I would buy CDs or treasuries that have the best deals after taxes.My esteemed listmates,
I've read that T-Bills may have this trajectory...
Below 4.5% in March 2025
Below 4.25% in July 2025
Below 4% in October 2025.
There are no penalties for selling early but one should consider the price of the bond/bill as it could be lower than what one paid originally.
If one is not a sophisticated investor, lacks time to conduct deep dives into the variety of available investments, then those projections would seem to suggest that an unsophisticated investor might be better off buying T-Bills now with a 6 month maturity?
Outside of Index Funds, most unsophisticated investor would think that there aren't many other h where silk is low and returns are at least fair compared to low interest checking accounts.
Bank CDs rates rival T-Bills but they have penalties and interest forfeiture.
What's an unsophisticated investor to do?
Certainly not buy high load mutual funds! Image may be NSFW.
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Thank you.
You already know that there are no state taxes on treasury interest.
I only keep a minimal amount in money market funds. Why? They are very short term.
Duration gets a vote; I really like duration matching.
When I got ready to drop out of funds and ETFs, I spent around $20K and bought ten treasuries of various durations including TIPS. Some were from auction; some on the secondary market. I held them for a few days and sold them all. It cost me a few dollars, but I learned. Now I'm all treasuries and CDs. I own no funds except for low balance money market settlement funds.
Bottom line: Treasuries held to maturity deliver as promised to the penny.
Statistics: Posted by hudson — Thu Sep 12, 2024 6:18 pm — Replies 12 — Views 989
