In doing some research for another post I'm working on I stumbled onto a bit of information that I t

• 01/07/23

In doing some research for another post I'm working on I stumbled onto a bit of information that I thought I'd share. Hopefully @leif @jannick @victor @emmaz can give this post a boost because it's literally insane that this is currently happening. What if you could make a guaranteed 4.32% return on your investment in just one month? We're talking 100% risk free return. This might sound like some crypto scam or a Ponzi scheme but actually, it's not. The closing yield of 1 month US Treasury Bills ended at 4.32% on Friday. What's a Treasury Bill? According to Investopedia "A Treasury Bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less. Treasury bills are usually sold in denominations of $1,000. However, some can reach a maximum denomination of $5 million in non-competitive bids. These securities are widely regarded as low-risk and secure investments." Basically you're loaning the government money and being paid interest as a result of this. But unlike normal bonds whose prices fluctuate and can cause capital losses, T-Bills are different. The "interest" you're being paid on T-Bills is actually a discount on the face value of the bill. So in this case a $1000 T-Bill would be purchased for $956.80. Upon maturity, in this case one month, you are paid the face value of the bond. So you'd get $1000. This payment is guaranteed unless the US government defaults which has never happened to date and doesn't even have the potential of happening until later this year when the debt ceiling is reached. Historically 1 month T-Bills have paid 1.21%. Last year they paid 0.04%. However in the last 6 months the rate has jumped through the roof increasing by 10,700%. Say you invested in $10k worth of 1 month T-Bills. You're basically paying $9,568 today and getting $10,000 returned to you on maturity. In this case that's 1 month. So let's say the rate stays here for a full calendar year. Each month you're buying $10,000 in T-Bills at a profit of $432 over 12 months you're looking at a yearly return of $5184 so over 51% annualized. But you only ever had $10,000 (actually $9,568) "tied up" at any time. Pretty sweet deal right? **These prices are hypothetical and vary from auction to auction. These examples are for illustrative purposes and should not be used as definitive prices and return expectations** So how do you purchase T-Bills? https://www.treasurydirect.gov/ You can also purchase through a bank. It's INCREDIBLY unlikely that this rate continues for long. Currently the 1 month T-Bill is paying a higher rate than the 20 Year Treasury Bond is.. (4.32% vs 3.84%). I've included several links below to better educate you on T-Bills, how to purchase them, and what the returns are below. It's not very often that something like this comes along so I suggest reading up on it and asking yourself if you think you're going to make 4.32% by trading over the next 30 days. Many accounts from places like $SOFI and $HOOD are paying high APY (Annual Percentage Yield) with SoFi paying 3.75% and Robinhood Gold ($5 a month) paying 4% annually. But these T-Bills mature every month. It's likely they're using these to pay you in a year what they're getting in a month. "Cash sweep" almost always involves the brokerage "sweeping" your money into money market accounts that use these short term investments to pay their yield. Instead of giving it to them, take it for yourself! **Edit** Public is now making this SUPER easy for everyone by offering something INCREDIBLY unique. Check this tweet for more info! https://twitter.com/public/status/1613178348728877058?s=33 //// https://www.investopedia.com/articles/bonds/08/treasuries-fed.asp#:~:text=You%20can%20buy%20short%2Dterm,through%20a%20bank%20or%20broker ////// https://money.howstuffworks.com/personal-finance/financial-planning/treasury-bills.htm /////// https://www.investopedia.com/terms/t/treasurybill.asp#:~:text=Key%20Takeaways-,A%20Treasury%20Bill%20(T%2DBill)%20is%20a%20short%2D,maximum%20denomination%20of%20%245%20million. //////// https://www.investopedia.com/ask/answers/012815/how-are-treasury-bill-interest-rates-determined.asp /////// https://www.investopedia.com/articles/investing/072513/basics-tbills.asp ///// https://ycharts.com/indicators/1_month_treasury_rate#:~:text=1%20Month%20Treasury%20Rate%20is%20at%204.32%25%2C%20compared%20to%204.30,long%20term%20average%20of%201.21%25. ///// https://www.fool.com/knowledge-center/how-to-calculate-the-percentage-return-of-a-treasu.aspx#:~:text=The%20first%20calculation%20involves%20subtracting,to%20convert%20to%20a%20percentage. ///// Want help like this on a regular basis? Join my Discord community for free https://discord.gg/GaUxA4dvZs /// # # #tcardizzle

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