Hey Darnell, I've really enjoyed your work. Thought I'd share what I know about T-bills and maybe why your full $1200 wasn't funded. The way T-bills work is that you buy them at a discount, and your return comes via the bill increasing to "par" or the amount paid at maturity, which looks like $1,200 in your case. I hope that makes sense.
Thank you, Nick! I was hopeful that someone would venture down here and help explain it. Your explanation aligns with what my fuzzy understanding was. But I couldn’t figure out the math on it. I appreciate it.
I've considered getting into buying individual t bills, but it's so easy to access them in a money market fund like VMFXX or VUSXX that I'm sticking with those. If you use Chase as your brokerage, you can access them with free trades. There are also t bill ETFs to try out like SGOV if not. With either of these options, you take a slight hit in yield, but you gain liquidity.
Hey Darnell, I've really enjoyed your work. Thought I'd share what I know about T-bills and maybe why your full $1200 wasn't funded. The way T-bills work is that you buy them at a discount, and your return comes via the bill increasing to "par" or the amount paid at maturity, which looks like $1,200 in your case. I hope that makes sense.
Thank you, Nick! I was hopeful that someone would venture down here and help explain it. Your explanation aligns with what my fuzzy understanding was. But I couldn’t figure out the math on it. I appreciate it.
I've considered getting into buying individual t bills, but it's so easy to access them in a money market fund like VMFXX or VUSXX that I'm sticking with those. If you use Chase as your brokerage, you can access them with free trades. There are also t bill ETFs to try out like SGOV if not. With either of these options, you take a slight hit in yield, but you gain liquidity.