T Bills or Vanguard Money Market?
We have just received the proceeds from a property sale. $200,000.00 My wife and I have Iowa teacher pensions and SS so we are looking for a safe place to put all or some of this money. We have no immediate need, financially.
We already have a Vanguard managed account and also have started putting some ‘Chicken Money’ in Vanguard’s Money Market account.
I have heard you during interviews with WGN radio talk about T Bills so I’m asking, which would be most appropriate? T Bills or the Vanguard Money market?
If we went with the T Bills, I have heard you suggest that we would deposit amounts each month so the maturity dates would be spaced out over the calendar year. Thanks for your help.
Also, I looked at the Treasury Direct website and there is no two person account, just one person. We do have a revokable trust but I didn’t see that as an option.
Terry Says
If you have a “managed” Vanguard account, you’re paying a fee based on “assets under management”. So there is no sense in putting this money into that account and paying a fee for what you can easily do yourself!
Read this about opening an account in TreasuryDirect: https://www.terrysavage.com/t-bills-beat-cds-2/
And yes, you can and SHOULD open the account in the name of your Revocable Living Trust. It’s easy to do, and it’s an option when you type in the name of the TD account. You’ll like it to a bank account in the name of your RLT.
