Bank CD vs T bill — another advantage
My 97 year old dad has been investing in CDs for awhile but recently, they are often called back early. I am looking at having him invest in Tbills instead as the interest rate is comparable and they are not called back early. Probably going to do 1-2 year duration. Does this approach make sense to you?
Terry Says
It does. And let me point out that traditional bank CDs are not “callable.” I’m thinking someone got him into some other kind of investment program — quite misleading.
I’d make the switch to T-bills asap — Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
Now, one more thing. How are you going to “title” the account? If he has made a revocable living trust for his estate plan, open the TreasuryDirect account in the name of the trust. If he simply has a will, and you are his only beneficiary, you should be listed as co-owner.
I strongly suggest a Revocable Living Trust for him, if he is competent and capable of making one. It will solve a lot of delays in probate and distribution of his estate.
Watch this:
https://www.terrysavage.com/wp-content/uploads/2022/10/Terry-Talks-Wills-Trusts-Estate-Planning.mp4
