Plan for on-going buying Treasuries
First, thank you so much for your column and for the podcast! I did what you said and Pam helped me find a financial planner for a much-needed rebalancing of my portfolio to be more conservative now that I am in my mid 70’s and I sleep better! And, I opened a Treasury Direct account. Now my question: What is a good plan to “ladder” treasuries like we did with bonds in the past…I need a plan of action over time. I am fortunate to have funds to do this, but not sure how to plan the purchases over time and which length of time of ea treasury to buy…hard to say like the length of time of the treasury bill ie 6 weeks or more or? and how often to buy over a year. IE $200,000 over one year buying x times a month in x $ amount of x duration with renewals of x weeks…. I can’t get my head wrapped around how to best plan to do this. Please advise. Thanks much!
Terry Says
Just buy 6-month T-bills now. And then wait two weeks and buy more. So if you have $200,000 then you can “ladder” or stagger the purchases over a few months. Buy $25,000 every two weeks and then create automatic “renewal” purchases when they mature. It’s easy to do that under the “manage your account” tab on TreasuryDirect. Then remember to check in once a year to add more renewals.
Every time a T-bill matures, the interest will drop back into your bank account.
