multiple purchases if that limits you. So far it hasn't been an issue for me 😁
That's great that you are having a good experience with Treasury Direct. Since their update last year, it is much cleaner (just don't get locked out of your account).......and selling treasuries early.....well, that's not easy on Treasury Direct either. As far as investment limits, true that I didn't state the lack of limits in this video. And it's true for CDs, that you can break up purchases to keep yourself insured. All very similar. Thanks for the comment.
Excellent video! I bought a 6 month T-bill on TreasuryDirect a few weeks ago. There are a lot of hoops to jump through, but it went smoothly.
That's great to hear. I hope the process continues to be smooth. Thanks for the note.
The angle change is weird
that was awesome , thank you
I have beefed up my CD and treasury holdings over the past month. 9 months to 5 years. 4.7% to 5.45% APY. The rally in the equity markets have been great as I have matched capital gains and losses to make the sales tax neutral and give more cash to put in high yield savings accounts paying 3.1-4%; CDs and treasuries, and added to TLT ETF. Should rates jump even higher, I will try to push out more toward 3-5 years.
Well done!
Thank you for creating such an informative and engaging video! I learned a lot! I eagerly look forward to your future content. Keep up the great work!
Thank you so much for the comment. I appreciate it.
Most money market accounts are paying 4-5%. If you have your money there, might as well leave it.
The 4 week is at 5%. What would be the advantage of leaving it in an annual 4-5% when the same thing could be done in 1/12 the time with out the exposure to bank risk?
@@soronos8586you don’t get 5% in a month. You get 1/12 of the 5%.
Did you consider the very real possibility of a bank failure?
did you consider you are fdic protected theoretically up to $250k even though NO depositor has ever lost money in a bank failure even if ABOVE the limit , feds always step in
There are lots of solid banks and deposits are federally insured. What’s your worry? Do you keep your money buried in the back yard?
@@MuzixMaker Your idiotic snippy comment does NOT warrant a kind response. Now you have a good day.
Thank you for the concise overview. I think the market is going to be range bound for the foreseeable future, if not correcting. So I've been laddering 5 year brokered CDs to lock in guaranteed returns. My accounts are mostly deferred, so no tax impact.
I know Treasuries are considered safe, but I don't trust the GOP to navigate the debt ceiling situation. It's happened before where they will cut off their noses to spite their face.
FDIC is insurance paid for by the banks.
Thanks!
All completely fair points. I appreciate the note, as I try to be concise and not overly "wordy". It's a tough balance when trying to convey detailed information.
"FDIC is insurance paid for by the banks". You do realize that the FDIC is a federal agency (fdic.GOV). If the Federal government would default on their obligations, your FDIC would also be worthless.
@@TechDude56 Excellent point. I erroneously thought that since banks paid those insurance premiums, it was a separate pool of funds. And in reality if the Federal government defaults, the collateral damage will be significant.
@@jkmwpc Yes, unfortunately there would be no safe havens if the US Govt. defaults for any length of time.
Sounds like you buy into the Demo's spin that it's the Republican's fault if they can't reach agreement. The out of control spending of Democrats and their unwillingness to reign it in a little would be to blame.
Helpful. Thank you. But Stop all the effect sounds - key taping noises - swooshes. Very annoying
Ok, thanks
Great video! Thanks for the info. I've been putting this off for too long. 👍
Glad it was helpful!
I couldn't stop laughing when you mentioned the government
Very informative, but I wish he would slow down a bit. Doesn't need to speak slowly, just not so quickly.
I really like your videos and you explain everything very well. I want to purchase a cd ladder but I don't know which one to choose, the 3 month, 6 month, or 1 year ladder? Or will I make more if I just purchase a 1 year cd and not a cd ladder?
Treasuries are not FDIC insured?!? 😂😂😂😂 Dude how could they be when the Tressury backs FDIC?!?
Great content. I’d suggest removing the animation sound... quite annoying
Note taken.
"inflation is slowly cooling down"....that didn't age well.
But inflation did, and is, cooling down. Here's an article with the graph. www.reuters.com/markets/us/us-consumer-prices-rise-more-than-expected-january-2024-02-13/
A graph with comparison would be beneficial.
What kind of graph are you thinking? Or are you more interested in a table of comparison? One to download, or on the screen? I do have the pros/cons listed adjacent to one another, and then I also have the rates compared. Love to hear more about what gives you the most value.
I wonder if when term ends on a CD gets transferred to another CD or t bill, is there tax liabilities ?
5%? Great…so you kept pace with inflation…for now. But then you gotta pay taxes on that 5%. So it’s a loser. Thanks, but I’ll stick to my 4%/ week that I’m earning.
Wow....4% a week! That's over 200% a year. A ten year CAGR would make you a multimillionaire. Easy. Please share what you are investing in.
Ha ha check your math!
Inflation is going to eat your 5% and still be hungry, that is guaranteed.
So what if you don’t earn the 5%?
CDs is taxeble 😢
Yep, the interest is taxed, just like a savings account. It's the tradeoff for higher rates.
Oh my God, the cope 😂. Is this a fed page 😂😂😂
Cope?
talk too fast like youre in a hurry to finish. Slow er down a bit if you can and take a breath between sentences.
Feedback received. Thank you.
I agree. You talk too fast. Please slow down next time.
go into setting the gear and slow down the video.
Your otherwise excellent video is ruined by the stupid pop-ups, flashes, sound effects.
ya really think the Fed will stop LOL _ real inflation is around 15%
CDs are safer in the waterfall. US debt would be non-serviced (e.g., payments to China and hedge funds for their t/bills would stop) before the USG would fail to pay depositors under FDIC.