T Bills and Inflation Rates
I’ve heard you talk about T Bills on WGN. Being a ‘low level’ investor, meaning that I am playing with a couple hundred thousand dollars that I need to keep liquid. Are the T Bills really a good option given that the return rate is less than the current inflation rate?
Terry Says
Good point — but they offer the greatest safety and highest liquidity (stagger your purchases, or buy some 13 week and some 26-week bills) available. The rates are set at the Monday auction each week, and individual buyers agree to accept that rate, which is based on the outlook for future inflation.
Sure, you could earn more elsewhere — but at much greater risk!! T-bills are the place where you put your money to earn the highest SAFE return with liquidity.
