T-Bills have not yielded over 4% in 14 years, and if that's not enough here are some more reasons to purchase T-Bills for diversification of your portfolio.
1. T-bills are debt instruments sold by the U.S. government to fund its activities.
2. You’re giving the federal government a short-term loan, and the Treasury Department pays you a fixed rate of interest in exchange for your money.
3. The government is considered a risk-free borrower, and T-bills are considered risk-free investments because of this fact.
4. The government is considered a risk-free borrower, and T-bills are considered risk-free investments because of this fact.
5. When you buy a T-bill, you are guaranteed to get back at least as much as you initially paid for it when it matures, minus any applicable taxes.
6. Since they mature quickly — typically in 52 weeks or less — they do not fluctuate much in price.
7. Buying treasury bills is a great way to invest for the short term because they're low-risk and have high liquidity.
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