Max [maxmyinterest.com]

Discussion of the Cash portion of the Permanent Portfolio

Moderator: Global Moderator

User avatar
pugchief
Executive Member
Executive Member
Posts: 2418
Joined: Tue Jun 26, 2012 2:41 pm
Location: suburbs of Chicago, IL

Re: Max [maxmyinterest.com]

Post by pugchief » Sat Jul 14, 2018 10:23 am

Here is a really good tutorial on buying T-bills at Fido, complete with diagrams.

https://thefinancebuff.com/treasury-bil ... arket.html
User avatar
jhogue
Executive Member
Executive Member
Posts: 215
Joined: Wed Jun 28, 2017 10:47 am

Re: Max [maxmyinterest.com]

Post by jhogue » Mon Jul 16, 2018 12:01 pm

I like using Fidelity to buy and own T-bills directly. It completely avoids the manager risk associated with ETFs and mutual funds. Also, the expense ratio (0.00% !!!) simply cannot be beat.

When I first started buying T-bills, I wondered if Fidelity might be tempted to pump up the bid/ask spread to pay for this free service. As far as I can tell, that is not the case. I occasionally check the spread and have found that it hovers around 0.03% for a current 1 year T-bill.

I don’t know for sure, but I am guessing that Fidelity can make this deal available for small retail investors because they have to hold a massive amount of T-bills to support their many mutual funds and other investment products. Perhaps some demand is also be coming from their institutional investors for whom the FDIC cap of $250,000 makes CDs unsuitable.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
User avatar
ochotona
Executive Member
Executive Member
Posts: 2148
Joined: Fri Jan 30, 2015 5:54 am

Re: Max [maxmyinterest.com]

Post by ochotona » Mon Jul 16, 2018 12:52 pm

I can't wait! Big slug of dough coming out of Marcus to Fidelity. Maybe tomorrow.
User avatar
pugchief
Executive Member
Executive Member
Posts: 2418
Joined: Tue Jun 26, 2012 2:41 pm
Location: suburbs of Chicago, IL

Re: Max [maxmyinterest.com]

Post by pugchief » Mon Jul 16, 2018 1:05 pm

ochotona wrote:
Mon Jul 16, 2018 12:52 pm
I can't wait! Big slug of dough coming out of Marcus to Fidelity. Maybe tomorrow.
The auctions are on Monday. You may have to wait until next week if you are buying new issues.
User avatar
ochotona
Executive Member
Executive Member
Posts: 2148
Joined: Fri Jan 30, 2015 5:54 am

Re: Max [maxmyinterest.com]

Post by ochotona » Mon Jul 16, 2018 2:06 pm

Fidelity posts the T-Bill offers after 2 pm Eastern on Thursdays. I bought some secondary market Bills today.
User avatar
ochotona
Executive Member
Executive Member
Posts: 2148
Joined: Fri Jan 30, 2015 5:54 am

Re: Max [maxmyinterest.com]

Post by ochotona » Mon Nov 19, 2018 7:55 pm

Ally paying 2% now
Post Reply