Treasury Bills (T-Bills) – What They Are & How to Buy for Investment

Treasury Bills (T-Bills) – What They Are & How to Buy for Investment

One reason many savers delay or completely avoid investing is the fact that investing comes with risk. They realize that while money can be made in the market, it can also be lost.

That’s a scary notion for most. After all, if you’re like most Americans, you’ll work at least 40 hours every week for most of your adult life. You don’t want to work that hard to earn money you’re just going to lose in the end.

Whether you’ve let fear of loss keep you away from setting up a nest egg for your future or you are nearing retirement and can’t stomach the ups and downs of the stock market, treasury bills offer an attractive investment opportunity.

Treasury bills, commonly called T-bills, are a great way to set the foundation for your financial future and put your hard-earned dollars to work for you.

What Are Treasury Bills?

T-bills are short-term fixed-income debt securities that are widely considered one of the safest investments anyone can make. That’s because these investments are backed by the full faith and security of the United States government.

Issued by the U.S. Department of the Treasury, T-bills are offered by one of the strongest and wealthiest entities in the world.

Like other debt instruments issued by the U.S. Treasury, T-bills are considered a safe-haven investment, known for producing reliable returns even in times of economic declines.

However, unlike other offerings by the Treasury, they offer very short terms, greatly reducing the interest-rate risk associated with investing in fixed-income securities.

T-bills mature in less than one year, whereas investments in Treasury notes mature in one to 10 years and investments in Treasury bonds typically take 30 years to mature.

Another way these bills differ from Treasury bonds and notes has to do with how investors earn money from them because they don’t pay interest…Read more>>

Source:-moneycrashers

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