🚀 go-pugleaf

bearclaw@cruller.invalid wrote in news:bearclaw-
0CE6AF.20380903072006@news.supernews.com:

> The individual investor can buy T-bills at auction through the website
> 
> <https://www.treasurydirect.gov>.
> 
> The securities are issued in 4, 13, or 26-week maturities. Minimum 
> investment is $1,000.
> 
> I'm thinking of investing in these. Does anyone have any advice pro or 
> con? Thanks in advance.
> 

I've been using Treasury Direct for over 10 years now.  If anything, the 
program has gotten better, especially for the indvidual since the new 
Treasury Direct replaced Legacy Treasury Direct (which still exists).  
Originally, I had to mail (as in using the USPS) the registration and 
purchase orders.  Later, you could execute purchases (but not sales) 
online, but only during certain hours (based on Eastern time zone) on 
business days.  Then, sales were added.  Now, you can register and enter 
orders (purchases & sales) almost 24-7 (but executions will not take place 
until the next business day if placed on holidays or outside business 
hours).

Transfers to/from my associated checking account has been flawless since I 
first started using them. 

You can purchase ANY treasury bill, note, or bond with this program. T-
bills go out to 1 year and are sold weekly.

Interest you receive is exempt from state and/or city income tax. Depending 
on where you live, the net return to you (after taxes) is often better than 
you would get on an equivalent term CD and, of course, this is the safest 
investment you can make.

Just remember that when buying T-bills, they are sold at a discount.  Ie.  
if you buy a 1 year bill yielding 5%, you will pay $952.38 and recieve 
$1000.00 at maturity.  For longer terms, you pay face value ($1,000.00) and 
recieve interest semi-annually with the last interst payment and principle 
paid simultaneously at maturity.

The only down side is the same as with any fixed term investment.  If 
interest rates increase between the day you buy and when it matures, you 
will loose to inflation.  And, like with a CD, you will pay a price to sell 
early.  In this case, there is a $35 transaction fee (as of the last time I 
looked) plus, of course, any change in principle due to market fluctuation.

There is also a limit on how much you can invest via Treasury Direct before 
you are charged an annual fee.  I haven't checked this recently, but the 
last time I looked the fee was $25/year if you held more than $100,000 face 
value in Treasury Direct. 
  
-- 
Marty Shapiro
Silicon Rallye Inc.

(remove SPAMNOT to email me)