Gyroscopic Investing

Assuming that a PP investor has a reasonable amount of cash saved in the form of T-bills, how much do you guys think it's safe to tinker with the expiration date on the rest of his Treasury notes?

2 years?  5 years?  When does it cease to be cash?

AdamA wrote: Assuming that a PP investor has a reasonable amount of cash saved in the form of T-bills, how much do you guys think it's safe to tinker with the expiration date on the rest of his Treasury notes?

2 years?  5 years?  When does it cease to be cash?

To me, if you are going to look for longer dated instruments series EE and I savings bonds are hard to beat, especially since you are getting higher yields than t-bills with basically no risk to principal and complete tax deferral until redemption.

Why mess around with 5 year treasuries when you can do savings bonds with more safety and tax efficiency?

AdamA,

I think after 3 years you're starting to weaken the pot.

However, looking at yield curves always helps... if we have an inverted  yield curve, going shorter actually provide higher rates.

However, when rates are as low as they are now no matter where you are on the short end of the curve, I'm much more in favor of 1-year or less.