Treasuries – coupon rates
Hi Terry,Thanks for all you do on advice and insights to all financial matters. I am a novice to buying treasuries. Already have purchase I bonds this past year. But would like to buy Treasuries in our Rollover IRA with fidelity from our money market within. Could you please explain what the difference is between Coupon rates betyween 0.125 and 4.00.and then zero coupon treasuries nd which is better to buy high or low coupon rates, they also often have same or similar yields with diff, coupon rates. Thanks for you consideration
Terry Says
Wow, you’re getting way too sophisticated for your IRA! First of all, you need to have a brokerage account option at Fidelity to buy Treasury Bills. You’ll want to buy the 6-month bills, at the weekly auction. \Read this article: https://www.terrysavage.com/t-bills-beat-cds/
You cannot purchase Treasury securities for an IRA directly, because Treasury will not act as a custodian. So talk to Fidelity and see what you have to do to buy T-bills in a brokerage account for your IRA.
