Treasury Bills vs. Brokered CDs
As many readers know, we believe cash and short term investments play a great deal in one’s personal finance. Traditionally, many experts and investors just simply dismissed them as boring investments. But we have indicated the importance of these short term investments:
- Many people have day to day need for cash
- Many people don’t know or are afraid of investing anything else
- Some let cash sit just in a sweeping money market fund that earns low or almost none interests when an investment strategy calls for or goes into cash. See, for example, April 13, 2015: Total Return Bond Funds As Smart Cash.
- Unfortunately, they don’t actually know how to or just don’t bother to invest in cash either.
See more discussion in February 22, 2016: Be Cash Smart or October 2, 2017: The Role of Short Term Bond Funds.
In general, we recommend the following allocation based on the time you need the capital:
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