I'm JUST starting to learn about buying individual bonds. I just made my first purchase of a T-Bill, 6 months out, (when I'll need it) yielding over 5%. I'm looking at Vanguard and they seem to have many brokered CDs yielding a good .5-.75% more than the same maturity T-Bond. I do see the higher yielding ones are callable, but even the regular non callable's are 4.7% ~ for 3 years. Why wouldn't I just do that?
Of course I may be answering my own question, but their info page does say that Vanguard doesn't make a secondary market, so even though they yield more, I'm guessing one must reconcile themselves to holding to maturity??
that said, here's what I'm trying to do:
1. set aside 100K for 2023 tax bill and solo 401K contribution. Term: 6-9 months. I've already done half in the tbill I mentioned.
2. Repeat #1 but for 2024. (will need April 2025).
3. Put rest in "ladder" possibly using TIPs out at the sweet spot 2028-2031. (real yield around 2%)
4. Then I have 144K in iBonds (I caught the wave WAY before they were cool, opening up an account for me, wife, daughter, 3 LLCs). Most are yielding 4-ish now. (I really need to update my spreadsheet ... so many dates ... I'm honestly not positive what they're yielding...might be a couple still earning 8.9%!) But I'm CONSIDERING leaving these be, but might there be an advantage to redeeming the ones that had the lower inflation kicker (.4) and reinvesting in the ones that have the .9% kicker??
Few different questions here I know, but I just sold a big apartment building and have another under contract...not used to having to deploy this much and this is the first time in most of my adult life that interest rates were actually something to think about!
Of course I may be answering my own question, but their info page does say that Vanguard doesn't make a secondary market, so even though they yield more, I'm guessing one must reconcile themselves to holding to maturity??
that said, here's what I'm trying to do:
1. set aside 100K for 2023 tax bill and solo 401K contribution. Term: 6-9 months. I've already done half in the tbill I mentioned.
2. Repeat #1 but for 2024. (will need April 2025).
3. Put rest in "ladder" possibly using TIPs out at the sweet spot 2028-2031. (real yield around 2%)
4. Then I have 144K in iBonds (I caught the wave WAY before they were cool, opening up an account for me, wife, daughter, 3 LLCs). Most are yielding 4-ish now. (I really need to update my spreadsheet ... so many dates ... I'm honestly not positive what they're yielding...might be a couple still earning 8.9%!) But I'm CONSIDERING leaving these be, but might there be an advantage to redeeming the ones that had the lower inflation kicker (.4) and reinvesting in the ones that have the .9% kicker??
Few different questions here I know, but I just sold a big apartment building and have another under contract...not used to having to deploy this much and this is the first time in most of my adult life that interest rates were actually something to think about!
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