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weso1
Joined: 26 Aug 2010
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 Posted: Fri Aug 05, 2011 7:01 pm Post subject: T Bill investing? |
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Has any one here set up a US T Bill ladder?
How did you go about doing it?
The US's rating was just downgraded from AAA+ to AA+. It's reasonable to suspect that this will affect treasure rates for long term and short term loans (or bills.) Finally. Since for the last year I haven't seen them go above .15% and usually they hang around the .02% range.
Man, I miss the days when they were 5%. |
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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| Posted: Fri Aug 05, 2011 8:56 pm Post subject: |
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The US rating was downgraded by 1 of the 3 big firms, not across the board.
Since interest rates there are so low, why put your money there? I am making an easy 3.2 on CD's here in Korea, and that's with a short, 3 month maturity.
If you really want T bills, just call a broker and set it up. I have some of my money in the US - my broker does that kind of stuff. It's just like ordering a pizza. |
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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Highwayman
Joined: 22 May 2011
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| Posted: Fri Aug 05, 2011 10:04 pm Post subject: |
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| I'd keep my money out of US dollars for the time being. QE3 is on the way and soon it's not going to be worth the paper it's printed on. This is no short-term event. America is in terminal decline. |
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Riddle
Joined: 19 Jul 2006
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| Posted: Fri Aug 05, 2011 10:16 pm Post subject: |
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| nathanrutledge wrote: |
The US rating was downgraded by 1 of the 3 big firms, not across the board.
Since interest rates there are so low, why put your money there? I am making an easy 3.2 on CD's here in Korea, and that's with a short, 3 month maturity.
If you really want T bills, just call a broker and set it up. I have some of my money in the US - my broker does that kind of stuff. It's just like ordering a pizza. |
I very much agree with this line of thinking. Set up a Korean CD ladder instead and reap interest rates hovering around 4.3 percent. I'm not using a ladder, but have been very pleased with the rates at Shinhan. My gf says that if you go to the smaller banks, you can get even higher rates. Then again, I plan on living in Korea for the long term.
For those of you who have opened CDs and find that another bank is offering a higher interest rate, ask your bank to match the rate. An acquaintance of mine recently had success with this. |
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weso1
Joined: 26 Aug 2010
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| Posted: Sat Aug 06, 2011 2:12 am Post subject: |
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| Highwayman wrote: |
| I'd keep my money out of US dollars for the time being. QE3 is on the way and soon it's not going to be worth the paper it's printed on. This is no short-term event. America is in terminal decline. |
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weso1
Joined: 26 Aug 2010
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| Posted: Sat Aug 06, 2011 2:30 am Post subject: |
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Is 3 months the shortest maturity you can get?
3.2 sounds great, but I'm looking at starting with very little. Ideally I want the ladder to be $100 a week for 4 weeks. Waiting a month to get 3.2 or even 2.2 on a hundred would be awesome. Waiting 3 months for $3.20 hardly seems worth it. |
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jondepoer
Joined: 02 May 2010
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| Posted: Sat Aug 06, 2011 8:46 am Post subject: |
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Sorry to ask obvious questions, but what exactly is a CD? Some sort of term deposit? I've heard of this before, but have never really researched it.
If you have a moment to humor me...
Supposing I had 10,000,000 to play with, what am I looking at as a return for a 12 month deposit? |
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Highwayman
Joined: 22 May 2011
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| Posted: Sat Aug 06, 2011 4:01 pm Post subject: |
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| jondepoer wrote: |
Sorry to ask obvious questions, but what exactly is a CD? Some sort of term deposit? I've heard of this before, but have never really researched it.
If you have a moment to humor me...
Supposing I had 10,000,000 to play with, what am I looking at as a return for a 12 month deposit? |
Certificate of Deposit - as you said, basically a term deposit.
The return depends on the interest rate.
The math isn't complex. Just multiplication. |
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