Is Investing in Treasury Bills Your Best Move for 2023?

Here’s a simpler, more conversational take on your text:

**Are Treasury Bills a smart move in 2023?**

What are they? Treasury Bills (T-Bills) are basically you lending the US government some money short term. They’re used to pay for public stuff like roads and schools. If you buy one, they don’t give you interest. Instead, they sell it to you for less than it’s worth and you get the full amount back when it expires.

Imagine buying a T-bill for $950 that’s actually worth $1,000 and expires in a year. At the end of it, you get $1,000 back. That’s a bit over 5% annual return. Not bad, right?

Oh, and you can get T-bills from the TreasuryDirect website or some banks and online brokerages.

**Should I buy Treasuries from Public.com instead?**

This is just a side note: Public.com is a website I’ve used recently to invest in T-Bills. It’s pretty cool because you can sell your T-Bills there any time (unlike using Treasury Direct where you wait for them to expire). It’s kind of like having a high yield savings account but with better flexibility.

**So, do Treasury Bills make good investments in 2023?**

Yes, definitely. Since the US government backs them, T-Bills are super safe. They’re great if you have a big buy coming up and just want to grow your money a bit beforehand. Most don’t last more than a year. But be warned, cashing in before the expiry date might cost you some growth or penalty fees.

**How do they compare to CDs (Certificates of Deposit)?**

Well, both T-Bills and CDs offer better returns than regular savings accounts. T-Bills are more flexible and you can cash in early without fees (but you’ll lose some profit). CDs tend to offer even better returns but cashing in early can cost you big time!

**Which one do you recommend, then?**

Depends on your situation:

– For better return than savings and flexibility: T-Bills.
– Saving for a big purchase: Short-term T-Bill.
– Wanting to add some stability to your portfolio: T-Bills.
– Don’t need to cash in early and aiming for the best return: CDs.

**What about stocks?**

Stocks can give you the best growth but T-Bills are more predictable. They can protect your money from inflation and bring some balance in your investment mix. But remember: don’t put all your eggs in one basket.

**Alright, how do I buy T-Bills then?**

You can go to the TreasuryDirect website and make an account to buy T-Bills.

**When do T-Bill rates increase?**

Unless there’s economic growth or a boom in the market, T-bills rates decrease because people are running toward safer investments like T-bills. When things are going well, people are less interested in them so the rates increase to draw them in.

**What’s the future of T-Bills in 2024?**

The folks over at Goldman Sachs think the T-Bills will stay just above 4% in 2024. But don’t quote me on that, it’s just an estimate.

**What about taxes?**

Okay, so you do have to pay federal taxes on Interests earned from T-Bills. But good news: they’re free from local income taxes!

**Final Thoughts**

T-Bills are a solid way to keep your money secure and earn a bit on the side. They’re perfect if you’re anticipating a big purchase or if you want to add some steadiness to your investment mix. Also, you can set up a continuous flow of income by investing in multiple T-bills with different expiry dates. So, whether you’re a beginner investor or an expert, you might want to check out T-Bills!

**FAQs**

1. **What happens to T-Bills when interest rates go up?**
When interest rates rise, T-Bills and other bonds become less attractive compared to other high yield investments, like stocks.

2. **What’s the 3-month T-Bill rate?**
Mid-2023, the rate was around 5.20%. Remember, past performance doesn’t guarantee future results.

3. **Are T-Bills FDIC insured?**
No, they’re not. But don’t worry, they’re backed by the US government, so they’re very safe.

4. **Are T-Bills a safe bet?**
Yes, T-Bills are super secure. In fact, they’re used to measure the return rate of completely safe investments.

5. **Is it smart to buy T-Bills now?**
T-Bills are always a safe buy. They add stability to your portfolio. But like all investments, they depend on the market condition.

**Online platforms to buy T-Bills:**
1. **Public**: Buy and sell stocks and ETFs commission-free. Plus, join a community of other investors.
2. **Moomoo**: A user-friendly platform that offers commission-free trading on stocks, ETFs, options, and ADRs.
3. **Webull**: 24/7 customer service with commission-free trades of stocks, ETFs, options, and cryptocurrency.