T-Bills — Creating a buying schedule
Terry,
I’ve listened to and loved you for years.
I would be grateful for some advice.
I’m 72, still working, and only have about $100k in IRA’s and $60k in money markets.
I recently inherited $120k to invest.
I purchased a $10k I-Bond on your advice and now plan to buy T-Bills.
Would advise a buying time table for $100k of T-Bills?
I look forward to hearing from you.
Terry Says
OK, I’m going to assume that you have some “liquid” cash outside of this money, in a money market fund — just in case of emergency.
You have your account at TreasuryDirect.gov, so go to the tab marked “buy direct”. Buy $20,000 of 26 week bills at the next-dated auction. Then wait three weeks and buy another $20,000 of 26 week bills. And keep on that schedule. That will spread out the rates you receive and the maturities. If you won’t forseeably need the money at maturity, then opt for 3 automatic rollovers, at the then-current rate. You can always change your mind until the week before.
MAKE SURE THE MONEY TO BUY THESE BILLS IS SITTING IN THE BANK ACCOUNT YOU LINKED TO THE TREASURY WEBSITE!!
